diff --git a/lang/python/tests/Makefile.am b/lang/python/tests/Makefile.am
index 7251cd30..a935222f 100644
--- a/lang/python/tests/Makefile.am
+++ b/lang/python/tests/Makefile.am
@@ -117,4 +117,3 @@ clean-local:
 ./gpg-agent.conf:
 # This is required for gpg2, which does not support command fd.
 	echo pinentry-program $(abs_top_srcdir)/tests/gpg/pinentry >$@
-	echo allow-loopback-pinentry >>$@
diff --git a/tests/start-stop-agent b/tests/start-stop-agent
index e843ce5c..457f70d7 100755
--- a/tests/start-stop-agent
+++ b/tests/start-stop-agent
@@ -38,6 +38,14 @@ fi
 
 echo "starting gpg-agent.." >&2
 
+# GnuPG prior to 2.1.12 needs --allow-loopback-pinentry for the
+# loopback entry to work.  Old versions do not understand this though,
+# so we need to be careful.
+if "$GPG_AGENT" --gpgconf-test --allow-loopback-pinentry &&
+   ! grep -q allow-loopback-pinentry "$GNUPGHOME/gpg-agent.conf"; then
+    echo allow-loopback-pinentry >> "$GNUPGHOME/gpg-agent.conf"
+fi
+
 gpg-connect-agent --agent-program="${GPG_AGENT}|--debug-quick-random" putval\ $token\ set /bye
 if [ $? -ne 0 -o "$(gpg-connect-agent getval\ $token /bye 2>/dev/null | head -1)" \
       != "D set" ]; then