diff --git a/[refs] b/[refs]
index 7f2fe72a9c7f..68208db7942c 100644
--- a/[refs]
+++ b/[refs]
@@ -1,2 +1,2 @@
 ---
-refs/heads/master: 9719f8afce34d3d04e884873a8a5e3483e30974c
+refs/heads/master: ae29319649b80ed9d28d7b4f164e3f5f75020fc8
diff --git a/trunk/net/bluetooth/hci_event.c b/trunk/net/bluetooth/hci_event.c
index 6aef8f24e581..0aba21a03b3c 100644
--- a/trunk/net/bluetooth/hci_event.c
+++ b/trunk/net/bluetooth/hci_event.c
@@ -883,9 +883,11 @@ static inline void hci_encrypt_change_evt(struct hci_dev *hdev, struct sk_buff *
 	conn = hci_conn_hash_lookup_handle(hdev, __le16_to_cpu(ev->handle));
 	if (conn) {
 		if (!ev->status) {
-			if (ev->encrypt)
+			if (ev->encrypt) {
+				/* Encryption implies authentication */
+				conn->link_mode |= HCI_LM_AUTH;
 				conn->link_mode |= HCI_LM_ENCRYPT;
-			else
+			} else
 				conn->link_mode &= ~HCI_LM_ENCRYPT;
 		}