diff --git a/ghost/admin/app/adapters/base.js b/ghost/admin/app/adapters/base.js
index ac7dbec947..3225efbb59 100644
--- a/ghost/admin/app/adapters/base.js
+++ b/ghost/admin/app/adapters/base.js
@@ -46,7 +46,6 @@ export default RESTAdapter.extend(DataAdapterMixin, {
         if (status === 401) {
             if (this.get('session.isAuthenticated')) {
                 this.get('session').invalidate();
-                return; // prevent error from bubbling because invalidate is async
             }
         }
 
diff --git a/ghost/admin/app/components/modals/delete-post.js b/ghost/admin/app/components/modals/delete-post.js
index 8ce18b7351..903d3fddb3 100644
--- a/ghost/admin/app/components/modals/delete-post.js
+++ b/ghost/admin/app/components/modals/delete-post.js
@@ -29,8 +29,8 @@ export default ModalComponent.extend({
         this.get('routing').transitionTo('posts');
     },
 
-    _failure() {
-        this.get('notifications').showAlert('Your post could not be deleted. Please try again.', {type: 'error', key: 'post.delete.failed'});
+    _failure(error) {
+        this.get('notifications').showAPIError(error, {key: 'post.delete.failed'});
     },
 
     actions: {
@@ -39,8 +39,8 @@ export default ModalComponent.extend({
 
             this._deletePost().then(() => {
                 this._success();
-            }, () => {
-                this._failure();
+            }, (error) => {
+                this._failure(error);
             }).finally(() => {
                 this.send('closeModal');
             });
diff --git a/ghost/admin/app/components/modals/invite-new-user.js b/ghost/admin/app/components/modals/invite-new-user.js
index 61c6dc8e5f..06984c2c67 100644
--- a/ghost/admin/app/components/modals/invite-new-user.js
+++ b/ghost/admin/app/components/modals/invite-new-user.js
@@ -1,6 +1,6 @@
 import RSVP from 'rsvp';
 import injectService from 'ember-service/inject';
-import {A as emberA, isEmberArray} from 'ember-array/utils';
+import {A as emberA} from 'ember-array/utils';
 import run from 'ember-runloop';
 import ModalComponent from 'ghost-admin/components/modals/base';
 import ValidationEngine from 'ghost-admin/mixins/validation-engine';
@@ -111,13 +111,9 @@ export default ModalComponent.extend(ValidationEngine, {
                     } else {
                         notifications.showNotification(notificationText, {key: 'invite.send.success'});
                     }
-                }).catch((errors) => {
+                }).catch((error) => {
                     newUser.deleteRecord();
-                    if (isEmberArray(errors)) {
-                        notifications.showErrors(errors, {key: 'invite.send'});
-                    } else {
-                        notifications.showAPIError(errors, {key: 'invite.send'});
-                    }
+                    notifications.showAPIError(error, {key: 'invite.send'});
                 }).finally(() => {
                     this.send('closeModal');
                 });
diff --git a/ghost/admin/app/controllers/post-settings-menu.js b/ghost/admin/app/controllers/post-settings-menu.js
index 8ebad097ca..9aed6a6619 100644
--- a/ghost/admin/app/controllers/post-settings-menu.js
+++ b/ghost/admin/app/controllers/post-settings-menu.js
@@ -185,11 +185,8 @@ export default Controller.extend(SettingsMenuMixin, {
     }),
 
     showErrors(errors) {
-        if (isVersionMismatchError(errors)) {
-            return this.get('notifications').showAPIError(errors);
-        }
         errors = isEmberArray(errors) ? errors : [errors];
-        this.get('notifications').showErrors(errors);
+        this.get('notifications').showAPIError(errors);
     },
 
     actions: {
diff --git a/ghost/admin/app/controllers/settings/apps/slack.js b/ghost/admin/app/controllers/settings/apps/slack.js
index 1ee3e18ea1..3a4c65324b 100644
--- a/ghost/admin/app/controllers/settings/apps/slack.js
+++ b/ghost/admin/app/controllers/settings/apps/slack.js
@@ -61,9 +61,7 @@ export default Controller.extend({
                 this.set('isSaving', true);
 
