diff --git a/src/pages/ValidatorOnboarding/ContinueButton.stories.ts b/src/pages/ValidatorOnboarding/ContinueButton.stories.ts
index 549e8c04..d809d2c9 100644
--- a/src/pages/ValidatorOnboarding/ContinueButton.stories.ts
+++ b/src/pages/ValidatorOnboarding/ContinueButton.stories.ts
@@ -17,19 +17,5 @@ export default meta
 type Story = StoryObj<typeof meta>
 
 export const Default: Story = {
-  args: {
-    continueHandler: () => {},
-    activeStep: 0,
-    isConfirmPhraseStage: false,
-    subStepValidatorSetup: 0,
-  },
-}
-
-export const Disabled: Story = {
-  args: {
-    continueHandler: () => {},
-    activeStep: 0,
-    isConfirmPhraseStage: true,
-    subStepValidatorSetup: 0,
-  },
+  args: {},
 }
diff --git a/src/pages/ValidatorOnboarding/ContinueButton.tsx b/src/pages/ValidatorOnboarding/ContinueButton.tsx
index 024f88ef..22c88f29 100644
--- a/src/pages/ValidatorOnboarding/ContinueButton.tsx
+++ b/src/pages/ValidatorOnboarding/ContinueButton.tsx
@@ -1,84 +1,125 @@
-import { Stack, YStack } from 'tamagui'
+import { Stack, XStack } from 'tamagui'
 import { Button, InformationBox } from '@status-im/components'
 import { CloseCircleIcon } from '@status-im/icons'
 import { useSelector } from 'react-redux'
+import { useDispatch, useSelector } from 'react-redux'
+import { useEffect, useState } from 'react'
+import { useNavigate } from 'react-router-dom'
 
 import { RootState } from '../../redux/store'
 import LinkWithArrow from '../../components/General/LinkWithArrow'
+import { setActiveStep, setSubStepValidatorSetup } from '../../redux/ValidatorOnboarding/slice'
+import { KEYSTORE_FILES } from '../../constants'
+import {
+  setIsConfirmPhraseStage,
+  setIsCopyPastedPhrase,
+  setValidWords,
+} from '../../redux/ValidatorOnboarding/KeyGeneration/slice'
 
-type ContinueButton = {
-  continueHandler: () => void
-  activeStep: number
-  isConfirmPhraseStage: boolean
-  subStepValidatorSetup: number
-  isValidatorSet?: boolean
-}
-
-const ContinueButton = ({
-  continueHandler,
-  activeStep,
-  isConfirmPhraseStage,
-  subStepValidatorSetup,
-  isValidatorSet,
-}: ContinueButton) => {
-  const { isCopyPastedPhrase, words, validWords } = useSelector(
-    (state: RootState) => state.keyGeneration,
+const ContinueButton = () => {
+  const [isDisabled, setIsDisabled] = useState(false)
+  const {
+    isCopyPastedPhrase,
+    mnemonic,
+    validWords,
+    isConfirmPhraseStage,
+    recoveryMechanism,
+    generatedMnemonic,
+  } = useSelector((state: RootState) => state.keyGeneration)
+  const { activeStep, subStepValidatorSetup } = useSelector(
+    (state: RootState) => state.validatorOnboarding,
   )
-  const { isWalletConnected } = useSelector((state: RootState) => state.deposit)
+  const dispatch = useDispatch()
+  const navigate = useNavigate()
+  const isActivationValScreen = activeStep === 3 && subStepValidatorSetup === 3
 
-  const isActivationValidatorScreen = activeStep === 3 && subStepValidatorSetup === 3
+  useEffect(() => {
+    const getDisabledButton = () => {
+      if (activeStep === 4 && isConfirmPhraseStage) {
+        if (validWords.some(w => w === false)) {
+          return false
+        }
+      }
+      return false
+    }
 
-  const isDisabled = () => {
-    const isDepositWalletConnected = isWalletConnected === false && activeStep === 5
-    let isEmptyPhrase = false
-    let isNotValidWords = false
+    setIsDisabled(getDisabledButton())
+  }, [activeStep, subStepValidatorSetup, isConfirmPhraseStage, mnemonic, validWords])
+
+  const handleStep3 = () => {
+    subStepValidatorSetup < 3
+      ? dispatch(setSubStepValidatorSetup(subStepValidatorSetup + 1))
+      : dispatch(setSubStepValidatorSetup(0))
+  }
+
+  const handleStep4 = () => {
+    if (!isConfirmPhraseStage && recoveryMechanism === KEYSTORE_FILES) {
+      return dispatch(setActiveStep(activeStep + 1))
+    }
+
+    if (!isConfirmPhraseStage) {
+      return dispatch(setIsConfirmPhraseStage(true))
+    }
 
     if (isConfirmPhraseStage) {
-      isEmptyPhrase = words.some(word => word === '')
-      isNotValidWords = validWords.every(word => word === false)
-    }
+      const newValidWords = mnemonic.map((w, index) => generatedMnemonic[index] === w)
+      dispatch(setValidWords(newValidWords))
 
