diff --git a/src/main/java/com/sparrowwallet/sparrow/terminal/MasterActionListBox.java b/src/main/java/com/sparrowwallet/sparrow/terminal/MasterActionListBox.java
index ca967195..a442971b 100644
--- a/src/main/java/com/sparrowwallet/sparrow/terminal/MasterActionListBox.java
+++ b/src/main/java/com/sparrowwallet/sparrow/terminal/MasterActionListBox.java
@@ -5,8 +5,13 @@ import com.googlecode.lanterna.gui2.ActionListBox;
 import com.googlecode.lanterna.gui2.dialogs.ActionListDialogBuilder;
 import com.googlecode.lanterna.gui2.dialogs.FileDialogBuilder;
 import com.googlecode.lanterna.gui2.dialogs.TextInputDialogBuilder;
+import com.sparrowwallet.drongo.SecureString;
+import com.sparrowwallet.drongo.crypto.InvalidPasswordException;
 import com.sparrowwallet.drongo.wallet.Wallet;
 import com.sparrowwallet.sparrow.AppServices;
+import com.sparrowwallet.sparrow.EventManager;
+import com.sparrowwallet.sparrow.event.StorageEvent;
+import com.sparrowwallet.sparrow.event.TimedEvent;
 import com.sparrowwallet.sparrow.io.Config;
 import com.sparrowwallet.sparrow.io.Storage;
 import com.sparrowwallet.sparrow.terminal.preferences.GeneralDialog;
@@ -15,12 +20,19 @@ import com.sparrowwallet.sparrow.terminal.preferences.ServerTypeDialog;
 import com.sparrowwallet.sparrow.terminal.wallet.Bip39Dialog;
 import com.sparrowwallet.sparrow.terminal.wallet.LoadWallet;
 import com.sparrowwallet.sparrow.terminal.wallet.WatchOnlyDialog;
+import javafx.application.Platform;
+import org.slf4j.Logger;
+import org.slf4j.LoggerFactory;
 
 import java.io.File;
 import java.util.Map;
 import java.util.Optional;
 
+import static com.sparrowwallet.sparrow.AppServices.showErrorDialog;
+
 public class MasterActionListBox extends ActionListBox {
+    private static final Logger log = LoggerFactory.getLogger(MasterActionListBox.class);
+
     public static final int MAX_RECENT_WALLETS = 6;
 
     public MasterActionListBox(SparrowTerminal sparrowTerminal) {
@@ -42,9 +54,9 @@ public class MasterActionListBox extends ActionListBox {
                             .filter(entry -> entry.getValue().getWalletFile().equals(recentWalletFile)).map(Map.Entry::getKey)
                             .map(wallet -> wallet.isMasterWallet() ? wallet : wallet.getMasterWallet()).findFirst();
                     if(optWallet.isPresent()) {
-                        builder.addAction(storage.getWalletName(null) + "*", () -> {
-                            SparrowTerminal.get().getGuiThread().invokeLater(() -> LoadWallet.getOpeningDialog(storage, optWallet.get()).showDialog(SparrowTerminal.get().getGui()));
-                        });
+                        Wallet wallet = optWallet.get();
+                        Storage existingStorage = AppServices.get().getOpenWallets().get(wallet);
+                        builder.addAction(storage.getWalletName(null) + "*", () -> openLoadedWallet(existingStorage, optWallet.get()));
                     } else {
                         builder.addAction(storage.getWalletName(null), new LoadWallet(storage));
                     }
@@ -82,6 +94,41 @@ public class MasterActionListBox extends ActionListBox {
         addItem("Quit", () -> sparrowTerminal.getGui().getMainWindow().close());
     }
 
