diff --git a/src/app/components/login/login.js b/src/app/components/login/login.js
index 43eed4c50..bbbbbd31b 100644
--- a/src/app/components/login/login.js
+++ b/src/app/components/login/login.js
@@ -11,7 +11,7 @@ app.component('login', {
     onLogin: '&',
   },
   controller: class login {
-    constructor($scope, $rootScope, $timeout, $document, $mdDialog, $mdMedia, $cookies) {
+    constructor($scope, $rootScope, $timeout, $document, $mdDialog, $mdMedia, $cookies, $peers) {
       this.$scope = $scope;
       this.$rootScope = $rootScope;
       this.$timeout = $timeout;
@@ -19,6 +19,7 @@ app.component('login', {
       this.$mdDialog = $mdDialog;
       this.$mdMedia = $mdMedia;
       this.$cookies = $cookies;
+      this.$peers = $peers;
 
       this.$scope.$watch('$ctrl.input_passphrase', this.isValidPassphrase.bind(this));
       this.$timeout(this.devTestAccount.bind(this), 200);
@@ -26,6 +27,14 @@ app.component('login', {
       this.$scope.$watch(() => this.$mdMedia('xs') || this.$mdMedia('sm'), (wantsFullScreen) => {
         this.$scope.customFullscreen = wantsFullScreen === true;
       });
+      this.$scope.$watch('$ctrl.$peers.currentPeerConfig', () => {
+        this.$peers.setActive(this.$peers.currentPeerConfig);
+      });
+      this.$scope.$watch('$ctrl.$peers.stack', (val) => {
+        if (val && !this.$peers.currentPeerConfig.node) {
+          this.$peers.setActive($peers.stack.official[0]);
+        }
+      });
     }
 
     reset() {
diff --git a/src/app/components/login/login.pug b/src/app/components/login/login.pug
index 858736d9c..ed28135bb 100644
--- a/src/app/components/login/login.pug
+++ b/src/app/components/login/login.pug
@@ -2,10 +2,15 @@ md-card
   md-card-title
     md-card-title-text
       span.md-title Sign In
-  md-card-content
+  md-card-content(flex='100', flex-gt-sm='70', flex-offset-gt-sm='15')
     form(ng-submit='$ctrl.doTheLogin()')
       md-input-container.md-block(md-is-error='$ctrl.valid === 0')
-        label Enter your passphrase
+        label.select Choose a peer
+        md-select(ng-model='$ctrl.$peers.currentPeerConfig', aria-label='Peer')
+          md-optgroup(ng-repeat='(name, peers) in $ctrl.$peers.stack', ng-if='peers.length', label='{{ name }}')
+            md-option(ng-repeat='peer in peers', ng-value='peer') {{ peer.node }}{{ peer.port ? ':' + peer.port : '' }}
+      md-input-container.md-block(md-is-error='$ctrl.valid === 0')
+        label.pass Enter your passphrase
         input(type="{{ $ctrl.show_passphrase ? 'text' : 'password' }}", ng-model='$ctrl.input_passphrase', ng-disabled='$ctrl.generatingNewPassphrase', autofocus)
       md-input-container.md-block
         md-checkbox.md-primary(ng-model="$ctrl.show_passphrase", aria-label="Show passphrase") Show passphrase
diff --git a/src/app/components/main/main.js b/src/app/components/main/main.js
index 00bd8088b..07ab7f46b 100644
--- a/src/app/components/main/main.js
+++ b/src/app/components/main/main.js
@@ -16,14 +16,6 @@ app.component('main', {
       this.error = error;
 
       this.$scope.$on('login', this.login.bind(this));
-      this.$scope.$on('peerUpdate', this.update.bind(this));
-
-      $scope.$watch('$ctrl.$peers.active', (peer, old) => {
-        if (peer && old) {
-          this.$peers.check();
-          this.$rootScope.$broadcast('peerUpdate');
-        }
-      });
     }
 