                 return settings.save().catch((err) => {
-                    if (err && err.isAdapterError) {
-                        this.get('notifications').showAPIError(err);
-                    }
+                    this.get('notifications').showAPIError(err);
                     throw err;
                 }).finally(() => {
                     this.set('isSaving', false);
diff --git a/ghost/admin/app/controllers/team/user.js b/ghost/admin/app/controllers/team/user.js
index aa343c95dd..24787f7b8f 100644
--- a/ghost/admin/app/controllers/team/user.js
+++ b/ghost/admin/app/controllers/team/user.js
@@ -12,6 +12,7 @@ import { invoke } from 'ember-invoke-action';
 
 export default Controller.extend({
     submitting: false,
+    updatingPassword: false,
     lastPromise: null,
     showDeleteUserModal: false,
     showTransferOwnerModal: false,
@@ -140,13 +141,12 @@ export default Controller.extend({
                 this.get('notifications').closeAlerts('user.update');
 
                 return model;
-            }).catch((errors) => {
-                if (isEmberArray(errors)) {
-                    this.get('notifications').showErrors(errors, {key: 'user.update'});
-                } else {
-                    this.get('notifications').showAPIError(errors);
+            }).catch((error) => {
+                // validation engine returns undefined so we have to check
+                // before treating the failure as an API error
+                if (error) {
+                    this.get('notifications').showAPIError(error, {key: 'user.update'});
                 }
-
                 this.toggleProperty('submitting');
             });
 
@@ -168,11 +168,13 @@ export default Controller.extend({
             }
         },
 
-        password() {
+        changePassword() {
             let user = this.get('user');
 
-            if (user.get('isPasswordValid')) {
-                user.saveNewPassword().then((model) => {
+            if (!this.get('updatingPassword')) {
+                this.set('updatingPassword', true);
+
+                return user.saveNewPassword().then((model) => {
                     // Clear properties from view
                     user.setProperties({
                         password: '',
@@ -180,15 +182,22 @@ export default Controller.extend({
                         ne2Password: ''
                     });
 
-                    this.get('notifications').showAlert('Password updated.', {type: 'success', key: 'user.change-password.success'});
+                    this.get('notifications').showNotification('Password updated.', {type: 'success', key: 'user.change-password.success'});
+
+                    // clear errors manually for ne2password because validation
+                    // engine only clears the "validated proeprty"
+                    // TODO: clean up once we have a better validations library
+                    user.get('errors').remove('ne2Password');
 
                     return model;
-                }).catch((errors) => {
-                    this.get('notifications').showAPIError(errors, {key: 'user.change-password'});
+                }).catch((error) => {
+                    // error will be undefined if we have a validation error
+                    if (error) {
+                        this.get('notifications').showAPIError(error, {key: 'user.change-password'});
+                    }
+                }).finally(() => {
+                    this.set('updatingPassword', false);
                 });
-            } else {
-                // TODO: switch to in-line validation
-                this.get('notifications').showErrors(user.get('passwordValidationErrors'), {key: 'user.change-password'});
             }
         },
 
@@ -419,6 +428,26 @@ export default Controller.extend({
 
         toggleUploadImageModal() {
             this.toggleProperty('showUploadImageModal');
+        },
+
+        // TODO: remove those mutation actions once we have better
+        // inline validations that auto-clear errors on input
+        updatePassword(password) {
+            this.set('user.password', password);
+            this.get('user.hasValidated').removeObject('password');
+            this.get('user.errors').remove('password');
+        },
+
+        updateNewPassword(password) {
+            this.set('user.newPassword', password);
+            this.get('user.hasValidated').removeObject('newPassword');
+            this.get('user.errors').remove('newPassword');
+        },
+
+        updateNe2Password(password) {
+            this.set('user.ne2Password', password);
+            this.get('user.hasValidated').removeObject('ne2Password');
+            this.get('user.errors').remove('ne2Password');
         }
     }
 });
diff --git a/ghost/admin/app/mirage/config.js b/ghost/admin/app/mirage/config.js
index 3b504a0cce..e79ff78bf8 100644
--- a/ghost/admin/app/mirage/config.js
+++ b/ghost/admin/app/mirage/config.js
@@ -472,12 +472,19 @@ export function testConfig() {
 
     this.put('/users/:id/', function (db, request) {
         let {id} = request.params;
-        let [attrs] = JSON.parse(request.requestBody).users;
-        let record = db.users.update(id, attrs);
 
