diff --git a/CHANGELOG.md b/CHANGELOG.md
index cced970cb..ec4e0afe5 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,11 @@
 
 - Fix rendering bug where the Confirm transaction view would lets you approve transactions when the account has insufficient balance.
 - Add ability to import accounts in JSON file format (used by Mist, Geth, MyEtherWallet, and more!)
+
+## 3.1.2 2017-1-24
+
+- Fix "New Account" default keychain
+
 ## 3.1.1 2017-1-20
 
 - Fix HD wallet seed export
diff --git a/app/manifest.json b/app/manifest.json
index c34b17e72..8662c8030 100644
--- a/app/manifest.json
+++ b/app/manifest.json
@@ -1,7 +1,7 @@
 {
   "name": "MetaMask",
   "short_name": "Metamask",
-  "version": "3.1.1",
+  "version": "3.1.2",
   "manifest_version": 2,
   "author": "https://metamask.io",
   "description": "Ethereum Browser Extension",
diff --git a/app/scripts/keyring-controller.js b/app/scripts/keyring-controller.js
index 76422bf6b..741757c5a 100644
--- a/app/scripts/keyring-controller.js
+++ b/app/scripts/keyring-controller.js
@@ -150,12 +150,13 @@ module.exports = class KeyringController extends EventEmitter {
         mnemonic: seed,
         numberOfAccounts: 1,
       })
-    }).then(() => {
-      const firstKeyring = this.keyrings[0]
+    })
+    .then((firstKeyring) => {
       return firstKeyring.getAccounts()
     })
     .then((accounts) => {
       const firstAccount = accounts[0]
+      if (!firstAccount) throw new Error('KeyringController - First Account not found.')
       const hexAccount = normalize(firstAccount)
       this.configManager.setSelectedAccount(hexAccount)
       return this.setupAccounts(accounts)
@@ -164,25 +165,6 @@ module.exports = class KeyringController extends EventEmitter {
     .then(this.fullUpdate.bind(this))
   }
 
-  // PlaceSeedWords
-  // returns Promise( @object state )
-  //
-  // Adds the current vault's seed words to the UI's state tree.
-  //
-  // Used when creating a first vault, to allow confirmation.
-  // Also used when revealing the seed words in the confirmation view.
-  placeSeedWords () {
-    const hdKeyrings = this.keyrings.filter((keyring) => keyring.type === 'HD Key Tree')
-    const firstKeyring = hdKeyrings[0]
-    if (!firstKeyring) throw new Error('KeyringController - No HD Key Tree found')
-    return firstKeyring.serialize()
-    .then((serialized) => {
-      const seedWords = serialized.mnemonic
-      this.configManager.setSeedWords(seedWords)
-      return this.fullUpdate()
-    })
-  }
-
   // ClearSeedWordCache
   //
   // returns Promise( @string currentSelectedAccount )
@@ -259,11 +241,8 @@ module.exports = class KeyringController extends EventEmitter {
   // Calls the `addAccounts` method on the Keyring
   // in the kryings array at index `keyringNum`,
   // and then saves those changes.
-  addNewAccount () {
-    const hdKeyrings = this.keyrings.filter((keyring) => keyring.type === 'HD Key Tree')
-    const firstKeyring = hdKeyrings[0]
-    if (!firstKeyring) throw new Error('KeyringController - No HD Key Tree found')
-    return firstKeyring.addAccounts(1)
+  addNewAccount (selectedKeyring) {
+    return selectedKeyring.addAccounts(1)
     .then(this.setupAccounts.bind(this))
     .then(this.persistAllKeyrings.bind(this))
     .then(this.fullUpdate.bind(this))
@@ -428,18 +407,17 @@ module.exports = class KeyringController extends EventEmitter {
   // puts the current seed words into the state tree.
   createFirstKeyTree () {
     this.clearKeyrings()
-    return this.addNewKeyring('HD Key Tree', {numberOfAccounts: 1})
-    .then(() => {
-      return this.keyrings[0].getAccounts()
+    return this.addNewKeyring('HD Key Tree', { numberOfAccounts: 1 })
+    .then((keyring) => {
+      return keyring.getAccounts()
     })
     .then((accounts) => {
       const firstAccount = accounts[0]
+      if (!firstAccount) throw new Error('KeyringController - No account found on keychain.')
       const hexAccount = normalize(firstAccount)
       this.configManager.setSelectedAccount(hexAccount)
       this.emit('newAccount', hexAccount)
       return this.setupAccounts(accounts)
-    }).then(() => {
-      return this.placeSeedWords()
     })
     .then(this.persistAllKeyrings.bind(this))
   }
@@ -589,6 +567,10 @@ module.exports = class KeyringController extends EventEmitter {
     return this.keyringTypes.find(kr => kr.type === type)
   }
 
