diff --git a/fe/fe-core/src/main/antlr4/org/apache/doris/nereids/DorisParser.g4 b/fe/fe-core/src/main/antlr4/org/apache/doris/nereids/DorisParser.g4
index 359be7ed0f1dd7..d41da2cc76f517 100644
--- a/fe/fe-core/src/main/antlr4/org/apache/doris/nereids/DorisParser.g4
+++ b/fe/fe-core/src/main/antlr4/org/apache/doris/nereids/DorisParser.g4
@@ -1148,7 +1148,7 @@ userIdentify
     ;
 
 grantUserIdentify
-    : userIdentify (IDENTIFIED BY PASSWORD? STRING_LITERAL)?
+    : userIdentify (IDENTIFIED BY PASSWORD? pwd=STRING_LITERAL)?
     ;
 
 explain
diff --git a/fe/fe-core/src/main/java/org/apache/doris/nereids/parser/LogicalPlanBuilderForEncryption.java b/fe/fe-core/src/main/java/org/apache/doris/nereids/parser/LogicalPlanBuilderForEncryption.java
index 466939214df4bd..1356124590396a 100644
--- a/fe/fe-core/src/main/java/org/apache/doris/nereids/parser/LogicalPlanBuilderForEncryption.java
+++ b/fe/fe-core/src/main/java/org/apache/doris/nereids/parser/LogicalPlanBuilderForEncryption.java
@@ -18,6 +18,7 @@
 package org.apache.doris.nereids.parser;
 
 import org.apache.doris.analysis.BrokerDesc;
+import org.apache.doris.analysis.UserDesc;
 import org.apache.doris.common.Pair;
 import org.apache.doris.common.util.DatasourcePrintableMap;
 import org.apache.doris.nereids.DorisParser;
@@ -85,6 +86,15 @@ public SetVarOp visitSetPassword(DorisParser.SetPasswordContext ctx) {
         return super.visitSetPassword(ctx);
     }
 
+    // grant user identity clause
+    @Override
+    public UserDesc visitGrantUserIdentify(DorisParser.GrantUserIdentifyContext ctx) {
+        if (ctx.pwd != null) {
+            encryptPassword(ctx.pwd.getStartIndex(), ctx.pwd.getStopIndex());
+        }
+        return super.visitGrantUserIdentify(ctx);
+    }
+
     // set ldap password clause
     @Override
     public SetVarOp visitSetLdapAdminPassword(DorisParser.SetLdapAdminPasswordContext ctx) {
diff --git a/fe/fe-core/src/main/java/org/apache/doris/nereids/trees/plans/commands/AlterUserCommand.java b/fe/fe-core/src/main/java/org/apache/doris/nereids/trees/plans/commands/AlterUserCommand.java
index e1bde5ac549f70..39765e7cc63e19 100644
--- a/fe/fe-core/src/main/java/org/apache/doris/nereids/trees/plans/commands/AlterUserCommand.java
+++ b/fe/fe-core/src/main/java/org/apache/doris/nereids/trees/plans/commands/AlterUserCommand.java
@@ -29,7 +29,7 @@
 /**
  * AlterUserCommand
  */
-public class AlterUserCommand extends AlterCommand {
+public class AlterUserCommand extends AlterCommand implements NeedAuditEncryption {
 
     private final AlterUserInfo alterUserInfo;
 
@@ -57,4 +57,9 @@ public void validate() throws UserException {
     public StmtType stmtType() {
         return StmtType.ALTER;
     }
+
+    @Override
+    public boolean needAuditEncryption() {
+        return true;
+    }
 }
diff --git a/fe/fe-core/src/test/java/org/apache/doris/nereids/parser/EncryptSQLTest.java b/fe/fe-core/src/test/java/org/apache/doris/nereids/parser/EncryptSQLTest.java
index b766b1a6e809c3..5ccb3ca9400524 100644
--- a/fe/fe-core/src/test/java/org/apache/doris/nereids/parser/EncryptSQLTest.java
+++ b/fe/fe-core/src/test/java/org/apache/doris/nereids/parser/EncryptSQLTest.java
@@ -443,6 +443,68 @@ public void testEncryption() throws Exception {
         }
     }
 
+    @Test
+    public void testCreateUserPasswordMasking() throws Exception {
+        ctx.setDatabase("test");
+        try (MockedConstruction<StmtExecutor> ignored = Mockito.mockConstruction(StmtExecutor.class,
+                Mockito.withSettings().defaultAnswer(Mockito.CALLS_REAL_METHODS),
+                (mock, context) -> {
+                    Mockito.doReturn(false).when(mock).isForwardToMaster();
+                    Profile profile = new Profile(false, 0, 0);
+                    Deencapsulation.setField(mock, "profile", profile);
+                    Mockito.doReturn(profile).when(mock).getProfile();
+                    Mockito.doReturn(ctx).when(mock).getContext();
+                    Mockito.doNothing().when(mock).execute();
+                    Deencapsulation.setField(mock, "context", ctx);
+                    if (context.arguments().size() >= 2
+                            && context.arguments().get(1) instanceof StatementBase) {
+                        Deencapsulation.setField(mock, "parsedStmt",
+                                context.arguments().get(1));
+                    }
+                    if (ctx.getStatementContext() == null) {
+                        ctx.setStatementContext(new StatementContext());
+                    }
+                })) {
+            ctx.setEnv(env);
+            ctx.setCurrentUserIdentity(UserIdentity.ROOT);
+            // testing for https://github.com/apache/doris/issues/62140
+            String sql = "CREATE USER 'test_user62140'@'%' IDENTIFIED BY '123456'";
+            String res = "CREATE USER 'test_user62140'@'%' IDENTIFIED BY '*XXX'";
+            parseAndCheck(sql, res);
+        }
+    }
+
+    @Test
+    public void testAlterUserPasswordMasking() throws Exception {
+        ctx.setDatabase("test");
+        try (MockedConstruction<StmtExecutor> ignored = Mockito.mockConstruction(StmtExecutor.class,
+                Mockito.withSettings().defaultAnswer(Mockito.CALLS_REAL_METHODS),
+                (mock, context) -> {
+                    Mockito.doReturn(false).when(mock).isForwardToMaster();
+                    Profile profile = new Profile(false, 0, 0);
+                    Deencapsulation.setField(mock, "profile", profile);
+                    Mockito.doReturn(profile).when(mock).getProfile();
+                    Mockito.doReturn(ctx).when(mock).getContext();
+                    Mockito.doNothing().when(mock).execute();
+                    Deencapsulation.setField(mock, "context", ctx);
+                    if (context.arguments().size() >= 2
+                            && context.arguments().get(1) instanceof StatementBase) {
+                        Deencapsulation.setField(mock, "parsedStmt",
+                                context.arguments().get(1));
+                    }
+                    if (ctx.getStatementContext() == null) {
+                        ctx.setStatementContext(new StatementContext());
+                    }
+                })) {
+            ctx.setEnv(env);
+            ctx.setCurrentUserIdentity(UserIdentity.ROOT);
+            // testing for https://github.com/apache/doris/issues/62140
+            String sql = "ALTER USER 'test_user62140'@'%' IDENTIFIED BY '123456'";
+            String res = "ALTER USER 'test_user62140'@'%' IDENTIFIED BY '*XXX'";
+            parseAndCheck(sql, res);
+        }
+    }
+
     private void parseAndCheck(String sql, String expected) throws Exception {
         processor.executeQuery(sql);
         AuditEvent event = auditEvents.get(auditEvents.size() - 1);