diff --git a/v1/apps/browser-extension-wallet/src/components/MainMenu/DropdownMenuOverlay/DropdownMenuOverlay.tsx b/v1/apps/browser-extension-wallet/src/components/MainMenu/DropdownMenuOverlay/DropdownMenuOverlay.tsx
index 43292f8246..d13a77ab10 100644
--- a/v1/apps/browser-extension-wallet/src/components/MainMenu/DropdownMenuOverlay/DropdownMenuOverlay.tsx
+++ b/v1/apps/browser-extension-wallet/src/components/MainMenu/DropdownMenuOverlay/DropdownMenuOverlay.tsx
@@ -34,9 +34,8 @@ import { getBackgroundStorage, setBackgroundStorage } from '@lib/scripts/backgro
 import { useBackgroundServiceAPIContext } from '@providers';
 import { WarningModal } from '@src/views/browser-view/components';
 import { useTranslation } from 'react-i18next';
-import { useCurrentWallet, useWalletManager, useLMP } from '@hooks';
+import { useCurrentWallet, useWalletManager } from '@hooks';
 import { useCurrentBlockchain } from '@src/multichain';
-import { AddNewMidnightWalletLink } from './components/AddNewMidnightWalletLink';
 
 interface Props extends MenuProps {
   isPopup?: boolean;
@@ -61,10 +60,8 @@ export const DropdownMenuOverlay: VFC<Props> = ({
   const { walletRepository } = useWalletManager();
   const currentWallet = useCurrentWallet();
   const wallets = useObservable(walletRepository.wallets$);
-  const { midnightWallets } = useLMP();
 
   const sharedWalletsEnabled = posthog?.isFeatureFlagEnabled('shared-wallets');
-  const midnightWalletsEnabled = posthog?.isFeatureFlagEnabled('midnight-wallets');
   const [currentSection, setCurrentSection] = useState<Sections>(Sections.Main);
   const { environmentName, setManageAccountsWallet, walletType, isSharedWallet } = useWalletStore();
   const { blockchain } = useCurrentBlockchain();
@@ -140,7 +137,6 @@ export const DropdownMenuOverlay: VFC<Props> = ({
     !isBitcoinWallet &&
     wallets?.some((w) => w.type === WalletType.Script && w.ownSigners[0].walletId === currentWallet?.walletId);
   const showAddSharedWalletLink = sharedWalletsEnabled && !isSharedWallet && !hasLinkedSharedWallet;
-  const showAddMidnightWalletLink = midnightWalletsEnabled && midnightWallets && midnightWallets.length === 0;
 
   const handleNamiModeChange = async (activated: boolean) => {
     const mode = activated ? 'nami' : 'lace';
@@ -195,7 +191,6 @@ export const DropdownMenuOverlay: VFC<Props> = ({
               <AddNewWalletLink isPopup={isPopup} sendAnalyticsEvent={sendAnalyticsEvent} />
             )}
             {!isBitcoinWallet && showAddSharedWalletLink && <AddSharedWalletLink isPopup={isPopup} />}
-            {showAddMidnightWalletLink && <AddNewMidnightWalletLink />}
             {!isBitcoinWallet && <AddressBookLink />}
             <SettingsLink />
             <Separator />
diff --git a/v1/apps/browser-extension-wallet/src/components/MainMenu/DropdownMenuOverlay/components/AddNewMidnightWalletLink.tsx b/v1/apps/browser-extension-wallet/src/components/MainMenu/DropdownMenuOverlay/components/AddNewMidnightWalletLink.tsx
deleted file mode 100644
index e427e69d97..0000000000
--- a/v1/apps/browser-extension-wallet/src/components/MainMenu/DropdownMenuOverlay/components/AddNewMidnightWalletLink.tsx
+++ /dev/null
@@ -1,26 +0,0 @@
-import React, { useCallback } from 'react';
-import { Menu } from 'antd';
-import styles from '../DropdownMenuOverlay.module.scss';
-import { PostHogAction } from '@lace/common';
-import { useTranslation } from 'react-i18next';
-import { useLMP } from '@hooks';
-
-interface Props {
-  sendAnalyticsEvent?: (event: PostHogAction) => void;
-}
-
-// eslint-disable-next-line @typescript-eslint/no-unused-vars
-export const AddNewMidnightWalletLink = (_: Props): React.ReactElement => {
-  const { t } = useTranslation();
-  const { switchToLMP } = useLMP();
-  const onClick = useCallback(() => {
-    switchToLMP();
-    // TODO: send analytics event
-  }, [switchToLMP]);
-
-  return (
-    <Menu.Item data-testid="header-menu-add-midnight-wallet" className={styles.menuItem} onClick={onClick}>
-      {t('browserView.sideMenu.links.addMidnightWallet')}
-    </Menu.Item>
-  );
-};
diff --git a/v1/apps/browser-extension-wallet/src/components/MainMenu/DropdownMenuOverlay/components/AddNewWalletLink.tsx b/v1/apps/browser-extension-wallet/src/components/MainMenu/DropdownMenuOverlay/components/AddNewWalletLink.tsx
index 89415dcbe3..bb4a41cc98 100644
--- a/v1/apps/browser-extension-wallet/src/components/MainMenu/DropdownMenuOverlay/components/AddNewWalletLink.tsx
+++ b/v1/apps/browser-extension-wallet/src/components/MainMenu/DropdownMenuOverlay/components/AddNewWalletLink.tsx
@@ -8,6 +8,7 @@ import { useBackgroundServiceAPIContext } from '@providers';
 import { BrowserViewSections } from '@lib/scripts/types';
 import { useBackgroundPage } from '@providers/BackgroundPageProvider';
 import { PostHogAction } from '@lace/common';
+import { cameFromLmpStorage } from '@src/utils/lmp';
 
 interface Props {
   isPopup?: boolean;
@@ -22,6 +23,7 @@ export const AddNewWalletLink = ({ isPopup, sendAnalyticsEvent }: Props): React.
 
   const openNewWallet = () => {
     sendAnalyticsEvent(PostHogAction.UserWalletProfileAddNewWalletClick);
+    cameFromLmpStorage.clear();
     if (isPopup) {
       backgroundServices.handleOpenBrowser({ section: BrowserViewSections.NEW_WALLET });
     } else {
diff --git a/v1/apps/browser-extension-wallet/src/components/MainMenu/DropdownMenuOverlay/components/UserInfo.tsx b/v1/apps/browser-extension-wallet/src/components/MainMenu/DropdownMenuOverlay/components/UserInfo.tsx
index cc6c72514d..bd12db9ec4 100644
--- a/v1/apps/browser-extension-wallet/src/components/MainMenu/DropdownMenuOverlay/components/UserInfo.tsx
+++ b/v1/apps/browser-extension-wallet/src/components/MainMenu/DropdownMenuOverlay/components/UserInfo.tsx
@@ -19,7 +19,6 @@ import { Separator } from './Separator';
 import { getUiWalletType } from '@src/utils/get-ui-wallet-type';
 import { isScriptWallet } from '@lace/core';
 import { useCurrentBlockchain } from '@src/multichain';
-import { LmpBundleWallet } from '@src/utils/lmp';
 
 const ADRESS_FIRST_PART_LENGTH = 10;
 const ADRESS_LAST_PART_LENGTH = 5;
@@ -196,14 +195,14 @@ export const UserInfo = ({
   );
 
   const renderLmpWallet = useCallback(
-    ({ walletId, walletName }: LmpBundleWallet, isLast: boolean) => (
+    ({ walletId, walletName }: Wallet.LmpBundleWallet, isLast: boolean) => (
       <div key={walletId}>
         <ProfileDropdown.WalletOption
           style={{ textAlign: 'left' }}
           key={walletId}
           title={shortenWalletName(walletName, WALLET_OPTION_NAME_MAX_LENGTH)}
           id={`wallet-option-${walletId}`}
-          onClick={switchToLMP}
+          onClick={() => switchToLMP()}
           type={'hot'}
           profile={{
             customProfileComponent: (
diff --git a/v1/apps/browser-extension-wallet/src/hooks/useLMP.ts b/v1/apps/browser-extension-wallet/src/hooks/useLMP.ts
index e1c6b36f77..bc57f533e6 100644
--- a/v1/apps/browser-extension-wallet/src/hooks/useLMP.ts
+++ b/v1/apps/browser-extension-wallet/src/hooks/useLMP.ts
@@ -1,6 +1,13 @@
 import { consumeRemoteApi } from '@cardano-sdk/web-extension';
 import { logger, useObservable } from '@lace/common';
-import { APP_MODE, bundleAppApiProps, lmpApiBaseChannel, LmpBundleWallet, lmpModeStorage } from '@src/utils/lmp';
+import { Wallet } from '@lace/cardano';
+import {
+  APP_MODE,
+  bundleAppApiProps,
+  lmpApiBaseChannel,
+  lmpModeStorage,
+  onboardingParamsStorage
+} from '@src/utils/lmp';
 import { runtime } from 'webextension-polyfill';
 
 const lmpApi = consumeRemoteApi(
@@ -11,18 +18,33 @@ const lmpApi = consumeRemoteApi(
   { logger, runtime }
 );
 
