diff --git a/auth.php b/auth.php
index 5d8ac83..09fcca0 100644
--- a/auth.php
+++ b/auth.php
@@ -252,6 +252,19 @@ class auth_plugin_userkey extends auth_plugin_base {
         return false;
     }
 
+    /**
+     * Check if restriction by IP is enabled.
+     *
+     * @return bool
+     */
+    protected function is_iprestriction_enabled() {
+        if (isset($this->config->iprestriction) && $this->config->iprestriction == true) {
+            return true;
+        }
+
+        return false;
+    }
+
     /**
      * Create a new user.
      */
@@ -265,24 +278,28 @@ class auth_plugin_userkey extends auth_plugin_base {
     /**
      * Return login URL.
      *
-     * @param array|stdClass $user User data.
+     * @param array|stdClass $data User data.
      *
      * @return string Login URL.
      *
      * @throws \invalid_parameter_exception
      */
-    public function get_login_url($user) {
+    public function get_login_url($data) {
         global $CFG, $DB;
 
-        $user = (array)$user;
+        $data = (array)$data;
         $mappingfield = $this->get_mapping_field();
 
-        if (!isset($user[$mappingfield]) || empty($user[$mappingfield])) {
+        if (!isset($data[$mappingfield]) || empty($data[$mappingfield])) {
             throw new invalid_parameter_exception('Required field "' . $mappingfield . '" is not set or empty.');
         }
 
+        if ($this->is_iprestriction_enabled() && !isset($data['ip'])) {
+            throw new invalid_parameter_exception('Required parameter "ip" is not set.');
+        }
+
         $params = array(
-            $mappingfield => $user[$mappingfield],
+            $mappingfield => $data[$mappingfield],
             'mnethostid' => $CFG->mnet_localhost_id,
         );
 
@@ -297,7 +314,8 @@ class auth_plugin_userkey extends auth_plugin_base {
         }
 
         if (!isset($this->userkeymanager)) {
-            $userkeymanager = new core_userkey_manager($user->id, $this->config);
+            $ips = isset($data['ip']) ? $data['ip'] : null;
+            $userkeymanager = new core_userkey_manager($user->id, $this->config, $ips);
             $this->set_userkey_manager($userkeymanager);
         }
 
@@ -369,8 +387,18 @@ class auth_plugin_userkey extends auth_plugin_base {
      * @return array
      */
     protected function get_user_fields_parameters() {
+        $parameters = array();
+
+        if ($this->is_iprestriction_enabled()) {
+            $parameters['ip'] = new external_value(
+                PARAM_HOST,
+                'User IP address'
+            );
+        }
+
         // TODO: add more fields here when we implement user creation.
-        return array();
+
+        return $parameters;
     }
 
     /**
diff --git a/tests/auth_plugin_test.php b/tests/auth_plugin_test.php
index 5016d5f..6335066 100644
--- a/tests/auth_plugin_test.php
+++ b/tests/auth_plugin_test.php
@@ -197,6 +197,22 @@ class auth_plugin_userkey_testcase extends advanced_testcase {
         $actual = $this->auth->get_login_url($user);
     }
 
+    /**
+     * Test that auth plugin throws correct exception if we trying to request user,
+     * but ip field is not set and iprestriction is enabled.
+     *
+     * @expectedException \invalid_parameter_exception
+     * @expectedExceptionMessage Invalid parameter value detected (Required parameter "ip" is not set.)
+     */
+    public function test_throwing_exception_if_iprestriction_is_enabled_but_ip_is_missing_in_data() {
+        $user = array();
+        $user['email'] = 'exists@test.com';
+        set_config('iprestriction', true, 'auth_userkey');
+        $this->auth = new auth_plugin_userkey();
+
+        $actual = $this->auth->get_login_url($user);
+    }
+
     /**
      * Test that we can request a user provided user data as an array.
      */
@@ -239,6 +255,28 @@ class auth_plugin_userkey_testcase extends advanced_testcase {
         $this->assertEquals($expected, $actual);
     }
 
+    /**
+     * Test that we can request a user provided user data as an object.
+     */
+    public function test_return_correct_login_url_if_iprestriction_is_enabled_and_data_is_correct() {
+        global $CFG;
+
+        $user = new stdClass();
+        $user->username = 'username';
+        $user->email = 'exists@test.com';
+        $user->ip = '192.168.1.1';
+
+        self::getDataGenerator()->create_user($user);
+
+        $userkeymanager = new \auth_userkey\fake_userkey_manager();
+        $this->auth->set_userkey_manager($userkeymanager);
+
+        $expected = $CFG->wwwroot . '/auth/userkey/login.php?key=FaKeKeyFoRtEsTiNg';
+        $actual = $this->auth->get_login_url($user);
+
+        $this->assertEquals($expected, $actual);
+    }
+
     /**
      * Test that we can get login url if we do not use fake keymanager.
      */
@@ -336,6 +374,26 @@ class auth_plugin_userkey_testcase extends advanced_testcase {
 
