diff --git a/awx/api/serializers.py b/awx/api/serializers.py
index d901184ee0..04f5e241c3 100644
--- a/awx/api/serializers.py
+++ b/awx/api/serializers.py
@@ -2059,8 +2059,20 @@ class NotifierSerializer(BaseSerializer):
         model = Notifier
         fields = ('*', 'organization', 'notification_type', 'notification_configuration')
 
-    type_map = {"string": str, "int": int, "bool": bool, "list": list,
-                "password": str, "object": dict}
+    type_map = {"string": (str, unicode),
+                "int": (int,),
+                "bool": (bool,),
+                "list": (list,),
+                "password": (str, unicode),
+                "object": (dict,)}
+
+    def to_representation(self, obj):
+        ret = super(NotifierSerializer, self).to_representation(obj)
+        for field in obj.notification_class.init_parameters:
+            if field in ret['notification_configuration'] and \
+               force_text(ret['notification_configuration'][field]).startswith('$encrypted$'):
+                ret['notification_configuration'][field] = '$encrypted$'
+        return ret
 
     def get_related(self, obj):
         res = super(NotifierSerializer, self).get_related(obj)
@@ -2076,20 +2088,28 @@ class NotifierSerializer(BaseSerializer):
         notification_class = Notifier.CLASS_FOR_NOTIFICATION_TYPE[attrs['notification_type']]
         missing_fields = []
         incorrect_type_fields = []
+        if 'notification_configuration' not in attrs:
+            return attrs
         for field in notification_class.init_parameters:
             if field not in attrs['notification_configuration']:
                 missing_fields.append(field)
                 continue
             field_val = attrs['notification_configuration'][field]
             field_type = notification_class.init_parameters[field]['type']
-            expected_type = self.type_map[field_type]
-            if not isinstance(field_val, expected_type):
+            expected_types = self.type_map[field_type]
+            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)
+        error_list = []
         if missing_fields:
-            error_list = ["Missing required fields for Notification Configuration: {}".format(missing_fields)]
+            error_list.append("Missing required fields for Notification Configuration: {}".format(missing_fields))
+        if incorrect_type_fields:
             for type_field_error in incorrect_type_fields:
-                error_list.append("Configuration field {} incorrect type, expected {}".format(type_field_error[0],
+                error_list.append("Configuration field '{}' incorrect type, expected {}".format(type_field_error[0],
                                                                                               type_field_error[1]))
+        if error_list:
             raise serializers.ValidationError(error_list)
         return attrs
 
diff --git a/awx/main/models/notifications.py b/awx/main/models/notifications.py
index 2e1bb9df2f..d6fc9d31b8 100644
--- a/awx/main/models/notifications.py
+++ b/awx/main/models/notifications.py
@@ -10,6 +10,7 @@ from django.utils.translation import ugettext_lazy as _
 from django.utils.encoding import smart_str
 
 from awx.main.models.base import * # noqa
+from awx.main.utils import encrypt_field, decrypt_field
 from awx.main.notifications.email_backend import CustomEmailBackend
 from awx.main.notifications.slack_backend import SlackBackend
 from awx.main.notifications.twilio_backend import TwilioBackend
@@ -62,6 +63,31 @@ class Notifier(CommonModel):
     def notification_class(self):
         return self.CLASS_FOR_NOTIFICATION_TYPE[self.notification_type]
 
+    def save(self, *args, **kwargs):
+        new_instance = not bool(self.pk)
+        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 new_instance:
+                value = getattr(self.notification_configuration, field, '')
+                setattr(self, '_saved_{}'.format(field), value)
+                self.notification_configuration[field] = ''
+            else:
+                encrypted = encrypt_field(self, 'notification_configuration', subfield=field)
+                self.notification_configuration[field] = encrypted
+                if 'notification_configuration' not in update_fields:
+                    update_fields.append('notification_configuration')
+        super(Notifier, self).save(*args, **kwargs)
+        if new_instance:
+            update_fields = []
+            for field in filter(lambda x: self.notification_class.init_parameters[x]['type'] == "password",
+                                self.notification_class.init_parameters):
+                saved_value = getattr(self, '_saved_{}'.format(field), '')
+                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)
+
     @property
     def recipients(self):
         return self.notification_configuration[self.notification_class.recipient_parameter]
@@ -76,6 +102,11 @@ class Notifier(CommonModel):
         return notification
 
     def send(self, subject, body):
+        for field in filter(lambda x: self.notification_class.init_parameters[x]['type'] == "password",
+                                self.notification_class.init_parameters):
+            self.notification_configuration[field] = decrypt_field(self,
+                                                                   'notification_configuration',
+                                                                   subfield=field)
         recipients = self.notification_configuration.pop(self.notification_class.recipient_parameter)
         if not isinstance(recipients, list):
             recipients = [recipients]
diff --git a/awx/main/utils.py b/awx/main/utils.py
index 5bd00c2da6..a561648f95 100644
--- a/awx/main/utils.py
+++ b/awx/main/utils.py
@@ -139,12 +139,13 @@ def get_encryption_key(instance, field_name):
     h.update(field_name)
     return h.digest()[:16]
 
-
-def encrypt_field(instance, field_name, ask=False):
+def encrypt_field(instance, field_name, ask=False, subfield=None):
     '''
     Return content of the given instance and field name encrypted.
     '''
     value = getattr(instance, field_name)
+    if isinstance(value, dict) and subfield is not None:
+        value = value[subfield]
     if not value or value.startswith('$encrypted$') or (ask and value == 'ASK'):
         return value
     value = smart_str(value)
@@ -157,11 +158,13 @@ def encrypt_field(instance, field_name, ask=False):
     return '$encrypted$%s$%s' % ('AES', b64data)
 
 
-def decrypt_field(instance, field_name):
+def decrypt_field(instance, field_name, subfield=None):
     '''
     Return content of the given instance and field name decrypted.
     '''
     value = getattr(instance, field_name)
+    if isinstance(value, dict) and subfield is not None:
+        value = value[subfield]
     if not value or not value.startswith('$encrypted$'):
         return value
     algo, b64data = value[len('$encrypted$'):].split('$', 1)