diff --git a/CHANGELOG b/CHANGELOG
index 7a51eefce..0106f40d6 100644
--- a/CHANGELOG
+++ b/CHANGELOG
@@ -1,9 +1,10 @@
 CHANGELOG Roundcube Webmail
 ===========================
 
+- Plugin API: Added 'raise_error' hook (#6199)
 - Managesieve: Added support for 'editheader' extension - RFC5293 (#5954)
 - Password: Added 'modoboa' driver (#6361)
-- Plugin API: Added 'raise_error' hook (#6199)
+- Password: Fix bug where password_dovecotpw_with_method setting could be ignored (#6436)
 - Fix so invalid smtp_helo_host is never used, fallback to localhost (#6408)
 - Fix custom logo size in Elastic (#6424)
 - Fix listing the same attachment multiple times on forwarded messages
diff --git a/plugins/password/password.php b/plugins/password/password.php
index c43e3aa64..c7ccdc321 100644
--- a/plugins/password/password.php
+++ b/plugins/password/password.php
@@ -428,12 +428,10 @@ class password extends rcube_plugin
         $rcmail = rcmail::get_instance();
         $prefix = '';
         $crypted = '';
-        $default = false;
 
         if (empty($method) || $method == 'default') {
             $method   = $rcmail->config->get('password_algorithm');
             $prefixed = $rcmail->config->get('password_algorithm_prefix');
-            $default  = true;
         }
         else if ($method == 'crypt') { // deprecated
             if (!($method = $rcmail->config->get('password_crypt_hash'))) {
@@ -622,7 +620,7 @@ class password extends rcube_plugin
                 return false;
             }
 
-            if (!$default) {
+            if (!$prefixed) {
                 $prefixed = (bool) $rcmail->config->get('password_dovecotpw_with_method');
             }