diff --git a/README.md b/README.md
index d95dbd7ef0..7295402ea5 100644
--- a/README.md
+++ b/README.md
@@ -288,6 +288,7 @@ var server = ParseServer({
     validatorCallback: (password) => { return validatePassword(password) }, 
     doNotAllowUsername: true, // optional setting to disallow username in passwords
     maxPasswordAge: 90, // optional setting in days for password expiry. Login fails if user does not reset the password within this period after signup/last reset. 
+    maxPasswordHistory: 5, // optional setting to prevent reuse of previous n passwords. Maximum value that can be specified is 20. Not specifying it or specifying 0 will not enforce history.
     //optional setting to set a validity duration for password reset links (in seconds)
     resetTokenValidityDuration: 24*60*60, // expire after 24 hours
   }
diff --git a/spec/PasswordPolicy.spec.js b/spec/PasswordPolicy.spec.js
index 028ead228b..4f385821ae 100644
--- a/spec/PasswordPolicy.spec.js
+++ b/spec/PasswordPolicy.spec.js
@@ -1010,4 +1010,242 @@ describe("Password Policy: ", () => {
     });
   });
 
+  it('should fail if passwordPolicy.maxPasswordHistory is not a number', done => {
+    reconfigureServer({
+      appName: 'passwordPolicy',
+      passwordPolicy: {
+        maxPasswordHistory: "not a number"
+      },
+      publicServerURL: "http://localhost:8378/1"
+    }).then(() => {
+      fail('passwordPolicy.maxPasswordHistory "not a number" test failed');
+      done();
+    }).catch(err => {
+      expect(err).toEqual('passwordPolicy.maxPasswordHistory must be an integer ranging 0 - 20');
+      done();
+    });
+  });
+
+  it('should fail if passwordPolicy.maxPasswordHistory is a negative number', done => {
+    reconfigureServer({
+      appName: 'passwordPolicy',
+      passwordPolicy: {
+        maxPasswordHistory: -10
+      },
+      publicServerURL: "http://localhost:8378/1"
+    }).then(() => {
+      fail('passwordPolicy.maxPasswordHistory negative number test failed');
+      done();
+    }).catch(err => {
+      expect(err).toEqual('passwordPolicy.maxPasswordHistory must be an integer ranging 0 - 20');
+      done();
+    });
+  });
+
+  it('should fail if passwordPolicy.maxPasswordHistory is greater than 20', done => {
+    reconfigureServer({
+      appName: 'passwordPolicy',
+      passwordPolicy: {
+        maxPasswordHistory: 21
+      },
+      publicServerURL: "http://localhost:8378/1"
+    }).then(() => {
+      fail('passwordPolicy.maxPasswordHistory negative number test failed');
+      done();
+    }).catch(err => {
+      expect(err).toEqual('passwordPolicy.maxPasswordHistory must be an integer ranging 0 - 20');
+      done();
+    });
+  });
+
+  it('should fail to reset if the new password is same as the last password', done => {
+    const user = new Parse.User();
+    const emailAdapter = {
+      sendVerificationEmail: () => Promise.resolve(),
+      sendPasswordResetEmail: options => {
+        requestp.get({
+          uri: options.link,
+          followRedirect: false,
+          simple: false,
+          resolveWithFullResponse: true
+        }).then(response => {
+          expect(response.statusCode).toEqual(302);
+          const re = /http:\/\/localhost:8378\/1\/apps\/choose_password\?token=([a-zA-Z0-9]+)\&id=test\&username=user1/;
+          const match = response.body.match(re);
+          if (!match) {
+            fail("should have a token");
+            return Promise.reject("Invalid password link");
+          }
+          return Promise.resolve(match[1]); // token
+        }).then(token => {
+          return new Promise((resolve, reject) => {
+            requestp.post({
+              uri: "http://localhost:8378/1/apps/test/request_password_reset",
+              body: `new_password=user1&token=${token}&username=user1`,
+              headers: {
+                'Content-Type': 'application/x-www-form-urlencoded'
+              },
+              followRedirect: false,
+              simple: false,
+              resolveWithFullResponse: true
+            }).then(response => {
+              resolve([response, token]);
+            }).catch(error => {
+              reject(error);
+            });
+          });
+        }).then(data => {
+          const response = data[0];
+          const token = data[1];
+          expect(response.statusCode).toEqual(302);
+          expect(response.body).toEqual(`Found. Redirecting to http://localhost:8378/1/apps/choose_password?username=user1&token=${token}&id=test&error=New%20password%20should%20not%20be%20the%20same%20as%20last%201%20passwords.&app=passwordPolicy`);
+          done();
+          return Promise.resolve();
+        }).catch(error => {
+          jfail(error);
+          fail("Repeat password test failed");
+          done();
+        });
+      },
+      sendMail: () => {
+      }
+    };
+    reconfigureServer({
+      appName: 'passwordPolicy',
+      verifyUserEmails: false,
+      emailAdapter: emailAdapter,
+      passwordPolicy: {
+        maxPasswordHistory: 1
+      },
+      publicServerURL: "http://localhost:8378/1"
+    }).then(() => {
+      user.setUsername("user1");
+      user.setPassword("user1");
+      user.set('email', 'user1@parse.com');
+      user.signUp().then(() => {
+        return Parse.User.logOut();
+      }).then(() => {
+        return Parse.User.requestPasswordReset('user1@parse.com');
+      }).catch(error => {
+        jfail(error);
+        fail("SignUp or reset request failed");
+        done();
+      });
+    });
+  });
+
+
+  it('should fail if the new password is same as the previous one', done => {
