diff --git a/conf/sample.ini b/conf/sample.ini
index a64a03d650353..7dc14bb671513 100644
--- a/conf/sample.ini
+++ b/conf/sample.ini
@@ -268,6 +268,11 @@
 ;viewer_roles =
 ;verify_ssl_cert = true
 ;root_ca_pem_file = /etc/grafana/Keystone_CA.crt
+# Whether to store keystone password in a cookie (true) or in a session variable (false)
+;cookie_credentials = true
+# Encryption key for storing keystone password (empty = no encryption)
+# AES key should be 32 bytes
+;credential_aes_key = 123456789,123456789,123456789,12
 
 #################################### SMTP / Emailing ##########################
 [smtp]
diff --git a/pkg/api/dataproxy.go b/pkg/api/dataproxy.go
index 2b55e9197db34..0c736ed608693 100644
--- a/pkg/api/dataproxy.go
+++ b/pkg/api/dataproxy.go
@@ -11,6 +11,7 @@ import (
 	"github.com/grafana/grafana/pkg/api/cloudwatch"
 	"github.com/grafana/grafana/pkg/api/keystone"
 	"github.com/grafana/grafana/pkg/bus"
+	"github.com/grafana/grafana/pkg/log"
 	"github.com/grafana/grafana/pkg/metrics"
 	"github.com/grafana/grafana/pkg/middleware"
 	m "github.com/grafana/grafana/pkg/models"
@@ -67,6 +68,8 @@ func NewReverseProxy(ds *m.DataSource, proxyPath string, targetUrl *url.URL) *ht
 		// clear cookie headers
 		req.Header.Del("Cookie")
 		req.Header.Del("Set-Cookie")
+
+		log.Info("Proxying call to %s", req.URL.String())
 	}
 
 	return &httputil.ReverseProxy{Director: director, FlushInterval: time.Millisecond * 200}
diff --git a/pkg/api/keystone/keystone.go b/pkg/api/keystone/keystone.go
index 7ca8d63dd5476..8057314527111 100644
--- a/pkg/api/keystone/keystone.go
+++ b/pkg/api/keystone/keystone.go
@@ -3,11 +3,17 @@ package keystone
 import (
 	"time"
 
+	"crypto/aes"
+	"crypto/cipher"
+	"crypto/rand"
+	"encoding/base64"
 	"errors"
 	"github.com/grafana/grafana/pkg/bus"
+	"github.com/grafana/grafana/pkg/log"
 	"github.com/grafana/grafana/pkg/middleware"
 	m "github.com/grafana/grafana/pkg/models"
 	"github.com/grafana/grafana/pkg/setting"
+	"io"
 )
 
 const (
@@ -19,7 +25,13 @@ const (
 
 func getUserName(c *middleware.Context) (string, error) {
 	var keystoneUserIdObj interface{}
-	if keystoneUserIdObj = c.Session.Get(middleware.SESS_KEY_USERID); keystoneUserIdObj == nil {
+	if setting.KeystoneCookieCredentials {
+		if keystoneUserIdObj = c.GetCookie(setting.CookieUserName); keystoneUserIdObj == nil {
+			return "", errors.New("Couldn't find cookie containing keystone userId")
+		} else {
+			return keystoneUserIdObj.(string), nil
+		}
+	} else if keystoneUserIdObj = c.Session.Get(middleware.SESS_KEY_USERID); keystoneUserIdObj == nil {
 		return "", errors.New("Session timed out trying to get keystone userId")
 	}
 
@@ -53,8 +65,23 @@ func getNewToken(c *middleware.Context) (string, error) {
 	}
 
 	var keystonePasswordObj interface{}
-	if keystonePasswordObj = c.Session.Get(middleware.SESS_KEY_PASSWORD); keystonePasswordObj == nil {
+	if setting.KeystoneCookieCredentials {
+		if keystonePasswordObj = c.GetCookie(middleware.SESS_KEY_PASSWORD); keystonePasswordObj == nil {
+			return "", errors.New("Couldn't find cookie containing keystone password")
+		} else {
+			log.Debug("Got password from cookie")
+		}
+	} else if keystonePasswordObj = c.Session.Get(middleware.SESS_KEY_PASSWORD); keystonePasswordObj == nil {
 		return "", errors.New("Session timed out trying to get keystone password")
+	} else if keystonePasswordObj != nil {
+		log.Debug("Got password from session")
+	}
+
+	if setting.KeystoneCredentialAesKey != "" {
+		keystonePasswordObj = decryptPassword(keystonePasswordObj.(string))
+		log.Debug("Decrypted password")
+	} else {
+		log.Warn("Password stored in cleartext!")
 	}
 
 	auth := Auth_data{
@@ -65,6 +92,11 @@ func getNewToken(c *middleware.Context) (string, error) {
 		Server:   setting.KeystoneURL,
 	}
 	if err := AuthenticateScoped(&auth); err != nil {
+		if setting.KeystoneCookieCredentials {
+			c.SetCookie(middleware.SESS_KEY_PASSWORD, "", -1, setting.AppSubUrl+"/", nil, middleware.IsSecure(c), true)
+		} else {
+			c.Session.Set(middleware.SESS_KEY_PASSWORD, nil)
+		}
 		return "", err
 	}
 
