Password policy enforcement is configuring and enforcing rules around password creation, complexity, and lifecycle. Policies mandate: minimum length (12+ characters), complexity (mix of character types), no dictionary words, prevent reuse (last 12 passwords forbidden), optional expiration (change every 90 days or never). Tools (Azure AD, Okta, Auth0) enforce these automatically. Example policy: "Minimum 12 characters, no dictionary words, can't reuse last 12 passwords. If compromised (found in breach database), force immediate change. Optional: 90-day expiration."