diff --git a/chaoscenter/authentication/api/handlers/rest/user_handlers.go b/chaoscenter/authentication/api/handlers/rest/user_handlers.go
index 5bd787e239e..cb1f62003d4 100644
--- a/chaoscenter/authentication/api/handlers/rest/user_handlers.go
+++ b/chaoscenter/authentication/api/handlers/rest/user_handlers.go
@@ -81,6 +81,8 @@ func CreateUser(service services.ApplicationService) gin.HandlerFunc {
 		hashedPassword, err := bcrypt.GenerateFromPassword([]byte(userRequest.Password), utils.PasswordEncryptionCost)
 		if err != nil {
 			log.Error("auth error: Error generating password")
+			c.JSON(utils.ErrorStatusCodes[utils.ErrServerError], presenter.CreateErrorResponse(utils.ErrServerError))
+			return
 		}
 		password := string(hashedPassword)
 		userRequest.Password = password