diff --git a/mobile-app/app/index.tsx b/mobile-app/app/index.tsx
index 82c43ba10..80fdfeae9 100644
--- a/mobile-app/app/index.tsx
+++ b/mobile-app/app/index.tsx
@@ -6,14 +6,20 @@ import { useVaultSync } from '@/hooks/useVaultSync';
 import { ThemedView } from '@/components/ThemedView';
 import LoadingIndicator from '@/components/LoadingIndicator';
 import { install } from 'react-native-quick-crypto';
+import { NativeModules } from 'react-native';
 
 export default function InitialLoadingScreen() {
   const { isInitialized: isAuthInitialized, isLoggedIn } = useAuth();
   const { dbInitialized, dbAvailable } = useDb();
   const { syncVault } = useVaultSync();
-  const hasInitialized = useRef(false);
+  const authContext = useAuth();
   const [status, setStatus] = useState('');
+  const hasInitialized = useRef(false);
 
+  // TODO: isauthinitialized and dbinitialize do not have to be checekd anymore separately.
+  // Refactor this and check usages of isAuthInitialized and dbInitialized in other places.
+  // Doing the check in this file once should be enough. Especially after adding the server
+  // status check later which should fire periodically..
   const isFullyInitialized = isAuthInitialized && dbInitialized;
   const requireLoginOrUnlock = isFullyInitialized && (!isLoggedIn || !dbAvailable);
 
@@ -22,13 +28,22 @@ export default function InitialLoadingScreen() {
   install();
 
   useEffect(() => {
+    if (hasInitialized.current) {
+      return;
+    }
+
+    hasInitialized.current = true;
+
     async function initialize() {
-      if (hasInitialized.current) {
+      const isLoggedIn = await authContext.initializeAuth();
+
+      // If user is not logged in, navigate to login immediately
+      if (!isLoggedIn) {
+        console.log('User not logged in, navigating to login');
+        router.replace('/login');
         return;
       }
 
-      hasInitialized.current = true;
-
       // Perform initial vault sync
       console.log('Initial vault sync');
       await syncVault({
@@ -38,22 +53,56 @@ export default function InitialLoadingScreen() {
         }
       });
 
-      // Navigate to appropriate screen
-      if (requireLoginOrUnlock) {
-        console.log('Navigating to login');
-        router.replace('/login');
-      } else {
-        console.log('Navigating to credentials');
-        router.replace('/(tabs)/(credentials)');
+      // Try to unlock with FaceID
+      try {
+        // This will check if the encrypted database file exists locally.
+        // TODO: this isvaultinitialized should be renamed to "isVaultExists" or something similar
+        // as we're just checking if the file exists.
+        const isInitialized = await NativeModules.CredentialManager.isVaultInitialized();
+        if (isInitialized) {
+          // Attempt to unlock the vault with FaceID.
+          setStatus('Unlocking vault|');
+          const isUnlocked = await NativeModules.CredentialManager.unlockVault();
+          if (isUnlocked) {
+            await new Promise(resolve => setTimeout(resolve, 1000));
+            setStatus('Decrypting vault');
+            await new Promise(resolve => setTimeout(resolve, 1000));
+            console.log('FaceID unlock successful, navigating to credentials');
+            router.replace('/(tabs)/(credentials)');
+            return;
+          }
+          else {
+            console.log('FaceID unlock failed, navigating to unlock screen');
+            router.replace('/unlock');
+          }
+        }
+        else {
+          // Vault is not initialized which means the database does not exist or decryption key is missing
+          // from device's keychain. Navigate to the unlock screen.
+          console.log('Vault is not initialized (db file does not exist), navigating to unlock screen');
+          router.replace('/unlock');
+          return;
+        }
+      } catch (error) {
+        console.log('FaceID unlock failed:', error);
+        // If FaceID fails (too many attempts, manual cancel, etc.)
+        // navigate to unlock screen
+        router.replace('/unlock');
+        return;
       }
+
+      // If we get here, something went wrong with the FaceID unlock
+      // Navigate to unlock screen as a fallback
+      console.log('FaceID unlock failed, navigating to unlock screen');
+      router.replace('/unlock');
     }
 
     initialize();
-  }, [isFullyInitialized, requireLoginOrUnlock, syncVault]); // Keep all dependencies to satisfy ESLint
+  }, [isFullyInitialized, requireLoginOrUnlock, syncVault]);
 
