diff --git a/client/landing/stepper/declarative-flow/internals/steps-repository/site-migration-application-password-authorization/components/authorization.tsx b/client/landing/stepper/declarative-flow/internals/steps-repository/site-migration-application-password-authorization/components/authorization.tsx
new file mode 100644
index 00000000000000..f57ac74381624c
--- /dev/null
+++ b/client/landing/stepper/declarative-flow/internals/steps-repository/site-migration-application-password-authorization/components/authorization.tsx
@@ -0,0 +1,60 @@
+import { NextButton } from '@automattic/onboarding';
+import { check, Icon } from '@wordpress/icons';
+import { useTranslate } from 'i18n-calypso';
+
+const AuthorizationBenefits = ( { benefits }: { benefits: string[] } ) => {
+	return (
+		<div className="site-migration-application-password-authorization__benefits">
+			{ benefits.map( ( benefit, index ) => (
+				<div
+					className="site-migration-application-password-authorization__benefits-item"
+					key={ index }
+				>
+					<div className="site-migration-application-password-authorization__benefits-item-icon">
+						<Icon icon={ check } size={ 20 } />
+					</div>
+					<span>{ benefit }</span>
+				</div>
+			) ) }
+		</div>
+	);
+};
+
+interface AuthorizationProps {
+	onShareCredentialsClick: () => void;
+	onAuthorizationClick: () => void;
+}
+
+const Authorization = ( { onShareCredentialsClick, onAuthorizationClick }: AuthorizationProps ) => {
+	const translate = useTranslate();
+	return (
+		<div className="site-migration-application-password-authorization__authorization">
+			<div>
+				<NextButton onClick={ onAuthorizationClick }>
+					{ translate( 'Authorize access' ) }
+				</NextButton>
+			</div>
+			<div>
+				<button
+					className="button navigation-link step-container__navigation-link has-underline is-borderless"
+					type="button"
+					onClick={ onShareCredentialsClick }
+				>
+					{ translate( 'Share credentials instead' ) }
+				</button>
+			</div>
+			<div className="site-migration-application-password-authorization__benefits-container">
+				<h3>{ translate( "Here's what else you're getting" ) }</h3>
+				<AuthorizationBenefits
+					benefits={ [
+						translate( 'Uninterrupted service throughout the entire migration experience.' ),
+						translate( 'Unmatched reliability with 99.999% uptime and unmetered traffic.' ),
+						translate( 'Round-the-clock security monitoring and DDoS protection.' ),
+					] }
+				/>
+			</div>
+		</div>
+	);
+};
+
+export default Authorization;
diff --git a/client/landing/stepper/declarative-flow/internals/steps-repository/site-migration-application-password-authorization/hooks/use-store-application-password.ts b/client/landing/stepper/declarative-flow/internals/steps-repository/site-migration-application-password-authorization/hooks/use-store-application-password.ts
new file mode 100644
index 00000000000000..d29b1ee60e7433
--- /dev/null
+++ b/client/landing/stepper/declarative-flow/internals/steps-repository/site-migration-application-password-authorization/hooks/use-store-application-password.ts
@@ -0,0 +1,35 @@
+import { useMutation } from '@tanstack/react-query';
+import wpcomRequest from 'wpcom-proxy-request';
+import { ApiError } from '../../site-migration-credentials/types';
+
+interface StoreApplicationPasswordResponse {
+	success: boolean;
+}
+
+interface StoreApplicationPasswordPayload {
+	password: string;
+	username: string;
+	source: string;
+}
+
+const useStoreApplicationPassword = ( siteSlug: string ) => {
+	return useMutation< StoreApplicationPasswordResponse, ApiError, StoreApplicationPasswordPayload >(
+		{
+			mutationFn: ( { password, username, source } ) => {
+				return wpcomRequest( {
+					path: `sites/${ siteSlug }/automated-migration/application-passwords`,
+					apiNamespace: 'wpcom/v2/',
+					apiVersion: '2',
+					method: 'POST',
+					body: {
+						password,
+						username,
+						from_url: source,
+					},
+				} );
+			},
+		}
+	);
+};
+
