diff --git a/PhpAmqpLib/Connection/AMQPStreamConnection.php b/PhpAmqpLib/Connection/AMQPStreamConnection.php
index f9f5c377f..43622eb43 100644
--- a/PhpAmqpLib/Connection/AMQPStreamConnection.php
+++ b/PhpAmqpLib/Connection/AMQPStreamConnection.php
@@ -131,4 +131,12 @@ protected static function try_create_connection($host, $port, $user, $password,
             $channel_rpc_timeout
         );
     }
+
+    /**
+     * @param string $password
+     */
+    protected function replace_password_in_construct_params($password)
+    {
+        $this->construct_params[3] = $password;
+    }
 }
diff --git a/PhpAmqpLib/Connection/AbstractConnection.php b/PhpAmqpLib/Connection/AbstractConnection.php
index aa3f7fdb3..ba8dc6b27 100644
--- a/PhpAmqpLib/Connection/AbstractConnection.php
+++ b/PhpAmqpLib/Connection/AbstractConnection.php
@@ -323,8 +323,26 @@ public function reconnect()
      */
     public function updatePassword($password): void
     {
-        // send new secret to broker
-        $this->x_update_secret($password);
+        if ($this->login_method !== 'EXTERNAL') {
+            // password is always latest in response for PLAIN and AMQPPLAIN
+            // for EXTERNAL mechanism this has to be handled by calling user
+            $login_response_parts = explode("\0", $this->login_response);
+            $login_response_parts[count($login_response_parts) - 1] = $password;
+            $this->login_response = implode("\0", $login_response_parts);
+        }
+
+        if ($this->is_connected) {
+            // send new secret to broker if currently connected
+            $this->x_update_secret($password);
+        }
+    }
+
+    /**
+     * @param string $password
+     */
+    protected function replace_password_in_construct_params($password)
+    {
+        $this->construct_params[1] = $password;
     }
 
     /**
diff --git a/demo/oauth2_authorization.php b/demo/oauth2_authorization.php
index a9c4e1265..0a04d6758 100644
--- a/demo/oauth2_authorization.php
+++ b/demo/oauth2_authorization.php
@@ -30,6 +30,8 @@ function getNextOauth2Token() {
 pcntl_signal(SIGALRM, function () use ($connection) {
     echo "Refreshing token...\n";
     $connection->updatePassword(getNextOauth2Token()); // this will fail on 2nd attempt - see getNextOauth2Token
+    sleep(1);
+    $connection->reconnect(); // reconnect should use new token too so this is working for lazy connections too!
     pcntl_alarm(5);
 }, true);
 pcntl_alarm(5);
diff --git a/tests/Functional/Connection/OAuth2ConnectionTest.php b/tests/Functional/Connection/OAuth2ConnectionTest.php
index 8bf67e067..2362a64ee 100644
--- a/tests/Functional/Connection/OAuth2ConnectionTest.php
+++ b/tests/Functional/Connection/OAuth2ConnectionTest.php
@@ -24,6 +24,38 @@ public function update_password()
         self::assertTrue($conn->isConnected());
     }
 
+    /**
+     * @test
+     * @covers \PhpAmqpLib\Connection\AbstractConnection::updatePassword()
+     */
+    public function update_password_should_replace_password_for_reconnect()
+    {
+        $conn = new AMQPStreamConnection(HOST, PORT, 'oauth', JWT_TOKEN_1, '/', false, 'PLAIN', null, 'en_US', 1);
+        $conn->updatePassword(JWT_TOKEN_2);
+
+        $loginResponse = (new \ReflectionClass($conn))->getProperty('login_response');
+        $loginResponse->setAccessible(true);
+
+        self::assertContains(JWT_TOKEN_2, $loginResponse->getValue($conn));
+        self::assertNotContains(JWT_TOKEN_1, $loginResponse->getValue($conn));
+    }
+
+    /**
+     * @test
+     * @covers \PhpAmqpLib\Connection\AbstractConnection::updatePassword()
+     */
+    public function update_password_should_replace_password_for_clone()
+    {
+        $conn = new AMQPStreamConnection(HOST, PORT, 'oauth', JWT_TOKEN_1, '/', false, 'PLAIN', null, 'en_US', 1);
+        $conn->updatePassword(JWT_TOKEN_2);
+
+        $constructorParams = (new \ReflectionClass($conn))->getProperty('constructor_param');
+        $constructorParams->setAccessible(true);
+
+        self::assertContains(JWT_TOKEN_2, $constructorParams->getValue($conn));
+        self::assertNotContains(JWT_TOKEN_1, $constructorParams->getValue($conn));
+    }
+
     /**
      * @test
      * @covers \PhpAmqpLib\Connection\AbstractConnection::x_update_secret()