diff --git a/jetty-util/src/main/java/org/eclipse/jetty/util/security/Password.java b/jetty-util/src/main/java/org/eclipse/jetty/util/security/Password.java
index af677af3401..65b65a5a40d 100644
--- a/jetty-util/src/main/java/org/eclipse/jetty/util/security/Password.java
+++ b/jetty-util/src/main/java/org/eclipse/jetty/util/security/Password.java
@@ -19,6 +19,7 @@
 package org.eclipse.jetty.util.security;
 
 import java.io.IOException;
+import java.nio.charset.StandardCharsets;
 import java.util.Arrays;
 
 import org.eclipse.jetty.util.log.Log;
@@ -141,39 +142,36 @@ public class Password extends Credential
     public static String obfuscate(String s)
     {
         StringBuilder buf = new StringBuilder();
-        byte[] b = s.getBytes();
+        byte[] b = s.getBytes(StandardCharsets.UTF_8);
 
         buf.append(__OBFUSCATE);
         for (int i = 0; i < b.length; i++)
         {
             byte b1 = b[i];
-            byte b2 = b[s.length() - (i + 1)];
-            int i1 = 127 + b1 + b2;
-            int i2 = 127 + b1 - b2;
-            int i0 = i1 * 256 + i2;
-            String x = Integer.toString(i0, 36);
-
-            switch (x.length())
+            byte b2 = b[b.length - (i + 1)];
+            if (b1<0 || b2<0)
             {
-                case 1:
-                    buf.append('0');
-                    buf.append('0');
-                    buf.append('0');
-                    buf.append(x);
-                    break;
-                case 2:
-                    buf.append('0');
-                    buf.append('0');
-                    buf.append(x);
-                    break;
-                case 3:
-                    buf.append('0');
-                    buf.append(x);
-                    break;
-                default:
-                    buf.append(x);
-                    break;
+                int i0 = (0xff&b1)*256 + (0xff&b2); 
+                String x = Integer.toString(i0, 36).toLowerCase();
+                buf.append("U0000",0,5-x.length());
+                buf.append(x);
             }
+            else
+            {
+                int i1 = 127 + b1 + b2;
+                int i2 = 127 + b1 - b2;
+                int i0 = i1 * 256 + i2;
+                String x = Integer.toString(i0, 36).toLowerCase();
+
+                int j0 = Integer.parseInt(x, 36);
+                int j1 = (i0 / 256);
+                int j2 = (i0 % 256);
+                byte bx = (byte) ((j1 + j2 - 254) / 2);
+                
+                buf.append("000",0,4-x.length());
+                buf.append(x);
+            }
+
         }
         return buf.toString();
 
@@ -188,14 +186,26 @@ public class Password extends Credential
         int l = 0;
         for (int i = 0; i < s.length(); i += 4)
         {
-            String x = s.substring(i, i + 4);
-            int i0 = Integer.parseInt(x, 36);
-            int i1 = (i0 / 256);
-            int i2 = (i0 % 256);
-            b[l++] = (byte) ((i1 + i2 - 254) / 2);
+            if (s.charAt(i)=='U')
+            {
+                i++;
+                String x = s.substring(i, i + 4);
+                int i0 = Integer.parseInt(x, 36);
+                byte bx = (byte)(i0>>8);
+                b[l++] = bx;
+            }
+            else
+            {
+                String x = s.substring(i, i + 4);
+                int i0 = Integer.parseInt(x, 36);
+                int i1 = (i0 / 256);
+                int i2 = (i0 % 256);
+                byte bx = (byte) ((i1 + i2 - 254) / 2);
+                b[l++] = bx;
+            }
         }
 
-        return new String(b, 0, l);
+        return new String(b, 0, l,StandardCharsets.UTF_8);
     }
 
     /* ------------------------------------------------------------ */
diff --git a/jetty-util/src/test/java/org/eclipse/jetty/util/security/PasswordTest.java b/jetty-util/src/test/java/org/eclipse/jetty/util/security/PasswordTest.java
new file mode 100644
index 00000000000..e27c0aac63f
--- /dev/null
+++ b/jetty-util/src/test/java/org/eclipse/jetty/util/security/PasswordTest.java
@@ -0,0 +1,52 @@
+//
+//  ========================================================================
+//  Copyright (c) 1995-2013 Mort Bay Consulting Pty. Ltd.
+//  ------------------------------------------------------------------------
+//  All rights reserved. This program and the accompanying materials
+//  are made available under the terms of the Eclipse Public License v1.0
+//  and Apache License v2.0 which accompanies this distribution.
+//
+//      The Eclipse Public License is available at
+//      http://www.eclipse.org/legal/epl-v10.html
+//
+//      The Apache License v2.0 is available at
+//      http://www.opensource.org/licenses/apache2.0.php
+//
+//  You may elect to redistribute this code under either of these licenses.
+//  ========================================================================
+//
+
+package org.eclipse.jetty.util.security;
+
+import static org.junit.Assert.assertEquals;
+
+import org.junit.Test;
+
+public class PasswordTest
+{
+    @Test
+    public void testDeobfuscate()
+    {
+        // check any changes do not break already encoded strings
+        String password = "secret password !# ";
+        String obfuscate = "OBF:1iaa1g3l1fb51i351sw01ym91hdc1yt41v1p1ym71v2p1yti1hhq1ym51svy1hyl1f7h1fzx1i5o";
+        assertEquals(password,Password.deobfuscate(obfuscate));
+    }
+
+    @Test
+    public void testObfuscate()
+    {
+        String password = "secret password !# ";
+        String obfuscate = Password.obfuscate(password);
+        assertEquals(password,Password.deobfuscate(obfuscate));
+    }
+    
+    @Test
+    public void testObfuscateUnicode()
+    {
+        String password = "secret password !#\u20ac ";
+        String obfuscate = Password.obfuscate(password);
+        assertEquals(password,Password.deobfuscate(obfuscate));
+    }
+
+}