The invention discloses an establishing and operation method for a portable smart 
password management system. The operation steps comprise 1, registering a 
system account; 2, generating digital 
certificate information; 3, transmitting the digital 
certificate information; 4, generating a master 
password and inputting user personal information; 5, carrying out 
secret sharing on the user master 
password; 6, storing password information in a 
database; 7, verifying integrity of 
database information; 8, 
logging in the 
system account at a network terminal; 9, recovering the password information from the 
database; 10, 
synchronizing the password information to the network terminal; 11, finishing automatic login operation by the network terminal; 12, authorizing other users, thereby enabling the other users to use the password information; 13, inputting the personal information to initiate password finding operation; 14, judging a user identity and recovering the user master password; and 15, modifying a social relationship attribute. According to the method, the 
password management efficiency is clearly improved, the convenient degree of using the password by the user is increased, the security of the password is improved, and the method has popularization prospect.