+export default useStoreApplicationPassword;
diff --git a/client/landing/stepper/declarative-flow/internals/steps-repository/site-migration-application-password-authorization/index.tsx b/client/landing/stepper/declarative-flow/internals/steps-repository/site-migration-application-password-authorization/index.tsx
new file mode 100644
index 00000000000000..18fa0fc61ab1f6
--- /dev/null
+++ b/client/landing/stepper/declarative-flow/internals/steps-repository/site-migration-application-password-authorization/index.tsx
@@ -0,0 +1,147 @@
+import { StepContainer } from '@automattic/onboarding';
+import { useTranslate } from 'i18n-calypso';
+import { useEffect } from 'react';
+import DocumentHead from 'calypso/components/data/document-head';
+import FormattedHeader from 'calypso/components/formatted-header';
+import { LoadingEllipsis } from 'calypso/components/loading-ellipsis';
+import Notice from 'calypso/components/notice';
+import { useQuery } from 'calypso/landing/stepper/hooks/use-query';
+import { useSiteSlugParam } from 'calypso/landing/stepper/hooks/use-site-slug-param';
+import { recordTracksEvent } from 'calypso/lib/analytics/tracks';
+import Authorization from './components/authorization';
+import useStoreApplicationPassword from './hooks/use-store-application-password';
+import type { Step } from '../../types';
+import './style.scss';
+
+const SiteMigrationApplicationPasswordsAuthorization: Step = function ( { navigation } ) {
+	const translate = useTranslate();
+	const siteSlug = useSiteSlugParam();
+
+	const source = useQuery().get( 'from' ) ?? '';
+	const authorizationUrl = useQuery().get( 'authorizationUrl' ) ?? undefined;
+	const isAuthorizationRejected = useQuery().get( 'success' ) === 'false';
+	const applicationPassword = useQuery().get( 'password' );
+	const username = useQuery().get( 'user_login' );
+	const isAuthorizationSuccessful = !! ( applicationPassword && username );
+	const {
+		mutate: storeApplicationPasswordMutation,
+		isSuccess: isStoreApplicationPasswordSuccess,
+		isError: isStoreApplicationPasswordError,
+		isPending: isStoreApplicationPasswordPending,
+	} = useStoreApplicationPassword( siteSlug as string );
+	const hasStoreApplicationPasswordResponse =
+		isStoreApplicationPasswordSuccess || isStoreApplicationPasswordError;
+	const isLoading =
+		isAuthorizationSuccessful &&
+		( ! hasStoreApplicationPasswordResponse || isStoreApplicationPasswordPending );
+
+	useEffect( () => {
+		if ( ! isAuthorizationSuccessful || ! siteSlug ) {
+			return;
+		}
+
+		storeApplicationPasswordMutation( {
+			password: applicationPassword,
+			username,
+			source,
+		} );
+	}, [ isAuthorizationSuccessful, siteSlug, useStoreApplicationPassword ] );
+
+	useEffect( () => {
+		if ( isStoreApplicationPasswordSuccess ) {
+			navigation?.submit?.( { action: 'migration-started' } );
+		}
+	}, [ isStoreApplicationPasswordSuccess, navigation ] );
+
+	const navigateToFallbackCredentials = () => {
+		navigation?.submit?.( { action: 'fallback-credentials', authorizationUrl } );
+	};
+
+	const startAuthorization = () => {
+		navigation?.submit?.( { action: 'authorization', authorizationUrl } );
+	};
+
+	const contactMe = () => {
+		navigation?.submit?.( { action: 'contact-me' } );
+	};
+
+	let notice = undefined;
+	if ( isStoreApplicationPasswordError ) {
+		notice = (
+			<Notice status="is-error" showDismiss={ false }>
+				{ translate( "We couldn't complete the authorization." ) }
+				<button
+					className="button navigation-link step-container__navigation-link has-underline is-borderless site-migration-application-password-authorization__contact-me-button"
+					type="button"
+					onClick={ contactMe }
+				>
+					{ translate( 'Please contact me.' ) }
+				</button>
+			</Notice>
+		);
+	} else if ( isAuthorizationRejected ) {
+		notice = (
+			<Notice status="is-warning" showDismiss={ false }>
+				{ translate(
+					"We can't start your migration without your authorization. Please authorize WordPress.com in your WP Admin or share your credentials."