   return (
     <ThemedView style={{ flex: 1, justifyContent: 'center', alignItems: 'center' }}>
-      {isLoggedIn && status ? <LoadingIndicator status={status} /> : null}
+      {(isLoggedIn && status) ? <LoadingIndicator status={status} /> : null}
     </ThemedView>
   );
 }
\ No newline at end of file
diff --git a/mobile-app/app/unlock.tsx b/mobile-app/app/unlock.tsx
new file mode 100644
index 000000000..f8707a38e
--- /dev/null
+++ b/mobile-app/app/unlock.tsx
@@ -0,0 +1,155 @@
+import { useState } from 'react';
+import { StyleSheet, View, TextInput, TouchableOpacity, Alert } from 'react-native';
+import { router } from 'expo-router';
+import { useAuth } from '@/context/AuthContext';
+import { useDb } from '@/context/DbContext';
+import { ThemedView } from '@/components/ThemedView';
+import { ThemedText } from '@/components/ThemedText';
+import LoadingIndicator from '@/components/LoadingIndicator';
+import { NativeModules } from 'react-native';
+import { VaultResponse } from '@/utils/types/webapi/VaultResponse';
+
+export default function UnlockScreen() {
+  const { isLoggedIn } = useAuth();
+  const { initializeDatabase } = useDb();
+  const [password, setPassword] = useState('');
+  const [isLoading, setIsLoading] = useState(false);
+
+  const handleUnlock = async () => {
+    if (!password) {
+      Alert.alert('Error', 'Please enter your password');
+      return;
+    }
+
+    setIsLoading(true);
+    try {
+      // Initialize the database with the provided password
+      // We need to get the vault response from the API first
+      const response = await fetch('https://api.aliasvault.net/v1/vault', {
+        method: 'GET',
+        headers: {
+          'Content-Type': 'application/json',
+        },
+      });
+
+      if (!response.ok) {
+        throw new Error('Failed to fetch vault');
+      }
+
+      const vaultResponse: VaultResponse = await response.json();
+
+      // Initialize the database with the vault response and password
+      await initializeDatabase(vaultResponse, password);
+
+      // If successful, navigate to credentials
+      router.replace('/(tabs)/(credentials)');
+    } catch (error) {
+      Alert.alert('Error', 'Incorrect password. Please try again.');
+    } finally {
+      setIsLoading(false);
+    }
+  };
+
+  const handleLogout = async () => {
+    // Clear any stored tokens or session data
+    // This will be handled by the auth context
+    router.replace('/login');
+  };
+
+  return (
+    <ThemedView style={styles.container}>
+      <View style={styles.content}>
+        <ThemedText style={styles.title}>Unlock Vault</ThemedText>
+        <ThemedText style={styles.subtitle}>Enter your password to unlock your vault</ThemedText>
+
+        <TextInput
+          style={styles.input}
+          placeholder="Password"
+          secureTextEntry
+          value={password}
+          onChangeText={setPassword}
+          autoCapitalize="none"
+          autoCorrect={false}
+        />
+
+        <TouchableOpacity
+          style={styles.button}
+          onPress={handleUnlock}
+          disabled={isLoading}
+        >
+          <ThemedText style={styles.buttonText}>
+            {isLoading ? 'Unlocking...' : 'Unlock'}
+          </ThemedText>
+        </TouchableOpacity>
+
+        <TouchableOpacity
+          style={styles.logoutButton}
+          onPress={handleLogout}
+        >
+          <ThemedText style={styles.logoutButtonText}>Logout</ThemedText>
+        </TouchableOpacity>
+      </View>
+
+      {isLoading && <LoadingIndicator status="Unlocking vault..." />}
+    </ThemedView>
+  );
+}
+
+const styles = StyleSheet.create({
+  container: {
+    flex: 1,
+    justifyContent: 'center',
+    alignItems: 'center',
+    padding: 20,
+  },
+  content: {
+    width: '100%',
+    maxWidth: 400,
+  },
+  title: {
+    fontSize: 24,
+    fontWeight: 'bold',
+    marginBottom: 8,
+    textAlign: 'center',
+  },
+  subtitle: {
+    fontSize: 16,
+    marginBottom: 24,
+    textAlign: 'center',
+    opacity: 0.7,
+  },
+  input: {
+    width: '100%',
+    height: 50,
+    borderWidth: 1,
+    borderColor: '#ccc',
+    borderRadius: 8,
+    paddingHorizontal: 16,
+    marginBottom: 16,
+    fontSize: 16,
+  },
+  button: {
+    width: '100%',
+    height: 50,
+    backgroundColor: '#007AFF',
+    borderRadius: 8,
+    justifyContent: 'center',
+    alignItems: 'center',
+    marginBottom: 16,
+  },
+  buttonText: {
+    color: 'white',
+    fontSize: 16,
+    fontWeight: '600',
+  },
+  logoutButton: {
+    width: '100%',
+    height: 50,
+    justifyContent: 'center',
+    alignItems: 'center',
+  },
+  logoutButtonText: {
+    color: '#007AFF',
+    fontSize: 16,
+  },
+});
\ No newline at end of file
diff --git a/mobile-app/components/LoadingIndicator.tsx b/mobile-app/components/LoadingIndicator.tsx
index 03b39f653..ae5fe17e9 100644
--- a/mobile-app/components/LoadingIndicator.tsx
+++ b/mobile-app/components/LoadingIndicator.tsx
@@ -48,6 +48,9 @@ export default function LoadingIndicator({ status }: LoadingIndicatorProps) {
       ])
     );
 
