diff --git a/app/account/login/login.controller.js b/app/account/login/login.controller.js
index ae56fed41..e88aa49f2 100644
--- a/app/account/login/login.controller.js
+++ b/app/account/login/login.controller.js
@@ -10,7 +10,6 @@
     $log = $log.getInstance("LoginController");
     vm.$stateParams = $stateParams;
     vm.passwordReset = false;
-    vm.currentPasswordDefaultPlaceholder = "Password";
     vm.loginErrors = {
       USERNAME_NONEXISTANT: false,
       WRONG_PASSWORD: false,
diff --git a/app/directives/account/toggle-password/toggle-password.directive.js b/app/directives/account/toggle-password/toggle-password.directive.js
index 56d122252..65c774ace 100644
--- a/app/directives/account/toggle-password/toggle-password.directive.js
+++ b/app/directives/account/toggle-password/toggle-password.directive.js
@@ -10,8 +10,8 @@
       templateUrl: 'directives/account/toggle-password/toggle-password.html',
       link: function(scope, element, attrs, formController) {
         var vm = scope.vm;
-        vm.currentPasswordField = formController.currentPassword;
-        vm.currentPasswordPlaceholder = vm.currentPasswordDefaultPlaceholder;
+        scope.currentPasswordDefaultPlaceholder = attrs.placeholder || 'Password';
+        scope.currentPasswordPlaceholder = scope.currentPasswordDefaultPlaceholder;
         vm.currentPassword = '';
 
         var currentPasswordInput = element.children()[0];
@@ -27,8 +27,7 @@
         });
 
         vm.onCPFocus = function(event) {
-          vm.currentPasswordFocus = true;
-          vm.currentPasswordPlaceholder = '';
+          scope.currentPasswordPlaceholder = '';
           element.addClass('focus');
         }
 
@@ -38,15 +37,11 @@
 
           // If you are blurring from the password input and clicking the checkbox
           if (relatedTarget.attr('type') === 'checkbox' && relatedTarget.attr('id') === 'currentPasswordCheckbox') {
-            vm.currentPasswordFocus = true;
-            vm.currentPasswordPlaceholder = '';
+            scope.currentPasswordPlaceholder = '';
             currentPasswordInput.focus();
           } else {
-            // If you are blurring from the password input and clicking anywhere but the checkbox
-            vm.currentPasswordFocus = false;
-
             if (vm.currentPassword === '' || vm.currentPassword === undefined) {
-              vm.currentPasswordPlaceholder = vm.currentPasswordDefaultPlaceholder;
+              scope.currentPasswordPlaceholder = scope.currentPasswordDefaultPlaceholder;
               formController.currentPassword.$setPristine();
             }
           }
diff --git a/app/directives/account/toggle-password/toggle-password.jade b/app/directives/account/toggle-password/toggle-password.jade
index 5d38f3997..044f4db03 100644
--- a/app/directives/account/toggle-password/toggle-password.jade
+++ b/app/directives/account/toggle-password/toggle-password.jade
@@ -7,8 +7,8 @@ input#current-password-input(
 
   name="currentPassword",
   type="password",
-  placeholder="{{vm.currentPasswordPlaceholder}}",
+  placeholder="{{currentPasswordPlaceholder}}",
 
   required)
 
-label(ng-show="vm.currentPasswordFocus || vm.currentPasswordField.$dirty") #[input(type="checkbox", id="currentPasswordCheckbox", ng-model="focusOnCurrentPasswordInput", ng-change="vm.toggleTypeAttribute()")] Show
+label #[input(type="checkbox", id="currentPasswordCheckbox", ng-model="focusOnCurrentPasswordInput", ng-change="vm.toggleTypeAttribute()")] Show
diff --git a/app/directives/account/toggle-password/toggle-password.spec.js b/app/directives/account/toggle-password/toggle-password.spec.js
index dc5dbbf71..ed19113a4 100644
--- a/app/directives/account/toggle-password/toggle-password.spec.js
+++ b/app/directives/account/toggle-password/toggle-password.spec.js
@@ -2,14 +2,150 @@
 describe('Toggle Password Directive', function() {
   var scope;
   var element;
-  // var challenge = mockData.getMockChallengeWithUserDetails();
-  // var spotlightChallenge = mockData.getMockSpotlightChallenges()[0];
 
   beforeEach(function() {
     bard.appModule('topcoder');
     bard.inject(this, '$compile', '$rootScope');
     scope = $rootScope.$new();
+    scope.vm = {};
   });
 