-        return {
-            user: record
-        };
+        if (id === 'password') {
+            return {
+                password: [{message: 'Password changed successfully.'}]
+            };
+        } else {
+            let [attrs] = JSON.parse(request.requestBody).users;
+            let record = db.users.update(id, attrs);
+
+            return {
+                user: record
+            };
+        }
     });
 
     /* External sites ------------------------------------------------------- */
diff --git a/ghost/admin/app/models/user.js b/ghost/admin/app/models/user.js
index 8643abe85f..ded203b62c 100644
--- a/ghost/admin/app/models/user.js
+++ b/ghost/admin/app/models/user.js
@@ -1,10 +1,9 @@
 /* jscs:disable requireCamelCaseOrUpperCaseIdentifiers */
-import computed, {equal, empty} from 'ember-computed';
-import injectService from 'ember-service/inject';
-
 import Model from 'ember-data/model';
 import attr from 'ember-data/attr';
-import { hasMany } from 'ember-data/relationships';
+import {hasMany} from 'ember-data/relationships';
+import computed, {equal} from 'ember-computed';
+import injectService from 'ember-service/inject';
 import ValidationEngine from 'ghost-admin/mixins/validation-engine';
 
 export default Model.extend(ValidationEngine, {
@@ -39,6 +38,7 @@ export default Model.extend(ValidationEngine, {
 
     ghostPaths: injectService(),
     ajax: injectService(),
+    session: injectService(),
 
     // TODO: Once client-side permissions are in place,
     // remove the hard role check.
@@ -47,7 +47,9 @@ export default Model.extend(ValidationEngine, {
     isAdmin: equal('role.name', 'Administrator'),
     isOwner: equal('role.name', 'Owner'),
 
-    isPasswordValid: empty('passwordValidationErrors.[]'),
+    isLoggedIn: computed('id', 'session.user.id', function () {
+        return this.get('id') === this.get('session.user.id');
+    }),
 
     active: computed('status', function () {
         return ['active', 'warn-1', 'warn-2', 'warn-3', 'warn-4', 'locked'].indexOf(this.get('status')) > -1;
@@ -59,20 +61,6 @@ export default Model.extend(ValidationEngine, {
 
     pending: equal('status', 'invited-pending'),
 
-    passwordValidationErrors: computed('password', 'newPassword', 'ne2Password', function () {
-        let validationErrors = [];
-
-        if (!validator.equals(this.get('newPassword'), this.get('ne2Password'))) {
-            validationErrors.push({message: 'Your new passwords do not match'});
-        }
-
-        if (!validator.isLength(this.get('newPassword'), 8)) {
-            validationErrors.push({message: 'Your password is not long enough. It must be at least 8 characters long.'});
-        }
-
-        return validationErrors;
-    }),
-
     role: computed('roles', {
         get() {
             return this.get('roles.firstObject');
@@ -88,16 +76,19 @@ export default Model.extend(ValidationEngine, {
 
     saveNewPassword() {
         let url = this.get('ghostPaths.url').api('users', 'password');
+        let validation = this.get('isLoggedIn') ? 'ownPasswordChange' : 'passwordChange';
 
-        return this.get('ajax').put(url, {
-            data: {
-                password: [{
-                    user_id: this.get('id'),
-                    oldPassword: this.get('password'),
-                    newPassword: this.get('newPassword'),
-                    ne2Password: this.get('ne2Password')
-                }]
-            }
+        return this.validate({property: validation}).then(() => {
+            return this.get('ajax').put(url, {
+                data: {
+                    password: [{
+                        user_id: this.get('id'),
+                        oldPassword: this.get('password'),
+                        newPassword: this.get('newPassword'),
+                        ne2Password: this.get('ne2Password')
+                    }]
+                }
+            });
         });
     },
 
diff --git a/ghost/admin/app/services/ajax.js b/ghost/admin/app/services/ajax.js
index ccc93f819f..c5e38e2d3d 100644
--- a/ghost/admin/app/services/ajax.js
+++ b/ghost/admin/app/services/ajax.js
@@ -26,8 +26,22 @@ export function isVersionMismatchError(errorOrStatus, payload) {
 
