diff --git a/wsmaster/che-core-api-auth/src/main/java/org/eclipse/che/security/oauth/EmbeddedOAuthAPI.java b/wsmaster/che-core-api-auth/src/main/java/org/eclipse/che/security/oauth/EmbeddedOAuthAPI.java
index 455f1d0160..ef644e7a67 100644
--- a/wsmaster/che-core-api-auth/src/main/java/org/eclipse/che/security/oauth/EmbeddedOAuthAPI.java
+++ b/wsmaster/che-core-api-auth/src/main/java/org/eclipse/che/security/oauth/EmbeddedOAuthAPI.java
@@ -111,7 +111,7 @@ public Response callback(UriInfo uriInfo, @Nullable List<String> errorValues)
               EnvironmentContext.getCurrent().getSubject().getUserId(),
               null,
               null,
-              NameGenerator.generate(OAUTH_2_PREFIX, 5),
+              generateTokenName(providerName),
               NameGenerator.generate("id-", 5),
               token));
     } catch (OAuthAuthenticationException e) {
@@ -135,6 +135,18 @@ public Response callback(UriInfo uriInfo, @Nullable List<String> errorValues)
     return Response.temporaryRedirect(uri).build();
   }
 
+  /*
+   * This value is used for generating git credentials. Most of the git providers work with git
+   * credentials with OAuth token in format "ouath2:<oauth token>" but bitbucket requires username
+   * to be explicitly set: "<username>:<oauth token>, see {@link
+   * GitCredentialManager#createOrReplace}
+   * TODO: needs to be moved to the specific bitbucket implementation.
+   */
+  private String generateTokenName(String providerName) {
+    return NameGenerator.generate(
+        "bitbucket".equals(providerName) ? providerName + "-" : OAUTH_2_PREFIX, 5);
+  }
+
   /**
    * Encode the redirect URL query parameters to avoid the error when the redirect URL contains
    * JSON, as a query parameter. This prevents passing unsupported characters, like '{' and '}' to
diff --git a/wsmaster/che-core-api-auth/src/test/java/org/eclipse/che/security/oauth/EmbeddedOAuthAPITest.java b/wsmaster/che-core-api-auth/src/test/java/org/eclipse/che/security/oauth/EmbeddedOAuthAPITest.java
index f016473046..53d765be70 100644
--- a/wsmaster/che-core-api-auth/src/test/java/org/eclipse/che/security/oauth/EmbeddedOAuthAPITest.java
+++ b/wsmaster/che-core-api-auth/src/test/java/org/eclipse/che/security/oauth/EmbeddedOAuthAPITest.java
@@ -143,6 +143,34 @@ public void shouldStoreTokenOnCallback() throws Exception {
     assertEquals(token.getToken(), "token");
   }
 
+  @Test
+  public void shouldStoreBitbucketTokenOnCallback() throws Exception {
+    // given
+    UriInfo uriInfo = mock(UriInfo.class);
+    OAuthAuthenticator authenticator = mock(OAuthAuthenticator.class);
+    when(authenticator.getEndpointUrl()).thenReturn("http://eclipse.che");
+    when(authenticator.callback(any(URL.class), anyList())).thenReturn("token");
+    when(uriInfo.getRequestUri())
+        .thenReturn(
+            new URI(
+                "http://eclipse.che?state=oauth_provider%3Dbitbucket%26redirect_after_login%3DredirectUrl"));
+    when(oauth2Providers.getAuthenticator("bitbucket")).thenReturn(authenticator);
+    ArgumentCaptor<PersonalAccessToken> tokenCapture =
+        ArgumentCaptor.forClass(PersonalAccessToken.class);
+
+    // when
+    embeddedOAuthAPI.callback(uriInfo, emptyList());
+
+    // then
+    verify(personalAccessTokenManager).store(tokenCapture.capture());
+    PersonalAccessToken token = tokenCapture.getValue();
+    assertEquals(token.getScmProviderUrl(), "http://eclipse.che");
+    assertEquals(token.getCheUserId(), "0000-00-0000");
+    assertTrue(token.getScmTokenId().startsWith("id-"));
+    assertTrue(token.getScmTokenName().startsWith("bitbucket-"));
+    assertEquals(token.getToken(), "token");
+  }
+
   @Test
   public void shouldEncodeRedirectUrl() throws Exception {
     // given
diff --git a/wsmaster/che-core-api-factory/src/main/java/org/eclipse/che/api/factory/server/scm/GitCredentialManager.java b/wsmaster/che-core-api-factory/src/main/java/org/eclipse/che/api/factory/server/scm/GitCredentialManager.java
index 62deec42c1..e681fadaee 100644
--- a/wsmaster/che-core-api-factory/src/main/java/org/eclipse/che/api/factory/server/scm/GitCredentialManager.java
+++ b/wsmaster/che-core-api-factory/src/main/java/org/eclipse/che/api/factory/server/scm/GitCredentialManager.java
@@ -1,5 +1,5 @@
 /*
- * Copyright (c) 2012-2021 Red Hat, Inc.
+ * Copyright (c) 2012-2024 Red Hat, Inc.
  * This program and the accompanying materials are made
  * available under the terms of the Eclipse Public License 2.0
  * which is available at https://www.eclipse.org/legal/epl-2.0/
@@ -16,7 +16,8 @@
 
 public interface GitCredentialManager {
   /**
-   * Persists PersonalAccessToken for the future usage.
+   * Propagates git credentials in format: "username:<oauth token>" if the token is Personal Access
+   * Token or "oauth2:<oauth token> if oAuth token.
    *
    * @param personalAccessToken
    * @throws UnsatisfiedScmPreconditionException - some storage preconditions aren't met.