diff --git a/headers/private/screen_saver/ScreenSaverSettings.h b/headers/private/screen_saver/ScreenSaverSettings.h
index 78257ccd6b..65464c12a5 100644
--- a/headers/private/screen_saver/ScreenSaverSettings.h
+++ b/headers/private/screen_saver/ScreenSaverSettings.h
@@ -56,9 +56,9 @@ public:
 			bigtime_t		PasswordTime() const { return fPasswordTime; }
 			const char*		Password() { return fPassword.String(); }
 			const char*		LockMethod() { return fLockMethod.String(); }
-			bool			IsNetworkPassword()
-								{ return strcmp(fLockMethod.String(), "custom")
-									!= 0; }
+			bool			UseSystemPassword()
+								{ return strcmp(fLockMethod.String(), "system")
+									== 0; }
 
 			const char*		ModuleName() { return fModuleName.String(); }
 			status_t		GetModuleState(const char* name,
@@ -84,7 +84,7 @@ public:
 								{ fPasswordTime = time; }
 			void			SetPassword(const char* password)
 								{ fPassword = password; }
-								// Cannot set network password from here.
+								// Cannot set system password from here.
 			void			SetLockMethod(const char* method)
 								{ fLockMethod = method; }
 			void			SetModuleName(const char* name)
diff --git a/src/bin/screen_blanker/ScreenBlanker.cpp b/src/bin/screen_blanker/ScreenBlanker.cpp
index 87d387a9ec..5af0f312c3 100644
--- a/src/bin/screen_blanker/ScreenBlanker.cpp
+++ b/src/bin/screen_blanker/ScreenBlanker.cpp
@@ -224,7 +224,9 @@ ScreenBlanker::MessageReceived(BMessage* message)
 	switch (message->what) {
 		case kMsgUnlock:
 		{
-			if (strcmp(fSettings.Password(), crypt(fPasswordWindow->Password(),
+			// if the user has no password then just exit on any input
+			if (fSettings.Password()[0] != '\0'
+				&& strcmp(fSettings.Password(), crypt(fPasswordWindow->Password(),
 					fSettings.Password())) != 0) {
 				beep();
 				fPasswordWindow->SetPassword("");
diff --git a/src/kits/screensaver/ScreenSaverSettings.cpp b/src/kits/screensaver/ScreenSaverSettings.cpp
index 73175cd6e9..2658393da6 100644
--- a/src/kits/screensaver/ScreenSaverSettings.cpp
+++ b/src/kits/screensaver/ScreenSaverSettings.cpp
@@ -14,6 +14,8 @@
 
 #include "ScreenSaverSettings.h"
 
+#include <pwd.h>
+#include <shadow.h>
 #include <string.h>
 
 #include <Debug.h>
@@ -87,8 +89,20 @@ ScreenSaverSettings::Load()
 	if (fSettings.FindString("modulename", &string) == B_OK)
 		fModuleName = string;
 
-	if (IsNetworkPassword()) {
-		// TODO: this does not work yet
+	if (!UseSystemPassword())
+		return true;
+
+	char* username = getlogin();
+	if (username == NULL)
+		return true;
+
+	struct spwd *shadowpwd = getspnam(username);
+	if (shadowpwd != NULL) {
+		fPassword = shadowpwd->sp_pwdp;
+	} else {
+		struct passwd *pwd = getpwnam(username);
+		if (pwd != NULL)
+			fPassword = pwd->pw_passwd;
 	}
 
 	return true;
@@ -160,7 +174,7 @@ ScreenSaverSettings::Message()
 	if (fSettings.ReplaceString("lockmethod", fLockMethod) != B_OK)
 		fSettings.AddString("lockmethod", fLockMethod);
 
