diff --git a/web/pgadmin/browser/__init__.py b/web/pgadmin/browser/__init__.py
index 15a500890..3dc05108a 100644
--- a/web/pgadmin/browser/__init__.py
+++ b/web/pgadmin/browser/__init__.py
@@ -746,12 +746,14 @@ def get_nodes():
 
 
 def form_master_password_response(existing=True, present=False, errmsg=None,
-                                  keyring_name=''):
+                                  keyring_name='',
+                                  invalid_master_password_hook=False):
     return make_json_response(data={
         'present': present,
         'reset': existing,
         'errmsg': errmsg,
         'keyring_name': keyring_name,
+        'invalid_master_password_hook': invalid_master_password_hook,
         'is_error': True if errmsg else False
     })
 
@@ -893,7 +895,8 @@ def set_master_password():
             return form_master_password_response(
                 existing=False,
                 present=False,
-                errmsg=error
+                errmsg=error,
+                invalid_master_password_hook=True
             )
 
     # Master password is applicable for Desktop mode and in server mode
@@ -906,13 +909,15 @@ def set_master_password():
         if current_user.masterpass_check is not None and \
             data.get('submit_password', False) and \
                 not validate_master_password(data.get('password')):
-            errmsg = gettext("Password mismatch error") if \
-                config.MASTER_PASSWORD_HOOK else \
-                gettext("Incorrect master password")
+            errmsg = '' if config.MASTER_PASSWORD_HOOK \
+                else gettext("Incorrect master password")
+            invalid_master_password_hook = \
+                True if config.MASTER_PASSWORD_HOOK else False
             return form_master_password_response(
                 existing=True,
                 present=False,
-                errmsg=errmsg
+                errmsg=errmsg,
+                invalid_master_password_hook=invalid_master_password_hook
             )
 
         # if master password received in request
diff --git a/web/pgadmin/static/js/Dialogs/index.jsx b/web/pgadmin/static/js/Dialogs/index.jsx
index 8e2f712a2..1a8bb3394 100644
--- a/web/pgadmin/static/js/Dialogs/index.jsx
+++ b/web/pgadmin/static/js/Dialogs/index.jsx
@@ -157,12 +157,12 @@ export function checkMasterPassword(data, masterpass_callback_queue, cancel_call
   const api = getApiInstance();
   api.post(url_for('browser.set_master_password'), data).then((res)=> {
     let isKeyring = res.data.data.keyring_name.length > 0;
+
     if(!res.data.data.present) {
-      if(res.data.data.is_error){
-        //show notifier with error
-        if(!res.data.data.reset){
+      if (res.data.data.invalid_master_password_hook){
+        if(res.data.data.is_error){
           Notify.error(res.data.data.errmsg);
-        }else if(res.data.data.errmsg == 'Password mismatch error'){
+        }else{
           Notify.confirm(gettext('Reset Master Password'),
             gettext('The master password retrieved from the master password hook utility is different from what was previously retrieved.') + '<br>'
             + gettext('Do you want to reset your master password to match?') + '<br><br>'
@@ -179,12 +179,11 @@ export function checkMasterPassword(data, masterpass_callback_queue, cancel_call
               return true;
             },
             function() {/* If user clicks No */ return true;}
-          );
-        }
-      }
-      else{
+          );}
+      }else{
         showMasterPassword(res.data.data.reset, res.data.data.errmsg, masterpass_callback_queue, cancel_callback, res.data.data.keyring_name);
       }
+
     } else {
       masterPassCallbacks(masterpass_callback_queue);
 
@@ -199,7 +198,7 @@ export function checkMasterPassword(data, masterpass_callback_queue, cancel_call
 }
 
 // This functions is used to show the master password dialog.
-export function showMasterPassword(isPWDPresent, errmsg, masterpass_callback_queue, cancel_callback, keyring_name) {
+export function showMasterPassword(isPWDPresent, errmsg, masterpass_callback_queue, cancel_callback, keyring_name='') {
   const api = getApiInstance();
   let title =  keyring_name.length > 0 ? gettext('Migrate Saved Passwords') : isPWDPresent ? gettext('Unlock Saved Passwords') : gettext('Set Master Password');