diff --git a/meta/conf/distro/include/maintainers.inc b/meta/conf/distro/include/maintainers.inc
index 40d62042bd..4773df92fd 100644
--- a/meta/conf/distro/include/maintainers.inc
+++ b/meta/conf/distro/include/maintainers.inc
@@ -387,6 +387,7 @@ RECIPE_MAINTAINER:pn-libproxy = "Unassigned <unassigned@yoctoproject.org>"
 RECIPE_MAINTAINER:pn-libpsl = "Unassigned <unassigned@yoctoproject.org>"
 RECIPE_MAINTAINER:pn-libpthread-stubs = "Unassigned <unassigned@yoctoproject.org>"
 RECIPE_MAINTAINER:pn-libptytty = "Unassigned <unassigned@yoctoproject.org>"
+RECIPE_MAINTAINER:pn-libpwquality = "Unassigned <unassigned@yoctoproject.org>"
 RECIPE_MAINTAINER:pn-librepo = "Wang Mingyu <wangmy@fujitsu.com>"
 RECIPE_MAINTAINER:pn-librsvg = "Unassigned <unassigned@yoctoproject.org>"
 RECIPE_MAINTAINER:pn-libsamplerate0 = "Unassigned <unassigned@yoctoproject.org>"
diff --git a/meta/recipes-extended/libpwquality/files/0001-Use-setuptools-instead-of-distutils.patch b/meta/recipes-extended/libpwquality/files/0001-Use-setuptools-instead-of-distutils.patch
new file mode 100644
index 0000000000..7eaca66b5c
--- /dev/null
+++ b/meta/recipes-extended/libpwquality/files/0001-Use-setuptools-instead-of-distutils.patch
@@ -0,0 +1,78 @@
+From ad95b7684365dea8335c34527d4c1463c1668af0 Mon Sep 17 00:00:00 2001
+From: =?UTF-8?q?Miro=20Hron=C4=8Dok?= <miro@hroncok.cz>
+Date: Fri, 31 Mar 2023 14:52:19 +0200
+Subject: [PATCH] Use setuptools instead of distutils
+
+distutils is removed from Python 3.12+:
+https://peps.python.org/pep-0632/
+
+Upstream-Status: Backport [https://github.com/libpwquality/libpwquality/commit/7b5e0f0097faebdcc6a8b783237bbba7a983147a]
+Signed-off-by: Alexander Kanavin <alex@linutronix.de>
+---
+ libpwquality.spec.in | 11 ++---------
+ python/Makefile.am   |  2 +-
+ python/setup.py.in   |  6 +++---
+ 3 files changed, 6 insertions(+), 13 deletions(-)
+
+diff --git a/libpwquality.spec.in b/libpwquality.spec.in
+index 70a6f53..0809126 100644
+--- a/libpwquality.spec.in
++++ b/libpwquality.spec.in
+@@ -33,9 +33,11 @@ BuildRequires: gettext
+ BuildRequires: pam-devel
+ %if %{with python2}
+ BuildRequires: python2-devel
++BuildRequires: python2-setuptools
+ %endif
+ %if %{with python3}
+ BuildRequires: python3-devel
++BuildRequires: python3-setuptools
+ %endif
+ 
+ URL: https://github.com/libpwquality/libpwquality/
+@@ -103,15 +105,6 @@ cp -a . %{py3dir}
+ pushd %{py3dir}
+ %endif
+ %if %{with python3}
+-# setuptools >= 60 changes the environment to use its bundled copy of distutils
+-# by default, not the Python-bundled one. To run the Python's standard library
+-# distutils, the environment variable must be set.
+-# Although technically setuptools is not needed for this package, if it's
+-# pulled by another package, it changes the environment and consequently,
+-# the build fails. This was reported in:
+-# https://github.com/pypa/setuptools/issues/3143
+-export SETUPTOOLS_USE_DISTUTILS=stdlib
+-
+ %configure \
+ 	--with-securedir=%{_moduledir} \
+ 	--with-pythonsitedir=%{python3_sitearch} \
+diff --git a/python/Makefile.am b/python/Makefile.am
+index 1d00c0c..6e51744 100644
+--- a/python/Makefile.am
++++ b/python/Makefile.am
+@@ -14,7 +14,7 @@ all-local:
+ 	CFLAGS="${CFLAGS} -fno-strict-aliasing" @PYTHONBINARY@ setup.py build --build-base py$(PYTHONREV)
+ 
+ install-exec-local:
+-	CFLAGS="${CFLAGS} -fno-strict-aliasing" @PYTHONBINARY@ setup.py build --build-base py$(PYTHONREV) install --prefix=${DESTDIR}${prefix}
++	CFLAGS="${CFLAGS} -fno-strict-aliasing" @PYTHONBINARY@ setup.py build --build-base py$(PYTHONREV) install --root ${DESTDIR} --prefix=${prefix}
+ 
+ clean-local:
+ 	rm -rf py$(PYTHONREV)
+diff --git a/python/setup.py.in b/python/setup.py.in
+index a741b91..f934c50 100755
+--- a/python/setup.py.in
++++ b/python/setup.py.in
+@@ -6,9 +6,9 @@
+ 
+ import os
+ 
+-from distutils.core import setup, Extension
