diff --git a/src/components/views/dialogs/SetPasswordDialog.js b/src/components/views/dialogs/SetPasswordDialog.js
index a0b6fd1e3..e0bbee7da 100644
--- a/src/components/views/dialogs/SetPasswordDialog.js
+++ b/src/components/views/dialogs/SetPasswordDialog.js
@@ -38,7 +38,7 @@ export default React.createClass({
     },
 
     _onPasswordChanged: function() {
-        this.props.onFinished();
+        this.props.onFinished(true);
     },
 
     _onPasswordChangeError: function(err) {
diff --git a/src/components/views/globals/PasswordNagBar.js b/src/components/views/globals/PasswordNagBar.js
index 3fd0191a3..f0fdee6c5 100644
--- a/src/components/views/globals/PasswordNagBar.js
+++ b/src/components/views/globals/PasswordNagBar.js
@@ -25,7 +25,10 @@ export default React.createClass({
     onUpdateClicked: function() {
         const SetPasswordDialog = sdk.getComponent('dialogs.SetPasswordDialog');
         Modal.createDialog(SetPasswordDialog, {
-            onFinished: () => {
+            onFinished: (passwordChanged) => {
+                if (!passwordChanged) {
+                    return;
+                }
                 // Notify SessionStore that the user's password was changed
                 dis.dispatch({
                     action: 'password_changed',