diff --git a/res/values/non_localizable_custom.xml b/res/values/non_localizable_custom.xml
index 64a4cff87..c8ae1603a 100644
--- a/res/values/non_localizable_custom.xml
+++ b/res/values/non_localizable_custom.xml
@@ -70,6 +70,7 @@
 	<bool name="auto_answer_calls">false</bool>
 	<bool name="intercept_outgoing_gsm_calls">false</bool>
 	<bool name="automatically_start_intercepted_outgoing_gsm_call">true</bool>
+	<bool name="store_ha1_passwords">true</bool>
 	
 	<!-- This settings handle the behavior of the view waiting for the remote provisioning configuration to be done -->
 	<bool name="display_sms_remote_provisioning_activity">false</bool>
diff --git a/src/org/linphone/AccountPreferencesFragment.java b/src/org/linphone/AccountPreferencesFragment.java
index ab6ff788f..ba0116912 100644
--- a/src/org/linphone/AccountPreferencesFragment.java
+++ b/src/org/linphone/AccountPreferencesFragment.java
@@ -82,7 +82,13 @@ public class AccountPreferencesFragment extends PreferencesListFragment {
 	OnPreferenceChangeListener passwordChangedListener = new OnPreferenceChangeListener() {
 		@Override
 		public boolean onPreferenceChange(Preference preference, Object newValue) {
-			mPrefs.setAccountPassword(n, newValue.toString());
+			if (getResources().getBoolean(R.bool.store_ha1_passwords)
+					&& mPrefs.getAccountPassword(n) == null) {
+				String ha1 = LinphoneUtils.md5Hash(mPrefs.getAccountUsername(n), newValue.toString(), mPrefs.getAccountDomain(n));
+				mPrefs.setAccountHa1(n, ha1);
+			} else {
+				mPrefs.setAccountPassword(n, newValue.toString());
+			}
 			return true;
 		}		
 	};
diff --git a/src/org/linphone/LinphonePreferences.java b/src/org/linphone/LinphonePreferences.java
index dbd4444af..8de15246e 100644
--- a/src/org/linphone/LinphonePreferences.java
+++ b/src/org/linphone/LinphonePreferences.java
@@ -166,6 +166,7 @@ public class LinphonePreferences {
 		private String tempDisplayName;
 		private String tempUserId;
 		private String tempPassword;
+		private String tempHa1;
 		private String tempDomain;
 		private String tempProxy;
 		private boolean tempOutboundProxy;
@@ -205,6 +206,11 @@ public class LinphonePreferences {
 			return this;
 		}
 
+		public AccountBuilder setHa1(String ha1) {
+			tempHa1 = ha1;
+			return this;
+		}
+
 		public AccountBuilder setDomain(String domain) {
 			tempDomain = domain;
 			return this;
@@ -316,7 +322,7 @@ public class LinphonePreferences {
 			prxCfg.setQualityReportingCollector(tempQualityReportingCollector);
 			prxCfg.setQualityReportingInterval(tempQualityReportingInterval);
 
-			LinphoneAuthInfo authInfo = LinphoneCoreFactory.instance().createAuthInfo(tempUsername, tempUserId, tempPassword, null, null, tempDomain);
+			LinphoneAuthInfo authInfo = LinphoneCoreFactory.instance().createAuthInfo(tempUsername, tempUserId, tempPassword, tempHa1, null, tempDomain);
 
 			lc.addProxyConfig(prxCfg);
 			lc.addAuthInfo(authInfo);
@@ -467,6 +473,17 @@ public class LinphonePreferences {
 		LinphoneAuthInfo authInfo = getAuthInfo(n);
 		return authInfo == null ? null : authInfo.getPassword();
 	}
+	
+	public void setAccountHa1(int n, String ha1) {
+		LinphoneAuthInfo info = getClonedAuthInfo(n);
+		info.setHa1(ha1);
+		saveAuthInfo(info);
+	}
+
+	public String getAccountHa1(int n) {
+		LinphoneAuthInfo authInfo = getAuthInfo(n);
+		return authInfo == null ? null : authInfo.getHa1();
+	}
 
