--- a/toolkit/components/passwordmgr/nsLoginManagerPrompter.js
+++ b/toolkit/components/passwordmgr/nsLoginManagerPrompter.js
@@ -970,21 +970,26 @@ LoginManagerPrompter.prototype = {
               let toggleBtn = chromeDoc.getElementById("password-notification-visibilityToggle");
 
               if (Services.prefs.getBoolPref("signon.rememberSignons.visibilityToggle")) {
                 toggleBtn.addEventListener("command", onVisibilityToggle);
                 toggleBtn.setAttribute("label", togglePasswordLabel);
                 toggleBtn.setAttribute("accesskey", togglePasswordAccessKey);
                 toggleBtn.setAttribute("hidden", LoginHelper.isMasterPasswordSet());
               }
+              if (this.wasDismissed) {
+                chromeDoc.getElementById("password-notification-visibilityToggle")
+                         .setAttribute("hidden", true);
+              }
               break;
             case "shown":
               writeDataToUI();
               break;
             case "dismissed":
+              this.wasDismissed = true;
               readDataFromUI();
               // Fall through.
             case "removed":
               currentNotification = null;
               chromeDoc.getElementById("password-notification-username")
                        .removeEventListener("input", onInput);
               chromeDoc.getElementById("password-notification-password")
                        .removeEventListener("input", onInput);

--- a/toolkit/components/passwordmgr/test/browser/browser_capture_doorhanger.js
+++ b/toolkit/components/passwordmgr/test/browser/browser_capture_doorhanger.js
@@ -548,10 +548,33 @@ add_task(function* test_recipeCaptureFie
   let login = SpecialPowers.wrap(logins[0]).QueryInterface(Ci.nsILoginMetaInfo);
   is(login.username, "notifyu1", "Check the username unchanged");
   is(login.password, "notifyp1", "Check the password unchanged");
   is(login.timesUsed, 2, "Check times used incremented");
 
   Services.logins.removeAllLogins();
 });
 
+add_task(function* test_noShowPasswordOnDismissal() {
+  info("Check for no Show Password field when the doorhanger is dismissed");
+
+  yield testSubmittingLoginForm("subtst_notifications_1.html", function*(fieldValues) {
+    info("Opening popup");
+    let notif = getCaptureDoorhanger("password-save");
+    let { panel } = PopupNotifications;
+
+    info("Hiding popup.");
+    let promiseHidden = BrowserTestUtils.waitForEvent(panel, "popuphidden");
+    panel.hidePopup();
+    yield promiseHidden;
+
+    info("Clicking on anchor to reshow popup.")
+    let promiseShown = BrowserTestUtils.waitForEvent(panel, "popupshown");
+    notif.anchorElement.click();
+    yield promiseShown;
+
+    let passwordVisiblityToggle = panel.querySelector("#password-notification-visibilityToggle");
+    is(passwordVisiblityToggle.hidden, true, "Check that the Show Password field is Hidden");
+  });
+});
+
 // TODO:
 // * existing login test, form has different password --> change password, no save prompt