diff --git a/crates/pm-web/src/main.rs b/crates/pm-web/src/main.rs
index 7377bcd..97213ab 100644
--- a/crates/pm-web/src/main.rs
+++ b/crates/pm-web/src/main.rs
@@ -1,19 +1,21 @@
 //! pm-web — Linux Patch Manager web server.
 
-mod secret_key;
-
 mod routes;
 
+mod secret_key;
+
 use axum::{extract::State, http::StatusCode, middleware, response::Json, routing::get, Router};
 use axum_server::tls_rustls::RustlsConfig;
 use dashmap::DashMap;
 use pm_auth::{
     jwt,
+    password::hash_password,
     rbac::{require_auth, AuthConfig},
 };
 use pm_core::{
     config::AppConfig, db, logging, models::ApprovedEntry, request_id::request_id_middleware,
 };
+use rand::Rng;
 use routes::sso::{OidcCache, SsoHandoff, SsoSession};
 use routes::ws::WsTicket;
 use serde_json::{json, Value};
@@ -27,6 +29,93 @@ use tower_http::{
     trace::TraceLayer,
 };
 
+/// Placeholder Argon2id hash prefix used in the seed admin migration (issue #8).
+/// Detecting this prefix means the admin password has not been bootstrapped yet.
+const ADMIN_PLACEHOLDER_HASH_PREFIX: &str = "$argon2id$v=19$m=65536,t=3,p=1$AAAAAAAAAAAAAAAA";
+
+/// Bootstrap the default admin account with a random password.
+///
+/// On first startup after a fresh install, the `users` table contains the seed
+/// admin row with a clearly-invalid placeholder hash (cannot validate any password).
+/// This function detects that placeholder, generates a cryptographically random
+/// 24-character password, hashes it with Argon2id, and UPDATEs the admin row.
+///
+/// The plaintext password is printed **once** to stderr (visible in `systemctl status`
+/// or `journalctl`) and is never stored on disk.
+///
+/// If the admin row already has a real hash, this function is a no-op.
+async fn bootstrap_admin_password(pool: &sqlx::PgPool) {
+    // Check if the admin account still has the placeholder hash.
+    let result: Option<String> = sqlx::query_scalar(
+        "SELECT password_hash FROM users WHERE username = 'admin' AND auth_provider = 'local'",
+    )
+    .fetch_optional(pool)
+    .await
+    .unwrap_or(None);
+
+    let current_hash = match result {
+        Some(h) => h,
+        None => return, // No admin row — nothing to bootstrap.
+    };
+
+    if !current_hash.starts_with(ADMIN_PLACEHOLDER_HASH_PREFIX) {
+        // Admin already has a real password — nothing to do.
+        return;
+    }
+
+    // Generate a 24-character random alphanumeric password.
+    let password: String = rand::thread_rng()
+        .sample_iter(&rand::distributions::Alphanumeric)
+        .take(24)
+        .map(char::from)
+        .collect();
+
+    // Hash it with the application's Argon2id parameters.
+    let new_hash = match hash_password(&password) {
+        Ok(h) => h,
+        Err(e) => {
+            tracing::error!(error = %e, "Failed to hash bootstrap admin password");
+            return;
+        },
+    };
+
+    // Replace the placeholder hash with the real one.
+    // The WHERE clause matches the placeholder prefix to ensure idempotency.
+    let rows = sqlx::query(
+        r#"UPDATE users
+            SET password_hash = $1
+            WHERE username = 'admin'
+              AND auth_provider = 'local'
+              AND password_hash LIKE '$argon2id$v=19$m=65536,t=3,p=1$AAAAAAAAAAAAAAAA%'"#,
+    )
+    .bind(&new_hash)
+    .execute(pool)
+    .await;
+
+    match rows {
+        Ok(result) if result.rows_affected() == 1 => {
+            eprintln!();
+            eprintln!("========================================");
+            eprintln!("  INITIAL ADMIN PASSWORD (shown once)");
+            eprintln!("  Username: admin");
+            eprintln!("  Password: {}", password);
+            eprintln!();
+            eprintln!("  You will be forced to change this on first login.");
+            eprintln!("  If lost, restart the service to generate a new one.");
+            eprintln!("========================================");
+            eprintln!();
+            tracing::info!("Bootstrap admin password generated and set");
+        },
+        Ok(_) => {
+            // Rows affected != 1 — concurrent bootstrap or already replaced.
+            tracing::info!("Admin password already bootstrapped (concurrent or prior)");
+        },
+        Err(e) => {
+            tracing::error!(error = %e, "Failed to update admin password hash");
+        },
+    }
+}
+
 /// Shared application state threaded through Axum.
 #[derive(Clone)]
 pub struct AppState {
@@ -94,6 +183,9 @@ async fn main() -> anyhow::Result<()> {
     let pool = db::init_pool(&config.database).await?;
     db::run_migrations(&pool).await?;
 
+    // Bootstrap admin password if the seed admin still has the placeholder hash (issue #8).
+    bootstrap_admin_password(&pool).await;
+
     // Initialise the internal CA using the configured certificate paths.
     // The CA certificate and key must exist at the configured locations and be
     // unencrypted PEM. If absent, a new CA is generated in that directory.
diff --git a/migrations/002_seed_admin.sql b/migrations/002_seed_admin.sql
index 7799477..8c3e7af 100644
--- a/migrations/002_seed_admin.sql
+++ b/migrations/002_seed_admin.sql
@@ -1,12 +1,17 @@
 -- Migration: 002_seed_admin
 -- Description: Seed the default admin account.
 --
--- Default credentials (CHANGE BEFORE PRODUCTION USE):
---   Username: admin
---   Password: ChangeMe123!
+-- IMPORTANT (issue #8): The password_hash below is a PLACEHOLDER
+-- that cannot validate any password. On first startup, pm-web detects
+-- this placeholder and generates a random admin password, replacing
+-- the hash in the database. The generated password is printed once
+-- to stderr (visible in systemd journal).
 --
--- The password hash below is Argon2id of "ChangeMe123!" with
--- m=65536, t=3, p=1. Replace after first login.
+-- If the application never starts (e.g., manual migration only),
+-- the admin account is inaccessible — this is fail-closed.
+--
+-- On first successful login with a real password, the admin is forced to
+-- set a new password (force_password_reset = TRUE).
 
 INSERT INTO users (
     id,
@@ -27,10 +32,11 @@ VALUES (
     'admin@localhost',
     'admin',
     'local',
-    -- Argon2id hash of "ChangeMe123!" — REPLACE IN PRODUCTION
-    '$argon2id$v=19$m=65536,t=3,p=1$Kv8bkGiE81yIuXARq9fwsw$NrBRFvgL1dVsW7bEK6NxEOzIX2q1p4B0K422idAVIDQ',
-    FALSE,  -- MFA disabled by default; admin must set up on first login
+    -- PLACEHOLDER Argon2id hash (issue #8). Cannot validate any password.
+    -- pm-web replaces this with a real hash on first startup.
+    '$argon2id$v=19$m=65536,t=3,p=1$AAAAAAAAAAAAAAAA$AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA',
+    FALSE,
     TRUE,
-    TRUE    -- Force password reset on first login
+    TRUE
 )
 ON CONFLICT (username) DO NOTHING;