diff --git a/app/scripts/keyring-controller.js b/app/scripts/keyring-controller.js
index 2681b3d48..b93d4a156 100644
--- a/app/scripts/keyring-controller.js
+++ b/app/scripts/keyring-controller.js
@@ -9,6 +9,7 @@ const BN = ethUtil.BN
 const Transaction = require('ethereumjs-tx')
 const createId = require('web3-provider-engine/util/random-id')
 const autoFaucet = require('./lib/auto-faucet')
+const bip39 = require('bip39')
 
 // TEMPORARY UNTIL FULL DEPRECATION:
 const IdStoreMigrator = require('./lib/idStore-migrator')
@@ -46,6 +47,8 @@ module.exports = class KeyringController extends EventEmitter {
   }
 
   getState() {
+    let address = this.configManager.getSelectedAccount()
+
     return {
       seedWords: this.configManager.getSeedWords(),
       isInitialized: !!this.configManager.getVault(),
@@ -55,7 +58,8 @@ module.exports = class KeyringController extends EventEmitter {
       transactions: this.configManager.getTxList(),
       unconfMsgs: messageManager.unconfirmedMsgs(),
       messages: messageManager.getMsgList(),
-      selectedAddress: this.configManager.getSelectedAccount(),
+      selectedAddress: address,
+      selectedAccount: address,
       shapeShiftTxList: this.configManager.getShapeShiftTxList(),
       currentFiat: this.configManager.getCurrentFiat(),
       conversionRate: this.configManager.getConversionRate(),
@@ -78,12 +82,33 @@ module.exports = class KeyringController extends EventEmitter {
   }
 
   createNewVaultAndRestore(password, seed, cb) {
+    if (typeof password !== 'string') {
+      return cb('Password must be text.')
+    }
+
+    if (!bip39.validateMnemonic(seed)) {
+      return cb('Seed phrase is invalid.')
+    }
+
+    this.clearKeyrings()
+
     this.createNewVault(password, '', (err) => {
       if (err) return cb(err)
       this.addNewKeyring('HD Key Tree', {
         mnemonic: seed,
         n: 1,
-      }, cb)
+      }, (err) => {
+        if (err) return cb(err)
+        const firstKeyring = this.keyrings[0]
+        const accounts = firstKeyring.getAccounts()
+        const firstAccount = accounts[0]
+        const hexAccount = ethUtil.addHexPrefix(firstAccount)
+        this.configManager.setSelectedAccount(hexAccount)
+
+        this.setupAccounts(accounts)
+        this.emit('update')
+        cb(null, this.getState())
+      })
     })
   }
 
@@ -138,6 +163,7 @@ module.exports = class KeyringController extends EventEmitter {
       return this.unlockKeyrings(key)
     })
     .then(() => {
+      this.emit('update')
       cb(null, this.getState())
     })
     .catch((err) => {
@@ -175,6 +201,7 @@ module.exports = class KeyringController extends EventEmitter {
     const ring = this.keyrings[keyRingNum]
     const accounts = ring.addAccounts(1)
     this.setupAccounts(accounts)
+    this.persistAllKeyrings()
     cb(null, this.getState())
   }
 
@@ -468,10 +495,6 @@ module.exports = class KeyringController extends EventEmitter {
     cb(null, '0xPrivateKey')
   }
 
-  tryPassword(password, cb) {
-    cb()
-  }
-
   getNetwork(err) {
     if (err) {
       this.network = 'loading'
@@ -503,6 +526,22 @@ module.exports = class KeyringController extends EventEmitter {
     cb(null, this.configManager.getSelectedAccount())
   }
 
+  clearKeyrings() {
+    let accounts
+    try {
+      accounts = Object.keys(this.ethStore._currentState.accounts)
+    } catch (e) {
+      accounts = []
+    }
+    accounts.forEach((address) => {
+      this.ethStore.removeAccount(address)
+    })
+
+    this.keyrings = []
+    this.identities = {}
+    this.configManager.setSelectedAccount()
+  }
+
 }
 
 function noop () {}
diff --git a/app/scripts/keyrings/hd.js b/app/scripts/keyrings/hd.js
index 69b8d25bc..90052d9e7 100644
--- a/app/scripts/keyrings/hd.js
+++ b/app/scripts/keyrings/hd.js
@@ -13,7 +13,7 @@ module.exports = class HdKeyring extends EventEmitter {
     return type
   }
 
-  constructor(opts) {
+  constructor(opts = {}) {
     super()
     this.type = type
     this.opts = opts || {}
diff --git a/app/scripts/metamask-controller.js b/app/scripts/metamask-controller.js
index 7ce22b642..6dffefe98 100644
--- a/app/scripts/metamask-controller.js
+++ b/app/scripts/metamask-controller.js
@@ -38,8 +38,8 @@ module.exports = class MetamaskController {
     return extend(
       this.state,
       this.ethStore.getState(),
-      this.keyringController.getState(),
-      this.configManager.getConfig()
+      this.configManager.getConfig(),
+      this.keyringController.getState()
     )
   }
 
@@ -73,7 +73,6 @@ module.exports = class MetamaskController {
       setLocked: keyringController.setLocked.bind(keyringController),
       exportAccount: keyringController.exportAccount.bind(keyringController),
       saveAccountLabel: keyringController.saveAccountLabel.bind(keyringController),
-      tryPassword: keyringController.tryPassword.bind(keyringController),
       // coinbase
       buyEth: this.buyEth.bind(this),
       // shapeshift
diff --git a/ui/app/actions.js b/ui/app/actions.js
index 0586e07a3..8218e05ef 100644
--- a/ui/app/actions.js
+++ b/ui/app/actions.js
@@ -161,7 +161,7 @@ function tryUnlockMetamask (password) {
     background.submitPassword(password, (err, newState) => {
       dispatch(actions.hideLoadingIndication())
       if (err) {
-        dispatch(actions.unlockFailed())
+        dispatch(actions.unlockFailed(err.message))
       } else {
         dispatch(this.updateMetamaskState(newState))
         let selectedAccount
@@ -407,9 +407,10 @@ function unlockInProgress () {
   }
 }
 
-function unlockFailed () {
+function unlockFailed (message) {
   return {
     type: actions.UNLOCK_FAILED,
+    value: message,
   }
 }
 
diff --git a/ui/app/reducers/app.js b/ui/app/reducers/app.js
index d34cd1c2a..49507eb30 100644
--- a/ui/app/reducers/app.js
+++ b/ui/app/reducers/app.js
@@ -335,7 +335,7 @@ function reduceApp (state, action) {
 
     case actions.UNLOCK_FAILED:
       return extend(appState, {
-        warning: 'Incorrect password. Try again.',
+        warning: action.value || 'Incorrect password. Try again.',
       })
 
     case actions.SHOW_LOADING:
diff --git a/ui/app/unlock.js b/ui/app/unlock.js
index 5c9a94f39..ec467f483 100644
--- a/ui/app/unlock.js
+++ b/ui/app/unlock.js
@@ -55,6 +55,8 @@ UnlockScreen.prototype.render = function () {
         h('.error', {
           style: {
             display: warning ? 'block' : 'none',
+            padding: '0 20px',
+            textAlign: 'center',
           },
         }, warning),