+				) }
+			</Notice>
+		);
+	}
+
+	const sourceDomain = new URL( source ).host;
+
+	// translators: %(sourceDomain)s is the source domain that is being migrated.
+	const subHeaderText = translate(
+		"We're ready to migrate {{strong}}%(sourceDomain)s{{/strong}} to WordPress.com. To make sure everything goes smoothly, we need you to authorize us for access in your WordPress admin.",
+		{
+			args: {
+				sourceDomain,
+			},
+			components: {
+				strong: <strong />,
+			},
+		}
+	);
+
+	const formattedHeader = ! isLoading ? (
+		<FormattedHeader
+			id="site-migration-credentials-header"
+			headerText={ translate( 'Get ready for blazing fast speeds' ) }
+			subHeaderAlign="center"
+			subHeaderText={ subHeaderText }
+			align="center"
+		/>
+	) : undefined;
+
+	return (
+		<>
+			<DocumentHead title={ translate( 'Get ready for blazing fast speeds' ) } />
+			<StepContainer
+				stepName="site-migration-application-password-authorization"
+				flowName="site-migration"
+				goBack={ navigation?.goBack }
+				goNext={ navigation?.submit }
+				hideSkip
+				isFullLayout
+				notice={ notice }
+				formattedHeader={ formattedHeader }
+				stepContent={
+					! isLoading ? (
+						<Authorization
+							onAuthorizationClick={ startAuthorization }
+							onShareCredentialsClick={ navigateToFallbackCredentials }
+						/>
+					) : (
+						<div data-testid="loading-ellipsis">
+							<LoadingEllipsis />
+						</div>
+					)
+				}
+				recordTracksEvent={ recordTracksEvent }
+			/>
+		</>
+	);
+};
+
+export default SiteMigrationApplicationPasswordsAuthorization;
diff --git a/client/landing/stepper/declarative-flow/internals/steps-repository/site-migration-application-password-authorization/style.scss b/client/landing/stepper/declarative-flow/internals/steps-repository/site-migration-application-password-authorization/style.scss
new file mode 100644
index 00000000000000..edf1400ff39bdf
--- /dev/null
+++ b/client/landing/stepper/declarative-flow/internals/steps-repository/site-migration-application-password-authorization/style.scss
@@ -0,0 +1,56 @@
+@import "@wordpress/base-styles/breakpoints";
+@import "@wordpress/base-styles/mixins";
+
+.site-migration-application-password-authorization {
+	.site-migration-application-password-authorization__authorization {
+		display: flex;
+		flex-direction: column;
+		gap: 1em;
+		align-items: center;
+	}
+	.site-migration-application-password-authorization__benefits-container {
+		display: flex;
+		flex-direction: column;
+		align-items: center;
+		margin-top: 1em;
+		h3 {
+			font-size: $font-title-small;
+			margin-bottom: 0.75em;
+		}
+	}
+	.site-migration-application-password-authorization__benefits {
+		padding: 2em;
+		background-color: var(--color-border-shadow);
+		border-radius: 4px;
+		width: 100%;
+		@include break-small {
+			width: 350px;
+		}
+		display: flex;
+		flex-direction: column;
+		gap: 1em;
+	}
+	.site-migration-application-password-authorization__benefits-item {
+		display: flex;
+		flex-direction: row;
+		gap: 0.5em;
+		font-size: $font-body-small;
+		.site-migration-application-password-authorization__benefits-item-icon {
+			width: 42px;
+			height: 42px;
+			background-color: var(--studio-wordpress-blue-10);
+			border-radius: 4px;
+			display: flex;
+			align-items: center;
+			justify-content: center;
