diff --git a/lib/utils/accountParser.js b/lib/utils/accountParser.js
index 3ad1dac9f..ee329a9c4 100644
--- a/lib/utils/accountParser.js
+++ b/lib/utils/accountParser.js
@@ -1,5 +1,6 @@
 const bip39 = require("bip39");
 const hdkey = require('ethereumjs-wallet/hdkey');
+const ethereumjsWallet = require('ethereumjs-wallet');
 const fs = require('../core/fs');
 const {getHexBalanceFromString} = require('../utils/utils');
 
@@ -29,7 +30,6 @@ class AccountParser {
     let hexBalance = null;
     if (accountConfig.balance) {
       hexBalance = getHexBalanceFromString(accountConfig.balance, web3);
-      //hexBalance = getHexBalanceFromString(accountConfig.balance, web3);
     }
 
     if (accountConfig.privateKey === 'random') {
@@ -47,8 +47,26 @@ class AccountParser {
       }
       return Object.assign(web3.eth.accounts.privateKeyToAccount(accountConfig.privateKey), {hexBalance});
     }
+
     if (accountConfig.privateKeyFile) {
       let fileContent = fs.readFileSync(fs.dappPath(accountConfig.privateKeyFile)).toString();
+      if (accountConfig.password) {
+        try {
+          fileContent = JSON.parse(fileContent);
+          if (!ethereumjsWallet['fromV' + fileContent.version]) {
+            logger.error(`Key file ${accountConfig.privateKeyFile} is not a valid keystore file`);
+            return null;
+          }
+          const wallet = ethereumjsWallet['fromV' + fileContent.version](fileContent, accountConfig.password);
+
+          return Object.assign(web3.eth.accounts.privateKeyToAccount('0x' + wallet.getPrivateKey().toString('hex')), {hexBalance});
+        } catch (e) {
+          logger.error('Private key file is not a keystore JSON file but a password was provided');
+          logger.error(e.message || e);
+          return null;
+        }
+      }
+
       fileContent = fileContent.trim().split(/[,;]/);
       return fileContent.map((key, index) => {
         if (!key.startsWith('0x')) {
@@ -61,6 +79,7 @@ class AccountParser {
         return Object.assign(web3.eth.accounts.privateKeyToAccount(key), {hexBalance});
       });
     }
+
     if (accountConfig.mnemonic) {
       const hdwallet = hdkey.fromMasterSeed(bip39.mnemonicToSeed(accountConfig.mnemonic.trim()));