-const switchToLMP = (): void =>
+const navigateToLMP = (): void => {
+  if (window.location.pathname.startsWith('/popup.html')) {
+    chrome.tabs.create({ url: '/tab.html' });
+  } else {
+    window.location.href = '/tab.html';
+  }
+};
+
+const switchToLMP = async (): Promise<void> => {
+  await lmpModeStorage.set(APP_MODE.LMP);
+  navigateToLMP();
+};
+
+const startMidnightCreate = (): void =>
+  void (async () => {
+    await onboardingParamsStorage.set({ mode: 'create' });
+    await switchToLMP();
+  })();
+
+const startMidnightRestore = (): void =>
   void (async () => {
-    await lmpModeStorage.set(APP_MODE.LMP);
-    if (window.location.pathname.startsWith('/popup.html')) {
-      chrome.tabs.create({ url: '/tab.html' });
-    } else {
-      window.location.href = '/tab.html';
-    }
+    await onboardingParamsStorage.set({ mode: 'restore' });
+    await switchToLMP();
   })();
 
 // eslint-disable-next-line @typescript-eslint/explicit-module-boundary-types
 export const useLMP = () => {
-  const midnightWallets = useObservable<LmpBundleWallet[] | undefined>(lmpApi.wallets$);
-  return { midnightWallets, switchToLMP };
+  const midnightWallets = useObservable<Wallet.LmpBundleWallet[] | undefined>(lmpApi.wallets$);
+  return { midnightWallets, switchToLMP, startMidnightCreate, startMidnightRestore };
 };
diff --git a/v1/apps/browser-extension-wallet/src/hooks/useWalletManager.ts b/v1/apps/browser-extension-wallet/src/hooks/useWalletManager.ts
index cd1bc02349..6a4f324d53 100644
--- a/v1/apps/browser-extension-wallet/src/hooks/useWalletManager.ts
+++ b/v1/apps/browser-extension-wallet/src/hooks/useWalletManager.ts
@@ -251,11 +251,7 @@ const first64AsciiBytesToHex = (input: string): string => {
   return resultBuffer.toString('hex');
 };
 
-const clearBytes = (bytes: Uint8Array) => {
-  for (let i = 0; i < bytes.length; i++) {
-    bytes[i] = 0;
-  }
-};
+const { clearBytes } = Wallet.util;
 
 const getExtendedAccountPublicKey = async ({
   wallet,
@@ -1245,14 +1241,8 @@ export const useWalletManager = (): UseWalletManager => {
     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(' ');
+          const mnemonic = await Wallet.util.decryptMnemonic(wallet.encryptedSecrets.keyMaterial, passphrase);
           clearBytes(passphrase);
-          clearBytes(keyMaterialBytes);
           return mnemonic;
         }
         case WalletType.Ledger:
diff --git a/v1/apps/browser-extension-wallet/src/lib/scripts/background/services/lmpService.ts b/v1/apps/browser-extension-wallet/src/lib/scripts/background/services/lmpService.ts
index c19f148589..cd38461c74 100644
--- a/v1/apps/browser-extension-wallet/src/lib/scripts/background/services/lmpService.ts
+++ b/v1/apps/browser-extension-wallet/src/lib/scripts/background/services/lmpService.ts
@@ -1,5 +1,5 @@
 /* eslint-disable @typescript-eslint/no-var-requires */
-import { BundleAppApi, LmpBundleWallet, v1ApiGlobalProperty } from '@src/utils/lmp';
+import { BundleAppApi, v1ApiGlobalProperty } from '@src/utils/lmp';
 import { BehaviorSubject, firstValueFrom, map } from 'rxjs';
 import { bitcoinWalletManager, walletManager, walletRepository } from '../wallet';
 import { AnyBip32Wallet, AnyWallet, InMemoryWallet, WalletType } from '@cardano-sdk/web-extension';
@@ -51,7 +51,7 @@ const api: BundleAppApi = {
   wallets$: walletRepository.wallets$.pipe(
     map((wallets) =>
       wallets.map(
-        (wallet): LmpBundleWallet => ({
+        (wallet): Wallet.LmpBundleWallet => ({
           walletIcon: isBitcoinWallet(wallet) ? bitcoinLogo : cardanoLogo,
           walletId: wallet.walletId,
           walletName: wallet.metadata.name,
diff --git a/v1/apps/browser-extension-wallet/src/utils/lmp.ts b/v1/apps/browser-extension-wallet/src/utils/lmp.ts
index bc69437056..0a4bd6f3fb 100644
--- a/v1/apps/browser-extension-wallet/src/utils/lmp.ts
+++ b/v1/apps/browser-extension-wallet/src/utils/lmp.ts
@@ -1,22 +1,11 @@
-// mostly duplicated in v1 and lmp module, could be a shared library
-import { RemoteApiProperties, RemoteApiPropertyType, WalletType } from '@cardano-sdk/web-extension';
+import { RemoteApiProperties, RemoteApiPropertyType } from '@cardano-sdk/web-extension';
+import { Wallet } from '@lace/cardano';
 import { Observable } from 'rxjs';
 import { storage } from 'webextension-polyfill';
 import { Language } from '@lace/translation';
 
