diff --git a/packages/react-chat/src/components/Form/NameError.tsx b/packages/react-chat/src/components/Form/NameError.tsx
new file mode 100644
index 00000000..b47d0c62
--- /dev/null
+++ b/packages/react-chat/src/components/Form/NameError.tsx
@@ -0,0 +1,44 @@
+import React from "react";
+import styled from "styled-components";
+
+import { NameErrors } from "../../hooks/useNameError";
+import { Hint } from "../Modals/ModalStyle";
+
+type NameErrorProps = {
+  error: NameErrors;
+};
+
+export function NameError({ error }: NameErrorProps) {
+  switch (error) {
+    case NameErrors.NoError:
+      return null;
+    case NameErrors.NameExists:
+      return (
+        <ErrorText>
+          Sorry, the name you have chosen is not allowed, try picking another
+          username
+        </ErrorText>
+      );
+    case NameErrors.BadCharacters:
+      return (
+        <ErrorText>
+          Only letters, numbers, underscores and hypens allowed
+        </ErrorText>
+      );
+    case NameErrors.EndingWithEth:
+      return (
+        <ErrorText>
+          Usernames ending with “_eth” or "-eth" are not allowed
+        </ErrorText>
+      );
+    case NameErrors.TooLong:
+      return <ErrorText>24 character username limit</ErrorText>;
+  }
+}
+
+const ErrorText = styled(Hint)`
+  color: ${({ theme }) => theme.redColor};
+  text-align: center;
+  width: 328px;
+  margin: 8px 0;
+`;
diff --git a/packages/react-chat/src/components/Form/inputStyles.ts b/packages/react-chat/src/components/Form/inputStyles.ts
index 763feb97..8c3ed884 100644
--- a/packages/react-chat/src/components/Form/inputStyles.ts
+++ b/packages/react-chat/src/components/Form/inputStyles.ts
@@ -69,9 +69,25 @@ export const InputBtn = styled.button`
   border-radius: 6px;
 `;
 
+export const NameInputWrapper = styled.div`
+  position: relative;
+`;
+
 export const NameInput = styled.input`
   width: 328px;
   padding: 11px 16px;
 
   ${inputStyles}
 `;
+
+export const ClearBtn = styled.button`
+  position: absolute;
+  right: 16px;
+  top: 50%;
+  transform: translateY(-50%);
+  border-radius: 50%;
+
+  & > svg {
+    fill: ${({ theme }) => theme.secondary};
+  }
+`;
diff --git a/packages/react-chat/src/components/Icons/ClearIcon.tsx b/packages/react-chat/src/components/Icons/ClearIcon.tsx
index c20abab7..41ec2120 100644
--- a/packages/react-chat/src/components/Icons/ClearIcon.tsx
+++ b/packages/react-chat/src/components/Icons/ClearIcon.tsx
@@ -26,6 +26,21 @@ export function ClearSvg({ height, width, className }: ClearSvgProps) {
   );
 }
 
