diff --git a/dvc_ssh/client.py b/dvc_ssh/client.py
index aacb185..32328ef 100644
--- a/dvc_ssh/client.py
+++ b/dvc_ssh/client.py
@@ -95,7 +95,10 @@ async def _read_private_key_interactive(self, path: "FilePath") -> "SSHKey":
                     pass
         raise KeyImportError("Incorrect passphrase")
 
-    def kbdint_auth_requested(self) -> str:
+    def kbdint_auth_requested(self):
+        if self._conn._options.password is not None:
+            return NotImplemented
+
         return ""
 
     async def kbdint_challenge_received(
diff --git a/dvc_ssh/tests/cloud.py b/dvc_ssh/tests/cloud.py
index de3c7a6..367a9e9 100644
--- a/dvc_ssh/tests/cloud.py
+++ b/dvc_ssh/tests/cloud.py
@@ -7,6 +7,7 @@
 from dvc.testing.path_info import URLInfo
 
 TEST_SSH_USER = "user"
+TEST_SSH_PASSWORD = "password"
 TEST_SSH_KEY_PATH = os.path.join(
     os.path.abspath(os.path.dirname(__file__)), f"{TEST_SSH_USER}.key"
 )
diff --git a/dvc_ssh/tests/docker-compose.yml b/dvc_ssh/tests/docker-compose.yml
index ec5bcb0..ceb1895 100644
--- a/dvc_ssh/tests/docker-compose.yml
+++ b/dvc_ssh/tests/docker-compose.yml
@@ -4,7 +4,9 @@ services:
   openssh-server:
     image: ghcr.io/linuxserver/openssh-server
     environment:
+      - PASSWORD_ACCESS=true
       - USER_NAME=user
+      - USER_PASSWORD=password
       - PUBLIC_KEY_FILE=/tmp/key
     ports:
       - 2222
diff --git a/dvc_ssh/tests/test_client.py b/dvc_ssh/tests/test_client.py
new file mode 100644
index 0000000..aabb9eb
--- /dev/null
+++ b/dvc_ssh/tests/test_client.py
@@ -0,0 +1,43 @@
+from types import SimpleNamespace
+
+import pytest
+
+import dvc_ssh.client
+from dvc_ssh import SSHFileSystem
+from dvc_ssh.client import InteractiveSSHClient
+from dvc_ssh.tests.cloud import TEST_SSH_PASSWORD, TEST_SSH_USER
+
+
+@pytest.mark.parametrize(
+    "password,expected",
+    [("secret", NotImplemented), (None, "")],
+)
+def test_kbdint_auth_requested(password, expected):
+    client = InteractiveSSHClient()
+    client._conn = SimpleNamespace(_options=SimpleNamespace(password=password))
+
+    result = client.kbdint_auth_requested()
+
+    if expected is NotImplemented:
+        assert result is NotImplemented
+    else:
+        assert result == expected
+
+
+def test_password_auth_uses_configured_password(ssh_server, monkeypatch, tmp_path):
+    monkeypatch.setenv("HOME", str(tmp_path))
+    monkeypatch.delenv("SSH_AUTH_SOCK", raising=False)
+
+    async def fail_getpass(*args, **kwargs):
+        raise AssertionError("_getpass should not be called")
+
+    monkeypatch.setattr(dvc_ssh.client, "_getpass", fail_getpass)
+
+    fs = SSHFileSystem(
+        host=ssh_server["host"],
+        port=ssh_server["port"],
+        user=TEST_SSH_USER,
+        password=TEST_SSH_PASSWORD,
+    )
+
+    assert fs.exists("/tmp")