+			flex-shrink: 0;
+			svg {
+				fill: var(--studio-wordpress-blue-50);
+			}
+		}
+	}
+	.site-migration-application-password-authorization__contact-me-button {
+		color: var(--color-text-inverted) !important;
+		margin-left: 0.25em;
+	}
+}
diff --git a/client/landing/stepper/declarative-flow/internals/steps-repository/site-migration-application-password-authorization/test/index.tsx b/client/landing/stepper/declarative-flow/internals/steps-repository/site-migration-application-password-authorization/test/index.tsx
new file mode 100644
index 00000000000000..82291d296fe0b3
--- /dev/null
+++ b/client/landing/stepper/declarative-flow/internals/steps-repository/site-migration-application-password-authorization/test/index.tsx
@@ -0,0 +1,122 @@
+/**
+ * @jest-environment jsdom
+ */
+import { screen, waitFor } from '@testing-library/react';
+import userEvent from '@testing-library/user-event';
+import nock from 'nock';
+import React from 'react';
+import wpcomRequest from 'wpcom-proxy-request';
+import { useSiteSlugParam } from 'calypso/landing/stepper/hooks/use-site-slug-param';
+import SiteMigrationApplicationPasswordAuthorization from '..';
+import { StepProps } from '../../../types';
+import { RenderStepOptions, mockStepProps, renderStep } from '../../test/helpers';
+
+const render = ( props?: Partial< StepProps >, renderOptions?: RenderStepOptions ) => {
+	const combinedProps = { ...mockStepProps( props ) };
+	return renderStep(
+		<SiteMigrationApplicationPasswordAuthorization { ...combinedProps } />,
+		renderOptions
+	);
+};
+
+jest.mock( 'wpcom-proxy-request', () => jest.fn() );
+jest.mock( 'calypso/landing/stepper/hooks/use-site-slug-param' );
+
+const { getByRole, getByTestId, findByText } = screen;
+
+const authorizationUrl = 'https://example.com/authorization.php?appId=123&appName=My%20App';
+const encodedAuthorizationUrl = encodeURIComponent(
+	'https://example.com/authorization.php?appId=123&appName=My%20App'
+);
+const sourceUrl = encodeURIComponent( 'https://example.com' );
+
+describe( 'SiteMigrationApplicationPasswordAuthorization', () => {
+	beforeAll( () => nock.disableNetConnect() );
+
+	beforeEach( () => {
+		jest.clearAllMocks();
+		( useSiteSlugParam as jest.Mock ).mockReturnValue( 'site-url.wordpress.com' );
+	} );
+
+	it( 'renders the loading state when the authorization is successful and the application password is not yet stored', async () => {
+		( wpcomRequest as jest.Mock ).mockImplementation( () => new Promise( () => {} ) );
+
+		const initialEntry = `/step?from=${ sourceUrl }&authorizationUrl=${ encodedAuthorizationUrl }&user_login=test&password=test`;
+		render( {}, { initialEntry } );
+
+		await waitFor( () => {
+			expect( getByTestId( 'loading-ellipsis' ) ).toBeVisible();
+		} );
+	} );
+
+	it( 'redirects to the next step when the application password is stored', async () => {
+		const submit = jest.fn();
+		const initialEntry = `/step?from=${ sourceUrl }&authorizationUrl=${ encodedAuthorizationUrl }&user_login=test&password=test`;
+
+		( wpcomRequest as jest.Mock ).mockResolvedValue( {
+			status: 200,
+			body: {
+				data: { status: 200 },
+			},
+		} );
+
+		render( { navigation: { submit } }, { initialEntry } );
+		await waitFor( () => {
+			expect( submit ).toHaveBeenCalledWith( { action: 'migration-started' } );
