diff --git a/src/wp-includes/rest-api/endpoints/class-wp-rest-application-passwords-controller.php b/src/wp-includes/rest-api/endpoints/class-wp-rest-application-passwords-controller.php
index b0ac65a6476aa..767917d6f6fd0 100644
--- a/src/wp-includes/rest-api/endpoints/class-wp-rest-application-passwords-controller.php
+++ b/src/wp-includes/rest-api/endpoints/class-wp-rest-application-passwords-controller.php
@@ -802,7 +802,16 @@ public function get_item_schema() {
 				'app_id'    => array(
 					'description' => __( 'A UUID provided by the application to uniquely identify it. It is recommended to use an UUID v5 with the URL or DNS namespace.' ),
 					'type'        => 'string',
-					'format'      => 'uuid',
+					'oneOf'       => array(
+						array(
+							'type'   => 'string',
+							'format' => 'uuid',
+						),
+						array(
+							'type' => 'string',
+							'enum' => array( '' ),
+						),
+					),
 					'context'     => array( 'view', 'edit', 'embed' ),
 				),
 				'name'      => array(
diff --git a/tests/phpunit/tests/rest-api/rest-application-passwords-controller.php b/tests/phpunit/tests/rest-api/rest-application-passwords-controller.php
index 7a06bb006dffe..9b2eafcc9b956 100644
--- a/tests/phpunit/tests/rest-api/rest-application-passwords-controller.php
+++ b/tests/phpunit/tests/rest-api/rest-application-passwords-controller.php
@@ -847,6 +847,67 @@ public function test_prepare_item() {
 		$this->check_response( $prepared->get_data(), $item );
 	}
 
+	/**
+	 * @ticket 53692
+	 */
+	public function test_app_id_schema() {
+		$request    = new WP_REST_Request( 'OPTIONS', '/wp/v2/users/me/application-passwords' );
+		$response   = rest_get_server()->dispatch( $request );
+		$data       = $response->get_data();
+		$properties = $data['schema']['properties'];
+
+		$this->assertArrayHasKey( 'app_id', $properties );
+		$this->assertSame( 'string', $properties['app_id']['type'] );
+		$this->assertCount( 2, $properties['app_id']['oneOf'] );
+
+		$this->assertSame( 'string', $properties['app_id']['oneOf'][0]['type'] );
+		$this->assertSame( 'uuid', $properties['app_id']['oneOf'][0]['format'] );
+
+		$this->assertSame( 'string', $properties['app_id']['oneOf'][1]['type'] );
+		$this->assertSame( array( '' ), $properties['app_id']['oneOf'][1]['enum'] );
+	}
+
+	/**
+	 * @ticket 53692
+	 */
+	public function test_create_item_with_empty_app_id() {
+		wp_set_current_user( self::$admin );
+
+		$request = new WP_REST_Request( 'POST', '/wp/v2/users/' . self::$admin . '/application-passwords' );
+		$request->set_body_params(
+			array(
+				'name'   => 'Test',
+				'app_id' => '',
+			)
+		);
+
+		$response = rest_get_server()->dispatch( $request );
+		$this->assertSame( 201, $response->get_status() );
+		$data = $response->get_data();
+		$this->assertSame( '', $data['app_id'] );
+	}
+
+	/**
+	 * @ticket 53692
+	 */
+	public function test_create_item_with_uuid_app_id() {
+		wp_set_current_user( self::$admin );
+
+		$uuid = wp_generate_uuid4();
+		$request = new WP_REST_Request( 'POST', '/wp/v2/users/' . self::$admin . '/application-passwords' );
+		$request->set_body_params(
+			array(
+				'name'   => 'Test',
+				'app_id' => $uuid,
+			)
+		);
+
+		$response = rest_get_server()->dispatch( $request );
+		$this->assertSame( 201, $response->get_status() );
+		$data = $response->get_data();
+		$this->assertSame( $uuid, $data['app_id'] );
+	}
+
 	/**
 	 * Checks the password response matches the expected format.
 	 *
diff --git a/tests/qunit/fixtures/wp-api-generated.js b/tests/qunit/fixtures/wp-api-generated.js
index 448548aab0c07..8c2cf0eca53d4 100644
--- a/tests/qunit/fixtures/wp-api-generated.js
+++ b/tests/qunit/fixtures/wp-api-generated.js
@@ -10028,7 +10028,16 @@ mockedApiResponse.Schema = {
                         "app_id": {
                             "description": "A UUID provided by the application to uniquely identify it. It is recommended to use an UUID v5 with the URL or DNS namespace.",
                             "type": "string",
-                            "format": "uuid",
+                            "oneOf": [
+                                {
+                                    "type": "string",
+                                    "format": "uuid",
+                                },
+                                {
+                                    "type": "string",
+                                    "enum": [ "" ],
+                                },
+                            ],
                             "required": false
                         },
                         "name": {
@@ -10112,7 +10121,16 @@ mockedApiResponse.Schema = {
                         "app_id": {
                             "description": "A UUID provided by the application to uniquely identify it. It is recommended to use an UUID v5 with the URL or DNS namespace.",
                             "type": "string",
-                            "format": "uuid",
+                            "oneOf": [
+                                {
+                                    "type": "string",
+                                    "format": "uuid",
+                                },
+                                {
+                                    "type": "string",
+                                    "enum": [ "" ],
+                                },
+                            ],
                             "required": false
                         },
                         "name": {