diff --git a/apps/browser-extension-wallet/src/hooks/useWalletManager.ts b/apps/browser-extension-wallet/src/hooks/useWalletManager.ts
index fda5f5640..cd1bc0234 100644
--- a/apps/browser-extension-wallet/src/hooks/useWalletManager.ts
+++ b/apps/browser-extension-wallet/src/hooks/useWalletManager.ts
@@ -208,6 +208,10 @@ export interface UseWalletManager {
   reloadWallet: () => Promise<void>;
   addAccount: (props: WalletManagerAddAccountProps) => Promise<void>;
   getMnemonic: (passphrase: Uint8Array) => Promise<string[]>;
+  getMnemonicForWallet: (
+    wallet: AnyWallet<Wallet.WalletMetadata, Wallet.AccountMetadata>,
+    passphrase: Uint8Array
+  ) => Promise<string[]>;
   getSharedWalletExtendedPublicKey: (passphrase: Uint8Array) => Promise<Wallet.Cardano.Cip1854ExtendedAccountPublicKey>;
   enableCustomNode: (network: EnvironmentTypes, value: string) => Promise<void>;
   generateSharedWalletKey: GenerateSharedWalletKeyFn;
@@ -1237,6 +1241,28 @@ export const useWalletManager = (): UseWalletManager => {
     }
   };
 
+  const getMnemonicForWallet = useCallback(
+    async (wallet: AnyWallet<Wallet.WalletMetadata, Wallet.AccountMetadata>, passphrase: Uint8Array) => {
+      switch (wallet.type) {
+        case WalletType.InMemory: {
+          const keyMaterialBytes = await Wallet.KeyManagement.emip3decrypt(
+            Buffer.from(wallet.encryptedSecrets.keyMaterial, 'hex'),
+            passphrase
+          );
+          const keyMaterialBuffer = Buffer.from(keyMaterialBytes);
+          const mnemonic = keyMaterialBuffer.toString('utf8').split(' ');
+          clearBytes(passphrase);
+          clearBytes(keyMaterialBytes);
+          return mnemonic;
+        }
+        case WalletType.Ledger:
+        case WalletType.Trezor:
+          throw new Error('Mnemonic is not available for hardware wallets');
+      }
+    },
+    []
+  );
+
   const getMnemonic = useCallback(
     async (passphrase: Uint8Array) => {
       const { activeBlockchain } = await backgroundService.getBackgroundStorage();
@@ -1256,27 +1282,9 @@ export const useWalletManager = (): UseWalletManager => {
         throw new Error('Wallet not found');
       }
 
-      switch (wallet.type) {
-        case WalletType.InMemory: {
-          const keyMaterialBytes = await Wallet.KeyManagement.emip3decrypt(
-            Buffer.from(wallet.encryptedSecrets.keyMaterial, 'hex'),
-            passphrase
-          );
-
-          const keyMaterialBuffer = Buffer.from(keyMaterialBytes);
-
-          const mnemonic = keyMaterialBuffer.toString('utf8').split(' ');
-          clearBytes(passphrase);
-          clearBytes(keyMaterialBytes);
-          clearBytes(keyMaterialBuffer);
-          return mnemonic;
-        }
-        case WalletType.Ledger:
-        case WalletType.Trezor:
-          throw new Error('Mnemonic is not available for hardware wallets');
-      }
+      return getMnemonicForWallet(wallet, passphrase);
     },
-    [backgroundService]
+    [backgroundService, getMnemonicForWallet]
   );
 
   const getSharedWalletExtendedPublicKey = useCallback(
@@ -1471,6 +1479,7 @@ export const useWalletManager = (): UseWalletManager => {
     bitcoinWalletManager,
     bitcoinWallet,
     getMnemonic,
+    getMnemonicForWallet,
     enableCustomNode,
     generateSharedWalletKey,
     createMultiSigAccount,
diff --git a/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/CreateWallet.test.tsx b/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/CreateWallet.test.tsx
index 8baa2a2a3..aa38cca6c 100644
--- a/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/CreateWallet.test.tsx
+++ b/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/CreateWallet.test.tsx
@@ -126,15 +126,25 @@ describe('Multi Wallet Setup/Create Wallet', () => {
       </AppSettingsProvider>
     );
 
+    // Initial state - on SelectBlockchain step
     await screen.findByTestId('wallet-setup-step-btn-next');
     expect(formDirty).toBe(false);
 
+    // Navigate to RecoveryPhraseWriteDown step
     const nextButton = getNextButton();
     fireEvent.click(nextButton);
+    await screen.findByTestId('wallet-setup-step-btn-next');
+    expect(formDirty).toBe(false);
+
+    // Navigate to RecoveryPhraseInput step - this marks form as dirty
+    const nextButton2 = getNextButton();
+    fireEvent.click(nextButton2);
     await waitFor(() => expect(formDirty).toBe(true));
 