-    if (isEmptyPhrase || isNotValidWords || isDepositWalletConnected) {
-      return true
+      if (!newValidWords.includes(false)) {
+        setActiveStep(activeStep + 1)
+        dispatch(setIsConfirmPhraseStage(false))
+        if (isCopyPastedPhrase) {
+          dispatch(setIsCopyPastedPhrase(false))
+        }
+      }
+    }
+  }
+
+  const continueHandler = () => {
+    if (activeStep === 3) {
+      handleStep3()
+    } else if (activeStep === 4) {
+      handleStep4()
+    } else {
+      if (activeStep < 5) {
+        setActiveStep(activeStep + 1)
+      } else {
+        navigate('/')
+      }
     }
-    return false
   }
 
   return (
-    <YStack style={{ width: '100%', alignItems: 'center', zIndex: 999, marginTop: '30px' }}>
-      <Stack style={{ width: '100%' }}>
-        {isCopyPastedPhrase && (
+    <XStack
+      style={{
+        width: '100%',
+        justifyContent: isActivationValScreen ? 'space-between' : 'end',
+        alignItems: 'center',
+        zIndex: 1000,
+        marginTop: '10px',
+      }}
+    >
+      {isCopyPastedPhrase && (
+        <Stack style={{ width: '100%', position: 'absolute' }}>
           <InformationBox
             message="You have copy and pasted the entire Recovery Phrase. Please ensure you have secured it appropriately prior to continuing."
             variant="error"
             icon={<CloseCircleIcon size={20} />}
           />
-        )}
-        {isActivationValidatorScreen && (
-          <LinkWithArrow
-            text="Skip to Dashboard"
-            to="/"
-            arrowRight={true}
-            style={{ fontWeight: 'bold', zIndex: 1000 }}
-          />
-        )}
-      </Stack>
-      <Stack
-        style={{
-          width: '100%',
-          zIndex: 999,
-          alignItems: 'end',
-        }}
-      >
-        <Button
-          onPress={continueHandler}
-          size={40}
-          disabled={isDisabled() || (isValidatorSet === false && activeStep === 3)}
-        >
-          {activeStep < 6 ? 'Continue' : 'Continue to Dashboard'}
-        </Button>
-      </Stack>
-    </YStack>
+        </Stack>
+      )}
+      {isActivationValScreen && (
+        <LinkWithArrow
+          text="Skip to Dashboard"
+          to="/dashboard"
+          arrowRight={true}
+          style={{ fontWeight: 'bold', zIndex: 999 }}
+        />
+      )}
+      <Button onPress={continueHandler} size={40} disabled={isDisabled || (isValidatorSet === false && activeStep === 3)}>
+        {activeStep < 5 ? 'Continue' : 'Continue to Dashboard'}
+      </Button>
+    </XStack>
   )
 }
 
diff --git a/src/pages/ValidatorOnboarding/FormStepper/FormStepper.stories.ts b/src/pages/ValidatorOnboarding/FormStepper/FormStepper.stories.ts
index 1db421b1..a096e8b5 100644
--- a/src/pages/ValidatorOnboarding/FormStepper/FormStepper.stories.ts
+++ b/src/pages/ValidatorOnboarding/FormStepper/FormStepper.stories.ts
@@ -9,6 +9,13 @@ const meta = {
     layout: 'centered',
   },
   tags: ['autodocs'],
+  argTypes: {
+    activeStep: {
+      options: [0, 1, 2, 3, 4, 5],
+      control: { type: 'radio' },
+      defaultValue: 0,
+    },
+  },
 } satisfies Meta<typeof FormStepper>
 
 export default meta
@@ -17,48 +24,41 @@ type Story = StoryObj<typeof meta>
 export const OverviewActive: Story = {
   args: {
     activeStep: 0,
-    changeActiveStep: () => {},
   },
 }
 
 export const AdvisoriesActive: Story = {
   args: {
     activeStep: 1,
-    changeActiveStep: () => {},
   },
 }
 
 export const ClientSetupActive: Story = {
   args: {
     activeStep: 2,
-    changeActiveStep: () => {},
   },
 }
 
 export const ValidatorSetupActive: Story = {
   args: {
     activeStep: 3,
-    changeActiveStep: () => {},
   },
 }
 
 export const KeyGenerationActive: Story = {
   args: {
     activeStep: 4,
-    changeActiveStep: () => {},
   },
 }
 
 export const ActivationActive: Story = {
   args: {
     activeStep: 5,
-    changeActiveStep: () => {},
   },
 }
 
 export const NoActiveStep: Story = {
   args: {
     activeStep: -1,
-    changeActiveStep: () => {},
   },
 }
diff --git a/src/pages/ValidatorOnboarding/FormStepper/FormStepper.tsx b/src/pages/ValidatorOnboarding/FormStepper/FormStepper.tsx
index 3c4e9608..ed09ab8e 100644
--- a/src/pages/ValidatorOnboarding/FormStepper/FormStepper.tsx
+++ b/src/pages/ValidatorOnboarding/FormStepper/FormStepper.tsx
@@ -1,11 +1,10 @@
 import { Stepper, Step } from 'react-form-stepper'
 
 import './FormStepper.css'
+import { useDispatch } from 'react-redux'
 
-type FormStepperProps = {
-  activeStep: number
-  changeActiveStep: (step: number) => void
-}
+import { setActiveStep } from '../../../redux/ValidatorOnboarding/slice'
+import './FormStepper.css'
 
 const steps = [
   { label: 'Overview', subtitle: 'Get Started' },
@@ -17,7 +16,13 @@ const steps = [
   { label: 'Activation', subtitle: 'Complete Setup' },
 ]
 
