diff --git a/app/core/Vault.js b/app/core/Vault.js
index cde50ff38b7..0276ab21614 100644
--- a/app/core/Vault.js
+++ b/app/core/Vault.js
@@ -28,11 +28,15 @@ export const restoreQRKeyring = async () => {
 /**
  * Restores the Ledger keyring if it exists.
  */
-export const restoreLedgerKeyring = async () => {
+export const restoreLedgerKeyring = async (keyring) => {
   const { KeyringController } = Engine.context;
-  const keyring = await getLedgerKeyring();
+
   if (keyring) {
     try {
+      const serializedLedgerKeyring = await keyring.serialize();
+      //This will regenerate a new ledger keyring after `createNewVaultAndRestore` is called
+      (await getLedgerKeyring()).deserialize(serializedLedgerKeyring);
+
       await KeyringController.persistAllKeyrings();
       KeyringController.updateIdentities(await KeyringController.getAccounts());
     } catch (e) {
@@ -98,11 +102,13 @@ export const recreateVaultWithNewPassword = async (
   const hdKeyring = KeyringController.state.keyrings[0];
   const existingAccountCount = hdKeyring.accounts.length;
 
+  const oldLedgerKeyring = await getLedgerKeyring();
+
   // Recreate keyring with password given to this method
   await KeyringController.createNewVaultAndRestore(newPassword, seedPhrase);
 
   await restoreQRKeyring();
-  await restoreLedgerKeyring();
+  await restoreLedgerKeyring(oldLedgerKeyring);
 
   // Create previous accounts again
   for (let i = 0; i < existingAccountCount - 1; i++) {
diff --git a/app/core/Vault.test.ts b/app/core/Vault.test.ts
index 3e51f5c6358..494dfb76339 100644
--- a/app/core/Vault.test.ts
+++ b/app/core/Vault.test.ts
@@ -73,9 +73,17 @@ describe('Vault', () => {
   describe('restoreLedgerKeyring', () => {
     it('should restore ledger keyring if it exists', async () => {
       const { KeyringController } = Engine.context;
-      (getLedgerKeyring as jest.Mock).mockResolvedValue('foo');
-      await restoreLedgerKeyring();
+
+      const mockSerialisedKeyring = jest.fn();
+      const mockDeserializedKeyring = jest.fn();
+      (getLedgerKeyring as jest.Mock).mockResolvedValue({
+        deserialize: mockDeserializedKeyring,
+      });
+      await restoreLedgerKeyring({ serialize: mockSerialisedKeyring });
+
+      expect(mockSerialisedKeyring).toHaveBeenCalled();
       expect(getLedgerKeyring).toHaveBeenCalled();
+      expect(mockDeserializedKeyring).toHaveBeenCalled();
       expect(KeyringController.persistAllKeyrings).toHaveBeenCalled();
       expect(KeyringController.updateIdentities).toHaveBeenCalled();
       expect(KeyringController.getAccounts).toHaveBeenCalled();
@@ -83,7 +91,7 @@ describe('Vault', () => {
 
     it('should not restore ledger keyring if it does not exist', async () => {
       const { KeyringController } = Engine.context;
-      (getLedgerKeyring as jest.Mock).mockResolvedValue('');
+
       await restoreLedgerKeyring();
       expect(KeyringController.persistAllKeyrings).not.toHaveBeenCalled();
       expect(KeyringController.updateIdentities).not.toHaveBeenCalled();
@@ -92,10 +100,16 @@ describe('Vault', () => {
 
     it('should log error if an exception is thrown', async () => {
       const { KeyringController } = Engine.context;
-      (getLedgerKeyring as jest.Mock).mockResolvedValue('foo');
+
+      (getLedgerKeyring as jest.Mock).mockResolvedValue({
+        deserialize: jest.fn(),
+      });
+
       const error = new Error('Test error');
       KeyringController.persistAllKeyrings.mockRejectedValue(error);
-      await restoreLedgerKeyring();
+
+      await restoreLedgerKeyring({ serialize: jest.fn() });
+
       expect(Logger.error).toHaveBeenCalledWith(
         error,
         'error while trying to restore Ledger accounts on recreate vault',