diff --git a/src/components/views/dialogs/SetPasswordDialog.js b/src/components/views/dialogs/SetPasswordDialog.js
new file mode 100644
index 0000000000..a0b6fd1e37
--- /dev/null
+++ b/src/components/views/dialogs/SetPasswordDialog.js
@@ -0,0 +1,87 @@
+/*
+Copyright 2017 Vector Creations Ltd
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+import q from 'q';
+import React from 'react';
+import sdk from 'matrix-react-sdk';
+import {MatrixClientPeg} from 'matrix-react-sdk';
+import classnames from 'classnames';
+
+/**
+ * Prompt the user to set a password
+ *
+ * On success, `onFinished()` when finished
+ */
+export default React.createClass({
+    displayName: 'SetPasswordDialog',
+    propTypes: {
+        onFinished: React.PropTypes.func.isRequired,
+    },
+
+    getInitialState: function() {
+        return {
+            error: null,
+        };
+    },
+
+    _onPasswordChanged: function() {
+        this.props.onFinished();
+    },
+
+    _onPasswordChangeError: function(err) {
+        let errMsg = err.error || "";
+        if (err.httpStatus === 403) {
+            errMsg = "Failed to change password. Is your password correct?";
+        } else if (err.httpStatus) {
+            errMsg += ` (HTTP status ${err.httpStatus})`;
+        }
+        this.setState({
+            error: errMsg,
+        });
+    },
+
+    render: function() {
+        const BaseDialog = sdk.getComponent('views.dialogs.BaseDialog');
+        const ChangePassword = sdk.getComponent('views.settings.ChangePassword');
+        const Spinner = sdk.getComponent('elements.Spinner');
+
+        return (
+            <BaseDialog className="mx_SetPasswordDialog"
+                onFinished={this.props.onFinished}
+                title="Please set a new password!"
+            >
+                <div className="mx_Dialog_content">
+                    <p>
+                        This will allow you to return to your account after signing out,
+                        and sign in on other devices.
+                    </p>
+                    <ChangePassword
+                        className="mx_SetPasswordDialog_change_password"
+                        rowClassName=""
+                        rowLabelClassName=""
+                        rowInputClassName=""
+                        buttonClassName="mx_Dialog_primary mx_SetPasswordDialog_change_password_button"
+                        confirm={false}
+                        onError={this._onPasswordChangeError}
+                        onFinished={this._onPasswordChanged} />
+                    <div className="error">
+                        { this.state.error }
+                    </div>
+                </div>
+            </BaseDialog>
+        );
+    },
+});
diff --git a/src/components/views/globals/PasswordNagBar.js b/src/components/views/globals/PasswordNagBar.js
index 11168403dc..3fd0191a31 100644
--- a/src/components/views/globals/PasswordNagBar.js
+++ b/src/components/views/globals/PasswordNagBar.js
@@ -19,15 +19,19 @@ limitations under the License.
 import React from 'react';
 import sdk from 'matrix-react-sdk';
 import Modal from 'matrix-react-sdk/lib/Modal';
+import dis from 'matrix-react-sdk/lib/dispatcher';
 
 export default React.createClass({
     onUpdateClicked: function() {
-        // TODO: Implement dialog to set password
-        // const SetPasswordDialog = sdk.getComponent('dialogs.SetPasswordDialog');
-        // Modal.createDialog(SetPasswordDialog, {
-        //     onFinished: () => {
-        //     }
-        // });
+        const SetPasswordDialog = sdk.getComponent('dialogs.SetPasswordDialog');
+        Modal.createDialog(SetPasswordDialog, {
+            onFinished: () => {
+                // Notify SessionStore that the user's password was changed
+                dis.dispatch({
+                    action: 'password_changed',
+                });
+            }
+        });
     },
 
     render: function() {
diff --git a/src/skins/vector/css/_components.scss b/src/skins/vector/css/_components.scss
index a0864817fe..b1964dca04 100644
--- a/src/skins/vector/css/_components.scss
+++ b/src/skins/vector/css/_components.scss
@@ -69,6 +69,7 @@
 @import "./vector-web/views/context_menus/_MessageContextMenu.scss";
 @import "./vector-web/views/context_menus/_RoomTileContextMenu.scss";
 @import "./vector-web/views/dialogs/_ChangelogDialog.scss";
+@import "./vector-web/views/dialogs/_SetPasswordDialog.scss";
 @import "./vector-web/views/directory/_NetworkDropdown.scss";
 @import "./vector-web/views/elements/_ImageView.scss";
 @import "./vector-web/views/elements/_Spinner.scss";
diff --git a/src/skins/vector/css/vector-web/views/dialogs/_SetPasswordDialog.scss b/src/skins/vector/css/vector-web/views/dialogs/_SetPasswordDialog.scss
new file mode 100644
index 0000000000..28a8b7c9d7
--- /dev/null
+++ b/src/skins/vector/css/vector-web/views/dialogs/_SetPasswordDialog.scss
@@ -0,0 +1,35 @@
+/*
+Copyright 2017 Vector Creations Ltd
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+.mx_SetPasswordDialog_change_password input {
+    border-radius: 3px;
+    border: 1px solid $input-border-color;
+    padding: 9px;
+    color: $primary-fg-color;
+    background-color: $primary-bg-color;
+    font-size: 15px;
+    width: 100%;
+    max-width: 280px;
+    margin-bottom: 10px;
+}
+
+.mx_SetPasswordDialog_change_password_button {
+    margin-top: 68px;
+}
+
+.mx_SetPasswordDialog .mx_Dialog_content {
+    margin-bottom: 0px;
+}