diff --git a/daemons/ipa-kdb/ipa_kdb.h b/daemons/ipa-kdb/ipa_kdb.h
index f2f21c6e0..08c24ae64 100644
--- a/daemons/ipa-kdb/ipa_kdb.h
+++ b/daemons/ipa-kdb/ipa_kdb.h
@@ -141,6 +141,7 @@ struct ipadb_e_data {
     time_t last_admin_unlock;
     char **authz_data;
     bool has_tktpolaux;
+    enum ipadb_user_auth user_auth;
 };
 
 struct ipadb_context *ipadb_get_context(krb5_context kcontext);
diff --git a/daemons/ipa-kdb/ipa_kdb_kdcpolicy.c b/daemons/ipa-kdb/ipa_kdb_kdcpolicy.c
index 66e49d637..6b61f162e 100644
--- a/daemons/ipa-kdb/ipa_kdb_kdcpolicy.c
+++ b/daemons/ipa-kdb/ipa_kdb_kdcpolicy.c
@@ -18,12 +18,82 @@ ipa_kdcpolicy_check_as(krb5_context context, krb5_kdcpolicy_moddata moddata,
                        const char **status, krb5_deltat *lifetime_out,
                        krb5_deltat *renew_lifetime_out)
 {
+    krb5_error_code kerr;
+    enum ipadb_user_auth ua;
+    struct ipadb_e_data *ied;
+    int valid_auth_indicators = 0;
+
     *status = NULL;
     *lifetime_out = 0;
     *renew_lifetime_out = 0;
 
     krb5_klog_syslog(LOG_INFO, "IPA kdcpolicy: checking AS-REQ.");
 
+    ied = (struct ipadb_e_data *)client->e_data;
+    if (ied == NULL || ied->magic != IPA_E_DATA_MAGIC) {
+        /* e-data is not availble, getting user auth from LDAP */
+        krb5_klog_syslog(LOG_INFO, "IPA kdcpolicy: client e_data not availble. Try fetching...");
+        kerr = ipadb_get_principal(context, request->client, KRB5_KDB_FLAG_ALIAS_OK, &client);
+        if (kerr != 0) {
+            krb5_klog_syslog(LOG_ERR, "IPA kdcpolicy: ipadb_find_principal failed.");
+            return kerr;
+        }
+
+        ied = (struct ipadb_e_data *)client->e_data;
+        if (ied == NULL && ied->magic != IPA_E_DATA_MAGIC) {
+            krb5_klog_syslog(LOG_ERR, "IPA kdcpolicy: client e_data fetching failed.");
+            return EINVAL;
+        }
+    }
+
+    ua = ied->user_auth;
+    
+    /* If no mechanisms are set, allow every auth method */
+    if (ua == IPADB_USER_AUTH_NONE) {
+        return 0;
+    }
+
+    /* For each auth indicator, see if it is allowed for that user */
+    for (int i = 0; auth_indicators[i] != NULL; i++) {
+        const char *auth_indicator = auth_indicators[i];
+
+        if (strcmp(auth_indicator, "otp") == 0) {
+            valid_auth_indicators++;
+            if (!(ua & IPADB_USER_AUTH_OTP)) {
+                *status = "OTP pre-authentication not allowed for this user.";
+                return KRB5KDC_ERR_POLICY;
+            }
+        } else if (strcmp(auth_indicator, "radius") == 0) {
+            valid_auth_indicators++;
+            if (!(ua & IPADB_USER_AUTH_RADIUS)) {
+                *status = "OTP pre-authentication not allowed for this user.";
+                return KRB5KDC_ERR_POLICY;
+            }
+        } else if (strcmp(auth_indicator, "pkinit") == 0) {
+            valid_auth_indicators++;
+            if (!(ua & IPADB_USER_AUTH_PKINIT)) {
+                *status = "PKINIT pre-authentication not allowed for this user.";
+                return KRB5KDC_ERR_POLICY;
+            }
+        } else if (strcmp(auth_indicator, "hardened") == 0) {
+            valid_auth_indicators++;
+            /* Allow hardened even if only password pre-auth is allowed */
+            if (!(ua & (IPADB_USER_AUTH_HARDENED | IPADB_USER_AUTH_PASSWORD))) {
+                *status = "Password pre-authentication not not allowed for this user.";
+                return KRB5KDC_ERR_POLICY;
+            }
+        }
+    }
+
+    /* There is no auth indicator assigned for non-hardened password authentication
+     * so we assume password is used when no supported indicator exists */
+    if (!valid_auth_indicators) {
+        if (!(ua & IPADB_USER_AUTH_PASSWORD)) {
+            *status = "Non-hardened password authentication not allowed for this user.";
+            return KRB5KDC_ERR_POLICY;
+        }
+    }
+
     return 0;
 }
 
diff --git a/daemons/ipa-kdb/ipa_kdb_principals.c b/daemons/ipa-kdb/ipa_kdb_principals.c
index 731348e01..58f462f8a 100644
--- a/daemons/ipa-kdb/ipa_kdb_principals.c
+++ b/daemons/ipa-kdb/ipa_kdb_principals.c
@@ -318,15 +318,6 @@ static void ipadb_validate_radius(struct ipadb_context *ipactx,
         ldap_value_free_len(vals);
 }
 
-static void ipadb_validate_password(struct ipadb_context *ipactx,
-                                    LDAPMessage *lentry,
-                                    enum ipadb_user_auth *ua)
-{
-    /* If no mechanisms are set, use password. */
-    if (*ua == IPADB_USER_AUTH_NONE)
-        *ua |= IPADB_USER_AUTH_PASSWORD;
-}
-
 static enum ipadb_user_auth ipadb_get_user_auth(struct ipadb_context *ipactx,
                                                 LDAPMessage *lentry)
 {
@@ -354,7 +345,6 @@ static enum ipadb_user_auth ipadb_get_user_auth(struct ipadb_context *ipactx,
     /* Perform flag validation. */
     ipadb_validate_otp(ipactx, lentry, &ua);
     ipadb_validate_radius(ipactx, lentry, &ua);
-    ipadb_validate_password(ipactx, lentry, &ua);
 
     return ua;
 }
@@ -708,13 +698,6 @@ static krb5_error_code ipadb_parse_ldap_entry(krb5_context kcontext,
                                       &res_key_data, &result, &mkvno);
     switch (ret) {
     case 0:
-        /* Only set a principal's key if password auth should be used. */
-        if (!(ua & IPADB_USER_AUTH_PASSWORD)) {
-            /* This is the same behavior as ENOENT below. */
-            ipa_krb5_free_key_data(res_key_data, result);
-            break;
-        }
-
         entry->key_data = res_key_data;
         entry->n_key_data = result;
         if (mkvno) {
@@ -851,6 +834,8 @@ static krb5_error_code ipadb_parse_ldap_entry(krb5_context kcontext,
         ied->authz_data = authz_data_list;
     }
 
+    ied->user_auth = ua;
+
     /* If enabled, set the otp user string, enabling otp. */
     if (ua & IPADB_USER_AUTH_OTP) {
         kerr = ipadb_set_tl_data(entry, KRB5_TL_STRING_ATTRS,