         $actual = $this->auth->get_request_login_url_user_parameters();
         $this->assertEquals($expected, $actual);
+
+        // Check IP if iprestriction disabled.
+        set_config('iprestriction', false, 'auth_userkey');
+        $this->auth = new auth_plugin_userkey();
+        $expected = array();
+        $actual = $this->auth->get_request_login_url_user_parameters();
+        $this->assertEquals($expected, $actual);
+
+        // Check IP if iprestriction enabled.
+        set_config('iprestriction', true, 'auth_userkey');
+        $this->auth = new auth_plugin_userkey();
+        $expected = array(
+            'ip' => new external_value(
+                PARAM_HOST,
+                'User IP address'
+            ),
+        );
+        $actual = $this->auth->get_request_login_url_user_parameters();
+        $this->assertEquals($expected, $actual);
+
     }
 
     /**
@@ -524,12 +582,12 @@ class auth_plugin_userkey_testcase extends advanced_testcase {
     }
 
     /**
-     * Test that IP address mismatch exception gets thrown if incorrect IP.
+     * Test that IP address mismatch exception gets thrown if user id is incorrect.
      *
      * @expectedException moodle_exception
      * @expectedExceptionMessage Invalid user id
      */
-    public function test_invalid_user_exception_thrown_if_ip_is_incorrect() {
+    public function test_invalid_user_exception_thrown_if_user_is_invalid() {
         global $DB;
 
         $key = new stdClass();
diff --git a/tests/externallib_test.php b/tests/externallib_test.php
index e996639..4d0342f 100644
--- a/tests/externallib_test.php
+++ b/tests/externallib_test.php
@@ -126,15 +126,34 @@ class auth_userkey_externallib_testcase extends advanced_testcase {
         $this->assertTrue(is_array($result));
         $this->assertTrue(key_exists('loginurl', $result));
         $this->assertEquals($expectedurl, $result['loginurl']);
+
+        // IP restriction.
+        set_config('iprestriction', true, 'auth_userkey');
+        set_config('mappingfield', 'idnumber', 'auth_userkey');
+        $params = array(
+            'idnumber' => 'idnumber',
+            'ip' => '192.168.1.1',
+        );
+
+        // Simulate the web service server.
+        $result = auth_userkey_external::request_login_url($params);
+        $result = external_api::clean_returnvalue(auth_userkey_external::request_login_url_returns(), $result);
+
+        $actualkey = $DB->get_record('user_private_key', array('userid' => $this->user->id));
+        $expectedurl = $CFG->wwwroot . '/auth/userkey/login.php?key=' . $actualkey->value;
+
+        $this->assertTrue(is_array($result));
+        $this->assertTrue(key_exists('loginurl', $result));
+        $this->assertEquals($expectedurl, $result['loginurl']);
     }
 
     /**
-     * Test call with incorrect required parameter.
+     * Test call with missing email required parameter.
      *
      * @expectedException invalid_parameter_exception
      * @expectedExceptionMessage Invalid parameter value detected (Required field "email" is not set or empty.)
      */
-    public function test_request_incorrect_parameters() {
+    public function test_exception_thrown_if_required_parameter_email_is_not_seе() {
         global $CFG;
 
         $this->setAdminUser();
@@ -143,9 +162,29 @@ class auth_userkey_externallib_testcase extends advanced_testcase {
         $params = array(
             'bla' => 'exists@test.com',
         );
-        // Simulate the web service server.
-        $result = auth_userkey_external::request_login_url($params);
-        $result = external_api::clean_returnvalue(auth_userkey_external::request_login_url_returns(), $result);
+
+        auth_userkey_external::request_login_url($params);
+    }
+
+    /**
+     * Test call with missing ip required parameter.
+     *
+     * @expectedException invalid_parameter_exception
+     * @expectedExceptionMessage Invalid parameter value detected (Required parameter "ip" is not set.)
+     */
+    public function test_exception_thrown_if_required_parameter_ip_is_not_seе() {
+        global $CFG;
+
+        $this->setAdminUser();
+        $CFG->auth = "userkey";
+
+        set_config('iprestriction', true, 'auth_userkey');
+
+        $params = array(
+            'email' => 'exists@test.com',
+        );
+
+        auth_userkey_external::request_login_url($params);
     }
 
     /**