+    // Go back to RecoveryPhraseWriteDown - form should still be dirty
     const backButton = getBackButton();
     fireEvent.click(backButton);
-    await waitFor(() => expect(formDirty).toBe(false));
+    await screen.findByTestId('wallet-setup-step-btn-next');
+    expect(formDirty).toBe(true);
   });
 });
diff --git a/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/CreateWallet.tsx b/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/CreateWallet.tsx
index 14f2807ee..99d23b6ab 100644
--- a/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/CreateWallet.tsx
+++ b/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/CreateWallet.tsx
@@ -7,6 +7,9 @@ import { ChooseRecoveryMethod } from './steps/ChooseRecoveryMethod';
 import { SecurePaperWallet } from './steps/SecurePaperWallet';
 import { SavePaperWallet } from './steps/SavePaperWallet';
 import { SelectBlockchain } from './steps/SelectBlockchain';
+import { ReuseRecoveryPhrase } from './steps/ReuseRecoveryPhrase';
+import { EnterWalletPassword } from './steps/EnterWalletPassword';
+import { RecoveryPhraseError } from './steps/RecoveryPhraseError';
 
 export const CreateWallet = (): JSX.Element => (
   <CreateWalletProvider>
@@ -23,6 +26,12 @@ export const CreateWallet = (): JSX.Element => (
         case WalletCreateStep.RecoveryPhraseWriteDown:
         case WalletCreateStep.RecoveryPhraseInput:
           return <NewRecoveryPhrase />;
+        case WalletCreateStep.ReuseRecoveryPhrase:
+          return <ReuseRecoveryPhrase />;
+        case WalletCreateStep.EnterWalletPassword:
+          return <EnterWalletPassword />;
+        case WalletCreateStep.RecoveryPhraseError:
+          return <RecoveryPhraseError />;
         // Common steps
         case WalletCreateStep.Setup:
           return <Setup />;
diff --git a/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/context.tsx b/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/context.tsx
index dff97be81..ac49e8320 100644
--- a/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/context.tsx
+++ b/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/context.tsx
@@ -1,5 +1,5 @@
 /* eslint-disable unicorn/no-null, complexity */
-import { CreateWalletParams } from '@hooks';
+import { CreateWalletParams, useLocalStorage } from '@hooks';
 import { Wallet } from '@lace/cardano';
 import { walletRoutePaths } from '@routes';
 import React, { createContext, useCallback, useContext, useMemo, useState } from 'react';
@@ -10,7 +10,10 @@ import { WalletCreateStep } from './types';
 import { RecoveryMethod } from '../types';
 import { usePostHogClientContext } from '@providers/PostHogClientProvider';
 import { PublicPgpKeyData } from '@src/types';
-import { Blockchain } from '@cardano-sdk/web-extension';
+import { Blockchain, AnyWallet, WalletConflictError, WalletType } from '@cardano-sdk/web-extension';
+import { useObservable } from '@lace/common';
+import { walletRepository } from '@lib/wallet-api-ui';
+import { getWalletBlockchain } from './get-wallet-blockchain';
 
 type OnNameChange = (state: { name: string }) => void;
 interface PgpValidation {
@@ -32,6 +35,13 @@ interface State {
   setPgpValidation: React.Dispatch<React.SetStateAction<PgpValidation>>;
   selectedBlockchain: Blockchain;
   setSelectedBlockchain: React.Dispatch<React.SetStateAction<Blockchain>>;
+  walletToReuse: AnyWallet<Wallet.WalletMetadata, Wallet.AccountMetadata> | null;
+  setWalletToReuse: React.Dispatch<
+    React.SetStateAction<AnyWallet<Wallet.WalletMetadata, Wallet.AccountMetadata> | null>
+  >;
+  showRecoveryPhraseError: () => void;
+  setMnemonic: (mnemonic: string[]) => void;
+  nonSelectedBlockchainWallets: AnyWallet<Wallet.WalletMetadata, Wallet.AccountMetadata>[] | undefined;
 }
 
 interface Props {
@@ -62,11 +72,17 @@ export const CreateWalletProvider = ({ children }: Props): React.ReactElement =>
   } = useHotWalletCreation({
     initialMnemonic: Wallet.KeyManagement.util.generateMnemonicWords()
   });
+  const [, { updateLocalStorage: setShowWalletConflictError }] = useLocalStorage('showWalletConflictError', false);
   const [selectedBlockchain, setSelectedBlockchain] = useState<Blockchain>('Cardano');
   const [step, setStep] = useState<WalletCreateStep>(WalletCreateStep.SelectBlockchain);
+  const [walletToReuse, setWalletToReuse] = useState<AnyWallet<Wallet.WalletMetadata, Wallet.AccountMetadata> | null>(
+    null
+  );
   const [recoveryMethod, setRecoveryMethod] = useState<RecoveryMethod>('mnemonic');
   const [pgpInfo, setPgpInfo] = useState<PublicPgpKeyData>(INITIAL_PGP_STATE);
   const [pgpValidation, setPgpValidation] = useState<PgpValidation>({ error: null, success: null });
+  const wallets = useObservable(walletRepository.wallets$);
+
   const generateMnemonic = useCallback(() => {
     setCreateWalletData((prevState) => ({ ...prevState, mnemonic: Wallet.KeyManagement.util.generateMnemonicWords() }));
   }, [setCreateWalletData]);
@@ -82,6 +98,26 @@ export const CreateWalletProvider = ({ children }: Props): React.ReactElement =>
     console.error('finalizeBitcoinWalletCreation');
   }, []);
 
