diff --git a/flask_security/utils.py b/flask_security/utils.py
index bc59890..6bf83ee 100644
--- a/flask_security/utils.py
+++ b/flask_security/utils.py
@@ -121,7 +121,10 @@ def verify_and_update_password(password, user):
     :param password: A plaintext password to verify
     :param user: The user to verify against
     """
-    verified, new_password = _pwd_context.verify_and_update(encrypt_password(password), user.password)
+
+    if _security.password_hash != 'plaintext':
+        password = get_hmac(password)
+    verified, new_password = _pwd_context.verify_and_update(password, user.password)
     if verified and new_password:
         user.password = new_password
         _datastore.put(user)
@@ -135,8 +138,8 @@ def encrypt_password(password):
     """
     if _security.password_hash == 'plaintext':
         return password
-    signed = get_hmac(password)
-    return _pwd_context.encrypt(signed.decode('ascii'))
+    signed = get_hmac(password).decode('ascii')
+    return _pwd_context.encrypt(signed)
 
 
 def md5(data):
diff --git a/tests/configured_tests.py b/tests/configured_tests.py
index 5f16191..cd223c2 100644
--- a/tests/configured_tests.py
+++ b/tests/configured_tests.py
@@ -19,18 +19,18 @@ from flask_security.signals import user_registered
 
 from tests import SecurityTest
 
-# TODO: Wait for passlib + bcrypt python3 compatibility to be fixed
-# class ConfiguredPasswordHashSecurityTests(SecurityTest):
 
-#     AUTH_CONFIG = {
-#         'SECURITY_PASSWORD_HASH': 'bcrypt',
-#         'SECURITY_PASSWORD_SALT': 'so-salty',
-#         'USER_COUNT': 1
-#     }
+class ConfiguredPasswordHashSecurityTests(SecurityTest):
 
-#     def test_authenticate(self):
-#         r = self.authenticate(endpoint="/login")
-#         self.assertIn(b'Home Page', r.data)
+    AUTH_CONFIG = {
+        'SECURITY_PASSWORD_HASH': 'bcrypt',
+        'SECURITY_PASSWORD_SALT': 'so-salty',
+        'USER_COUNT': 1
+    }
+
+    def test_authenticate(self):
+        r = self.authenticate(endpoint="/login")
+        self.assertIn(b'Home Page', r.data)
 
 
 class ConfiguredSecurityTests(SecurityTest):