   bard.verifyNoOutstandingHttpRequests();
+
+  describe('Toggle Password Directive', function() {
+    var togglePassword, controller, formController, passwordFormFieldSpy;
+
+    beforeEach(function() {
+      var form = angular.element('<form><toggle-password /></form>)');
+      element = form.find('toggle-password');
+      var formElement = $compile(form)(scope);
+      scope.$digest();
+
+      // controller = element.controller('togglePassword');
+      formController = form.controller('form');
+      passwordFormFieldSpy = sinon.spy(formController.currentPassword, '$setPristine');
+    });
+
+    afterEach(function() {
+      // do nohting
+    });
+
+    it('should have password default placeholder', function() {
+      expect(scope.currentPasswordDefaultPlaceholder).to.exist.to.equal('Password');
+      expect(scope.currentPasswordPlaceholder).to.exist.to.equal('Password');
+    });
+
+    it('should not have focus class', function() {
+      expect(element.hasClass('focus')).to.be.false;
+    });
+
+    it('should trigger click handler ', function() {
+      var mockFocus = sinon.spy(element.find('input')[0], 'focus');
+      element.trigger('click');
+      expect(mockFocus).to.be.calledOnce;
+    });
+
+    it('should trigger focus handler ', function() {
+      var pwsIntputElement = angular.element(element.find('input')[0]);
+      pwsIntputElement.triggerHandler('focus');
+      expect(element.hasClass('focus')).to.be.true;
+    });
+
+    it('should trigger blur handler with form field pristine ', function() {
+      var pwsIntputElement = angular.element(element.find('input')[0]);
+      // focus it first
+      pwsIntputElement.triggerHandler('focus');
+      // verifies if focus class is added
+      expect(element.hasClass('focus')).to.be.true;
+      // now blurs from it
+      pwsIntputElement.triggerHandler('blur');
+      // focus class should not be there
+      expect(element.hasClass('focus')).to.be.false;
+      // password field's setPristine method should be called once because currentPassword is empty
+      expect(passwordFormFieldSpy).to.be.calledOnce;
+    });
+
+    it('should trigger blur handler without form field pristine ', function() {
+      scope.vm.currentPassword = 'some-password';
+      scope.$digest();
+      var pwsIntputElement = angular.element(element.find('input')[0]);
+      // focus it first
+      pwsIntputElement.triggerHandler('focus');
+      // verifies if focus class is added
+      expect(element.hasClass('focus')).to.be.true;
+      // now blurs from it
+      pwsIntputElement.triggerHandler('blur');
+      // focus class should not be there
+      expect(element.hasClass('focus')).to.be.false;
+      // password field's setPristine method should not be called because currentPassword is non-empty
+      expect(passwordFormFieldSpy).not.to.be.called;
+    });
+
+    it('should keep focus on password field on blurring to checkbox ', function() {
+
+      var pwsIntputElement = angular.element(element.find('input')[0]);
+      // focus it first
+      pwsIntputElement.triggerHandler('focus');
+      // verifies if focus class is added
+      expect(element.hasClass('focus')).to.be.true;
+      // now blurs from it
+
+      var e = jQuery.Event("blur");
+      e.relatedTarget = {
+        getAttribute: function(name) {
+          if (name === 'type') return 'checkbox';
+          if (name === 'id') return 'currentPasswordCheckbox';
+        }
+      };
+      //mock focus event
+      var mockFocus = sinon.spy(element.find('input')[0], 'focus');
+      // trigger event
+      pwsIntputElement.trigger(e);
+
+      // focus should be called once
+      expect(mockFocus).to.be.calledOnce;
+      // password field placeholde should be empty
+      expect(scope.currentPasswordPlaceholder).to.exist.to.equal('');
+    });
+
+    it('should change type of input field to be text ', function() {
+      var pwsIntputElement = angular.element(element.find('input')[0]);
+      var checkbox = angular.element(element.find('input')[1]);
+      // before clicking on checkbox, it should have password type
+      expect(pwsIntputElement.attr('type')).to.equal('password');
+      checkbox.trigger('click');
+      // after clicking on checkbox, it should have text type
+      expect(pwsIntputElement.attr('type')).to.equal('text');
+    });
+
+    it('should change type of input field to be password ', function() {
+      var pwsIntputElement = angular.element(element.find('input')[0]);
+      var checkbox = angular.element(element.find('input')[1]);
+      // before clicking on checkbox, it should have password type
+      expect(pwsIntputElement.attr('type')).to.equal('password');
+      checkbox.trigger('click');
+      // after clicking on checkbox, it should have text type
+      expect(pwsIntputElement.attr('type')).to.equal('text');
+      // click again to uncheck the checkbox
+      checkbox.trigger('click');
+      // after unchecking the checkbox, it should have password type
+      expect(pwsIntputElement.attr('type')).to.equal('password');
+    });
+
+    it('should trigger keyup handler with enter/return key ', function() {
+      var mockBlur = sinon.spy(element.find('input')[0], 'blur');
+      var e = jQuery.Event("keyup");
+      e.keyCode = 13;
+      element.trigger(e);
+      expect(mockBlur).to.be.calledOnce;
+    });
+
+    it('should NOT trigger keyup handler with non enter/return key ', function() {
+      var mockBlur = sinon.spy(element.find('input')[0], 'blur');
+      var e = jQuery.Event("keyup");
+      e.keyCode = 14;
+      element.trigger(e);
+      expect(mockBlur).not.to.be.called;
+    });
+  });
 });