diff --git a/backend/prisma/seed/config.seed.ts b/backend/prisma/seed/config.seed.ts
index 352ab5e9..3fecd571 100644
--- a/backend/prisma/seed/config.seed.ts
+++ b/backend/prisma/seed/config.seed.ts
@@ -135,9 +135,27 @@ const configVariables: Prisma.ConfigCreateInput[] = [
       "Hey!\nYou requested a password reset. Click this link to reset your password: {url}\nThe link expires in a hour.\nPingvin Share 🐧",
     category: "email",
   },
-
   {
     order: 13,
+    key: "INVITE_EMAIL_SUBJECT",
+    description:
+      "Subject of the email which gets sent when an admin invites an user.",
+    type: "string",
+    value: "Pingvin Share invite",
+    category: "email",
+  },
+  {
+    order: 14,
+    key: "INVITE_EMAIL_MESSAGE",
+    description:
+      "Message which gets sent when an admin invites an user. {url} will be replaced with the invite URL and {password} with the password.",
+    type: "text",
+    value:
+      "Hey!\nYou were invited to Pingvin Share. Click this link to accept the invite: {url}\nYour password is: {password}\nPingvin Share 🐧",
+    category: "email",
+  },
+  {
+    order: 15,
     key: "SMTP_ENABLED",
     description:
       "Whether SMTP is enabled. Only set this to true if you entered the host, port, email, user and password of your SMTP server.",
@@ -147,7 +165,7 @@ const configVariables: Prisma.ConfigCreateInput[] = [
     secret: false,
   },
   {
-    order: 14,
+    order: 16,
     key: "SMTP_HOST",
     description: "Host of the SMTP server",
     type: "string",
@@ -155,7 +173,7 @@ const configVariables: Prisma.ConfigCreateInput[] = [
     category: "smtp",
   },
   {
-    order: 15,
+    order: 17,
     key: "SMTP_PORT",
     description: "Port of the SMTP server",
     type: "number",
@@ -163,7 +181,7 @@ const configVariables: Prisma.ConfigCreateInput[] = [
     category: "smtp",
   },
   {
-    order: 16,
+    order: 18,
     key: "SMTP_EMAIL",
     description: "Email address which the emails get sent from",
     type: "string",
@@ -171,7 +189,7 @@ const configVariables: Prisma.ConfigCreateInput[] = [
     category: "smtp",
   },
   {
-    order: 17,
+    order: 19,
     key: "SMTP_USERNAME",
     description: "Username of the SMTP server",
     type: "string",
@@ -179,7 +197,7 @@ const configVariables: Prisma.ConfigCreateInput[] = [
     category: "smtp",
   },
   {
-    order: 18,
+    order: 20,
     key: "SMTP_PASSWORD",
     description: "Password of the SMTP server",
     type: "string",
diff --git a/backend/src/email/email.service.ts b/backend/src/email/email.service.ts
index 8e9bf463..ff89a442 100644
--- a/backend/src/email/email.service.ts
+++ b/backend/src/email/email.service.ts
@@ -73,6 +73,20 @@ export class EmailService {
     });
   }
 
+  async sendInviteEmail(recipientEmail: string, password: string) {
+    const loginUrl = `${this.config.get("APP_URL")}/auth/signIn`;
+
+    await this.getTransporter().sendMail({
+      from: `"Pingvin Share" <${this.config.get("SMTP_EMAIL")}>`,
+      to: recipientEmail,
+      subject: this.config.get("INVITE_EMAIL_SUBJECT"),
+      text: this.config
+        .get("INVITE_EMAIL_MESSAGE")
+        .replaceAll("{url}", loginUrl)
+        .replaceAll("{password}", password),
+    });
+  }
+
   async sendTestMail(recipientEmail: string) {
     try {
       await this.getTransporter().sendMail({
diff --git a/backend/src/user/dto/createUser.dto.ts b/backend/src/user/dto/createUser.dto.ts
index 986502cc..9a1931fd 100644
--- a/backend/src/user/dto/createUser.dto.ts
+++ b/backend/src/user/dto/createUser.dto.ts
@@ -1,12 +1,15 @@
-import { Expose, plainToClass } from "class-transformer";
-import { Allow } from "class-validator";
+import { plainToClass } from "class-transformer";
+import { Allow, IsOptional, MinLength } from "class-validator";
 import { UserDTO } from "./user.dto";
 
 export class CreateUserDTO extends UserDTO {
-  @Expose()
   @Allow()
   isAdmin: boolean;
 