 /* Request entity too large error */
 
+export function ServerUnreachableError(errors) {
+    AjaxError.call(this, errors, 'Server was unreachable');
+}
+
+ServerUnreachableError.prototype = Object.create(AjaxError.prototype);
+
+export function isServerUnreachableError(error) {
+    if (isAjaxError(error)) {
+        return error instanceof ServerUnreachableError;
+    } else {
+        return error === 0 || error === '0';
+    }
+}
+
 export function RequestEntityTooLargeError(errors) {
-    AjaxError.call(this, errors, 'Request was rejected because it\'s larger than the maximum file size the server allows');
+    AjaxError.call(this, errors, 'Request is larger than the maximum file size the server allows');
 }
 
 RequestEntityTooLargeError.prototype = Object.create(AjaxError.prototype);
@@ -43,7 +57,7 @@ export function isRequestEntityTooLargeError(errorOrStatus) {
 /* Unsupported media type error */
 
 export function UnsupportedMediaTypeError(errors) {
-    AjaxError.call(this, errors, 'Request was rejected because it contains an unknown or unsupported file type.');
+    AjaxError.call(this, errors, 'Request contains an unknown or unsupported file type.');
 }
 
 UnsupportedMediaTypeError.prototype = Object.create(AjaxError.prototype);
@@ -79,6 +93,8 @@ export default AjaxService.extend({
     handleResponse(status, headers, payload) {
         if (this.isVersionMismatchError(status, headers, payload)) {
             return new VersionMismatchError(payload.errors);
+        } else if (this.isServerUnreachableError(status, headers, payload)) {
+            return new ServerUnreachableError(payload.errors);
         } else if (this.isRequestEntityTooLargeError(status, headers, payload)) {
             return new RequestEntityTooLargeError(payload.errors);
         } else if (this.isUnsupportedMediaTypeError(status, headers, payload)) {
@@ -110,6 +126,10 @@ export default AjaxService.extend({
         return isVersionMismatchError(status, payload);
     },
 
+    isServerUnreachableError(status/*, headers, payload */) {
+        return isServerUnreachableError(status);
+    },
+
     isRequestEntityTooLargeError(status/*, headers, payload */) {
         return isRequestEntityTooLargeError(status);
     },
diff --git a/ghost/admin/app/services/notifications.js b/ghost/admin/app/services/notifications.js
index 399137b875..e7078719d3 100644
--- a/ghost/admin/app/services/notifications.js
+++ b/ghost/admin/app/services/notifications.js
@@ -5,6 +5,8 @@ import get from 'ember-metal/get';
 import set from 'ember-metal/set';
 import injectService from 'ember-service/inject';
 import {isVersionMismatchError} from 'ghost-admin/services/ajax';
+import {isBlank} from 'ember-utils';
+import {dasherize} from 'ember-string';
 
 // Notification keys take the form of "noun.verb.message", eg:
 //
@@ -82,25 +84,6 @@ export default Service.extend({
         }, options.delayed);
     },
 
-    // TODO: review whether this can be removed once no longer used by validations
-    showErrors(errors, options) {
-        options = options || {};
-        options.type = options.type || 'error';
-        // TODO: getting keys from the server would be useful here (necessary for i18n)
-        options.key = (options.key && `${options.key}.api-error`) || 'api-error';
-
-        if (!options.doNotCloseNotifications) {
-            this.closeNotifications();
-        }
-
-        // ensure all errors that are passed in get shown
-        options.doNotCloseNotifications = true;
-
-        for (let i = 0; i < errors.length; i += 1) {
-            this.showNotification(errors[i].message || errors[i], options);
-        }
-    },
-
     showAPIError(resp, options) {
         // handle "global" errors
         if (isVersionMismatchError(resp)) {
@@ -120,24 +103,26 @@ export default Service.extend({
     _showAPIError(resp, options) {
         options = options || {};
         options.type = options.type || 'error';
-        // TODO: getting keys from the server would be useful here (necessary for i18n)
-        options.key = (options.key && `${options.key}.api-error`) || 'api-error';
 
-        if (!options.doNotCloseNotifications) {
-            this.closeNotifications();
+        // if possible use the title to get a unique key
+        // - we only show one alert for each key so if we get multiple errors
+        //   only the last one will be shown
+        if (!options.key && !isBlank(get(resp, 'title'))) {
+            options.key = dasherize(get(resp, 'title'));
+        }
+        options.key = ['api-error', options.key].compact().join('.');
+
+        let msg = options.defaultErrorText || 'There was a problem on the server, please try again.';
+
+        if (resp instanceof String) {
+            msg = resp;
+        } else if (!isBlank(get(resp, 'detail'))) {
+            msg = resp.detail;
+        } else if (!isBlank(get(resp, 'message'))) {
+            msg = resp.message;
         }
 