-const FormStepper = ({ activeStep, changeActiveStep }: FormStepperProps) => {
+type FormStepperProps = {
+  activeStep: number
+}
+
+const FormStepper = ({ activeStep }: FormStepperProps) => {
+  const dispatch = useDispatch()
+
   return (
     <Stepper
       activeStep={activeStep}
@@ -37,7 +42,7 @@ const FormStepper = ({ activeStep, changeActiveStep }: FormStepperProps) => {
           key={index}
           label={step.label}
           className="custom-step"
-          onClick={() => changeActiveStep(index)}
+          onClick={() => dispatch(setActiveStep(index))}
           completed={activeStep > index - 1}
           data-subtitle={step.subtitle}
           data-step={step.label}
diff --git a/src/pages/ValidatorOnboarding/KeyGeneration/ConfirmRecoveryPhrase/AutocompleteInput.tsx b/src/pages/ValidatorOnboarding/KeyGeneration/ConfirmRecoveryPhrase/AutocompleteInput.tsx
index d655b6dc..b1595c07 100644
--- a/src/pages/ValidatorOnboarding/KeyGeneration/ConfirmRecoveryPhrase/AutocompleteInput.tsx
+++ b/src/pages/ValidatorOnboarding/KeyGeneration/ConfirmRecoveryPhrase/AutocompleteInput.tsx
@@ -5,7 +5,6 @@ import wordlist from 'web-bip39/wordlists/english'
 import { RootState } from '../../../../redux/store'
 import {
   setIsCopyPastedPhrase,
-  setMnemonic,
   setValidWords,
   setWord,
 } from '../../../../redux/ValidatorOnboarding/KeyGeneration/slice'
@@ -18,9 +17,9 @@ type AutocompleteInputProps = {
 const AutocompleteInput = ({ index }: AutocompleteInputProps) => {
   const [suggestions, setSuggestions] = useState<string[]>([])
   const [isFocused, setIsFocused] = useState(false)
-  const word = useSelector((state: RootState) => state.keyGeneration.words[index])
+  const word = useSelector((state: RootState) => state.keyGeneration.mnemonic[index])
   const isValidWord = useSelector((state: RootState) => state.keyGeneration.validWords[index])
-  const validWords = useSelector((state: RootState) => state.keyGeneration.validWords)
+  const { validWords, generatedMnemonic } = useSelector((state: RootState) => state.keyGeneration)
   const dispatch = useDispatch()
 
   useEffect(() => {
@@ -32,39 +31,47 @@ const AutocompleteInput = ({ index }: AutocompleteInputProps) => {
   }
 
   const handleInputChange = (e: React.ChangeEvent<HTMLInputElement>) => {
+    const { value } = e.target
+    const newMnemonic = value.trim().split(' ')
+    const newMnemonicLength = newMnemonic.length
+    let newValidWords = [...validWords]
+
     if (!isFocused) {
       handleInputFocus()
     }
 
-    const value = e.target.value
-    const mnemonic = value.trim().split(' ').slice(0, 24)
-    const mnemonicLength = mnemonic.length
-    let newValidWords = [...validWords]
-
-    if (mnemonicLength === 1) {
-      dispatch(setWord({ index, word: value }))
-
-      newValidWords[index] = wordlist.includes(value) || getNewSuggestions(value).length > 0
-    } else if (mnemonicLength === 24) {
-      dispatch(setMnemonic(mnemonic))
-      dispatch(setIsCopyPastedPhrase(true))
-
-      mnemonic.forEach((m, i) => {
-        newValidWords[i] = wordlist.includes(m)
-      })
-    } else {
-      for (let i = index; i < mnemonicLength + index; i++) {
-        const mnemonicWord = mnemonic.shift() || ''
-        dispatch(setWord({ index: i, word: mnemonicWord }))
-        newValidWords[i] = wordlist.includes(mnemonicWord)
-      }
-
-      dispatch(setIsCopyPastedPhrase(true))
+    switch (newMnemonicLength) {
+      case 1:
+        updateWord(index, value, newValidWords)
+        break
+      case 24:
+        dispatch(setIsCopyPastedPhrase(true))
+        updateMultipleWords(newMnemonic, newValidWords)
+        break
+      default:
+        const endIndex = Math.min(newMnemonicLength + index, 24)
+        const partialMnemonic = newMnemonic.slice(0, endIndex - index)
+        dispatch(setIsCopyPastedPhrase(true))
+        updateMultipleWords(partialMnemonic, newValidWords, index)
+        break
     }
 
     dispatch(setValidWords(newValidWords))
   }
 
+  const updateWord = (idx: number, word: string, validWords: boolean[]) => {
+    dispatch(setWord({ index: idx, word }))
+    validWords[idx] = generatedMnemonic[idx] === word || generatedMnemonic[idx].startsWith(word)
+  }
+
+  const updateMultipleWords = (words: string[], validWords: boolean[], startIndex: number = 0) => {
+    words.forEach((word, idx) => {
+      const actualIdx = startIndex + idx
+      dispatch(setWord({ index: actualIdx, word }))
+      validWords[actualIdx] = generatedMnemonic[actualIdx] === word
+    })
+  }
+
   const handleSuggestionClick = (e: React.MouseEvent, suggestion: string) => {
     e.preventDefault()
 
@@ -72,7 +79,7 @@ const AutocompleteInput = ({ index }: AutocompleteInputProps) => {
     dispatch(setWord({ index, word: suggestion }))
 
     let newValidWords = [...validWords]
-    newValidWords[index] = wordlist.includes(suggestion)
+    newValidWords[index] = generatedMnemonic[index] === suggestion
     dispatch(setValidWords(newValidWords))
   }
 
@@ -84,7 +91,7 @@ const AutocompleteInput = ({ index }: AutocompleteInputProps) => {
     setIsFocused(false)
 
     let newValidWords = [...validWords]
-    newValidWords[index] = wordlist.includes(word)
+    newValidWords[index] = generatedMnemonic[index] === word
     dispatch(setValidWords(newValidWords))
   }
 
diff --git a/src/pages/ValidatorOnboarding/KeyGeneration/KeyGeneration.tsx b/src/pages/ValidatorOnboarding/KeyGeneration/KeyGeneration.tsx
index 8c672ccf..fe7e0776 100644
--- a/src/pages/ValidatorOnboarding/KeyGeneration/KeyGeneration.tsx
+++ b/src/pages/ValidatorOnboarding/KeyGeneration/KeyGeneration.tsx
@@ -1,20 +1,21 @@
 import { Stack, YStack } from 'tamagui'
 import { Text } from '@status-im/components'
-import { useState } from 'react'
+import { useSelector } from 'react-redux'
 