+    const user = new Parse.User();
+
+    reconfigureServer({
+      appName: 'passwordPolicy',
+      verifyUserEmails: false,
+      passwordPolicy: {
+        maxPasswordHistory: 5
+      },
+      publicServerURL: "http://localhost:8378/1"
+    }).then(() => {
+      user.setUsername("user1");
+      user.setPassword("user1");
+      user.set('email', 'user1@parse.com');
+      user.signUp().then(() => {
+        // try to set the same password as the previous one
+        user.setPassword('user1');
+        return user.save();
+      }).then(() => {
+        fail("should have failed because the new password is same as the old");
+        done();
+      }).catch(error => {
+        expect(error.message).toEqual('New password should not be the same as last 5 passwords.');
+        expect(error.code).toEqual(Parse.Error.VALIDATION_ERROR);
+        done();
+      });
+    });
+  });
+
+  it('should fail if the new password is same as the 5th oldest one and policy does not allow the previous 5', done => {
+    const user = new Parse.User();
+
+    reconfigureServer({
+      appName: 'passwordPolicy',
+      verifyUserEmails: false,
+      passwordPolicy: {
+        maxPasswordHistory: 5
+      },
+      publicServerURL: "http://localhost:8378/1"
+    }).then(() => {
+      user.setUsername("user1");
+      user.setPassword("user1");
+      user.set('email', 'user1@parse.com');
+      user.signUp().then(() => {
+        // build history
+        user.setPassword('user2');
+        return user.save();
+      }).then(() => {
+        user.setPassword('user3');
+        return user.save();
+      }).then(() => {
+        user.setPassword('user4');
+        return user.save();
+      }).then(() => {
+        user.setPassword('user5');
+        return user.save();
+      }).then(() => {
+        // set the same password as the initial one
+        user.setPassword('user1');
+        return user.save();
+      }).then(() => {
+        fail("should have failed because the new password is same as the old");
+        done();
+      }).catch(error => {
+        expect(error.message).toEqual('New password should not be the same as last 5 passwords.');
+        expect(error.code).toEqual(Parse.Error.VALIDATION_ERROR);
+        done();
+      });
+    });
+  });
+
+  it('should succeed if the new password is same as the 6th oldest one and policy does not allow only previous 5', done => {
+    const user = new Parse.User();
+
+    reconfigureServer({
+      appName: 'passwordPolicy',
+      verifyUserEmails: false,
+      passwordPolicy: {
+        maxPasswordHistory: 5
+      },
+      publicServerURL: "http://localhost:8378/1"
+    }).then(() => {
+      user.setUsername("user1");
+      user.setPassword("user1");
+      user.set('email', 'user1@parse.com');
+      user.signUp().then(() => {
+        // build history
+        user.setPassword('user2');
+        return user.save();
+      }).then(() => {
+        user.setPassword('user3');
+        return user.save();
+      }).then(() => {
+        user.setPassword('user4');
+        return user.save();
+      }).then(() => {
+        user.setPassword('user5');
+        return user.save();
+      }).then(() => {
+        user.setPassword('user6'); // this pushes initial password out of history
+        return user.save();
+      }).then(() => {
+        // set the same password as the initial one
+        user.setPassword('user1');
+        return user.save();
+      }).then(() => {
+        done();
+      }).catch(() => {
+        fail("should have succeeded because the new password is not in history");
+        done();
+      });
+    });
+  });
 })
diff --git a/src/Adapters/Storage/Mongo/MongoTransform.js b/src/Adapters/Storage/Mongo/MongoTransform.js
index 14a6972e68..dd45f3dd57 100644
--- a/src/Adapters/Storage/Mongo/MongoTransform.js
+++ b/src/Adapters/Storage/Mongo/MongoTransform.js
@@ -787,6 +787,7 @@ const mongoObjectToParseObject = (className, mongoObject, schema) => {
       case '_email_verify_token_expires_at':
       case '_account_lockout_expires_at':
       case '_failed_login_count':
+      case '_password_history':
         // Those keys will be deleted if needed in the DB Controller
         restObject[key] = mongoObject[key];
         break;
diff --git a/src/Adapters/Storage/Postgres/PostgresStorageAdapter.js b/src/Adapters/Storage/Postgres/PostgresStorageAdapter.js
index ee5760fcc6..3135c71ea6 100644
--- a/src/Adapters/Storage/Postgres/PostgresStorageAdapter.js
+++ b/src/Adapters/Storage/Postgres/PostgresStorageAdapter.js
@@ -108,6 +108,7 @@ const toPostgresSchema = (schema) => {
   schema.fields._rperm = {type: 'Array', contents: {type: 'String'}}
   if (schema.className === '_User') {
     schema.fields._hashed_password = {type: 'String'};
+    schema.fields._password_history = {type: 'Array'};
   }
   return schema;
 }
@@ -471,6 +472,7 @@ export class PostgresStorageAdapter {
       fields._perishable_token = {type: 'String'};
       fields._perishable_token_expires_at = {type: 'Date'};
       fields._password_changed_at = {type: 'Date'};
+      fields._password_history = { type: 'Array'};
     }
     let index = 2;
     let relations = [];
@@ -683,7 +685,8 @@ export class PostgresStorageAdapter {
       if (!schema.fields[fieldName] && className === '_User') {
         if (fieldName === '_email_verify_token' ||
             fieldName === '_failed_login_count' ||
-            fieldName === '_perishable_token') {
+            fieldName === '_perishable_token' ||
+            fieldName === '_password_history'){
           valuesArray.push(object[fieldName]);
         }
 