-        options.defaultErrorText = options.defaultErrorText || 'There was a problem on the server, please try again.';
-
-        if (resp && isEmberArray(resp) && resp.length) { // Array of errors
-            this.showErrors(resp, options);
-        } else if (resp && resp.message) {
-            this.showAlert(resp.message, options);
-        } else if (resp && resp.detail) { // ember-ajax provided error message
-            this.showAlert(resp.detail, options);
-        } else { // text error or no error
-            this.showAlert(resp || options.defaultErrorText, options);
-        }
+        this.showAlert(msg, options);
     },
 
     displayDelayed() {
diff --git a/ghost/admin/app/templates/team/user.hbs b/ghost/admin/app/templates/team/user.hbs
index d256a21ad4..2a4db7f341 100644
--- a/ghost/admin/app/templates/team/user.hbs
+++ b/ghost/admin/app/templates/team/user.hbs
@@ -171,24 +171,27 @@
             {{#unless isAdminUserOnOwnerProfile}}
                 <fieldset>
                     {{#unless isNotOwnProfile}}
-                    <div class="form-group">
-                        <label for="user-password-old">Old Password</label>
-                        {{gh-input user.password type="password" id="user-password-old" update=(action (mut user.password))}}
-                    </div>
+                        {{#gh-form-group errors=user.errors hasValidated=user.hasValidated property="password"}}
+                            <label for="user-password-old">Old Password</label>
+                            {{gh-input value=user.password type="password" id="user-password-old" update=(action 'updatePassword') onenter=(action "changePassword")}}
+                            {{gh-error-message errors=user.errors property="password"}}
+                        {{/gh-form-group}}
                     {{/unless}}
 
-                    <div class="form-group">
+                    {{#gh-form-group errors=user.errors hasValidated=user.hasValidated property="newPassword"}}
                         <label for="user-password-new">New Password</label>
-                        {{gh-input user.newPassword type="password" id="user-password-new" update=(action (mut user.newPassword))}}
-                    </div>
+                        {{gh-input user.newPassword type="password" id="user-password-new" update=(action 'updateNewPassword') onenter=(action "changePassword")}}
+                        {{gh-error-message errors=user.errors property="newPassword"}}
+                    {{/gh-form-group}}
 
-                    <div class="form-group">
+                    {{#gh-form-group errors=user.errors hasValidated=user.hasValidated property="ne2Password"}}
                         <label for="user-new-password-verification">Verify Password</label>
-                        {{gh-input user.ne2Password type="password" id="user-new-password-verification" update=(action (mut user.ne2Password))}}
-                    </div>
+                        {{gh-input user.ne2Password type="password" id="user-new-password-verification" update=(action 'updateNe2Password') onenter=(action "changePassword")}}
+                        {{gh-error-message errors=user.errors property="ne2Password"}}
+                    {{/gh-form-group}}
 
                     <div class="form-group">
-                        <button type="button" class="btn btn-red button-change-password" {{action "password"}}>Change Password</button>
+                        {{#gh-spin-button class="btn btn-red button-change-password" action=(action "changePassword") submitting=updatingPassword}}Change Password{{/gh-spin-button}}
                     </div>
                 </fieldset>
             {{/unless}}
diff --git a/ghost/admin/app/utils/ajax.js b/ghost/admin/app/utils/ajax.js
deleted file mode 100644
index bb01e4527f..0000000000
--- a/ghost/admin/app/utils/ajax.js
+++ /dev/null
@@ -1,47 +0,0 @@
-import {isEmberArray} from 'ember-array/utils';
-
-// TODO: this should be removed and instead have our app serializer properly
-// process the response so that errors can be tied to the model
-
-// Used in API request fail handlers to parse a standard api error
-// response json for the message to display
-export default function getRequestErrorMessage(request, performConcat) {
-    let message,
-        msgDetail;
-
-    // Can't really continue without a request
-    if (!request) {
-        return null;
-    }
-
-    // Seems like a sensible default
-    message = request.statusText;
-
-    // If a non 200 response
-    if (request.status !== 200) {
-        try {
-            // Try to parse out the error, or default to 'Unknown'
-            if (request.errors && isEmberArray(request.errors)) {
-                message = request.errors.map((errorItem) => {
-                    return errorItem.message;
-                });
-            } else {
-                message =  request.error || 'Unknown Error';
-            }
-        } catch (e) {
-            msgDetail = request.status ? `${request.status} - ${request.statusText}` : 'Server was not available';
-            message = `The server returned an error (${msgDetail}).`;
-        }
-    }
-
-    if (performConcat && isEmberArray(message)) {
-        message = message.join('<br />');
-    }
-
-    // return an array of errors by default
-    if (!performConcat && typeof message === 'string') {
-        message = [message];
-    }
-
-    return message;
-}
diff --git a/ghost/admin/app/validators/user.js b/ghost/admin/app/validators/user.js
index 0d89a9ec65..cc74c32297 100644
--- a/ghost/admin/app/validators/user.js
+++ b/ghost/admin/app/validators/user.js
@@ -1,4 +1,5 @@
 import BaseValidator from './base';
+import {isBlank} from 'ember-utils';
 
