diff --git a/bgpd/bgpd.c b/bgpd/bgpd.c
index 0b3f0a8..c9a04ff 100644
--- a/bgpd/bgpd.c
+++ b/bgpd/bgpd.c
@@ -1457,13 +1457,8 @@
     peer->v_routeadv = BGP_DEFAULT_EBGP_ROUTEADV;
 
   /* password apply */
-  if (peer->password)
-    XFREE (MTYPE_PEER_PASSWORD, peer->password);
-
-  if (conf->password)
+  if (conf->password && !peer->password)
     peer->password =  XSTRDUP (MTYPE_PEER_PASSWORD, conf->password);
-  else
-    peer->password = NULL;
 
   bgp_md5_set (peer);