diff --git a/awx/api/serializers.py b/awx/api/serializers.py
index b170199bdb..89fda89a55 100644
--- a/awx/api/serializers.py
+++ b/awx/api/serializers.py
@@ -2139,6 +2139,10 @@ class NotifierSerializer(BaseSerializer):
         incorrect_type_fields = []
         if 'notification_configuration' not in attrs:
             return attrs
+        if self.context['view'].kwargs:
+            object_actual = self.context['view'].get_object()
+        else:
+            object_actual = None
         for field in notification_class.init_parameters:
             if field not in attrs['notification_configuration']:
                 missing_fields.append(field)
@@ -2149,8 +2153,8 @@ class NotifierSerializer(BaseSerializer):
             if not type(field_val) in expected_types:
                 incorrect_type_fields.append((field, field_type))
                 continue
-            if field_type == "password" and field_val.startswith('$encrypted$'):
-                missing_fields.append(field)
+            if field_type == "password" and field_val == "$encrypted$" and object_actual is not None:
+                attrs['notification_configuration'][field] = object_actual.notification_configuration[field]
         error_list = []
         if missing_fields:
             error_list.append("Missing required fields for Notification Configuration: {}".format(missing_fields))
diff --git a/awx/main/models/notifications.py b/awx/main/models/notifications.py
index 29a51cf9ac..40dcba67ac 100644
--- a/awx/main/models/notifications.py
+++ b/awx/main/models/notifications.py
@@ -68,6 +68,8 @@ class Notifier(CommonModel):
         update_fields = kwargs.get('update_fields', [])
         for field in filter(lambda x: self.notification_class.init_parameters[x]['type'] == "password",
                             self.notification_class.init_parameters):
+            if self.notification_configuration[field].startswith("$encrypted$"):
+                continue
             if new_instance:
                 value = self.notification_configuration[field]
                 setattr(self, '_saved_{}_{}'.format("config", field), value)
@@ -84,7 +86,6 @@ class Notifier(CommonModel):
                                 self.notification_class.init_parameters):
                 saved_value = getattr(self, '_saved_{}_{}'.format("config", field), '')
                 self.notification_configuration[field] = saved_value
-                #setattr(self.notification_configuration, field, saved_value)
                 if 'notification_configuration' not in update_fields:
                     update_fields.append('notification_configuration')
             self.save(update_fields=update_fields)