@@ -124,3 +156,42 @@ func GetToken(c *middleware.Context) (string, error) {
 	}
 	return token, nil
 }
+
+func EncryptPassword(password string) string {
+	key := []byte(setting.KeystoneCredentialAesKey)
+	block, err := aes.NewCipher(key)
+	if err != nil {
+		log.Error(3, "Error: NewCipher(%d bytes) = %s", len(setting.KeystoneCredentialAesKey), err)
+	}
+	ciphertext := make([]byte, aes.BlockSize+len(password))
+	iv := ciphertext[:aes.BlockSize]
+	if _, err := io.ReadFull(rand.Reader, iv); err != nil {
+		log.Error(3, "Error: %s", err)
+	}
+	stream := cipher.NewOFB(block, iv)
+	stream.XORKeyStream(ciphertext[aes.BlockSize:], []byte(password))
+
+	return base64.StdEncoding.EncodeToString(ciphertext)
+}
+
+func decryptPassword(base64ciphertext string) string {
+	key := []byte(setting.KeystoneCredentialAesKey)
+	block, err := aes.NewCipher(key)
+	if err != nil {
+		log.Error(3, "Error: NewCipher(%d bytes) = %s", len(setting.KeystoneCredentialAesKey), err)
+	}
+	ciphertext, err := base64.StdEncoding.DecodeString(base64ciphertext)
+	if err != nil {
+		log.Error(3, "Error: %s", err)
+		return ""
+	}
+	iv := ciphertext[:aes.BlockSize]
+	if aes.BlockSize > len(ciphertext) {
+		log.Error(3, "Error: ciphertext %s is shorter than AES blocksize %d", ciphertext, aes.BlockSize)
+		return ""
+	}
+	password := make([]byte, len(ciphertext)-aes.BlockSize)
+	stream := cipher.NewOFB(block, iv)
+	stream.XORKeyStream(password, ciphertext[aes.BlockSize:])
+	return string(password)
+}
diff --git a/pkg/api/login.go b/pkg/api/login.go
index 76bee051cf01e..e79fcdce686b9 100644
--- a/pkg/api/login.go
+++ b/pkg/api/login.go
@@ -4,6 +4,7 @@ import (
 	"net/url"
 
 	"github.com/grafana/grafana/pkg/api/dtos"
+	"github.com/grafana/grafana/pkg/api/keystone"
 	"github.com/grafana/grafana/pkg/bus"
 	"github.com/grafana/grafana/pkg/log"
 	"github.com/grafana/grafana/pkg/login"
@@ -112,7 +113,21 @@ func LoginPost(c *middleware.Context, cmd dtos.LoginCommand) Response {
 	loginUserWithUser(user, c)
 
 	if setting.KeystoneEnabled {
-		c.Session.Set(middleware.SESS_KEY_PASSWORD, cmd.Password)
+		if setting.KeystoneCredentialAesKey != "" {
+			cmd.Password = keystone.EncryptPassword(cmd.Password)
+		}
+		if setting.KeystoneCookieCredentials {
+			log.Debug("c.Req.Header.Get(\"X-Forwarded-Proto\"): %s", c.Req.Header.Get("X-Forwarded-Proto"))
+			var days interface{}
+			if setting.LogInRememberDays == 0 {
+				days = nil
+			} else {
+				days = 86400 * setting.LogInRememberDays
+			}
+			c.SetCookie(middleware.SESS_KEY_PASSWORD, cmd.Password, days, setting.AppSubUrl+"/", nil, middleware.IsSecure(c), true)
+		} else {
+			c.Session.Set(middleware.SESS_KEY_PASSWORD, cmd.Password)
+		}
 	}
 
 	result := map[string]interface{}{
@@ -136,16 +151,18 @@ func loginUserWithUser(user *m.User, c *middleware.Context) {
 