+    private static void openLoadedWallet(Storage storage, Wallet wallet) {
+        if(SparrowTerminal.get().isLocked(storage)) {
+            String walletId = storage.getWalletId(wallet);
+
+            TextInputDialogBuilder builder = new TextInputDialogBuilder().setTitle("Wallet Password");
+            builder.setDescription("Enter the wallet password:");
+            builder.setPasswordInput(true);
+
+            String password = builder.build().showDialog(SparrowTerminal.get().getGui());
+            if(password != null) {
+                Platform.runLater(() -> {
+                    Storage.KeyDerivationService keyDerivationService = new Storage.KeyDerivationService(storage, new SecureString(password), true);
+                    keyDerivationService.setOnSucceeded(workerStateEvent -> {
+                        EventManager.get().post(new StorageEvent(walletId, TimedEvent.Action.END, "Done"));
+                        keyDerivationService.getValue().clear();
+                        SparrowTerminal.get().unlockWallet(storage);
+                        SparrowTerminal.get().getGuiThread().invokeLater(() -> LoadWallet.getOpeningDialog(storage, wallet).showDialog(SparrowTerminal.get().getGui()));
+                    });
+                    keyDerivationService.setOnFailed(workerStateEvent -> {
+                        EventManager.get().post(new StorageEvent(walletId, TimedEvent.Action.END, "Failed"));
+                        if(keyDerivationService.getException() instanceof InvalidPasswordException) {
+                            showErrorDialog("Invalid Password", "The wallet password was invalid.");
+                        } else {
+                            log.error("Error deriving wallet key", keyDerivationService.getException());
+                        }
+                    });
+                    EventManager.get().post(new StorageEvent(walletId, TimedEvent.Action.START, "Decrypting wallet..."));
+                    keyDerivationService.start();
+                });
+            }
+        } else {
+            SparrowTerminal.get().getGuiThread().invokeLater(() -> LoadWallet.getOpeningDialog(storage, wallet).showDialog(SparrowTerminal.get().getGui()));
+        }
+    }
+
     private static void openWallet() {
         FileDialogBuilder openBuilder = new FileDialogBuilder().setTitle("Open Wallet");
         openBuilder.setShowHiddenDirectories(true);
diff --git a/src/main/java/com/sparrowwallet/sparrow/terminal/SparrowTerminal.java b/src/main/java/com/sparrowwallet/sparrow/terminal/SparrowTerminal.java
index a7fc4739..f01a3eef 100644
--- a/src/main/java/com/sparrowwallet/sparrow/terminal/SparrowTerminal.java
+++ b/src/main/java/com/sparrowwallet/sparrow/terminal/SparrowTerminal.java
@@ -40,6 +40,7 @@ public class SparrowTerminal extends Application {
     private SparrowTextGui gui;
 
     private final Map<String, WalletData> walletData = new HashMap<>();
+    private final Set<File> lockedWallets = new HashSet<>();
 
     private static final javafx.stage.Window DEFAULT_WINDOW = new Window() { };
 
@@ -147,4 +148,16 @@ public class SparrowTerminal extends Application {
 
         EventManager.get().post(new WalletOpenedEvent(storage, wallet));
     }
+
+    public boolean isLocked(Storage storage) {
+        return lockedWallets.contains(storage.getWalletFile());
+    }
+
+    public void lockWallet(Storage storage) {
+        lockedWallets.add(storage.getWalletFile());
+    }
+
+    public void unlockWallet(Storage storage) {
+        lockedWallets.remove(storage.getWalletFile());
+    }
 }
diff --git a/src/main/java/com/sparrowwallet/sparrow/terminal/wallet/WalletActionsDialog.java b/src/main/java/com/sparrowwallet/sparrow/terminal/wallet/WalletActionsDialog.java
index 615940e7..49acbc8a 100644
--- a/src/main/java/com/sparrowwallet/sparrow/terminal/wallet/WalletActionsDialog.java
+++ b/src/main/java/com/sparrowwallet/sparrow/terminal/wallet/WalletActionsDialog.java
@@ -48,6 +48,12 @@ public class WalletActionsDialog extends DialogWindow {
             SettingsDialog settingsDialog = getWalletData().getSettingsDialog();
             settingsDialog.showDialog(SparrowTerminal.get().getGui());
         });
+        if(getWalletData().getWalletForm().getWallet().isEncrypted()) {
+            actions.addItem("Lock", () -> {
+                close();
+                SparrowTerminal.get().lockWallet(getWalletData().getWalletForm().getStorage());
+            });
+        }
 
         Panel mainPanel = new Panel();
         mainPanel.setLayoutManager(new GridLayout(1).setLeftMarginSize(1).setRightMarginSize(1));