diff --git a/docs/changes.txt b/docs/changes.txt
index 42bb6124b..01d86a99e 100644
--- a/docs/changes.txt
+++ b/docs/changes.txt
@@ -67,6 +67,7 @@
 - Fixed incorrect progress-only result in a special race condition
 - Fixed invalid call of mp_css_utf16le_expand()/mp_css_utf16be_expand() in a slow-candidate session
 - Fixed invalid password truncation in attack-mode 1 if final password is longer than 32 character
+- Fixed invalid use of --hex-wordlist if encoded wordlist string is larger than length 256
 - Fixed maximum password length limit which was announced as 256 but actually was 255
 - Fixed output of IKE PSK (mode 5300 and 5400) hashes to have separators at right position
 - Fixed output password of "e" rule in pure and cpu rule engine if separator character is also the first letter
diff --git a/src/dispatch.c b/src/dispatch.c
index b2e936235..428be4371 100644
--- a/src/dispatch.c
+++ b/src/dispatch.c
@@ -1390,8 +1390,6 @@ static int calc (hashcat_ctx_t *hashcat_ctx, hc_device_param_t *device_param)
           {
             get_next_word (hashcat_ctx_tmp, &fp, &line_buf, &line_len);
 
-            line_len = (u32) convert_from_hex (hashcat_ctx, line_buf, line_len);
-
             // post-process rule engine
 
             if (run_rule_engine ((int) user_options_extra->rule_len_l, user_options->rule_buf_l))
diff --git a/src/slow_candidates.c b/src/slow_candidates.c
index 222cc4a92..a4033c6cf 100644
--- a/src/slow_candidates.c
+++ b/src/slow_candidates.c
@@ -125,6 +125,8 @@ void slow_candidates_seek (hashcat_ctx_t *hashcat_ctx, void *extra_info, const u
       {
         line_len = (u32) fgetl (combs_fp, line_buf, HCBUFSIZ_LARGE);
 
+        line_len = convert_from_hex (hashcat_ctx, line_buf, line_len);
+
         // post-process rule engine
 
         if (run_rule_engine ((int) user_options_extra->rule_len_l, user_options->rule_buf_l))
@@ -180,8 +182,6 @@ void slow_candidates_next (hashcat_ctx_t *hashcat_ctx, void *extra_info)
 
         get_next_word (hashcat_ctx, fp, &line_buf, &line_len);
 
-        line_len = (u32) convert_from_hex (hashcat_ctx, line_buf, line_len);
-
         // post-process rule engine
 
         char rule_buf_out[RP_PASSWORD_SIZE];
@@ -250,21 +250,22 @@ void slow_candidates_next (hashcat_ctx_t *hashcat_ctx, void *extra_info)
       {
         get_next_word (hashcat_ctx, base_fp, &line_buf, &line_len);
 
-        line_len = (u32) convert_from_hex (hashcat_ctx, line_buf, line_len);
-
         // post-process rule engine
 
+        char rule_buf_out[RP_PASSWORD_SIZE];
+
         if (run_rule_engine ((int) user_options_extra->rule_len_l, user_options->rule_buf_l))
         {
           if (line_len >= RP_PASSWORD_SIZE) continue;
 
-          char rule_buf_out[RP_PASSWORD_SIZE];
-
           memset (rule_buf_out, 0, sizeof (rule_buf_out));
 
           const int rule_len_out = _old_apply_rule (user_options->rule_buf_l, (int) user_options_extra->rule_len_l, line_buf, (int) line_len, rule_buf_out);
 
           if (rule_len_out < 0) continue;
+
+          line_buf = rule_buf_out;
+          line_len = (u32) rule_len_out;
         }
 
         break;
@@ -288,6 +289,8 @@ void slow_candidates_next (hashcat_ctx_t *hashcat_ctx, void *extra_info)
     {
       line_len = (u32) fgetl (combs_fp, line_buf, HCBUFSIZ_LARGE);
 
+      line_len = convert_from_hex (hashcat_ctx, line_buf, line_len);
+
       // post-process rule engine
 
       if (run_rule_engine ((int) user_options_extra->rule_len_r, user_options->rule_buf_r))
diff --git a/src/wordlist.c b/src/wordlist.c
index 57bd36346..7ac0b07c1 100644
--- a/src/wordlist.c
+++ b/src/wordlist.c
@@ -187,7 +187,13 @@ void get_next_word (hashcat_ctx_t *hashcat_ctx, HCFILE *fp, char **out_buf, u32
 
     wl_data->pos += off;
 
+    // do the on-the-fly hex decode using original buffer
+    // this is safe as length only decreases in size
+
+    len = (u32) convert_from_hex (hashcat_ctx, ptr, len);
+
     // do the on-the-fly encoding
+    // needs to write into new buffer because size case both decrease and increase
 
     if (wl_data->iconv_enabled == true)
     {
@@ -204,6 +210,8 @@ void get_next_word (hashcat_ctx_t *hashcat_ctx, HCFILE *fp, char **out_buf, u32
       len = HCBUFSIZ_TINY - iconv_sz;
     }
 
+    // this is only a test for length, not writing into output buffer
+
     if (run_rule_engine (user_options_extra->rule_len_l, user_options->rule_buf_l))
     {
       if (len >= RP_PASSWORD_SIZE) continue;
@@ -444,6 +452,11 @@ int count_words (hashcat_ctx_t *hashcat_ctx, HCFILE *fp, const char *dictfile, u
 
       i += off;
 
+      // do the on-the-fly hex decode using original buffer
+      // this is safe as length only decreases in size
+
+      len = (u32) convert_from_hex (hashcat_ctx, ptr, len);
+
       // do the on-the-fly encoding
 
       if (wl_data->iconv_enabled == true)