 	days := 86400 * setting.LogInRememberDays
 	if days > 0 {
-		c.SetCookie(setting.CookieUserName, user.Login, days, setting.AppSubUrl+"/")
-		c.SetSuperSecureCookie(util.EncodeMd5(user.Rands+user.Password), setting.CookieRememberName, user.Login, days, setting.AppSubUrl+"/")
+		c.SetCookie(setting.CookieUserName, user.Login, days, setting.AppSubUrl+"/", nil, middleware.IsSecure(c), true)
+		c.SetSuperSecureCookie(util.EncodeMd5(user.Rands+user.Password),
+			setting.CookieRememberName, user.Login, days, setting.AppSubUrl+"/", nil, middleware.IsSecure(c), true)
 	}
 
 	c.Session.Set(middleware.SESS_KEY_USERID, user.Id)
 }
 
 func Logout(c *middleware.Context) {
-	c.SetCookie(setting.CookieUserName, "", -1, setting.AppSubUrl+"/")
-	c.SetCookie(setting.CookieRememberName, "", -1, setting.AppSubUrl+"/")
+	c.SetCookie(setting.CookieUserName, "", -1, setting.AppSubUrl+"/", nil, middleware.IsSecure(c), true)
+	c.SetCookie(setting.CookieRememberName, "", -1, setting.AppSubUrl+"/", nil, middleware.IsSecure(c), true)
+	c.SetCookie(middleware.SESS_KEY_PASSWORD, "", -1, setting.AppSubUrl+"/", nil, middleware.IsSecure(c), true)
 	c.Session.Destory(c)
 	c.Redirect(setting.AppSubUrl + "/login")
 }
diff --git a/pkg/middleware/middleware.go b/pkg/middleware/middleware.go
index a546d7e76fc3b..c3e4bbc850f92 100644
--- a/pkg/middleware/middleware.go
+++ b/pkg/middleware/middleware.go
@@ -232,3 +232,7 @@ func (ctx *Context) HasUserRole(role m.RoleType) bool {
 func (ctx *Context) TimeRequest(timer metrics.Timer) {
 	ctx.Data["perfmon.timer"] = timer
 }
+
+func IsSecure(ctx *Context) bool {
+	return (ctx.Req.TLS != nil) || (ctx.Req.Header.Get("X-Forwarded-Proto") == "https")
+}
diff --git a/pkg/middleware/session.go b/pkg/middleware/session.go
index 8858abfbd8924..1189858ba3df9 100644
--- a/pkg/middleware/session.go
+++ b/pkg/middleware/session.go
@@ -12,10 +12,9 @@ import (
 )
 
 const (
-	SESS_KEY_USERID = "uid"
+	SESS_KEY_USERID      = "uid"
 	SESS_KEY_OAUTH_STATE = "state"
-	SESS_KEY_APIKEY = "apikey_id" // used fror render requests with api keys
-	SESS_KEY_PASSWORD = "password"
+	SESS_KEY_PASSWORD    = "grafana_password"
 )
 
 var sessionManager *session.Manager
diff --git a/pkg/setting/setting.go b/pkg/setting/setting.go
index d24b0d7408ded..c0f459d125d77 100644
--- a/pkg/setting/setting.go
+++ b/pkg/setting/setting.go
@@ -139,17 +139,19 @@ var (
 	LdapAllowSignup bool = true
 
 	// Keystone
-	KeystoneEnabled          bool
-	KeystoneURL              string
-	KeystoneDefaultDomain    string
-	KeystoneDefaultRole      string
-	KeystoneViewerRoles      []string
-	KeystoneReadEditorRoles  []string
-	KeystoneEditorRoles      []string
-	KeystoneAdminRoles       []string
-	KeystoneGlobalAdminRoles []string
-	KeystoneVerifySSLCert    bool
-	KeystoneRootCAPEMFile    string
+	KeystoneEnabled           bool
+	KeystoneCookieCredentials bool
+	KeystoneCredentialAesKey  string
+	KeystoneURL               string
+	KeystoneDefaultDomain     string
+	KeystoneDefaultRole       string
+	KeystoneViewerRoles       []string
+	KeystoneReadEditorRoles   []string
+	KeystoneEditorRoles       []string
+	KeystoneAdminRoles        []string
+	KeystoneGlobalAdminRoles  []string
+	KeystoneVerifySSLCert     bool
+	KeystoneRootCAPEMFile     string
 
 	// SMTP email settings
 	Smtp SmtpSettings
@@ -572,6 +574,8 @@ func NewConfigContext(args *CommandLineArgs) error {
 
 	keystone := Cfg.Section("auth.keystone")
 	KeystoneEnabled = keystone.Key("enabled").MustBool(false)
+	KeystoneCookieCredentials = keystone.Key("cookie_credentials").MustBool(false)
+	KeystoneCredentialAesKey = keystone.Key("credential_aes_key").String()
 	KeystoneURL = keystone.Key("auth_url").String()
 	KeystoneDefaultDomain = keystone.Key("default_domain").String()
 	KeystoneDefaultRole = keystone.Key("default_role").String()