+    // Reset dots when status changes
+    setDots('');
+
     const dotsInterval = setInterval(() => {
       setDots(prevDots => {
         if (prevDots.length >= 3) return '';
@@ -61,7 +64,12 @@ export default function LoadingIndicator({ status }: LoadingIndicatorProps) {
       animation.stop();
       clearInterval(dotsInterval);
     };
-  }, []);
+  }, [status]);
+
+  // If the status ends with a pipe character (|), don't show any dots
+  // This provides an explicit way to disable the loading dots animation
+  const statusTrimmed = status.endsWith('|') ? status.slice(0, -1) : status;
+  const shouldShowDots = !status.endsWith('|');
 
   const styles = StyleSheet.create({
     container: {
@@ -150,7 +158,10 @@ export default function LoadingIndicator({ status }: LoadingIndicatorProps) {
           ]}
         />
       </View>
-      <Text style={styles.statusText}>{status}{dots}</Text>
+      <Text style={styles.statusText}>
+        {statusTrimmed}
+        {shouldShowDots && dots}
+      </Text>
     </View>
   );
 }
\ No newline at end of file
diff --git a/mobile-app/context/DbContext.tsx b/mobile-app/context/DbContext.tsx
index 9af63efab..f99eac843 100644
--- a/mobile-app/context/DbContext.tsx
+++ b/mobile-app/context/DbContext.tsx
@@ -66,13 +66,16 @@ export const DbProvider: React.FC<{ children: React.ReactNode }> = ({ children }
         // Get metadata from SQLite client
         const metadata = await sqliteClient.getVaultMetadata();
         if (metadata) {
+          console.log('Vault metadata found, setting dbInitialized and dbAvailable to true');
           setDbInitialized(true);
           setDbAvailable(true);
         } else {
+          console.log('Vault metadata not found, setting dbInitialized and dbAvailable to false');
           setDbInitialized(true);
           setDbAvailable(false);
         }
       } else {
+        console.log('Vault not initialized, setting dbInitialized and dbAvailable to false');
         setDbInitialized(true);
         setDbAvailable(false);
       }
diff --git a/mobile-app/hooks/useVaultSync.ts b/mobile-app/hooks/useVaultSync.ts
index 67687fc30..236cbdacf 100644
--- a/mobile-app/hooks/useVaultSync.ts
+++ b/mobile-app/hooks/useVaultSync.ts
@@ -59,7 +59,7 @@ export const useVaultSync = () => {
       onStatus?.('Checking vault updates');
       const statusResponse = await withMinimumDelay(
         () => webApi.getStatus(),
-        700,
+        300,
         initialSync
       );
       const statusError = webApi.validateStatusResponse(statusResponse);
@@ -99,9 +99,11 @@ export const useVaultSync = () => {
       }
 
