diff --git a/src/ejabberd_service.erl b/src/ejabberd_service.erl
index 9d9f0294e..f80675c8e 100644
--- a/src/ejabberd_service.erl
+++ b/src/ejabberd_service.erl
@@ -53,8 +53,8 @@
 	{socket                    :: ejabberd_socket:socket_state(),
          sockmod = ejabberd_socket :: ejabberd_socket | ejabberd_frontend_socket,
          streamid = <<"">>         :: binary(),
-         hosts = []                :: [binary()],
-         password = <<"">>         :: binary(),
+         host_opts = dict:new()    :: ?TDICT,
+         host = <<"">>             :: binary(),
          access                    :: atom(),
 	 check_from = true         :: boolean()}).
 
@@ -126,18 +126,21 @@ init([{SockMod, Socket}, Opts]) ->
 	       {value, {_, A}} -> A;
 	       _ -> all
 	     end,
-    %% This should be improved probably
-    {Hosts, HostOpts} = case lists:keyfind(hosts, 1, Opts) of
-                            {_, HOpts} ->
-                                {[H || {H, _} <- HOpts],
-                                 lists:flatten(
-                                   [O || {_, O} <- HOpts])};
-                            _ ->
-                                {[], []}
-                        end,
-    Password = gen_mod:get_opt(password, HostOpts,
-                               fun iolist_to_binary/1,
-                               p1_sha:sha(crypto:rand_bytes(20))),
+    HostOpts = case lists:keyfind(hosts, 1, Opts) of
+		   {hosts, HOpts} ->
+		       lists:foldl(
+			 fun({H, Os}, D) ->
+				 P = proplists:get_value(
+				       password, Os,
+				       p1_sha:sha(crypto:rand_bytes(20))),
+				 dict:store(H, P, D)
+			 end, dict:new(), HOpts);
+		   false ->
+		       Pass = proplists:get_value(
+				password, Opts,
+				p1_sha:sha(crypto:rand_bytes(20))),
+		       dict:from_list([{global, Pass}])
+	       end,
     Shaper = case lists:keysearch(shaper_rule, 1, Opts) of
 	       {value, {_, S}} -> S;
 	       _ -> none
@@ -151,7 +154,7 @@ init([{SockMod, Socket}, Opts]) ->
     SockMod:change_shaper(Socket, Shaper),
     {ok, wait_for_stream,
      #state{socket = Socket, sockmod = SockMod,
-	    streamid = new_id(), hosts = Hosts, password = Password,
+	    streamid = new_id(), host_opts = HostOpts,
 	    access = Access, check_from = CheckFrom}}.
 
 %%----------------------------------------------------------------------
@@ -166,10 +169,33 @@ wait_for_stream({xmlstreamstart, _Name, Attrs},
     case xml:get_attr_s(<<"xmlns">>, Attrs) of
       <<"jabber:component:accept">> ->
 	  To = xml:get_attr_s(<<"to">>, Attrs),
-	  Header = io_lib:format(?STREAM_HEADER,
-				 [StateData#state.streamid, xml:crypt(To)]),
-	  send_text(StateData, Header),
-	  {next_state, wait_for_handshake, StateData};
+	  Host = jid:nameprep(To),
+	  if Host == error ->
+		  Header = io_lib:format(?STREAM_HEADER,
+					 [<<"none">>, ?MYNAME]),
+		  send_text(StateData,
+			    <<(list_to_binary(Header))/binary,
+			      (?INVALID_XML_ERR)/binary,
+			      (?STREAM_TRAILER)/binary>>),
+		  {stop, normal, StateData};
+	     true ->
+		  Header = io_lib:format(?STREAM_HEADER,
+					 [StateData#state.streamid, xml:crypt(To)]),
+		  send_text(StateData, Header),
+		  HostOpts = case dict:is_key(Host, StateData#state.host_opts) of
+				 true ->
+				     StateData#state.host_opts;
+				 false ->
+				     case dict:find(global, StateData#state.host_opts) of
+					 {ok, GlobalPass} ->
+					     dict:from_list([{Host, GlobalPass}]);
+					 error ->
+					     StateData#state.host_opts
+				     end
+			     end,
+		  {next_state, wait_for_handshake,
+		   StateData#state{host = Host, host_opts = HostOpts}}
+	  end;
       _ ->
 	  send_text(StateData, ?INVALID_HEADER_ERR),
 	  {stop, normal, StateData}
@@ -188,21 +214,26 @@ wait_for_handshake({xmlstreamelement, El}, StateData) ->
     #xmlel{name = Name, children = Els} = El,
     case {Name, xml:get_cdata(Els)} of
       {<<"handshake">>, Digest} ->
-	  case p1_sha:sha(<<(StateData#state.streamid)/binary,
-			 (StateData#state.password)/binary>>)
-	      of
-	    Digest ->
-		send_text(StateData, <<"<handshake/>">>),
-		lists:foreach(fun (H) ->
-				      ejabberd_router:register_route(H),
-				      ?INFO_MSG("Route registered for service ~p~n",
-						[H])
-			      end,
-			      StateData#state.hosts),
-		{next_state, stream_established, StateData};
-	    _ ->
-		send_text(StateData, ?INVALID_HANDSHAKE_ERR),
-		{stop, normal, StateData}
+	  case dict:find(StateData#state.host, StateData#state.host_opts) of
+	      {ok, Password} ->
+		  case p1_sha:sha(<<(StateData#state.streamid)/binary,
+				    Password/binary>>) of
+		      Digest ->
+			  send_text(StateData, <<"<handshake/>">>),
+			  lists:foreach(
+			    fun (H) ->
+				    ejabberd_router:register_route(H),
+				    ?INFO_MSG("Route registered for service ~p~n",
+					      [H])
+			    end, dict:fetch_keys(StateData#state.host_opts)),
+			  {next_state, stream_established, StateData};
+		      _ ->
+			  send_text(StateData, ?INVALID_HANDSHAKE_ERR),
+			  {stop, normal, StateData}
+		  end;
+	      _ ->
+		  send_text(StateData, ?INVALID_HANDSHAKE_ERR),
+		  {stop, normal, StateData}
 	  end;
       _ -> {next_state, wait_for_handshake, StateData}
     end;
@@ -231,7 +262,7 @@ stream_established({xmlstreamelement, El}, StateData) ->
 		    FromJID1 = jid:from_string(From),
 		    case FromJID1 of
 		      #jid{lserver = Server} ->
-			  case lists:member(Server, StateData#state.hosts) of
+			  case dict:is_key(Server, StateData#state.host_opts) of
 			    true -> FromJID1;
 			    false -> error
 			  end;
@@ -349,7 +380,7 @@ terminate(Reason, StateName, StateData) ->
 	  lists:foreach(fun (H) ->
 				ejabberd_router:unregister_route(H)
 			end,
-			StateData#state.hosts);
+			dict:fetch_keys(StateData#state.host_opts));
       _ -> ok
     end,
     (StateData#state.sockmod):close(StateData#state.socket),