diff --git a/src/core/Database.cpp b/src/core/Database.cpp
index a579ed02d..75b91a5c5 100644
--- a/src/core/Database.cpp
+++ b/src/core/Database.cpp
@@ -44,7 +44,10 @@ Database::Database()
 {
     m_data.cipher = KeePass2::CIPHER_AES;
     m_data.compressionAlgo = CompressionGZip;
-    m_data.kdf = QSharedPointer<AesKdf>::create();
+
+    // instantiate default AES-KDF with legacy KDBX3 flag set
+    // KDBX4+ will re-initialize the KDF using parameters read from the KDBX file
+    m_data.kdf = QSharedPointer<AesKdf>::create(true);
     m_data.kdf->randomizeSeed();
     m_data.hasKey = false;
 
diff --git a/src/crypto/kdf/AesKdf.cpp b/src/crypto/kdf/AesKdf.cpp
index d668652aa..df4392468 100644
--- a/src/crypto/kdf/AesKdf.cpp
+++ b/src/crypto/kdf/AesKdf.cpp
@@ -23,7 +23,15 @@
 #include "crypto/CryptoHash.h"
 
 AesKdf::AesKdf()
-    : Kdf::Kdf(KeePass2::KDF_AES)
+    : Kdf::Kdf(KeePass2::KDF_AES_KDBX4)
+{
+}
+
+/**
+ * @param legacyKdbx3 initialize as legacy KDBX3 KDF
+ */
+AesKdf::AesKdf(bool legacyKdbx3)
+    : Kdf::Kdf(legacyKdbx3 ? KeePass2::KDF_AES_KDBX3 : KeePass2::KDF_AES_KDBX4)
 {
 }
 
@@ -36,17 +44,16 @@ bool AesKdf::processParameters(const QVariantMap &p)
     }
 
     QByteArray seed = p.value(KeePass2::KDFPARAM_AES_SEED).toByteArray();
-    if (!setSeed(seed)) {
-        return false;
-    }
-
-    return true;
+    return setSeed(seed);
 }
 
 QVariantMap AesKdf::writeParameters()
 {
     QVariantMap p;
-    p.insert(KeePass2::KDFPARAM_UUID, KeePass2::KDF_AES.toByteArray());
+
+    // always write old KDBX3 AES-KDF UUID for compatibility with other applications
+    p.insert(KeePass2::KDFPARAM_UUID, KeePass2::KDF_AES_KDBX3.toByteArray());
+
     p.insert(KeePass2::KDFPARAM_AES_ROUNDS, rounds());
     p.insert(KeePass2::KDFPARAM_AES_SEED, seed());
     return p;
diff --git a/src/crypto/kdf/AesKdf.h b/src/crypto/kdf/AesKdf.h
index 69c15b8af..31ee1fa70 100644
--- a/src/crypto/kdf/AesKdf.h
+++ b/src/crypto/kdf/AesKdf.h
@@ -24,6 +24,7 @@ class AesKdf: public Kdf
 {
 public:
     AesKdf();
+    explicit AesKdf(bool legacyKdbx3);
 
     bool processParameters(const QVariantMap& p) override;
     QVariantMap writeParameters() override;
diff --git a/src/format/Kdbx4Reader.cpp b/src/format/Kdbx4Reader.cpp
index 1cde6d18c..b0545888f 100644
--- a/src/format/Kdbx4Reader.cpp
+++ b/src/format/Kdbx4Reader.cpp
@@ -22,6 +22,7 @@
 #include "core/Group.h"
 #include "core/Endian.h"
 #include "crypto/CryptoHash.h"
+#include "crypto/kdf/AesKdf.h"
 #include "format/KeePass2RandomStream.h"
 #include "format/KdbxXmlReader.h"
 #include "streams/HmacBlockStream.h"
diff --git a/src/format/KeePass2.cpp b/src/format/KeePass2.cpp
index aa081e7b5..9f0832fb0 100644
--- a/src/format/KeePass2.cpp
+++ b/src/format/KeePass2.cpp
@@ -25,7 +25,8 @@ const Uuid KeePass2::CIPHER_AES = Uuid(QByteArray::fromHex("31c1f2e6bf714350be58
 const Uuid KeePass2::CIPHER_TWOFISH = Uuid(QByteArray::fromHex("ad68f29f576f4bb9a36ad47af965346c"));
 const Uuid KeePass2::CIPHER_CHACHA20 = Uuid(QByteArray::fromHex("D6038A2B8B6F4CB5A524339A31DBB59A"));
 
