diff --git a/packages/suite/src/views/contacts/AddNewContactModal.tsx b/packages/suite/src/views/contacts/AddNewContactModal.tsx
new file mode 100644
index 00000000000..a3f594de0bf
--- /dev/null
+++ b/packages/suite/src/views/contacts/AddNewContactModal.tsx
@@ -0,0 +1,74 @@
+import React, { useState } from 'react';
+
+import { Column, Input, NewModal, Textarea } from '@trezor/components';
+import { selectDevice } from '@suite-common/wallet-core';
+import { spacings } from '@trezor/theme';
+
+import { useSelector } from '../../hooks/suite';
+import { getDeviceState } from '../../reducers/suite/contactsReducer';
+import { useAddContact } from './useAddContact';
+
+type AddNewContactModalProps = {
+    onClose: () => void;
+};
+
+export const AddNewContactModal = ({ onClose }: AddNewContactModalProps) => {
+    const device = useSelector(selectDevice);
+    const deviceState = device && getDeviceState(device);
+
+    const [errorMessage, setErrorMessage] = useState<string | null>(null);
+    const [label, setLabel] = useState('');
+    const [address, setAddress] = useState('');
+
+    const addContact = useAddContact(onClose, label, address);
+    const onAddContact = async () => {
+        const { error } = await addContact();
+        setErrorMessage(error);
+    };
+
+    if (!deviceState || errorMessage)
+        return (
+            <NewModal
+                onCancel={onClose}
+                iconName="warningFilled"
+                variant="warning"
+                size="small"
+                bottomContent={
+                    <NewModal.Button variant="tertiary" onClick={onClose}>
+                        Close
+                    </NewModal.Button>
+                }
+            >
+                No device selected or device unacquired
+            </NewModal>
+        );
+
+    return (
+        <NewModal
+            heading="Add new contact"
+            onCancel={onClose}
+            size="medium"
+            bottomContent={
+                <>
+                    <NewModal.Button onClick={onAddContact}>Save</NewModal.Button>
+                    <NewModal.Button variant="tertiary" onClick={onClose}>
+                        Cancel
+                    </NewModal.Button>
+                </>
+            }
+        >
+            <Column gap={spacings.sm}>
+                <Input
+                    value={label}
+                    label="Label for this recipient"
+                    onChange={event => setLabel(event.target.value)}
+                />
+                <Textarea
+                    value={address}
+                    label="Recipient's address or public key"
+                    onChange={event => setAddress(event.target.value)}
+                />
+            </Column>
+        </NewModal>
+    );
+};
diff --git a/packages/suite/src/views/contacts/ContactList.tsx b/packages/suite/src/views/contacts/ContactList.tsx
new file mode 100644
index 00000000000..40d5c0b8c00
--- /dev/null
+++ b/packages/suite/src/views/contacts/ContactList.tsx
@@ -0,0 +1,87 @@
+import { Button, Card, Dropdown, Table, Text } from '@trezor/components';
+import { spacings } from '@trezor/theme';
+
+import { Contact } from '../../types/suite';
+
+const ContactItem = ({
+    contact: { address, label, signature },
+    remove,
+}: {
+    contact: Contact;
+    remove: () => void;
+}) => {
+    return (
+        <Table.Row>
+            <Table.Cell>
+                <Text typographyStyle="highlight">{label}</Text>
+            </Table.Cell>
+            <Table.Cell>
+                <Text variant="tertiary" typographyStyle="hint" overflowWrap="anywhere">
+                    {address}
+                </Text>
+            </Table.Cell>
+            <Table.Cell>
+                <Text variant="tertiary" typographyStyle="hint" overflowWrap="anywhere">
+                    {signature}
+                </Text>
+            </Table.Cell>
+            <Table.Cell align="right">
+                <Dropdown
+                    alignMenu="bottom-right"
+                    items={[
+                        {
+                            key: '1',
+                            label: 'Contact',
+                            options: [
+                                {
+                                    label: 'Delete',
+                                    icon: 'userMinusFilled',
+                                    onClick: remove,
+                                },
+                            ],
+                        },
+                    ]}
+                />
+            </Table.Cell>
+        </Table.Row>
+    );
+};
+
+export const ContactList = ({
+    contacts,
+    remove,
+    onAdd,
+}: {
+    contacts: Contact[];
+    remove: (contact: Contact) => void;
+    onAdd: () => void;
+}) => {
+    return (
+        <Card paddingType="none" overflow="hidden">
+            <Table isRowHighlightedOnHover margin={{ top: spacings.xs }}>
+                <Table.Header>
+                    <Table.Row>
+                        <Table.Cell>Label</Table.Cell>
+                        <Table.Cell>Address</Table.Cell>
+                        <Table.Cell>Signature</Table.Cell>
+                        <Table.Cell />
+                    </Table.Row>
+                </Table.Header>
+                <Table.Body>
+                    {contacts.map((contact, i) => (
+                        <ContactItem key={i} contact={contact} remove={() => remove(contact)} />
+                    ))}
+                </Table.Body>
+                <Table.Footer>
+                    <Table.Row hasBorderTop={true} isHighlightedOnHover={false}>
+                        <Table.Cell colSpan={4}>
+                            <Button onClick={onAdd} size="small" icon="plus">
+                                Add new contact
+                            </Button>
+                        </Table.Cell>
+                    </Table.Row>
+                </Table.Footer>
+            </Table>
+        </Card>
+    );
+};
diff --git a/packages/suite/src/views/contacts/index.tsx b/packages/suite/src/views/contacts/index.tsx
index e59e381e263..c888e439d4e 100644
--- a/packages/suite/src/views/contacts/index.tsx
+++ b/packages/suite/src/views/contacts/index.tsx
@@ -1,7 +1,9 @@
+import { useState } from 'react';
+
 import { verify } from 'bitcoinjs-message';
 