diff --git a/src/Config.js b/src/Config.js
index d2fa2726e9..a7d9de9d79 100644
--- a/src/Config.js
+++ b/src/Config.js
@@ -138,6 +138,10 @@ export class Config {
       if(passwordPolicy.doNotAllowUsername && typeof passwordPolicy.doNotAllowUsername !== 'boolean') {
         throw 'passwordPolicy.doNotAllowUsername must be a boolean value.';
       }
+
+      if (passwordPolicy.maxPasswordHistory && (!Number.isInteger(passwordPolicy.maxPasswordHistory) || passwordPolicy.maxPasswordHistory <= 0 || passwordPolicy.maxPasswordHistory > 20)) {
+        throw 'passwordPolicy.maxPasswordHistory must be an integer ranging 0 - 20';
+      }
     }
   }
 
diff --git a/src/Controllers/DatabaseController.js b/src/Controllers/DatabaseController.js
index 4acbefa393..1cd3157efe 100644
--- a/src/Controllers/DatabaseController.js
+++ b/src/Controllers/DatabaseController.js
@@ -190,7 +190,7 @@ const filterSensitiveData = (isMaster, aclGroup, className, object) => {
 //   acl:  a list of strings. If the object to be updated has an ACL,
 //         one of the provided strings must provide the caller with
 //         write permissions.
-const specialKeysForUpdate = ['_hashed_password', '_perishable_token', '_email_verify_token', '_email_verify_token_expires_at', '_account_lockout_expires_at', '_failed_login_count', '_perishable_token_expires_at', '_password_changed_at'];
+const specialKeysForUpdate = ['_hashed_password', '_perishable_token', '_email_verify_token', '_email_verify_token_expires_at', '_account_lockout_expires_at', '_failed_login_count', '_perishable_token_expires_at', '_password_changed_at', '_password_history'];
 