     reset() {
@@ -65,7 +57,6 @@ app.component('main', {
 
     update() {
       this.reset();
-
       return this.$peers.active.getAccountPromise(this.address)
         .then((res) => {
           this.account = res;
diff --git a/src/app/components/top/top.js b/src/app/components/top/top.js
index e846ea4b2..4cfe1bc22 100644
--- a/src/app/components/top/top.js
+++ b/src/app/components/top/top.js
@@ -6,12 +6,8 @@ app.component('top', {
     account: '<',
   },
   controller: class top {
-    constructor($peers, $scope) {
+    constructor($peers) {
       this.$peers = $peers;
-
-      $scope.$watch('$ctrl.$peers.currentPeerConfig', () => {
-        this.$peers.setActive(this.$peers.currentPeerConfig);
-      });
     }
   },
 });
diff --git a/src/app/components/top/top.pug b/src/app/components/top/top.pug
index e4b44c60c..f3672dbfc 100644
--- a/src/app/components/top/top.pug
+++ b/src/app/components/top/top.pug
@@ -9,9 +9,10 @@ md-content(layout='column', layout-gt-xs='row')
         i.material-icons.offline(ng-show='!$ctrl.$peers.online') error
         i.material-icons.online(ng-show='$ctrl.$peers.online') check circle
       span.md-title.title Peer
-      md-select(ng-model='$ctrl.$peers.currentPeerConfig', aria-label='Peer')
-        md-optgroup(ng-repeat='(name, peers) in $ctrl.$peers.stack', ng-if='peers.length', label='{{ name }}')
-          md-option(ng-repeat='peer in peers', ng-value='peer') {{ peer.node }}{{ name === 'localhost' ? ':' + peer.port : '' }}
+      div.active-peer.value
+        span(ng-bind="$ctrl.$peers.currentPeerConfig.node")
+        span(ng-if="$ctrl.$peers.currentPeerConfig.port") :
+        span(ng-bind="$ctrl.$peers.currentPeerConfig.port")
   md-card.offline-hide(flex-gt-xs=33)
     md-card-content(layout='column', layout-align='center center')
       span.md-title.title Balance
diff --git a/src/app/index.less b/src/app/index.less
index 50e3f28a4..b3f5892e6 100644
--- a/src/app/index.less
+++ b/src/app/index.less
@@ -10,3 +10,7 @@ body {
 md-card {
   margin-bottom: 20px;
 }
+login,  login md-card {
+  display: block;
+  height: auto;
+}
\ No newline at end of file
diff --git a/src/karma.conf.js b/src/karma.conf.js
index 1077ec696..a64f0f41d 100644
--- a/src/karma.conf.js
+++ b/src/karma.conf.js
@@ -95,6 +95,7 @@ module.exports = function (config) {
     // If true, Karma captures browsers, runs the tests and exits
     singleRun: !opts.live,
     client: {
+      captureConsole: true,
       mocha: {
         opts: 'test/mocha.opts', // You can set opts to equal true then plugin will load opts from default location 'test/mocha.opts'
       },
diff --git a/src/package.json b/src/package.json
index 0faca8ec2..1b6553031 100644
--- a/src/package.json
+++ b/src/package.json
@@ -52,7 +52,7 @@
     "jasmine-spec-reporter": "^3.2.0",
     "jit-grunt": "=0.10.0",
     "json-loader": "=0.5.4",
-    "karma": "^1.5.0",
+    "karma": "=1.4.1",
     "karma-babel-preprocessor": "=6.0.1",
     "karma-chai": "=0.1.0",
     "karma-chrome-launcher": "=2.0.0",
diff --git a/src/spec/spec.js b/src/spec/spec.js
index 3b7fae730..d73704e22 100644
--- a/src/spec/spec.js
+++ b/src/spec/spec.js
@@ -28,6 +28,7 @@ function checkErrorMessage(message) {
 
 function launchApp() {
   browser.ignoreSynchronization = true;
+  browser.driver.manage().window().setSize(1000, 1000);
   browser.get('http://localhost:8080#?peerStack=localhost');
 }
 
@@ -83,11 +84,15 @@ function testNewAccount() {
   launchApp();
 
   element.all(by.css('.md-button.md-primary')).get(0).click();
+  /**
+   * Generates a sequence of random pairs of x,y coordinates on the screen that simulates
+   * the movement of mouse to produce a pass phrase.
+   */
   for (let i = 0; i < 250; i++) {
     browser.actions()
     .mouseMove(element(by.css('body')), {
-      x: Math.floor(Math.random() * 1000),
-      y: Math.floor(Math.random() * 1000),
+      x: 500 + (Math.floor((((i % 2) * 2) - 1) * (249 + (Math.random() * 250)))),
+      y: 500 + (Math.floor((((i % 2) * 2) - 1) * (249 + (Math.random() * 250)))),
     }).perform();
     browser.sleep(5);
   }
@@ -120,22 +125,19 @@ function testAddress() {
 }
 
 function testPeer() {
-  login(masterAccount);
-  waitForElemAndCheckItsText('.peer md-select-value .md-text', 'localhost:4000');
+  expect(element.all(by.css('form md-select md-select-value span:first-child')).get(0).getText()).toEqual('Choose a peer');
 }
 
 function testChangePeer() {
-  login(masterAccount);
-
-  const peerElem = element(by.css('.peer md-select-value'));
-  browser.wait(EC.presenceOf(peerElem), waitTime);
+  const peerElem = element(by.css('form md-select'));
+  // browser.wait(EC.presenceOf(peerElem), waitTime);
   peerElem.click();
 
   const optionElem = element.all(by.css('md-select-menu md-optgroup md-option')).get(0);
   browser.wait(EC.presenceOf(optionElem), waitTime);
   optionElem.click();
 
