diff --git a/user_channel/passwd_mgr.cpp b/user_channel/passwd_mgr.cpp
index 15e6e34..c47bc6d 100644
--- a/user_channel/passwd_mgr.cpp
+++ b/user_channel/passwd_mgr.cpp
@@ -78,7 +78,8 @@
     return iter->second;
 }
 
-int PasswdMgr::clearUserEntry(const std::string& userName)
+int PasswdMgr::updateUserEntry(const std::string& userName,
+                               const std::string& newUserName)
 {
     std::time_t updatedTime = getUpdatedFileTime();
     // Check file time stamp to know passwdMapList is up-to-date.
@@ -94,7 +95,7 @@
     }
 
     // Write passwdMap to Encryted file
-    if (updatePasswdSpecialFile(userName) != 0)
+    if (updatePasswdSpecialFile(userName, newUserName) != 0)
     {
         log<level::DEBUG>("Passwd file update failed");
         return -EIO;
@@ -330,7 +331,8 @@
     return 0;
 }
 
-int PasswdMgr::updatePasswdSpecialFile(const std::string& userName)
+int PasswdMgr::updatePasswdSpecialFile(const std::string& userName,
+                                       const std::string& newUserName)
 {
     phosphor::user::shadow::Lock lock();
 
@@ -350,7 +352,8 @@
 
     if (dataBuf.size() != 0)
     {
-        inBytesLen = dataBuf.size() + EVP_CIPHER_block_size(cipher);
+        inBytesLen =
+            dataBuf.size() + newUserName.size() + EVP_CIPHER_block_size(cipher);
     }
 
     std::vector<uint8_t> inBytes(inBytesLen);
@@ -368,12 +371,20 @@
                 if (userName.compare(lineStr.substr(0, userEPos)) == 0)
                 {
                     isUsrFound = true;
+                    if (!newUserName.empty())
+                    {
+                        bytesWritten += std::snprintf(
+                            reinterpret_cast<char*>(&inBytes[0]) + bytesWritten,
+                            (inBytesLen - bytesWritten), "%s%s\n",
+                            newUserName.c_str(),
+                            lineStr.substr(userEPos, lineStr.size()).data());
+                    }
                 }
                 else
                 {
                     bytesWritten += std::snprintf(
                         reinterpret_cast<char*>(&inBytes[0]) + bytesWritten,
-                        inBytesLen, "%s\n", lineStr.data());
+                        (inBytesLen - bytesWritten), "%s\n", lineStr.data());
                 }
             }
             linePtr = strtok_r(NULL, "\n", &nToken);
diff --git a/user_channel/passwd_mgr.hpp b/user_channel/passwd_mgr.hpp
index e5625bc..a444522 100644
--- a/user_channel/passwd_mgr.hpp
+++ b/user_channel/passwd_mgr.hpp
@@ -46,13 +46,17 @@
      */
     std::string getPasswdByUserName(const std::string& userName);
 
-    /** @brief Clear username and password entry for the specified user
+    /** @brief Update / clear  username and password entry for the specified
+     * user
      *
-     *  @param[in] userName - username
+     *  @param[in] userName - user name that has to be renamed / deleted
+     *  @param[in] newUserName - new user name. If empty, userName will be
+     *   deleted.
      *
      * @return error response
      */
-    int clearUserEntry(const std::string& userName);
+    int updateUserEntry(const std::string& userName,
+                        const std::string& newUserName);
 
   private:
     using UserName = std::string;
@@ -81,11 +85,14 @@
     /** @brief  Updates special password file by clearing the password entry
      *  for the user specified.
      *
-     *  @param[in] userName - user name entry that has to be removed.
+     *  @param[in] userName - user name that has to be renamed / deleted
+     *  @param[in] newUserName - new user name. If empty, userName will be
+     *   deleted.
      *
      * @return error response
      */
-    int updatePasswdSpecialFile(const std::string& userName);
+    int updatePasswdSpecialFile(const std::string& userName,
+                                const std::string& newUserName);
     /** @brief encrypts or decrypt the data provided
      *
      *  @param[in] doEncrypt - do encrypt if set to true, else do decrypt.
diff --git a/user_channel/user_layer.cpp b/user_channel/user_layer.cpp
index ed99137..06cdd68 100644
--- a/user_channel/user_layer.cpp
+++ b/user_channel/user_layer.cpp
@@ -29,9 +29,22 @@
     return passwdMgr.getPasswdByUserName(userName);
 }
 
-ipmi_ret_t ipmiUserClearPassword(const std::string& userName)
+ipmi_ret_t ipmiClearUserEntryPassword(const std::string& userName)
 {
-    passwdMgr.clearUserEntry(userName);
+    if (passwdMgr.updateUserEntry(userName, "") != 0)
+    {
+        return IPMI_CC_UNSPECIFIED_ERROR;
+    }
+    return IPMI_CC_OK;
+}
+
+ipmi_ret_t ipmiRenameUserEntryPassword(const std::string& userName,
+                                       const std::string& newUserName)
+{
+    if (passwdMgr.updateUserEntry(userName, newUserName) != 0)
+    {
+        return IPMI_CC_UNSPECIFIED_ERROR;
+    }
     return IPMI_CC_OK;
 }
 
diff --git a/user_channel/user_layer.hpp b/user_channel/user_layer.hpp
index 4040102..a946e4c 100644
--- a/user_channel/user_layer.hpp
+++ b/user_channel/user_layer.hpp
@@ -35,7 +35,18 @@
  *
  *  @return 0 on success, non-zero otherwise.
  */
-ipmi_ret_t ipmiUserClearPassword(const std::string& userName);
+ipmi_ret_t ipmiClearUserEntryPassword(const std::string& userName);
+
+/** @brief The IPMI call to reuse password entry for the renamed user
+ *  to another one
+ *
+ *  @param[in] userName
+ *  @param[in] newUserName
+ *
+ *  @return 0 on success, non-zero otherwise.
+ */
+ipmi_ret_t ipmiRenameUserEntryPassword(const std::string& userName,
+                                       const std::string& newUserName);
 
 // TODO: Define required user layer API Call's which user layer shared library
 // must implement.