diff --git a/common/src/main/java/haveno/common/file/FileUtil.java b/common/src/main/java/haveno/common/file/FileUtil.java
index 60ac2c3abc..449faea64b 100644
--- a/common/src/main/java/haveno/common/file/FileUtil.java
+++ b/common/src/main/java/haveno/common/file/FileUtil.java
@@ -40,10 +40,13 @@ import java.util.Scanner;
 
 @Slf4j
 public class FileUtil {
+
+    private static final String BACKUP_DIR = "backup";
+    
     public static void rollingBackup(File dir, String fileName, int numMaxBackupFiles) {
         if (numMaxBackupFiles <= 0) return;
         if (dir.exists()) {
-            File backupDir = new File(Paths.get(dir.getAbsolutePath(), "backup").toString());
+            File backupDir = new File(Paths.get(dir.getAbsolutePath(), BACKUP_DIR).toString());
             if (!backupDir.exists())
                 if (!backupDir.mkdir())
                     log.warn("make dir failed.\nBackupDir=" + backupDir.getAbsolutePath());
@@ -72,8 +75,21 @@ public class FileUtil {
         }
     }
 
+    public static File getLatestBackupFile(File dir, String fileName) {
+        File backupDir = new File(Paths.get(dir.getAbsolutePath(), BACKUP_DIR).toString());
+        if (!backupDir.exists()) return null;
+        String dirName = "backups_" + fileName;
+        if (dirName.contains(".")) dirName = dirName.replace(".", "_");
+        File backupFileDir = new File(Paths.get(backupDir.getAbsolutePath(), dirName).toString());
+        if (!backupFileDir.exists()) return null;
+        File[] files = backupFileDir.listFiles();
+        if (files == null || files.length == 0) return null;
+        Arrays.sort(files, Comparator.comparing(File::getName));
+        return files[files.length - 1];
+    }
+
     public static void deleteRollingBackup(File dir, String fileName) {
-        File backupDir = new File(Paths.get(dir.getAbsolutePath(), "backup").toString());
+        File backupDir = new File(Paths.get(dir.getAbsolutePath(), BACKUP_DIR).toString());
         if (!backupDir.exists()) return;
         String dirName = "backups_" + fileName;
         if (dirName.contains(".")) dirName = dirName.replace(".", "_");
diff --git a/core/src/main/java/haveno/core/xmr/wallet/XmrWalletService.java b/core/src/main/java/haveno/core/xmr/wallet/XmrWalletService.java
index d3402061c6..325bdc1313 100644
--- a/core/src/main/java/haveno/core/xmr/wallet/XmrWalletService.java
+++ b/core/src/main/java/haveno/core/xmr/wallet/XmrWalletService.java
@@ -136,7 +136,6 @@ public class XmrWalletService extends XmrWalletBase {
     private final WalletsSetup walletsSetup;
 
     private final File walletDir;
-    private final File xmrWalletFile;
     private final int rpcBindPort;
     private final boolean useNativeXmrWallet;
     protected final CopyOnWriteArraySet<XmrBalanceListener> balanceListeners = new CopyOnWriteArraySet<>();
@@ -181,7 +180,6 @@ public class XmrWalletService extends XmrWalletBase {
         this.walletDir = walletDir;
         this.rpcBindPort = rpcBindPort;
         this.useNativeXmrWallet = useNativeXmrWallet;
-        this.xmrWalletFile = new File(walletDir, MONERO_WALLET_NAME);
         HavenoUtils.xmrWalletService = this;
         HavenoUtils.xmrConnectionService = xmrConnectionService;
         this.xmrConnectionService = xmrConnectionService; // TODO: super's is null unless set here from injection
@@ -1327,7 +1325,7 @@ public class XmrWalletService extends XmrWalletBase {
             if (wallet == null) {
                 MoneroDaemonRpc daemon = xmrConnectionService.getDaemon();
                 log.info("Initializing main wallet with monerod=" + (daemon == null ? "null" : daemon.getRpcConnection().getUri()));
-                if (MoneroUtils.walletExists(xmrWalletFile.getPath())) {
+                if (walletExists(MONERO_WALLET_NAME)) {
                     wallet = openWallet(MONERO_WALLET_NAME, rpcBindPort, isProxyApplied(wasWalletSynced));
                 } else if (Boolean.TRUE.equals(xmrConnectionService.isConnected())) {
                     wallet = createWallet(MONERO_WALLET_NAME, rpcBindPort);
@@ -1475,11 +1473,54 @@ public class XmrWalletService extends XmrWalletBase {
             MoneroRpcConnection connection = new MoneroRpcConnection(xmrConnectionService.getConnection());
             if (!applyProxyUri) connection.setProxyUri(null);
 
