diff --git a/api/src/main/java/bisq/api/http/app/HttpApiHeadlessApp.java b/api/src/main/java/bisq/api/http/app/HttpApiHeadlessApp.java
index 3e9a23a3b..d9520e5b8 100644
--- a/api/src/main/java/bisq/api/http/app/HttpApiHeadlessApp.java
+++ b/api/src/main/java/bisq/api/http/app/HttpApiHeadlessApp.java
@@ -29,4 +29,43 @@
  */
 @Slf4j
 class HttpApiHeadlessApp extends BisqHeadlessApp implements UncaughtExceptionHandler {
+
+    @Override
+    protected void setupHandlers() {
+        super.setupHandlers();
+
+        bisqSetup.setRequestWalletPasswordHandler(aesKeyHandler -> {
+            log.info("onRequestWalletPasswordHandler");
+
+            // TODO @bernard listen for users input of pw, create aseKey and call handler
+            // aesKeyHandler.accept(aseKey);
+
+            // here is code from UI
+           /* String password = passwordTextField.getText();
+            checkArgument(password.length() < 500, Res.get("password.tooLong"));
+            KeyCrypterScrypt keyCrypterScrypt = walletsManager.getKeyCrypterScrypt();
+            if (keyCrypterScrypt != null) {
+                busyAnimation.play();
+                deriveStatusLabel.setText(Res.get("password.deriveKey"));
+                ScryptUtil.deriveKeyWithScrypt(keyCrypterScrypt, password, aesKey -> {
+                    if (walletsManager.checkAESKey(aesKey)) {
+                        if (aesKeyHandler != null)
+                            aesKeyHandler.onAesKey(aesKey);
+
+                        hide();
+                    } else {
+                        busyAnimation.stop();
+                        deriveStatusLabel.setText("");
+
+                        UserThread.runAfter(() -> new Popup<>()
+                                .warning(Res.get("password.wrongPw"))
+                                .onClose(this::blurAgain).show(), Transitions.DEFAULT_DURATION, TimeUnit.MILLISECONDS);
+                    }
+                });
+            } else {
+                log.error("wallet.getKeyCrypter() is null, that must not happen.");
+            }
+            */
+        });
+    }
 }
diff --git a/api/src/main/java/bisq/api/http/app/HttpApiMain.java b/api/src/main/java/bisq/api/http/app/HttpApiMain.java
index d8fea6f92..37198ff95 100644
--- a/api/src/main/java/bisq/api/http/app/HttpApiMain.java
+++ b/api/src/main/java/bisq/api/http/app/HttpApiMain.java
@@ -58,10 +58,22 @@ protected AppModule getModule() {
     }
 
     @Override
-    public void onSetupComplete() {
-        log.info("onSetupComplete");
+    public void onInitWallet() {
+        log.info("onInitWallet: We start the http server now");
 
         HttpApiServer httpApiServer = injector.getInstance(HttpApiServer.class);
         httpApiServer.startServer();
     }
+
+    @Override
+    public void onRequestWalletPassword() {
+        log.info("onRequestWalletPassword");
+
+        // TODO @bernard now we need to get users wallet pw
+    }
+
+    @Override
+    public void onSetupComplete() {
+        log.info("onSetupComplete");
+    }
 }
diff --git a/core/src/main/java/bisq/core/app/BisqHeadlessApp.java b/core/src/main/java/bisq/core/app/BisqHeadlessApp.java
index 22c23decc..c77acd6d7 100644
--- a/core/src/main/java/bisq/core/app/BisqHeadlessApp.java
+++ b/core/src/main/java/bisq/core/app/BisqHeadlessApp.java
@@ -43,7 +43,7 @@ public class BisqHeadlessApp implements HeadlessApp {
     @Setter
     private GracefulShutDownHandler gracefulShutDownHandler;
     private boolean shutDownRequested;
-    private BisqSetup bisqSetup;
+    protected BisqSetup bisqSetup;
     private CorruptedDatabaseFilesHandler corruptedDatabaseFilesHandler;
     private TradeManager tradeManager;
 
diff --git a/core/src/main/java/bisq/core/app/BisqSetup.java b/core/src/main/java/bisq/core/app/BisqSetup.java
index a2bcbca7a..43d1a3545 100644
--- a/core/src/main/java/bisq/core/app/BisqSetup.java
+++ b/core/src/main/java/bisq/core/app/BisqSetup.java
@@ -119,6 +119,10 @@ default void onInitWallet() {
             log.info("onInitWallet");
         }
 
+        default void onRequestWalletPassword() {
+            log.info("onRequestWalletPassword");
+        }
+
         void onSetupComplete();
     }
 
@@ -549,6 +553,8 @@ else if (displayTorNetworkSettingsHandler != null)
     private void initWallet() {
         bisqSetupListeners.forEach(BisqSetupListener::onInitWallet);
         Runnable walletPasswordHandler = () -> {
+            log.info("Wallet password required");
+            bisqSetupListeners.forEach(BisqSetupListener::onRequestWalletPassword);
             if (p2pNetworkReady.get())
                 p2PNetworkSetup.setSplashP2PNetworkAnimationVisible(true);
 
@@ -559,6 +565,9 @@ private void initWallet() {
                         if (showFirstPopupIfResyncSPVRequestedHandler != null)
                             showFirstPopupIfResyncSPVRequestedHandler.run();
                     } else {
+                        // TODO no guarantee here that the wallet is really fully initialized
+                        // We would need a new walletInitializedButNotEncrypted state to track
+                        // Usually init is fast and we have our wallet initialized at that state though.
                         walletInitialized.set(true);
                     }
                 });