diff --git a/apps/client/pages/api/auth/reset-password.ts b/apps/client/pages/api/auth/reset-password.ts
index 8b1ac9bb..44255910 100644
--- a/apps/client/pages/api/auth/reset-password.ts
+++ b/apps/client/pages/api/auth/reset-password.ts
@@ -1,19 +1,49 @@
+import { PrismaClient } from '@prisma/client'
+import crypto from 'crypto'
 import type { NextApiRequest, NextApiResponse } from 'next'
 
+let prismaInstance: PrismaClient | null = null
+
+function getPrismaInstance() {
+    if (!prismaInstance) {
+        prismaInstance = new PrismaClient()
+    }
+    return prismaInstance
+}
+
+const prisma = getPrismaInstance()
+
 type ResponseData = {
     message: string
 }
 
-export default function handler(req: NextApiRequest, res: NextApiResponse<ResponseData>) {
-    // TODO: implement password reset functionality
+export default async function handler(req: NextApiRequest, res: NextApiResponse<ResponseData>) {
+    if (!req.body.email) {
+        res.status(400).json({ message: 'No email provided.' })
+        return
+    }
+
+    const user = await prisma.authUser.findUnique({
+        where: {
+            email: req.body.email,
+        },
+    })
+
+    if (!user) {
+        // No user found, we don't want to expose this information
+        return res.status(200).json({ message: 'OK' })
+    }
+
+    const token = crypto.randomBytes(32).toString('hex')
+    await prisma.authPasswordResets.create({
+        data: {
+            token,
+            email: req.body.email,
+            expires: new Date(Date.now() + 1000 * 60 * 10), // 10 minutes
+        },
+    })
 
-    // 1. Generate a password reset token
     // 2. Send a password reset email
-    // 3. Redirect to a password reset page
-    // 4. Verify the password reset token
-    // 5. Reset the password
-    // 6. Redirect to the login page
-    // 7. Login with the new password
 
     res.status(200).json({ message: 'Hello from Next.js!' })
 }
diff --git a/libs/server/features/src/auth-password-reset/auth-password-reset.service.ts b/libs/server/features/src/auth-password-reset/auth-password-reset.service.ts
new file mode 100644
index 00000000..daa04d04
--- /dev/null
+++ b/libs/server/features/src/auth-password-reset/auth-password-reset.service.ts
@@ -0,0 +1,101 @@
+import type { PrismaClient } from '@prisma/client'
+import type { Logger } from 'winston'
+import type { EmailService } from '../email'
+import bcrypt from 'bcrypt'
+
+type ResetPasswordData = {
+    newPassword: string
+    token: string
+}
+
+export interface IAuthPasswordResetService {
+    create(email: string): Promise<null>
+    resetPassword(data: ResetPasswordData): Promise<null>
+}
+
+export class AuthPasswordResetsService implements IAuthPasswordResetService {
+    constructor(
+        private readonly logger: Logger,
+        private readonly emailService: EmailService,
+        private readonly prisma: PrismaClient
+    ) {}
+
+    async create(email: string): Promise<null> {
+        const user = await this.prisma.authUser.findUnique({
+            where: {
+                email,
+            },
+        })
+
+        if (!user) {
+            this.logger.log({
+                level: 'info',
+                message: `No user found with email ${email}`,
+            })
+
+            return null
+        }
+
+        const token = crypto.randomUUID()
+
+        await this.prisma.authPasswordResets.create({
+            data: {
+                token,
+                email,
+                expires: new Date(Date.now() + 1000 * 60 * 10), // 10 minutes
+            },
+        })
+
+        await this.emailService.send({
+            subject: 'Reset your password',
+            to: email,
+            // TODO: Use a template
+            textBody: `Click here to reset your password: ${process.env.NEXTAUTH_URL}/auth/reset-password?token=${token}&email=${email}`,
+        })
+
+        return null
+    }
+
+    async resetPassword(data: {
+        newPassword: string
+        email: string
+        token: string
+    }): Promise<null> {
+        const findResult = await this.prisma.authPasswordResets.findUnique({
+            where: {
+                token: data.token,
+            },
+        })
+
+        if (!findResult) {
+            throw new Error('Invalid token')
+        }
+
+        if (findResult.expires < new Date()) {
+            throw new Error('Token expired')
+        }
+
+        const user = await this.prisma.authUser.findUnique({
+            where: {
+                email: data.email,
+            },
+        })
+
+        if (!user) {
+            throw new Error('No user found')
+        }
+
+        const hashedPassword = await bcrypt.hash(data.newPassword, 10)
+
+        await this.prisma.authUser.update({
+            where: {
+                email: data.email,
+            },
+            data: {
+                password: hashedPassword,
+            },
+        })
+
+        return null
+    }
+}
diff --git a/libs/server/features/src/auth-password-reset/index.ts b/libs/server/features/src/auth-password-reset/index.ts
new file mode 100644
index 00000000..48f44ff8
--- /dev/null
+++ b/libs/server/features/src/auth-password-reset/index.ts
@@ -0,0 +1 @@
+export * from './auth-password-reset.service'
diff --git a/libs/server/features/src/index.ts b/libs/server/features/src/index.ts
index 4fa66d75..e9f6800b 100644
--- a/libs/server/features/src/index.ts
+++ b/libs/server/features/src/index.ts
@@ -4,6 +4,7 @@ export * from './account-balance'
 export * from './email'
 export * from './institution'
 export * from './security-pricing'
+export * from './auth-password-reset'
 export * from './auth-user'
 export * from './user'
 export * from './valuation'