diff --git a/CHANGELOG.md b/CHANGELOG.md
index f1e4ead768..50b8860984 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -17,6 +17,7 @@ Changelog
 
 ### Chores
 
+- Added unit tests for mnemonic generation and validation ([PR 1379](https://github.com/input-output-hk/daedalus/pull/1379))
 - Simplified the test setup ([PR 1378](https://github.com/input-output-hk/daedalus/pull/1378))
 - Updated PR template ([PR 1376](https://github.com/input-output-hk/daedalus/pull/1376))
 - Implemented new About Us dialog design with a close button ([PR 1369](https://github.com/input-output-hk/daedalus/pull/1369)
diff --git a/features/README.md b/features/README.md
index e7ae1a4944..cbf47c4b1c 100644
--- a/features/README.md
+++ b/features/README.md
@@ -20,6 +20,16 @@ Make sure Daedalus is properly installed (see above).
 $ yarn test:unit
 ```
 
+## Unbound tests
+   
+Unbound tests run as long as you keep them running 
+(never end except if an error occurs).
+   
+Example:
+`yarn test:unit:unbound --tags @mnemonics` 
+generates and validates mnemonics as long as you keep it 
+running (the number of executions is updated in the terminal)
+
 # Run UI tests
 
 1. Make sure Daedalus is properly installed (see above).
diff --git a/features/mnemonics-generation-and-validation.feature b/features/mnemonics-generation-and-validation.feature
new file mode 100644
index 0000000000..83d56cd2f8
--- /dev/null
+++ b/features/mnemonics-generation-and-validation.feature
@@ -0,0 +1,13 @@
+Feature: Mnemonics generation and validation
+
+  As a developer I want to be sure our mnemonic
+  (12-word recovery phrase) is correctly generated/validated
+
+  @unit @slow
+  Scenario: All generated wallet recovery mnemonics are valid
+    Given I generate 10000 wallet recovery mnemonics
+    Then all generated wallet recovery mnemonics should be valid
+
+  @unbound @mnemonics
+  Scenario: Unbound manual test run gives no invalid mnemeonics
+    Given I generate and validate an unbound number of wallet recovery mnemonics
diff --git a/features/tests/unit/steps/mnemonics-steps.js b/features/tests/unit/steps/mnemonics-steps.js
new file mode 100644
index 0000000000..7b9ce92033
--- /dev/null
+++ b/features/tests/unit/steps/mnemonics-steps.js
@@ -0,0 +1,42 @@
+import { Given, When, Then } from 'cucumber';
+import { expect } from 'chai';
+import { range } from 'lodash';
+import { generateAccountMnemonics } from '../../../../source/renderer/app/api/utils/mnemonics';
+import { isValidMnemonic } from '../../../../source/common/crypto/decrypt';
+import { WALLET_RECOVERY_PHRASE_WORD_COUNT } from '../../../../source/renderer/app/config/cryptoConfig';
+
+const isValidWalletRecoveryPhrase = mnemonic =>
+  isValidMnemonic(mnemonic, WALLET_RECOVERY_PHRASE_WORD_COUNT);
+
+Given('I generate {int} wallet recovery mnemonics', function(
+  numberOfMnemonics
+) {
+  this.context.mnemonics = range(numberOfMnemonics).map(() =>
+    generateAccountMnemonics().join(' ')
+  );
+});
+
+Then('all generated wallet recovery mnemonics should be valid', function() {
+  for (const mnemonic of this.context.mnemonics) {
+    if (!isValidWalletRecoveryPhrase(mnemonic)) {
+      throw new Error(`"${mnemonic}" is not valid`);
+    }
+  }
+});
+
+Given(
+  'I generate and validate an unbound number of wallet recovery mnemonics',
+  function() {
+    let numberOfTestsExecuted = 0;
+    while (true) {
+      const mnemonic = generateAccountMnemonics().join(' ');
+      if (!isValidWalletRecoveryPhrase(mnemonic)) {
+        throw new Error(`"${mnemonic}" is not valid`);
+      }
+      numberOfTestsExecuted++;
+      process.stdout.clearLine();
+      process.stdout.cursorTo(0);
+      process.stdout.write(numberOfTestsExecuted + ' mnemonics validated.');
+    }
+  }
+);
diff --git a/package.json b/package.json
index 7ff1ea303d..e779e895ff 100644
--- a/package.json
+++ b/package.json
@@ -12,6 +12,7 @@
     "test": "NODE_ENV=test yarn build && yarn test:unit && yarn test:ui",
     "test:unit": "yarn cucumber --require 'features/tests/unit/**/*.js' --tags '@unit and not @skip'",
     "test:unit:watch": "nodemon --watch source --watch features --exec \"yarn test:unit --tags '@unit and @watch'\"",
+    "test:unit:unbound": "yarn cucumber --require 'features/tests/unit/**/*.js' --tags '@unbound and not @skip'",
     "test:ui": "yarn cucumber --require 'features/tests/ui/**/*.js' --tags '@ui and not @skip'",
     "test:ui:watch": "gulp test:ui:watch",
     "cucumber": "cross-env NODE_ENV=test cucumber-js --require-module @babel/register -f node_modules/cucumber-pretty --format-options '{\"snippetInterface\": \"async-await\"}'",