diff --git a/ChangeLog b/ChangeLog
index 6f775248..c80b2885 100644
--- a/ChangeLog
+++ b/ChangeLog
@@ -7,6 +7,7 @@
 	* Add required parameters for changing hash used in LUKS key setup scheme.
 	* Do not export simple XOR helper now used only inside AF functions.
 	* Completely remove internal SHA1 implementanion code, not needed anymore.
+	* Enable hash algorithm selection for LUKS through -h luksFormat option.
 
 2009-07-28  Milan Broz  <mbroz@redhat.com>
 	* Pad luks header to 512 sector size.
diff --git a/luks/Makefile.am b/luks/Makefile.am
index ccad9918..a2fcc05b 100644
--- a/luks/Makefile.am
+++ b/luks/Makefile.am
@@ -78,6 +78,12 @@ test:
 	@sync
 	testing/fileDiffer.py $(IMG) $(ORIG_IMG) $(LUKS_HEADER) $(KEY_SLOT0) $(KEY_MATERIAL0)
 
+	@echo Case: format using hash sha512
+	@cp $(IMG) $(ORIG_IMG)
+	echo "key0" | ../src/cryptsetup -v -i 1000 -h sha512 -c aes-cbc-essiv:sha256 luksFormat $(LOOPDEV)
+	@sync
+	testing/fileDiffer.py $(IMG) $(ORIG_IMG) $(LUKS_HEADER) $(KEY_SLOT0) $(KEY_MATERIAL0)
+
 	@echo Case: open 
 # Image must not change
 	@cp $(IMG) $(ORIG_IMG)
diff --git a/man/cryptsetup.8 b/man/cryptsetup.8
index c5c63d5b..a1c516ec 100644
--- a/man/cryptsetup.8
+++ b/man/cryptsetup.8
@@ -84,7 +84,14 @@ For more information about LUKS, see \fBhttp://code.google.com/p/cryptsetup/wiki
 .SH OPTIONS
 .TP
 .B "\-\-hash, \-h"
-specifies hash to use for password hashing. This option is only relevant for \fIcreate\fR action. The hash string is passed to libgcrypt, so all hashes accepted by gcrypt are supported. Default is "ripemd160".
+For \fIcreate\fR action specifies hash to use for password hashing.
+
+For \fIluksFormat\fR action specifies hash used in LUKS key setup scheme and volume key digest.
+
+\fBWARNING:\fR setting hash other than \fBsha1\fR causes LUKS device incompatible with older version of cryptsetup.
+
+The hash string is passed to libgcrypt, so all hashes accepted by gcrypt are supported.
+Default is \fB"ripemd160"\fR for \fIcreate\fR action and \fB"sha1"\fR for \fIluksFormat\fR.
 .TP
 .B "\-\-cipher, \-c"
 set cipher specification string. For plain dm-crypt mappings, the default is "aes-cbc-plain", for LUKS mappings it's "aes-cbc-essiv:sha256". For pre-2.6.10 kernels, use "aes-plain" as they don't understand the new cipher spec strings. To use ESSIV, use "aes-cbc-essiv:sha256".
diff --git a/src/cryptsetup.c b/src/cryptsetup.c
index 3a1e42f3..075a12a8 100644
--- a/src/cryptsetup.c
+++ b/src/cryptsetup.c
@@ -258,9 +258,7 @@ static int action_luksFormat(int arg)
 		.key_slot = opt_key_slot,
 		.device = action_argv[0],
 		.cipher = opt_cipher?opt_cipher:DEFAULT_LUKS_CIPHER,
-		.hash = DEFAULT_LUKS_HASH,
-		// FIXME: enable other hash use here
-		//.hash = opt_hash ?: DEFAULT_LUKS_HASH,
+		.hash = opt_hash ?: DEFAULT_LUKS_HASH,
 		.new_key_file = action_argc > 1 ? action_argv[1] : NULL,
 		.flags = opt_verify_passphrase ? CRYPT_FLAG_VERIFY : (!opt_batch_mode?CRYPT_FLAG_VERIFY_IF_POSSIBLE :  0),
 		.iteration_time = opt_iteration_time,