This tutorial will show you how to create a password reset disk on a USB flash drive for your local account in Windows 10 and Windows 11.
Creating a password reset disk is a precautionary measure that allows you to reset your Windows local account password in case you forget it. The password reset disk is a USB flash drive that acts as a recovery tool, providing you with a way to regain access to your files and settings in case you forget your password.
It’s particularly useful because it can save you from the hassle of losing access to your account and data, especially if you do not use a Microsoft account that can reset passwords online.
A password reset disk can only be created for a local account, and not for a Microsoft account.
When you create a password reset disk on a USB flash drive, it will create and add a userkey.psw file to the root directory of the USB flash drive for the specific local user account. You can move the userkey.psw file to the root directory of another USB flash drive if you like, but you can only have one userkey.psw file on a USB flash drive.
You don't have to create a new password reset disk when you change your password.
Reference:
Create a password reset disk for a local account in Windows - Microsoft Support
Learn how to create a password reset disk for a local account in Windows 10 and Windows 11.

Here's How:
1 Sign in to Windows 10/11 with your local account.
2 Connect a USB flash drive to your computer.
This USB flash drive will not get formatted, so any data on it will not be lost.
3 Open the Control Panel (icons view), and click/tap on the User Accounts icon.
4 Click/tap on the Create a password reset disk link on the left side. (see screenshot below)
You can also run (Win+R) rundll32.exe keymgr.dll,PRShowSaveWizardExW
to open the Forgotten Password Wizard.
5 Click/tap on Next. (see screenshot below)
6 Select the USB flash drive, and click/tap on Next. (see screenshot below)
7 Enter the current password of your local account, and click/tap on Next. (see screenshot below)
8 If prompted to Replace Previous Disc for this local account, click/tap on Yes. (see screenshot below)
9 If prompted to Overwrite Existing Disk when a userkey.psw file already exists in the root directory of this USB, click/tap on Yes to replace it. (see screenshot below)
10 Click/tap on Next when progress reaches 100% complete. (see screenshot below)
11 Click/tap on Finish. (see screenshot below)
12 You can now disconnect the USB flash drive (password reset disk) and keep it in a safe and secure location to have available and use to reset your local account's password if needed.
That's it,
Shawn Brink
Last edited: