diff --git a/src/components/auth/PasswordVerificationDialog.tsx b/src/components/auth/PasswordVerificationDialog.tsx
index 0ef10437..d59fe4c0 100644
--- a/src/components/auth/PasswordVerificationDialog.tsx
+++ b/src/components/auth/PasswordVerificationDialog.tsx
@@ -48,9 +48,16 @@ export function PasswordVerificationDialog({
       const result = await reverifyPasswordAuth(email, password);
 
       if (result.success) {
-        toast.success("Password Verified!", {
-          description: "Your password authentication has been activated.",
-        });
+        if (result.needsEmailConfirmation) {
+          toast.success("Password Verified!", {
+            description: "Check your email for a confirmation link to complete activation.",
+            duration: 8000,
+          });
+        } else {
+          toast.success("Password Verified!", {
+            description: "Your password authentication has been activated.",
+          });
+        }
         onOpenChange(false);
         onSuccess();
       } else {
diff --git a/src/components/settings/SecurityTab.tsx b/src/components/settings/SecurityTab.tsx
index 9d95784d..58d39899 100644
--- a/src/components/settings/SecurityTab.tsx
+++ b/src/components/settings/SecurityTab.tsx
@@ -192,8 +192,12 @@ export function SecurityTab() {
   };
 
   const handleVerificationSuccess = async () => {
-    await loadIdentities();
-    sonnerToast.success("Password authentication activated successfully!");
+    // Don't reload identities immediately - user needs to confirm email first
+    toast({
+      title: "Email Confirmation Required",
+      description: "Check your email and click the confirmation link to activate password authentication.",
+      duration: 0, // Persistent
+    });
   };
 
   // Get connected accounts with identity data
diff --git a/src/lib/identityService.ts b/src/lib/identityService.ts
index 957bcb13..72349c3f 100644
--- a/src/lib/identityService.ts
+++ b/src/lib/identityService.ts
@@ -290,33 +290,54 @@ export async function hasOrphanedPassword(): Promise<boolean> {
 }
 
 /**
- * Re-verify password authentication by attempting sign-in
- * This forces Supabase to create the email identity if it's missing
+ * Re-verify password authentication by signing in and triggering email confirmation
+ * This creates the missing email identity through Supabase's confirmation flow
  */
 export async function reverifyPasswordAuth(
   email: string,
   password: string
 ): Promise<IdentityOperationResult> {
   try {
-    const { error } = await supabase.auth.signInWithPassword({
+    // Step 1: Verify credentials by signing in
+    console.log('[IdentityService] Verifying password credentials');
+    const { data: authData, error: signInError } = await supabase.auth.signInWithPassword({
       email,
       password
     });
     
-    if (error) throw error;
-    
-    // Check if email identity was created
-    const emailCreated = await waitForEmailProvider(3);
-    
-    if (!emailCreated) {
+    if (signInError) {
       return {
         success: false,
-        error: 'Sign-in successful but identity verification failed. Please contact support.'
+        error: 'Invalid email or password'
       };
     }
     
-    return { success: true };
+    // Step 2: Trigger email confirmation to create identity
+    console.log('[IdentityService] Credentials verified, triggering email confirmation');
+    const { error: updateError } = await supabase.auth.updateUser({
+      email: email // Re-confirming email triggers identity creation
+    });
+    
+    if (updateError) throw updateError;
+    
+    // Step 3: Sign out so user can confirm email
+    console.log('[IdentityService] Signing out to complete email confirmation');
+    await supabase.auth.signOut();
+    
+    // Step 4: Log the verification
+    if (authData.user) {
+      await logIdentityChange(authData.user.id, 'password_verified', {
+        method: 'orphaned_password_recovery'
+      });
+    }
+    
+    return { 
+      success: true,
+      needsEmailConfirmation: true,
+      email
+    };
   } catch (error: any) {
+    console.error('[IdentityService] Failed to verify password:', error);
     return {
       success: false,
       error: error.message || 'Failed to verify password authentication'