diff --git a/lib/devise/strategies/database_authenticatable.rb b/lib/devise/strategies/database_authenticatable.rb
index bccebb25..e0a38a10 100644
--- a/lib/devise/strategies/database_authenticatable.rb
+++ b/lib/devise/strategies/database_authenticatable.rb
@@ -5,13 +5,16 @@ module Devise
     # Default strategy for signing in a user, based on his email and password in the database.
     class DatabaseAuthenticatable < Authenticatable
       def authenticate!
-        resource = valid_password? && mapping.to.find_for_database_authentication(authentication_hash)
-        return fail(:not_found_in_database) unless resource
+        resource  = valid_password? && mapping.to.find_for_database_authentication(authentication_hash)
+        encrypted = false
 
-        if validate(resource){ resource.valid_password?(password) }
+        if validate(resource){ encrypted = true; resource.valid_password?(password) }
           resource.after_database_authentication
           success!(resource)
         end
+
+        mapping.to.new.password = password if !encrypted && Devise.paranoid
+        fail(:not_found_in_database) unless resource
       end
     end
   end