+		} );
+	} );
+
+	it( 'renders the error state when the application password fails to be stored', async () => {
+		( wpcomRequest as jest.Mock ).mockRejectedValue( {
+			status: 500,
+			body: {
+				code: 'no_ticket_found',
+				message: 'No migration ticket found.',
+				data: { status: 500 },
+			},
+		} );
+
+		const initialEntry = `/step?from=${ sourceUrl }&authorizationUrl=${ encodedAuthorizationUrl }&user_login=test&password=test`;
+		render( {}, { initialEntry } );
+
+		const errorMessage = await findByText( /We couldn't complete the authorization./ );
+
+		await waitFor( () => {
+			expect( errorMessage ).toBeVisible();
+		} );
+	} );
+
+	it( 'renders the alert notice when the authorization is rejected', async () => {
+		const submit = jest.fn();
+		const initialEntry = `/step?from=${ sourceUrl }&authorizationUrl=${ encodedAuthorizationUrl }&success=false`;
+		render( { navigation: { submit } }, { initialEntry } );
+
+		const errorMessage = await findByText(
+			/We can't start your migration without your authorization. Please authorize WordPress.com in your WP Admin or share your credentials./
+		);
+
+		await waitFor( () => {
+			expect( errorMessage ).toBeVisible();
+		} );
+	} );
+
+	it( 'the authorization button redirects to the source URL when clicked', async () => {
+		const submit = jest.fn();
+		const initialEntry = `/step?from=${ sourceUrl }&authorizationUrl=${ encodedAuthorizationUrl }`;
+		render( { navigation: { submit } }, { initialEntry } );
+
+		await userEvent.click( getByRole( 'button', { name: 'Authorize access' } ) );
+
+		expect( submit ).toHaveBeenCalledWith( { action: 'authorization', authorizationUrl } );
+	} );
+
+	it( 'the share credentials button redirects to the fallback credentials step', async () => {
+		const submit = jest.fn();
+		const initialEntry = `/step?from=${ sourceUrl }&authorizationUrl=${ encodedAuthorizationUrl }`;
+		render( { navigation: { submit } }, { initialEntry } );
+
+		await userEvent.click( getByRole( 'button', { name: 'Share credentials instead' } ) );
+
+		expect( submit ).toHaveBeenCalledWith( { action: 'fallback-credentials', authorizationUrl } );
+	} );
+} );
diff --git a/client/landing/stepper/declarative-flow/internals/steps.tsx b/client/landing/stepper/declarative-flow/internals/steps.tsx
index e8a758dbf43b52..7a88772d87d1c1 100644
--- a/client/landing/stepper/declarative-flow/internals/steps.tsx
+++ b/client/landing/stepper/declarative-flow/internals/steps.tsx
@@ -252,10 +252,10 @@ export const STEPS = {
 		asyncComponent: () => import( './steps-repository/site-migration-fallback-credentials' ),
 	},
 
-	SITE_MIGRATION_APPLICATION_PASSWORDS_APPROVAL: {
-		slug: 'application-passwords-approval',
+	SITE_MIGRATION_APPLICATION_PASSWORD_AUTHORIZATION: {
+		slug: 'site-migration-application-password-authorization',
 		asyncComponent: () =>
-			import( './steps-repository/site-migration-application-passwords-approval' ),
+			import( './steps-repository/site-migration-application-password-authorization' ),
 	},
 
 	SITE_MIGRATION_IDENTIFY: {
diff --git a/client/landing/stepper/declarative-flow/site-migration-flow.ts b/client/landing/stepper/declarative-flow/site-migration-flow.ts
index 2da0b24aba48a0..2763f32b059706 100644
--- a/client/landing/stepper/declarative-flow/site-migration-flow.ts
