ERROR: Jolt client (ip address X.X.X.X) does not have proper application password. PeopleSoftTargetConnector - The appserver may be down. Check Appserver URL or Domain Password. (158

    ERROR: Jolt client (ip address X.X.X.X) does not have proper application password

Ping local node from Integration Gateway properties or directly from Integration Broker -> nodes.

Error observed in tuxlog file of PeopleSoft application server logs.

ERROR: Jolt client (ip address X.X.X.X) does not have proper application password. PeopleSoftTargetConnector - The appserver may be down.  Check Appserver URL or Domain Password. (158 

Even though configuration.properties domain password matching with app server domain password this error is occurring. 

Solutions --->

1. Remove and update domain password from psappsrv.cfg of app server domain and reconfigure App server domain. Test the local node. 

If still did not work

2. Remove domain password from Integration Gateway properties application server node details. Also remove it from psappsrv.cfg of app server domain and reconfigure App server domain. Test the local node.

2nd option fixed issue for me.