diff --git a/autotests/knewpasswordwidgettest.h b/autotests/knewpasswordwidgettest.h
--- a/autotests/knewpasswordwidgettest.h
+++ b/autotests/knewpasswordwidgettest.h
@@ -43,6 +43,7 @@
     void disablingWidgetShouldUseDisabledPalette();
     void disablingParentShouldUseDisabledPalette();
     void disablingRevealPasswordShouldHideVisibilityAction();
+    void shouldNotHideVisibilityActionInPlaintextMode();
 };
 
 #endif
diff --git a/autotests/knewpasswordwidgettest.cpp b/autotests/knewpasswordwidgettest.cpp
--- a/autotests/knewpasswordwidgettest.cpp
+++ b/autotests/knewpasswordwidgettest.cpp
@@ -285,3 +285,21 @@
     QVERIFY(!visibilityAction->isVisible());
     QCOMPARE(pwdWidget.isRevealPasswordAvailable(), visibilityAction->isVisible());
 }
+
+void KNewPasswordWidgetTest::shouldNotHideVisibilityActionInPlaintextMode()
+{
+    KNewPasswordWidget pwdWidget;
+
+    auto linePassword = pwdWidget.findChild<QLineEdit*>(QStringLiteral("linePassword"));
+    QVERIFY(linePassword);
+
+    auto visibilityAction = linePassword->findChild<QAction*>(QStringLiteral("visibilityAction"));
+    QVERIFY(visibilityAction && !visibilityAction->isVisible());
+
+    linePassword->setText(QStringLiteral("1234"));
+    QVERIFY(visibilityAction->isVisible());
+
+    visibilityAction->trigger();
+    linePassword->clear();
+    QVERIFY(visibilityAction->isVisible());
+}
diff --git a/src/knewpasswordwidget.cpp b/src/knewpasswordwidget.cpp
--- a/src/knewpasswordwidget.cpp
+++ b/src/knewpasswordwidget.cpp
@@ -141,7 +141,7 @@
 
 void KNewPasswordWidget::KNewPasswordWidgetPrivate::_k_showToggleEchoModeAction(const QString &text)
 {
-    toggleEchoModeAction->setVisible(revealPasswordAvailable && !text.isEmpty());
+    toggleEchoModeAction->setVisible(revealPasswordAvailable && (ui.linePassword->echoMode() == QLineEdit::Normal || !text.isEmpty()));
 }
 
 int KNewPasswordWidget::KNewPasswordWidgetPrivate::effectivePasswordLength(const QString &password)