-const Uuid KeePass2::KDF_AES = Uuid(QByteArray::fromHex("C9D9F39A628A4460BF740D08C18A4FEA"));
+const Uuid KeePass2::KDF_AES_KDBX3 = Uuid(QByteArray::fromHex("C9D9F39A628A4460BF740D08C18A4FEA"));
+const Uuid KeePass2::KDF_AES_KDBX4 = Uuid(QByteArray::fromHex("7C02BB8279A74AC0927D114A00648238"));
 const Uuid KeePass2::KDF_ARGON2 = Uuid(QByteArray::fromHex("EF636DDF8C29444B91F7A9A403E30A0C"));
 
 const QByteArray KeePass2::INNER_STREAM_SALSA20_IV("\xE8\x30\x09\x4B\x97\x20\x5D\x2A");
@@ -43,14 +44,16 @@ const QString KeePass2::KDFPARAM_ARGON2_VERSION("V");
 const QString KeePass2::KDFPARAM_ARGON2_SECRET("K");
 const QString KeePass2::KDFPARAM_ARGON2_ASSOCDATA("A");
 
-const QList<QPair<Uuid, QString>> KeePass2::CIPHERS {
-        qMakePair(KeePass2::CIPHER_AES, QObject::tr("AES: 256-bit")),
-        qMakePair(KeePass2::CIPHER_TWOFISH, QObject::tr("Twofish: 256-bit")),
-        qMakePair(KeePass2::CIPHER_CHACHA20, QObject::tr("ChaCha20: 256-bit"))
+const QList<QPair<Uuid, QString>> KeePass2::CIPHERS{
+    qMakePair(KeePass2::CIPHER_AES, QObject::tr("AES: 256-bit")),
+    qMakePair(KeePass2::CIPHER_TWOFISH, QObject::tr("Twofish: 256-bit")),
+    qMakePair(KeePass2::CIPHER_CHACHA20, QObject::tr("ChaCha20: 256-bit"))
 };
-const QList<QPair<Uuid, QString>> KeePass2::KDFS {
-        qMakePair(KeePass2::KDF_AES, QObject::tr("AES-KDF")),
-        qMakePair(KeePass2::KDF_ARGON2, QObject::tr("Argon2")),
+
+const QList<QPair<Uuid, QString>> KeePass2::KDFS{
+    qMakePair(KeePass2::KDF_ARGON2, QObject::tr("Argon2 (recommended)")),
+    qMakePair(KeePass2::KDF_AES_KDBX4, QObject::tr("AES-KDF (KDBX 4)")),
+    qMakePair(KeePass2::KDF_AES_KDBX3, QObject::tr("AES-KDF (KDBX 3.1)"))
 };
 
 QByteArray KeePass2::hmacKey(QByteArray masterSeed, QByteArray transformedMasterKey) {
@@ -61,6 +64,12 @@ QByteArray KeePass2::hmacKey(QByteArray masterSeed, QByteArray transformedMaster
     return hmacKeyHash.result();
 }
 
+/**
+ * Create KDF object from KDBX4+ KDF parameters.
+ *
+ * @param p variant map containing parameters
+ * @return initialized KDF
+ */
 QSharedPointer<Kdf> KeePass2::kdfFromParameters(const QVariantMap &p)
 {
     QByteArray uuidBytes = p.value(KDFPARAM_UUID).toByteArray();
@@ -68,7 +77,12 @@ QSharedPointer<Kdf> KeePass2::kdfFromParameters(const QVariantMap &p)
         return {};
     }
 
-    QSharedPointer<Kdf> kdf(uuidToKdf(Uuid(uuidBytes)));
+    Uuid kdfUuid(uuidBytes);
+    if (kdfUuid == KDF_AES_KDBX3) {
+        // upgrade to non-legacy AES-KDF, since KDBX3 doesn't have any KDF parameters
+        kdfUuid = KDF_AES_KDBX4;
+    }
+    QSharedPointer<Kdf> kdf = uuidToKdf(kdfUuid);
     if (kdf.isNull()) {
         return {};
     }
@@ -87,7 +101,10 @@ QVariantMap KeePass2::kdfToParameters(QSharedPointer<Kdf> kdf)
 
