diff --git a/apps/shared/wallet/src/WalletController.cpp b/apps/shared/wallet/src/WalletController.cpp
index 535629f..39aa47e 100644
--- a/apps/shared/wallet/src/WalletController.cpp
+++ b/apps/shared/wallet/src/WalletController.cpp
@@ -178,17 +178,22 @@ QString WalletController::createWallet(const QString& configPath,
 
     m_state.configPath = config;
     m_state.storagePath = storage;
-    m_state.walletExists = true;
     QSettings(SETTINGS_ORG, m_settingsApplication).setValue(DISCONNECTED_KEY, false);
     if (!creation.ok()) {
         qWarning() << "WalletController: wallet creation failed"
                    << walletFailureCode(creation.failure);
+        m_state.walletExists = QFileInfo::exists(storage);
+        m_state.isWalletOpen = false;
+        m_state.syncStatus = QStringLiteral("error");
+        m_state.syncError = walletFailureCode(creation.failure);
         emit stateChanged();
         return creation.mnemonic;
     }
 
+    m_state.walletExists = true;
     m_state.isWalletOpen = true;
     m_state.syncStatus = QStringLiteral("ready");
+    m_state.syncError.clear();
     applySnapshot(creation.snapshot);
     return creation.mnemonic;
 }
diff --git a/apps/shared/wallet/tests/cpp/LogosWalletProviderTest.cpp b/apps/shared/wallet/tests/cpp/LogosWalletProviderTest.cpp
index 7a10de1..6517953 100644
--- a/apps/shared/wallet/tests/cpp/LogosWalletProviderTest.cpp
+++ b/apps/shared/wallet/tests/cpp/LogosWalletProviderTest.cpp
@@ -70,6 +70,7 @@ private slots:
     void deferredCallbacksIgnoreDestroyedController();
     void newerReachabilityResultWins();
     void coalescesReachabilityChecksForSameEndpoint();
+    void controllerReportsPartialWalletCreation();
 };
 
 void LogosWalletProviderTest::adoptsOpenWalletAndCachesSnapshots()
@@ -615,6 +616,25 @@ void LogosWalletProviderTest::coalescesReachabilityChecksForSameEndpoint()
     settings.clear();
 }
 
+void LogosWalletProviderTest::controllerReportsPartialWalletCreation()
+{
+    const QString settingsApplication = QStringLiteral("WalletPartialCreationTest");
+    QSettings settings(QStringLiteral("Logos"), settingsApplication);
+    settings.clear();
+
+    FakeWalletProvider provider;
+    provider.createWalletResult.mnemonic = QStringLiteral("one two three");
+    provider.createWalletResult.failure = WalletFailure::SaveFailed;
+    WalletController controller(provider, settingsApplication);
+
+    QCOMPARE(controller.createDefaultWallet(QStringLiteral("secret")),
+             provider.createWalletResult.mnemonic);
+    QVERIFY(!controller.state().isWalletOpen);
+    QCOMPARE(controller.state().syncStatus, QStringLiteral("error"));
+    QCOMPARE(controller.state().syncError, QStringLiteral("save_failed"));
+    settings.clear();
+}
+
 QTEST_GUILESS_MAIN(LogosWalletProviderTest)
 
 #include "LogosWalletProviderTest.moc"