 const isSpecialUpdateKey = key => {
   return specialKeysForUpdate.indexOf(key) >= 0;
diff --git a/src/RestWrite.js b/src/RestWrite.js
index 0d0bcf0ac1..e94b5d771d 100644
--- a/src/RestWrite.js
+++ b/src/RestWrite.js
@@ -343,61 +343,31 @@ RestWrite.prototype.handleAuthData = function(authData) {
 
 // The non-third-party parts of User transformation
 RestWrite.prototype.transformUser = function() {
+  var promise = Promise.resolve();
+
   if (this.className !== '_User') {
-    return;
+    return promise;
   }
 
-  var promise = Promise.resolve();
-
   if (this.query) {
     // If we're updating a _User object, we need to clear out the cache for that user. Find all their
     // session tokens, and remove them from the cache.
-    promise = new RestQuery(this.config, Auth.master(this.config), '_Session', { user: {
-      __type: "Pointer",
-      className: "_User",
-      objectId: this.objectId(),
-    }}).execute()
-    .then(results => {
-      results.results.forEach(session => this.config.cacheController.user.del(session.sessionToken));
-    });
+    promise = new RestQuery(this.config, Auth.master(this.config), '_Session', {
+      user: {
+        __type: "Pointer",
+        className: "_User",
+        objectId: this.objectId(),
+      }
+    }).execute()
+      .then(results => {
+        results.results.forEach(session => this.config.cacheController.user.del(session.sessionToken));
+      });
   }
 
   return promise.then(() => {
     // Transform the password
     if (!this.data.password) {
-      return;
-    }
-
-    let defer = Promise.resolve();
-
-    // check if the password conforms to the defined password policy if configured
-    if (this.config.passwordPolicy) {
-      const policyError = 'Password does not meet the Password Policy requirements.';
-
-      // check whether the password conforms to the policy
-      if (this.config.passwordPolicy.patternValidator && !this.config.passwordPolicy.patternValidator(this.data.password) ||
-          this.config.passwordPolicy.validatorCallback && !this.config.passwordPolicy.validatorCallback(this.data.password)) {
-        return Promise.reject(new Parse.Error(Parse.Error.VALIDATION_ERROR, policyError));
-      }
-
-      // check whether password contain username
-      if (this.config.passwordPolicy.doNotAllowUsername === true) {
-        if (this.data.username) { // username is not passed during password reset
-          if (this.data.password.indexOf(this.data.username) >= 0)
-            return Promise.reject(new Parse.Error(Parse.Error.VALIDATION_ERROR, policyError));
-
-        } else { // retrieve the User object using objectId during password reset
-          defer = this.config.database.find('_User', {objectId: this.objectId()})
-            .then(results => {
-              if (results.length != 1) {
-                throw undefined;
-              }
-              if (this.data.password.indexOf(results[0].username) >= 0)
-                return Promise.reject(new Parse.Error(Parse.Error.VALIDATION_ERROR, policyError));
-              return Promise.resolve();
-            });
-        }
-      }
+      return Promise.resolve();
     }
 
     if (this.query && !this.auth.isMaster) {
@@ -405,7 +375,7 @@ RestWrite.prototype.transformUser = function() {
       this.storage['generateNewSession'] = true;
     }
 
-    return defer.then(() => {
+    return this._validatePasswordPolicy().then(() => {
       return passwordCrypto.hash(this.data.password).then((hashedPassword) => {
         this.data._hashed_password = hashedPassword;
         delete this.data.password;
@@ -413,51 +383,130 @@ RestWrite.prototype.transformUser = function() {
     });
 
