diff --git a/README.md b/README.md
index 61d3383..9078174 100644
--- a/README.md
+++ b/README.md
@@ -16,8 +16,8 @@ HTTPS) on your Phantom host(s) in order to function.
 **Authentication is carried out in following priority order**
 
 1. Basic Auth (username and password)
-1. OAuth (oauth token url, client id and client secret)
-1. Provided Auth token (auth_token_name, auth_token)
+3. OAuth (oauth token url, client id and client secret)
+4. Provided Auth token (auth_token_name, auth_token)
 
 ### Configuration variables
 
@@ -31,6 +31,8 @@ VARIABLE | REQUIRED | TYPE | DESCRIPTION
 **auth_token** | optional | password | Value of authentication token |
 **username** | optional | string | Username (for HTTP basic auth) |
 **password** | optional | password | Password (for HTTP basic auth) |
+**oauth_username** | optional | string | Username (for Oauth password grants) |
+**oauth_password** | optional | password | Password (for Oauth password grants) |
 **oauth_token_url** | optional | string | URL to fetch oauth token from |
 **client_id** | optional | string | Client ID (for OAuth) |
 **client_secret** | optional | password | Client Secret (for OAuth) |
diff --git a/http.json b/http.json
index 7438ea0..293a40c 100644
--- a/http.json
+++ b/http.json
@@ -58,34 +58,44 @@
             "order": 5,
             "description": "Password (for HTTP basic auth)"
         },
-        "oauth_token_url": {
+        "oauth_username": {
             "data_type": "string",
             "order": 6,
+            "description": "Username (for OAuth password grants)"
+        },
+        "oauth_password": {
+            "data_type": "password",
+            "order": 7,
+            "description": "Password (for OAuth password grants)"
+        },
+        "oauth_token_url": {
+            "data_type": "string",
+            "order": 8,
             "description": "URL to fetch oauth token from"
         },
         "placeholder": {
             "data_type": "ph",
-            "order": 7,
+            "order": 9,
             "description": ""
         },
         "client_id": {
             "data_type": "string",
-            "order": 8,
+            "order": 10,
             "description": "Client ID (for OAuth)"
         },
         "client_secret": {
             "data_type": "password",
-            "order": 9,
+            "order": 11,
             "description": "Client Secret (for OAuth)"
         },
         "timeout": {
             "data_type": "numeric",
-            "order": 10,
+            "order": 12,
             "description": "Timeout for HTTP calls"
         },
         "test_http_method": {
             "data_type": "string",
-            "order": 11,
+            "order": 13,
             "description": "HTTP Method for Test Connectivity",
             "default": "GET",
             "value_list": [
diff --git a/http_connector.py b/http_connector.py
index a8a4ed2..9cc4745 100644
--- a/http_connector.py
+++ b/http_connector.py
@@ -64,6 +64,9 @@ def __init__(self):
         self._token = None
         self._username = None
         self._password = None
+        self._oauth_username = None
+        self._oauth_password = None
+        self._oauth_password_grant = False
         self._oauth_token_url = None
         self._client_id = None
         self._client_secret = None
@@ -155,9 +158,23 @@ def initialize(self):
         self._password = config.get("password", "")
         self._test_http_method = config.get("test_http_method", "get").lower()
 
+        # if oauth password AND oauth username have been set we use the oauth password granttype 
+        self._oauth_password = config.get("oauth_password")
+        self._oauth_username = config.get("oauth_username")
+
+        # make sure both are set together
+        if bool(self._oauth_password) != bool(self._oauth_username):
+            return self.set_status(
+                phantom.APP_ERROR,
+                "Both oauth_username and oauth_password must be provided together"
+            )
+
+        self._oauth_password_grant = bool(self._oauth_username and self._oauth_password)
+
         self._oauth_token_url = config.get("oauth_token_url")
         if self._oauth_token_url:
             self._oauth_token_url = self._oauth_token_url.strip("/")
+
         self._client_id = config.get("client_id")
         self._client_secret = config.get("client_secret")
         self._access_token = self._state.get(HTTP_JSON_ACCESS_TOKEN)
@@ -409,7 +426,7 @@ def _make_http_call(
         if access_token and r.status_code == 401 and self.access_token_retry:
             self.save_progress(f"Got error: {r.status_code}")
             self._access_token = None
-            self._state.pop("access_token")
+            self._state.pop(HTTP_JSON_ACCESS_TOKEN, None)
             self.access_token_retry = False  # make it to false to avoid getting access token after one time (prevents recursive loop)
             return self._make_http_call(
                 action_result,
@@ -501,20 +518,39 @@ def _generate_api_token(self, action_result, new_token=False):
             self.save_progress("Using old token")
             return self._access_token
 
-        payload = {"grant_type": "client_credentials"}
+        if self._oauth_password_grant:
+            self.save_progress("Using password grant")
+            payload = {
+                    "grant_type": "password",
+                    "username": self._oauth_username,
+                    "password": self._oauth_password,
+                    }
+        else:
+            self.save_progress("Using client credentials")
+            payload = {"grant_type": "client_credentials"}
 
         self.save_progress("Fetching new token")
+
         # Querying endpoint to generate token
-        response = requests.post(
-            self._oauth_token_url,
-            auth=HTTPBasicAuth(self._client_id, self._client_secret),  # nosemgrep
-            data=payload,
-            timeout=DEFAULT_REQUEST_TIMEOUT,
-        )
+        try:
+            response = requests.post(
+                self._oauth_token_url,
+                auth=HTTPBasicAuth(self._client_id, self._client_secret),  # nosemgrep
+                data=payload,
+                timeout=DEFAULT_REQUEST_TIMEOUT,
+            )
+        except Exception as e:
+            error_message = self._get_error_message_from_exception(e)
+            action_result.set_status(
+                phantom.APP_ERROR,
+                f"Error connecting to token endpoint {self._oauth_token_url}. Details: {error_message}",
+            )
+            return None
+
         if response.status_code not in [200, 201]:
             action_result.set_status(
                 phantom.APP_ERROR,
-                f"Error fetching token from {self._oauth_token_url}. Server returned {response.status_code}",
+                f"Error fetching token from {self._oauth_token_url}. Server returned {response.status_code} with body {response.text}",
             )
             return None
 
diff --git a/manual_readme_content.md b/manual_readme_content.md
index c70b8a2..b5d7b1c 100644
--- a/manual_readme_content.md
+++ b/manual_readme_content.md
@@ -6,5 +6,8 @@ HTTPS) on your Phantom host(s) in order to function.
 **Authentication is carried out in following priority order**
 
 1. Basic Auth (username and password)
+1. OAuth Password grants (username, password, oauth token url, client id and client secret)
 1. OAuth (oauth token url, client id and client secret)
 1. Provided Auth token (auth_token_name, auth_token)
+
+Basic auth is configured using `username`/`password` fields. For Oauth password grants both the `oauth_username` and `oauth_password` fields must be configured.