-export type BlockchainName = 'Bitcoin' | 'Cardano' | 'Midnight';
-
-export type LmpBundleWallet = {
-  walletId: string;
-  walletName: string;
-  walletIcon: string;
-  encryptedRecoveryPhrase?: string;
-  blockchain: BlockchainName;
-  walletType: WalletType;
-};
-
 export type BundleAppApi = {
-  wallets$: Observable<LmpBundleWallet[]>;
+  wallets$: Observable<Wallet.LmpBundleWallet[]>;
   activate(walletId: string): Promise<void>;
   language$: Observable<Language>;
   setLanguage(language: Language): Promise<void>;
@@ -27,10 +16,24 @@ export const bundleAppApiProps: RemoteApiProperties<BundleAppApi> = {
   language$: RemoteApiPropertyType.HotObservable,
   setLanguage: RemoteApiPropertyType.MethodReturningPromise
 };
+
 export const lmpApiBaseChannel = 'bundle-lmp';
 export const v1ApiGlobalProperty = 'bundleV1';
 export const STORAGE_KEY = {
-  APP_MODE: 'lace-app-mode'
+  APP_MODE: 'lace-app-mode',
+  ONBOARDING_PARAMS: 'lace-lmp-onboarding-params',
+  CAME_FROM_LMP: 'lace-came-from-lmp'
+};
+
+export type OnboardingParams = { mode: 'create' } | { mode: 'restore' };
+
+export const onboardingParamsStorage = {
+  set: (params: OnboardingParams): Promise<void> => storage.local.set({ [STORAGE_KEY.ONBOARDING_PARAMS]: params }),
+  get: async (): Promise<OnboardingParams | undefined> => {
+    const result = await storage.local.get(STORAGE_KEY.ONBOARDING_PARAMS);
+    return result[STORAGE_KEY.ONBOARDING_PARAMS] as OnboardingParams | undefined;
+  },
+  clear: (): Promise<void> => storage.local.remove(STORAGE_KEY.ONBOARDING_PARAMS)
 };
 export enum APP_MODE {
   LMP = 'LMP',
@@ -40,3 +43,19 @@ export enum APP_MODE {
 export const lmpModeStorage = {
   set: (mode: APP_MODE): Promise<void> => storage.local.set({ [STORAGE_KEY.APP_MODE]: mode })
 };
+
+export const cameFromLmpStorage = {
+  set: (): Promise<void> => storage.local.set({ [STORAGE_KEY.CAME_FROM_LMP]: true }),
+  get: async (): Promise<boolean> => {
+    const result = await storage.local.get(STORAGE_KEY.CAME_FROM_LMP);
+    return !!result[STORAGE_KEY.CAME_FROM_LMP];
+  },
+  clear: (): Promise<void> => storage.local.remove(STORAGE_KEY.CAME_FROM_LMP)
+};
+
+export const decryptMnemonic = async (encryptedRecoveryPhrase: string, password: string): Promise<string[]> => {
+  const passphrase = new Uint8Array(Buffer.from(password));
+  const mnemonic = await Wallet.util.decryptMnemonic(encryptedRecoveryPhrase, passphrase);
+  Wallet.util.clearBytes(passphrase);
+  return mnemonic;
+};
diff --git a/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/MultiWallet.tsx b/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/MultiWallet.tsx
index 5bff58ab85..0351ffa760 100644
--- a/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/MultiWallet.tsx
+++ b/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/MultiWallet.tsx
@@ -3,7 +3,7 @@ import { NavigationButton } from '@lace/common';
 import { WalletSetupConfirmationDialogProvider, WalletSetupFlow, WalletSetupFlowProvider } from '@lace/core';
 import { useBackgroundPage } from '@providers/BackgroundPageProvider';
 import { walletRoutePaths } from '@routes';
-import React, { useCallback } from 'react';
+import React, { useCallback, useEffect, useState } from 'react';
 import { useHistory } from 'react-router-dom';
 import styles from './MultiWallet.module.scss';
 import { WalletOnboardingFlows } from './WalletOnboardingFlows';
@@ -12,21 +12,39 @@ import { Home } from './Home';
 import { usePostHogClientContext } from '@providers/PostHogClientProvider';
 import { WalletSetupLayout } from '@views/browser/components';
 import { Portal } from '@views/browser/features/wallet-setup/components/Portal';
+import { APP_MODE, cameFromLmpStorage, lmpModeStorage } from '@src/utils/lmp';
 
 export const MultiWallet = (): JSX.Element => {
   const history = useHistory();
   const posthogClient = usePostHogClientContext();
   const { page, setBackgroundPage } = useBackgroundPage();
+  const [cameFromLMP, setCameFromLMP] = useState(false);
+
+  useEffect(() => {
+    const checkCameFromLMP = async () => {
+      const result = await cameFromLmpStorage.get();
+      if (result) {
+        setCameFromLMP(true);
+      }
+    };
+    void checkCameFromLMP();
+  }, []);
 
   const handleOnCancel = useCallback(
     (withConfirmationDialog: (callback: () => void) => () => void) => {
-      withConfirmationDialog(() => {
+      withConfirmationDialog(async () => {
+        if (cameFromLMP) {
+          await cameFromLmpStorage.clear();
+          await lmpModeStorage.set(APP_MODE.LMP);
+          window.location.href = '/tab.html';
+          return;
+        }
         setBackgroundPage();
         history.push(page);
         window.location.reload();
       })();
     },
-    [history, page, setBackgroundPage]
+    [history, page, setBackgroundPage, cameFromLMP]
   );
 
   return (
diff --git a/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/context.tsx b/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/context.tsx
index ac49e8320b..8a846a1197 100644
--- a/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/context.tsx
+++ b/v1/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, useLocalStorage } from '@hooks';
+import { CreateWalletParams, useLocalStorage, useLMP } from '@hooks';
 import { Wallet } from '@lace/cardano';
 import { walletRoutePaths } from '@routes';
 import React, { createContext, useCallback, useContext, useMemo, useState } from 'react';
@@ -10,10 +10,11 @@ import { WalletCreateStep } from './types';
 import { RecoveryMethod } from '../types';
 import { usePostHogClientContext } from '@providers/PostHogClientProvider';
 import { PublicPgpKeyData } from '@src/types';
-import { Blockchain, AnyWallet, WalletConflictError, WalletType } from '@cardano-sdk/web-extension';
+import { Blockchain, 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';
+import { WalletWithMnemonic } from '@lace/core';
 
 type OnNameChange = (state: { name: string }) => void;
 interface PgpValidation {
@@ -35,13 +36,12 @@ 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>
-  >;
+  walletToReuse: WalletWithMnemonic | null;
+  setWalletToReuse: React.Dispatch<React.SetStateAction<WalletWithMnemonic | null>>;
   showRecoveryPhraseError: () => void;
   setMnemonic: (mnemonic: string[]) => void;
-  nonSelectedBlockchainWallets: AnyWallet<Wallet.WalletMetadata, Wallet.AccountMetadata>[] | undefined;
+  nonSelectedBlockchainWallets: WalletWithMnemonic[] | undefined;
+  setStep: React.Dispatch<React.SetStateAction<WalletCreateStep>>;
 }
 
 interface Props {
@@ -75,10 +75,9 @@ export const CreateWalletProvider = ({ children }: Props): React.ReactElement =>
   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 [walletToReuse, setWalletToReuse] = useState<WalletWithMnemonic | null>(null);
   const [recoveryMethod, setRecoveryMethod] = useState<RecoveryMethod>('mnemonic');
+  const { midnightWallets } = useLMP();
   const [pgpInfo, setPgpInfo] = useState<PublicPgpKeyData>(INITIAL_PGP_STATE);
   const [pgpValidation, setPgpValidation] = useState<PgpValidation>({ error: null, success: null });
   const wallets = useObservable(walletRepository.wallets$);
@@ -98,15 +97,23 @@ export const CreateWalletProvider = ({ children }: Props): React.ReactElement =>
     console.error('finalizeBitcoinWalletCreation');
   }, []);
 
-  const nonSelectedBlockchainWallets = useMemo(
-    () =>
+  const nonSelectedBlockchainWallets = useMemo((): WalletWithMnemonic[] | undefined => {
+    // Filter v1 wallets that are not the selected blockchain and are in-memory (have recovery phrase)
+    const v1Wallets =
       wallets?.filter(
         (wallet) =>
           getWalletBlockchain(wallet).toLowerCase() !== selectedBlockchain.toLowerCase() &&
           wallet.type === WalletType.InMemory
-      ),
-    [selectedBlockchain, wallets]
-  );
+      ) ?? [];
+
+    // Include Midnight wallets that have encrypted recovery phrase
+    const filteredMidnightWallets: WalletWithMnemonic[] = midnightWallets
+      ? midnightWallets.filter((w) => w.encryptedRecoveryPhrase)
+      : [];
+
+    const combined = [...v1Wallets, ...filteredMidnightWallets];
+    return combined.length > 0 ? combined : undefined;
+  }, [selectedBlockchain, wallets, midnightWallets]);
 
   const showRecoveryPhraseError = useCallback(() => setStep(WalletCreateStep.RecoveryPhraseError), [setStep]);
   const setMnemonic = useCallback(
@@ -156,6 +163,7 @@ export const CreateWalletProvider = ({ children }: Props): React.ReactElement =>
     [recoveryMethod, finalizeWalletCreation, finalizeBitcoinWalletCreation, history, setShowWalletConflictError]
   );
 