+  @MinLength(8)
+  @IsOptional()
+  password: string;
+
   from(partial: Partial<CreateUserDTO>) {
     return plainToClass(CreateUserDTO, partial, {
       excludeExtraneousValues: true,
diff --git a/backend/src/user/user.module.ts b/backend/src/user/user.module.ts
index 97150ced..4ca2e946 100644
--- a/backend/src/user/user.module.ts
+++ b/backend/src/user/user.module.ts
@@ -1,8 +1,10 @@
 import { Module } from "@nestjs/common";
+import { EmailModule } from "src/email/email.module";
 import { UserController } from "./user.controller";
 import { UserSevice } from "./user.service";
 
 @Module({
+  imports:[EmailModule],
   providers: [UserSevice],
   controllers: [UserController],
 })
diff --git a/backend/src/user/user.service.ts b/backend/src/user/user.service.ts
index 52d514dd..fe3fc305 100644
--- a/backend/src/user/user.service.ts
+++ b/backend/src/user/user.service.ts
@@ -1,13 +1,17 @@
 import { BadRequestException, Injectable } from "@nestjs/common";
 import { PrismaClientKnownRequestError } from "@prisma/client/runtime";
 import * as argon from "argon2";
+import { EmailService } from "src/email/email.service";
 import { PrismaService } from "src/prisma/prisma.service";
 import { CreateUserDTO } from "./dto/createUser.dto";
 import { UpdateUserDto } from "./dto/updateUser.dto";
 
 @Injectable()
 export class UserSevice {
-  constructor(private prisma: PrismaService) {}
+  constructor(
+    private prisma: PrismaService,
+    private emailService: EmailService
+  ) {}
 
   async list() {
     return await this.prisma.user.findMany();
@@ -18,7 +22,17 @@ export class UserSevice {
   }
 
   async create(dto: CreateUserDTO) {
-    const hash = await argon.hash(dto.password);
+    let hash: string;
+
+    // The password can be undefined if the user is invited by an admin
+    if (!dto.password) {
+      const randomPassword = crypto.randomUUID();
+      hash = await argon.hash(randomPassword);
+      this.emailService.sendInviteEmail(dto.email, randomPassword);
+    } else {
+      hash = await argon.hash(dto.password);
+    }
+
     try {
       return await this.prisma.user.create({
         data: {
diff --git a/frontend/src/components/admin/ManageUserTable.tsx b/frontend/src/components/admin/users/ManageUserTable.tsx
similarity index 98%
rename from frontend/src/components/admin/ManageUserTable.tsx
rename to frontend/src/components/admin/users/ManageUserTable.tsx
index 11fbbe4b..5ca22725 100644
--- a/frontend/src/components/admin/ManageUserTable.tsx
+++ b/frontend/src/components/admin/users/ManageUserTable.tsx
@@ -1,7 +1,7 @@
 import { ActionIcon, Box, Group, Skeleton, Table } from "@mantine/core";
 import { useModals } from "@mantine/modals";
 import { TbCheck, TbEdit, TbTrash } from "react-icons/tb";
-import User from "../../types/user.type";
+import User from "../../../types/user.type";
 import showUpdateUserModal from "./showUpdateUserModal";
 
 const ManageUserTable = ({
diff --git a/frontend/src/components/admin/showCreateUserModal.tsx b/frontend/src/components/admin/users/showCreateUserModal.tsx
similarity index 57%
rename from frontend/src/components/admin/showCreateUserModal.tsx
rename to frontend/src/components/admin/users/showCreateUserModal.tsx
index a794090e..bacd673b 100644
--- a/frontend/src/components/admin/showCreateUserModal.tsx
+++ b/frontend/src/components/admin/users/showCreateUserModal.tsx
@@ -10,38 +10,44 @@ import {
 import { useForm, yupResolver } from "@mantine/form";
 import { ModalsContextProps } from "@mantine/modals/lib/context";
 import * as yup from "yup";
-import userService from "../../services/user.service";
-import toast from "../../utils/toast.util";
+import userService from "../../../services/user.service";
+import toast from "../../../utils/toast.util";
 
 const showCreateUserModal = (
   modals: ModalsContextProps,
+  smtpEnabled: boolean,
   getUsers: () => void
 ) => {
   return modals.openModal({
     title: <Title order={5}>Create user</Title>,
-    children: <Body modals={modals} getUsers={getUsers} />,
+    children: (
+      <Body modals={modals} smtpEnabled={smtpEnabled} getUsers={getUsers} />
+    ),
   });
 };
 