+++ b/client/landing/stepper/declarative-flow/site-migration-flow.ts
@@ -52,11 +52,11 @@ const siteMigration: Flow = {
 			STEPS.ERROR,
 			STEPS.SITE_MIGRATION_ASSISTED_MIGRATION,
 			STEPS.SITE_MIGRATION_SOURCE_URL,
-			STEPS.SITE_MIGRATION_APPLICATION_PASSWORDS_APPROVAL,
 			STEPS.SITE_MIGRATION_FALLBACK_CREDENTIALS,
 			STEPS.SITE_MIGRATION_CREDENTIALS,
 			STEPS.SITE_MIGRATION_ALREADY_WPCOM,
 			STEPS.SITE_MIGRATION_OTHER_PLATFORM_DETECTED_IMPORT,
+			STEPS.SITE_MIGRATION_APPLICATION_PASSWORD_AUTHORIZATION,
 		];
 
 		const hostedVariantSteps = isHostedSiteMigrationFlow( this.variantSlug ?? FLOW_NAME )
@@ -466,7 +466,7 @@ const siteMigration: Flow = {
 									siteSlug,
 									authorizationUrl,
 								},
-								STEPS.SITE_MIGRATION_APPLICATION_PASSWORDS_APPROVAL.slug
+								STEPS.SITE_MIGRATION_APPLICATION_PASSWORD_AUTHORIZATION.slug
 							)
 						);
 					}
@@ -553,6 +553,40 @@ const siteMigration: Flow = {
 						)
 					);
 				}
+
+				case STEPS.SITE_MIGRATION_APPLICATION_PASSWORD_AUTHORIZATION.slug: {
+					const { action, authorizationUrl } = providedDependencies as {
+						action: string;
+						authorizationUrl: string;
+					};
+
+					if ( action === 'authorization' ) {
+						const currentUrl = window.location.href;
+						const successUrl = encodeURIComponent( currentUrl );
+						window.location.href = authorizationUrl + `&success_url=${ successUrl }`;
+						return;
+					}
+
+					if ( action === 'fallback-credentials' ) {
+						return navigate(
+							addQueryArgs(
+								{
+									siteId,
+									siteSlug,
+									authorizationUrl,
+									backTo: STEPS.SITE_MIGRATION_APPLICATION_PASSWORD_AUTHORIZATION.slug,
+									from: fromQueryParam,
+								},
+								STEPS.SITE_MIGRATION_FALLBACK_CREDENTIALS.slug
+							)
+						);
+					}
+
+					return navigate( STEPS.SITE_MIGRATION_STARTED.slug, {
+						siteId,
+						siteSlug,
+					} );
+				}
 			}
 		}
 
@@ -617,6 +651,10 @@ const siteMigration: Flow = {
 				case STEPS.SITE_MIGRATION_FALLBACK_CREDENTIALS.slug: {
 					return navigate( `${ STEPS.SITE_MIGRATION_CREDENTIALS.slug }?${ urlQueryParams }` );
 				}
+
+				case STEPS.SITE_MIGRATION_APPLICATION_PASSWORD_AUTHORIZATION.slug: {
+					return navigate( `${ STEPS.SITE_MIGRATION_CREDENTIALS.slug }?${ urlQueryParams }` );
+				}
 			}
 		};
 
diff --git a/packages/onboarding/src/step-container/index.tsx b/packages/onboarding/src/step-container/index.tsx
index 36456fcdcd0a07..f6b4cc634a26cb 100644
--- a/packages/onboarding/src/step-container/index.tsx
+++ b/packages/onboarding/src/step-container/index.tsx
@@ -21,6 +21,7 @@ interface Props {
 	backLabelText?: TranslateResult;
 	skipLabelText?: TranslateResult;
 	nextLabelText?: TranslateResult;
+	notice?: ReactElement;
 	formattedHeader?: ReactElement;
 	hideFormattedHeader?: boolean;
 	headerImageUrl?: string;
@@ -61,6 +62,7 @@ const StepContainer: React.FC< Props > = ( {
 	skipHeadingText,
 	hideNext = true,
 	nextLabelText,
+	notice,
 	formattedHeader,
 	headerImageUrl,
 	headerButton,
@@ -194,6 +196,7 @@ const StepContainer: React.FC< Props > = ( {
 			</ActionButtons>
 			{ ! hideFormattedHeader && (
 				<div className="step-container__header">
+					{ notice }
 					{ formattedHeader }
 					{ headerImageUrl && (
 						<div className="step-container__header-image">