+  const nonSelectedBlockchainWallets = useMemo(
+    () =>
+      wallets?.filter(
+        (wallet) =>
+          getWalletBlockchain(wallet).toLowerCase() !== selectedBlockchain.toLowerCase() &&
+          wallet.type === WalletType.InMemory
+      ),
+    [selectedBlockchain, wallets]
+  );
+
+  const showRecoveryPhraseError = useCallback(() => setStep(WalletCreateStep.RecoveryPhraseError), [setStep]);
+  const setMnemonic = useCallback(
+    (mnemonic: string[]) =>
+      setCreateWalletData((prevState) => ({
+        ...prevState,
+        mnemonic
+      })),
+    [setCreateWalletData]
+  );
+
   const finalizeWalletCreation = useCallback(
     async (params: Partial<CreateWalletParams>) => {
       const wallet = await createHotWallet({ ...params, blockchain: selectedBlockchain });
@@ -96,15 +132,37 @@ export const CreateWalletProvider = ({ children }: Props): React.ReactElement =>
     [createHotWallet, selectedBlockchain, sendPostWalletAddAnalytics, postHogActions.create.WALLET_ADDED, pgpInfo]
   );
 
+  const handleSetupStep = useCallback(
+    // eslint-disable-next-line consistent-return
+    async (state: Partial<CreateWalletParams>) => {
+      if (recoveryMethod !== 'mnemonic' && recoveryMethod !== 'mnemonic-bitcoin') {
+        return setStep(WalletCreateStep.SavePaperWallet);
+      }
+
+      try {
+        const finalizationFn = recoveryMethod === 'mnemonic' ? finalizeWalletCreation : finalizeBitcoinWalletCreation;
+        await finalizationFn(state);
+      } catch (error) {
+        if (error instanceof WalletConflictError) {
+          setShowWalletConflictError(true);
+        } else {
+          throw error;
+        }
+      } finally {
+        history.push(walletRoutePaths.assets);
+        window.location.reload();
+      }
+    },
+    [recoveryMethod, finalizeWalletCreation, finalizeBitcoinWalletCreation, history, setShowWalletConflictError]
+  );
+
   const next: State['next'] = useCallback(
-    // eslint-disable-next-line max-statements
     async (state) => {
       if (state) {
         setCreateWalletData((prevState) => ({ ...prevState, ...state }));
       }
       switch (step) {
         case WalletCreateStep.SelectBlockchain: {
-          setFormDirty(true);
           setStep(
             paperWalletEnabled ? WalletCreateStep.ChooseRecoveryMethod : WalletCreateStep.RecoveryPhraseWriteDown
           );
@@ -112,12 +170,27 @@ export const CreateWalletProvider = ({ children }: Props): React.ReactElement =>
         }
         case WalletCreateStep.ChooseRecoveryMethod: {
           if (recoveryMethod === 'mnemonic' || recoveryMethod === 'mnemonic-bitcoin') {
-            setStep(WalletCreateStep.RecoveryPhraseWriteDown);
+            const nextStep =
+              nonSelectedBlockchainWallets.length > 0
+                ? WalletCreateStep.ReuseRecoveryPhrase
+                : WalletCreateStep.RecoveryPhraseWriteDown;
+            setStep(nextStep);
             break;
           }
           setStep(WalletCreateStep.SecurePaperWallet);
           break;
         }
+        case WalletCreateStep.ReuseRecoveryPhrase: {
+          setStep(WalletCreateStep.EnterWalletPassword);
+          break;
+        }
+        case WalletCreateStep.EnterWalletPassword:
+          setStep(WalletCreateStep.Setup);
+          break;
+        case WalletCreateStep.RecoveryPhraseError: {
+          setStep(WalletCreateStep.RecoveryPhraseWriteDown);
+          break;
+        }
         case WalletCreateStep.RecoveryPhraseWriteDown: {
           setFormDirty(true);
           setStep(WalletCreateStep.RecoveryPhraseInput);
@@ -129,21 +202,7 @@ export const CreateWalletProvider = ({ children }: Props): React.ReactElement =>
           break;
         }
         case WalletCreateStep.Setup: {
-          if (recoveryMethod === 'mnemonic') {
-            await finalizeWalletCreation(state);
-            history.push(walletRoutePaths.assets);
-            window.location.reload();
-            break;
-          }
-
-          if (recoveryMethod === 'mnemonic-bitcoin') {
-            await finalizeBitcoinWalletCreation();
-            history.push(walletRoutePaths.assets);
-            window.location.reload();
-            break;
-          }
-
-          setStep(WalletCreateStep.SavePaperWallet);
+          await handleSetupStep(state);
           break;
         }
         case WalletCreateStep.SavePaperWallet: {
@@ -158,12 +217,13 @@ export const CreateWalletProvider = ({ children }: Props): React.ReactElement =>
     [
       step,
       setCreateWalletData,
+      setFormDirty,
       paperWalletEnabled,
       recoveryMethod,
-      setFormDirty,
+      nonSelectedBlockchainWallets?.length,
+      handleSetupStep,
       finalizeWalletCreation,
-      history,
-      finalizeBitcoinWalletCreation
+      history
     ]
   );
 