-	const char* password = IsNetworkPassword() ? "" : fPassword.String();
+	const char* password = UseSystemPassword() ? "" : fPassword.String();
 	if (fSettings.ReplaceString("lockpassword", password) != B_OK)
 		fSettings.AddString("lockpassword", password);
 
diff --git a/src/preferences/screensaver/PasswordWindow.cpp b/src/preferences/screensaver/PasswordWindow.cpp
index 54e32093b6..af3befcf7b 100644
--- a/src/preferences/screensaver/PasswordWindow.cpp
+++ b/src/preferences/screensaver/PasswordWindow.cpp
@@ -60,13 +60,13 @@ PasswordWindow::_Setup()
 	topView->SetViewUIColor(B_PANEL_BACKGROUND_COLOR);
 	topView->SetExplicitMaxSize(BSize(B_SIZE_UNLIMITED, B_SIZE_UNLIMITED));
 
-	BBox* networkBox = new BBox("networkBox");
-	networkBox->SetBorder(B_NO_BORDER);
+	BBox* systemBox = new BBox("systemBox");
+	systemBox->SetBorder(B_NO_BORDER);
 
-	fUseNetwork = new BRadioButton("useNetwork",
-		B_TRANSLATE("Use network password"),
+	fUseSystem = new BRadioButton("useSystem",
+		B_TRANSLATE("Use system password"),
 		new BMessage(kMsgPasswordTypeChanged));
-	networkBox->SetLabel(fUseNetwork);
+	systemBox->SetLabel(fUseSystem);
 
 	BBox* customBox = new BBox("customBox");
 
@@ -114,7 +114,7 @@ PasswordWindow::_Setup()
 
 	BLayoutBuilder::Group<>(topView, B_VERTICAL, 0)
 		.SetInsets(B_USE_DEFAULT_SPACING)
-		.Add(networkBox)
+		.Add(systemBox)
 		.Add(customBox)
 		.AddStrut(B_USE_DEFAULT_SPACING)
 		.AddGroup(B_HORIZONTAL)
@@ -134,14 +134,14 @@ PasswordWindow::_Setup()
 void 
 PasswordWindow::Update() 
 {
-	if (fSettings.IsNetworkPassword())
-		fUseNetwork->SetValue(B_CONTROL_ON);
+	if (fSettings.UseSystemPassword())
+		fUseSystem->SetValue(B_CONTROL_ON);
 	else
 		fUseCustom->SetValue(B_CONTROL_ON);
 
-	bool useNetPassword = (fUseCustom->Value() > 0);
-	fConfirmControl->SetEnabled(useNetPassword);
-	fPasswordControl->SetEnabled(useNetPassword);
+	bool useSysPassword = (fUseCustom->Value() > 0);
+	fConfirmControl->SetEnabled(useSysPassword);
+	fPasswordControl->SetEnabled(useSysPassword);
 }
 
 
@@ -150,7 +150,7 @@ PasswordWindow::MessageReceived(BMessage* message)
 {
 	switch (message->what) {
 		case kMsgDone:
-			fSettings.SetLockMethod(fUseCustom->Value() ? "custom" : "network");
+			fSettings.SetLockMethod(fUseCustom->Value() ? "custom" : "system");
 			if (fUseCustom->Value()) {
 				if (strcmp(fPasswordControl->Text(), fConfirmControl->Text())
 						!= 0) {
@@ -178,7 +178,7 @@ PasswordWindow::MessageReceived(BMessage* message)
 			break;
 
 		case kMsgPasswordTypeChanged:
-			fSettings.SetLockMethod(fUseCustom->Value() > 0 ? "custom" : "network");
+			fSettings.SetLockMethod(fUseCustom->Value() > 0 ? "custom" : "system");
 			Update();
 			break;
 
diff --git a/src/preferences/screensaver/PasswordWindow.h b/src/preferences/screensaver/PasswordWindow.h
index eee262113e..5427723455 100644
--- a/src/preferences/screensaver/PasswordWindow.h
+++ b/src/preferences/screensaver/PasswordWindow.h
@@ -31,7 +31,7 @@ private:
 			void				_Setup();
 
 			BRadioButton*		fUseCustom;
-			BRadioButton*		fUseNetwork;
+			BRadioButton*		fUseSystem;
 			BTextControl*		fConfirmControl;
 			BTextControl*		fPasswordControl;