Systems and methods for multi-dimensional password generation and authentication is provided. The method includes selecting a virtual reality (VR) environment, rendering interactive objects in the VR environment, tracking a first set of activities including user behavior, user interaction with the objects, and changes made to the objects, the behavior including user position(s), head rotation, time spent on a particular position, GPS coordinates, and the changes include one of position, shape, color, and rotation of the objects. The method generates a multi-dimensional password based on the first set of tracked activities, and authenticates based on comparison of a second set of tracked activities and the first set of activities. When the comparison results in mismatch, the system generates a one-time multi-dimensional image, based on which a third set of activities are tracked and compared with the first set of activities for resetting the password or authenticating the user accordingly.