diff --git a/moderator.js b/moderator.js
index 5f0ed3bd8..be58236a0 100644
--- a/moderator.js
+++ b/moderator.js
@@ -190,7 +190,17 @@ var Moderator = (function (my) {
                 // Not authorized to create new room
                 if ($(error).find('>error>not-authorized').length) {
                     console.warn("Unauthorized to start the conference");
-                    UI.onAuthenticationRequired();
+                    var toDomain
+                        = Strophe.getDomainFromJid(error.getAttribute('to'));
+                    if (toDomain === config.hosts.anonymousdomain) {
+                        // we are connected with anonymous domain and
+                        // only non anonymous users can create rooms
+                        // we must authorize the user
+                        $(document).trigger('passwordrequired.main');
+                    } else {
+                        // External authentication mode
+                        UI.onAuthenticationRequired();
+                    }
                     return;
                 }
                 var waitMs = getNextErrorTimeout();
diff --git a/muc.js b/muc.js
index 98b347337..a2abbdc01 100644
--- a/muc.js
+++ b/muc.js
@@ -255,9 +255,18 @@ Strophe.addConnectionPlugin('emuc', {
                 '>error[type="cancel"]>not-allowed[xmlns="urn:ietf:params:xml:ns:xmpp-stanzas"]').length) {
             var toDomain = Strophe.getDomainFromJid(pres.getAttribute('to'));
             if(toDomain === config.hosts.anonymousdomain) {
-                // we are connected with anonymous domain and only non anonymous users can create rooms
-                // we must authorize the user
-                $(document).trigger('passwordrequired.main');
+                // We are connected with anonymous domain and only non anonymous
+                // users can create rooms, but focus should not allow us to
+                // enter the room by replying with 'not-authorized'. This would
+                // result in reconnection from authorized domain.
+                // We're either missing Jicofo/Prosody config for anonymous
+                // domains or something is wrong.
+                //$(document).trigger('passwordrequired.main');
+                UI.messageHandler.openReportDialog(null,
+                    'Oops ! We couldn`t join the conference.' +
+                    ' There might be some problem with security' +
+                    ' configuration. Please contact service' +
+                    ' administrator.', pres);
             } else {
                 console.warn('onPresError ', pres);
                 UI.messageHandler.openReportDialog(null,