@@ -186,10 +246,22 @@ export const CreateWalletProvider = ({ children }: Props): React.ReactElement =>
           : history.push(walletRoutePaths.newWallet.root);
         break;
       }
+      case WalletCreateStep.ReuseRecoveryPhrase: {
+        setStep(WalletCreateStep.RecoveryPhraseWriteDown);
+        break;
+      }
       case WalletCreateStep.SecurePaperWallet: {
         setStep(WalletCreateStep.ChooseRecoveryMethod);
         break;
       }
+      case WalletCreateStep.EnterWalletPassword: {
+        setStep(WalletCreateStep.ReuseRecoveryPhrase);
+        break;
+      }
+      case WalletCreateStep.RecoveryPhraseError: {
+        setStep(WalletCreateStep.ReuseRecoveryPhrase);
+        break;
+      }
       case WalletCreateStep.RecoveryPhraseInput: {
         setFormDirty(false);
         generateMnemonic();
@@ -225,7 +297,12 @@ export const CreateWalletProvider = ({ children }: Props): React.ReactElement =>
       pgpValidation,
       setPgpValidation,
       selectedBlockchain,
-      setSelectedBlockchain
+      setSelectedBlockchain,
+      setWalletToReuse,
+      walletToReuse,
+      showRecoveryPhraseError,
+      setMnemonic,
+      nonSelectedBlockchainWallets
     }),
     [
       back,
@@ -234,13 +311,13 @@ export const CreateWalletProvider = ({ children }: Props): React.ReactElement =>
       onNameChange,
       step,
       recoveryMethod,
-      setRecoveryMethod,
       pgpInfo,
-      setPgpInfo,
       pgpValidation,
-      setPgpValidation,
       selectedBlockchain,
-      setSelectedBlockchain
+      walletToReuse,
+      showRecoveryPhraseError,
+      setMnemonic,
+      nonSelectedBlockchainWallets
     ]
   );
 