       console.log('Vault sync finished: No updates needed');
-      onStatus?.('Decrypting vault');
-      await new Promise(resolve => setTimeout(resolve, 300));
-      onSuccess?.(false);
+      await withMinimumDelay(
+        () => Promise.resolve(onSuccess?.(false)),
+        300,
+        initialSync
+      );
       return false;
     } catch (err) {
       const errorMessage = err instanceof Error ? err.message : 'Unknown error during vault sync';
diff --git a/mobile-app/ios/CredentialManager/CredentialManager.m b/mobile-app/ios/CredentialManager/CredentialManager.m
index 5a2ed6433..5b59012f3 100644
--- a/mobile-app/ios/CredentialManager/CredentialManager.m
+++ b/mobile-app/ios/CredentialManager/CredentialManager.m
@@ -6,8 +6,11 @@ RCT_EXTERN_METHOD(requiresMainQueueSetup)
 RCT_EXTERN_METHOD(addCredential:(NSString *)username password:(NSString *)password service:(NSString *)service)
 RCT_EXTERN_METHOD(getCredentials)
 RCT_EXTERN_METHOD(clearVault)
+// TODO: isvaultinitialized should be renamed to "isVaultExists" or something similar as we're just checking if the file exists.
+// The initializevault actually initializes the vault by decrypting it and loading the DB into memory.
 RCT_EXTERN_METHOD(isVaultInitialized:(RCTPromiseResolveBlock)resolve rejecter:(RCTPromiseRejectBlock)reject)
 RCT_EXTERN_METHOD(getVaultMetadata:(RCTPromiseResolveBlock)resolve rejecter:(RCTPromiseRejectBlock)reject)
+RCT_EXTERN_METHOD(unlockVault:(RCTPromiseResolveBlock)resolve rejecter:(RCTPromiseRejectBlock)reject)
 
 // New methods for SQLite database operations
 RCT_EXTERN_METHOD(storeDatabase:(NSString *)base64EncryptedDb
diff --git a/mobile-app/ios/CredentialManager/CredentialManager.swift b/mobile-app/ios/CredentialManager/CredentialManager.swift
index f7fb152c2..bc50c76d2 100644
--- a/mobile-app/ios/CredentialManager/CredentialManager.swift
+++ b/mobile-app/ios/CredentialManager/CredentialManager.swift
@@ -148,6 +148,30 @@ class CredentialManager: NSObject {
         }
     }
 
+    @objc
+    func unlockVault(_ resolve: @escaping RCTPromiseResolveBlock,
+                        rejecter reject: @escaping RCTPromiseRejectBlock) {
+        do {
+            // TODO: rename this to unlockvault? so meaning is: initialized means it exists, and unlock means
+            // we're decrypting the encrypted database (that exists) and try to load it into memory. If unlocking
+            // fails, user is redirected to the unlock screen in the react native app.
+            try credentialStore.initializeDatabase()
+            resolve(true)
+        } catch {
+            // Check if the error is related to Face ID or decryption
+            if let nsError = error as NSError? {
+                if nsError.domain == "SharedCredentialStore" {
+                    // These are our known error codes for initialization failures
+                    if nsError.code == 1 || nsError.code == 2 || nsError.code == 10 {
+                        resolve(false)
+                        return
+                    }
+                }
+            }
+            reject("INIT_ERROR", "Failed to unlock vault: \(error.localizedDescription)", error)
+        }
+    }
+
     @objc
     func requiresMainQueueSetup() -> Bool {
         return false
diff --git a/mobile-app/ios/CredentialManager/SharedCredentialStore.swift b/mobile-app/ios/CredentialManager/SharedCredentialStore.swift
index 7a303ca78..4cad24629 100644
--- a/mobile-app/ios/CredentialManager/SharedCredentialStore.swift
+++ b/mobile-app/ios/CredentialManager/SharedCredentialStore.swift
@@ -93,7 +93,7 @@ class SharedCredentialStore {
     }
 
     // Get the encrypted database as a base64 encoded string
-    func getEncryptedDatabase() -> String? {
+    private func getEncryptedDatabase() -> String? {
         do {
             // Return the base64 encoded string
             return try String(contentsOf: getEncryptedDbPath(), encoding: .utf8)
@@ -103,7 +103,7 @@ class SharedCredentialStore {
     }
 
     // Get the vault metadata from UserDefaults
-    func getVaultMetadata() -> String? {
+    public func getVaultMetadata() -> String? {
         return UserDefaults.standard.string(forKey: "vault_metadata")
     }