+<svg
+  width="16"
+  height="16"
+  viewBox="0 0 16 16"
+  fill="none"
+  xmlns="http://www.w3.org/2000/svg"
+>
+  <path
+    fill-rule="evenodd"
+    clip-rule="evenodd"
+    d="M8 15C11.866 15 15 11.866 15 8C15 4.13401 11.866 1 8 1C4.13401 1 1 4.13401 1 8C1 11.866 4.13401 15 8 15ZM11 5C11.2441 5.24408 11.2441 5.63981 11 5.88388L8.88393 8L11 10.1161C11.2441 10.3602 11.2441 10.7559 11 11C10.756 11.2441 10.3602 11.2441 10.1162 11L8.00005 8.88389L5.88393 11C5.63985 11.2441 5.24412 11.2441 5.00005 11C4.75597 10.7559 4.75597 10.3602 5.00005 10.1161L7.11616 8L5.00005 5.88389C4.75597 5.63981 4.75597 5.24408 5.00005 5C5.24412 4.75593 5.63985 4.75593 5.88393 5L8.00005 7.11612L10.1162 5C10.3602 4.75592 10.756 4.75592 11 5Z"
+    fill="#939BA1"
+  />
+</svg>;
+
 export const ClearIcon = () => {
   return <Icon width={16} height={16} />;
 };
diff --git a/packages/react-chat/src/components/Icons/ClearIconFull.tsx b/packages/react-chat/src/components/Icons/ClearIconFull.tsx
new file mode 100644
index 00000000..2e4acea6
--- /dev/null
+++ b/packages/react-chat/src/components/Icons/ClearIconFull.tsx
@@ -0,0 +1,31 @@
+import React from "react";
+import styled from "styled-components";
+
+type ClearSvgFullProps = {
+  width: number;
+  height: number;
+  className?: string;
+};
+
+export function ClearSvgFull({ height, width, className }: ClearSvgFullProps) {
+  return (
+    <Icon
+      width={width}
+      height={height}
+      viewBox="0 0 16 16"
+      fill="none"
+      xmlns="http://www.w3.org/2000/svg"
+      className={className}
+    >
+      <path
+        fillRule="evenodd"
+        clipRule="evenodd"
+        d="M8 15C11.866 15 15 11.866 15 8C15 4.13401 11.866 1 8 1C4.13401 1 1 4.13401 1 8C1 11.866 4.13401 15 8 15ZM11 5C11.2441 5.24408 11.2441 5.63981 11 5.88388L8.88393 8L11 10.1161C11.2441 10.3602 11.2441 10.7559 11 11C10.756 11.2441 10.3602 11.2441 10.1162 11L8.00005 8.88389L5.88393 11C5.63985 11.2441 5.24412 11.2441 5.00005 11C4.75597 10.7559 4.75597 10.3602 5.00005 10.1161L7.11616 8L5.00005 5.88389C4.75597 5.63981 4.75597 5.24408 5.00005 5C5.24412 4.75593 5.63985 4.75593 5.88393 5L8.00005 7.11612L10.1162 5C10.3602 4.75592 10.756 4.75592 11 5Z"
+      />
+    </Icon>
+  );
+}
+
+const Icon = styled.svg`
+  fill: ${({ theme }) => theme.secondary};
+`;
diff --git a/packages/react-chat/src/components/Modals/ProfileModal.tsx b/packages/react-chat/src/components/Modals/ProfileModal.tsx
index a662e459..4bff8941 100644
--- a/packages/react-chat/src/components/Modals/ProfileModal.tsx
+++ b/packages/react-chat/src/components/Modals/ProfileModal.tsx
@@ -9,8 +9,13 @@ import { useToasts } from "../../contexts/toastProvider";
 import { useManageContact } from "../../hooks/useManageContact";
 import { copy } from "../../utils";
 import { buttonStyles } from "../Buttons/buttonStyle";
-import { inputStyles, NameInput } from "../Form/inputStyles";
-import { ClearSvg } from "../Icons/ClearIcon";
+import {
+  ClearBtn,
+  inputStyles,
+  NameInput,
+  NameInputWrapper,
+} from "../Form/inputStyles";
+import { ClearSvgFull } from "../Icons/ClearIconFull";
 import { CopySvg } from "../Icons/CopyIcon";
 import { EditSvg } from "../Icons/EditIcon";
 import { LeftIconSvg } from "../Icons/LeftIcon";
@@ -124,14 +129,14 @@ export const ProfileModal = () => {
               value={customNameInput}
               onChange={(e) => setCustomNameInput(e.currentTarget.value)}
             />
-            {contact.customName && (
+            {customNameInput && (
               <ClearBtn
                 onClick={() => {
                   setCustomName(undefined);
                   setCustomNameInput("");
                 }}
               >
-                <ClearSvg width={16} height={16} className="profile" />
+                <ClearSvgFull width={16} height={16} />
               </ClearBtn>
             )}
           </NameInputWrapper>
@@ -401,22 +406,6 @@ const CopyButton = styled.button`
   }
 `;
 
