diff --git a/lib/entities/encrypt.dart b/lib/entities/encrypt.dart
index cf5bec168..03399a5f9 100644
--- a/lib/entities/encrypt.dart
+++ b/lib/entities/encrypt.dart
@@ -1,3 +1,5 @@
+import 'dart:convert';
+
 import 'package:encrypt/encrypt.dart';
 // import 'package:password/password.dart';
 import 'package:hash_wallet/.secrets.g.dart' as secrets;
@@ -108,12 +110,28 @@ String? _tryDecrypt({required String source, required String key}) {
   }
 }
 
+// A wallet password is generateKey() output: base64(512-byte key) +
+// base64(8-byte iv) = 696 base64 chars. Validate against that exact shape so a
+// wrong AES key (which could unpad to arbitrary printable bytes) cannot be
+// re-saved as a bogus password. base64.decode round-trips to the exact byte
+// lengths, which is astronomically unlikely for a false PKCS7 hit.
+bool _looksLikeWalletPassword(String s) {
+  if (s.length != 696) return false;
+  try {
+    final key = base64.decode(s.substring(0, s.length - 12));
+    final iv = base64.decode(s.substring(s.length - 12));
+    return key.length == 512 && iv.length == 8;
+  } catch (_) {
+    return false;
+  }
+}
+
 /// Decode a stored wallet password written by a build with rotated secrets.
 /// Returns null when no legacy key fits.
 String? decodeWalletPasswordLegacy({required String password}) {
   for (final key in _legacyWalletPasswordKeys) {
     final decrypted = _tryDecrypt(source: password, key: key);
-    if (decrypted != null) return decrypted;
+    if (decrypted != null && _looksLikeWalletPassword(decrypted)) return decrypted;
   }
   return null;
 }
diff --git a/test/legacy_decode_test.dart b/test/legacy_decode_test.dart
new file mode 100644
index 000000000..8b48bc952
--- /dev/null
+++ b/test/legacy_decode_test.dart
@@ -0,0 +1,74 @@
+import 'dart:convert';
+import 'package:encrypt/encrypt.dart';
+import 'package:flutter_test/flutter_test.dart';
+
+// Mirror of the shipped encode + generateKey (lib/entities/encrypt.dart, cw_core/key.dart)
+String enc(String s, String key) =>
+    Encrypter(AES(Key.fromUtf8(key))).encrypt(s, iv: IV.allZerosOfLength(16)).base64;
+String dec(String s, String key) =>
+    Encrypter(AES(Key.fromUtf8(key))).decrypt64(s, iv: IV.allZerosOfLength(16));
+String generateKey() => Key.fromSecureRandom(512).base64 + IV.fromSecureRandom(8).base64;
+String rnd(int nHexChars) => Key.fromSecureRandom(nHexChars ~/ 2)
+    .bytes.map((b) => b.toRadixString(16).padLeft(2, '0')).join();
+
+// Logic under test (identical to lib/entities/encrypt.dart 1.0.2)
+bool looksLikeWalletPassword(String s) {
+  if (s.length != 696) return false;
+  try {
+    return base64.decode(s.substring(0, s.length - 12)).length == 512 &&
+        base64.decode(s.substring(s.length - 12)).length == 8;
+  } catch (_) { return false; }
+}
+String? tryDecrypt(String source, String key) {
+  try {
+    final d = dec(source, key);
+    return (d.isNotEmpty && d.codeUnits.every((c) => c >= 0x20 && c < 0x7f)) ? d : null;
+  } catch (_) { return null; }
+}
+String? decodePinLegacy(String pin, List<String> keys) {
+  for (final key in keys) {
+    final d = tryDecrypt(pin, key);
+    if (d == null || d.length <= 32) continue;
+    final cand = d.substring(32);
+    if (cand.isNotEmpty && cand.codeUnits.every((c) => c >= 0x30 && c <= 0x39)) return cand;
+  }
+  return null;
+}
+String? decodeWalletLegacy(String pw, List<String> keys) {
+  for (final key in keys) {
+    final d = tryDecrypt(pw, key);
+    if (d != null && looksLikeWalletPassword(d)) return d;
+  }
+  return null;
+}
+
+void main() {
+  test('1.0.0 -> 1.0.2 upgrade recovers PIN and wallet password', () {
+    final vSalt = rnd(32), vKey = rnd(32), vShort = rnd(24), vWsalt = rnd(8);
+    const realPin = '4913';
+    final realPw = generateKey();
+    final storedPin = enc(vSalt + realPin, vKey);
+    final storedPw = enc(realPw, vShort + vWsalt);
+
+    // 1.0.2 legacy lists include the old values among decoys
+    final pinKeys = ['deadbeef' * 4, vKey, 'cafef00d' * 4];
+    final pwKeys = ['00112233445566778899aabb01020304', vShort + vWsalt];
+
+    expect(decodePinLegacy(storedPin, pinKeys), realPin);
+    expect(decodeWalletLegacy(storedPw, pwKeys), realPw);
+  });
+
+  test('never false-accepts when the real key is absent', () {
+    final vSalt = rnd(32), vKey = rnd(32), vShort = rnd(24), vWsalt = rnd(8);
+    final storedPin = enc(vSalt + '271828', vKey);
+    final storedPw = enc(generateKey(), vShort + vWsalt);
+
+    var pinFalse = 0, pwFalse = 0;
+    for (var i = 0; i < 8000; i++) {
+      if (decodePinLegacy(storedPin, [rnd(32)]) != null) pinFalse++;
+      if (decodeWalletLegacy(storedPw, [rnd(24) + rnd(8)]) != null) pwFalse++;
+    }
+    expect(pinFalse, 0, reason: 'PIN false-accepts');
+    expect(pwFalse, 0, reason: 'wallet-password false-accepts');
+  });
+}