-  waitForElemAndCheckItsText('.peer md-select-value .md-text', 'node01.lisk.io');
+  waitForElemAndCheckItsText('form md-select-value .md-text', 'node01.lisk.io');
 }
 
 function testShowBalance() {
@@ -177,6 +179,7 @@ function testLoadMoreTransactions() {
   const moreButton = element(by.css('transactions button.more'));
   browser.wait(EC.presenceOf(moreButton), waitTime);
   moreButton.click();
+  browser.sleep(200);
 
   expect(element.all(by.css('transactions table tbody tr')).count()).toEqual(20);
 }
@@ -184,9 +187,9 @@ function testLoadMoreTransactions() {
 describe('Lisk Nano functionality', () => {
   it('should allow to login', testLogin);
   it('should allow to logout', testLogout);
-  it('should show address', testAddress);
   it('should show peer', testPeer);
   it('should allow to change peer', testChangePeer);
+  it('should show address', testAddress);
   it('should show balance', testShowBalance);
   it('should allow to send transaction when enough funds and correct address form', testSend);
   it('should not allow to send transaction when not enough funds', testSendWithNotEnoughFunds);
diff --git a/src/test/components/login/login.spec.js b/src/test/components/login/login.spec.js
index 4371845b8..38889290a 100644
--- a/src/test/components/login/login.spec.js
+++ b/src/test/components/login/login.spec.js
@@ -32,9 +32,14 @@ describe('Login component', () => {
     expect(element.find('.md-title').text()).to.equal(HEADER_TEXT);
   });
 
-  const LABEL_TEXT = 'Enter your passphrase';
-  it(`should contain a form with label saying "${LABEL_TEXT}"`, () => {
-    expect(element.find('form label').text()).to.equal(LABEL_TEXT);
+  const PASS_LABEL_TEXT = 'Enter your passphrase';
+  it(`should contain a form input with label saying "${PASS_LABEL_TEXT}"`, () => {
+    expect(element.find('form md-input-container label.pass').text()).to.equal(PASS_LABEL_TEXT);
+  });
+
+  const SELECT_LABEL_TEXT = 'Choose a peer';
+  it(`should contain a select element with label saying "${SELECT_LABEL_TEXT}"`, () => {
+    expect(element.find('form md-input-container label.select').text()).to.equal(SELECT_LABEL_TEXT);
   });
 
   it('should contain an input field', () => {
@@ -67,6 +72,29 @@ describe('Login controller', () => {
     controller.passphrase = '';
   });
 
+  describe('controller()', () => {
+    it('should define a watcher for $ctrl.$peers.currentPeerConfig', () => {
+      $scope.$apply();
+      const peers = controller.$peers;
+      const spy = sinon.spy(peers, 'setActive');
+      peers.currentPeerConfig = peers.stack.localhost[0];
+      $scope.$apply();
+      peers.currentPeerConfig = peers.stack.official[0];
+      $scope.$apply();
+      expect(spy).to.have.been.calledWith();
+    });
+
+    it('should be able to change the active peer', () => {
+      $scope.$apply();
+      controller.$peers.setActive(controller.$peers.stack.localhost[0]);
+      $scope.$apply();
+      expect(controller.$peers.currentPeerConfig).to.equal(controller.$peers.stack.localhost[0]);
+      controller.$peers.setActive(controller.$peers.stack.official[0]);
+      $scope.$apply();
+      expect(controller.$peers.currentPeerConfig).to.equal(controller.$peers.stack.official[0]);
+    });
+  });
+
   describe('$scope.reset()', () => {
     it('makes input_passphrase empty', () => {
       const passphrase = 'TEST';
diff --git a/src/test/components/main/main.spec.js b/src/test/components/main/main.spec.js
index 172a08c1e..c663f2a27 100644
--- a/src/test/components/main/main.spec.js
+++ b/src/test/components/main/main.spec.js
@@ -28,21 +28,6 @@ describe('main component controller', () => {
     });
   });
 
-  describe('controller()', () => {
-    it.skip('sets $watch on $ctrl.$peers.active to broadcast it changed', () => {
-      // Skipped as it doesn't work
-      $scope.$apply();
-      const mock = sinon.mock(controller.$rootScope);
-      mock.expects('$broadcast').withArgs('peerUpdate').returns();
-      controller.$peers.active = { name: 'CHANGED' };
-      $scope.$apply();
-      controller.$peers.active.name = 'CHANGED AGAIN';
-      $scope.$apply();
-      mock.verify();
-      mock.restore();
-    });
-  });
-
   describe('reset()', () => {
     it('cancels $timeout', () => {
       const spy = sinon.spy(controller.$timeout, 'cancel');
diff --git a/src/webpack.config.babel.js b/src/webpack.config.babel.js
index 03a537efe..f8ef63449 100644
--- a/src/webpack.config.babel.js
+++ b/src/webpack.config.babel.js
@@ -16,6 +16,7 @@ const PATHS = {
 };
 
 const common = {
+  devtool: 'source-map',
   entry: nodeEnvironment === 'test' ? {} : {
     app: PATHS.app,
   },