diff --git a/src/renderer/component/splash/index.js b/src/renderer/component/splash/index.js
index 932265392..2464b48fa 100644
--- a/src/renderer/component/splash/index.js
+++ b/src/renderer/component/splash/index.js
@@ -1,7 +1,7 @@
 import { connect } from 'react-redux';
 import { selectDaemonVersionMatched } from 'redux/selectors/app';
 import { selectNotification } from 'lbry-redux';
-import { doCheckDaemonVersion } from 'redux/actions/app';
+import { doCheckDaemonVersion, doNotifyUnlockWallet } from 'redux/actions/app';
 import SplashScreen from './view';
 
 const select = state => ({
@@ -11,6 +11,10 @@ const select = state => ({
 
 const perform = dispatch => ({
   checkDaemonVersion: () => dispatch(doCheckDaemonVersion()),
+  notifyUnlockWallet: () => dispatch(doNotifyUnlockWallet()),
 });
 
-export default connect(select, perform)(SplashScreen);
+export default connect(
+  select,
+  perform
+)(SplashScreen);
diff --git a/src/renderer/component/splash/view.jsx b/src/renderer/component/splash/view.jsx
index 5985503c9..79bb92ffa 100644
--- a/src/renderer/component/splash/view.jsx
+++ b/src/renderer/component/splash/view.jsx
@@ -1,12 +1,14 @@
 import * as React from 'react';
 import { Lbry, MODALS } from 'lbry-redux';
 import LoadScreen from './internal/load-screen';
+import ModalWalletUnlock from 'modal/modalWalletUnlock';
 import ModalIncompatibleDaemon from 'modal/modalIncompatibleDaemon';
 import ModalUpgrade from 'modal/modalUpgrade';
 import ModalDownloading from 'modal/modalDownloading';
 
 type Props = {
   checkDaemonVersion: () => Promise<any>,
+  notifyUnlockWallet: () => Promise<any>,
   notification: ?{
     id: string,
   },
@@ -17,6 +19,7 @@ type State = {
   message: string,
   isRunning: boolean,
   isLagging: boolean,
+  launchedModal: boolean,
 };
 
 export class SplashScreen extends React.PureComponent<Props, State> {
@@ -28,18 +31,23 @@ export class SplashScreen extends React.PureComponent<Props, State> {
       message: __('Connecting'),
       isRunning: false,
       isLagging: false,
+      launchedModal: false,
     };
   }
 
   updateStatus() {
     Lbry.status().then(status => {
       this._updateStatusCallback(status);
+      window.status = status;
     });
   }
 
   _updateStatusCallback(status) {
+    const { notifyUnlockWallet } = this.props;
+    const { launchedModal } = this.state;
+
     const startupStatus = status.startup_status;
-    if (startupStatus.code == 'started') {
+    if (startupStatus.code === 'started') {
       // Wait until we are able to resolve a name before declaring
       // that we are done.
       // TODO: This is a hack, and the logic should live in the daemon
@@ -61,6 +69,7 @@ export class SplashScreen extends React.PureComponent<Props, State> {
       });
       return;
     }
+
     if (status.blockchain_status && status.blockchain_status.blocks_behind > 0) {
       const format =
         status.blockchain_status.blocks_behind == 1 ? '%s block behind' : '%s blocks behind';
@@ -69,6 +78,17 @@ export class SplashScreen extends React.PureComponent<Props, State> {
         details: __(format, status.blockchain_status.blocks_behind),
         isLagging: startupStatus.is_lagging,
       });
+    } else if (startupStatus.code === 'waiting_for_wallet_unlock') {
+      this.setState({
+        message: __('Unlock Wallet'),
+        details: __('Please unlock your wallet to proceed.'),
+        isLagging: false,
+        isRunning: true,
+      });
+
+      if (launchedModal === false) {
+        this.setState({ launchedModal: true }, () => notifyUnlockWallet());
+      }
     } else {
       this.setState({
         message: __('Network Loading'),
@@ -114,6 +134,7 @@ export class SplashScreen extends React.PureComponent<Props, State> {
             in the modals won't work. */}
         {isRunning && (
           <React.Fragment>
+            {notificationId === MODALS.WALLET_UNLOCK && <ModalWalletUnlock />}
             {notificationId === MODALS.INCOMPATIBLE_DAEMON && <ModalIncompatibleDaemon />}
             {notificationId === MODALS.UPGRADE && <ModalUpgrade />}
             {notificationId === MODALS.DOWNLOADING && <ModalDownloading />}
diff --git a/src/renderer/modal/modalRouter/view.jsx b/src/renderer/modal/modalRouter/view.jsx
index 9f4cd609e..34152119f 100644
--- a/src/renderer/modal/modalRouter/view.jsx
+++ b/src/renderer/modal/modalRouter/view.jsx
@@ -23,6 +23,9 @@ import ModalSendTip from '../modalSendTip';
 import ModalPublish from '../modalPublish';
 import ModalOpenExternalLink from '../modalOpenExternalLink';
 import ModalConfirmThumbnailUpload from 'modal/modalConfirmThumbnailUpload';
+import ModalWalletEncrypt from 'modal/modalWalletEncrypt';
+import ModalWalletDecrypt from 'modal/modalWalletDecrypt';
+import ModalWalletUnlock from 'modal/modalWalletUnlock';
 
