diff --git a/apps/files_external/lib/Command/MigrateOc.php b/apps/files_external/lib/Command/MigrateOc.php
index 7f6f36bd10ce8..40aba9bd4a8da 100644
--- a/apps/files_external/lib/Command/MigrateOc.php
+++ b/apps/files_external/lib/Command/MigrateOc.php
@@ -25,31 +25,45 @@
 
 use OC\Core\Command\Base;
 use OCA\Files_External\Lib\Storage\SMB;
+use OCP\DB\QueryBuilder\IQueryBuilder;
+use OCP\IConfig;
 use OCP\IDBConnection;
+use OCP\Security\ICrypto;
+use phpseclib\Crypt\AES;
+use phpseclib\Crypt\Hash;
 use Symfony\Component\Console\Input\InputInterface;
+use Symfony\Component\Console\Input\InputOption;
 use Symfony\Component\Console\Output\OutputInterface;
 
 class MigrateOc extends Base {
 	private IDBConnection $connection;
+	private IConfig $config;
+	private ICrypto $crypto;
 
 	public const ALL = -1;
 
 	public function __construct(
-		IDBConnection $connection
+		IDBConnection $connection,
+		IConfig $config,
+		ICrypto $crypto
 	) {
 		parent::__construct();
 		$this->connection = $connection;
+		$this->config = $config;
+		$this->crypto = $crypto;
 	}
 
 	protected function configure(): void {
 		$this
 			->setName('files_external:migrate-oc')
-			->setDescription('Migrate external storages when moving from ownCloud');
+			->setDescription('Migrate external storages when moving from ownCloud')
+			->addOption("dry-run", null, InputOption::VALUE_NONE, "Don't save any modifications, only try the migration");
 		parent::configure();
 	}
 
 	protected function execute(InputInterface $input, OutputInterface $output): int {
 		$configs = $this->getWndConfigs();
+		$dryRun = $input->getOption('dry-run');
 
 		$output->writeln("Found <info>" . count($configs) . "</info> wnd storages");
 
@@ -76,18 +90,32 @@ protected function execute(InputInterface $input, OutputInterface $output): int
 
 			$storage = new SMB($config);
 			$storageId = $storage->getId();
-			if (!$this->setStorageId($wndStorageId, $storageId)) {
-				$output->writeln("<error>No WMD storage with id $wndStorageId found</error>");
-				return 1;
+			if (!$dryRun) {
+				if (!$this->setStorageId($wndStorageId, $storageId)) {
+					$output->writeln("<error>No WMD storage with id $wndStorageId found</error>");
+					return 1;
+				}
 			}
 		}
 
-		if (count($configs)) {
+		if (count($configs) && !$dryRun) {
 			$this->migrateWndBackend();
 
 			$output->writeln("Successfully migrated");
 		}
 
+		$passwords = $this->getV2StoragePasswords();
+
+		if (count($passwords)) {
+			$output->writeln("Found <info>" . count($passwords) . "</info> stored passwords that need re-encoding");
+			foreach ($passwords as $id => $password) {
+				$decoded = $this->decodePassword($password);
+				if (!$dryRun) {
+					$this->setStorageConfig($id, $this->encryptPassword($decoded));
+				}
+			}
+		}
+
 		return 0;
 	}
 
@@ -121,6 +149,32 @@ private function getWndConfigs(): array {
 		return $configs;
 	}
 
+	/**
+	 * @return array<int, string>
+	 */
+	private function getV2StoragePasswords(): array {
+		$query = $this->connection->getQueryBuilder();
+		$query->select('config_id', 'value')
+			->from('external_config')
+			->where($query->expr()->eq('key', $query->createNamedParameter('password')))
+			->andWhere($query->expr()->like('value', $query->createNamedParameter('v2|%')));
+
+		$rows = $query->executeQuery()->fetchAll();
+		$configs = [];
+		foreach ($rows as $row) {
+			$configs[(int)$row['config_id']] = $row['value'];
+		}
+		return $configs;
+	}
+
+	private function setStorageConfig(int $id, string $value) {
+		$query = $this->connection->getQueryBuilder();
+		$query->update('external_config')
+			->set('value', $query->createNamedParameter($value))
+			->where($query->expr()->eq('config_id', $query->createNamedParameter($id, IQueryBuilder::PARAM_INT)));
+		$query->executeStatement();
+	}
+
 	private function setStorageId(string $old, string $new): bool {
 		$query = $this->connection->getQueryBuilder();
 		$query->update('storages')
@@ -128,4 +182,59 @@ private function setStorageId(string $old, string $new): bool {
 			->where($query->expr()->eq('id', $query->createNamedParameter($old)));
 		return $query->executeStatement() > 0;
 	}
+
+	/**
+	 * Decrypt a password from the ownCloud scheme
+	 *
+	 * @param string $encoded
+	 * @return string
+	 * @throws \Exception
+	 */
+	private function decodePassword(string $encoded): string {
+		if (str_starts_with($encoded, 'v2')) {
+			// see https://github.com/owncloud/core/blob/89c5c364b8fa39b011c89fbfad779b547a333a92/lib/private/Security/Crypto.php#L129
+			$parts = \explode('|', $encoded);
+			$cipher = new AES();
+			$password = $this->config->getSystemValue('secret');
+			$derived = \hash_hkdf('sha512', $password, 0);
+			[$password, $hmacKey] = \str_split($derived, 32);
+			/** @psalm-suppress InternalMethod */
+			$cipher->setPassword($password);
+
+			$ciphertext = \hex2bin($parts[1]);
+			$iv = \hex2bin($parts[2]);
+			$hmac = \hex2bin($parts[3]);
+
+			/** @psalm-suppress InternalMethod */
+			$cipher->setIV($iv);
+
+			if (!\hash_equals($this->calculateHMAC($parts[1] . $iv, $hmacKey), $hmac)) {
+				throw new \Exception('HMAC does not match while attempting to re-encode password.');
+			}
+
+			/** @psalm-suppress InternalMethod */
+			return $cipher->decrypt($ciphertext);
+		} else {
+			return $this->crypto->decrypt($encoded);
+		}
+	}
+
+	private function calculateHMAC($message, $password) {
+		// Append an "a" behind the password and hash it to prevent reusing the same password as for encryption
+		$password = \hash('sha512', $password . 'a');
+
+		$hash = new Hash('sha512');
+		$hash->setKey($password);
+		return $hash->hash($message);
+	}
+
+	/**
+	 * Encrypt a password in the Nextcloud scheme
+	 *
+	 * @param $password
+	 * @return string
+	 */
+	private function encryptPassword($password) {
+		return $this->crypto->encrypt($password);
+	}
 }