diff --git a/useradmin/CHANGELOG b/useradmin/CHANGELOG
index 5ed6c4cb0..1b3994096 100644
--- a/useradmin/CHANGELOG
+++ b/useradmin/CHANGELOG
@@ -35,3 +35,4 @@ Use the nscd -i command to refresh its cache after adding a user or group.
 In a user batch file, # is only treated as a comment at the start of a line.
 ---- Changes since 1.380 ----
 The real base directory for homes is now respected when batch creating users.
+Improved MD5 encryption auto-detection with newer PAM config files.
diff --git a/useradmin/linux-lib.pl b/useradmin/linux-lib.pl
index 30cadf14f..e1589ed7f 100644
--- a/useradmin/linux-lib.pl
+++ b/useradmin/linux-lib.pl
@@ -69,7 +69,7 @@ if (&foreign_check("pam")) {
 	&foreign_require("pam", "pam-lib.pl");
 	local @conf = &foreign_call("pam", "get_pam_config");
 	local ($svc) = grep { $_->{'name'} eq 'passwd' } @conf;
-	LOOP: foreach $m (@{$svc->{'mods'}}) {
+	LOOP: foreach my $m (@{$svc->{'mods'}}) {
 		if ($m->{'type'} eq 'password') {
 			if ($m->{'args'} =~ /md5/) { $md5++; }
 			elsif ($m->{'module'} =~ /pam_stack\.so/ &&
@@ -79,6 +79,13 @@ if (&foreign_check("pam")) {
 				if ($svc) { goto LOOP }
 				else { last; }
 				}
+                        elsif ($m->{'control'} eq 'include') {
+                                # Include another section
+                                ($svc) = grep { $_->{'name'} eq $m->{'module'} }
+					      @conf;
+                                if ($svc) { goto LOOP }
+                                else { last; }
+                                }
 			}
 		}
 	}