 QSharedPointer<Kdf> KeePass2::uuidToKdf(const Uuid& uuid)
 {
-    if (uuid == KDF_AES) {
+    if (uuid == KDF_AES_KDBX3) {
+        return QSharedPointer<AesKdf>::create(true);
+    }
+    if (uuid == KDF_AES_KDBX4) {
         return QSharedPointer<AesKdf>::create();
     }
     if (uuid == KDF_ARGON2) {
diff --git a/src/format/KeePass2.h b/src/format/KeePass2.h
index f7fa0d397..cd53d7132 100644
--- a/src/format/KeePass2.h
+++ b/src/format/KeePass2.h
@@ -46,7 +46,8 @@ namespace KeePass2
     extern const Uuid CIPHER_TWOFISH;
     extern const Uuid CIPHER_CHACHA20;
 
-    extern const Uuid KDF_AES;
+    extern const Uuid KDF_AES_KDBX3;
+    extern const Uuid KDF_AES_KDBX4;
     extern const Uuid KDF_ARGON2;
 
     extern const QByteArray INNER_STREAM_SALSA20_IV;
diff --git a/src/format/KeePass2Writer.cpp b/src/format/KeePass2Writer.cpp
index 3e32eb96b..67aeec98f 100644
--- a/src/format/KeePass2Writer.cpp
+++ b/src/format/KeePass2Writer.cpp
@@ -18,8 +18,9 @@
 #include <QIODevice>
 #include <QFile>
 
-#include "format/KeePass2Writer.h"
 #include "core/Database.h"
+#include "crypto/kdf/AesKdf.h"
+#include "format/KeePass2Writer.h"
 #include "format/Kdbx3Writer.h"
 #include "format/Kdbx4Writer.h"
 
@@ -52,12 +53,12 @@ bool KeePass2Writer::writeDatabase(QIODevice* device, Database* db) {
     m_errorStr.clear();
 
     // determine KDBX3 vs KDBX4
-    if (db->kdf()->uuid() != KeePass2::KDF_AES || db->publicCustomData().size() > 0) {
-        m_version = KeePass2::FILE_VERSION_4;
-        m_writer.reset(new Kdbx4Writer());
-    } else {
+    if (db->kdf()->uuid() == KeePass2::KDF_AES_KDBX3 && db->publicCustomData().isEmpty()) {
         m_version = KeePass2::FILE_VERSION_3;
         m_writer.reset(new Kdbx3Writer());
+    } else {
+        m_version = KeePass2::FILE_VERSION_4;
+        m_writer.reset(new Kdbx4Writer());
     }
 
     return m_writer->writeDatabase(device, db);
diff --git a/src/gui/DatabaseSettingsWidget.cpp b/src/gui/DatabaseSettingsWidget.cpp
index 68b0d4ae6..c0cc06296 100644
--- a/src/gui/DatabaseSettingsWidget.cpp
+++ b/src/gui/DatabaseSettingsWidget.cpp
@@ -151,7 +151,8 @@ void DatabaseSettingsWidget::save()
         if (warning.clickedButton() != ok) {
             return;
         }
-    } else if (kdf->uuid() == KeePass2::KDF_AES && m_uiEncryption->transformRoundsSpinBox->value() < 100000) {
+    } else if ((kdf->uuid() == KeePass2::KDF_AES_KDBX3 || kdf->uuid() == KeePass2::KDF_AES_KDBX4)
+        && m_uiEncryption->transformRoundsSpinBox->value() < 100000) {
         QMessageBox warning;
         warning.setIcon(QMessageBox::Warning);
         warning.setWindowTitle(tr("Number of rounds too low"));
diff --git a/src/keys/CompositeKey.cpp b/src/keys/CompositeKey.cpp
index 7a9b2cbe0..e5e507c77 100644
--- a/src/keys/CompositeKey.cpp
+++ b/src/keys/CompositeKey.cpp
@@ -22,6 +22,7 @@
 #include <format/KeePass2.h>
 
 #include "core/Global.h"
+#include "crypto/kdf/AesKdf.h"
 #include "crypto/CryptoHash.h"
 
 CompositeKey::CompositeKey()
@@ -130,7 +131,7 @@ QByteArray CompositeKey::rawKey(const QByteArray* transformSeed) const
  */
 bool CompositeKey::transform(const Kdf& kdf, QByteArray& result) const
 {
-    if (kdf.uuid() == KeePass2::KDF_AES) {
+    if (kdf.uuid() == KeePass2::KDF_AES_KDBX3) {
         // legacy KDBX3 AES-KDF, challenge response is added later to the hash
         return kdf.transform(rawKey(), result);
     }