diff --git a/cmd/crypto/error.go b/cmd/crypto/error.go
index 5e35148c8..d3a3a2c6a 100644
--- a/cmd/crypto/error.go
+++ b/cmd/crypto/error.go
@@ -62,6 +62,8 @@ var (
 
 	errInvalidInternalIV            = Error{"The internal encryption IV is malformed"}
 	errInvalidInternalSealAlgorithm = Error{"The internal seal algorithm is invalid and not supported"}
+
+	errMissingUpdatedKey = Error{"The key update returned no error but also no sealed key"}
 )
 
 var (
diff --git a/cmd/crypto/kms.go b/cmd/crypto/kms.go
index 3eb9bf8ef..53a27252b 100644
--- a/cmd/crypto/kms.go
+++ b/cmd/crypto/kms.go
@@ -86,6 +86,19 @@ type KMS interface {
 	// referenced by the keyID. The provided context must
 	// match the context used to generate the sealed key.
 	UnsealKey(keyID string, sealedKey []byte, context Context) (key [32]byte, err error)
+
+	// UpdateKey re-wraps the sealedKey if the master key, referenced by
+	// `keyID`, has changed in the meantime. This usually happens when the
+	// KMS operator performs a key-rotation operation of the master key.
+	// UpdateKey fails if the provided sealedKey cannot be decrypted using
+	// the master key referenced by keyID.
+	//
+	// UpdateKey makes no guarantees whatsoever about whether the returned
+	// rotatedKey is actually different from the sealedKey. If nothing has
+	// changed at the KMS or if the KMS does not support updating generated
+	// keys this method may behave like a NOP and just return the sealedKey
+	// itself.
+	UpdateKey(keyID string, sealedKey []byte, context Context) (rotatedKey []byte, err error)
 }
 
 type masterKeyKMS struct {
@@ -126,6 +139,13 @@ func (kms *masterKeyKMS) UnsealKey(keyID string, sealedKey []byte, ctx Context)
 	return key, nil
 }
 
+func (kms *masterKeyKMS) UpdateKey(keyID string, sealedKey []byte, ctx Context) ([]byte, error) {
+	if _, err := kms.UnsealKey(keyID, sealedKey, ctx); err != nil {
+		return nil, err
+	}
+	return sealedKey, nil // The master key cannot update data keys -> Do nothing.
+}
+
 func (kms *masterKeyKMS) deriveKey(keyID string, context Context) (key [32]byte) {
 	if context == nil {
 		context = Context{}
diff --git a/cmd/crypto/kms_test.go b/cmd/crypto/kms_test.go
index 8884ee9d2..8e985d04a 100644
--- a/cmd/crypto/kms_test.go
+++ b/cmd/crypto/kms_test.go
@@ -51,11 +51,20 @@ func TestMasterKeyKMS(t *testing.T) {
 			t.Errorf("Test %d: KMS failed to unseal the generated key: %v", i, err)
 		}
 		if err == nil && test.ShouldFail {
-			t.Errorf("Test %d: KMS unsealed the generated successfully but should have failed", i)
+			t.Errorf("Test %d: KMS unsealed the generated key successfully but should have failed", i)
 		}
 		if !test.ShouldFail && !bytes.Equal(key[:], unsealedKey[:]) {
 			t.Errorf("Test %d: The generated and unsealed key differ", i)
 		}
+
+		rotatedKey, err := kms.UpdateKey(test.UnsealKeyID, sealedKey, test.UnsealContext)
+		if err == nil && test.ShouldFail {
+			t.Errorf("Test %d: KMS updated the generated key successfully but should have failed", i)
+		}
+		if !test.ShouldFail && !bytes.Equal(rotatedKey, sealedKey[:]) {
+			t.Errorf("Test %d: The updated and sealed key differ", i)
+		}
+
 	}
 }
 
diff --git a/cmd/crypto/vault.go b/cmd/crypto/vault.go
index fd651294a..1ccd39747 100644
--- a/cmd/crypto/vault.go
+++ b/cmd/crypto/vault.go
@@ -250,3 +250,30 @@ func (v *vaultService) UnsealKey(keyID string, sealedKey []byte, ctx Context) (k
 	copy(key[:], []byte(plainKey))
 	return key, nil
 }
+
+// UpdateKey re-wraps the sealedKey if the master key referenced by the keyID
+// has been changed by the KMS operator - i.e. the master key has been rotated.
+// If the master key hasn't changed since the sealedKey has been created / updated
+// it may return the same sealedKey as rotatedKey.
+//
+// The context must be same context as the one provided while
+// generating the plaintext key / sealedKey.
+func (v *vaultService) UpdateKey(keyID string, sealedKey []byte, ctx Context) (rotatedKey []byte, err error) {
+	var contextStream bytes.Buffer
+	ctx.WriteTo(&contextStream)
+
+	payload := map[string]interface{}{
+		"ciphertext": string(sealedKey),
+		"context":    base64.StdEncoding.EncodeToString(contextStream.Bytes()),
+	}
+	s, err := v.client.Logical().Write(fmt.Sprintf("/transit/rewrap/%s", keyID), payload)
+	if err != nil {
+		return nil, err
+	}
+	ciphertext, ok := s.Data["ciphertext"]
+	if !ok {
+		return nil, errMissingUpdatedKey
+	}
+	rotatedKey = ciphertext.([]byte)
+	return rotatedKey, nil
+}
diff --git a/docs/kms/README.md b/docs/kms/README.md
index 6bf4235b4..a19bc916f 100644
--- a/docs/kms/README.md
+++ b/docs/kms/README.md
@@ -141,8 +141,8 @@ path "transit/datakey/plaintext/my-minio-key" {
 path "transit/decrypt/my-minio-key" {
   capabilities = [ "read", "update"]
 }
-path "transit/encrypt/my-minio-key" {
-  capabilities = [ "read", "update"]
+path "transit/rewrap/my-minio-key" {
+  capabilities = ["update"]
 }
 
 EOF