This study provides a comprehensive analysis of cognitive password systems as a secure and user-friendly alternative to traditional authentication mechanisms. Cognitive passwords leverage human memory, behavior, and perception to enhance usability while mitigating common security challenges such as poor memorability, password reuse, and susceptibility to attacks. The study systematically reviews various models, including graphical passwords, cognitive biometrics, and cognitive one-time passwords (OTPs), highlighting their strengths and limitations. To ensure a transparent and rigorous review, we employed a structured methodology comprising a multi-database literature search, clearly defined inclusion and exclusion criteria, and a thematic synthesis of the collected studies. Our findings indicate that cognitive password systems offer significant improvements in user experience and security but face critical challenges, including accessibility for individuals with cognitive or physical impairments, privacy concerns, vulnerability to social engineering, and scalability limitations. Furthermore, artificial intelligence (AI) emerges as a key enabler for enhancing personalization, adaptive authentication, and real-time security risk assessment. The study underscores the necessity of integrating AI thoughtfully to maximize the benefits of cognitive passwords. Overall, this research demonstrates the transformative potential of cognitive password systems in cybersecurity, emphasizing that addressing usability, privacy, and scalability challenges is essential for their practical adoption. The findings provide actionable insights for system designers, policymakers, and researchers aiming to advance secure and user-centered authentication frameworks.