Passwords provide security mechanism for authentication and protection services against unwanted access to resources. A graphical based password is one promising alternatives of textual passwords. According to human psychology, humans are able to remember pictures easily. In this paper, we have proposed a new hybrid graphical password based system, which is a combination of recognition and recall based techniques that offers many advantages over the existing systems and may be more convenient for the user. Our scheme is resistant to shoulder surfing attack and many other attacks on graphical passwords. This scheme is proposed for smart mobile devices (like smart phones i.e. ipod, iphone, PDAs etc) which are more handy and convenient to use than traditional desktop computer systems.