diff --git a/cloud-init-azure-def-usr-pass.patch b/cloud-init-azure-def-usr-pass.patch
new file mode 100644
index 0000000..fee54f8
--- /dev/null
+++ b/cloud-init-azure-def-usr-pass.patch
@@ -0,0 +1,11 @@
+--- cloudinit/sources/DataSourceAzure.py.orig
++++ cloudinit/sources/DataSourceAzure.py
+@@ -1206,7 +1206,7 @@ def read_azure_ovf(contents):
+     if password:
+         defuser['lock_passwd'] = False
+         if DEF_PASSWD_REDACTION != password:
+-            defuser['passwd'] = encrypt_pass(password)
++            defuser['passwd'] = cfg['password'] = encrypt_pass(password)
+ 
+     if defuser:
+         cfg['system_info'] = {'default_user': defuser}
diff --git a/cloud-init.changes b/cloud-init.changes
index 1fd569c..ca8ce69 100644
--- a/cloud-init.changes
+++ b/cloud-init.changes
@@ -1,3 +1,9 @@
+-------------------------------------------------------------------
+Tue Nov 24 12:40:00 UTC 2020 - Robert Schweikert <rjschwei@suse.com>
+
+- Add cloud-init-azure-def-usr-pass.patch (bsc#1179150, bsc#1179151)
+  + Properly set the password for the default user in all circumstances
+
 -------------------------------------------------------------------
 Fri Nov 13 19:44:11 UTC 2020 - Robert Schweikert <rjschwei@suse.com>
 
diff --git a/cloud-init.spec b/cloud-init.spec
index e04afe9..05e1507 100644
--- a/cloud-init.spec
+++ b/cloud-init.spec
@@ -38,6 +38,8 @@ Patch56:        cloud-init-sysconf-path.patch
 Patch57:        cloud-init-no-tempnet-oci.patch
 Patch58:        cloud-init-after-kvp.diff
 Patch59:        cloud-init-recognize-hpc.patch
+# FIXME https://github.com/canonical/cloud-init/commit/eea754492f074e00b601cf77aa278e3623857c5a
+Patch60:        cloud-init-azure-def-usr-pass.patch
 BuildRequires:  fdupes
 BuildRequires:  filesystem
 # pkg-config is needed to find correct systemd unit dir
@@ -134,6 +136,7 @@ Documentation and examples for cloud-init tools
 %patch57
 %patch58 -p1
 %patch59
+%patch60
 # patch in the full version to version.py
 version_pys=$(find . -name version.py -type f)
 [ -n "$version_pys" ] ||