diff --git a/psycopg/psycopgmodule.c b/psycopg/psycopgmodule.c
index 121bf133f..1b0567b37 100644
--- a/psycopg/psycopgmodule.c
+++ b/psycopg/psycopgmodule.c
@@ -957,7 +957,7 @@ static PyMethodDef psycopgMethods[] = {
     {"get_wait_callback",  (PyCFunction)psyco_get_wait_callback,
      METH_NOARGS, psyco_get_wait_callback_doc},
     {"encrypt_password", (PyCFunction)psyco_encrypt_password,
-     METH_VARARGS, psyco_encrypt_password_doc},
+     METH_VARARGS|METH_KEYWORDS, psyco_encrypt_password_doc},
 
     {NULL, NULL, 0, NULL}        /* Sentinel */
 };
diff --git a/tests/test_connection.py b/tests/test_connection.py
index f8d2d1d27..7861ab714 100755
--- a/tests/test_connection.py
+++ b/tests/test_connection.py
@@ -1421,6 +1421,13 @@ def test_encrypt_password_post_9_6(self):
             'md594839d658c28a357126f105b9cb14cfc'
         )
 
+        # keywords
+        self.assertEqual(
+            ext.encrypt_password(
+                password='psycopg2', user='ashesh',
+                scope=self.conn, algorithm='md5'),
+            'md594839d658c28a357126f105b9cb14cfc'
+        )
         if libpq_version() < 100000:
             self.assertRaises(
                 psycopg2.NotSupportedError,
@@ -1444,6 +1451,9 @@ def test_encrypt_password_post_9_6(self):
                 )[:14], 'SCRAM-SHA-256$'
             )
 
+        self.assertRaises(psycopg2.ProgrammingError,
+            ext.encrypt_password, 'psycopg2', 'ashesh', self.conn, 'abc')
+
     @skip_after_postgres(10)
     def test_encrypt_password_pre_10(self):
         self.assertEqual(
@@ -1451,11 +1461,27 @@ def test_encrypt_password_pre_10(self):
             'md594839d658c28a357126f105b9cb14cfc'
         )
 
-        # Encryption algorithm will be ignored for postgres version < 10, it
-        # will always use MD5.
         self.assertRaises(psycopg2.ProgrammingError,
             ext.encrypt_password, 'psycopg2', 'ashesh', self.conn, 'abc')
 
+    def test_encrypt_md5(self):
+        self.assertEqual(
+            ext.encrypt_password('psycopg2', 'ashesh', algorithm='md5'),
+            'md594839d658c28a357126f105b9cb14cfc'
+        )
+
+    def test_encrypt_scram(self):
+        if libpq_version() >= 100000:
+            self.assert_(
+                ext.encrypt_password(
+                    'psycopg2', 'ashesh', self.conn, 'scram-sha-256')
+                .startswith('SCRAM-SHA-256$'))
+        else:
+            self.assertRaises(psycopg2.NotSupportedError,
+                ext.encrypt_password,
+                password='psycopg2', user='ashesh',
+                scope=self.conn, algorithm='scram-sha-256')
+
 
 class AutocommitTests(ConnectingTestCase):
     def test_closed(self):