diff --git a/examples/playbooks/prompts.yml b/examples/playbooks/prompts.yml
index 08742430cb..fc9797f108 100644
--- a/examples/playbooks/prompts.yml
+++ b/examples/playbooks/prompts.yml
@@ -32,6 +32,14 @@
     - name: "release_version"
       prompt: "Product release version"
       private: False
+   
+    - name: "my_password2"
+      prompt: "Enter password2"
+      private: True
+      encrypt: "md5_crypt" 
+      confirm: True
+      salt_size: 7
+      salt: "foo" 
 
 # this is just a simple example to show that vars_prompt works, but
 # you might ask for a tag to use with the git module or perhaps
diff --git a/lib/ansible/callbacks.py b/lib/ansible/callbacks.py
index af09f02e30..10452d40ae 100644
--- a/lib/ansible/callbacks.py
+++ b/lib/ansible/callbacks.py
@@ -380,15 +380,32 @@ class PlaybookCallbacks(object):
             msg = "NOTIFIED: [%s]" % name
         print banner(msg)
 
-    def on_vars_prompt(self, varname, private=True, prompt=None):
+    def on_vars_prompt(self, varname, private=True, prompt=None, encrypt=None, confirm=False, salt_size=None, salt=None):
 
         if prompt:
             msg = prompt
         else:
             msg = 'input for %s: ' % varname
-        if private:
-            return getpass.getpass(msg)
-        return raw_input(msg)
+
+        def prompt(prompt, private):
+            if private:
+                return getpass.getpass(prompt)
+            return raw_input(prompt)
+
+
+        if confirm:
+            while True:
+                result = prompt(msg, private)
+                second = prompt("confirm " + msg, private)
+                if result == second: break
+                print "***** VALUES ENTERED DO NOT MATCH ****"
+        else:
+            result = prompt(msg, private)
+
+        if encrypt:
+            result = utils.do_encrypt(result,encrypt,salt_size,salt)
+
+        return result
 
     def on_setup(self):
 
diff --git a/lib/ansible/playbook/play.py b/lib/ansible/playbook/play.py
index 9c8b2efbb4..f93f5d17dd 100644
--- a/lib/ansible/playbook/play.py
+++ b/lib/ansible/playbook/play.py
@@ -129,7 +129,7 @@ class Play(object):
         return self._tasks
 
     def handlers(self):
-        ''' return handler objects for this play '''
+        ''' return handler objects for this play ''' 
         return self._handlers
 
     # *************************************************
@@ -159,14 +159,23 @@ class Play(object):
             for var in self.vars_prompt:
                 if not 'name' in var:
                     raise errors.AnsibleError("'vars_prompt' item is missing 'name:'")
+
                 vname = var['name']
                 prompt = "%s: " % var.get("prompt", vname)
                 private = var.get("private", True)
-                vars[vname] = self.playbook.callbacks.on_vars_prompt(vname, private, prompt)
+
+                confirm = var.get("confirm", False)
+                encrypt = var.get("encrypt", None)
+                salt_size = var.get("salt_size", None)
+                salt = var.get("salt", None)
+
+                vars[vname] = self.playbook.callbacks.on_vars_prompt(vname, private, prompt,encrypt, confirm, salt_size, salt)
+
         elif type(self.vars_prompt) == dict:
             for (vname, prompt) in self.vars_prompt.iteritems():
-                prompt = "%s: " % prompt
-                vars[vname] = self.playbook.callbacks.on_vars_prompt(vname, False, prompt)
+                prompt_msg = "%s: " % prompt
+                vars[vname] = self.playbook.callbacks.on_vars_prompt(varname=vname, private=False, prompt=prompt_msg)
+
         else:
             raise errors.AnsibleError("'vars_prompt' section is malformed, see docs")
 
diff --git a/lib/ansible/utils.py b/lib/ansible/utils.py
index 5dc0431625..b248ce8182 100644
--- a/lib/ansible/utils.py
+++ b/lib/ansible/utils.py
@@ -42,6 +42,15 @@ try:
 except ImportError:
     from md5 import md5 as _md5
 
+# vars_prompt_encrypt
+PASSLIB_AVAILABLE = False
+
+try:
+    import passlib.hash
+    PASSLIB_AVAILABLE = True
+except:
+    pass
+
 ###############################################################
 # UTILITY FUNCTIONS FOR COMMAND LINE TOOLS
 ###############################################################
@@ -383,5 +392,21 @@ def base_parser(constants=C, usage="", output_opts=False, runas_opts=False, asyn
 
     return parser
 
+def do_encrypt(result, encrypt, salt_size=None, salt=None):
+    if PASSLIB_AVAILABLE:
+        try:
+            crypt = getattr(passlib.hash, encrypt)
+        except:
+            raise errors.AnsibleError("passlib does not support '%s' algorithm" % encrypt)
 
+        if salt_size:
+            result = crypt.encrypt(result, salt_size=salt_size)
+        elif salt:
+            result = crypt.encrypt(result, salt=salt)
+        else:
+            result = crypt.encrypt(result)
+    else:
+        raise errors.AnsibleError("passlib must be installed to encrypt vars_prompt values")
+
+    return result