 export default BaseValidator.create({
     properties: ['name', 'bio', 'email', 'location', 'website', 'roles'],
@@ -77,5 +78,45 @@ export default BaseValidator.create({
                 this.invalidate();
             }
         }
+    },
+
+    passwordChange(model) {
+        let newPassword = model.get('newPassword');
+        let ne2Password = model.get('ne2Password');
+
+        // validation only marks the requested property as validated so we
+        // have to add properties manually
+        model.get('hasValidated').addObject('newPassword');
+        model.get('hasValidated').addObject('ne2Password');
+
+        if (isBlank(newPassword) && isBlank(ne2Password)) {
+            model.get('errors').add('newPassword', 'Sorry, passwords can\'t be blank');
+            this.invalidate();
+        } else {
+            if (!validator.equals(newPassword, ne2Password)) {
+                model.get('errors').add('ne2Password', 'Your new passwords do not match');
+                this.invalidate();
+            }
+
+            if (!validator.isLength(newPassword, 8)) {
+                model.get('errors').add('newPassword', 'Your password must be at least 8 characters long.');
+                this.invalidate();
+            }
+        }
+    },
+
+    ownPasswordChange(model) {
+        let oldPassword = model.get('password');
+
+        this.passwordChange(model);
+
+        // validation only marks the requested property as validated so we
+        // have to add properties manually
+        model.get('hasValidated').addObject('password');
+
+        if (isBlank(oldPassword)) {
+            model.get('errors').add('password', 'Your current password is required to set a new one');
+            this.invalidate();
+        }
     }
 });
diff --git a/ghost/admin/tests/acceptance/team-test.js b/ghost/admin/tests/acceptance/team-test.js
index 0946c805f2..be3df5d5b3 100644
--- a/ghost/admin/tests/acceptance/team-test.js
+++ b/ghost/admin/tests/acceptance/team-test.js
@@ -11,6 +11,7 @@ import destroyApp from '../helpers/destroy-app';
 import { invalidateSession, authenticateSession } from 'ghost-admin/tests/helpers/ember-simple-auth';
 import { errorOverride, errorReset } from 'ghost-admin/tests/helpers/adapter-error';
 import Mirage from 'ember-cli-mirage';
+import $ from 'jquery';
 
 describe('Acceptance: Team', function () {
     let application;
@@ -61,9 +62,11 @@ describe('Acceptance: Team', function () {
     });
 
     describe('when logged in', function () {
+        let admin;
+
         beforeEach(function () {
             let role = server.create('role', {name: 'Admininstrator'});
-            let user = server.create('user', {roles: [role]});
+            admin = server.create('user', {roles: [role]});
 
             server.loadFixtures();
 
