diff --git a/src/app/screens/Accounts/GenerateMnemonic/new.test.tsx b/src/app/screens/Accounts/GenerateMnemonic/new.test.tsx
new file mode 100644
index 0000000000..fbd31d1e73
--- /dev/null
+++ b/src/app/screens/Accounts/GenerateMnemonic/new.test.tsx
@@ -0,0 +1,51 @@
+import { render, screen } from "@testing-library/react";
+import userEvent from "@testing-library/user-event";
+import { I18nextProvider } from "react-i18next";
+import { MemoryRouter } from "react-router-dom";
+import i18n from "~/../tests/unit/helpers/i18n";
+import api from "~/common/lib/api";
+
+import MnemonicExplanation from "./new";
+
+jest.mock("~/common/lib/api", () => ({
+  __esModule: true,
+  default: {
+    getAccount: jest.fn(),
+  },
+}));
+
+jest.mock("~/app/utils", () => {
+  const actual = jest.requireActual("~/app/utils");
+
+  return {
+    ...actual,
+    useTheme: jest.fn(() => "light"),
+  };
+});
+
+describe("MnemonicExplanation", () => {
+  beforeEach(() => {
+    jest.mocked(api.getAccount).mockResolvedValue({
+      hasMnemonic: false,
+    } as Awaited<ReturnType<typeof api.getAccount>>);
+  });
+
+  test("disables Next until a setup option is selected", async () => {
+    const user = userEvent.setup();
+
+    render(
+      <I18nextProvider i18n={i18n}>
+        <MemoryRouter>
+          <MnemonicExplanation />
+        </MemoryRouter>
+      </I18nextProvider>
+    );
+
+    const nextButton = await screen.findByRole("button", { name: "Next" });
+    expect(nextButton).toBeDisabled();
+
+    await user.click(screen.getByRole("button", { name: /Create Master Key/ }));
+
+    expect(nextButton).toBeEnabled();
+  });
+});
diff --git a/src/app/screens/Accounts/GenerateMnemonic/new.tsx b/src/app/screens/Accounts/GenerateMnemonic/new.tsx
index 8221691a8a..5a99856d7d 100644
--- a/src/app/screens/Accounts/GenerateMnemonic/new.tsx
+++ b/src/app/screens/Accounts/GenerateMnemonic/new.tsx
@@ -23,7 +23,9 @@ function MnemonicExplanation() {
   });
   const { t: tCommon } = useTranslation("common");
 
-  const [selectedCard, setSelectedCard] = useState("backup");
+  const [selectedCard, setSelectedCard] = useState<
+    "backup" | "import" | "importNostr" | null
+  >(null);
   const [hasMnemonic, setHasMnemonic] = useState(false);
 
   useEffect(() => {
@@ -86,6 +88,7 @@ function MnemonicExplanation() {
             label={tCommon("actions.next")}
             primary
             flex
+            disabled={!selectedCard}
             onClick={() => {
               if (selectedCard === "backup") {
                 hasMnemonic