diff --git a/gtk/gtkpasswordentry.c b/gtk/gtkpasswordentry.c
index 7dc6603a59..ef6f1d815b 100644
--- a/gtk/gtkpasswordentry.c
+++ b/gtk/gtkpasswordentry.c
@@ -85,7 +85,8 @@ keymap_state_changed (GdkKeymap *keymap,
 
   if (gtk_editable_get_editable (GTK_EDITABLE (entry)) &&
       gtk_widget_has_focus (priv->entry) &&
-      gdk_keymap_get_caps_lock_state (priv->keymap))
+      gdk_keymap_get_caps_lock_state (priv->keymap) &&
+      !priv->peek_icon)
     gtk_widget_show (priv->icon);
   else
     gtk_widget_hide (priv->icon);
@@ -449,6 +450,8 @@ gtk_password_entry_set_show_peek_icon (GtkPasswordEntry *entry,
       gtk_text_set_visibility (GTK_TEXT (priv->entry), FALSE);
     }
 
+  keymap_state_changed (priv->keymap, GTK_WIDGET (entry));
+
   g_object_notify_by_pspec (G_OBJECT (entry), props[PROP_SHOW_PEEK_ICON]);
 }