@@ -238,7 +241,7 @@ describe('Acceptance: Team', function () {
             let user;
 
             beforeEach(function () {
-                server.create('user', {
+                user = server.create('user', {
                     slug: 'test-1',
                     name: 'Test User',
                     facebook: 'test',
@@ -456,6 +459,133 @@ describe('Acceptance: Team', function () {
                 andThen(() => {
                     expect(find('.user-details-bottom .form-group:nth-of-type(7)').hasClass('error'), 'bio input should be in error state').to.be.true;
                 });
+
+                // password reset ------
+
+                // button triggers validation
+                click('.button-change-password');
+
+                andThen(() => {
+                    expect(
+                        find('#user-password-new').closest('.form-group').hasClass('error'),
+                        'new password has error class when blank'
+                    ).to.be.true;
+
+                    expect(
+                        find('#user-password-new').siblings('.response').text(),
+                        'new password error when blank'
+                    ).to.match(/can't be blank/);
+                });
+
+                // typing in inputs clears validation
+                fillIn('#user-password-new', 'password');
+                triggerEvent('#user-password-new', 'input');
+
+                andThen(() => {
+                    expect(
+                        find('#user-password-new').closest('.form-group').hasClass('error'),
+                        'password validation is visible after typing'
+                    ).to.be.false;
+                });
+
+                // enter key triggers action
+                keyEvent('#user-password-new', 'keyup', 13);
+
+                andThen(() => {
+                    expect(
+                        find('#user-new-password-verification').closest('.form-group').hasClass('error'),
+                        'confirm password has error class when it doesn\'t match'
+                    ).to.be.true;
+
+                    expect(
+                        find('#user-new-password-verification').siblings('.response').text(),
+                        'confirm password error when it doesn\'t match'
+                    ).to.match(/do not match/);
+                });
+
+                // submits with correct details
+                fillIn('#user-new-password-verification', 'password');
+                click('.button-change-password');
+
+                andThen(() => {
+                    // hits the endpoint
+                    let [lastRequest] = server.pretender.handledRequests.slice(-1);
+                    let params = $.deparam(lastRequest.requestBody);
+
+                    expect(lastRequest.url, 'password request URL')
+                        .to.match(/\/users\/password/);
+
+                    /* jscs:disable requireCamelCaseOrUpperCaseIdentifiers */
+                    expect(params.password[0].user_id).to.equal(user.id.toString());
+                    expect(params.password[0].newPassword).to.equal('password');
+                    expect(params.password[0].ne2Password).to.equal('password');
+                    /* jscs:enable requireCamelCaseOrUpperCaseIdentifiers */
+
+                    // clears the fields
+                    expect(
+                        find('#user-password-new').val(),
+                        'password field after submit'
+                    ).to.be.blank;
+
+                    expect(
+                        find('#user-new-password-verification').val(),
+                        'password verification field after submit'
+                    ).to.be.blank;
+
+                    // displays a notification
+                    expect(
+                        find('.gh-notifications .gh-notification').length,
+                        'password saved notification is displayed'
+                    ).to.equal(1);
+                });
+            });
+        });
+
+        describe('own user', function () {
+            beforeEach(function () {
+                server.loadFixtures();
+            });
+
+            it('requires current password when changing password', function () {
+                visit(`/team/${admin.slug}`);
+
+                // test the "old password" field is validated
+                click('.button-change-password');
+
+                andThen(() => {
+                    // old password has error
+                    expect(
+                        find('#user-password-old').closest('.form-group').hasClass('error'),
+                        'old password has error class when blank'
+                    ).to.be.true;
+
+                    expect(
+                        find('#user-password-old').siblings('.response').text(),
+                        'old password error when blank'
+                    ).to.match(/is required/);
+
+                    // new password has error
+                    expect(
+                        find('#user-password-new').closest('.form-group').hasClass('error'),
+                        'new password has error class when blank'
+                    ).to.be.true;
+
+                    expect(
+                        find('#user-password-new').siblings('.response').text(),
+                        'new password error when blank'
+                    ).to.match(/can't be blank/);
+                });
+
+                // validation is cleared when typing
+                fillIn('#user-password-old', 'password');
+                triggerEvent('#user-password-old', 'input');
+
+                andThen(() => {
+                    expect(
+                        find('#user-password-old').closest('.form-group').hasClass('error'),
+                        'old password validation is in error state after typing'
+                    ).to.be.false;
+                });
             });
         });
 
diff --git a/ghost/admin/tests/unit/services/notifications-test.js b/ghost/admin/tests/unit/services/notifications-test.js
index 73bad6459e..a2a5dda049 100644
--- a/ghost/admin/tests/unit/services/notifications-test.js
+++ b/ghost/admin/tests/unit/services/notifications-test.js
@@ -10,6 +10,7 @@ import {
     it
 } from 'ember-mocha';
 import {AjaxError, InvalidError} from 'ember-ajax/errors';
+import {ServerUnreachableError} from 'ghost-admin/services/ajax';
 
 describeModule(
     'service:notifications',
@@ -149,23 +150,6 @@ describeModule(
             expect(notifications.get('notifications.length')).to.equal(2);
         });
 