+  // eslint-disable-next-line max-statements, sonarjs/cognitive-complexity
   const next: State['next'] = useCallback(
     async (state) => {
       if (state) {
@@ -163,6 +171,7 @@ export const CreateWalletProvider = ({ children }: Props): React.ReactElement =>
       }
       switch (step) {
         case WalletCreateStep.SelectBlockchain: {
+          // Note: Midnight redirects to v2 directly from SelectBlockchain component
           setStep(
             paperWalletEnabled ? WalletCreateStep.ChooseRecoveryMethod : WalletCreateStep.RecoveryPhraseWriteDown
           );
@@ -170,11 +179,11 @@ export const CreateWalletProvider = ({ children }: Props): React.ReactElement =>
         }
         case WalletCreateStep.ChooseRecoveryMethod: {
           if (recoveryMethod === 'mnemonic' || recoveryMethod === 'mnemonic-bitcoin') {
-            const nextStep =
-              nonSelectedBlockchainWallets.length > 0
-                ? WalletCreateStep.ReuseRecoveryPhrase
-                : WalletCreateStep.RecoveryPhraseWriteDown;
-            setStep(nextStep);
+            if (nonSelectedBlockchainWallets && nonSelectedBlockchainWallets.length > 0) {
+              setStep(WalletCreateStep.ReuseRecoveryPhrase);
+            } else {
+              setStep(WalletCreateStep.RecoveryPhraseWriteDown);
+            }
             break;
           }
           setStep(WalletCreateStep.SecurePaperWallet);
@@ -220,68 +229,58 @@ export const CreateWalletProvider = ({ children }: Props): React.ReactElement =>
       setFormDirty,
       paperWalletEnabled,
       recoveryMethod,
-      nonSelectedBlockchainWallets?.length,
+      nonSelectedBlockchainWallets,
       handleSetupStep,
       finalizeWalletCreation,
       history
     ]
   );
 
+  // eslint-disable-next-line max-statements
   const back = useCallback(() => {
     switch (step) {
-      case WalletCreateStep.SelectBlockchain: {
+      case WalletCreateStep.SelectBlockchain:
         setFormDirty(false);
         history.push(walletRoutePaths.newWallet.root);
         break;
-      }
-      case WalletCreateStep.ChooseRecoveryMethod: {
+      case WalletCreateStep.ChooseRecoveryMethod:
         setFormDirty(false);
         setStep(WalletCreateStep.SelectBlockchain);
         break;
-      }
-      case WalletCreateStep.RecoveryPhraseWriteDown: {
+      case WalletCreateStep.RecoveryPhraseWriteDown:
         setFormDirty(false);
-        paperWalletEnabled
-          ? setStep(WalletCreateStep.ChooseRecoveryMethod)
-          : history.push(walletRoutePaths.newWallet.root);
+        setStep(paperWalletEnabled ? WalletCreateStep.ChooseRecoveryMethod : undefined);
+        if (!paperWalletEnabled) history.push(walletRoutePaths.newWallet.root);
         break;
-      }
-      case WalletCreateStep.ReuseRecoveryPhrase: {
+      case WalletCreateStep.ReuseRecoveryPhrase:
         setStep(WalletCreateStep.RecoveryPhraseWriteDown);
         break;
-      }
-      case WalletCreateStep.SecurePaperWallet: {
+      case WalletCreateStep.SecurePaperWallet:
         setStep(WalletCreateStep.ChooseRecoveryMethod);
         break;
-      }
-      case WalletCreateStep.EnterWalletPassword: {
-        setStep(WalletCreateStep.ReuseRecoveryPhrase);
-        break;
-      }
-      case WalletCreateStep.RecoveryPhraseError: {
+      case WalletCreateStep.EnterWalletPassword:
+      case WalletCreateStep.RecoveryPhraseError:
         setStep(WalletCreateStep.ReuseRecoveryPhrase);
         break;
-      }
-      case WalletCreateStep.RecoveryPhraseInput: {
+      case WalletCreateStep.RecoveryPhraseInput:
         setFormDirty(false);
         generateMnemonic();
         setStep(WalletCreateStep.RecoveryPhraseWriteDown);
         break;
-      }
-      case WalletCreateStep.Setup: {
-        if (recoveryMethod === 'mnemonic') {
-          setStep(WalletCreateStep.RecoveryPhraseInput);
-          break;
+      case WalletCreateStep.Setup:
+        if (walletToReuse) {
+          setStep(WalletCreateStep.EnterWalletPassword);
+        } else {
+          setStep(
+            recoveryMethod === 'mnemonic' ? WalletCreateStep.RecoveryPhraseInput : WalletCreateStep.SecurePaperWallet
+          );
         }
-        setStep(WalletCreateStep.SecurePaperWallet);
         break;
-      }
-      case WalletCreateStep.SavePaperWallet: {
+      case WalletCreateStep.SavePaperWallet:
         setStep(WalletCreateStep.Setup);
         break;
-      }
     }
-  }, [generateMnemonic, history, setFormDirty, step, recoveryMethod, paperWalletEnabled]);
+  }, [generateMnemonic, history, setFormDirty, step, recoveryMethod, paperWalletEnabled, walletToReuse]);
 
   const state = useMemo(
     (): State => ({
@@ -302,7 +301,8 @@ export const CreateWalletProvider = ({ children }: Props): React.ReactElement =>
       walletToReuse,
       showRecoveryPhraseError,
       setMnemonic,
-      nonSelectedBlockchainWallets
+      nonSelectedBlockchainWallets,
+      setStep
     }),
     [
       back,
diff --git a/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/ChooseRecoveryMethod.tsx b/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/ChooseRecoveryMethod.tsx
index 933a7b7def..ba57282c06 100644
--- a/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/ChooseRecoveryMethod.tsx
+++ b/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/ChooseRecoveryMethod.tsx
@@ -179,6 +179,8 @@ export const ChooseRecoveryMethod: VFC = () => {
     next();
   };
 
+  // Paper wallet option only available for Cardano
+  // (Midnight redirects to v2 immediately from SelectBlockchain, never reaches this step)
   return (
     <ChooseRecoveryMethodBase
       title={i18n.t('paperWallet.chooseRecoveryMethod.title')}
diff --git a/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/EnterWalletPassword.tsx b/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/EnterWalletPassword.tsx
index e4d4344a24..a2eb56736f 100644
--- a/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/EnterWalletPassword.tsx
+++ b/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/EnterWalletPassword.tsx
@@ -1,12 +1,22 @@
 import React, { ReactElement } from 'react';
-import { WalletSetupEnterPasswordStep } from '@lace/core';
+import { WalletWithMnemonic, WalletSetupEnterPasswordStep } from '@lace/core';
 import { useCreateWallet } from '../context';
 import { useWalletManager } from '@hooks';
-import { WalletConflictError } from '@cardano-sdk/web-extension';
+import { AnyWallet, WalletConflictError } from '@cardano-sdk/web-extension';
 import { useTranslation } from 'react-i18next';
+import { Wallet } from '@lace/cardano';
+import { decryptMnemonic } from '@src/utils/lmp';
 
 const SUPPORTED_PASSPHRASE_LENGTH = 24;
 
+type CardanoWallet = AnyWallet<Wallet.WalletMetadata, Wallet.AccountMetadata>;
+
+const isLmpBundleWallet = (wallet: unknown): wallet is Wallet.LmpBundleWallet =>
+  wallet !== null && typeof wallet === 'object' && 'blockchain' in wallet;
+
+const getWalletDisplayName = (wallet: WalletWithMnemonic | null): string | undefined =>
+  wallet ? (isLmpBundleWallet(wallet) ? wallet.walletName : (wallet as CardanoWallet).metadata?.name) : undefined;
+
 export const EnterWalletPassword = (): ReactElement => {
   const { back, walletToReuse, setMnemonic, next, showRecoveryPhraseError } = useCreateWallet();
   const { getMnemonicForWallet } = useWalletManager();
@@ -15,7 +25,11 @@ export const EnterWalletPassword = (): ReactElement => {
 
   const handleSubmit = async (password: string) => {
     try {
-      const mnemonic = await getMnemonicForWallet(walletToReuse, Buffer.from(password));
+      const mnemonic =
+        isLmpBundleWallet(walletToReuse) && walletToReuse.encryptedRecoveryPhrase
+          ? await decryptMnemonic(walletToReuse.encryptedRecoveryPhrase, password)
+          : await getMnemonicForWallet(walletToReuse as CardanoWallet, new Uint8Array(Buffer.from(password)));
+
       if (mnemonic.length < SUPPORTED_PASSPHRASE_LENGTH) {
         showRecoveryPhraseError();
         return;
@@ -33,13 +47,13 @@ export const EnterWalletPassword = (): ReactElement => {
         setErrorMessage(t('walletSetup.reuseRecoveryPhrase.walletAlreadyExists'));
         return;
       }
-      setErrorMessage(error.message);
+      setErrorMessage(error instanceof Error ? error.message : String(error));
     }
   };
 