-const ClearBtn = styled.button`
-  position: absolute;
-  right: 16px;
-  top: 50%;
-  transform: translateY(-50%);
-  border-radius: 50%;
-
-  & > svg {
-    fill: ${({ theme }) => theme.secondary};
-  }
-`;
-
-const NameInputWrapper = styled.div`
-  position: relative;
-`;
-
 const RequestSection = styled.div`
   width: 100%;
   display: flex;
diff --git a/packages/react-chat/src/components/Modals/UserCreationModal.tsx b/packages/react-chat/src/components/Modals/UserCreationModal.tsx
index 15b6b29a..ffb673ea 100644
--- a/packages/react-chat/src/components/Modals/UserCreationModal.tsx
+++ b/packages/react-chat/src/components/Modals/UserCreationModal.tsx
@@ -9,15 +9,18 @@ import {
   useWalletIdentity,
 } from "../../contexts/identityProvider";
 import { useModal } from "../../contexts/modalProvider";
+import { useNameError } from "../../hooks/useNameError";
 import { Contact } from "../../models/Contact";
 import {
   decryptIdentity,
   loadEncryptedIdentity,
   saveIdentity,
 } from "../../utils";
-import { NameInput } from "../Form/inputStyles";
+import { NameError } from "../Form/NameError";
+import { ClearBtn, NameInput, NameInputWrapper } from "../Form/inputStyles";
 import { AddIcon } from "../Icons/AddIcon";
 import { ChainIcon } from "../Icons/ChainIcon";
+import { ClearSvgFull } from "../Icons/ClearIconFull";
 import { LeftIconSvg } from "../Icons/LeftIcon";
 import { UserLogo } from "../Members/UserLogo";
 
@@ -45,8 +48,10 @@ export function UserCreationModal() {
   const encryptedIdentity = useMemo(() => loadEncryptedIdentity(), []);
 
   const [customNameInput, setCustomNameInput] = useState("");
+  const error = useNameError(customNameInput);
   const [nextStep, setNextStep] = useState(false);
   const { setModal } = useModal(UserCreationModalName);
+
   return (
     <Modal name={UserCreationModalName}>
       <Section>
@@ -89,12 +94,23 @@ export function UserCreationModal() {
           )}
         </LogoWrapper>
         {!nextStep && (
-          <NameInput
-            placeholder="Display name"
-            value={customNameInput}
-            onChange={(e) => setCustomNameInput(e.currentTarget.value)}
-          />
+          <NameInputWrapper>
+            <NameInput
+              placeholder="Display name"
+              value={customNameInput}
+              onChange={(e) => setCustomNameInput(e.currentTarget.value)}
+              maxLength={24}
+            />
+            {customNameInput && (
+              <ClearBtn onClick={() => setCustomNameInput("")}>
+                <ClearSvgFull width={16} height={16} />
+              </ClearBtn>
+            )}
+          </NameInputWrapper>
         )}
+
+        <NameError error={error} />
+
         {!nextStep && encryptedIdentity && !walletIdentity && (
           <button
             onClick={async () => {
@@ -150,7 +166,7 @@ export function UserCreationModal() {
               setNextStep(true);
             }
           }}
-          disabled={!customNameInput}
+          disabled={!customNameInput || error !== 0}
         >
           Next
         </Btn>
diff --git a/packages/react-chat/src/hooks/useNameError.tsx b/packages/react-chat/src/hooks/useNameError.tsx
new file mode 100644
index 00000000..949efef6
--- /dev/null
+++ b/packages/react-chat/src/hooks/useNameError.tsx
@@ -0,0 +1,40 @@
+import { useMemo } from "react";
+
+import { useMessengerContext } from "../contexts/messengerProvider";
+
+export enum NameErrors {
+  NoError = 0,
+  NameExists = 1,
+  BadCharacters = 2,
+  EndingWithEth = 3,
+  TooLong = 4,
+}
+
+export function useNameError(name: string) {
+  const { contacts } = useMessengerContext();
+  const RegName = new RegExp("^[a-z0-9_-]+$");
+
+  const error = useMemo(() => {
+    if (name === "") {
+      return NameErrors.NoError;
+    }
+    const nameExists = Object.values(contacts).find(
+      (contact) => contact.trueName === name
+    );
+    if (nameExists) {
+      return NameErrors.NameExists;
+    }
+    if (!name.match(RegName)) {
+      return NameErrors.BadCharacters;
+    }
+    if (name.slice(-4) === "_eth" || name.slice(-4) === "-eth") {
+      return NameErrors.EndingWithEth;
+    }
+    if (name.length >= 24) {
+      return NameErrors.TooLong;
+    }
+    return NameErrors.NoError;
+  }, [name, contacts]);
+
+  return error;
+}