diff --git a/nixos/doc/manual/release-notes/rl-2305.section.md b/nixos/doc/manual/release-notes/rl-2305.section.md
index 801cd0c6dc8d..08aba92ffe27 100644
--- a/nixos/doc/manual/release-notes/rl-2305.section.md
+++ b/nixos/doc/manual/release-notes/rl-2305.section.md
@@ -322,3 +322,5 @@ In addition to numerous new and upgraded packages, this release has the followin
 - The option `services.prometheus.exporters.pihole.interval` does not exist anymore and has been removed.
 
 - `k3s` can now be configured with an EnvironmentFile for its systemd service, allowing secrets to be provided without ending up in the Nix Store.
+
+- `boot.initrd.luks.device.<name>` has a new `tryEmptyPassphrase` option, this is useful for OEM's who need to install an encrypted disk with a future settable passphrase
diff --git a/nixos/modules/system/boot/luksroot.nix b/nixos/modules/system/boot/luksroot.nix
index cdb5d8bf3c26..8954c90812f9 100644
--- a/nixos/modules/system/boot/luksroot.nix
+++ b/nixos/modules/system/boot/luksroot.nix
@@ -158,6 +158,20 @@ let
       wait_target "header" ${dev.header} || die "${dev.header} is unavailable"
     ''}
 
+    try_empty_passphrase() {
+        ${if dev.tryEmptyPassphrase then ''
+             echo "Trying empty passphrase!"
+             echo "" | ${csopen}
+             cs_status=$?
+             if [ $cs_status -eq 0 ]; then
+                 return 0
+             else
+                 return 1
+             fi
+        '' else "return 1"}
+    }
+
+
     do_open_passphrase() {
         local passphrase
 
@@ -212,13 +226,27 @@ let
             ${csopen} --key-file=${dev.keyFile} \
               ${optionalString (dev.keyFileSize != null) "--keyfile-size=${toString dev.keyFileSize}"} \
               ${optionalString (dev.keyFileOffset != null) "--keyfile-offset=${toString dev.keyFileOffset}"}
+            cs_status=$?
+            if [ $cs_status -ne 0 ]; then
+              echo "Key File ${dev.keyFile} failed!"
+              if ! try_empty_passphrase; then
+                ${if dev.fallbackToPassword then "echo" else "die"} "${dev.keyFile} is unavailable"
+                echo " - failing back to interactive password prompt"
+                do_open_passphrase
+              fi
+            fi
         else
-            ${if dev.fallbackToPassword then "echo" else "die"} "${dev.keyFile} is unavailable"
-            echo " - failing back to interactive password prompt"
-            do_open_passphrase
+            # If the key file never shows up we should also try the empty passphrase
+            if ! try_empty_passphrase; then
+               ${if dev.fallbackToPassword then "echo" else "die"} "${dev.keyFile} is unavailable"
+               echo " - failing back to interactive password prompt"
+               do_open_passphrase
+            fi
         fi
         '' else ''
-        do_open_passphrase
+           if ! try_empty_passphrase; then
+              do_open_passphrase
+           fi
         ''}
     }
 
@@ -476,6 +504,7 @@ let
   preLVM = filterAttrs (n: v: v.preLVM) luks.devices;
   postLVM = filterAttrs (n: v: !v.preLVM) luks.devices;
 
+
   stage1Crypttab = pkgs.writeText "initrd-crypttab" (lib.concatStringsSep "\n" (lib.mapAttrsToList (n: v: let
     opts = v.crypttabExtraOpts
       ++ optional v.allowDiscards "discard"
@@ -483,6 +512,8 @@ let
       ++ optional (v.header != null) "header=${v.header}"
       ++ optional (v.keyFileOffset != null) "keyfile-offset=${toString v.keyFileOffset}"
       ++ optional (v.keyFileSize != null) "keyfile-size=${toString v.keyFileSize}"
+      ++ optional (v.keyFileTimeout != null) "keyfile-timeout=${builtins.toString v.keyFileTimeout}s"
+      ++ optional (v.tryEmptyPassphrase) "try-empty-password=true"
     ;
   in "${n} ${v.device} ${if v.keyFile == null then "-" else v.keyFile} ${lib.concatStringsSep "," opts}") luks.devices));
 