+-from distutils.command.build_ext import build_ext as _build_ext
+-from distutils.command.sdist import sdist as _sdist
++from setuptools import setup, Extension
++from setuptools.command.build_ext import build_ext as _build_ext
++from setuptools.command.sdist import sdist as _sdist
+ 
+ def genconstants(headerfile, outputfile):
+     hf = open(headerfile, 'r')
diff --git a/meta/recipes-extended/libpwquality/files/0002-Makefile.am-respect-PYTHONSITEDIR.patch b/meta/recipes-extended/libpwquality/files/0002-Makefile.am-respect-PYTHONSITEDIR.patch
new file mode 100644
index 0000000000..cd59a6d887
--- /dev/null
+++ b/meta/recipes-extended/libpwquality/files/0002-Makefile.am-respect-PYTHONSITEDIR.patch
@@ -0,0 +1,26 @@
+From edc51ba1b446913232cdf2945f485392bca72dc7 Mon Sep 17 00:00:00 2001
+From: Hongxu Jia <hongxu.jia@windriver.com>
+Date: Mon, 3 Aug 2015 13:43:14 +0800
+Subject: [PATCH] Makefile.am: respect ${PYTHONSITEDIR}
+
+Signed-off-by: Hongxu Jia <hongxu.jia@windriver.com>
+Signed-off-by: Martin Jansa <martin.jansa@gmail.com>
+---
+Upstream-Status: Backport [https://github.com/libpwquality/libpwquality/commit/5192eab011ada47b0157f8d0524bf5b18bba3bd0]
+
+ python/Makefile.am | 2 +-
+ 1 file changed, 1 insertion(+), 1 deletion(-)
+
+diff --git a/python/Makefile.am b/python/Makefile.am
+index 6e51744..0a3bad5 100644
+--- a/python/Makefile.am
++++ b/python/Makefile.am
+@@ -14,7 +14,7 @@ all-local:
+ 	CFLAGS="${CFLAGS} -fno-strict-aliasing" @PYTHONBINARY@ setup.py build --build-base py$(PYTHONREV)
+ 
+ install-exec-local:
+-	CFLAGS="${CFLAGS} -fno-strict-aliasing" @PYTHONBINARY@ setup.py build --build-base py$(PYTHONREV) install --root ${DESTDIR} --prefix=${prefix}
++	CFLAGS="${CFLAGS} -fno-strict-aliasing" @PYTHONBINARY@ setup.py build --build-base py$(PYTHONREV) install --root ${DESTDIR} --prefix=${prefix} --install-lib=$(pythonsitedir)
+ 
+ clean-local:
+ 	rm -rf py$(PYTHONREV)
diff --git a/meta/recipes-extended/libpwquality/libpwquality_1.4.5.bb b/meta/recipes-extended/libpwquality/libpwquality_1.4.5.bb
new file mode 100644
index 0000000000..a303b9e758
--- /dev/null
+++ b/meta/recipes-extended/libpwquality/libpwquality_1.4.5.bb
@@ -0,0 +1,40 @@
+SUMMARY = "Password quality checking and random password generation library"
+DESCRIPTION = "Library for password quality checking and generating random passwords"
+HOMEPAGE = "https://github.com/libpwquality/libpwquality"
+SECTION = "devel/lib"
+
+LICENSE = "GPL-2.0-or-later"
+LIC_FILES_CHKSUM = "file://COPYING;md5=6bd2f1386df813a459a0c34fde676fc2"
+
+DEPENDS = "cracklib"
+
+SRC_URI = "git://github.com/libpwquality/libpwquality;branch=master;protocol=https \
+    file://0001-Use-setuptools-instead-of-distutils.patch \
+    file://0002-Makefile.am-respect-PYTHONSITEDIR.patch \
+"
+SRCREV = "5490e96a3dd6ed7371435ca5b3ccef98bdb48b5a"
+
+
+inherit autotools-brokensep gettext
+inherit_defer ${@bb.utils.contains('PACKAGECONFIG', 'python3', 'setuptools3-base', '', d)}
+
+do_configure:prepend() {
+    cp ${STAGING_DATADIR_NATIVE}/gettext/ABOUT-NLS ${AUTOTOOLS_AUXDIR}/
+}
+
+export PYTHON_DIR
+export BUILD_SYS
+export HOST_SYS
+
+EXTRA_OECONF += "--libdir=${libdir} \
+                 --with-securedir=${base_libdir}/security \
+"
+
+PACKAGECONFIG ??= "${@bb.utils.contains('DISTRO_FEATURES', 'pam', 'pam', '', d)} python3"
+PACKAGECONFIG[pam] = "--enable-pam,--disable-pam,libpam"
+PACKAGECONFIG[python3] = "--enable-python-bindings --with-python-rev=${PYTHON_BASEVERSION} --with-python-binary=${STAGING_BINDIR_NATIVE}/python3-native/python3 --with-pythonsitedir=${PYTHON_SITEPACKAGES_DIR},--disable-python-bindings,python3-setuptools-native"
+
+FILES:${PN} += "${base_libdir}/security/pam_pwquality.so"
+FILES:${PN}-dbg += "${base_libdir}/security/.debug"
+FILES:${PN}-staticdev += "${base_libdir}/security/pam_pwquality.a"
+FILES:${PN}-dev += "${base_libdir}/security/pam_pwquality.la"
