diff --git a/plugins/woocommerce-blocks/assets/js/blocks/order-confirmation/create-account/edit.tsx b/plugins/woocommerce-blocks/assets/js/blocks/order-confirmation/create-account/edit.tsx
index 5b061b89ea6..e13b6093e8c 100644
--- a/plugins/woocommerce-blocks/assets/js/blocks/order-confirmation/create-account/edit.tsx
+++ b/plugins/woocommerce-blocks/assets/js/blocks/order-confirmation/create-account/edit.tsx
@@ -32,7 +32,9 @@ const defaultTemplate = [
 	],
 	[
 		'core/list',
-		{},
+		{
+			className: 'is-style-checkmark-list',
+		},
 		[
 			[
 				'core/list-item',
diff --git a/plugins/woocommerce-blocks/assets/js/blocks/order-confirmation/create-account/form.tsx b/plugins/woocommerce-blocks/assets/js/blocks/order-confirmation/create-account/form.tsx
index 4d7446443f5..a728c5d72d5 100644
--- a/plugins/woocommerce-blocks/assets/js/blocks/order-confirmation/create-account/form.tsx
+++ b/plugins/woocommerce-blocks/assets/js/blocks/order-confirmation/create-account/form.tsx
@@ -9,6 +9,7 @@ import { PRIVACY_URL, TERMS_URL } from '@woocommerce/block-settings';
 import { ValidatedTextInput } from '@woocommerce/blocks-components';
 import { useSelect } from '@wordpress/data';
 import { VALIDATION_STORE_KEY } from '@woocommerce/block-data';
+import { getSetting } from '@woocommerce/settings';
 
 const termsPageLink = TERMS_URL ? (
 	<a href={ TERMS_URL } target="_blank" rel="noreferrer">
@@ -26,6 +27,67 @@ const privacyPageLink = PRIVACY_URL ? (
 	<span>{ __( 'Privacy Policy', 'woocommerce' ) }</span>
 );
 
+const PasswordField = ( {
+	isLoading,
+	password,
+	setPassword,
+}: {
+	isLoading: boolean;
+	password: string;
+	setPassword: ( password: string ) => void;
+} ) => {
+	const [ passwordStrength, setPasswordStrength ] = useState( 0 );
+
+	return (
+		<div>
+			<ValidatedTextInput
+				disabled={ isLoading }
+				type="password"
+				label={ __( 'Password', 'woocommerce' ) }
+				className={ `wc-block-components-address-form__password` }
+				value={ password }
+				required={ true }
+				errorId={ 'account-password' }
+				customValidityMessage={ (
+					validity: ValidityState
+				): string | undefined => {
+					if (
+						validity.valueMissing ||
+						validity.badInput ||
+						validity.typeMismatch
+					) {
+						return __(
+							'Please enter a valid password',
+							'woocommerce'
+						);
+					}
+				} }
+				customValidation={ ( inputObject ) => {
+					if ( passwordStrength < 2 ) {
+						inputObject.setCustomValidity(
+							__(
+								'Please create a stronger password',
+								'woocommerce'
+							)
+						);
+						return false;
+					}
+					return true;
+				} }
+				onChange={ ( value: string ) => setPassword( value ) }
+				feedback={
+					<PasswordStrengthMeter
+						password={ password }
+						onChange={ ( strength: number ) =>
+							setPasswordStrength( strength )
+						}
+					/>
+				}
+			/>
+		</div>
+	);
+};
+
 const Form = ( {
 	attributes: blockAttributes,
 	isEditor,
@@ -35,7 +97,6 @@ const Form = ( {
 } ) => {
 	const [ isLoading, setIsLoading ] = useState( false );
 	const [ password, setPassword ] = useState( '' );
-	const [ passwordStrength, setPasswordStrength ] = useState( 0 );
 	const hasValidationError = useSelect( ( select ) =>
 		select( VALIDATION_STORE_KEY ).getValidationError( 'account-password' )
 	);
@@ -44,6 +105,13 @@ const Form = ( {
 		( isEditor ? 'customer@email.com' : '' );
 	const nonceToken = blockAttributes?.nonceToken || '';
 