diff --git a/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/get-wallet-blockchain.ts b/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/get-wallet-blockchain.ts
new file mode 100644
index 000000000..88299b87c
--- /dev/null
+++ b/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/get-wallet-blockchain.ts
@@ -0,0 +1,13 @@
+import { AnyWallet, Blockchain } from '@cardano-sdk/web-extension';
+import { Wallet } from '@lace/cardano';
+
+type AnyWalletWithBlockchainName = AnyWallet<Wallet.WalletMetadata, Wallet.AccountMetadata> & {
+  blockchainName: string;
+};
+
+const hasBlockchainName = (
+  wallet: AnyWallet<Wallet.WalletMetadata, Wallet.AccountMetadata>
+): wallet is AnyWalletWithBlockchainName => typeof (wallet as Record<string, unknown>)?.blockchainName === 'string';
+
+export const getWalletBlockchain = (wallet: AnyWallet<Wallet.WalletMetadata, Wallet.AccountMetadata>): Blockchain =>
+  hasBlockchainName(wallet) ? (wallet.blockchainName as Blockchain) : 'Cardano';
diff --git a/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/EnterWalletPassword.tsx b/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/EnterWalletPassword.tsx
new file mode 100644
index 000000000..e4d4344a2
--- /dev/null
+++ b/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/EnterWalletPassword.tsx
@@ -0,0 +1,48 @@
+import React, { ReactElement } from 'react';
+import { WalletSetupEnterPasswordStep } from '@lace/core';
+import { useCreateWallet } from '../context';
+import { useWalletManager } from '@hooks';
+import { WalletConflictError } from '@cardano-sdk/web-extension';
+import { useTranslation } from 'react-i18next';
+
+const SUPPORTED_PASSPHRASE_LENGTH = 24;
+
+export const EnterWalletPassword = (): ReactElement => {
+  const { back, walletToReuse, setMnemonic, next, showRecoveryPhraseError } = useCreateWallet();
+  const { getMnemonicForWallet } = useWalletManager();
+  const [errorMessage, setErrorMessage] = React.useState<string | undefined>();
+  const { t } = useTranslation();
+
+  const handleSubmit = async (password: string) => {
+    try {
+      const mnemonic = await getMnemonicForWallet(walletToReuse, Buffer.from(password));
+      if (mnemonic.length < SUPPORTED_PASSPHRASE_LENGTH) {
+        showRecoveryPhraseError();
+        return;
+      }
+
+      setMnemonic(mnemonic);
+      await next();
+    } catch (error) {
+      if (error instanceof Error && error.message.includes('Unsupported state or unable to authenticate data')) {
+        setErrorMessage(t('walletSetup.reuseRecoveryPhrase.invalidPassword'));
+        return;
+      }
+
+      if (error instanceof WalletConflictError) {
+        setErrorMessage(t('walletSetup.reuseRecoveryPhrase.walletAlreadyExists'));
+        return;
+      }
+      setErrorMessage(error.message);
+    }
+  };
+
+  return (
+    <WalletSetupEnterPasswordStep
+      walletName={walletToReuse?.metadata.name}
+      onNext={handleSubmit}
+      onBack={back}
+      errorMessage={errorMessage}
+    />
+  );
+};
diff --git a/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/RecoveryPhraseError.tsx b/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/RecoveryPhraseError.tsx
new file mode 100644
index 000000000..d6e81d495
--- /dev/null
+++ b/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/RecoveryPhraseError.tsx
@@ -0,0 +1,9 @@
+import React, { ReactElement } from 'react';
+import { WalletSetupMnemonicErrorStep } from '@lace/core';
+import { useCreateWallet } from '../context';
+
+export const RecoveryPhraseError = (): ReactElement => {
+  const { next, back } = useCreateWallet();
+
+  return <WalletSetupMnemonicErrorStep onNext={next} onBack={back} />;
+};
diff --git a/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/ReuseRecoveryPhrase.tsx b/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/ReuseRecoveryPhrase.tsx
new file mode 100644
index 000000000..060704268
--- /dev/null
+++ b/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/ReuseRecoveryPhrase.tsx
@@ -0,0 +1,16 @@
+import React, { ReactElement } from 'react';
+import { WalletSetupReuseMnemonicStep } from '@lace/core';
+import { useCreateWallet } from '../context';
+
+export const ReuseRecoveryPhrase = (): ReactElement => {
+  const { back, next, setWalletToReuse, nonSelectedBlockchainWallets } = useCreateWallet();
+
+  return (
+    <WalletSetupReuseMnemonicStep
+      wallets={nonSelectedBlockchainWallets}
+      onBack={back}
+      onNext={next}
+      setWalletToReuse={setWalletToReuse}
+    />
+  );
+};
diff --git a/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/types.ts b/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/types.ts
index 1dd970d18..f1320d109 100644
--- a/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/types.ts
+++ b/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/types.ts
@@ -2,6 +2,9 @@ export enum WalletCreateStep {
   // Legacy
   RecoveryPhraseInput = 'RecoveryPhraseInput',
   RecoveryPhraseWriteDown = 'RecoveryPhraseWriteDown',
+  ReuseRecoveryPhrase = 'ReuseRecoveryPhrase',
+  EnterWalletPassword = 'EnterWalletPassword',
+  RecoveryPhraseError = 'RecoveryPhraseError',
   // Paper wallet
   ChooseRecoveryMethod = 'ChooseRecoveryMethod',
   SecurePaperWallet = 'SecurePaperWallet',
diff --git a/package.json b/package.json
index 243a1e818..039a869e5 100644
--- a/package.json
+++ b/package.json
@@ -113,7 +113,7 @@
     "ws@^8.8.0": "^8.17.1"
   },
   "dependencies": {
-    "@input-output-hk/lace-ui-toolkit": "3.5.0",
+    "@input-output-hk/lace-ui-toolkit": "3.9.2",
     "axios": "^1.9.0",
     "normalize.css": "^8.0.1",
     "openpgp": "^6.1.1",
diff --git a/packages/core/package.json b/packages/core/package.json
index 9397034b2..5af7ee508 100644
--- a/packages/core/package.json
+++ b/packages/core/package.json
@@ -45,7 +45,7 @@
     "@cardano-sdk/crypto": "0.4.4",
     "@cardano-sdk/wallet": "0.53.22",
     "@cardano-sdk/web-extension": "0.39.33",
-    "@input-output-hk/lace-ui-toolkit": "3.8.0",
+    "@input-output-hk/lace-ui-toolkit": "3.9.2",
     "@lace/cardano": "0.1.0",
     "@lace/common": "0.1.0",
     "@lace/translation": "0.1.0",
diff --git a/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupEnterPasswordStep.tsx b/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupEnterPasswordStep.tsx
new file mode 100644
index 000000000..5e32a58d4
--- /dev/null
+++ b/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupEnterPasswordStep.tsx
@@ -0,0 +1,63 @@
+import React, { ReactElement } from 'react';
+import { WalletSetupStepLayoutRevamp } from './WalletSetupStepLayoutRevamp';
+import { WalletTimelineSteps } from '@ui/components/WalletSetup';
+import { Box, PasswordBox, Text } from '@input-output-hk/lace-ui-toolkit';
+import { useSecrets } from '@ui/hooks';
+import { Trans, useTranslation } from 'react-i18next';
+
+type WalletSetupConfirmPasswordStepProps = {
+  walletName: string;
+  errorMessage?: string;
+  onBack: () => void;