 import KeyGenerationHeader from './KeyGenerationHeader/KeyGenerationHeader'
 import RecoveryMechanism from './RecoveryMechanism/RecoveryMechanism'
 import KeystoreFiles from './KeystoreFiles'
 import RecoveryPhrase from './RecoveryPhrase'
-import { BOTH_KEY_AND_RECOVERY, KEYSTORE_FILES, RECOVERY_PHRASE } from '../../../constants'
 import ConfirmRecoveryPhrase from './ConfirmRecoveryPhrase/ConfirmRecoveryPhrase'
+import { BOTH_KEY_AND_RECOVERY, KEYSTORE_FILES, RECOVERY_PHRASE } from '../../../constants'
+import { RootState } from '../../../redux/store'
 
 type KeyGenerationProps = {
   isConfirmPhraseStage: boolean
 }
 
 const KeyGeneration = ({ isConfirmPhraseStage }: KeyGenerationProps) => {
-  const [recoveryMechanism, setRecoveryMechanism] = useState(KEYSTORE_FILES)
+  const { recoveryMechanism } = useSelector((state: RootState) => state.keyGeneration)
 
   const isKeystoreFiles =
     recoveryMechanism === KEYSTORE_FILES || recoveryMechanism === BOTH_KEY_AND_RECOVERY
@@ -22,20 +23,13 @@ const KeyGeneration = ({ isConfirmPhraseStage }: KeyGenerationProps) => {
   const isRecoveryPhrase =
     recoveryMechanism === RECOVERY_PHRASE || recoveryMechanism === BOTH_KEY_AND_RECOVERY
 
-  const handleRecMechanismChange = (value: string) => {
-    setRecoveryMechanism(value)
-  }
-
   return (
     <YStack space={'$2'} style={{ width: '100%', padding: '16px 32px', alignItems: 'start' }}>
       {isConfirmPhraseStage && <ConfirmRecoveryPhrase />}
       {isConfirmPhraseStage === false && (
         <>
           <KeyGenerationHeader />
-          <RecoveryMechanism
-            recoveryMechanism={recoveryMechanism}
-            handleRecMechanismChange={handleRecMechanismChange}
-          />
+          <RecoveryMechanism recoveryMechanism={recoveryMechanism} />
           <Stack style={{ margin: '30px 0' }}>
             <Text size={27} weight={'semibold'}>
               4 Validators
diff --git a/src/pages/ValidatorOnboarding/KeyGeneration/KeyGenerationHeader/KeyGenerationHeader.tsx b/src/pages/ValidatorOnboarding/KeyGeneration/KeyGenerationHeader/KeyGenerationHeader.tsx
index da062939..9d10ad84 100644
--- a/src/pages/ValidatorOnboarding/KeyGeneration/KeyGenerationHeader/KeyGenerationHeader.tsx
+++ b/src/pages/ValidatorOnboarding/KeyGeneration/KeyGenerationHeader/KeyGenerationHeader.tsx
@@ -5,7 +5,7 @@ import KeyGenerationTitle from '../KeyGenerationTitle'
 
 const KeyGenerationHeader = () => {
   return (
-    <XStack style={{ width: '100%', alignItems: 'center', justifyContent: 'space-between' }}>
+    <XStack style={{ width: '100%', justifyContent: 'space-between' }}>
       <KeyGenerationTitle />
       <XStack space={'$2'}>
         <KeyGenerationSyncCard
diff --git a/src/pages/ValidatorOnboarding/KeyGeneration/KeyGenerationHeader/KeyGenerationSyncCard.tsx b/src/pages/ValidatorOnboarding/KeyGeneration/KeyGenerationHeader/KeyGenerationSyncCard.tsx
index 32151617..c9a0f7fa 100644
--- a/src/pages/ValidatorOnboarding/KeyGeneration/KeyGenerationHeader/KeyGenerationSyncCard.tsx
+++ b/src/pages/ValidatorOnboarding/KeyGeneration/KeyGenerationHeader/KeyGenerationSyncCard.tsx
@@ -1,6 +1,7 @@
 import { Stack, XStack, YStack } from 'tamagui'
 import { ClearIcon } from '@status-im/icons'
 import { Text } from '@status-im/components'
+import { useState } from 'react'
 
 import StandardGauge from '../../../../components/Charts/StandardGauge'
 import BorderBox from '../../../../components/General/BorderBox'
@@ -14,6 +15,16 @@ type KeyGenerationSyncCardProps = {
 }
 
 const KeyGenerationSyncCard = ({ synced, total, title, color }: KeyGenerationSyncCardProps) => {
+  const [isOpen, setIsOpen] = useState(true)
+
+  const closeCardHanlder = () => {
+    setIsOpen(false)
+  }
+
+  if (isOpen === false) {
+    return null
+  }
+
   return (
     <BorderBox style={{ borderRadius: '10.1px', borderWidth: '0.5px' }}>
       <XStack space={'$2'} alignItems="center">
@@ -48,7 +59,12 @@ const KeyGenerationSyncCard = ({ synced, total, title, color }: KeyGenerationSyn
             {formatNumberForGauge(synced)} / {formatNumberForGauge(total)}
           </Text>
         </YStack>
-        <ClearIcon size={20} color="#A1ABBD" />
+        <ClearIcon
+          size={20}
+          color="#A1ABBD"
+          onClick={closeCardHanlder}
+          style={{ cursor: 'pointer' }}
+        />
       </XStack>
     </BorderBox>
   )
diff --git a/src/pages/ValidatorOnboarding/KeyGeneration/KeystoreFiles.tsx b/src/pages/ValidatorOnboarding/KeyGeneration/KeystoreFiles.tsx
index 0ca60c66..1fb44a9d 100644
--- a/src/pages/ValidatorOnboarding/KeyGeneration/KeystoreFiles.tsx
+++ b/src/pages/ValidatorOnboarding/KeyGeneration/KeystoreFiles.tsx
@@ -6,26 +6,49 @@ import { useState } from 'react'
 const KeystoreFiles = () => {
   const [encryptedPassword, setEncryptedPassword] = useState('')
   const [confirmEncryptedPassword, setConfirmEncryptedPassword] = useState('')
+  const [encryptedPasswordError, setEncryptedPasswordError] = useState(false)
+  const [confirmEncryptedPasswordError, setConfirmEncryptedPasswordError] = useState(false)
+  const [displayEncryptedPassword, setDisplayEncryptedPassword] = useState('')
+  const [displayConfirmEncryptedPassword, setDisplayConfirmEncryptedPassword] = useState('')
 
