diff --git a/moto/secretsmanager/utils.py b/moto/secretsmanager/utils.py
index 6033db61..ab0f584f 100644
--- a/moto/secretsmanager/utils.py
+++ b/moto/secretsmanager/utils.py
@@ -51,6 +51,8 @@ def random_password(
     if include_space:
         password += " "
         required_characters += " "
+    if exclude_characters:
+        password = _exclude_characters(password, exclude_characters)
 
     password = "".join(
         six.text_type(random.choice(password)) for x in range(password_length)
@@ -61,7 +63,6 @@ def random_password(
             password, required_characters
         )
 
-    password = _exclude_characters(password, exclude_characters)
     return password
 
 
diff --git a/tests/test_secretsmanager/test_secretsmanager.py b/tests/test_secretsmanager/test_secretsmanager.py
index 0bd66b12..69e055bb 100644
--- a/tests/test_secretsmanager/test_secretsmanager.py
+++ b/tests/test_secretsmanager/test_secretsmanager.py
@@ -338,6 +338,7 @@ def test_get_random_exclude_characters_and_symbols():
         PasswordLength=20, ExcludeCharacters="xyzDje@?!."
     )
     assert any(c in "xyzDje@?!." for c in random_password["RandomPassword"]) == False
+    assert len(random_password["RandomPassword"]) == 20
 
 
 @mock_secretsmanager