--- a/perl/lib/Wallet/Config.pm
+++ b/perl/lib/Wallet/Config.pm
@@ -266,6 +266,27 @@ that is inherited.
 
 =over 4
 
+=item PWD_TYPE
+
+Specifies the algorithm to use when generating a password.  The
+default is RANDOM which specified that random set of printable ASCII
+characters will be used to create a password.  The pool of characters
+can be restricted by specifying PWD_CHARACTERS.
+
+The PWD_TYPE can be used to specify the generation of passwords using
+the XKCD inspired perl module Crypt::HSXKPasswd. Three values are
+supported that use preset configuration values: XKCD-DEFAULT,
+XKCD-APPLIED, and XKCD.  See the module documentation for the details
+of these presents.
+
+A PWD_TYPE of CUSTOM is supported.  If defined then the configuration
+file must contain a Perl function generate_password that returns a
+generated password.
+
+=cut
+
+our $PWD_TYPE = 'RANDOM';
+
 =item PWD_FILE_BUCKET
 
 The directory into which to store password objects.  Password objects will
@@ -274,7 +295,7 @@ L<Wallet::Object::Password> for the full
 directory must be writable by the wallet server and the wallet server must
 be able to create subdirectories of it.
 
-PWD_FILE_BUCKET must be set to use file objects.
+PWD_FILE_BUCKET must be set to use password objects.
 
 =cut
 
--- a/perl/lib/Wallet/Object/Password.pm
+++ b/perl/lib/Wallet/Object/Password.pm
@@ -52,6 +52,38 @@ sub file_path {
     return "$Wallet::Config::PWD_FILE_BUCKET/$hash/$name";
 }
 
+# Returns a password of random characters.
+sub _pwd_random {
+    my ($self) = @_;
+    my $pass = chars ($Wallet::Config::PWD_LENGTH_MIN,
+                      $Wallet::Config::PWD_LENGTH_MAX);
+    if ($Wallet::Config::PWD_CHARACTERS) {
+        my @pw_chars = ();
+        for (my $i=0; $i<length($Wallet::Config::PWD_CHARACTERS); $i++) {
+            push @pw_chars, substr($Wallet::Config::PWD_CHARACTERS, $i, 1);
+        }
+        $pass = chars ($Wallet::Config::PWD_LENGTH_MIN,
+                       $Wallet::Config::PWD_LENGTH_MAX,
+                       \@pw_chars);
+    }
+    return $pass;
+}
+
+# Returns a password using Crypt::HSXKPasswd
+sub _pwd_xkcd {
+    my ($self, $preset) = @_;
+
+    if (! $preset) {
+        $preset = 'XKCD';
+    } else {
+        $preset =~ s/^\-//xms;
+    }
+    require Crypt::HSXKPasswd;
+    my $hsxkpasswd_instance = Crypt::HSXKPasswd->new(preset => $preset);
+    my $pass = $hsxkpasswd_instance->password();
+    return $pass;
+}
+
 ##############################################################################
 # Shared methods
 ##############################################################################
@@ -75,20 +107,37 @@ sub retrieve {
                   ob_name => $self->{name});
     my $object = $schema->resultset('Object')->find (\%search);
     if (!$object->ob_stored_on || $operation eq 'update') {
-        unless (open (FILE, '>', $path)) {
-            $self->error ("cannot store initial settings for $id: $!\n");
-            return;
+        my $pass;
+        if ($Wallet::Config::PWD_TYPE eq 'RANDOM')
+        {
+            $pass = $self->_pwd_random();
+        }
+        elsif ($Wallet::Config::PWD_TYPE
+               =~ /^XKCD(\-APPLIED|\-DEFAULT){0,1}/xms)
+        {
+            $pass = $self->_pwd_xkcd($1);
+        }
+        elsif ($Wallet::Config::PWD_TYPE eq 'CUSTOM')
+        {
+            if (defined(&Wallet::Config::generate_password)) {
+                $pass = Wallet::Config::generate_password();
+            } else {
+                $self->error ("function generate_password() not found\n");
+                return;
+            }
         }
-        my $pass = chars ($Wallet::Config::PWD_LENGTH_MIN,
-                          $Wallet::Config::PWD_LENGTH_MAX);
-        if ($Wallet::Config::PWD_CHARACTERS) {
-            my @pw_chars = ();
-            for (my $i=0; $i<length($Wallet::Config::PWD_CHARACTERS); $i++) {
-                push @pw_chars, substr($Wallet::Config::PWD_CHARACTERS, $i, 1);
+        else
+        {
+            if (defined($Wallet::Config::PWD_TYPE)) {
+                $self->error ("Unknown PWD_TYPE ($Wallet::Config::PWD_TYPE)\n");
+            } else {
+                $self->error ("PWD_TYPE not set\n");
             }
-            $pass = chars ($Wallet::Config::PWD_LENGTH_MIN,
-                           $Wallet::Config::PWD_LENGTH_MAX,
-                           \@pw_chars);
+            return;
+        }
+        unless (open (FILE, '>', $path)) {
+            $self->error ("cannot open $path $!\n");
+            return;
         }
         print FILE $pass;
         $self->log_action ('store', $user, $host, $time);