   return (
     <WalletSetupEnterPasswordStep
-      walletName={walletToReuse?.metadata.name}
+      walletName={getWalletDisplayName(walletToReuse)}
       onNext={handleSubmit}
       onBack={back}
       errorMessage={errorMessage}
diff --git a/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/ReuseRecoveryPhrase.tsx b/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/ReuseRecoveryPhrase.tsx
index 060704268e..90c1b64a8c 100644
--- a/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/ReuseRecoveryPhrase.tsx
+++ b/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/ReuseRecoveryPhrase.tsx
@@ -1,15 +1,21 @@
-import React, { ReactElement } from 'react';
+import React, { ReactElement, useCallback } from 'react';
 import { WalletSetupReuseMnemonicStep } from '@lace/core';
 import { useCreateWallet } from '../context';
+import { WalletCreateStep } from '../types';
 
 export const ReuseRecoveryPhrase = (): ReactElement => {
-  const { back, next, setWalletToReuse, nonSelectedBlockchainWallets } = useCreateWallet();
+  const { back, next, setWalletToReuse, nonSelectedBlockchainWallets, setStep } = useCreateWallet();
+
+  const handleBack = useCallback(() => {
+    setStep(WalletCreateStep.ChooseRecoveryMethod);
+  }, [setStep]);
 
   return (
     <WalletSetupReuseMnemonicStep
       wallets={nonSelectedBlockchainWallets}
-      onBack={back}
-      onNext={next}
+      onSkip={back}
+      onReuse={next}
+      onBack={handleBack}
       setWalletToReuse={setWalletToReuse}
     />
   );
diff --git a/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/SelectBlockchain.tsx b/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/SelectBlockchain.tsx
index 45d9a0ee95..a0b7095e4a 100644
--- a/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/SelectBlockchain.tsx
+++ b/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/create-wallet/steps/SelectBlockchain.tsx
@@ -6,14 +6,21 @@ import { usePostHogClientContext } from '@providers/PostHogClientProvider';
 import { logger } from '@lace/common';
 import { useWalletOnboarding } from '../../walletOnboardingContext';
 import { useAnalyticsContext } from '@providers/AnalyticsProvider';
+import { useLMP } from '@hooks';
+import { useTranslation } from 'react-i18next';
 
 export const SelectBlockchain = (): ReactElement => {
+  const { t } = useTranslation();
   const posthog = usePostHogClientContext();
   const { back, next, selectedBlockchain, setSelectedBlockchain } = useCreateWallet();
   const [isBitcoinDialogOpen, setIsBitcoinDialogOpen] = useState(false);
   const bitcoinWalletsEnabled = posthog?.isFeatureFlagEnabled('bitcoin-wallets');
+  const midnightWalletsEnabled = posthog?.isFeatureFlagEnabled('midnight-wallets');
   const analytics = useAnalyticsContext();
   const { postHogActions } = useWalletOnboarding();
+  const { midnightWallets, startMidnightCreate } = useLMP();
+
+  const hasMidnightWallet = midnightWallets && midnightWallets.length > 0;
 
   // eslint-disable-next-line consistent-return
   const handleNext = () => {
@@ -32,6 +39,14 @@ export const SelectBlockchain = (): ReactElement => {
     doNext().catch((error) => logger.error('Error in next selecting blockchain', error));
   };
 
+  const handleMidnightSelect = () => {
+    // Redirect to v2 immediately - v2 handles the reuse step
+    startMidnightCreate();
+    analytics
+      .sendEventToPostHog(postHogActions.create.CHOSE_BLOCKCHAIN_CLICK, { blockchain: 'Midnight' })
+      .catch((error) => logger.error('Error sending analytics', error));
+  };
+
   return (
     <>
       <WalletSetupSelectBlockchain
@@ -40,6 +55,10 @@ export const SelectBlockchain = (): ReactElement => {
         selectedBlockchain={selectedBlockchain}
         setSelectedBlockchain={setSelectedBlockchain}
         showBitcoinOption={bitcoinWalletsEnabled}
+        showMidnightOption={midnightWalletsEnabled}
+        midnightDisabled={hasMidnightWallet}
+        midnightDisabledReason={t('core.WalletSetupSelectBlockchain.midnight.disabledReason')}
+        onMidnightSelect={handleMidnightSelect}
       />
       <BitcoinImportMessageDialog
         onConfirm={handleNext}
diff --git a/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/restore-wallet/steps/SelectBlockchain.tsx b/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/restore-wallet/steps/SelectBlockchain.tsx
index 00bd0fb72e..e9fc8d561a 100644
--- a/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/restore-wallet/steps/SelectBlockchain.tsx
+++ b/v1/apps/browser-extension-wallet/src/views/browser-view/features/multi-wallet/restore-wallet/steps/SelectBlockchain.tsx
@@ -6,14 +6,21 @@ import { usePostHogClientContext } from '@providers/PostHogClientProvider';
 import { logger } from '@lace/common';
 import { useWalletOnboarding } from '../../walletOnboardingContext';
 import { useAnalyticsContext } from '@providers/AnalyticsProvider';
+import { useLMP } from '@hooks';
+import { useTranslation } from 'react-i18next';
 
 export const SelectBlockchain = (): ReactElement => {
+  const { t } = useTranslation();
   const posthog = usePostHogClientContext();
   const { back, next, selectedBlockchain, setSelectedBlockchain } = useRestoreWallet();
   const [isBitcoinDialogOpen, setIsBitcoinDialogOpen] = useState(false);
   const bitcoinWalletsEnabled = posthog?.isFeatureFlagEnabled('bitcoin-wallets');
+  const midnightWalletsEnabled = posthog?.isFeatureFlagEnabled('midnight-wallets');
   const analytics = useAnalyticsContext();
   const { postHogActions } = useWalletOnboarding();
+  const { midnightWallets, startMidnightRestore } = useLMP();
+
+  const hasMidnightWallet = midnightWallets && midnightWallets.length > 0;
 
   // eslint-disable-next-line consistent-return
   const handleNext = () => {
@@ -32,6 +39,10 @@ export const SelectBlockchain = (): ReactElement => {
     doNext().catch((error) => logger.error('Error in next selecting blockchain', error));
   };
 
+  const handleMidnightSelect = () => {
+    startMidnightRestore();
+  };
+
   return (
     <>
       <WalletSetupSelectBlockchain
@@ -40,6 +51,10 @@ export const SelectBlockchain = (): ReactElement => {
         selectedBlockchain={selectedBlockchain}
         setSelectedBlockchain={setSelectedBlockchain}
         showBitcoinOption={bitcoinWalletsEnabled}
+        showMidnightOption={midnightWalletsEnabled}
+        midnightDisabled={hasMidnightWallet}
+        midnightDisabledReason={t('core.WalletSetupSelectBlockchain.midnight.disabledReason')}
+        onMidnightSelect={handleMidnightSelect}
       />
       <BitcoinImportMessageDialog
         onConfirm={handleNext}
diff --git a/v1/packages/cardano/src/wallet/types.ts b/v1/packages/cardano/src/wallet/types.ts
index e8a6ab3e7b..d6e6e42630 100644
--- a/v1/packages/cardano/src/wallet/types.ts
+++ b/v1/packages/cardano/src/wallet/types.ts
@@ -2,6 +2,17 @@ import { Cardano, Paginated } from '@cardano-sdk/core';
 import type { LedgerKeyAgent } from '@cardano-sdk/hardware-ledger';
 import { WalletType } from '@cardano-sdk/web-extension';
 
