diff --git a/azuread/resource_user.go b/azuread/resource_user.go
index fc7afcf996..21c4c20bf3 100644
--- a/azuread/resource_user.go
+++ b/azuread/resource_user.go
@@ -53,7 +53,7 @@ func resourceUser() *schema.Resource {
 				Type:         schema.TypeString,
 				Required:     true,
 				Sensitive:    true,
-				ValidateFunc: validation.StringLenBetween(1, 16), //currently the max length for AAD passwords is 16
+				ValidateFunc: validation.StringLenBetween(1, 256), //currently the max length for AAD passwords is 256
 			},
 
 			"force_password_change": {
diff --git a/website/docs/r/user.html.markdown b/website/docs/r/user.html.markdown
index 402a1a0685..f1111d645e 100644
--- a/website/docs/r/user.html.markdown
+++ b/website/docs/r/user.html.markdown
@@ -32,7 +32,7 @@ The following arguments are supported:
 * `display_name` - (Required) The name to display in the address book for the user.
 * `account_enabled` - (Optional) `true` if the account should be enabled, otherwise `false`. Defaults to `true`.
 * `mail_nickname`- (Optional) The mail alias for the user. Defaults to the user name part of the User Principal Name.
-* `password` - (Required) The password for the User. The password must satisfy minimum requirements as specified by the password policy. The maximum length is 16 characters.
+* `password` - (Required) The password for the User. The password must satisfy minimum requirements as specified by the password policy. The maximum length is 256 characters.
 * `force_password_change` - (Optional) `true` if the User is forced to change the password during the next sign-in. Defaults to `false`.
 
 ## Attributes Reference