diff --git a/package/utils/busybox/Config-defaults.in b/package/utils/busybox/Config-defaults.in
index 5ae8dd5622..515bea3d1d 100644
--- a/package/utils/busybox/Config-defaults.in
+++ b/package/utils/busybox/Config-defaults.in
@@ -1366,7 +1366,7 @@ config BUSYBOX_DEFAULT_CHPASSWD
 	default n
 config BUSYBOX_DEFAULT_FEATURE_DEFAULT_PASSWD_ALGO
 	string
-	default "md5"
+	default "sha256"
 config BUSYBOX_DEFAULT_CRYPTPW
 	bool
 	default n