+export type BlockchainName = 'Bitcoin' | 'Cardano' | 'Midnight';
+
+export type LmpBundleWallet = {
+  walletId: string;
+  walletName: string;
+  walletIcon: string;
+  encryptedRecoveryPhrase?: string;
+  blockchain: BlockchainName;
+  walletType: WalletType;
+};
+
 export type LedgerConnection = LedgerKeyAgent['deviceConnection'];
 
 export type DeviceConnection = LedgerConnection | boolean;
diff --git a/v1/packages/cardano/src/wallet/util/index.ts b/v1/packages/cardano/src/wallet/util/index.ts
index 3cfea4d1a2..608c610e9e 100644
--- a/v1/packages/cardano/src/wallet/util/index.ts
+++ b/v1/packages/cardano/src/wallet/util/index.ts
@@ -8,3 +8,4 @@ export * from './voter';
 export * from './derive-ed25519-key-hash-from-bip32-public-key';
 export * from './is-nft';
 export * from './cose-key-to-raw';
+export * from './mnemonic-utils';
diff --git a/v1/packages/cardano/src/wallet/util/mnemonic-utils.ts b/v1/packages/cardano/src/wallet/util/mnemonic-utils.ts
new file mode 100644
index 0000000000..cb6eb35465
--- /dev/null
+++ b/v1/packages/cardano/src/wallet/util/mnemonic-utils.ts
@@ -0,0 +1,17 @@
+import * as KeyManagement from '@cardano-sdk/key-management';
+
+export const clearBytes = (bytes: Uint8Array): void => {
+  for (let i = 0; i < bytes.length; i++) {
+    bytes[i] = 0;
+  }
+};
+
+export const decryptMnemonic = async (encryptedKeyMaterial: string, passphrase: Uint8Array): Promise<string[]> => {
+  const keyMaterialBytes = await KeyManagement.emip3decrypt(
+    new Uint8Array(Buffer.from(encryptedKeyMaterial, 'hex')),
+    passphrase
+  );
+  const mnemonic = Buffer.from(keyMaterialBytes).toString('utf8').split(' ');
+  clearBytes(keyMaterialBytes);
+  return mnemonic;
+};
diff --git a/v1/packages/core/src/ui/assets/icons/midnight.svg b/v1/packages/core/src/ui/assets/icons/midnight.svg
new file mode 100644
index 0000000000..2fe346ed9c
--- /dev/null
+++ b/v1/packages/core/src/ui/assets/icons/midnight.svg
@@ -0,0 +1,4 @@
+<svg width="16" height="16" viewBox="0 0 16 16" fill="none" xmlns="http://www.w3.org/2000/svg">
+<path d="M8.00023 0C3.58144 0 0 3.58126 0 8C0 12.4187 3.58144 16 8.00023 16C12.419 16 16 12.4187 16 8C16 3.58126 12.4186 0 8.00023 0ZM8.00023 14.5243C4.40188 14.5243 1.47552 11.5973 1.47552 8C1.47552 4.40274 4.40188 1.47566 8.00023 1.47566C11.5981 1.47566 14.5245 4.40274 14.5245 8C14.5245 11.5973 11.5972 14.5243 8.00023 14.5243Z" fill="currentColor"/>
+<path d="M8.7511 7.24951H7.25V8.75077H8.7511V7.24951ZM8.7511 4.87831H7.25V6.37957H8.7511V4.87831ZM8.7511 2.50757H7.25V4.00928H8.7511V2.50757Z" fill="currentColor"/>
+</svg>
diff --git a/v1/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupReuseMnemonicStep.tsx b/v1/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupReuseMnemonicStep.tsx
index ff8771d6cf..d0171b62dc 100644
--- a/v1/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupReuseMnemonicStep.tsx
+++ b/v1/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupReuseMnemonicStep.tsx
@@ -1,24 +1,30 @@
 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 { Box, Flex, Select, Text, TextLink } 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 CardanoWallet = AnyWallet<Wallet.WalletMetadata, Wallet.AccountMetadata>;
+export type WalletWithMnemonic = CardanoWallet | Wallet.LmpBundleWallet;
+
+const getWalletName = (wallet: WalletWithMnemonic): string =>
+  'metadata' in wallet ? wallet.metadata.name : wallet.walletName;
+
 type WalletSetupReuseMnemonicStepProps = {
-  wallets: AnyWallet<Wallet.WalletMetadata, Wallet.AccountMetadata>[];
-  setWalletToReuse: React.Dispatch<
-    React.SetStateAction<AnyWallet<Wallet.WalletMetadata, Wallet.AccountMetadata> | undefined>
-  >;
-  onBack: () => void;
-  onNext: () => void;
+  wallets: WalletWithMnemonic[];
+  setWalletToReuse: React.Dispatch<React.SetStateAction<WalletWithMnemonic | undefined>>;
+  onSkip: () => void;
+  onReuse: () => void;
+  onBack?: () => void;
 };
 
 export const WalletSetupReuseMnemonicStep = ({
   wallets = [],
   setWalletToReuse,
-  onNext,
+  onReuse,
+  onSkip,
   onBack
 }: WalletSetupReuseMnemonicStepProps): ReactElement => {
   const [selectedWallet, setSelectedWallet] = useState<string | undefined>(wallets[0]?.walletId);
@@ -40,11 +46,17 @@ export const WalletSetupReuseMnemonicStep = ({
       title={t('core.walletSetupReuseRecoveryPhrase.title')}
       description={t('core.walletSetupReuseRecoveryPhrase.description')}
       onBack={onBack}
-      onNext={onNext}
-      nextLabel={t('core.walletSetupReuseRecoveryPhrase.useSameRecoveryPhrase')}
-      backLabel={t('core.walletSetupReuseRecoveryPhrase.createNewOne')}
+      onNext={onReuse}
+      nextLabel={t('core.walletSetupReuseRecoveryPhrase.reuse')}
       isNextEnabled={!!selectedWallet}
       currentTimelineStep={WalletTimelineSteps.RECOVERY_DETAILS}
+      customAction={
+        <TextLink
+          label={t('core.walletSetupReuseRecoveryPhrase.skip')}
+          onClick={onSkip}
+          data-testid="wallet-setup-step-btn-skip"
+        />
+      }
     >
       <Flex flexDirection="column" mt="$52" gap="$16" w="$fill">
         <Text.Body.Normal>{t('core.walletSetupReuseRecoveryPhrase.selectWallet')}</Text.Body.Normal>
@@ -59,8 +71,8 @@ export const WalletSetupReuseMnemonicStep = ({
             zIndex={1000}
             fullWidth
           >
-            {wallets.map(({ walletId, metadata }) => (
-              <Select.Item key={walletId} value={walletId} title={metadata.name} />
+            {wallets.map((wallet) => (
+              <Select.Item key={wallet.walletId} value={wallet.walletId} title={getWalletName(wallet)} />
             ))}
           </Select.Root>
         </Box>
diff --git a/v1/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupSelectBlockchain.module.scss b/v1/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupSelectBlockchain.module.scss
index 66cc59a839..cb3b45756a 100644
--- a/v1/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupSelectBlockchain.module.scss
+++ b/v1/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupSelectBlockchain.module.scss
@@ -11,6 +11,16 @@
   &.selected {
     border: 2px solid var(--primary-accent) !important;
   }
+
+  &.disabled {
+    cursor: not-allowed;
+    opacity: 0.7;
+    background: var(--light-mode-light-grey, var(--dark-mode-dark-grey, #1a1a1a)) !important;
+
+    &:hover {
+      border: 2px solid var(--light-mode-light-grey-plus, var(--dark-mode-mid-grey, #333333)) !important;
+    }
+  }
 }
 