 type Props = {
   modal: string,
@@ -165,6 +168,12 @@ class ModalRouter extends React.PureComponent<Props> {
         return <ModalConfirmTransaction {...notificationProps} />;
       case MODALS.CONFIRM_THUMBNAIL_UPLOAD:
         return <ModalConfirmThumbnailUpload {...notificationProps} />;
+      case MODALS.WALLET_ENCRYPT:
+        return <ModalWalletEncrypt {...notificationProps} />;
+      case MODALS.WALLET_DECRYPT:
+        return <ModalWalletDecrypt {...notificationProps} />;
+      case MODALS.WALLET_UNLOCK:
+        return <ModalWalletUnlock {...notificationProps} />;
       default:
         return null;
     }
diff --git a/src/renderer/modal/modalWalletDecrypt/index.js b/src/renderer/modal/modalWalletDecrypt/index.js
new file mode 100644
index 000000000..5df3acdc2
--- /dev/null
+++ b/src/renderer/modal/modalWalletDecrypt/index.js
@@ -0,0 +1,23 @@
+import { connect } from 'react-redux';
+import {
+  doHideNotification,
+  doWalletStatus,
+  doWalletDecrypt,
+  selectWalletDecryptSucceeded,
+} from 'lbry-redux';
+import ModalWalletDecrypt from './view';
+
+const select = state => ({
+  walletDecryptSucceded: selectWalletDecryptSucceeded(state),
+});
+
+const perform = dispatch => ({
+  closeModal: () => dispatch(doHideNotification()),
+  decryptWallet: password => dispatch(doWalletDecrypt(password)),
+  updateWalletStatus: () => dispatch(doWalletStatus()),
+});
+
+export default connect(
+  select,
+  perform
+)(ModalWalletDecrypt);
diff --git a/src/renderer/modal/modalWalletDecrypt/view.jsx b/src/renderer/modal/modalWalletDecrypt/view.jsx
new file mode 100644
index 000000000..0452d7956
--- /dev/null
+++ b/src/renderer/modal/modalWalletDecrypt/view.jsx
@@ -0,0 +1,61 @@
+// @flow
+import React from 'react';
+import { FormRow, FormField } from 'component/common/form';
+import { Modal } from 'modal/modal';
+import Button from 'component/button';
+
+type Props = {
+  closeModal: () => void,
+  unlockWallet: string => void,
+  walletDecryptSucceded: boolean,
+  updateWalletStatus: boolean,
+};
+
+class ModalWalletDecrypt extends React.PureComponent<Props> {
+  state = {
+    submitted: false, // Prior actions could be marked complete
+  };
+
+  submitDecryptForm() {
+    this.setState({ submitted: true });
+    this.props.decryptWallet();
+  }
+
+  componentDidUpdate() {
+    const { props, state } = this;
+
+    if (state.submitted && props.walletDecryptSucceded === true) {
+      props.closeModal();
+      props.updateWalletStatus();
+    }
+  }
+
+  render() {
+    const { closeModal, walletDecryptSucceded } = this.props;
+
+    return (
+      <Modal
+        isOpen
+        contentLabel={__('Decrypt Wallet')}
+        type="confirm"
+        confirmButtonLabel={__('Decrypt Wallet')}
+        abortButtonLabel={__('Cancel')}
+        onConfirmed={() => this.submitDecryptForm()}
+        onAborted={closeModal}
+      >
+        {__(
+          'Your wallet has been encrypted with a local password, performing this action will remove this password.'
+        )}
+        <FormRow padded>
+          <Button
+            button="link"
+            label={__('Learn more')}
+            href="https://lbry.io/faq/wallet-encryption"
+          />
+        </FormRow>
+      </Modal>
+    );
+  }
+}
+
+export default ModalWalletDecrypt;
diff --git a/src/renderer/modal/modalWalletEncrypt/index.js b/src/renderer/modal/modalWalletEncrypt/index.js
new file mode 100644
index 000000000..5a7bead2e
--- /dev/null
+++ b/src/renderer/modal/modalWalletEncrypt/index.js
@@ -0,0 +1,26 @@
+import { connect } from 'react-redux';
+import {
+  doHideNotification,
+  doWalletStatus,
+  doWalletEncrypt,
+  selectWalletEncryptPending,
+  selectWalletEncryptSucceeded,
+  selectWalletEncryptResult,
+} from 'lbry-redux';
+import ModalWalletEncrypt from './view';
+
+const select = state => ({
+  walletEncryptSucceded: selectWalletEncryptSucceeded(state),
+  walletEncryptResult: selectWalletEncryptResult(state),
+});
+
+const perform = dispatch => ({
+  closeModal: () => dispatch(doHideNotification()),
+  encryptWallet: password => dispatch(doWalletEncrypt(password)),
+  updateWalletStatus: () => dispatch(doWalletStatus()),