 const Body = ({
   modals,
+  smtpEnabled,
   getUsers,
 }: {
   modals: ModalsContextProps;
+  smtpEnabled: boolean;
   getUsers: () => void;
 }) => {
   const form = useForm({
     initialValues: {
       username: "",
       email: "",
-      password: "",
+      password: undefined,
       isAdmin: false,
+      setPasswordManually: false,
     },
     validate: yupResolver(
       yup.object().shape({
         email: yup.string().email(),
         username: yup.string().min(3),
-        password: yup.string().min(8),
+        password: yup.string().min(8).optional(),
       })
     ),
   });
@@ -62,14 +68,34 @@ const Body = ({
         <Stack>
           <TextInput label="Username" {...form.getInputProps("username")} />
           <TextInput label="Email" {...form.getInputProps("email")} />
-          <PasswordInput
-            label="New password"
-            {...form.getInputProps("password")}
-          />
+          {smtpEnabled && (
+            <Switch
+              mt="xs"
+              labelPosition="left"
+              label="Set password manually"
+              description="If not checked, the user will receive an email with a link to set their password."
+              {...form.getInputProps("setPasswordManually", {
+                type: "checkbox",
+              })}
+            />
+          )}
+          {form.values.setPasswordManually || !smtpEnabled && (
+            <PasswordInput
+              label="Password"
+              {...form.getInputProps("password")}
+            />
+          )}
           <Switch
+            styles={{
+              body: {
+                display: "flex",
+                justifyContent: "space-between",
+              },
+            }}
             mt="xs"
             labelPosition="left"
             label="Admin privileges"
+            description="If checked, the user will be able to access the admin panel."
             {...form.getInputProps("isAdmin", { type: "checkbox" })}
           />
           <Group position="right">
diff --git a/frontend/src/components/admin/showUpdateUserModal.tsx b/frontend/src/components/admin/users/showUpdateUserModal.tsx
similarity index 93%
rename from frontend/src/components/admin/showUpdateUserModal.tsx
rename to frontend/src/components/admin/users/showUpdateUserModal.tsx
index d87c84dd..c15338e1 100644
--- a/frontend/src/components/admin/showUpdateUserModal.tsx
+++ b/frontend/src/components/admin/users/showUpdateUserModal.tsx
@@ -11,9 +11,9 @@ import {
 import { useForm, yupResolver } from "@mantine/form";
 import { ModalsContextProps } from "@mantine/modals/lib/context";
 import * as yup from "yup";
-import userService from "../../services/user.service";
-import User from "../../types/user.type";
-import toast from "../../utils/toast.util";
+import userService from "../../../services/user.service";
+import User from "../../../types/user.type";
+import toast from "../../../utils/toast.util";
 
 const showUpdateUserModal = (
   modals: ModalsContextProps,
@@ -90,7 +90,7 @@ const Body = ({
       </form>
       <Accordion>
         <Accordion.Item sx={{ borderBottom: "none" }} value="changePassword">
-          <Accordion.Control>Change password</Accordion.Control>
+          <Accordion.Control px={0}>Change password</Accordion.Control>
           <Accordion.Panel>
             <form
               onSubmit={passwordForm.onSubmit(async (values) => {
diff --git a/frontend/src/pages/admin/users.tsx b/frontend/src/pages/admin/users.tsx
index eb307beb..017269ea 100644
--- a/frontend/src/pages/admin/users.tsx
+++ b/frontend/src/pages/admin/users.tsx
@@ -2,9 +2,10 @@ import { Button, Group, Space, Text, Title } from "@mantine/core";
 import { useModals } from "@mantine/modals";
 import { useEffect, useState } from "react";
 import { TbPlus } from "react-icons/tb";
-import ManageUserTable from "../../components/admin/ManageUserTable";
-import showCreateUserModal from "../../components/admin/showCreateUserModal";
+import ManageUserTable from "../../components/admin/users/ManageUserTable";
+import showCreateUserModal from "../../components/admin/users/showCreateUserModal";
 import Meta from "../../components/Meta";
+import useConfig from "../../hooks/config.hook";
 import userService from "../../services/user.service";
 import User from "../../types/user.type";
 import toast from "../../utils/toast.util";
@@ -12,6 +13,8 @@ import toast from "../../utils/toast.util";
 const Users = () => {
   const [users, setUsers] = useState<User[]>([]);
   const [isLoading, setIsLoading] = useState(true);
+
+  const config = useConfig();
   const modals = useModals();
 
   const getUsers = () => {
@@ -54,7 +57,9 @@ const Users = () => {
           User management
         </Title>
         <Button
-          onClick={() => showCreateUserModal(modals, getUsers)}
+          onClick={() =>
+            showCreateUserModal(modals, config.get("SMTP_ENABLED"), getUsers)
+          }
           leftIcon={<TbPlus size={20} />}
         >
           Create
diff --git a/frontend/src/types/user.type.ts b/frontend/src/types/user.type.ts
index 1761d4a2..d6b6e528 100644
--- a/frontend/src/types/user.type.ts
+++ b/frontend/src/types/user.type.ts
@@ -9,7 +9,7 @@ type User = {
 export type CreateUser = {
   username: string;
   email: string;
-  password: string;
+  password?: string;
   isAdmin?: boolean;
 };