I really liked the answer that Wirone gave, but I didn't like that the backspacing would continue removing characters even back into the "Enter password: " prompt.
I also had some issues where pressing keys too rapidly would cause some of the characters to actually print on the screen... never a good thing when prompting for a password. =)
The following is my modified version of Wirone's answer which addresses these issues:
#!/bin/bash unset PASSWORD unset CHARCOUNT echo -n "Enter password: " stty -echo CHARCOUNT=0 while IFS= read -p "$PROMPT" -r -s -n 1 CHAR do # Enter - accept password if [[ $CHAR == $'\0' ]] ; then break fi # Backspace if [[ $CHAR == $'\177' ]] ; then if [ $CHARCOUNT -gt 0 ] ; then CHARCOUNT=$((CHARCOUNT-1)) PROMPT=$'\b \b' PASSWORD="${PASSWORD%?}" else PROMPT='' fi else CHARCOUNT=$((CHARCOUNT+1)) PROMPT='*' PASSWORD+="$CHAR" fi done stty echo echo $PASSWORD