diff --git a/components/PasswordDialog.qml b/components/PasswordDialog.qml
new file mode 100644
index 00000000..9c36e13c
--- /dev/null
+++ b/components/PasswordDialog.qml
@@ -0,0 +1,5 @@
+import QtQuick 2.0
+
+Item {
+
+}
diff --git a/main.qml b/main.qml
index 919d0a8b..7320d3af 100644
--- a/main.qml
+++ b/main.qml
@@ -139,19 +139,18 @@ ApplicationWindow {
         if (typeof wizard.settings['wallet'] !== 'undefined') {
             wallet = wizard.settings['wallet'];
         }  else {
-            var wallet_path = persistentSettings.wallet_path + "/" + persistentSettings.account_name + "/"
-                    + persistentSettings.account_name;
+            var wallet_path = walletPath();
+
             console.log("opening wallet at: ", wallet_path);
             // TODO: wallet password dialog
             wallet = walletManager.openWallet(wallet_path, "", persistentSettings.testnet);
 
 
             if (wallet.status !== Wallet.Status_Ok) {
-                console.log("Error opening wallet: ", wallet.errorString);
-                informationPopup.title  = qsTr("Error") + translationManager.emptyString;
-                informationPopup.text = qsTr("Couldn't open wallet: ") + wallet.errorString;
-                informationPopup.icon = StandardIcon.Critical
-                informationPopup.open()
+                console.error("Error opening wallet with empty password: ", wallet.errorString);
+
+                // try to open wallet with password;
+                passwordDialog.open();
                 return;
             }
             console.log("Wallet opened successfully: ", wallet.errorString);
@@ -165,6 +164,13 @@ ApplicationWindow {
 
     }
 
+    function walletPath() {
+        var wallet_path = persistentSettings.wallet_path + "/" + persistentSettings.account_name + "/"
+                + persistentSettings.account_name;
+        return wallet_path;
+    }
+
+
     function onWalletUpdate() {
         console.log(">>> wallet updated")
         basicPanel.unlockedBalanceText = leftPanel.unlockedBalanceText = walletManager.displayAmount(wallet.unlockedBalance);
@@ -291,6 +297,7 @@ ApplicationWindow {
     // Information dialog
     MessageDialog {
         id: informationPopup
+
         standardButtons: StandardButton.Ok
     }
 
@@ -303,6 +310,25 @@ ApplicationWindow {
         }
     }
 
+    PasswordDialog {
+        id: passwordDialog
+        standardButtons: StandardButton.Ok  + StandardButton.Cancel
+        onAccepted: {
+
+            var wallet_path = walletPath();
+            console.log("opening wallet with password: ", wallet_path);
+            wallet = walletManager.openWallet(wallet_path, password, persistentSettings.testnet);
+            if (wallet.status !== Wallet.Status_Ok) {
+                console.error("Error opening wallet with password: ", wallet.errorString);
+                informationPopup.title  = qsTr("Error") + translationManager.emptyString;
+                informationPopup.text = qsTr("Couldn't open wallet: ") + wallet.errorString;
+                informationPopup.icon = StandardIcon.Critical
+                informationPopup.open()
+
+            }
+        }
+    }
+
     Window {
         id: walletInitializationSplash
         modality: Qt.ApplicationModal
diff --git a/monero-core.pro b/monero-core.pro
index c247a802..9520cd37 100644
--- a/monero-core.pro
+++ b/monero-core.pro
@@ -155,6 +155,8 @@ langrel.CONFIG += no_link
 
 QMAKE_EXTRA_TARGETS += langupd deploy deploy_win
 QMAKE_EXTRA_COMPILERS += langrel
+
+
 PRE_TARGETDEPS += langupd compiler_langrel_make_all
 
 RESOURCES += qml.qrc
@@ -180,7 +182,8 @@ OTHER_FILES += \
     $$TRANSLATIONS
 
 DISTFILES += \
-    notes.txt
+    notes.txt \
+    components/PasswordDialog.qml
 
 # windows application icon
 RC_FILE = monero-core.rc
diff --git a/qml.qrc b/qml.qrc
index eca9f561..dcf4b9b1 100644
--- a/qml.qrc
+++ b/qml.qrc
@@ -114,5 +114,6 @@
         <file>pages/Receive.qml</file>
         <file>components/IconButton.qml</file>
         <file>lang/flags/italy.png</file>
+        <file>components/PasswordDialog.qml</file>
     </qresource>
 </RCC>
diff --git a/wizard/WizardMain.qml b/wizard/WizardMain.qml
index f0556efc..488bd959 100644
--- a/wizard/WizardMain.qml
+++ b/wizard/WizardMain.qml
@@ -78,24 +78,6 @@ Rectangle {
         }
     }
 
-    // TODO: remove it
-    function handlePageChanged() {
-
-//        switch (pages[currentPage]) {
-////        case finishPage:
-////            // display settings summary
-////            finishPage.updateSettingsSummary();
-////            nextButton.visible = false;
-////            break;
-//        case recoveryWalletPage:
-//            // disable "next button" until 25 words private key entered
-//            nextButton.enabled = false
-//            break
-//        default:
-//            nextButton.enabled = true
-
-//        }
-    }
 
 
     function openCreateWalletPage() {
@@ -126,10 +108,9 @@ Rectangle {
 
     //! actually writes the wallet
     function applySettings() {
-        print ("Here we apply the settings");
+        console.log("Here we apply the settings");
         // here we need to actually move wallet to the new location
-        // put wallet files to the subdirectory with the same name as
-        // wallet name
+
         var new_wallet_filename = settings.wallet_path + "/"
                 + settings.account_name + "/"
                 + settings.account_name;
@@ -138,9 +119,12 @@ Rectangle {
         if (new_wallet_filename !== settings.wallet_filename) {
             // using previously saved wallet;
             settings.wallet.store(new_wallet_filename);
-            //walletManager.moveWallet(settingsObject.wallet_filename, new_wallet_filename);
         }
 
+        // protecting wallet with password
+        console.log("Protecting wallet with password: " + settings.wallet_password)
+        settings.wallet.setPassword(settings.wallet_password);
+
         // saving wallet_filename;
         settings['wallet_filename'] = new_wallet_filename;
 
@@ -163,17 +147,6 @@ Rectangle {
     }
 
 
-//    Settings {
-//        id: persistentSettings
-
-//        property string language
-//        property string account_name
-//        property string wallet_path
-//        property bool   auto_donations_enabled : true
-//        property int    auto_donations_amount : 50
-//        property bool   allow_background_mining : true
-//    }
-
     Rectangle {
         id: nextButton
         anchors.verticalCenter: parent.verticalCenter