diff --git a/packages/nocodb-nest/src/modules/auth/auth.service.ts b/packages/nocodb-nest/src/modules/auth/auth.service.ts
index c9f300ec2a..7b9e626f54 100644
--- a/packages/nocodb-nest/src/modules/auth/auth.service.ts
+++ b/packages/nocodb-nest/src/modules/auth/auth.service.ts
@@ -2,7 +2,6 @@ import { promisify } from 'util';
 import { OrgUserRoles } from 'nocodb-sdk';
 import { Injectable } from '@nestjs/common';
 import * as bcrypt from 'bcryptjs';
-import { JwtService } from '@nestjs/jwt';
 
 import { v4 as uuidv4 } from 'uuid';
 import Noco from '../../Noco'
@@ -22,11 +21,11 @@ export class AuthService {
   async validateUser(email: string, pass: string): Promise<any> {
     const user = await this.usersService.findOne(email);
     if (user) {
-      const { password, ...result } = user;
+      const { password, salt, ...result } = user;
 
       const hashedPassword = await promisify(bcrypt.hash)(password, user.salt);
-      if (user.password !== hashedPassword) {
-        return user;
+      if (user.password === hashedPassword) {
+        return result;
       }
     }
     return null;
diff --git a/packages/nocodb-nest/src/strategies/local.strategy.ts b/packages/nocodb-nest/src/strategies/local.strategy.ts
index 69489cd460..2b61aadcb4 100644
--- a/packages/nocodb-nest/src/strategies/local.strategy.ts
+++ b/packages/nocodb-nest/src/strategies/local.strategy.ts
@@ -1,8 +1,9 @@
 import { Strategy } from 'passport-local';
 import { PassportStrategy } from '@nestjs/passport';
-import { Injectable, UnauthorizedException } from '@nestjs/common';
+import { Injectable } from '@nestjs/common';
 import { AuthService } from '../modules/auth/auth.service';
 import extractRolesObj from '../utils/extractRolesObj';
+import { NcError } from '../../../nocodb/src/lib/meta/helpers/catchError';
 
 @Injectable()
 export class LocalStrategy extends PassportStrategy(Strategy) {
@@ -15,9 +16,11 @@ export class LocalStrategy extends PassportStrategy(Strategy) {
 
   async validate(username: string, password: string): Promise<any> {
     const user = await this.authService.validateUser(username, password);
+
     if (!user) {
-      throw new UnauthorizedException();
+      NcError.badRequest('Invalid credentials')
     }
+
     user.roles = extractRolesObj(user.roles);
 
     return user;
diff --git a/packages/nocodb-nest/tests/unit/init/index.ts b/packages/nocodb-nest/tests/unit/init/index.ts
index 5006736485..5081543ed7 100644
--- a/packages/nocodb-nest/tests/unit/init/index.ts
+++ b/packages/nocodb-nest/tests/unit/init/index.ts
@@ -1,10 +1,9 @@
-
 import express from 'express';
-import nocobuild from '../../../src/nocobuild'
+import nocobuild from '../../../src/nocobuild';
 // import { Noco } from '../../../src/lib';
-import cleanupMeta from './cleanupMeta';
-import {cleanUpSakila, resetAndSeedSakila} from './cleanupSakila';
 import { createUser } from '../factory/user';
+import cleanupMeta from './cleanupMeta';
+import { cleanUpSakila, resetAndSeedSakila } from './cleanupSakila';
 
 let server;
 
@@ -12,22 +11,22 @@ const serverInit = async () => {
   const serverInstance = express();
   serverInstance.enable('trust proxy');
   // serverInstance.use(await Noco.init());
-  await nocobuild(serverInstance)
-  serverInstance.use(function(req, res, next){
+  await nocobuild(serverInstance);
+  serverInstance.use(function (req, res, next) {
     // 50 sec timeout
-    req.setTimeout(500000, function(){
-        console.log('Request has timed out.');
-        res.send(408);
+    req.setTimeout(500000, function () {
+      console.log('Request has timed out.');
+      res.send(408);
     });
     next();
-});
+  });
   return serverInstance;
 };
 
-const isFirstTimeRun = () => !server
+const isFirstTimeRun = () => !server;
 
 export default async function () {
-  const {default: TestDbMngr} = await import('../TestDbMngr');
+  const { default: TestDbMngr } = await import('../TestDbMngr');
 
   if (isFirstTimeRun()) {
     await resetAndSeedSakila();
@@ -39,5 +38,10 @@ export default async function () {
 
   const { token } = await createUser({ app: server }, { roles: 'editor' });
 
-  return { app: server, token, dbConfig: TestDbMngr.dbConfig, sakilaDbConfig: TestDbMngr.getSakilaDbConfig() };
+  return {
+    app: server,
+    token,
+    dbConfig: TestDbMngr.dbConfig,
+    sakilaDbConfig: TestDbMngr.getSakilaDbConfig(),
+  };
 }
diff --git a/packages/nocodb-nest/tests/unit/rest/tests/auth.test.ts b/packages/nocodb-nest/tests/unit/rest/tests/auth.test.ts
index eb0deae67e..ecc26b2ecc 100644
--- a/packages/nocodb-nest/tests/unit/rest/tests/auth.test.ts
+++ b/packages/nocodb-nest/tests/unit/rest/tests/auth.test.ts
@@ -56,7 +56,7 @@ function authTests() {
       .expect(400);
   });
 
-  it('Signin with valid credentials', async () => {
+  it.only('Signin with valid credentials', async () => {
     const response = await request(context.app)
       .post('/api/v1/auth/user/signin')
       .send({
@@ -68,19 +68,19 @@ function authTests() {
     expect(token).to.be.a('string');
   });
 
-  it('Signup without email and password', async () => {
+  it('Signin without email and password', async () => {
     await request(context.app)
       .post('/api/v1/auth/user/signin')
       // pass empty data in await request
       .send({})
-      .expect(400);
+      .expect(400)
   });
 
   it('Signin with invalid credentials', async () => {
     await request(context.app)
       .post('/api/v1/auth/user/signin')
       .send({ email: 'abc@abc.com', password: defaultUserArgs.password })
-      .expect(400);
+      .expect(400)
   });
 
   it('Signin with invalid password', async () => {