+});
+
+export default connect(
+  select,
+  perform
+)(ModalWalletEncrypt);
diff --git a/src/renderer/modal/modalWalletEncrypt/view.jsx b/src/renderer/modal/modalWalletEncrypt/view.jsx
new file mode 100644
index 000000000..ac721ab0e
--- /dev/null
+++ b/src/renderer/modal/modalWalletEncrypt/view.jsx
@@ -0,0 +1,142 @@
+// @flow
+import React from 'react';
+import { FormRow, FormField } from 'component/common/form';
+import { Modal } from 'modal/modal';
+import Button from 'component/button';
+
+type Props = {
+  closeModal: () => void,
+  unlockWallet: string => void,
+  walletEncryptSucceded: boolean,
+  walletEncryptResult: boolean,
+  updateWalletStatus: boolean,
+};
+
+class ModalWalletEncrypt extends React.PureComponent<Props> {
+  state = {
+    newPassword: null,
+    newPasswordConfirm: null,
+    passwordMismatch: false,
+    understandConfirmed: false,
+    understandError: false,
+    submitted: false, // Prior actions could be marked complete
+    failMessage: false,
+  };
+
+  onChangeNewPassword(event) {
+    this.setState({ newPassword: event.target.value });
+  }
+
+  onChangeNewPasswordConfirm(event) {
+    this.setState({ newPasswordConfirm: event.target.value });
+  }
+
+  onChangeUnderstandConfirm(event) {
+    this.setState({
+      understandConfirmed: /^.?i understand.?$/i.test(event.target.value),
+    });
+  }
+
+  submitEncryptForm() {
+    const { state } = this;
+
+    let invalidEntries = false;
+
+    if (state.newPassword !== state.newPasswordConfirm) {
+      this.setState({ passwordMismatch: true });
+      invalidEntries = true;
+    }
+
+    if (state.understandConfirmed === false) {
+      this.setState({ understandError: true });
+      invalidEntries = true;
+    }
+
+    if (invalidEntries === true) {
+      return;
+    }
+
+    this.setState({ submitted: true });
+    this.props.encryptWallet(state.newPassword);
+  }
+
+  componentDidUpdate() {
+    const { props, state } = this;
+
+    if (state.submitted) {
+      if (props.walletEncryptSucceded === true) {
+        props.closeModal();
+        props.updateWalletStatus();
+      } else if (props.walletEncryptSucceded === false) {
+        // See https://github.com/lbryio/lbry/issues/1307
+        this.setState({ failMessage: 'Unable to encrypt wallet.' });
+      }
+    }
+  }
+
+  render() {
+    const { closeModal } = this.props;
+
+    const { passwordMismatch, understandError, failMessage } = this.state;
+
+    return (
+      <Modal
+        isOpen
+        contentLabel={__('Encrypt Wallet')}
+        type="confirm"
+        confirmButtonLabel={__('Encrypt Wallet')}
+        abortButtonLabel={__('Cancel')}
+        onConfirmed={() => this.submitEncryptForm()}
+        onAborted={closeModal}
+      >
+        {__(
+          'Encrypting your wallet will require a password to access your local wallet data when LBRY starts. Please enter a new password for your wallet.'
+        )}
+        <FormRow padded>
+          <FormField
+            stretch
+            error={passwordMismatch === true ? 'Passwords do not match' : false}
+            label={__('New Password')}
+            type="password"
+            name="wallet-new-password"
+            onChange={event => this.onChangeNewPassword(event)}
+          />
+        </FormRow>
+        <FormRow padded>
+          <FormField
+            stretch
+            error={passwordMismatch === true ? 'Passwords do not match' : false}
+            label={__('Confirm Password')}
+            type="password"
+            name="wallet-new-password-confirm"
+            onChange={event => this.onChangeNewPasswordConfirm(event)}
+          />
+        </FormRow>
+        <br />
+        {__(
+          'If your password is lost, it cannot be recovered. You will not be able to access your wallet without a password.'
+        )}
+        <FormRow padded>
+          <FormField
+            stretch
+            error={understandError === true ? 'You must enter "I understand"' : false}
+            label={__('Enter "I understand"')}
+            type="text"
+            name="wallet-understand"
+            onChange={event => this.onChangeUnderstandConfirm(event)}
+          />
+        </FormRow>
+        <FormRow padded>
+          <Button
+            button="link"
+            label={__('Learn more')}
+            href="https://lbry.io/faq/wallet-encryption"
+          />
+        </FormRow>
+        {failMessage && <div className="error-text">{__(failMessage)}</div>}
+      </Modal>
+    );
+  }
+}
+
+export default ModalWalletEncrypt;
diff --git a/src/renderer/modal/modalWalletUnlock/index.js b/src/renderer/modal/modalWalletUnlock/index.js
new file mode 100644
index 000000000..83c7c60ef
--- /dev/null
+++ b/src/renderer/modal/modalWalletUnlock/index.js
@@ -0,0 +1,24 @@
+import { connect } from 'react-redux';
+import {
+  doHideNotification,
+  doWalletUnlock,
+  selectWalletUnlockPending,
+  selectWalletUnlockSucceeded,
+} from 'lbry-redux';
+import { doQuit } from 'redux/actions/app';
+import ModalWalletUnlock from './view';
+
+const select = state => ({
+  walletUnlockSucceded: selectWalletUnlockSucceeded(state),
+});
+
+const perform = dispatch => ({
+  closeModal: () => dispatch(doHideNotification()),
+  quit: () => dispatch(doQuit()),
+  unlockWallet: password => dispatch(doWalletUnlock(password)),
+});
+
+export default connect(
+  select,
+  perform
+)(ModalWalletUnlock);
diff --git a/src/renderer/modal/modalWalletUnlock/view.jsx b/src/renderer/modal/modalWalletUnlock/view.jsx
new file mode 100644
index 000000000..00ef54e38
--- /dev/null
+++ b/src/renderer/modal/modalWalletUnlock/view.jsx
@@ -0,0 +1,71 @@
+// @flow
+import React from 'react';
+import { FormRow, FormField } from 'component/common/form';
+import { Modal } from 'modal/modal';
+import Button from 'component/button';
+
+type Props = {
+  closeModal: () => void,
+  quit: () => void,
+  unlockWallet: string => void,
+  walletUnlockSucceded: boolean,
+};
+
+class ModalWalletUnlock extends React.PureComponent<Props> {
+  state = {
+    password: null,
+  };
+
+  componentDidUpdate() {
+    const { props } = this;
+
+    if (props.walletUnlockSucceded === true) {
+      props.closeModal();
+    }
+  }
+
+  onChangePassword(event) {
+    this.setState({ password: event.target.value });
+  }
+
+  render() {
+    const { quit, unlockWallet, walletUnlockSucceded, closeModal } = this.props;
+
+    const { password } = this.state;
+
+    return (
+      <Modal
+        isOpen
+        contentLabel={__('Unlock Wallet')}
+        type="confirm"
+        confirmButtonLabel={__('Unlock')}
+        abortButtonLabel={__('Exit')}
+        onConfirmed={() => unlockWallet(password)}
+        onAborted={quit}
+      >
+        {__(
+          'Your wallet has been encrypted with a local password. Please enter your wallet password to proceed.'
+        )}
+        <FormRow padded>
+          <FormField
+            stretch
+            error={walletUnlockSucceded === false ? 'Incorrect Password' : false}
+            label={__('Wallet Password')}
+            type="password"
+            name="wallet-password"
+            onChange={event => this.onChangePassword(event)}
+          />
+        </FormRow>
+        <FormRow padded>
+          <Button
+            button="link"
+            label={__('Learn more')}
+            href="https://lbry.io/faq/wallet-encryption"
+          />
+        </FormRow>
+      </Modal>
+    );
+  }
+}
+
+export default ModalWalletUnlock;
diff --git a/src/renderer/page/settings/index.js b/src/renderer/page/settings/index.js
index 387b0fb88..d0c090d06 100644
--- a/src/renderer/page/settings/index.js
+++ b/src/renderer/page/settings/index.js
@@ -1,6 +1,6 @@
 import { connect } from 'react-redux';
 import * as settings from 'constants/settings';
-import { doClearCache } from 'redux/actions/app';
+import { doClearCache, doNotifyEncryptWallet, doNotifyDecryptWallet } from 'redux/actions/app';
 import {
   doSetDaemonSetting,
   doSetClientSetting,
@@ -13,6 +13,7 @@ import {
   selectLanguages,
 } from 'redux/selectors/settings';
 import { selectCurrentLanguage } from 'redux/selectors/app';
+import { doWalletStatus, selectWalletIsEncrypted } from 'lbry-redux';
 import SettingsPage from './view';
 
 const select = state => ({
@@ -26,6 +27,7 @@ const select = state => ({
   languages: selectLanguages(state),
   automaticDarkModeEnabled: makeSelectClientSetting(settings.AUTOMATIC_DARK_MODE_ENABLED)(state),
   autoplay: makeSelectClientSetting(settings.AUTOPLAY)(state),
+  walletEncrypted: selectWalletIsEncrypted(state),
 });
 
 const perform = dispatch => ({
@@ -34,6 +36,9 @@ const perform = dispatch => ({
   setClientSetting: (key, value) => dispatch(doSetClientSetting(key, value)),
   getThemes: () => dispatch(doGetThemes()),
   changeLanguage: newLanguage => dispatch(doChangeLanguage(newLanguage)),
+  encryptWallet: () => dispatch(doNotifyEncryptWallet()),
+  decryptWallet: () => dispatch(doNotifyDecryptWallet()),
+  updateWalletStatus: () => dispatch(doWalletStatus()),
 });
 
 export default connect(
diff --git a/src/renderer/page/settings/view.jsx b/src/renderer/page/settings/view.jsx
index 1bed3cf47..64104c4b3 100644
--- a/src/renderer/page/settings/view.jsx
+++ b/src/renderer/page/settings/view.jsx
@@ -31,6 +31,9 @@ type Props = {
   themes: Array<string>,
   automaticDarkModeEnabled: boolean,
   autoplay: boolean,
+  encryptWallet: () => void,
+  decryptWallet: () => void,
+  walletEncrypted: boolean,
 };
 
 type State = {
@@ -58,7 +61,10 @@ class SettingsPage extends React.PureComponent<Props, State> {
   }
 
   componentDidMount() {
-    this.props.getThemes();
+    const { props } = this;
+
+    props.getThemes();
+    props.updateWalletStatus();
   }
 
   onRunOnStartChange(event: SyntheticInputEvent<*>) {
@@ -111,6 +117,11 @@ class SettingsPage extends React.PureComponent<Props, State> {
     this.props.setClientSetting(settings.SHOW_NSFW, event.target.checked);
   }
 
+  onChangeEncryptWallet() {
+    const { props } = this;
+    props.walletEncrypted ? props.decryptWallet() : props.encryptWallet();
+  }
+
   setDaemonSetting(name: string, value: boolean | string | Price) {
     this.props.setDaemonSetting(name, value);
   }
@@ -138,6 +149,7 @@ class SettingsPage extends React.PureComponent<Props, State> {
       themes,
       automaticDarkModeEnabled,
       autoplay,
+      walletEncrypted,
     } = this.props;
 
     const noDaemonSettings = !daemonSettings || Object.keys(daemonSettings).length === 0;
@@ -272,32 +284,43 @@ class SettingsPage extends React.PureComponent<Props, State> {
                 )}
               />
             </section>
-            {
-              <section className="card card--section">
-                <div className="card__title">{__('Theme')}</div>
-                <FormField
-                  name="theme_select"
-                  type="select"
-                  onChange={this.onThemeChange}
-                  value={currentTheme}
-                  disabled={automaticDarkModeEnabled}
-                >
-                  {themes.map(theme => (
-                    <option key={theme} value={theme}>
-                      {theme}
-                    </option>
-                  ))}
-                </FormField>
-                <FormField
-                  type="checkbox"
-                  name="automatic_dark_mode"
-                  onChange={e => this.onAutomaticDarkModeChange(e.target.checked)}
-                  checked={automaticDarkModeEnabled}
-                  disabled={isDarkModeEnabled}
-                  postfix={__('Automatic dark mode (9pm to 8am)')}
-                />
-              </section>
-            }
+            <section className="card card--section">
+              <div className="card__title">{__('Theme')}</div>
+              <FormField
+                name="theme_select"
+                type="select"
+                onChange={this.onThemeChange}
+                value={currentTheme}
+                disabled={automaticDarkModeEnabled}
+              >
+                {themes.map(theme => (
+                  <option key={theme} value={theme}>
+                    {theme}
+                  </option>
+                ))}
+              </FormField>
+              <FormField
+                type="checkbox"
+                name="automatic_dark_mode"
+                onChange={e => this.onAutomaticDarkModeChange(e.target.checked)}
+                checked={automaticDarkModeEnabled}
+                disabled={isDarkModeEnabled}
+                postfix={__('Automatic dark mode (9pm to 8am)')}
+              />
+            </section>
+            <section className="card card--section">
+              <div className="card__title">{__('Wallet Security')}</div>
+              <FormField
+                type="checkbox"
+                name="encrypt_wallet"
+                onChange={e => this.onChangeEncryptWallet(e)}
+                checked={walletEncrypted}
+                postfix={__('Encrypt my wallet with a custom password.')}
+                helper={__(
+                  'Secure your local wallet data with a custom password. Lost passwords cannot be recovered.'
+                )}
+              />
+            </section>
             <section className="card card--section">
               <div className="card__title">{__('Application Cache')}</div>
               <span className="card__subtitle">
diff --git a/src/renderer/redux/actions/app.js b/src/renderer/redux/actions/app.js
index 96d215e23..5e212e9f9 100644
--- a/src/renderer/redux/actions/app.js
+++ b/src/renderer/redux/actions/app.js
@@ -274,6 +274,36 @@ export function doCheckDaemonVersion() {
   };
 }
 
+export function doNotifyEncryptWallet() {
+  return dispatch => {
+    dispatch(
+      doNotify({
+        id: MODALS.WALLET_ENCRYPT,
+      })
+    );
+  };
+}
+
+export function doNotifyDecryptWallet() {
+  return dispatch => {
+    dispatch(
+      doNotify({
+        id: MODALS.WALLET_DECRYPT,
+      })
+    );
+  };
+}
+
+export function doNotifyUnlockWallet() {
+  return dispatch => {
+    dispatch(
+      doNotify({
+        id: MODALS.WALLET_UNLOCK,
+      })
+    );
+  };
+}
+
 export function doAlertError(errorList) {
   return dispatch => {
     dispatch(
diff --git a/src/renderer/scss/_gui.scss b/src/renderer/scss/_gui.scss
index c240197da..5890e1c47 100644
--- a/src/renderer/scss/_gui.scss
+++ b/src/renderer/scss/_gui.scss
@@ -361,3 +361,7 @@ p {
     margin-top: $spacing-vertical * 2/3;
   }
 }
+
+.error-text {
+  color: var(--color-error);
+}