diff --git a/.changeset/four-dolls-report.md b/.changeset/four-dolls-report.md
new file mode 100644
index 00000000000..96963bafe06
--- /dev/null
+++ b/.changeset/four-dolls-report.md
@@ -0,0 +1,5 @@
+---
+"ledger-live-desktop": minor
+---
+
+Fix LIVE-12571 where some users can't unlock LLD when they have set up a password
diff --git a/apps/ledger-live-desktop/src/renderer/hooks/useRecoverRestoreOnboarding.ts b/apps/ledger-live-desktop/src/renderer/hooks/useRecoverRestoreOnboarding.ts
index 8e2268194dc..d099b857024 100644
--- a/apps/ledger-live-desktop/src/renderer/hooks/useRecoverRestoreOnboarding.ts
+++ b/apps/ledger-live-desktop/src/renderer/hooks/useRecoverRestoreOnboarding.ts
@@ -5,6 +5,7 @@ import { useFeature } from "@ledgerhq/live-common/featureFlags/index";
 import { saveSettings } from "~/renderer/actions/settings";
 import { useDispatch, useSelector } from "react-redux";
 import { useLocation } from "react-router-dom";
+import { isLocked as isLockedSelector } from "~/renderer/reducers/application";
 import { hasCompletedOnboardingSelector } from "~/renderer/reducers/settings";
 import { useCustomPath } from "@ledgerhq/live-common/hooks/recoverFeatureFlag";
 
@@ -13,6 +14,7 @@ const ONBOARDED_VIA_RECOVER_RESTORE_USER_PREFIX = "ONBOARDED_VIA_RECOVER_RESTORE
 export const useRecoverRestoreOnboarding = (seedPathStatus?: string) => {
   const { pathname } = useLocation();
   const dispatch = useDispatch();
+  const isLocked = useSelector(isLockedSelector);
   const recoverServices = useFeature("protectServicesDesktop");
   const recoverStoreId = recoverServices?.params?.protectId ?? "";
   const hasCompletedOnboarding = useSelector(hasCompletedOnboardingSelector);
@@ -29,13 +31,14 @@ export const useRecoverRestoreOnboarding = (seedPathStatus?: string) => {
     const hasCompletedOnboardingViaRestore = status === "true";
 
     setOnboardedViaRecoverRestore(hasCompletedOnboardingViaRestore);
-
-    dispatch(
-      saveSettings({
-        hasCompletedOnboarding: onboardedViaRecoverRestore,
-      }),
-    );
-  }, [dispatch, onboardedViaRecoverRestore, recoverStoreId]);
+    if (!isLocked) {
+      dispatch(
+        saveSettings({
+          hasCompletedOnboarding: onboardedViaRecoverRestore,
+        }),
+      );
+    }
+  }, [dispatch, isLocked, onboardedViaRecoverRestore, recoverStoreId]);
 
   useEffect(() => {
     const userIsOnboardingOrSettingUp =