+	// Passwords might not be required based on settings.
+	const registrationGeneratePassword = getSetting(
+		'registrationGeneratePassword',
+		false
+	);
+	const needsPassword = ! registrationGeneratePassword && ! password;
+
 	return (
 		<form
 			className={ 'wc-block-order-confirmation-create-account-form' }
@@ -58,66 +126,29 @@ const Form = ( {
 				setIsLoading( true );
 			} }
 		>
-			<p>
-				{ createInterpolateElement(
-					__( 'Set a password for <email/>', 'woocommerce' ),
-					{
-						email: <strong>{ customerEmail }</strong>,
-					}
-				) }
-			</p>
-			<div>
-				<ValidatedTextInput
-					disabled={ isLoading }
-					type="password"
-					label={ __( 'Password', 'woocommerce' ) }
-					className={ `wc-block-components-address-form__password` }
-					value={ password }
-					required={ true }
-					errorId={ 'account-password' }
-					customValidityMessage={ (
-						validity: ValidityState
-					): string | undefined => {
-						if (
-							validity.valueMissing ||
-							validity.badInput ||
-							validity.typeMismatch
-						) {
-							return __(
-								'Please enter a valid password',
-								'woocommerce'
-							);
-						}
-					} }
-					customValidation={ ( inputObject ) => {
-						if ( passwordStrength < 2 ) {
-							inputObject.setCustomValidity(
-								__(
-									'Please create a stronger password',
-									'woocommerce'
-								)
-							);
-							return false;
-						}
-						return true;
-					} }
-					onChange={ ( value: string ) => setPassword( value ) }
-					feedback={
-						<PasswordStrengthMeter
-							password={ password }
-							onChange={ ( strength: number ) =>
-								setPasswordStrength( strength )
+			{ ! registrationGeneratePassword && (
+				<>
+					<p>
+						{ createInterpolateElement(
+							__( 'Set a password for <email/>', 'woocommerce' ),
+							{
+								email: <strong>{ customerEmail }</strong>,
 							}
-						/>
-					}
-				/>
-			</div>
+						) }
+					</p>
+					<PasswordField
+						isLoading={ isLoading }
+						password={ password }
+						setPassword={ setPassword }
+					/>
+				</>
+			) }
 			<Button
 				className={
 					'wc-block-order-confirmation-create-account-button'
 				}
 				type="submit"
-				disabled={ !! hasValidationError || ! password || isLoading }
+				disabled={ !! hasValidationError || needsPassword || isLoading }
 				showSpinner={ isLoading }
 			>
 				{ __( 'Create account', 'woocommerce' ) }
@@ -126,16 +157,26 @@ const Form = ( {
 			<input type="hidden" name="password" value={ password } />
 			<input type="hidden" name="create-account" value="1" />
 			<input type="hidden" name="_wpnonce" value={ nonceToken } />
-			<p className={ 'wc-block-order-confirmation-create-account-terms' }>
-				{ createInterpolateElement(
-					/* translators: %1$s terms page link, %2$s privacy page link. */
-					__(
-						'By creating an account you agree to our <terms/> and <privacy/>.',
-						'woocommerce'
-					),
-					{ terms: termsPageLink, privacy: privacyPageLink }
+			<div className="wc-block-order-confirmation-create-account-description">
+				{ registrationGeneratePassword && (
+					<p>
+						{ __(
+							"We'll email you a link to set up an account password.",
+							'woocommerce'
+						) }
+					</p>
 				) }
-			</p>
+				<p>
+					{ createInterpolateElement(
+						/* translators: %1$s terms page link, %2$s privacy page link. */
+						__(
+							'By creating an account you agree to our <terms/> and <privacy/>.',
+							'woocommerce'
+						),
+						{ terms: termsPageLink, privacy: privacyPageLink }
+					) }
+				</p>
+			</div>
 		</form>
 	);
 };
diff --git a/plugins/woocommerce-blocks/assets/js/blocks/order-confirmation/create-account/style.scss b/plugins/woocommerce-blocks/assets/js/blocks/order-confirmation/create-account/style.scss
index 8da053ef4e1..77d6d2f0833 100644
--- a/plugins/woocommerce-blocks/assets/js/blocks/order-confirmation/create-account/style.scss
+++ b/plugins/woocommerce-blocks/assets/js/blocks/order-confirmation/create-account/style.scss
@@ -53,13 +53,15 @@
 			padding: 1em;
 		}
 
-		.wc-block-order-confirmation-create-account-terms {
-			@include font-size(small);
-			text-align: center;
+		.wc-block-order-confirmation-create-account-description {
+			p {
+				@include font-size(small);
+				text-align: center;
 
