diff --git a/rai/core_test/wallet.cpp b/rai/core_test/wallet.cpp
index 56f3375d27..d0438a3744 100644
--- a/rai/core_test/wallet.cpp
+++ b/rai/core_test/wallet.cpp
@@ -687,4 +687,24 @@ TEST (wallet, version_1_2_upgrade)
 	rai::raw_key prv;
 	ASSERT_FALSE (wallet->store.fetch (rai::transaction (wallet->store.environment, nullptr, false), key.pub, prv));
 	ASSERT_EQ (key.prv, prv);
+	
+	{
+		rai::transaction transaction (wallet->store.environment, nullptr, true);
+		rai::raw_key password_l;
+		rai::wallet_value value (wallet->store.entry_get_raw (transaction, rai::wallet_store::wallet_key_special));
+		rai::raw_key kdf;
+		wallet->store.derive_key (kdf, transaction, "");
+		password_l.decrypt (value.key, kdf, wallet->store.salt (transaction).owords [0]);
+		rai::uint256_union ciphertext;
+		ciphertext.encrypt (key.prv, password_l, wallet->store.salt (transaction).owords [0]);
+		wallet->store.entry_put_raw (transaction, key.pub, rai::wallet_value (ciphertext));
+		wallet->store.version_put (transaction, 1);
+	}
+	wallet->enter_password ("1");
+	ASSERT_EQ (true, wallet->valid_password ());
+	ASSERT_EQ (2, wallet->store.version (rai::transaction (wallet->store.environment, nullptr, false)));
+	rai::raw_key prv2;
+	ASSERT_FALSE (wallet->store.fetch (rai::transaction (wallet->store.environment, nullptr, false), key.pub, prv2));
+	ASSERT_EQ (key.prv, prv2);
+	
 }
\ No newline at end of file
diff --git a/rai/node/wallet.cpp b/rai/node/wallet.cpp
index 751a6a948f..3159b3fc3c 100644
--- a/rai/node/wallet.cpp
+++ b/rai/node/wallet.cpp
@@ -604,11 +604,14 @@ void rai::wallet_store::upgrade_v1_v2 ()
 {
 	rai::transaction transaction (environment, nullptr, true);
 	assert (version (transaction) == 1);
-	rai::raw_key password_l;
+	rai::raw_key zero_password;
 	rai::wallet_value value (entry_get_raw (transaction, rai::wallet_store::wallet_key_special));
     rai::raw_key kdf;
 	kdf.data.clear ();
-    password_l.decrypt (value.key, kdf, salt (transaction).owords [0]);
+    zero_password.decrypt (value.key, kdf, salt (transaction).owords [0]);
+	derive_key (kdf, transaction, "");
+	rai::raw_key empty_password;
+	empty_password.decrypt (value.key, kdf, salt (transaction).owords [0]);
 	for (auto i (begin (transaction)), n (end ()); i != n; ++i)
 	{
 		rai::public_key key (i->first);
@@ -617,7 +620,7 @@ void rai::wallet_store::upgrade_v1_v2 ()
 		{
 			// Key failed to decrypt despite valid password
 			rai::wallet_value data (entry_get_raw (transaction, key));
-			prv.decrypt (data.key, password_l, salt (transaction).owords [0]);
+			prv.decrypt (data.key, zero_password, salt (transaction).owords [0]);
 			rai::public_key compare;
 			ed25519_publickey (prv.data.bytes.data (), compare.bytes.data ());
 			if (compare == key)
@@ -625,6 +628,19 @@ void rai::wallet_store::upgrade_v1_v2 ()
 				// If we successfully decrypted it, rewrite the key back with the correct wallet key
 				insert (transaction, prv);
 			}
+			else
+			{
+				// Also try the empty password
+				rai::wallet_value data (entry_get_raw (transaction, key));
+				prv.decrypt (data.key, empty_password, salt (transaction).owords [0]);
+				rai::public_key compare;
+				ed25519_publickey (prv.data.bytes.data (), compare.bytes.data ());
+				if (compare == key)
+				{
+					// If we successfully decrypted it, rewrite the key back with the correct wallet key
+					insert (transaction, prv);
+				}
+			}
 		}
 	}
 	version_put (transaction, 2);