In Magento local installation using XAMPP/WAMP, whenever we enter the wrong password, the Magento admin panel won't let us log into our application backend. The 'forgotten password' link does not work because the application is installed locally and the local server is not capable of sending us the email message with our password. Fortunately, we have the liberty to reset forgotten password using phpMyAdmin.
Forgot Password :-
1. Firstly, Log into your phpMyAdmin dashboard. Select the 'magento' database.
2. Click on the SQL tab on top. Enter the following line of SQL query. Enter your desired new password and your current username in place of 'PASSWORD' and 'USERNAME'. Please note that you need to know your correct username for this.
UPDATE `admin_user` SET `password` = MD5('PASSWORD') WHERE `username` = 'USERNAME';
3. By following the above method we are directly manipulating the password field in the MySQL database of Magento. We are making changes in the 'admin_user' table. Please note that this will work only when the default function used by Magento framework for password encryption hasn't been tweaked with. The default function is md5. If you haven't touched the settings for changing it, this solution will work for you.
4. Try logging in with your new password to Magento admin panel. It should work now.
Forgot Username :-
The procedure for resetting or changing the username is same as changing the password except for the SQL query part. In this case run this query with your password as it is and new username.
I have tested this solution for Magento installation Version 1.9.2 and XAMPP installation version 5.6.3.