+  getKeyringsByType (type) {
+    return this.keyrings.filter((keyring) => keyring.type === type)
+  }
+
   // Get Accounts
   // returns Promise( @Array[ @string accounts ] )
   //
diff --git a/app/scripts/metamask-controller.js b/app/scripts/metamask-controller.js
index 7084bbc2d..5c663255a 100644
--- a/app/scripts/metamask-controller.js
+++ b/app/scripts/metamask-controller.js
@@ -1,5 +1,6 @@
 const EventEmitter = require('events')
 const extend = require('xtend')
+const promiseToCallback = require('promise-to-callback')
 const EthStore = require('./lib/eth-store')
 const MetaMaskProvider = require('web3-provider-engine/zero.js')
 const KeyringController = require('./keyring-controller')
@@ -107,7 +108,20 @@ module.exports = class MetamaskController extends EventEmitter {
       // forward directly to keyringController
       createNewVaultAndKeychain: nodeify(keyringController.createNewVaultAndKeychain).bind(keyringController),
       createNewVaultAndRestore: nodeify(keyringController.createNewVaultAndRestore).bind(keyringController),
-      placeSeedWords: nodeify(keyringController.placeSeedWords).bind(keyringController),
+      // Adds the current vault's seed words to the UI's state tree.
+      //
+      // Used when creating a first vault, to allow confirmation.
+      // Also used when revealing the seed words in the confirmation view.
+      placeSeedWords: (cb) => {
+        const primaryKeyring = keyringController.getKeyringsByType('HD Key Tree')[0]
+        if (!primaryKeyring) return cb(new Error('MetamaskController - No HD Key Tree found'))
+        primaryKeyring.serialize()
+        .then((serialized) => {
+          const seedWords = serialized.mnemonic
+          this.configManager.setSeedWords(seedWords)
+          promiseToCallback(this.keyringController.fullUpdate())(cb)
+        })
+      },
       clearSeedWordCache: nodeify(keyringController.clearSeedWordCache).bind(keyringController),
       setLocked: nodeify(keyringController.setLocked).bind(keyringController),
       submitPassword: (password, cb) => {
@@ -122,6 +136,11 @@ module.exports = class MetamaskController extends EventEmitter {
         .then((newState) => { cb(null, newState) })
         .catch((reason) => { cb(reason) })
       },
+      addNewAccount: (cb) => {
+        const primaryKeyring = keyringController.getKeyringsByType('HD Key Tree')[0]
+        if (!primaryKeyring) return cb(new Error('MetamaskController - No HD Key Tree found'))
+        promiseToCallback(keyringController.addNewAccount(primaryKeyring))(cb)
+      },
       importAccountWithStrategy: (strategy, args, cb) => {
         accountImporter.importAccount(strategy, args)
         .then((privateKey) => {
@@ -132,7 +151,6 @@ module.exports = class MetamaskController extends EventEmitter {
         .then(() => { cb(null, keyringController.fullUpdate()) })
         .catch((reason) => { cb(reason) })
       },
-      addNewAccount: nodeify(keyringController.addNewAccount).bind(keyringController),
       setSelectedAccount: nodeify(keyringController.setSelectedAccount).bind(keyringController),
       saveAccountLabel: nodeify(keyringController.saveAccountLabel).bind(keyringController),
       exportAccount: nodeify(keyringController.exportAccount).bind(keyringController),
diff --git a/package.json b/package.json
index 828828753..569cab2a0 100644
--- a/package.json
+++ b/package.json
@@ -75,6 +75,7 @@
     "polyfill-crypto.getrandomvalues": "^1.0.0",
     "post-message-stream": "^1.0.0",
     "promise-filter": "^1.1.0",
+    "promise-to-callback": "^1.0.0",
     "pumpify": "^1.3.4",
     "qrcode-npm": "0.0.3",
     "react": "^15.0.2",
diff --git a/test/unit/keyring-controller-test.js b/test/unit/keyring-controller-test.js
index 37fd7175e..d6d2db817 100644
--- a/test/unit/keyring-controller-test.js
+++ b/test/unit/keyring-controller-test.js
@@ -41,6 +41,9 @@ describe('KeyringController', function() {
       state = newState
       done()
     })
+    .catch((err) => {
+      done(err)
+    })
   })
 
   afterEach(function() {
diff --git a/ui/app/actions.js b/ui/app/actions.js
index e722e2c7f..78af80886 100644
--- a/ui/app/actions.js
+++ b/ui/app/actions.js
@@ -231,7 +231,21 @@ function createNewVaultAndRestore (password, seed) {
 }
 
 function createNewVaultAndKeychain (password) {
-  return callBackgroundThenUpdate(background.createNewVaultAndKeychain, password)
+  return (dispatch) => {
+    dispatch(actions.showLoadingIndication())
+    background.createNewVaultAndKeychain(password, (err, newState) => {
+      if (err) {
+        return dispatch(actions.displayWarning(err.message))
+      }
+      background.placeSeedWords((err, newState) => {
+        if (err) {
+          return dispatch(actions.displayWarning(err.message))
+        }
+        dispatch(actions.hideLoadingIndication())
+        dispatch(actions.updateMetamaskState(newState))
+      })
+    })
+  }
 }
 
 function revealSeedConfirmation () {