-  const generateKeystoreFilesHandler = () => {}
+  const generateKeystoreFilesHandler = () => {
+    if (
+      encryptedPassword !== confirmEncryptedPassword ||
+      encryptedPassword === '' ||
+      confirmEncryptedPassword === ''
+    ) {
+      setEncryptedPasswordError(true)
+      return setConfirmEncryptedPasswordError(true)
+    }
 
-  const changeEncryptedPasswordHandler = (value: string) => {
-    setEncryptedPassword(value)
+    setEncryptedPasswordError(false)
+    setConfirmEncryptedPasswordError(false)
   }
 
-  const changeConfirmEncryptedPasswordHandler = (value: string) => {
-    setConfirmEncryptedPassword(value)
+  const changeEncryptedPasswordHandler = (e: any) => {
+    const password = e.target.value
+    setEncryptedPassword(password)
+    setDisplayEncryptedPassword(getHidedPassword(password.length))
   }
 
-  const clearEncryptedPasswordHandler = () => {
-    setEncryptedPassword('')
+  const changeConfirmEncryptedPasswordHandler = (e: any) => {
+    const password = e.target.value
+    setConfirmEncryptedPassword(password)
+    setDisplayConfirmEncryptedPassword(getHidedPassword(password.length))
   }
 
-  const clearConfirmEncryptedPasswordHandler = () => {
-    setConfirmEncryptedPassword('')
+  const downloadKeyFilesHandler = () => {
+    const element = document.createElement('a')
+    const file = new Blob([''], { type: 'text/plain' })
+    element.href = URL.createObjectURL(file)
+    element.download = 'keystore_files.txt'
+    document.body.appendChild(element)
+    element.click()
   }
 
-  const downloadKeyFilesHandler = () => {}
+  const getHidedPassword = (passwordLength: number) => {
+    return '*'.repeat(passwordLength)
+  }
 
   return (
     <YStack space={'$4'}>
@@ -42,11 +65,12 @@ const KeystoreFiles = () => {
                   size={16}
                   color="#A1ABBD"
                   style={{ cursor: 'pointer' }}
-                  onClick={clearEncryptedPasswordHandler}
+                  onClick={() => setEncryptedPassword('')}
                 />
               }
-              value={encryptedPassword}
-              onChangeText={changeEncryptedPasswordHandler}
+              error={encryptedPasswordError}
+              value={displayEncryptedPassword}
+              onChange={changeEncryptedPasswordHandler}
             />
           </YStack>
           <YStack space={'$2'}>
@@ -60,11 +84,12 @@ const KeystoreFiles = () => {
                   size={16}
                   color="#A1ABBD"
                   style={{ cursor: 'pointer' }}
-                  onClick={clearConfirmEncryptedPasswordHandler}
+                  onClick={() => setConfirmEncryptedPassword('')}
                 />
               }
-              value={confirmEncryptedPassword}
-              onChangeText={changeConfirmEncryptedPasswordHandler}
+              error={confirmEncryptedPasswordError}
+              value={displayConfirmEncryptedPassword}
+              onChange={changeConfirmEncryptedPasswordHandler}
             />
           </YStack>
         </YStack>
diff --git a/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryMechanism/RecoveryMechanism.stories.ts b/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryMechanism/RecoveryMechanism.stories.tsx
similarity index 81%
rename from src/pages/ValidatorOnboarding/KeyGeneration/RecoveryMechanism/RecoveryMechanism.stories.ts
rename to src/pages/ValidatorOnboarding/KeyGeneration/RecoveryMechanism/RecoveryMechanism.stories.tsx
index 5b2fbb60..faf7173d 100644
--- a/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryMechanism/RecoveryMechanism.stories.ts
+++ b/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryMechanism/RecoveryMechanism.stories.tsx
@@ -10,6 +10,13 @@ const meta = {
     layout: 'centered',
   },
   tags: ['autodocs'],
+  argTypes: {
+    recoveryMechanism: {
+      options: [RECOVERY_PHRASE, KEYSTORE_FILES, BOTH_KEY_AND_RECOVERY],
+      control: { type: 'radio' },
+      defaultValue: KEYSTORE_FILES,
+    },
+  },
 } satisfies Meta<typeof RecoveryMechanism>
 
 export default meta
@@ -18,27 +25,23 @@ type Story = StoryObj<typeof meta>
 export const KeystoreFiles: Story = {
   args: {
     recoveryMechanism: KEYSTORE_FILES,
-    handleRecMechanismChange: () => {},
   },
 }
 
 export const RecoveryPhrase: Story = {
   args: {
     recoveryMechanism: RECOVERY_PHRASE,
-    handleRecMechanismChange: () => {},
   },
 }
 
 export const BothKeystoreAndRecovery: Story = {
   args: {
     recoveryMechanism: BOTH_KEY_AND_RECOVERY,
-    handleRecMechanismChange: () => {},
   },
 }
 
 export const WithoutRecMechanism: Story = {
   args: {
     recoveryMechanism: '',
-    handleRecMechanismChange: () => {},
   },
 }
diff --git a/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryMechanism/RecoveryMechanism.tsx b/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryMechanism/RecoveryMechanism.tsx
index fd768bb4..84a49253 100644
--- a/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryMechanism/RecoveryMechanism.tsx
+++ b/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryMechanism/RecoveryMechanism.tsx
@@ -6,15 +6,11 @@ import { BOTH_KEY_AND_RECOVERY, KEYSTORE_FILES, RECOVERY_PHRASE } from '../../..
 