+  onNext: (password: string) => void;
+};
+
+export const WalletSetupEnterPasswordStep = ({
+  walletName,
+  errorMessage,
+  onNext,
+  onBack
+}: WalletSetupConfirmPasswordStepProps): ReactElement => {
+  const { password, setPassword, clearSecrets } = useSecrets();
+  const { t } = useTranslation();
+
+  const renderDescription = () => (
+    <Text.Body.Normal>
+      <Trans
+        i18nKey="core.walletSetupReuseRecoveryPhrase.confirmPasswordDescription"
+        values={{ walletName }}
+        components={{ b: <b /> }}
+      />
+    </Text.Body.Normal>
+  );
+
+  const handleOnNext = () => {
+    if (!password.value) return;
+    onNext(password.value);
+    clearSecrets();
+  };
+
+  return (
+    <WalletSetupStepLayoutRevamp
+      title={t('core.walletSetupReuseRecoveryPhrase.confirmPassword')}
+      description={renderDescription()}
+      onBack={onBack}
+      onNext={handleOnNext}
+      nextLabel={t('core.walletSetupReuseRecoveryPhrase.confirm')}
+      currentTimelineStep={WalletTimelineSteps.RECOVERY_DETAILS}
+      isNextEnabled={!!password.value}
+    >
+      <Box mt="$96" mb="$16">
+        <Text.Body.Normal>{t('core.walletSetupReuseRecoveryPhrase.password')}</Text.Body.Normal>
+      </Box>
+      <PasswordBox
+        label={t('core.walletSetupReuseRecoveryPhrase.insertPassword')}
+        onSubmit={() => handleOnNext()}
+        onChange={(target) => setPassword(target)}
+        data-testid="wallet-setup-enter-password-input"
+        errorMessage={errorMessage}
+        autoFocus
+      />
+    </WalletSetupStepLayoutRevamp>
+  );
+};
diff --git a/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupMnemonicErrorStep.tsx b/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupMnemonicErrorStep.tsx
new file mode 100644
index 000000000..11cffbe98
--- /dev/null
+++ b/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupMnemonicErrorStep.tsx
@@ -0,0 +1,36 @@
+import React, { ReactElement } from 'react';
+import { WalletTimelineSteps } from '@ui/components/WalletSetup';
+import { WalletSetupStepLayoutRevamp } from './WalletSetupStepLayoutRevamp';
+import { ListEmptyState } from '@ui/components/ListEmptyState';
+import { Flex, Text } from '@input-output-hk/lace-ui-toolkit';
+import { useTranslation } from 'react-i18next';
+
+interface WalletSetupMnemonicErrorStepProps {
+  onBack: () => void;
+  onNext: () => void;
+}
+
+export const WalletSetupMnemonicErrorStep = ({ onBack, onNext }: WalletSetupMnemonicErrorStepProps): ReactElement => {
+  const { t } = useTranslation();
+
+  const renderDescription = () => (
+    <Flex flexDirection="column" gap="$8" justifyContent="center" alignItems="center">
+      <Text.Body.Large weight="$bold">{t('core.walletSetupReuseRecoveryPhrase.error')}</Text.Body.Large>
+      <Text.Body.Normal>{t('core.walletSetupReuseRecoveryPhrase.supportedRecoveryPhrase')}</Text.Body.Normal>
+      <Text.Body.Normal>{t('core.walletSetupReuseRecoveryPhrase.createNewRecoveryPhrase')}</Text.Body.Normal>
+    </Flex>
+  );
+
+  return (
+    <WalletSetupStepLayoutRevamp
+      title=""
+      onBack={onBack}
+      onNext={onNext}
+      nextLabel={t('core.walletSetupReuseRecoveryPhrase.createNewOne')}
+      backLabel={t('core.walletSetupReuseRecoveryPhrase.selectAnotherWallet')}
+      currentTimelineStep={WalletTimelineSteps.RECOVERY_DETAILS}
+    >
+      <ListEmptyState message={renderDescription()} icon="sad-face" />
+    </WalletSetupStepLayoutRevamp>
+  );
+};
diff --git a/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupReuseMnemonicStep.tsx b/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupReuseMnemonicStep.tsx
new file mode 100644
index 000000000..ff8771d6c
--- /dev/null
+++ b/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupReuseMnemonicStep.tsx
@@ -0,0 +1,70 @@
+import React, { ReactElement, useEffect, useState } from 'react';
+import { WalletSetupStepLayoutRevamp } from './WalletSetupStepLayoutRevamp';
+import { WalletTimelineSteps } from '@ui/components/WalletSetup';
+import { Box, Flex, Select, Text } from '@input-output-hk/lace-ui-toolkit';
+import { AnyWallet } from '@cardano-sdk/web-extension';
+import { Wallet } from '@lace/cardano';
+import { useTranslation } from 'react-i18next';
+
+type WalletSetupReuseMnemonicStepProps = {
+  wallets: AnyWallet<Wallet.WalletMetadata, Wallet.AccountMetadata>[];
+  setWalletToReuse: React.Dispatch<
+    React.SetStateAction<AnyWallet<Wallet.WalletMetadata, Wallet.AccountMetadata> | undefined>
+  >;
+  onBack: () => void;
+  onNext: () => void;
+};
+
+export const WalletSetupReuseMnemonicStep = ({
+  wallets = [],
+  setWalletToReuse,
+  onNext,
+  onBack
+}: WalletSetupReuseMnemonicStepProps): ReactElement => {
+  const [selectedWallet, setSelectedWallet] = useState<string | undefined>(wallets[0]?.walletId);
+  const { t } = useTranslation();
+
+  useEffect(() => {
+    setSelectedWallet(wallets[0]?.walletId);
+    setWalletToReuse(wallets[0]);
+  }, [setWalletToReuse, wallets]);
+
+  const handleOnChange = (value: string) => {
+    setSelectedWallet(value);
+    const wallet = wallets.find((w) => w.walletId === value);
+    setWalletToReuse(wallet);
+  };
+
+  return (
+    <WalletSetupStepLayoutRevamp
+      title={t('core.walletSetupReuseRecoveryPhrase.title')}
+      description={t('core.walletSetupReuseRecoveryPhrase.description')}
+      onBack={onBack}
+      onNext={onNext}
+      nextLabel={t('core.walletSetupReuseRecoveryPhrase.useSameRecoveryPhrase')}
+      backLabel={t('core.walletSetupReuseRecoveryPhrase.createNewOne')}
+      isNextEnabled={!!selectedWallet}
+      currentTimelineStep={WalletTimelineSteps.RECOVERY_DETAILS}
+    >
+      <Flex flexDirection="column" mt="$52" gap="$16" w="$fill">
+        <Text.Body.Normal>{t('core.walletSetupReuseRecoveryPhrase.selectWallet')}</Text.Body.Normal>
+        <Box w="$fill">
+          <Select.Root
+            variant="outline"
+            placeholder="Wallets"
+            value={selectedWallet}
+            triggerTestId="wallet-setup-select-input"
+            onChange={handleOnChange}
+            showArrow
+            zIndex={1000}
+            fullWidth
+          >
+            {wallets.map(({ walletId, metadata }) => (
+              <Select.Item key={walletId} value={walletId} title={metadata.name} />
+            ))}
+          </Select.Root>
+        </Box>
+      </Flex>
+    </WalletSetupStepLayoutRevamp>
+  );
+};
diff --git a/packages/core/src/ui/components/WalletSetupRevamp/index.ts b/packages/core/src/ui/components/WalletSetupRevamp/index.ts
index e08a5716f..c7bde9b1e 100644
--- a/packages/core/src/ui/components/WalletSetupRevamp/index.ts
+++ b/packages/core/src/ui/components/WalletSetupRevamp/index.ts
@@ -11,3 +11,6 @@ export { WalletSetupNamePasswordStepRevamp } from './WalletSetupNamePasswordStep
 export { WalletSetupConnectHardwareWalletStepRevamp } from './WalletSetupConnectHardwareWalletStepRevamp';