   }).then(() => {
-    // Check for username uniqueness
-    if (!this.data.username) {
-      if (!this.query) {
-        this.data.username = cryptoUtils.randomString(25);
-        this.responseShouldHaveUsername = true;
-      }
-      return;
+    return this._validateUserName();
+  }).then(() => {
+    return this._validateEmail();
+  });
+};
+
+RestWrite.prototype._validateUserName = function () {
+  // Check for username uniqueness
+  if (!this.data.username) {
+    if (!this.query) {
+      this.data.username = cryptoUtils.randomString(25);
+      this.responseShouldHaveUsername = true;
     }
-    // We need to a find to check for duplicate username in case they are missing the unique index on usernames
-    // TODO: Check if there is a unique index, and if so, skip this query.
-    return this.config.database.find(
-      this.className,
-      { username: this.data.username, objectId: {'$ne': this.objectId()} },
-      { limit: 1 }
-    )
-    .then(results => {
-      if (results.length > 0) {
-        throw new Parse.Error(Parse.Error.USERNAME_TAKEN, 'Account already exists for this username.');
-      }
-      return;
-    });
-  })
-  .then(() => {
-    if (!this.data.email || this.data.email.__op === 'Delete') {
-      return;
+    return Promise.resolve();
+  }
+  // We need to a find to check for duplicate username in case they are missing the unique index on usernames
+  // TODO: Check if there is a unique index, and if so, skip this query.
+  return this.config.database.find(
+    this.className,
+    {username: this.data.username, objectId: {'$ne': this.objectId()}},
+    {limit: 1}
+  ).then(results => {
+    if (results.length > 0) {
+      throw new Parse.Error(Parse.Error.USERNAME_TAKEN, 'Account already exists for this username.');
+    }
+    return;
+  });
+};
+
+RestWrite.prototype._validateEmail = function() {
+  if (!this.data.email || this.data.email.__op === 'Delete') {
+    return Promise.resolve();
+  }
+  // Validate basic email address format
+  if (!this.data.email.match(/^.+@.+$/)) {
+    return Promise.reject(new Parse.Error(Parse.Error.INVALID_EMAIL_ADDRESS, 'Email address format is invalid.'));
+  }
+  // Same problem for email as above for username
+  return this.config.database.find(
+    this.className,
+    {email: this.data.email, objectId: {'$ne': this.objectId()}},
+    {limit: 1}
+  ).then(results => {
+    if (results.length > 0) {
+      throw new Parse.Error(Parse.Error.EMAIL_TAKEN, 'Account already exists for this email address.');
     }
-    // Validate basic email address format
-    if (!this.data.email.match(/^.+@.+$/)) {
-      throw new Parse.Error(Parse.Error.INVALID_EMAIL_ADDRESS, 'Email address format is invalid.');
+    // We updated the email, send a new validation
+    this.storage['sendVerificationEmail'] = true;
+    this.config.userController.setEmailVerifyToken(this.data);
+  });
+};
+
+RestWrite.prototype._validatePasswordPolicy = function() {
+  if (!this.config.passwordPolicy)
+    return Promise.resolve();
+  return this._validatePasswordRequirements().then(() => {
+    return this._validatePasswordHistory();
+  });
+};
+
+
+RestWrite.prototype._validatePasswordRequirements = function() {
+  // check if the password conforms to the defined password policy if configured
+  const policyError = 'Password does not meet the Password Policy requirements.';
+
+  // check whether the password meets the password strength requirements
+  if (this.config.passwordPolicy.patternValidator && !this.config.passwordPolicy.patternValidator(this.data.password) ||
+    this.config.passwordPolicy.validatorCallback && !this.config.passwordPolicy.validatorCallback(this.data.password)) {
+    return Promise.reject(new Parse.Error(Parse.Error.VALIDATION_ERROR, policyError));
+  }
+
+  // check whether password contain username
+  if (this.config.passwordPolicy.doNotAllowUsername === true) {
+    if (this.data.username) { // username is not passed during password reset
+      if (this.data.password.indexOf(this.data.username) >= 0)
+        return Promise.reject(new Parse.Error(Parse.Error.VALIDATION_ERROR, policyError));
+    } else { // retrieve the User object using objectId during password reset
+      return this.config.database.find('_User', {objectId: this.objectId()})
+        .then(results => {
+          if (results.length != 1) {
+            throw undefined;
+          }
+          if (this.data.password.indexOf(results[0].username) >= 0)
+            return Promise.reject(new Parse.Error(Parse.Error.VALIDATION_ERROR, policyError));
+          return Promise.resolve();
+        });
     }
-    // Same problem for email as above for username
-    return this.config.database.find(
-      this.className,
-      { email: this.data.email, objectId: {'$ne': this.objectId()} },
-      { limit: 1 }
-    )
-    .then(results => {
-      if (results.length > 0) {
-        throw new Parse.Error(Parse.Error.EMAIL_TAKEN, 'Account already exists for this email address.');
-      }
-      // We updated the email, send a new validation
-      this.storage['sendVerificationEmail'] = true;
-      this.config.userController.setEmailVerifyToken(this.data);
-    });
-  })
+  }
+  return Promise.resolve();
+};
+
+RestWrite.prototype._validatePasswordHistory = function() {
+  // check whether password is repeating from specified history
+  if (this.query && this.config.passwordPolicy.maxPasswordHistory) {
+    return this.config.database.find('_User', {objectId: this.objectId()}, {keys: ["_password_history", "_hashed_password"]})
+      .then(results => {
+        if (results.length != 1) {
+          throw undefined;
+        }
+        const user = results[0];
+        let oldPasswords = [];
+        if (user._password_history)
+          oldPasswords = _.take(user._password_history, this.config.passwordPolicy.maxPasswordHistory - 1);
+        oldPasswords.push(user.password);
+        const newPassword = this.data.password;
+        // compare the new password hash with all old password hashes
+        let promises = oldPasswords.map(function (hash) {
+          return passwordCrypto.compare(newPassword, hash).then((result) => {
+            if (result) // reject if there is a match
+              return Promise.reject("REPEAT_PASSWORD");
+            return Promise.resolve();
+          })
+        });
+        // wait for all comparisons to complete
+        return Promise.all(promises).then(() => {
+          return Promise.resolve();
+        }).catch(err => {
+          if (err === "REPEAT_PASSWORD") // a match was found
+            return Promise.reject(new Parse.Error(Parse.Error.VALIDATION_ERROR, `New password should not be the same as last ${this.config.passwordPolicy.maxPasswordHistory} passwords.`));
+          throw err;
+        });
+      });
+  }
+  return Promise.resolve();
 };
 