@@ -594,6 +625,25 @@ in
             '';
           };
 
+          tryEmptyPassphrase = mkOption {
+            default = false;
+            type = types.bool;
+            description = lib.mdDoc ''
+              If keyFile fails then try an empty passphrase first before
+              prompting for password.
+            '';
+          };
+
+          keyFileTimeout = mkOption {
+            default = null;
+            example = 5;
+            type = types.nullOr types.int;
+            description = lib.mdDoc ''
+              The amount of time in seconds for a keyFile to appear before
+              timing out and trying passwords.
+            '';
+          };
+
           keyFileSize = mkOption {
             default = null;
             example = 4096;
@@ -889,6 +939,10 @@ in
           message = "boot.initrd.luks.devices.<name>.bypassWorkqueues is not supported for kernels older than 5.9";
         }
 
+        { assertion = !config.boot.initrd.systemd.enable -> all (x: x.keyFileTimeout == null) (attrValues luks.devices);
+          message = "boot.initrd.luks.devices.<name>.keyFileTimeout is only supported for systemd initrd";
+        }
+
         { assertion = config.boot.initrd.systemd.enable -> all (dev: !dev.fallbackToPassword) (attrValues luks.devices);
           message = "boot.initrd.luks.devices.<name>.fallbackToPassword is implied by systemd stage 1.";
         }
diff --git a/nixos/tests/all-tests.nix b/nixos/tests/all-tests.nix
index ff2549395a0b..b7618aa00109 100644
--- a/nixos/tests/all-tests.nix
+++ b/nixos/tests/all-tests.nix
@@ -311,6 +311,7 @@ in {
   influxdb = handleTest ./influxdb.nix {};
   initrd-network-openvpn = handleTest ./initrd-network-openvpn {};
   initrd-network-ssh = handleTest ./initrd-network-ssh {};
+  initrd-luks-empty-passphrase = handleTest ./initrd-luks-empty-passphrase.nix {};
   initrdNetwork = handleTest ./initrd-network.nix {};
   initrd-secrets = handleTest ./initrd-secrets.nix {};
   initrd-secrets-changing = handleTest ./initrd-secrets-changing.nix {};
@@ -660,6 +661,7 @@ in {
   systemd-initrd-btrfs-raid = handleTest ./systemd-initrd-btrfs-raid.nix {};
   systemd-initrd-luks-fido2 = handleTest ./systemd-initrd-luks-fido2.nix {};
   systemd-initrd-luks-keyfile = handleTest ./systemd-initrd-luks-keyfile.nix {};
+  systemd-initrd-luks-empty-passphrase = handleTest ./initrd-luks-empty-passphrase.nix { systemdStage1 = true; };
   systemd-initrd-luks-password = handleTest ./systemd-initrd-luks-password.nix {};
   systemd-initrd-luks-tpm2 = handleTest ./systemd-initrd-luks-tpm2.nix {};
   systemd-initrd-modprobe = handleTest ./systemd-initrd-modprobe.nix {};
diff --git a/nixos/tests/initrd-luks-empty-passphrase.nix b/nixos/tests/initrd-luks-empty-passphrase.nix
new file mode 100644
index 000000000000..41765a395ec6
--- /dev/null
+++ b/nixos/tests/initrd-luks-empty-passphrase.nix
@@ -0,0 +1,97 @@
+{ system ? builtins.currentSystem
+, config ? {}
+, pkgs ? import ../.. {inherit system config; }
+, systemdStage1 ? false }:
+import ./make-test-python.nix ({ lib, pkgs, ... }: let
+
+  keyfile = pkgs.writeText "luks-keyfile" ''