 type RecoveryMechanismProps = {
   recoveryMechanism: string
-  handleRecMechanismChange: (value: string) => void
 }
 
 const cards = [RECOVERY_PHRASE, KEYSTORE_FILES, BOTH_KEY_AND_RECOVERY]
 
-const RecoveryMechanism = ({
-  recoveryMechanism,
-  handleRecMechanismChange,
-}: RecoveryMechanismProps) => {
+const RecoveryMechanism = ({ recoveryMechanism }: RecoveryMechanismProps) => {
   return (
     <YStack style={{ width: '100%' }}>
       <Text size={19} weight={'semibold'}>
@@ -22,12 +18,7 @@ const RecoveryMechanism = ({
       </Text>
       <XStack space={'$4'} style={{ justifyContent: 'space-between', marginTop: '40px' }}>
         {cards.map(value => (
-          <RecoveryMechanismCard
-            key={value}
-            value={value}
-            recoveryMechanism={recoveryMechanism}
-            handleRecMechanismChange={handleRecMechanismChange}
-          />
+          <RecoveryMechanismCard key={value} value={value} recoveryMechanism={recoveryMechanism} />
         ))}
       </XStack>
     </YStack>
diff --git a/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryMechanism/RecoveryMechanismCard.stories.ts b/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryMechanism/RecoveryMechanismCard.stories.ts
index 06f87741..85c512c5 100644
--- a/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryMechanism/RecoveryMechanismCard.stories.ts
+++ b/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryMechanism/RecoveryMechanismCard.stories.ts
@@ -1,7 +1,7 @@
 import type { Meta, StoryObj } from '@storybook/react'
 
 import RecoveryMechanismCard from './RecoveryMechanismCard'
-import { KEYSTORE_FILES } from '../../../../constants'
+import { BOTH_KEY_AND_RECOVERY, KEYSTORE_FILES, RECOVERY_PHRASE } from '../../../../constants'
 
 const meta = {
   title: 'ValidatorOnboarding/RecoveryMechanismCard',
@@ -15,11 +15,24 @@ const meta = {
 export default meta
 type Story = StoryObj<typeof meta>
 
-export const Selected: Story = {
+export const KeystoreFiles: Story = {
   args: {
     value: KEYSTORE_FILES,
     recoveryMechanism: KEYSTORE_FILES,
-    handleRecMechanismChange: () => {},
+  },
+}
+
+export const RecoveryPhrase: Story = {
+  args: {
+    value: RECOVERY_PHRASE,
+    recoveryMechanism: RECOVERY_PHRASE,
+  },
+}
+
+export const BothKeyAndRecovery: Story = {
+  args: {
+    value: BOTH_KEY_AND_RECOVERY,
+    recoveryMechanism: BOTH_KEY_AND_RECOVERY,
   },
 }
 
@@ -27,7 +40,6 @@ export const NotSelected: Story = {
   args: {
     value: KEYSTORE_FILES,
     recoveryMechanism: '',
-    handleRecMechanismChange: () => {},
   },
 }
 
@@ -35,6 +47,5 @@ export const WithoutValue: Story = {
   args: {
     value: '',
     recoveryMechanism: KEYSTORE_FILES,
-    handleRecMechanismChange: () => {},
   },
 }
diff --git a/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryMechanism/RecoveryMechanismCard.tsx b/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryMechanism/RecoveryMechanismCard.tsx
index 4b5098bd..62235436 100644
--- a/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryMechanism/RecoveryMechanismCard.tsx
+++ b/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryMechanism/RecoveryMechanismCard.tsx
@@ -1,16 +1,20 @@
 import { Text } from '@status-im/components'
+import { useDispatch } from 'react-redux'
+
+import { setRecoveryMechanism } from '../../../../redux/ValidatorOnboarding/KeyGeneration/slice'
 
 type RecoveryMechanismProps = {
   value: string
   recoveryMechanism: string
-  handleRecMechanismChange: (value: string) => void
 }
 
-const RecoveryMechanismCard = ({
-  value,
-  recoveryMechanism,
-  handleRecMechanismChange,
-}: RecoveryMechanismProps) => {
+const RecoveryMechanismCard = ({ value, recoveryMechanism }: RecoveryMechanismProps) => {
+  const dispatch = useDispatch()
+
+  const handleRecMechanismChange = () => {
+    dispatch(setRecoveryMechanism(value))
+  }
+
   return (
     <div
       style={{
@@ -22,7 +26,7 @@ const RecoveryMechanismCard = ({
         width: '100%',
         height: '140px',
       }}
-      onClick={() => handleRecMechanismChange(value)}
+      onClick={handleRecMechanismChange}
     >
       <Text size={15} weight={'semibold'}>
         {value}
diff --git a/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryPhrase.tsx b/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryPhrase.tsx
index 10e0a84f..a80b74da 100644
--- a/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryPhrase.tsx
+++ b/src/pages/ValidatorOnboarding/KeyGeneration/RecoveryPhrase.tsx
@@ -1,7 +1,13 @@
 import { Stack, XStack, YStack } from 'tamagui'
 import { Button, InformationBox, Text } from '@status-im/components'
 import { CloseCircleIcon } from '@status-im/icons'
-import { useState } from 'react'
+import { useEffect, useState } from 'react'
+import { generateMnemonic } from 'web-bip39'
+import wordlist from 'web-bip39/wordlists/english'
+import { useDispatch, useSelector } from 'react-redux'
+
+import { RootState } from '../../../redux/store'
+import { setGeneratedMnemonic } from '../../../redux/ValidatorOnboarding/KeyGeneration/slice'
 
