Updating mysql user password

root#mysql
mysql> use mysql;
mysql>

SET PASSWORD FOR 'user-name-here'@'hostname-name-here' = PASSWORD('new-password-here');  
or
UPDATE mysql.user SET Password=PASSWORD('new-password-here') WHERE User='user-name-here' AND Host='host-name-here';  

mysql>flush privileges
mysql>quit

Now restart mysqld