-        // TODO: review whether this can be removed once it's no longer used by validations
-        it('#showErrors adds multiple notifications', function () {
-            let notifications = this.subject();
-
-            run(() => {
-                notifications.showErrors([
-                    {message: 'First'},
-                    {message: 'Second'}
-                ]);
-            });
-
-            expect(notifications.get('notifications')).to.deep.equal([
-                {message: 'First', status: 'notification', type: 'error', key: undefined},
-                {message: 'Second', status: 'notification', type: 'error', key: undefined}
-            ]);
-        });
-
         it('#showAPIError handles single json response error', function () {
             let notifications = this.subject();
             let error = new AjaxError([{message: 'Single error'}]);
@@ -181,24 +165,21 @@ describeModule(
             expect(get(alert, 'key')).to.equal('api-error');
         });
 
-        // TODO: update once we have unique api key handling
         it('#showAPIError handles multiple json response errors', function () {
             let notifications = this.subject();
             let error = new AjaxError([
-                {message: 'First error'},
-                {message: 'Second error'}
+                {title: 'First error', message: 'First error message'},
+                {title: 'Second error', message: 'Second error message'}
             ]);
 
             run(() => {
                 notifications.showAPIError(error);
             });
 
-            // First error is removed due to duplicate api-key
-            let alert = notifications.get('alerts.firstObject');
-            expect(get(alert, 'message')).to.equal('Second error');
-            expect(get(alert, 'status')).to.equal('alert');
-            expect(get(alert, 'type')).to.equal('error');
-            expect(get(alert, 'key')).to.equal('api-error');
+            expect(notifications.get('alerts.length')).to.equal(2);
+            let [alert1, alert2] = notifications.get('alerts');
+            expect(alert1).to.deep.equal({message: 'First error message', status: 'alert', type: 'error', key: 'api-error.first-error'});
+            expect(alert2).to.deep.equal({message: 'Second error message', status: 'alert', type: 'error', key: 'api-error.second-error'});
         });
 
         it('#showAPIError displays default error text if response has no error/message', function () {
@@ -228,7 +209,7 @@ describeModule(
                 notifications.showAPIError('Test', {key: 'test.alert'});
             });
 
-            expect(notifications.get('alerts.firstObject.key')).to.equal('test.alert.api-error');
+            expect(notifications.get('alerts.firstObject.key')).to.equal('api-error.test.alert');
         });
 
         it('#showAPIError sets correct key when not passed a key', function () {
@@ -241,19 +222,34 @@ describeModule(
             expect(notifications.get('alerts.firstObject.key')).to.equal('api-error');
         });
 
-        it('#showAPIError parses errors from ember-ajax correctly', function () {
+        it('#showAPIError parses default ember-ajax errors correctly', function () {
             let notifications = this.subject();
-            let error = new InvalidError([{message: 'Test Error'}]);
+            let error = new InvalidError();
 
             run(() => {
                 notifications.showAPIError(error);
             });
 
             let notification = notifications.get('alerts.firstObject');
-            expect(get(notification, 'message')).to.equal('Test Error');
+            expect(get(notification, 'message')).to.equal('Request was rejected because it was invalid');
             expect(get(notification, 'status')).to.equal('alert');
             expect(get(notification, 'type')).to.equal('error');
-            expect(get(notification, 'key')).to.equal('api-error');
+            expect(get(notification, 'key')).to.equal('api-error.ajax-error');
+        });
+
+        it('#showAPIError parses custom ember-ajax errors correctly', function () {
+            let notifications = this.subject();
+            let error = new ServerUnreachableError();
+
+            run(() => {
+                notifications.showAPIError(error);
+            });
+
+            let notification = notifications.get('alerts.firstObject');
+            expect(get(notification, 'message')).to.equal('Server was unreachable');
+            expect(get(notification, 'status')).to.equal('alert');
+            expect(get(notification, 'type')).to.equal('error');
+            expect(get(notification, 'key')).to.equal('api-error.ajax-error');
         });
 
         it('#displayDelayed moves delayed notifications into content', function () {