diff --git a/gui/qt/installwizard.py b/gui/qt/installwizard.py
index f095c41fa..846e5ba32 100644
--- a/gui/qt/installwizard.py
+++ b/gui/qt/installwizard.py
@@ -384,3 +384,55 @@ class InstallWizard(WindowModalDialog, WizardBase):
         self.set_layout(vbox)
         if not self.exec_():
             raise UserCancelled
+
+    def request_trezor_reset_settings(self, device):
+        vbox = QVBoxLayout()
+
+        main_label = QLabel(_("Choose how to initialize your %s device:")
+                            % device)
+        vbox.addWidget(main_label)
+
+        msg = _("Select your seed length and strength:")
+        choices = [
+            _("12 words (low)"),
+            _("18 words (medium)"),
+            _("24 words (high)"),
+        ]
+        gb = QGroupBox(msg)
+        vbox1 = QVBoxLayout()
+        gb.setLayout(vbox1)
+        bg = QButtonGroup()
+        for i, choice in enumerate(choices):
+            rb = QRadioButton(gb)
+            rb.setText(choice)
+            bg.addButton(rb)
+            bg.setId(rb, i)
+            vbox1.addWidget(rb)
+        rb.setChecked(True)
+        vbox.addWidget(gb)
+
+        label = QLabel(_("Enter a label to name your device:"))
+        name = QLineEdit()
+        hl = QHBoxLayout()
+        hl.addWidget(label)
+        hl.addWidget(name)
+        hl.addStretch(2)
+        vbox.addLayout(hl)
+
+        cb_pin = QCheckBox(_('Enable PIN protection'))
+        cb_pin.setChecked(True)
+        vbox.addWidget(cb_pin)
+
+        cb_phrase = QCheckBox(_('Enable Passphrase protection'))
+        cb_phrase.setChecked(False)
+        vbox.addWidget(cb_phrase)
+
+        vbox.addStretch(1)
+        vbox.addLayout(Buttons(CancelButton(self), OkButton(self, _('Next'))))
+        self.set_layout(vbox)
+
+        if not self.exec_():
+            raise UserCancelled
+
+        return (bg.checkedId(), unicode(name.text()),
+                cb_pin.isChecked(), cb_phrase.isChecked())
diff --git a/lib/wizard.py b/lib/wizard.py
index 40c45704e..d462cb17b 100644
--- a/lib/wizard.py
+++ b/lib/wizard.py
@@ -103,6 +103,16 @@ class WizardBase(PrintError):
         dynamic feedback.  If not provided, Wallet.is_any is used."""
         raise NotImplementedError
 
+    def request_trezor_reset_settings(self, device):
+        """Ask the user how they want to initialize a trezor compatible
+        device.  device is the device kind, e.g. "Keepkey", to be used
+        in dialog messages.  Returns a 4-tuple: (strength, label,
+        pinprotection, passphraseprotection).  Strength is 0, 1 or 2
+        for a 12, 18 or 24 word seed, respectively.  Label is a name
+        to give the device.  PIN protection and passphrase protection
+        are booleans and should default to True and False respectively."""
+        raise NotImplementedError
+
     def request_many(self, n, xpub_hot=None):
         """If xpub_hot is provided, a new wallet is being created.  Request N
         master public keys for cosigners; xpub_hot is the master xpub
diff --git a/plugins/trezor/client.py b/plugins/trezor/client.py
index 04ee35a46..223170c00 100644
--- a/plugins/trezor/client.py
+++ b/plugins/trezor/client.py
@@ -154,8 +154,8 @@ def trezor_client_class(protocol_mixin, base_client, proto):
 
     cls = TrezorClient
     for method in ['apply_settings', 'change_pin', 'get_address',
-                   'get_public_node', 'sign_message', 'sign_tx',
-                   'wipe_device']:
+                   'get_public_node', 'reset_device', 'sign_message',
+                   'sign_tx', 'wipe_device']:
         setattr(cls, method, wrapper(getattr(cls, method)))
 
     return cls
diff --git a/plugins/trezor/plugin.py b/plugins/trezor/plugin.py
index 9ef4e2199..7055769cf 100644
--- a/plugins/trezor/plugin.py
+++ b/plugins/trezor/plugin.py
@@ -220,19 +220,32 @@ class TrezorCompatiblePlugin(BasePlugin):
         self.print_error("clear session:", client)
         client.clear_session()
 
+    def initialize_device(self, wallet, wizard):
+        (strength, label, pin_protection, passphrase_protection) \
+            = wizard.request_trezor_reset_settings(self.device)
+
+        assert strength in range(0, 3)
+        strength = 64 * (strength + 2)    # 128, 192 or 256
+        language = ''
+
+        client = self.client(wallet)
+        client.reset_device(True, strength, passphrase_protection,
+                            pin_protection, label, language)
+
+
     def select_device(self, wallet, wizard):
-        '''Called when creating a new wallet.  Select the device
-        to use.'''
+        '''Called when creating a new wallet.  Select the device to use.  If
+        the device is uninitialized, go through the intialization
+        process.'''
         clients = list(self.clients)
-        if not len(clients):
-            return
-        if len(clients) > 1:
-            labels = [client.label() for client in clients]
-            msg = _("Please select which %s device to use:") % self.device
-            client = clients[wizard.query_choice(msg, labels)]
-        else:
-            client = clients[0]
+        suffixes = [_("An unnamed device (wiped)"), _(" (initialized)")]
+        labels = [client.label() + suffixes[client.is_initialized()]
+                  for client in clients]
+        msg = _("Please select which %s device to use:") % self.device
+        client = clients[wizard.query_choice(msg, labels)]
         self.pair_wallet(wallet, client)
+        if not client.is_initialized():
+            self.initialize_device(wallet, wizard)
 
     def pair_wallet(self, wallet, client):
         self.print_error("pairing wallet %s to device %s" % (wallet, client))
diff --git a/plugins/trezor/qt_generic.py b/plugins/trezor/qt_generic.py
index e5858884a..840682091 100644
--- a/plugins/trezor/qt_generic.py
+++ b/plugins/trezor/qt_generic.py
@@ -59,7 +59,8 @@ class QtHandler(PrintError):
         return self.passphrase
 
     def pin_dialog(self, msg):
-        # Needed e.g. when renaming label and haven't entered PIN
+        # Needed e.g. when resetting a device
+        self.clear_dialog()
         dialog = WindowModalDialog(self.window_stack[-1], _("Enter PIN"))
         matrix = self.pin_matrix_widget_class()
         vbox = QVBoxLayout()