 export { WalletSetupHWCreationStep } from './WalletSetupHWCreationStep';
 export { WalletSetupSelectBlockchain } from './WalletSetupSelectBlockchain';
+export { WalletSetupReuseMnemonicStep } from './WalletSetupReuseMnemonicStep';
+export { WalletSetupEnterPasswordStep } from './WalletSetupEnterPasswordStep';
+export { WalletSetupMnemonicErrorStep } from './WalletSetupMnemonicErrorStep';
diff --git a/packages/translation/src/lib/translations/browser-extension-wallet/en.json b/packages/translation/src/lib/translations/browser-extension-wallet/en.json
index b00c1ec83..b955a82d9 100644
--- a/packages/translation/src/lib/translations/browser-extension-wallet/en.json
+++ b/packages/translation/src/lib/translations/browser-extension-wallet/en.json
@@ -907,6 +907,8 @@
   "walletSetup.setupOptions.restoreWallet": "Restore wallet",
   "walletSetup.walletName.pleaseNameYourWallet": "Please name your wallet",
   "walletSetup.walletName.walletNameDescription": "Lorem ipsum dolor sit amet",
+  "walletSetup.reuseRecoveryPhrase.walletAlreadyExists": "This wallet already exists",
+  "walletSetup.reuseRecoveryPhrase.invalidPassword": "Invalid password",
   "midnightEventBanner.title": "Discover the Midnight Token Distribution",
   "midnightEventBanner.description": "The free, multi-phase distribution of NIGHT tokens aimed at empowering a broad, diverse community to build the future of the Midnight network",
   "midnightEventBanner.learnMore": "Learn more",
diff --git a/packages/translation/src/lib/translations/browser-extension-wallet/es.json b/packages/translation/src/lib/translations/browser-extension-wallet/es.json
index cbc05c59d..fd2fd2c05 100644
--- a/packages/translation/src/lib/translations/browser-extension-wallet/es.json
+++ b/packages/translation/src/lib/translations/browser-extension-wallet/es.json
@@ -889,6 +889,8 @@
   "walletSetup.setupOptions.restoreWallet": "Recuperar la billetera",
   "walletSetup.walletName.pleaseNameYourWallet": "Dé nombre a su billetera, por favor",
   "walletSetup.walletName.walletNameDescription": "Lorem ipsum dolor sit amet",
+  "walletSetup.reuseRecoveryPhrase.walletAlreadyExists": "Esta billetera ya existe",
+  "walletSetup.reuseRecoveryPhrase.invalidPassword": "Contraseña inválida",
   "midnightEventBanner.title": "Descubra la distribución de tokens de Midnight",
   "midnightEventBanner.description": "La distribución gratuita en múltiples fases de tokens NIGHT, con objetivo de empoderar a una comunidad amplia y diversa a construir el futuro de la red Midnight",
   "midnightEventBanner.learnMore": "Aprender más",
diff --git a/packages/translation/src/lib/translations/core/en.json b/packages/translation/src/lib/translations/core/en.json
index 52691ea9a..726792ae3 100644
--- a/packages/translation/src/lib/translations/core/en.json
+++ b/packages/translation/src/lib/translations/core/en.json
@@ -684,6 +684,20 @@
   "core.WalletSetupSelectBlockchain.bitcoin.description": "Allows you to manage your Bitcoin (BTC) and other assets on the Bitcoin blockchain",
   "core.WalletSetupSelectBlockchain.defaultBadge": "Default",
   "core.WalletSetupSelectBlockchain.newBadge": "New",
+  "core.walletSetupReuseRecoveryPhrase.title": "Reuse your Recovery Phrase?",
+  "core.walletSetupReuseRecoveryPhrase.description": "Do you wish to use the same passphrase as the wallet below, or wish to create a new one?",
+  "core.walletSetupReuseRecoveryPhrase.useSameRecoveryPhrase": "Use same recovery phrase",
+  "core.walletSetupReuseRecoveryPhrase.createNewOne": "Create a new one",
+  "core.walletSetupReuseRecoveryPhrase.selectWallet": "Select a wallet",
+  "core.walletSetupReuseRecoveryPhrase.confirmPassword": "Confirm your password",
+  "core.walletSetupReuseRecoveryPhrase.insertPassword": "Insert your password",
+  "core.walletSetupReuseRecoveryPhrase.confirmPasswordDescription": "Confirm typing your password below for \"<b>{{walletName}}</b>\"",
+  "core.walletSetupReuseRecoveryPhrase.password": "Password",
+  "core.walletSetupReuseRecoveryPhrase.confirm": "Confirm",
+  "core.walletSetupReuseRecoveryPhrase.error": "An error occurred",
+  "core.walletSetupReuseRecoveryPhrase.supportedRecoveryPhrase": "Only 24-word recovery phrases are supported.",
+  "core.walletSetupReuseRecoveryPhrase.createNewRecoveryPhrase": "Please create a new recovery phrase or select a different wallet",
+  "core.walletSetupReuseRecoveryPhrase.selectAnotherWallet": "Select another wallet",
   "core.nftDetail.directory": "Folder",
   "core.walletSetup.selectBlockchain": "Select a blockchain",
   "core.walletSetup.recoveryMethod": "Recovery method",
diff --git a/packages/translation/src/lib/translations/core/es.json b/packages/translation/src/lib/translations/core/es.json
index 7a0a66af3..bdd77ef62 100644
--- a/packages/translation/src/lib/translations/core/es.json
+++ b/packages/translation/src/lib/translations/core/es.json
@@ -684,6 +684,20 @@
   "core.WalletSetupSelectBlockchain.bitcoin.description": "Te permite gestionar Bitcoin (BTC) y otros activos en la cadena de bloques de Bitcoin.",
   "core.WalletSetupSelectBlockchain.defaultBadge": "Predeterminado",
   "core.WalletSetupSelectBlockchain.newBadge": "Nuevo",
+  "core.walletSetupReuseRecoveryPhrase.title": "¿Reutilizar su frase de recuperación?",
+  "core.walletSetupReuseRecoveryPhrase.description": "¿Desea usar la misma frase de recuperación que la billetera a continuación, o desea crear una nueva?",
+  "core.walletSetupReuseRecoveryPhrase.useSameRecoveryPhrase": "Usar la misma frase de recuperación",
+  "core.walletSetupReuseRecoveryPhrase.createNewOne": "Crear una nueva",
+  "core.walletSetupReuseRecoveryPhrase.selectWallet": "Seleccionar una billetera",
+  "core.walletSetupReuseRecoveryPhrase.confirmPassword": "Confirme su contraseña",
+  "core.walletSetupReuseRecoveryPhrase.insertPassword": "Introduzca su contraseña",
+  "core.walletSetupReuseRecoveryPhrase.confirmPasswordDescription": "Confirma escribiendo tu contraseña a continuación para \"<b>{{walletName}}</b>\"",
+  "core.walletSetupReuseRecoveryPhrase.password": "Contraseña",
+  "core.walletSetupReuseRecoveryPhrase.confirm": "Confirmar",
+  "core.walletSetupReuseRecoveryPhrase.error": "Ha ocurrido un error",
+  "core.walletSetupReuseRecoveryPhrase.supportedRecoveryPhrase": "Solo se admiten frases de recuperación de 24 palabras.",
+  "core.walletSetupReuseRecoveryPhrase.createNewRecoveryPhrase": "Por favor, cree una nueva frase de recuperación o seleccione una billetera diferente",
+  "core.walletSetupReuseRecoveryPhrase.selectAnotherWallet": "Seleccionar otra billetera",
   "core.nftDetail.directory": "Carpeta",
   "core.walletSetup.selectBlockchain": "Selecciona una cadena de bloques",
   "core.walletSetup.recoveryMethod": "Método de recuperación",
diff --git a/yarn.lock b/yarn.lock
index 55ccacf94..ce6265d08 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -11500,9 +11500,9 @@ __metadata:
   languageName: node
   linkType: hard
 
