A system and method is provided for password management for a physical object on the interactive board. The system includes a plurality of physical objects, each associated with an ID, an interactive board that comprises a processor, and a password management program that is connected with the processor. The physical objects are placed on the interactive board, which recognizes the ID, and a user sets password to the physical objects through the password management program. The system and the accompanying method provided in the present invention enhance the safety of the device and meet the personalized demand of users.