diff --git a/ironic_python_agent/extensions/rescue.py b/ironic_python_agent/extensions/rescue.py
index 0769bd8fd..6ec8a2f99 100644
--- a/ironic_python_agent/extensions/rescue.py
+++ b/ironic_python_agent/extensions/rescue.py
@@ -35,14 +35,28 @@ class RescueExtension(base.BaseAgentExtension):
         allowed_chars = string.ascii_letters + string.digits
         return random.choice(allowed_chars) + random.choice(allowed_chars)
 
-    def write_rescue_password(self, rescue_password=""):
+    def write_rescue_password(self, rescue_password="", hashed=False):
         """Write rescue password to a file for use after IPA exits.
 
         :param rescue_password: Rescue password.
+        :param hashed: Boolean default False indicating if the password
+                       being provided is hashed or not. This will be changed
+                       in a future version of ironic.
         """
+        # DEPRECATED(TheJulia): In a future version of the ramdisk, we need
+        # change the default such that a password is the default and that
+        # if it is not, then the operation fails. Providing a default and
+        # an override now that matches the present state allows us to
+        # maintain our n-1, n, and n+1 theoretical support. Change
+        # in the V or W cycles.
         LOG.debug('Writing hashed rescue password to %s', PASSWORD_FILE)
-        salt = self.make_salt()
-        hashed_password = crypt.crypt(rescue_password, salt)
+        password = str(rescue_password)
+        hashed_password = None
+        if hashed:
+            hashed_password = password
+        else:
+            salt = self.make_salt()
+            hashed_password = crypt.crypt(rescue_password, salt)
         try:
             with open(PASSWORD_FILE, 'w') as f:
                 f.write(hashed_password)
@@ -53,9 +67,9 @@ class RescueExtension(base.BaseAgentExtension):
             raise IOError(msg)
 
     @base.sync_command('finalize_rescue')
-    def finalize_rescue(self, rescue_password=""):
+    def finalize_rescue(self, rescue_password="", hashed=False):
         """Sets the rescue password for the rescue user."""
-        self.write_rescue_password(rescue_password)
+        self.write_rescue_password(rescue_password, hashed)
         # IPA will terminate after the result of finalize_rescue is returned to
         # ironic to avoid exposing the IPA API to a tenant or public network
         self.agent.serve_api = False
diff --git a/ironic_python_agent/tests/unit/extensions/test_rescue.py b/ironic_python_agent/tests/unit/extensions/test_rescue.py
index a416f2272..c7b4148b4 100644
--- a/ironic_python_agent/tests/unit/extensions/test_rescue.py
+++ b/ironic_python_agent/tests/unit/extensions/test_rescue.py
@@ -66,6 +66,38 @@ class TestRescueExtension(test_base.BaseTestCase):
                 IOError, self.agent_extension.write_rescue_password,
                 'password')
 
+    @mock.patch('ironic_python_agent.extensions.rescue.crypt.crypt',
+                autospec=True)
+    @mock.patch('ironic_python_agent.extensions.rescue.RescueExtension.'
+                'make_salt', autospec=True)
+    def _write_password_hashed_test(self, password, mock_salt,
+                                    mock_crypt):
+        mock_open = mock.mock_open()
+        with mock.patch('ironic_python_agent.extensions.rescue.open',
+                        mock_open):
+            self.agent_extension.write_rescue_password(password,
+                                                       hashed=True)
+            self.assertFalse(mock_salt.called)
+            self.assertFalse(mock_crypt.called)
+            mock_open.assert_called_once_with(
+                '/etc/ipa-rescue-config/ipa-rescue-password', 'w')
+            file_handle = mock_open()
+            file_handle.write.assert_called_once_with(password)
+
+    def test_hashed_passwords(self):
+        # NOTE(TheJulia): Sort of redundant in that we're not actually
+        # verifying content here, but these are semi-realistic values
+        # that may be passed in, so best to just keep it regardless.
+        passwds = ['$1$1234567890234567890123456789001',
+                   '$2a$012345678901234566789012345678901234567890123'
+                   '45678901234',
+                   '$5$1234567890123456789012345678901234567890123456'
+                   '789012',
+                   '$6$1234567890123456789012345678901234567890123456'
+                   '7890123456789012345678901234567890123456789012345']
+        for passwd in passwds:
+            self._write_password_hashed_test(passwd)
+
     @mock.patch('ironic_python_agent.extensions.rescue.RescueExtension.'
                 'write_rescue_password', autospec=True)
     def test_finalize_rescue(self, mock_write_rescue_password):
@@ -73,5 +105,5 @@ class TestRescueExtension(test_base.BaseTestCase):
         self.agent_extension.finalize_rescue(rescue_password='password')
         mock_write_rescue_password.assert_called_once_with(
             mock.ANY,
-            rescue_password='password')
+            rescue_password='password', hashed=False)
         self.assertFalse(self.agent_extension.agent.serve_api)
diff --git a/releasenotes/notes/permit-pre-hashed-rescue-passwords-4275f6e697533cec.yaml b/releasenotes/notes/permit-pre-hashed-rescue-passwords-4275f6e697533cec.yaml
new file mode 100644
index 000000000..d4155c33a
--- /dev/null
+++ b/releasenotes/notes/permit-pre-hashed-rescue-passwords-4275f6e697533cec.yaml
@@ -0,0 +1,6 @@
+---
+security:
+  - |
+    Enables pre-hashed passwords to be supplied to the ``rescue`` extension.
+    See `story 2006777 <https://storyboard.openstack.org/#!/story/2006777>`_
+    for more information.