-			a,
-			span {
-				white-space: nowrap;
+				a,
+				span {
+					white-space: nowrap;
+				}
 			}
 		}
 
diff --git a/plugins/woocommerce/changelog/51227-add-delayed-account-creation-send-password-51193 b/plugins/woocommerce/changelog/51227-add-delayed-account-creation-send-password-51193
new file mode 100644
index 00000000000..5698430fbd1
--- /dev/null
+++ b/plugins/woocommerce/changelog/51227-add-delayed-account-creation-send-password-51193
@@ -0,0 +1,4 @@
+Significance: patch
+Type: tweak
+Comment: Delayed account creation: Support option to send password setup link to customer via email.
+
diff --git a/plugins/woocommerce/includes/shortcodes/class-wc-shortcode-my-account.php b/plugins/woocommerce/includes/shortcodes/class-wc-shortcode-my-account.php
index c090b4a52a1..4cdd1c66422 100644
--- a/plugins/woocommerce/includes/shortcodes/class-wc-shortcode-my-account.php
+++ b/plugins/woocommerce/includes/shortcodes/class-wc-shortcode-my-account.php
@@ -358,16 +358,21 @@ class WC_Shortcode_My_Account {
 	/**
 	 * Handles resetting the user's password.
 	 *
+	 * @since 9.4.0 This will log the user in after resetting the password/session.
+	 *
 	 * @param object $user     The user.
 	 * @param string $new_pass New password for the user in plaintext.
 	 */
 	public static function reset_password( $user, $new_pass ) {
+		// phpcs:ignore WooCommerce.Commenting.CommentHooks.MissingHookComment
 		do_action( 'password_reset', $user, $new_pass );
 
 		wp_set_password( $new_pass, $user->ID );
 		update_user_meta( $user->ID, 'default_password_nag', false );
 		self::set_reset_password_cookie();
+		wc_set_customer_auth_cookie( $user->ID );
 
+		// phpcs:ignore WooCommerce.Commenting.CommentHooks.MissingHookComment
 		if ( ! apply_filters( 'woocommerce_disable_password_change_notification', false ) ) {
 			wp_password_change_notification( $user );
 		}
diff --git a/plugins/woocommerce/src/Blocks/BlockTypes/OrderConfirmation/CreateAccount.php b/plugins/woocommerce/src/Blocks/BlockTypes/OrderConfirmation/CreateAccount.php
index 6f355cc02ba..2bdbc8b62ae 100644
--- a/plugins/woocommerce/src/Blocks/BlockTypes/OrderConfirmation/CreateAccount.php
+++ b/plugins/woocommerce/src/Blocks/BlockTypes/OrderConfirmation/CreateAccount.php
@@ -40,7 +40,7 @@ class CreateAccount extends AbstractOrderConfirmationBlock {
 	 * @return \WP_Error|int
 	 */
 	protected function process_form_post( $order ) {
-		if ( ! isset( $_POST['create-account'], $_POST['email'], $_POST['password'], $_POST['_wpnonce'] ) ) {
+		if ( ! isset( $_POST['create-account'], $_POST['email'], $_POST['_wpnonce'] ) ) {
 			return 0;
 		}
 
@@ -49,7 +49,6 @@ class CreateAccount extends AbstractOrderConfirmationBlock {
 		}
 
 		$user_email = sanitize_email( wp_unslash( $_POST['email'] ) );
-		$password   = wp_unslash( $_POST['password'] ); // phpcs:ignore WordPress.Security.ValidatedSanitizedInput.InputNotSanitized
 
 		// Does order already have user?
 		if ( $order->get_customer_id() ) {
@@ -61,8 +60,16 @@ class CreateAccount extends AbstractOrderConfirmationBlock {
 			return new \WP_Error( 'email_mismatch', __( 'The email address provided does not match the email address on this order.', 'woocommerce' ) );
 		}
 
-		if ( empty( $password ) || strlen( $password ) < 8 ) {
-			return new \WP_Error( 'password_too_short', __( 'Password must be at least 8 characters.', 'woocommerce' ) );
+		$generate_password = get_option( 'woocommerce_registration_generate_password', false );
+
+		if ( $generate_password ) {
+			$password = ''; // Will be generated by wc_create_new_customer.
+		} else {
+			$password = wp_unslash( $_POST['password'] ?? '' ); // phpcs:ignore WordPress.Security.ValidatedSanitizedInput.InputNotSanitized
+
+			if ( empty( $password ) || strlen( $password ) < 8 ) {
+				return new \WP_Error( 'password_too_short', __( 'Password must be at least 8 characters.', 'woocommerce' ) );
+			}
 		}
 
 		$customer_id = wc_create_new_customer(
@@ -171,4 +178,17 @@ class CreateAccount extends AbstractOrderConfirmationBlock {
 
 		return $content;
 	}
+
+	/**
+	 * Extra data passed through from server to client for block.
+	 *
+	 * @param array $attributes  Any attributes that currently are available from the block.
+	 *                           Note, this will be empty in the editor context when the block is
+	 *                           not in the post content on editor load.
+	 */
+	protected function enqueue_data( array $attributes = [] ) {
+		parent::enqueue_data( $attributes );
+
+		$this->asset_data_registry->add( 'registrationGeneratePassword', filter_var( get_option( 'woocommerce_registration_generate_password' ), FILTER_VALIDATE_BOOLEAN ) );
+	}
 }