 import TrezorConnect from '@trezor/connect';
-import { Banner, Button, Card, Dropdown, Row, Table, Text } from '@trezor/components';
+import { Banner, Button, Row } from '@trezor/components';
 import { selectDevice } from '@suite-common/wallet-core';
 import { TrezorDevice } from '@suite-common/suite-types';
 import { spacings } from '@trezor/theme';
@@ -12,90 +14,8 @@ import * as contactsActions from 'src/actions/suite/contactsActions';
 import { Contact } from 'src/types/suite';
 
 import { SettingsLayout } from '../../components/settings';
-import { useAddContactButton } from './useAddContactButton';
-
-const ContactItem = ({
-    contact: { address, label, signature },
-    remove,
-}: {
-    contact: Contact;
-    remove: () => void;
-}) => {
-    return (
-        <Table.Row>
-            <Table.Cell>
-                <Text typographyStyle="highlight">{label}</Text>
-            </Table.Cell>
-            <Table.Cell>
-                <Text variant="tertiary" typographyStyle="hint" overflowWrap="anywhere">
-                    {address}
-                </Text>
-            </Table.Cell>
-            <Table.Cell>
-                <Text variant="tertiary" typographyStyle="hint" overflowWrap="anywhere">
-                    {signature}
-                </Text>
-            </Table.Cell>
-            <Table.Cell align="right">
-                <Dropdown
-                    alignMenu="bottom-right"
-                    items={[
-                        {
-                            key: '1',
-                            label: 'Contact',
-                            options: [
-                                {
-                                    label: 'Delete',
-                                    icon: 'userMinusFilled',
-                                    onClick: remove,
-                                },
-                            ],
-                        },
-                    ]}
-                />
-            </Table.Cell>
-        </Table.Row>
-    );
-};
-
-const ContactList = ({
-    contacts,
-    remove,
-}: {
-    contacts: Contact[];
-    remove: (contact: Contact) => void;
-}) => {
-    const onAdd = useAddContactButton();
-
-    return (
-        <Card paddingType="none" overflow="hidden">
-            <Table isRowHighlightedOnHover margin={{ top: spacings.xs }}>
-                <Table.Header>
-                    <Table.Row>
-                        <Table.Cell>Label</Table.Cell>
-                        <Table.Cell>Address</Table.Cell>
-                        <Table.Cell>Signature</Table.Cell>
-                        <Table.Cell />
-                    </Table.Row>
-                </Table.Header>
-                <Table.Body>
-                    {contacts.map((contact, i) => (
-                        <ContactItem key={i} contact={contact} remove={() => remove(contact)} />
-                    ))}
-                </Table.Body>
-                <Table.Footer>
-                    <Table.Row hasBorderTop={true} isHighlightedOnHover={false}>
-                        <Table.Cell colSpan={4}>
-                            <Button onClick={onAdd} size="small" icon="plus">
-                                Add new contact
-                            </Button>
-                        </Table.Cell>
-                    </Table.Row>
-                </Table.Footer>
-            </Table>
-        </Card>
-    );
-};
+import { AddNewContactModal } from './AddNewContactModal';
+import { ContactList } from './ContactList';
 