 type RecoveryPhraseProps = {
   isKeystoreFiles: boolean
@@ -9,11 +15,31 @@ type RecoveryPhraseProps = {
 
 const RecoveryPhrase = ({ isKeystoreFiles }: RecoveryPhraseProps) => {
   const [isReveal, setIsReveal] = useState(false)
+  const { generatedMnemonic } = useSelector((state: RootState) => state.keyGeneration)
+  const dispatch = useDispatch()
+
+  useEffect(() => {
+    getMnemonic()
+  }, [])
+
+  const getMnemonic = async () => {
+    const mnemonic = await generateMnemonic(wordlist, 256)
+    dispatch(setGeneratedMnemonic(mnemonic.split(' ')))
+  }
 
   const revealHandler = () => {
     setIsReveal(state => !state)
   }
 
+  const copyRecoveryPhraseHandler = () => {
+    if (isKeystoreFiles) {
+      return
+    }
+
+    const text = generatedMnemonic.join(' ')
+    navigator.clipboard.writeText(text)
+  }
+
   return (
     <YStack space={'$4'} style={{ width: '100%', marginTop: isKeystoreFiles ? '20px' : '0px' }}>
       <Stack
@@ -23,30 +49,32 @@ const RecoveryPhrase = ({ isKeystoreFiles }: RecoveryPhraseProps) => {
           padding: '28px 18px',
           backgroundColor: '#f4f6fe',
           width: '100%',
-          height: '176px',
         }}
       >
-        <YStack space={'$2'} style={{ filter: `blur(${isReveal ? '0px' : '4px'})` }}>
-          <XStack space={'$6'}>
-            <Text size={19} weight={'semibold'}>
-              this is your secret recovery phrase for the validator
-            </Text>
-            <Text size={19} weight={'semibold'}>
-              this is your secret recovery phrase for the validator
-            </Text>
-          </XStack>
-          <XStack space={'$6'}>
-            <Text size={19} weight={'semibold'}>
-              this is your secret recovery phrase for the validator
-            </Text>
-            <Text size={19} weight={'semibold'}>
-              this is your secret recovery phrase for the validator
-            </Text>
+        <YStack
+          space={'$2'}
+          style={{ filter: `blur(${isReveal ? '0px' : '4px'})`, cursor: 'pointer' }}
+          onClick={copyRecoveryPhraseHandler}
+        >
+          <XStack
+            style={{
+              display: 'grid',
+              gridTemplateColumns: 'repeat(6, 1fr)',
+              gap: '5px 0px',
+            }}
+          >
+            {generatedMnemonic.map((word, index) => (
+              <Text key={index} size={19} weight={'semibold'}>
+                {word}
+              </Text>
+            ))}
           </XStack>
         </YStack>
       </Stack>
       <Stack style={{ width: 'fit-content', marginBottom: '12px' }}>
-        <Button onPress={revealHandler}>Reveal Recovery Phrase</Button>
+        <Button onPress={revealHandler}>
+          {isReveal ? 'Hide Recovery Phrase' : 'Reveal Recovery Phrase'}
+        </Button>
       </Stack>
       <InformationBox
         message="Write down and keep your Secret Recovery Phrase in a secure place. Make sure no one is looking at your screen."
diff --git a/src/pages/ValidatorOnboarding/ValidatorOnboarding.tsx b/src/pages/ValidatorOnboarding/ValidatorOnboarding.tsx
index 55e3fd61..6b735603 100644
--- a/src/pages/ValidatorOnboarding/ValidatorOnboarding.tsx
+++ b/src/pages/ValidatorOnboarding/ValidatorOnboarding.tsx
@@ -3,6 +3,7 @@ import { useNavigate } from 'react-router-dom'
 import { useState } from 'react'
 import { useDispatch, useSelector } from 'react-redux'
 import wordlist from 'web-bip39/wordlists/english'
+ц
 
 import {
   setIsCopyPastedPhrase,
@@ -21,15 +22,24 @@ import Advisories from './Advisories/Advisories'
 import ValidatorSetup from './ValidatorSetup/ValidatorSetup/ValidatorSetup'
 import ValidatorSetupInstall from './ValidatorSetup/ValidatorInstalling/ValidatorInstall'
 import ContinueButton from './ContinueButton'
+
+ 
 import ActivationValidatorSetup from './ValidatorSetup/ValidatorActivation/ActivationValidatorSetup'
+import './layoutGradient.css'
+ 
+ 
 import Deposit from './Deposit/Deposit'
 import { setIsTransactionConfirmation } from '../../redux/ValidatorOnboarding/Deposit/slice'
 import './layoutGradient.css'
 
 const ValidatorOnboarding = () => {
-  const [activeStep, setActiveStep] = useState(0)
+  const { activeStep, subStepValidatorSetup } = useSelector(
+    (state: RootState) => state.validatorOnboarding,
+  )
+  const { isConfirmPhraseStage } = useSelector((state: RootState) => state.keyGeneration)
+ 
   const [isConfirmPhraseStage, setIsConfirmPhraseStage] = useState(false)
-  const [subStepValidatorSetup, setSubStepValidatorSetup] = useState(0)
+  
 
   const [subStepAdvisories, setSubStepAdvisories] = useState(0)
 
