diff --git a/src/Options/index.js b/src/Options/index.js
index d8f56defca..7973f65029 100644
--- a/src/Options/index.js
+++ b/src/Options/index.js
@@ -688,7 +688,7 @@ export interface PasswordPolicyOptions {
   /* Set a callback function to validate a password to be accepted.
   <br><br>
   If used in combination with `validatorPattern`, the password must pass both to be accepted. */
-  validatorCallback: ?() => void;
+  validatorCallback: ?(password: string) => boolean;
   /* Set the error message to be sent.
   <br><br>
   Default is `Password does not meet the Password Policy requirements.` */
diff --git a/types/Options/index.d.ts b/types/Options/index.d.ts
index 6a8b1494ac..8c353eb191 100644
--- a/types/Options/index.d.ts
+++ b/types/Options/index.d.ts
@@ -226,7 +226,7 @@ export interface AccountLockoutOptions {
 }
 export interface PasswordPolicyOptions {
     validatorPattern?: string;
-    validatorCallback?: () => void;
+    validatorCallback?: (password: string) => boolean;
     validationError?: string;
     doNotAllowUsername?: boolean;
     maxPasswordAge?: number;
diff --git a/types/tests.ts b/types/tests.ts
index 15593963f8..320be31d40 100644
--- a/types/tests.ts
+++ b/types/tests.ts
@@ -36,6 +36,21 @@ async function server() {
 
   // $ExpectType ParseServer
   await parseServer2.start();
+
+  // passwordPolicy.validatorCallback accepts (password: string) => boolean
+  // $ExpectType ParseServer
+  await ParseServer.startApp({
+    passwordPolicy: {
+      validatorCallback: (password: string): boolean => password !== 'badpw',
+    },
+  });
+
+  await ParseServer.startApp({
+    passwordPolicy: {
+      // $ExpectError
+      validatorCallback: (password: string): string => password,
+    },
+  });
 }
 
 function exports() {