 const FindContactButton = ({ contacts }: { contacts: Contact[] }) => {
     const findContact = () => {
@@ -157,7 +77,11 @@ const GetMyPubkeyButton = () => {
 const Contacts = ({ device }: { device: TrezorDevice }) => {
     const contacts = useSelector(selectContactsForDevice(device));
     const dispatch = useDispatch();
-    const onAdd = useAddContactButton();
+    const [isAddNewContactModalVisible, setAddNewContactModalVisible] = useState(false);
+
+    const onAdd = () => {
+        setAddNewContactModalVisible(true);
+    };
 
     const removeContact = (contact: Contact) => {
         const confirmed = confirm('Do you want to remove this contact?');
@@ -169,7 +93,7 @@ const Contacts = ({ device }: { device: TrezorDevice }) => {
     return (
         <>
             {contacts.length ? (
-                <ContactList contacts={contacts} remove={removeContact} />
+                <ContactList contacts={contacts} remove={removeContact} onAdd={onAdd} />
             ) : (
                 <Banner
                     variant="info"
@@ -183,12 +107,13 @@ const Contacts = ({ device }: { device: TrezorDevice }) => {
                     You have no contacts yet
                 </Banner>
             )}
-            <div>
-                <Row gap={spacings.sm}>
-                    <GetMyPubkeyButton />
-                    <FindContactButton contacts={contacts} />
-                </Row>
-            </div>
+            <Row gap={spacings.sm}>
+                <GetMyPubkeyButton />
+                <FindContactButton contacts={contacts} />
+            </Row>
+            {isAddNewContactModalVisible && (
+                <AddNewContactModal onClose={() => setAddNewContactModalVisible(false)} />
+            )}
         </>
     );
 };
diff --git a/packages/suite/src/views/contacts/useAddContactButton.tsx b/packages/suite/src/views/contacts/useAddContact.tsx
similarity index 70%
rename from packages/suite/src/views/contacts/useAddContactButton.tsx
rename to packages/suite/src/views/contacts/useAddContact.tsx
index e020d23c304..09b9309c9a3 100644
--- a/packages/suite/src/views/contacts/useAddContactButton.tsx
+++ b/packages/suite/src/views/contacts/useAddContact.tsx
@@ -5,25 +5,16 @@ import { useDispatch, useSelector } from '../../hooks/suite';
 import { getDeviceState } from '../../reducers/suite/contactsReducer';
 import * as contactsActions from '../../actions/suite/contactsActions';
 
-export const useAddContactButton = () => {
+export const useAddContact = (onCloseModal: () => void, label: string, address: string) => {
     const dispatch = useDispatch();
     const device = useSelector(selectDevice);
 
     return async () => {
         const deviceState = device && getDeviceState(device);
-        if (!deviceState) {
-            alert('No device selected or device unacquired');
-
-            return;
-        }
-
-        const address = prompt("Recipient's address or public key");
-        const label = prompt('Label for this recipient');
+        if (!deviceState) return { error: 'No device' };
 
         if (!address || !label) {
-            alert('Missing data');
-
-            return;
+            return { error: 'Missing data' };
         }
 
         const message = `${label}/${address}`;
@@ -37,14 +28,15 @@ export const useAddContactButton = () => {
         });
 
         if (!response.success) {
-            alert(`Signing failed: ${response.payload.error}`);
-
-            return;
+            return { error: `Signing failed: ${response.payload.error}` };
         }
 
         const { signature } = response.payload;
 
         const contact = { address, label, signature, deviceState };
         dispatch(contactsActions.addContact(contact));
+        onCloseModal();
+
+        return { error: null };
     };
 };