@@ -101,7 +111,7 @@ const ValidatorOnboarding = () => {
       setIsConfirmPhraseStage(false)
     }
   }
-
+ 
   return (
     <div className="gradient-wrapper">
       <YStack
@@ -118,7 +128,7 @@ const ValidatorOnboarding = () => {
           titleSize={19}
           subtitle="Earn Rewards for securing the Ethereum Network"
         />
-        <FormStepper activeStep={activeStep} changeActiveStep={changeActiveStep} />
+        <FormStepper activeStep={activeStep} />
         <ValidatorBoxWrapper>
           {activeStep === 0 && <Overview />}
           {activeStep === 1 && (
@@ -156,13 +166,7 @@ const ValidatorOnboarding = () => {
             />
           )}
         </ValidatorBoxWrapper>
-        <ContinueButton
-          activeStep={activeStep}
-          continueHandler={continueHandler}
-          isConfirmPhraseStage={isConfirmPhraseStage}
-          subStepValidatorSetup={subStepValidatorSetup}
-          isValidatorSet={isValidatorSet}
-        />
+        <ContinueButton />
       </YStack>
     </div>
   )
diff --git a/src/redux/ValidatorOnboarding/KeyGeneration/slice.ts b/src/redux/ValidatorOnboarding/KeyGeneration/slice.ts
index 158dc368..94e1c5d3 100644
--- a/src/redux/ValidatorOnboarding/KeyGeneration/slice.ts
+++ b/src/redux/ValidatorOnboarding/KeyGeneration/slice.ts
@@ -1,9 +1,14 @@
 import { createSlice, PayloadAction } from '@reduxjs/toolkit'
 
+import { KEYSTORE_FILES } from '../../../constants'
+
 type KeyGenerationState = {
-  words: string[]
+  mnemonic: string[]
   isCopyPastedPhrase: boolean
   validWords: boolean[]
+  generatedMnemonic: string[]
+  isConfirmPhraseStage: boolean
+  recoveryMechanism: string
 }
 
 type wordProps = {
@@ -12,9 +17,12 @@ type wordProps = {
 }
 
 const initialState: KeyGenerationState = {
-  words: Array(24).fill(''),
+  mnemonic: Array(24).fill(''),
   isCopyPastedPhrase: false,
   validWords: Array(24).fill(true),
+  generatedMnemonic: Array(24).fill(''),
+  isConfirmPhraseStage: false,
+  recoveryMechanism: KEYSTORE_FILES,
 }
 
 const keyGenerationSlice = createSlice({
@@ -22,12 +30,9 @@ const keyGenerationSlice = createSlice({
   initialState,
   reducers: {
     setWord: (state, action: PayloadAction<wordProps>) => {
-      const newWords = [...state.words]
-      newWords[action.payload.index] = action.payload.word
-      return { ...state, words: newWords }
-    },
-    setMnemonic: (state, action: PayloadAction<string[]>) => {
-      state.words = action.payload
+      const newMnemonic = [...state.mnemonic]
+      newMnemonic[action.payload.index] = action.payload.word
+      state.mnemonic = newMnemonic
     },
     setIsCopyPastedPhrase: (state, action: PayloadAction<boolean>) => {
       state.isCopyPastedPhrase = action.payload
@@ -35,10 +40,25 @@ const keyGenerationSlice = createSlice({
     setValidWords: (state, action: PayloadAction<boolean[]>) => {
       state.validWords = action.payload
     },
+    setGeneratedMnemonic: (state, action: PayloadAction<string[]>) => {
+      state.generatedMnemonic = action.payload
+    },
+    setIsConfirmPhraseStage: (state, action: PayloadAction<boolean>) => {
+      state.isConfirmPhraseStage = action.payload
+    },
+    setRecoveryMechanism: (state, action: PayloadAction<string>) => {
+      state.recoveryMechanism = action.payload
+    },
   },
 })
 
-export const { setWord, setMnemonic, setIsCopyPastedPhrase, setValidWords } =
-  keyGenerationSlice.actions
+export const {
+  setWord,
+  setIsCopyPastedPhrase,
+  setValidWords,
+  setGeneratedMnemonic,
+  setIsConfirmPhraseStage,
+  setRecoveryMechanism,
+} = keyGenerationSlice.actions
 
 export default keyGenerationSlice.reducer
diff --git a/src/redux/ValidatorOnboarding/slice.ts b/src/redux/ValidatorOnboarding/slice.ts
new file mode 100644
index 00000000..fd2d0b52
--- /dev/null
+++ b/src/redux/ValidatorOnboarding/slice.ts
@@ -0,0 +1,28 @@
+import { createSlice, PayloadAction } from '@reduxjs/toolkit'
+
+type ValidatorOnboardingState = {
+  activeStep: number
+  subStepValidatorSetup: number
+}
+
+const initialState: ValidatorOnboardingState = {
+  activeStep: 0,
+  subStepValidatorSetup: 0,
+}
+
+const validatorOnboardingSlice = createSlice({
+  name: 'validatorOnboarding',
+  initialState,
+  reducers: {
+    setActiveStep(state, action: PayloadAction<number>) {
+      state.activeStep = action.payload
+    },
+    setSubStepValidatorSetup(state, action: PayloadAction<number>) {
+      state.subStepValidatorSetup = action.payload
+    },
+  },
+})
+
+export const { setActiveStep, setSubStepValidatorSetup } = validatorOnboardingSlice.actions
+
+export default validatorOnboardingSlice.reducer
diff --git a/src/redux/store.ts b/src/redux/store.ts
index 06218390..fad839dc 100644
--- a/src/redux/store.ts
+++ b/src/redux/store.ts
@@ -6,6 +6,7 @@ import pinnedMessageReducer from './PinnedMessage/slice'
 import execClientReducer from './ValidatorOnboarding/ValidatorSetup/slice'
 import keyGenerationReducer from './ValidatorOnboarding/KeyGeneration/slice'
 import depositReducer from './ValidatorOnboarding/Deposit/slice'
+import validatorOnboardingReducer from './ValidatorOnboarding/slice'
 
 const store = configureStore({
   reducer: {
@@ -15,6 +16,7 @@ const store = configureStore({
     theme: themeReducer,
     keyGeneration: keyGenerationReducer,
     deposit: depositReducer,
+    validatorOnboarding: validatorOnboardingReducer,
   },
 })