 .icon {
@@ -37,6 +47,11 @@
   background: var(--primary-gradient);
 }
 
+.secondaryBadge {
+  @extend .badge;
+  background: var(--light-mode-dark-grey, var(--dark-mode-light-grey, #666666));
+}
+
 .badgeText {
   color: white !important;
 }
diff --git a/v1/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupSelectBlockchain.tsx b/v1/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupSelectBlockchain.tsx
index 2ba7d4dd3c..9f0cee639c 100644
--- a/v1/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupSelectBlockchain.tsx
+++ b/v1/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupSelectBlockchain.tsx
@@ -1,9 +1,10 @@
-import React, { ReactElement } from 'react';
+import React, { ReactElement, useState } from 'react';
 import { WalletSetupStepLayoutRevamp } from './WalletSetupStepLayoutRevamp';
 import { WalletTimelineSteps } from '@ui/components/WalletSetup';
 import { Card, Flex, Text } from '@input-output-hk/lace-ui-toolkit';
 import { ReactComponent as CardanoIcon } from '../../assets/icons/cardano.svg';
 import { ReactComponent as BitcoinIcon } from '../../assets/icons/bitcoin.svg';
+import { ReactComponent as MidnightIcon } from '../../assets/icons/midnight.svg';
 import { Radio } from '@lace/common';
 import styles from './WalletSetupSelectBlockchain.module.scss';
 import cn from 'classnames';
@@ -11,15 +12,17 @@ import { Blockchain } from '@cardano-sdk/web-extension';
 import { useTranslation } from 'react-i18next';
 import { TFunction } from 'i18next';
 
+type BlockchainSelection = Blockchain | 'Midnight';
+
 interface BlockchainOption {
-  value: Blockchain;
+  value: BlockchainSelection;
   title: string;
   description: string;
   icon: React.FC<React.SVGProps<SVGSVGElement>>;
   testId: string;
   badge?: {
     text: string;
-    type: 'primary' | 'gradient';
+    type: 'primary' | 'gradient' | 'secondary';
   };
 }
 
@@ -35,6 +38,17 @@ const getBlockchainOptions = (t: TFunction): BlockchainOption[] => [
       type: 'primary'
     }
   },
+  {
+    value: 'Midnight',
+    title: t('core.WalletSetupSelectBlockchain.midnight'),
+    description: t('core.WalletSetupSelectBlockchain.midnight.description'),
+    icon: MidnightIcon,
+    testId: 'midnight-blockchain-card',
+    badge: {
+      text: t('core.WalletSetupSelectBlockchain.newBadge'),
+      type: 'gradient'
+    }
+  },
   {
     value: 'Bitcoin',
     title: t('core.WalletSetupSelectBlockchain.bitcoin'),
@@ -54,6 +68,10 @@ interface WalletSetupSelectBlockchainProps {
   selectedBlockchain: Blockchain;
   setSelectedBlockchain: (blockchain: Blockchain) => void;
   showBitcoinOption?: boolean;
+  showMidnightOption?: boolean;
+  midnightDisabled?: boolean;
+  midnightDisabledReason?: string;
+  onMidnightSelect?: () => void;
 }
 
 export const WalletSetupSelectBlockchain = ({
@@ -61,37 +79,94 @@ export const WalletSetupSelectBlockchain = ({
   next,
   setSelectedBlockchain,
   selectedBlockchain,
-  showBitcoinOption = true
+  showBitcoinOption = true,
+  showMidnightOption = false,
+  midnightDisabled = false,
+  midnightDisabledReason,
+  onMidnightSelect
 }: WalletSetupSelectBlockchainProps): ReactElement => {
   const { t } = useTranslation();
-  const blockchainOptionsToShow = showBitcoinOption
-    ? getBlockchainOptions(t)
-    : getBlockchainOptions(t).filter((option) => option.value !== 'Bitcoin');
+  const [isMidnightSelected, setIsMidnightSelected] = useState(false);
+
+  const blockchainOptionsToShow = getBlockchainOptions(t).filter((option) => {
+    if (option.value === 'Bitcoin' && !showBitcoinOption) return false;
+    if (option.value === 'Midnight' && !showMidnightOption) return false;
+    return true;
+  });
+
+  const isOptionDisabled = (value: string): boolean => value === 'Midnight' && midnightDisabled;
+
+  const getDisabledDescription = (option: BlockchainOption): string => {
+    if (option.value === 'Midnight' && midnightDisabled && midnightDisabledReason) {
+      return midnightDisabledReason;
+    }
+    return option.description;
+  };
+
+  const getDisabledBadge = (option: BlockchainOption): BlockchainOption['badge'] => {
+    if (option.value === 'Midnight' && midnightDisabled) {
+      return {
+        text: t('core.WalletSetupSelectBlockchain.midnight.alreadyHaveWallet'),
+        type: 'secondary'
+      };
+    }
+    return option.badge;
+  };
+
+  const handleSelect = (value: BlockchainSelection) => {
+    if (isOptionDisabled(value)) return;
+
+    if (value === 'Midnight') {
+      setIsMidnightSelected(true);
+    } else {
+      setIsMidnightSelected(false);
+      setSelectedBlockchain(value);
+    }
+  };
+
+  const handleNext = () => {
+    if (isMidnightSelected && onMidnightSelect) {
+      onMidnightSelect();
+    } else {
+      next();
+    }
+  };
+
+  const isSelected = (value: BlockchainSelection): boolean => {
+    if (value === 'Midnight') return isMidnightSelected;
+    return !isMidnightSelected && selectedBlockchain === value;
+  };
 
   return (
     <WalletSetupStepLayoutRevamp
       title={t('core.WalletSetupSelectBlockchain.title')}
       onBack={back}
-      onNext={next}
+      onNext={handleNext}
       description={t('core.WalletSetupSelectBlockchain.description')}
       currentTimelineStep={WalletTimelineSteps.SELECT_BLOCKCHAIN}
     >
-      <Flex flexDirection="column" gap="$16">
+      <Flex flexDirection="column" gap="$12">
         {blockchainOptionsToShow.map((option) => {
           const Icon = option.icon;
+          const disabled = isOptionDisabled(option.value);
+          const badge = getDisabledBadge(option);
+          const description = getDisabledDescription(option);
+
           return (
             <Card.Outlined
               key={option.value}
               data-testid={option.testId}
-              onClick={() => setSelectedBlockchain(option.value)}
+              onClick={() => handleSelect(option.value)}
               className={cn(styles.blockchainCard, {
-                [styles.selected]: selectedBlockchain === option.value
+                [styles.selected]: isSelected(option.value),
+                [styles.disabled]: disabled
               })}
             >
-              <Flex gap="$16" alignItems="flex-start" px="$16" py="$16">
+              <Flex gap="$16" alignItems="flex-start" px="$16" py="$12">
                 <Radio
-                  checked={selectedBlockchain === option.value}
-                  onChange={() => setSelectedBlockchain(option.value)}
+                  checked={isSelected(option.value)}
+                  onChange={() => handleSelect(option.value)}
+                  disabled={disabled}
                   data-testid={`${option.value.toLowerCase()}-option-radio-button`}
                 />
                 <Flex flexDirection="column" gap="$8">
@@ -99,22 +174,25 @@ export const WalletSetupSelectBlockchain = ({
                     <Text.Body.Large weight="$bold" data-testid={`${option.value.toLowerCase()}-option-title`}>
                       {option.title}
                     </Text.Body.Large>
-                    <div
-                      className={cn({
-                        [styles.primaryBadge]: option.badge?.type === 'primary',
-                        [styles.gradientBadge]: option.badge?.type === 'gradient'
-                      })}
-                    >
-                      <Text.Label
-                        className={styles.badgeText}
-                        data-testid={`${option.value.toLowerCase()}-option-badge`}
+                    {badge && (
+                      <div
+                        className={cn({
+                          [styles.primaryBadge]: badge.type === 'primary',
+                          [styles.gradientBadge]: badge.type === 'gradient',
+                          [styles.secondaryBadge]: badge.type === 'secondary'
+                        })}
                       >
-                        {option.badge?.text}
-                      </Text.Label>
-                    </div>
+                        <Text.Label
+                          className={styles.badgeText}
+                          data-testid={`${option.value.toLowerCase()}-option-badge`}
+                        >
+                          {badge.text}
+                        </Text.Label>
+                      </div>
+                    )}
                   </Flex>
                   <Text.Body.Normal color="secondary" data-testid={`${option.value.toLowerCase()}-option-description`}>
-                    {option.description}
+                    {description}
                   </Text.Body.Normal>
                 </Flex>
                 <div style={{ alignSelf: 'center' }}>
diff --git a/v1/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupStepLayoutRevamp.module.scss b/v1/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupStepLayoutRevamp.module.scss
index 1f6f1d7071..a60d0fe1f0 100644
--- a/v1/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupStepLayoutRevamp.module.scss
+++ b/v1/packages/core/src/ui/components/WalletSetupRevamp/WalletSetupStepLayoutRevamp.module.scss
@@ -22,10 +22,10 @@
   .container {
     flex: 1;
     height: 100%;
-    padding: size_unit(5);
+    padding: size_unit(2.5) size_unit(5);
     display: flex;
     flex-direction: column;
-    gap: size_unit(2);
+    gap: size_unit(1.5);
 
