diff --git a/src/dashboard.mjs b/src/dashboard.mjs
index 1e939cf..a3f38e3 100644
--- a/src/dashboard.mjs
+++ b/src/dashboard.mjs
@@ -31,6 +31,22 @@ function timingSafeCompare(a, b) {
   return crypto.timingSafeEqual(bufA, bufB);
 }
 
+function verifyPassword(input, stored) {
+  if (stored.startsWith('scrypt:')) {
+    const parts = stored.split(':');
+    if (parts.length !== 3) return false;
+    try {
+      const salt = Buffer.from(parts[1], 'hex');
+      const hash = Buffer.from(parts[2], 'hex');
+      const derived = crypto.scryptSync(input, salt, 64);
+      return crypto.timingSafeEqual(derived, hash);
+    } catch {
+      return false;
+    }
+  }
+  return timingSafeCompare(input, stored);
+}
+
 export async function cmdDashboard(port = DEFAULT_DASHBOARD_PORT, host = '127.0.0.1') {
   // Resolve package root relative to this file (src/dashboard.mjs)
   // this file is in <root>/src/dashboard.mjs, so '..' goes to <root>
@@ -54,7 +70,7 @@ export async function cmdDashboard(port = DEFAULT_DASHBOARD_PORT, host = '127.0.
       if (type === 'Basic' && credentials) {
         try {
           const decoded = Buffer.from(credentials, 'base64').toString();
-          isValid = timingSafeCompare(decoded, auth);
+          isValid = verifyPassword(decoded, auth);
         } catch {
           isValid = false;
         }
diff --git a/test/dashboard-auth.test.mjs b/test/dashboard-auth.test.mjs
index 7cedac0..54e6910 100644
--- a/test/dashboard-auth.test.mjs
+++ b/test/dashboard-auth.test.mjs
@@ -1,6 +1,7 @@
 import test from 'node:test';
 import assert from 'node:assert';
 import http from 'node:http';
+import crypto from 'node:crypto';
 import { cmdDashboard } from '../src/dashboard.mjs';
 import { _resetTorchConfigCache } from '../src/torch-config.mjs';
 
@@ -147,4 +148,43 @@ test('Dashboard Authentication', async (t) => {
       _resetTorchConfigCache();
     }
   });
+
+  await t.test('validates correctly using scrypt hashed credentials', async () => {
+    // Generate a valid scrypt hash
+    const password = 'admin:hashedpassword';
+    const salt = crypto.randomBytes(16);
+    const hash = crypto.scryptSync(password, salt, 64);
+    const storedAuth = `scrypt:${salt.toString('hex')}:${hash.toString('hex')}`;
+
+    process.env.TORCH_DASHBOARD_AUTH = storedAuth;
+    _resetTorchConfigCache();
+
+    server = await cmdDashboard(0);
+    testPort = server.address().port;
+
+    try {
+      const makeRequest = (credentials) => {
+        const auth = Buffer.from(credentials).toString('base64');
+        return new Promise((resolve) => {
+          http.get({
+            host: '127.0.0.1',
+            port: testPort,
+            path: '/dashboard/',
+            headers: { 'Authorization': `Basic ${auth}` }
+          }, resolve);
+        });
+      };
+
+      // Correct password
+      const resCorrect = await makeRequest(password);
+      assert.notStrictEqual(resCorrect.statusCode, 401, 'correct hashed credentials must not be rejected');
+
+      // Incorrect password
+      const resIncorrect = await makeRequest('admin:wrong');
+      assert.strictEqual(resIncorrect.statusCode, 401, 'incorrect hashed credentials must be rejected');
+    } finally {
+      delete process.env.TORCH_DASHBOARD_AUTH;
+      _resetTorchConfigCache();
+    }
+  });
 });