diff --git a/test/unit/test_watson_service.py b/test/unit/test_watson_service.py
index c96a64504..6d924d64b 100755
--- a/test/unit/test_watson_service.py
+++ b/test/unit/test_watson_service.py
@@ -170,6 +170,17 @@ def test_for_icp():
     assert service2.password is not None
     assert service2.url is 'service_url'
 
+    service3 = AnyServiceV1('2017-07-07', iam_apikey='icp-xxx')
+    assert service3.token_manager is None
+    assert service2.iam_apikey is None
+    assert service2.username is not None
+    assert service2.password is not None
+
+    service4 = AnyServiceV1('2017-07-07', iam_access_token='lala')
+    assert service4.token_manager is not None
+    assert service4.username is None
+    assert service4.password is None
+
 @responses.activate
 def test_disable_SSL_verification():
     service1 = AnyServiceV1('2017-07-07', username='apikey', password='icp-xxxx', url='service_url')
diff --git a/watson_developer_cloud/watson_service.py b/watson_developer_cloud/watson_service.py
index fb5d5969d..92c62c987 100755
--- a/watson_developer_cloud/watson_service.py
+++ b/watson_developer_cloud/watson_service.py
@@ -265,7 +265,10 @@ def __init__(self, vcap_services_name, url, username=None, password=None,
             else:
                 self.set_username_and_password(username, password)
         elif iam_access_token is not None or iam_apikey is not None:
-            self.set_token_manager(iam_apikey, iam_access_token, iam_url)
+            if iam_apikey and iam_apikey.startswith(ICP_PREFIX):
+                self.set_username_and_password(APIKEY, iam_apikey)
+            else:
+                self.set_token_manager(iam_apikey, iam_access_token, iam_url)
 
         # 2. Credentials from credential file
         if display_name and not self.username and not self.token_manager: