diff --git a/lbry/blockchain/lbrycrd.py b/lbry/blockchain/lbrycrd.py
index 62acedf10..71b6931ae 100644
--- a/lbry/blockchain/lbrycrd.py
+++ b/lbry/blockchain/lbrycrd.py
@@ -15,7 +15,7 @@ import zmq.asyncio
 
 from lbry.conf import Config
 from lbry.event import EventController
-from lbry.error import LbrycrdEventSubscriptionError
+from lbry.error import LbrycrdEventSubscriptionError, LbrycrdUnauthorizedError
 
 from .database import BlockchainDB
 from .ledger import Ledger, RegTestLedger
@@ -248,6 +248,8 @@ class Lbrycrd:
             "params": params or []
         }
         async with self.session.post(self.rpc_url, json=message) as resp:
+            if resp.status == 401:
+                raise LbrycrdUnauthorizedError()
             try:
                 result = await resp.json()
             except aiohttp.ContentTypeError as e:
diff --git a/lbry/error/README.md b/lbry/error/README.md
index 791b63309..420e554bc 100644
--- a/lbry/error/README.md
+++ b/lbry/error/README.md
@@ -82,4 +82,5 @@ Code | Name | Message
 702 | CurrencyConversion | {message}
 703 | InvalidCurrency | Invalid currency: {currency} is not a supported currency.
 **8xx** | Lbrycrd | **Lbrycrd**
+801 | LbrycrdUnauthorized | Failed to authenticate with lbrycrd. Perhaps wrong username or password?
 811 | LbrycrdEventSubscription | Lbrycrd is not publishing '{event}' events.
diff --git a/lbry/error/__init__.py b/lbry/error/__init__.py
index 66fa6c0a7..57086d852 100644
--- a/lbry/error/__init__.py
+++ b/lbry/error/__init__.py
@@ -406,6 +406,12 @@ class LbrycrdError(BaseError):
     """
 
 
+class LbrycrdUnauthorizedError(LbrycrdError):
+
+    def __init__(self):
+        super().__init__("Failed to authenticate with lbrycrd. Perhaps wrong username or password?")
+
+
 class LbrycrdEventSubscriptionError(LbrycrdError):
 
     def __init__(self, event):
diff --git a/tests/integration/blockchain/test_blockchain.py b/tests/integration/blockchain/test_blockchain.py
index aa0d4339d..9be8d1112 100644
--- a/tests/integration/blockchain/test_blockchain.py
+++ b/tests/integration/blockchain/test_blockchain.py
@@ -11,7 +11,7 @@ from lbry import Config, Database, RegTestLedger, Transaction, Output, Input
 from lbry.crypto.base58 import Base58
 from lbry.schema.claim import Stream, Channel
 from lbry.schema.support import Support
-from lbry.error import LbrycrdEventSubscriptionError
+from lbry.error import LbrycrdEventSubscriptionError, LbrycrdUnauthorizedError
 from lbry.blockchain.lbrycrd import Lbrycrd
 from lbry.blockchain.sync import BlockchainSync
 from lbry.blockchain.dewies import dewies_to_lbc, lbc_to_dewies
@@ -284,7 +284,16 @@ class SyncingBlockchainTestCase(BasicBlockchainTestCase):
         self.assertEqual(accepted or [], await self.get_accepted())
 
 
-class TestLbrycrdEvents(AsyncioTestCase):
+class TestLbrycrdAPIs(AsyncioTestCase):
+
+    async def test_unauthorized(self):
+        chain = Lbrycrd.temp_regtest()
+        await chain.ensure()
+        await chain.start()
+        await chain.get_new_address()
+        chain.conf.set(lbrycrd_rpc_pass='wrong')
+        with self.assertRaises(LbrycrdUnauthorizedError):
+            await chain.get_new_address()
 
     async def test_zmq(self):
         chain = Lbrycrd.temp_regtest()