diff --git a/package/busybox/busybox.mk b/package/busybox/busybox.mk
index d7eda71db6..446f93c36c 100644
--- a/package/busybox/busybox.mk
+++ b/package/busybox/busybox.mk
@@ -176,6 +176,18 @@ define BUSYBOX_SET_CRYPT_SHA
 endef
 endif
 
+ifeq ($(BR2_TARGET_GENERIC_PASSWD_SHA256),y)
+define BUSYBOX_SET_DEFAULT_PASSWD_ALGO
+	$(call KCONFIG_SET_OPT,CONFIG_FEATURE_DEFAULT_PASSWD_ALGO,"sha256")
+endef
+endif
+
+ifeq ($(BR2_TARGET_GENERIC_PASSWD_SHA512),y)
+define BUSYBOX_SET_DEFAULT_PASSWD_ALGO
+	$(call KCONFIG_SET_OPT,CONFIG_FEATURE_DEFAULT_PASSWD_ALGO,"sha512")
+endef
+endif
+
 ifeq ($(BR2_USE_MMU),y)
 define BUSYBOX_SET_MMU
 	$(call KCONFIG_DISABLE_OPT,CONFIG_NOMMU)
@@ -427,6 +439,7 @@ define BUSYBOX_KCONFIG_FIXUP_CMDS
 	$(BUSYBOX_SET_MDEV)
 	$(BUSYBOX_SET_CRYPT_SHA)
 	$(BUSYBOX_LINUX_PAM)
+	$(BUSYBOX_SET_DEFAULT_PASSWD_ALGO)
 	$(BUSYBOX_SET_INIT)
 	$(BUSYBOX_SET_WATCHDOG)
 	$(BUSYBOX_SET_SELINUX)