diff --git a/src/Components/CreateImageWizard/steps/Users/component/UserInfo.tsx b/src/Components/CreateImageWizard/steps/Users/component/UserInfo.tsx
index ba02c27ad..e10fd87b6 100644
--- a/src/Components/CreateImageWizard/steps/Users/component/UserInfo.tsx
+++ b/src/Components/CreateImageWizard/steps/Users/component/UserInfo.tsx
@@ -92,8 +92,7 @@ const UserInfo = () => {
   };
   const toggleConfirmPasswordVisibility = () =>
     setIsConfirmPasswordVisible((prevState) => !prevState);
-  const isPasswordDisabled = Boolean(userSshKey);
-  const isSshKeyDisabled = Boolean(userPassword || confirmUserPassword);
+
   const stepValidation = useUserValidation();
   return (
     <Form>
@@ -120,7 +119,6 @@ const UserInfo = () => {
           placeholder="Enter password"
           stepValidation={stepValidation}
           fieldName="userPassword"
-          isDisabled={isPasswordDisabled}
           togglePasswordVisibility={togglePasswordVisibility}
           isPasswordVisible={isPasswordVisible}
         />
@@ -152,7 +150,6 @@ const UserInfo = () => {
           placeholder="Enter confirm password"
           stepValidation={stepValidation}
           fieldName="userConfirmPassword"
-          isDisabled={isPasswordDisabled}
           togglePasswordVisibility={toggleConfirmPasswordVisibility}
           isPasswordVisible={isConfirmPasswordVisible}
         />
@@ -165,14 +162,11 @@ const UserInfo = () => {
           onChange={(event, ssh_key) =>
             handleFieldChange('ssh_key', ssh_key, setUserSshKey, () => {
               // Additional logic for SSH key
-              dispatch(setUserPassword(''));
-              dispatch(setConfirmUserPassword(''));
             })
           }
           placeholder="Paste your public SSH key"
           stepValidation={stepValidation}
           fieldName="userSshKey"
-          isDisabled={isSshKeyDisabled}
         />
         <Button
           component="a"
diff --git a/src/Components/CreateImageWizard/utilities/useValidation.tsx b/src/Components/CreateImageWizard/utilities/useValidation.tsx
index 755b1b3a3..59cc75b71 100644
--- a/src/Components/CreateImageWizard/utilities/useValidation.tsx
+++ b/src/Components/CreateImageWizard/utilities/useValidation.tsx
@@ -145,20 +145,20 @@ export function useUserValidation(): StepValidation {
   const userPassword = useAppSelector(selectUserPassword);
   const userConfirmPassword = useAppSelector(selectConfirmUserPassword);
   const userSshKey = useAppSelector(selectUserSshKey);
-  const shouldValidatePassword = !userSshKey;
-  const shouldValidateSshKey = !userPassword;
   const userNameValid = isUserNameValid(userName);
-  const passwordValid = shouldValidatePassword
-    ? isPasswordValid(userPassword || '')
-    : true;
+  const passwordValid = isPasswordValid(userPassword || '');
 
   const passwordConfirmMatchValid = isConfirmPasswordValid(
     userPassword || '',
     userConfirmPassword || ''
   );
-  const sshKeyValid = shouldValidateSshKey
-    ? isSshKeyValid(userSshKey || '')
-    : true;
+  const sshKeyValid = isSshKeyValid(userSshKey || '');
+  const isPasswordAndConfirmValid = passwordValid && passwordConfirmMatchValid;
+  const canProceed =
+    userNameValid &&
+    ((userSshKey && sshKeyValid) ||
+      (userPassword && isPasswordAndConfirmValid));
+
   return {
     errors: {
       userName: !userNameValid
@@ -171,17 +171,26 @@ export function useUserValidation(): StepValidation {
           '\n' +
           '       Usernames may only be up to 32 characters long.'
         : '',
-      userPassword: !passwordValid ? 'Invalid user password' : '',
-      userConfirmPassword: !passwordConfirmMatchValid
-        ? 'password and confirm password should be the same'
-        : '',
-      userSshKey: !sshKeyValid
-        ? "Value does not match pattern: /^(ssh-(rsa|dss|ed25519)|ecdsa-sha2-nistp(256|384|521)) \\\\S+/.'"
-        : '',
+      userPassword:
+        userSshKey || !userPassword
+          ? ''
+          : !passwordValid
+          ? 'Invalid user password'
+          : '',
+      userConfirmPassword:
+        userSshKey || !userPassword
+          ? ''
+          : !passwordConfirmMatchValid
+          ? 'password and confirm password should be the same'
+          : '',
+      userSshKey:
+        userPassword || !userSshKey
+          ? ''
+          : !sshKeyValid
+          ? "Value does not match pattern: /^(ssh-(rsa|dss|ed25519)|ecdsa-sha2-nistp(256|384|521)) \\\\S+/.'"
+          : '',
     },
-    disabledNext:
-      !(userNameValid && passwordValid && passwordConfirmMatchValid) ||
-      !(userNameValid && sshKeyValid),
+    disabledNext: !canProceed,
   };
 }