diff --git a/README.md b/README.md
index 0a41fe8a15..df694981e5 100644
--- a/README.md
+++ b/README.md
@@ -31,7 +31,7 @@ addon | version | maintainers | summary
 [auth_oauth_ropc](auth_oauth_ropc/) | 16.0.1.0.0 |  | Allow to login with OAuth Resource Owner Password Credentials Grant
 [auth_oidc](auth_oidc/) | 16.0.1.0.2 | [![sbidoul](https://github.com/sbidoul.png?size=30px)](https://github.com/sbidoul) | Allow users to login through OpenID Connect Provider
 [auth_oidc_environment](auth_oidc_environment/) | 16.0.1.0.0 |  | This module allows to use server env for OIDC configuration
-[auth_saml](auth_saml/) | 16.0.1.0.3 | [![vincent-hatakeyama](https://github.com/vincent-hatakeyama.png?size=30px)](https://github.com/vincent-hatakeyama) | SAML2 Authentication
+[auth_saml](auth_saml/) | 16.0.1.0.4 | [![vincent-hatakeyama](https://github.com/vincent-hatakeyama.png?size=30px)](https://github.com/vincent-hatakeyama) | SAML2 Authentication
 [auth_session_timeout](auth_session_timeout/) | 16.0.1.0.0 |  | This module disable all inactive sessions since a given delay
 [auth_signup_verify_email](auth_signup_verify_email/) | 16.0.1.0.0 |  | Force uninvited users to use a good email for signup
 [auth_user_case_insensitive](auth_user_case_insensitive/) | 16.0.1.0.0 |  | Makes the user login field case insensitive
diff --git a/auth_saml/README.rst b/auth_saml/README.rst
index ade85034a7..ea6b223ea1 100644
--- a/auth_saml/README.rst
+++ b/auth_saml/README.rst
@@ -7,7 +7,7 @@ SAML2 Authentication
    !! This file is generated by oca-gen-addon-readme !!
    !! changes will be overwritten.                   !!
    !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
-   !! source digest: sha256:1e046a7179ace3d0932313947c9156983197334815735ec52428916f26e3d354
+   !! source digest: sha256:3fcac74e9beda7cf4b033bd925615869ba6499576aabc948428f2cce34b6b790
    !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
 
 .. |badge1| image:: https://img.shields.io/badge/maturity-Beta-yellow.png
diff --git a/auth_saml/__manifest__.py b/auth_saml/__manifest__.py
index 102f9dd209..ef4f1bb564 100644
--- a/auth_saml/__manifest__.py
+++ b/auth_saml/__manifest__.py
@@ -4,7 +4,7 @@
 
 {
     "name": "SAML2 Authentication",
-    "version": "16.0.1.0.3",
+    "version": "16.0.1.0.4",
     "category": "Tools",
     "author": "XCG Consulting, Odoo Community Association (OCA)",
     "maintainers": ["vincent-hatakeyama"],
diff --git a/auth_saml/models/ir_config_parameter.py b/auth_saml/models/ir_config_parameter.py
index 9fb503afac..dd8677d0fa 100644
--- a/auth_saml/models/ir_config_parameter.py
+++ b/auth_saml/models/ir_config_parameter.py
@@ -27,3 +27,13 @@ def write(self, vals):
         if self.filtered(lambda param: param.key == ALLOW_SAML_UID_AND_PASSWORD):
             self.env["res.users"].allow_saml_and_password_changed()
         return result
+
+    def unlink(self):
+        """Redefined to update users when our parameter is deleted."""
+        param_saml = self.filtered(
+            lambda param: param.key == ALLOW_SAML_UID_AND_PASSWORD
+        )
+        result = super().unlink()
+        if result and param_saml:
+            self.env["res.users"].allow_saml_and_password_changed()
+        return result
diff --git a/auth_saml/tests/test_pysaml.py b/auth_saml/tests/test_pysaml.py
index c05235b747..7549e2546f 100644
--- a/auth_saml/tests/test_pysaml.py
+++ b/auth_saml/tests/test_pysaml.py
@@ -198,7 +198,7 @@ def test_login_with_saml(self):
         # User should now be able to log in with the token
         self.authenticate(user="test@example.com", password=token)
 
-    def test_disallow_user_password_when_changing_setting(self):
+    def test_disallow_user_password_when_changing_ir_config_parameter(self):
         """Test that disabling users from having both a password and SAML ids remove
         users password."""
         # change the option
@@ -336,3 +336,26 @@ def test_redirect_after_login(self):
             self.base_url()
             + "/web#action=37&model=ir.module.module&view_type=kanban&menu_id=5",
         )
+
+    def test_disallow_user_password_when_changing_settings(self):
+        """Test that disabling the setting will remove passwords from related users"""
+        # We activate the settings to allow password login
+        self.env["res.config.settings"].create(
+            {
+                "allow_saml_uid_and_internal_password": True,
+            }
+        ).execute()
+
+        # Test the user can login with the password
+        self.authenticate(user="user@example.com", password="NesTNSte9340D720te>/-A")
+
+        self.env["res.config.settings"].create(
+            {
+                "allow_saml_uid_and_internal_password": False,
+            }
+        ).execute()
+
+        with self.assertRaises(AccessDenied):
+            self.authenticate(
+                user="user@example.com", password="NesTNSte9340D720te>/-A"
+            )