 	public void setAccountDomain(int n, String domain) {
 		String identity = "sip:" + getAccountUsername(n) + "@" + domain;
diff --git a/src/org/linphone/LinphoneUtils.java b/src/org/linphone/LinphoneUtils.java
index 108625276..0cdf4794a 100644
--- a/src/org/linphone/LinphoneUtils.java
+++ b/src/org/linphone/LinphoneUtils.java
@@ -23,13 +23,14 @@ import static android.view.View.VISIBLE;
 
 import java.io.BufferedOutputStream;
 import java.io.BufferedReader;
-import java.io.FileNotFoundException;
 import java.io.FileOutputStream;
 import java.io.IOException;
 import java.io.InputStream;
 import java.io.InputStreamReader;
 import java.net.MalformedURLException;
 import java.net.URL;
+import java.security.MessageDigest;
+import java.security.NoSuchAlgorithmException;
 import java.util.ArrayList;
 import java.util.Arrays;
 import java.util.Collection;
@@ -403,5 +404,32 @@ public final class LinphoneUtils {
 			e.printStackTrace();
 		}
 	}
+
+	public static String md5Hash(String username, String password, String domain) {
+		String passwordToHash = username + ":" + domain + ":" + password;
+
+		byte messageDigest[] = null;
+		try {
+			MessageDigest digest;
+			digest = java.security.MessageDigest.getInstance("MD5");
+	        digest.update(passwordToHash.getBytes());
+	        messageDigest = digest.digest();
+	        
+	        StringBuffer hexString = new StringBuffer();
+	        for (int i = 0; i < messageDigest.length; i++) {
+	            String h = Integer.toHexString(0xFF & messageDigest[i]);
+	            while (h.length() < 2) {
+	                h = "0" + h;
+	            }
+	            hexString.append(h);
+	        }
+	        String hash = hexString.toString();
+	        return hash;
+		} catch (NoSuchAlgorithmException e) {
+			e.printStackTrace();
+		}
+		
+		return null;
+	}
 }
 
diff --git a/src/org/linphone/setup/SetupActivity.java b/src/org/linphone/setup/SetupActivity.java
index ec18e8ceb..93aa4ab8a 100644
--- a/src/org/linphone/setup/SetupActivity.java
+++ b/src/org/linphone/setup/SetupActivity.java
@@ -19,6 +19,7 @@ Foundation, Inc., 59 Temple Place - Suite 330, Boston, MA  02111-1307, USA.
 */
 import org.linphone.LinphoneManager;
 import org.linphone.LinphonePreferences;
+import org.linphone.LinphoneUtils;
 import org.linphone.LinphonePreferences.AccountBuilder;
 import org.linphone.LinphoneSimpleListener.LinphoneOnRegistrationStateChangedListener;
 import org.linphone.R;
@@ -292,8 +293,12 @@ public class SetupActivity extends FragmentActivity implements OnClickListener {
 		boolean useLinphoneDotOrgCustomPorts = getResources().getBoolean(R.bool.use_linphone_server_ports);
 		AccountBuilder builder = new AccountBuilder(LinphoneManager.getLc())
 		.setUsername(username)
-		.setDomain(domain)
-		.setPassword(password);
+		.setDomain(domain);
+		if (getResources().getBoolean(R.bool.store_ha1_passwords)) {
+			builder = builder.setHa1(LinphoneUtils.md5Hash(username, password, domain));
+		} else {
+			builder = builder.setPassword(password);
+		}
 		
 		if (isMainAccountLinphoneDotOrg && useLinphoneDotOrgCustomPorts) {
 			if (getResources().getBoolean(R.bool.disable_all_security_features_for_markets)) {