     .header {
       display: flex;
@@ -48,6 +48,7 @@
 
     .content {
       flex: 1;
+      overflow: auto;
       @include scroll-bar-style;
     }
 
diff --git a/v1/packages/core/src/ui/components/WalletSetupRevamp/index.ts b/v1/packages/core/src/ui/components/WalletSetupRevamp/index.ts
index c7bde9b1e8..b294832d31 100644
--- a/v1/packages/core/src/ui/components/WalletSetupRevamp/index.ts
+++ b/v1/packages/core/src/ui/components/WalletSetupRevamp/index.ts
@@ -12,5 +12,6 @@ export { WalletSetupConnectHardwareWalletStepRevamp } from './WalletSetupConnect
 export { WalletSetupHWCreationStep } from './WalletSetupHWCreationStep';
 export { WalletSetupSelectBlockchain } from './WalletSetupSelectBlockchain';
 export { WalletSetupReuseMnemonicStep } from './WalletSetupReuseMnemonicStep';
+export type { WalletWithMnemonic } from './WalletSetupReuseMnemonicStep';
 export { WalletSetupEnterPasswordStep } from './WalletSetupEnterPasswordStep';
 export { WalletSetupMnemonicErrorStep } from './WalletSetupMnemonicErrorStep';
diff --git a/v1/packages/e2e-tests/src/assert/onboarding/ReuseRecoveryPhrasePageAssert.ts b/v1/packages/e2e-tests/src/assert/onboarding/ReuseRecoveryPhrasePageAssert.ts
index acbb06e632..e83e4cc7ae 100644
--- a/v1/packages/e2e-tests/src/assert/onboarding/ReuseRecoveryPhrasePageAssert.ts
+++ b/v1/packages/e2e-tests/src/assert/onboarding/ReuseRecoveryPhrasePageAssert.ts
@@ -16,13 +16,11 @@ class ReuseRecoveryPhrasePageAssert extends OnboardingCommonAssert {
     await ReuseRecoveryPhrasePage.walletSelectInput.waitForDisplayed();
 
     await ReuseRecoveryPhrasePage.backButton.waitForDisplayed();
-    expect(await ReuseRecoveryPhrasePage.backButton.getText()).to.equal(
-      await t('core.walletSetupReuseRecoveryPhrase.createNewOne')
-    );
+    expect(await ReuseRecoveryPhrasePage.backButton.getText()).to.equal(await t('core.walletSetupStep.back'));
 
     await ReuseRecoveryPhrasePage.nextButton.waitForDisplayed();
     expect(await ReuseRecoveryPhrasePage.nextButton.getText()).to.equal(
-      await t('core.walletSetupReuseRecoveryPhrase.useSameRecoveryPhrase')
+      await t('core.walletSetupReuseRecoveryPhrase.reuse')
     );
   }
 
diff --git a/v1/packages/translation/src/lib/translations/core/en.json b/v1/packages/translation/src/lib/translations/core/en.json
index 931c1a60e5..44cc1ec9d3 100644
--- a/v1/packages/translation/src/lib/translations/core/en.json
+++ b/v1/packages/translation/src/lib/translations/core/en.json
@@ -679,15 +679,19 @@
   "core.WalletSetupSelectBlockchain.title": "Select a Blockchain",
   "core.WalletSetupSelectBlockchain.cardano": "Cardano",
   "core.WalletSetupSelectBlockchain.bitcoin": "Bitcoin",
-  "core.WalletSetupSelectBlockchain.description": "Choose between Cardano or Bitcoin wallet. Once onboarded, you can create additional wallets from both later.",
+  "core.WalletSetupSelectBlockchain.midnight": "Midnight",
+  "core.WalletSetupSelectBlockchain.description": "Choose between Cardano, Midnight or Bitcoin wallets. Once onboarded, you can create additional wallets from both later.",
   "core.WalletSetupSelectBlockchain.cardano.description": "Allows you to manage your Cardano (ADA) and other native assets on the Cardano blockchain.",
   "core.WalletSetupSelectBlockchain.bitcoin.description": "Allows you to manage your Bitcoin (BTC) and other assets on the Bitcoin blockchain",
+  "core.WalletSetupSelectBlockchain.midnight.description": "Allows you interact with the Midnight Network, a privacy-focused blockchain designed to protect sensitive data.",
+  "core.WalletSetupSelectBlockchain.midnight.alreadyHaveWallet": "You already have a Midnight wallet",
+  "core.WalletSetupSelectBlockchain.midnight.disabledReason": "At this moment only one Midnight wallet is supported. Please remove the existing wallet if you want to create a new one.",
   "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.reuse": "Reuse",
+  "core.walletSetupReuseRecoveryPhrase.skip": "Skip",
   "core.walletSetupReuseRecoveryPhrase.selectWallet": "Select a wallet",
   "core.walletSetupReuseRecoveryPhrase.confirmPassword": "Confirm your password",
   "core.walletSetupReuseRecoveryPhrase.insertPassword": "Insert your password",
diff --git a/v1/packages/translation/src/lib/translations/core/es.json b/v1/packages/translation/src/lib/translations/core/es.json
index bdd77ef62c..e4c8e6f7b4 100644
--- a/v1/packages/translation/src/lib/translations/core/es.json
+++ b/v1/packages/translation/src/lib/translations/core/es.json
@@ -679,15 +679,19 @@
   "core.WalletSetupSelectBlockchain.title": "Selecciona una cadena de bloques",
   "core.WalletSetupSelectBlockchain.cardano": "Cardano",
   "core.WalletSetupSelectBlockchain.bitcoin": "Bitcoin",
-  "core.WalletSetupSelectBlockchain.description": "Elige entre una cartera de Cardano o de Bitcoin. Una vez completado el registro, podrás crear carteras adicionales para ambos más adelante.",
+  "core.WalletSetupSelectBlockchain.midnight": "Midnight",
+  "core.WalletSetupSelectBlockchain.description": "Elige entre carteras de Cardano, Midnight o Bitcoin. Una vez completado el registro, podrás crear carteras adicionales más adelante.",
   "core.WalletSetupSelectBlockchain.cardano.description": "Te permite gestionar Cardano (ADA) y otros activos nativos en la cadena de bloques de Cardano.",
   "core.WalletSetupSelectBlockchain.bitcoin.description": "Te permite gestionar Bitcoin (BTC) y otros activos en la cadena de bloques de Bitcoin.",
+  "core.WalletSetupSelectBlockchain.midnight.description": "Te permite interactuar con la red Midnight, una blockchain centrada en la privacidad diseñada para proteger datos sensibles.",
+  "core.WalletSetupSelectBlockchain.midnight.alreadyHaveWallet": "Ya tienes una billetera Midnight",
+  "core.WalletSetupSelectBlockchain.midnight.disabledReason": "En este momento solo se admite una billetera Midnight. Elimina la billetera existente si deseas crear una nueva.",
   "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.reuse": "Reutilizar",
+  "core.walletSetupReuseRecoveryPhrase.skip": "Omitir",
   "core.walletSetupReuseRecoveryPhrase.selectWallet": "Seleccionar una billetera",
   "core.walletSetupReuseRecoveryPhrase.confirmPassword": "Confirme su contraseña",
   "core.walletSetupReuseRecoveryPhrase.insertPassword": "Introduzca su contraseña",
diff --git a/v2 b/v2
index 8f9ee66983..9b6791fc37 160000
--- a/v2
+++ b/v2
@@ -1 +1 @@
-Subproject commit 8f9ee6698329465f2e81a7930188be78cc7e549a
+Subproject commit 9b6791fc37fa4e62d3c2aefe1706ca571312ccaf