diff --git a/README.md b/README.md
index 481529e..5f987f0 100644
--- a/README.md
+++ b/README.md
@@ -170,14 +170,18 @@ In this instance `PUID=1000` and `PGID=1000`, to find yours use `id user` as bel
  
 ## Application Setup
 
-Access the webui at `http://<your-ip>:8443`.  
-For github integration, drop your ssh key in to `/config/.ssh`.  
-Then open a terminal from the top menu and set your github username and email via the following commands  
+Access the webui at `http://<your-ip>:8443`.
+For github integration, drop your ssh key in to `/config/.ssh`.
+Then open a terminal from the top menu and set your github username and email via the following commands
 ```
 git config --global user.name "username"
 git config --global user.email "email address"
 ```
 
+### Hashed code-server password
+If you wish to use the [hashed password](https://github.com/cdr/code-server/blob/v3.8.0/doc/FAQ.md#can-i-store-my-password-hashed) funtion in code-server, you need to pass the `HASHED_PASSWORD` environment variable, as well as the `PASSWORD` variable.
+Note: Use printf instead of echo as echo introduces newlines in the hash
+
 
 ## Docker Mods
 [![Docker Mods](https://img.shields.io/badge/dynamic/yaml?color=94398d&labelColor=555555&logoColor=ffffff&style=for-the-badge&label=code-server&query=%24.mods%5B%27code-server%27%5D.mod_count&url=https%3A%2F%2Fraw.githubusercontent.com%2Flinuxserver%2Fdocker-mods%2Fmaster%2Fmod-list.yml)](https://mods.linuxserver.io/?mod=code-server "view available mods for this container.") [![Docker Universal Mods](https://img.shields.io/badge/dynamic/yaml?color=94398d&labelColor=555555&logoColor=ffffff&style=for-the-badge&label=universal&query=%24.mods%5B%27universal%27%5D.mod_count&url=https%3A%2F%2Fraw.githubusercontent.com%2Flinuxserver%2Fdocker-mods%2Fmaster%2Fmod-list.yml)](https://mods.linuxserver.io/?mod=universal "view available universal mods.")
diff --git a/readme-vars.yml b/readme-vars.yml
index 2b34d75..d7c9a97 100644
--- a/readme-vars.yml
+++ b/readme-vars.yml
@@ -5,7 +5,7 @@ project_name: code-server
 project_url: "https://coder.com"
 project_logo: "https://raw.githubusercontent.com/linuxserver/docker-templates/master/linuxserver.io/img/code-server-banner.png"
 project_blurb: "[{{ project_name|capitalize }}]({{ project_url }}) is VS Code running on a remote server, accessible through the browser.
- 
+
 - Code on your Chromebook, tablet, and laptop with a consistent dev environment.
 
 - If you have a Windows or Mac workstation, more easily develop for Linux.
@@ -58,14 +58,18 @@ optional_block_1_items: ""
 # application setup block
 app_setup_block_enabled: true
 app_setup_block: |
-  Access the webui at `http://<your-ip>:8443`.  
-  For github integration, drop your ssh key in to `/config/.ssh`.  
-  Then open a terminal from the top menu and set your github username and email via the following commands  
+  Access the webui at `http://<your-ip>:8443`.
+  For github integration, drop your ssh key in to `/config/.ssh`.
+  Then open a terminal from the top menu and set your github username and email via the following commands
   ```
   git config --global user.name "username"
   git config --global user.email "email address"
   ```
 
+  ### Hashed code-server password
+  If you wish to use the [hashed password](https://github.com/cdr/code-server/blob/v3.8.0/doc/FAQ.md#can-i-store-my-password-hashed) funtion in code-server, you need to pass the `HASHED_PASSWORD` environment variable, as well as the `PASSWORD` variable.
+  Note: Use printf instead of echo as echo introduces newlines in the hash
+
 
 # changelog
 changelogs: