diff --git a/ChangeLog b/ChangeLog
index fec3c214..d6ebf9b2 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -1,5 +1,6 @@
 2011-04-22  Milan Broz  <mbroz@redhat.com>
 	* Also support --skip option for loopaesOpen.
+	* Fix return code when passphrase is read from pipe.
 
 2011-04-18  Milan Broz  <mbroz@redhat.com>
 	* Respect maximum keyfile size paramater.
diff --git a/lib/setup.c b/lib/setup.c
index 218e9acb..33318dbe 100644
--- a/lib/setup.c
+++ b/lib/setup.c
@@ -495,7 +495,7 @@ static int volume_key_by_terminal_passphrase(struct crypt_device *cd, int keyslo
 {
 	char *passphrase_read = NULL;
 	size_t passphrase_size_read;
-	int r = -EINVAL, tries = cd->tries;
+	int r = -EINVAL, eperm = 0, tries = cd->tries;
 
 	*vk = NULL;
 	do {
@@ -509,6 +509,8 @@ static int volume_key_by_terminal_passphrase(struct crypt_device *cd, int keyslo
 
 		r = LUKS_open_key_with_hdr(cd->device, keyslot, passphrase_read,
 					   passphrase_size_read, &cd->hdr, vk, cd);
+		if (r == -EPERM)
+			eperm = 1;
 		crypt_safe_free(passphrase_read);
 		passphrase_read = NULL;
 	} while (r == -EPERM && (--tries > 0));
@@ -516,6 +518,10 @@ out:
 	if (r < 0) {
 		crypt_free_volume_key(*vk);
 		*vk = NULL;
+
+		/* Report wrong passphrase if at least one try failed */
+		if (eperm && r == -EPIPE)
+			r = -EPERM;
 	}
 
 	crypt_safe_free(passphrase_read);
diff --git a/lib/utils_crypt.c b/lib/utils_crypt.c
index dbbcf8dc..ec5773ea 100644
--- a/lib/utils_crypt.c
+++ b/lib/utils_crypt.c
@@ -278,6 +278,11 @@ int crypt_get_key(const char *prompt,
 		return -EINVAL;
 	}
 
+	if (read_stdin)
+		log_dbg("STDIN descriptor passphrase entry requested.");
+	else
+		log_dbg("File descriptor passphrase entry requested.");
+
 	/* If not requsted otherwise, we limit input to prevent memory exhaustion */
 	if (keyfile_size_max == 0) {
 		keyfile_size_max = DEFAULT_KEYFILE_SIZE_MAXKB * 1024;
@@ -337,8 +342,11 @@ int crypt_get_key(const char *prompt,
 	}
 
 	/* Fail if piped input dies reading nothing */
-	if(!i && !regular_file)
+	if(!i && !regular_file) {
+		log_dbg("Nothing read on input.");
+		r = -EPIPE;
 		goto out_err;
+	}
 
 	/* Fail if we exceeded internal default (no specified size) */
 	if (unlimited_read && i == keyfile_size_max) {