+    MIGHAoGBAJ4rGTSo/ldyjQypd0kuS7k2OSsmQYzMH6TNj3nQ/vIUjDn7fqa3slt2
+    gV6EK3TmTbGc4tzC1v4SWx2m+2Bjdtn4Fs4wiBwn1lbRdC6i5ZYCqasTWIntWn+6
+    FllUkMD5oqjOR/YcboxG8Z3B5sJuvTP9llsF+gnuveWih9dpbBr7AgEC
+  '';
+
+in {
+  name = "initrd-luks-empty-passphrase";
+
+  nodes.machine = { pkgs, ... }: {
+    virtualisation = {
+      emptyDiskImages = [ 512 ];
+      useBootLoader = true;
+      useEFIBoot = true;
+    };
+
+    boot.loader.systemd-boot.enable = true;
+    boot.initrd.systemd = lib.mkIf systemdStage1 {
+      enable = true;
+      emergencyAccess = true;
+    };
+    environment.systemPackages = with pkgs; [ cryptsetup ];
+
+    specialisation.boot-luks-wrong-keyfile.configuration = {
+      boot.initrd.luks.devices = lib.mkVMOverride {
+        cryptroot = {
+          device = "/dev/vdc";
+          keyFile = "/etc/cryptroot.key";
+          tryEmptyPassphrase = true;
+          fallbackToPassword = !systemdStage1;
+        };
+      };
+      virtualisation.bootDevice = "/dev/mapper/cryptroot";
+      boot.initrd.secrets."/etc/cryptroot.key" = keyfile;
+    };
+
+    specialisation.boot-luks-missing-keyfile.configuration = {
+      boot.initrd.luks.devices = lib.mkVMOverride {
+        cryptroot = {
+          device = "/dev/vdc";
+          keyFile = "/etc/cryptroot.key";
+          tryEmptyPassphrase = true;
+          fallbackToPassword = !systemdStage1;
+        };
+      };
+      virtualisation.bootDevice = "/dev/mapper/cryptroot";
+    };
+  };
+
+  testScript = ''
+    # Encrypt key with empty key so boot should try keyfile and then fallback to empty passphrase
+
+
+    def grub_select_boot_luks_wrong_key_file():
+        """
+        Selects "boot-luks" from the GRUB menu
+        to trigger a login request.
+        """
+        machine.send_monitor_command("sendkey down")
+        machine.send_monitor_command("sendkey down")
+        machine.send_monitor_command("sendkey ret")
+
+    def grub_select_boot_luks_missing_key_file():
+        """
+        Selects "boot-luks" from the GRUB menu
+        to trigger a login request.
+        """
+        machine.send_monitor_command("sendkey down")
+        machine.send_monitor_command("sendkey ret")
+
+    # Create encrypted volume
+    machine.wait_for_unit("multi-user.target")
+    machine.succeed("echo "" | cryptsetup luksFormat /dev/vdc --batch-mode")
+    machine.succeed("bootctl set-default nixos-generation-1-specialisation-boot-luks-wrong-keyfile.conf")
+    machine.succeed("sync")
+    machine.crash()
+
+    # Check if rootfs is on /dev/mapper/cryptroot
+    machine.wait_for_unit("multi-user.target")
+    assert "/dev/mapper/cryptroot on / type ext4" in machine.succeed("mount")
+
+    # Choose boot-luks-missing-keyfile specialisation
+    machine.succeed("bootctl set-default nixos-generation-1-specialisation-boot-luks-missing-keyfile.conf")
+    machine.succeed("sync")
+    machine.crash()
+
+    # Check if rootfs is on /dev/mapper/cryptroot
+    machine.wait_for_unit("multi-user.target")
+    assert "/dev/mapper/cryptroot on / type ext4" in machine.succeed("mount")
+  '';
+})