diff --git a/src/util/system.cpp b/src/util/system.cpp
index 8e201ec590..ffe4d21ee3 100644
--- a/src/util/system.cpp
+++ b/src/util/system.cpp
@@ -865,7 +865,7 @@ static bool GetConfigOptions(std::istream& stream, std::string& error, std::vect
             } else if ((pos = str.find('=')) != std::string::npos) {
                 std::string name = prefix + TrimString(str.substr(0, pos), pattern);
                 std::string value = TrimString(str.substr(pos + 1), pattern);
-                if (used_hash && name == "rpcpassword") {
+                if (used_hash && name.find("rpcpassword") != std::string::npos) {
                     error = strprintf("parse error on line %i, using # in rpcpassword can be ambiguous and should be avoided", linenr);
                     return false;
                 }
diff --git a/test/functional/feature_config_args.py b/test/functional/feature_config_args.py
index d87eabaa6d..4b3f6603a2 100755
--- a/test/functional/feature_config_args.py
+++ b/test/functional/feature_config_args.py
@@ -33,6 +33,14 @@ class ConfArgsTest(BitcoinTestFramework):
             conf.write('server=1\nrpcuser=someuser\nrpcpassword=some#pass')
         self.nodes[0].assert_start_raises_init_error(expected_msg='Error reading configuration file: parse error on line 3, using # in rpcpassword can be ambiguous and should be avoided')
 
+        with open(inc_conf_file_path, 'w', encoding='utf-8') as conf:
+            conf.write('server=1\nrpcuser=someuser\nmain.rpcpassword=some#pass')
+        self.nodes[0].assert_start_raises_init_error(expected_msg='Error reading configuration file: parse error on line 3, using # in rpcpassword can be ambiguous and should be avoided')
+
+        with open(inc_conf_file_path, 'w', encoding='utf-8') as conf:
+            conf.write('server=1\nrpcuser=someuser\n[main]\nrpcpassword=some#pass')
+        self.nodes[0].assert_start_raises_init_error(expected_msg='Error reading configuration file: parse error on line 4, using # in rpcpassword can be ambiguous and should be avoided')
+
         with open(inc_conf_file_path, 'w', encoding='utf-8') as conf:
             conf.write('testnot.datadir=1\n[testnet]\n')
         self.restart_node(0)