diff --git a/web/pgadmin/browser/__init__.py b/web/pgadmin/browser/__init__.py
index 4f24552bb..1aeb20a2c 100644
--- a/web/pgadmin/browser/__init__.py
+++ b/web/pgadmin/browser/__init__.py
@@ -55,7 +55,7 @@ from pgadmin.browser.register_browser_preferences import \
 from pgadmin.utils.master_password import validate_master_password, \
     set_masterpass_check_text, cleanup_master_password, get_crypt_key, \
     set_crypt_key, process_masterpass_disabled
-from pgadmin.model import User
+from pgadmin.model import User, db
 from pgadmin.utils.constants import MIMETYPE_APP_JS, PGADMIN_NODE,\
     INTERNAL, KERBEROS, LDAP, QT_DEFAULT_PLACEHOLDER, OAUTH2, WEBSERVER,\
     VW_EDT_DEFAULT_PLACEHOLDER
@@ -786,6 +786,12 @@ def reset_master_password():
     Removes the master password and remove all saved passwords
     This password will be used to encrypt/decrypt saved server passwords
     """
+    if not config.DISABLED_LOCAL_PASSWORD_STORAGE:
+        # This is to set the Desktop user password so it will not ask for
+        # migrate exiting passwords as those are getting cleared
+        keyring.set_password(KEY_RING_SERVICE_NAME,
+                             KEY_RING_DESKTOP_USER.format(
+                                 current_user.username), 'test')
     cleanup_master_password()
     return make_json_response(data=get_crypt_key()[0])
 
@@ -811,6 +817,13 @@ def set_master_password():
             data = json.loads(data)
 
     if not config.DISABLED_LOCAL_PASSWORD_STORAGE:
+        if data.get('password') and \
+                not validate_master_password(data.get('password')):
+            return form_master_password_response(
+                present=False,
+                is_keyring=True,
+                errmsg=gettext("Incorrect master password")
+            )
         from pgadmin.model import Server
         from pgadmin.utils.crypto import decrypt
         desktop_user = current_user
@@ -832,7 +845,9 @@ def set_master_password():
                         # Store the password using OS password manager
                         keyring.set_password(KEY_RING_SERVICE_NAME, name,
                                              password)
-                        setattr(server, 'password', password)
+                        setattr(server, 'password', None)
+
+                db.session.commit()
 
                 # Store the password using OS password manager
                 keyring.set_password(KEY_RING_SERVICE_NAME,
diff --git a/web/pgadmin/static/js/Dialogs/MasterPasswordContent.jsx b/web/pgadmin/static/js/Dialogs/MasterPasswordContent.jsx
index 81d739fb9..a1a479bac 100644
--- a/web/pgadmin/static/js/Dialogs/MasterPasswordContent.jsx
+++ b/web/pgadmin/static/js/Dialogs/MasterPasswordContent.jsx
@@ -67,7 +67,7 @@ export default function MasterPasswordContent({ closeModal, onResetPassowrd, onO
             </span>
             <br />
             <span style={{ fontWeight: 'bold' }}>
-              {gettext('This is required to migrate the existing saved Server password and SSH tunnel password to OS password manager, as pgAdmin 4 will now use the OS password manager in Desktop mode from version 7.2')}
+              {gettext('This is required to migrate the existing saved Server password and SSH tunnel password to OS password manager, as pgAdmin 4 will now use the OS password manager in Desktop mode.')}
             </span>
           </Box>
           <Box marginTop='12px'>
@@ -106,9 +106,9 @@ export default function MasterPasswordContent({ closeModal, onResetPassowrd, onO
             window.open(_url, 'pgadmin_help');
           }} >
           </PgIconButton>
-          {isPWDPresent && !isKeyring &&
+          {isPWDPresent &&
             <DefaultButton data-test="reset-masterpassword" style={{ marginLeft: '0.5rem' }} startIcon={<DeleteForeverIcon />}
-              onClick={() => {onResetPassowrd?.();}} >
+              onClick={() => {onResetPassowrd?.(isKeyring);}} >
               {gettext('Reset Master Password')}
             </DefaultButton>
           }
diff --git a/web/pgadmin/static/js/Dialogs/index.jsx b/web/pgadmin/static/js/Dialogs/index.jsx
index de0bd6e87..f1934089b 100644
--- a/web/pgadmin/static/js/Dialogs/index.jsx
+++ b/web/pgadmin/static/js/Dialogs/index.jsx
@@ -186,7 +186,7 @@ export function showMasterPassword(isPWDPresent, errmsg, masterpass_callback_que
         closeModal={() => {
           onClose();
         }}
-        onResetPassowrd={()=>{
+        onResetPassowrd={(isKeyRing=false)=>{
           Notify.confirm(gettext('Reset Master Password'),
             gettext('This will remove all the saved passwords. This will also remove established connections to '
             + 'the server and you may need to reconnect again. Do you wish to continue?'),
@@ -196,7 +196,9 @@ export function showMasterPassword(isPWDPresent, errmsg, masterpass_callback_que
               api.delete(_url)
                 .then(() => {
                   onClose();
-                  showMasterPassword(false, null, masterpass_callback_queue, cancel_callback);
+                  if(!isKeyRing) {
+                    showMasterPassword(false, null, masterpass_callback_queue, cancel_callback);
+                  }
                 })
                 .catch((err) => {
                   Notify.error(err.message);