 RestWrite.prototype.createSessionTokenIfNeeded = function() {
@@ -851,12 +900,35 @@ RestWrite.prototype.runDatabaseOperation = function() {
     // Ignore createdAt when update
     delete this.data.createdAt;
 
-    // Run an update
-    return this.config.database.update(this.className, this.query, this.data, this.runOptions)
-    .then(response => {
-      response.updatedAt = this.updatedAt;
-      this._updateResponseWithData(response, this.data);
-      this.response = { response };
+    let defer = Promise.resolve();
+    // if password history is enabled then save the current password to history
+    if (this.className === '_User' && this.data._hashed_password && this.config.passwordPolicy && this.config.passwordPolicy.maxPasswordHistory) {
+      defer = this.config.database.find('_User', {objectId: this.objectId()}, {keys: ["_password_history", "_hashed_password"]}).then(results => {
+        if (results.length != 1) {
+          throw undefined;
+        }
+        const user = results[0];
+        let oldPasswords = [];
+        if (user._password_history) {
+          oldPasswords = _.take(user._password_history, this.config.passwordPolicy.maxPasswordHistory);
+        }
+        //n-1 passwords go into history including last password
+        while (oldPasswords.length > this.config.passwordPolicy.maxPasswordHistory - 2) {
+          oldPasswords.shift();
+        }
+        oldPasswords.push(user.password);
+        this.data._password_history = oldPasswords;
+      });
+    }
+
+    return defer.then(() => {
+      // Run an update
+      return this.config.database.update(this.className, this.query, this.data, this.runOptions)
+      .then(response => {
+        response.updatedAt = this.updatedAt;
+        this._updateResponseWithData(response, this.data);
+        this.response = { response };
+      });
     });
   } else {
     // Set the default ACL and password timestamp for the new _User