diff --git a/lib/ansible/modules/network/nxos/nxos_aaa_server_host.py b/lib/ansible/modules/network/nxos/nxos_aaa_server_host.py
index 0c1d6bc6f4..c1a84814b6 100644
--- a/lib/ansible/modules/network/nxos/nxos_aaa_server_host.py
+++ b/lib/ansible/modules/network/nxos/nxos_aaa_server_host.py
@@ -309,6 +309,8 @@ def main():
             delta = proposed
         else:
             for key, value in proposed.items():
+                if key == 'encrypt_type':
+                    delta[key] = value
                 if value != existing.get(key):
                     if value != 'default' or existing.get(key):
                         delta[key] = value
diff --git a/test/integration/targets/nxos_aaa_server_host/tests/common/radius.yaml b/test/integration/targets/nxos_aaa_server_host/tests/common/radius.yaml
index c00a43a4b1..1f73efde1b 100644
--- a/test/integration/targets/nxos_aaa_server_host/tests/common/radius.yaml
+++ b/test/integration/targets/nxos_aaa_server_host/tests/common/radius.yaml
@@ -130,6 +130,30 @@
 
   - assert: *false
 
+  - name: "Configure radius server with new type 7 encryption key"
+    nxos_aaa_server_host: &configure_radius_new_type7
+      server_type: radius
+      address: 8.8.8.8
+      host_timeout: 25
+      auth_port: 2083
+      acct_port: 2084
+      encrypt_type: 7
+      key: helloback
+      provider: "{{ connection }}"
+      state: present
+    register: result
+
+  - assert:
+      that:
+        - "result.changed == true"
+        - "'key 7' in result.updates[0]"
+
+  - name: "Check Idempotence"
+    nxos_aaa_server_host: *configure_radius_new_type7
+    register: result
+
+  - assert: *false
+
   - name: "Configure radius server with default key"
     nxos_aaa_server_host: &configure_radius_defkey
       server_type: radius
diff --git a/test/integration/targets/nxos_aaa_server_host/tests/common/tacacs.yaml b/test/integration/targets/nxos_aaa_server_host/tests/common/tacacs.yaml
index c5ca89785a..d493fe19ca 100644
--- a/test/integration/targets/nxos_aaa_server_host/tests/common/tacacs.yaml
+++ b/test/integration/targets/nxos_aaa_server_host/tests/common/tacacs.yaml
@@ -133,6 +133,29 @@
 
   - assert: *false
 
+  - name: "Configure tacacs server with new type 7 encryption key"
+    nxos_aaa_server_host: &configure_tacacs_new_type7
+      server_type: tacacs
+      address: 8.8.8.8
+      host_timeout: 25
+      tacacs_port: 89
+      encrypt_type: 7
+      key: helloback
+      provider: "{{ connection }}"
+      state: present
+    register: result
+
+  - assert:
+      that:
+        - "result.changed == true"
+        - "'key 7' in result.updates[0]"
+
+  - name: "Check Idempotence"
+    nxos_aaa_server_host: *configure_tacacs_new_type7
+    register: result
+
+  - assert: *false
+
   - name: "Configure tacacs server with default key"
     nxos_aaa_server_host: &configure_tacacs_defkey
       server_type: tacacs