-            // open wallet
+            // try opening wallet
             config.setNetworkType(getMoneroNetworkType());
             config.setServer(connection);
             log.info("Opening full wallet " + config.getPath() + " with monerod=" + connection.getUri() + ", proxyUri=" + connection.getProxyUri());
-            walletFull = MoneroWalletFull.openWallet(config);
+            try {
+                walletFull = MoneroWalletFull.openWallet(config);
+            } catch (Exception e) {
+                log.warn("Failed to open full wallet '{}', attempting to use backup cache, error={}", config.getPath(), e.getMessage());
+                boolean retrySuccessful = false;
+                try {
+                    
+                    // rename wallet cache to backup
+                    String cachePath = walletDir.toString() + File.separator + MONERO_WALLET_NAME;
+                    File originalCacheFile = new File(cachePath);
+                    if (originalCacheFile.exists()) originalCacheFile.renameTo(new File(cachePath + ".backup"));
+
+                    // copy latest wallet cache backup to main folder
+                    File backupCacheFile = FileUtil.getLatestBackupFile(walletDir, MONERO_WALLET_NAME);
+                    if (backupCacheFile != null) FileUtil.copyFile(backupCacheFile, new File(cachePath));
+
+                    // retry opening wallet without original cache
+                    try {
+                        walletFull = MoneroWalletFull.openWallet(config);
+                        log.info("Successfully opened full wallet using backup cache");
+                        retrySuccessful = true;
+                    } catch (Exception e2) {
+                        // ignore
+                    }
+
+                    // handle success or failure
+                    if (retrySuccessful) {
+                        originalCacheFile.delete(); // delete original wallet cache backup
+                    } else {
+
+                        // restore original wallet cache
+                        log.warn("Failed to open full wallet using backup cache, restoring original cache");
+                        File cacheFile = new File(cachePath);
+                        if (cacheFile.exists()) cacheFile.delete();
+                        File originalCacheBackup = new File(cachePath + ".backup");
+                        if (originalCacheBackup.exists()) originalCacheBackup.renameTo(new File(cachePath));
+
+                        // throw exception
+                        throw e;
+                    }
+                } catch (Exception e2) {
+                    throw e; // throw original exception
+                }
+            }
             if (walletFull.getDaemonConnection() != null) walletFull.getDaemonConnection().setPrintStackTrace(PRINT_RPC_STACK_TRACE);
             log.info("Done opening full wallet " + config.getPath());
             return walletFull;
@@ -1518,7 +1559,7 @@ public class XmrWalletService extends XmrWalletBase {
         } catch (Exception e) {
             e.printStackTrace();
             if (walletRpc != null) forceCloseWallet(walletRpc, config.getPath());
-            throw new IllegalStateException("Could not create wallet '" + config.getPath() + "'. Please close Haveno, stop all monero-wallet-rpc processes, and restart Haveno.");
+            throw new IllegalStateException("Could not create wallet '" + config.getPath() + "'. Please close Haveno, stop all monero-wallet-rpc processes in your task manager, and restart Haveno.");
         }
     }
 
@@ -1537,17 +1578,60 @@ public class XmrWalletService extends XmrWalletBase {
             MoneroRpcConnection connection = new MoneroRpcConnection(xmrConnectionService.getConnection());
             if (!applyProxyUri) connection.setProxyUri(null);
 
-            // open wallet
+            // try opening wallet
             log.info("Opening RPC wallet " + config.getPath() + " with monerod=" + connection.getUri() + ", proxyUri=" + connection.getProxyUri());
             config.setServer(connection);
-            walletRpc.openWallet(config);
+            try {
+                walletRpc.openWallet(config);
+            } catch (Exception e) {
+                log.warn("Failed to open RPC wallet '{}', attempting to use backup cache, error={}", config.getPath(), e.getMessage());
+                boolean retrySuccessful = false;
+                try {
+                    
+                    // rename wallet cache to backup
+                    String cachePath = walletDir.toString() + File.separator + MONERO_WALLET_NAME;
+                    File originalCacheFile = new File(cachePath);
+                    if (originalCacheFile.exists()) originalCacheFile.renameTo(new File(cachePath + ".backup"));
+
+                    // copy latest wallet cache backup to main folder
+                    File backupCacheFile = FileUtil.getLatestBackupFile(walletDir, MONERO_WALLET_NAME);
+                    if (backupCacheFile != null) FileUtil.copyFile(backupCacheFile, new File(cachePath));
+
+                    // retry opening wallet without original cache
+                    try {
+                        walletRpc.openWallet(config);
+                        log.info("Successfully opened RPC wallet using backup cache");
+                        retrySuccessful = true;
+                    } catch (Exception e2) {
+                        // ignore
+                    }
+
+                    // handle success or failure
+                    if (retrySuccessful) {
+                        originalCacheFile.delete(); // delete original wallet cache backup
+                    } else {
+
+                        // restore original wallet cache
+                        log.warn("Failed to open RPC wallet using backup cache, restoring original cache");
+                        File cacheFile = new File(cachePath);
+                        if (cacheFile.exists()) cacheFile.delete();
+                        File originalCacheBackup = new File(cachePath + ".backup");
+                        if (originalCacheBackup.exists()) originalCacheBackup.renameTo(new File(cachePath));
+
+                        // throw exception
+                        throw e;
+                    }
+                } catch (Exception e2) {
+                    throw e; // throw original exception
+                }
+            }
             if (walletRpc.getDaemonConnection() != null) walletRpc.getDaemonConnection().setPrintStackTrace(PRINT_RPC_STACK_TRACE);
             log.info("Done opening RPC wallet " + config.getPath());
             return walletRpc;
         } catch (Exception e) {
             e.printStackTrace();
             if (walletRpc != null) forceCloseWallet(walletRpc, config.getPath());
-            throw new IllegalStateException("Could not open wallet '" + config.getPath() + "'. Please close Haveno, stop all monero-wallet-rpc processes, and restart Haveno.\n\nError message: " + e.getMessage());
+            throw new IllegalStateException("Could not open wallet '" + config.getPath() + "'. Please close Haveno, stop all monero-wallet-rpc processes in your task manager, and restart Haveno.\n\nError message: " + e.getMessage());
         }
     }