-"@input-output-hk/lace-ui-toolkit@npm:3.8.0":
-  version: 3.8.0
-  resolution: "@input-output-hk/lace-ui-toolkit@npm:3.8.0::__archiveUrl=https%3A%2F%2Fnpm.pkg.github.com%2Fdownload%2F%40input-output-hk%2Flace-ui-toolkit%2F3.8.0%2F3cfebb953d437ed4b48da5dcce2f7e3f28495a24"
+"@input-output-hk/lace-ui-toolkit@npm:3.9.2":
+  version: 3.9.2
+  resolution: "@input-output-hk/lace-ui-toolkit@npm:3.9.2::__archiveUrl=https%3A%2F%2Fnpm.pkg.github.com%2Fdownload%2F%40input-output-hk%2Flace-ui-toolkit%2F3.9.2%2Fb1d85b371740660b8144db829222cd162065e8b7"
   dependencies:
     "@radix-ui/react-alert-dialog": ^1.0.4
     "@radix-ui/react-avatar": ^1.0.2
@@ -11534,7 +11534,7 @@ __metadata:
   peerDependencies:
     react: ">=17.0.2"
     react-dom: ">=17.0.2"
-  checksum: 5c2c7696b218845a1ffeda051ea9fdd5da5de0736da628071d81e1e5394f236707f8d495b12992fcfc76d9e3da7e17df217c2fac048a0faaccc5c599ffd6f5aa
+  checksum: 97923d08d9b2ccd9023c5af1364c2907c1b8961c4afbaa16675c6d32a29260335d25bd2e5b6174b776c3ad461af1636cc9f6b3439c1bbf6adf19538b8c8a8f51
   languageName: node
   linkType: hard
 
@@ -12602,7 +12602,7 @@ __metadata:
     "@cardano-sdk/crypto": 0.4.4
     "@cardano-sdk/wallet": 0.53.22
     "@cardano-sdk/web-extension": 0.39.33
-    "@input-output-hk/lace-ui-toolkit": 3.8.0
+    "@input-output-hk/lace-ui-toolkit": 3.9.2
     "@lace/cardano": 0.1.0
     "@lace/common": 0.1.0
     "@lace/translation": 0.1.0
@@ -42444,7 +42444,7 @@ __metadata:
     "@babel/runtime": ^7.26.10
     "@commitlint/cli": ^17.0.3
     "@commitlint/config-conventional": ^17.0.3
-    "@input-output-hk/lace-ui-toolkit": 3.5.0
+    "@input-output-hk/lace-ui-toolkit": 3.9.2
     "@rollup/plugin-commonjs": 20.0.0
     "@rollup/plugin-image": 2.1.1
     "@rollup/plugin-json": ^6.0.0