diff --git a/src/SuggestKeyRestoreHandler.js b/src/SuggestKeyRestoreHandler.js
new file mode 100644
index 00000000000..3383889c1e1
--- /dev/null
+++ b/src/SuggestKeyRestoreHandler.js
@@ -0,0 +1,96 @@
+/*
+Copyright 2018 New Vector Ltd
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+import sdk from './index';
+import Modal from './Modal';
+
+export default class SuggestKeyRestoreHandler {
+    constructor(matrixClient) {
+        this._matrixClient = matrixClient;
+    }
+
+    handleSuggestKeyRestore() {
+        const onVerifyDevice = () => {
+            const DeviceVerifyDialog = sdk.getComponent('views.dialogs.DeviceVerifyDialog');
+
+            Modal.createTrackedDialog('Key Restore', 'Starting verification', DeviceVerifyDialog, {
+                // userId: this.props.userId,
+                // device: this.state.deviceInfo,
+                onFinished: (verified) => {
+                    if (verified) {
+                        this.props.onFinished();
+                    }
+                },
+            });
+        };
+
+        const onRecoverFromBackup = () => {
+             // XXX: we need this so that you can get at it from UserSettings too
+             // * prompt for recovery key
+             // * Download the current backup version info from the server and check the key decrypts it okay.
+             // * Check that the public key for that backup version matches the recovery key
+             // * show a spinner
+             // * Download all the existing keys from the server
+             // * Decrypt them using the recovery key
+             // * Add them to the local store (which encrypts them as normal with "DEFAULT KEY"
+             // * Enable incremental backups for this device.
+        };
+
+        const onIgnoreSuggestion = () => {
+        };
+
+        const onFinished = () => {
+            this.suggestBackup();
+        };
+
+        // FIXME: need a way to know if an account has ever touched E2E before.
+        // Perhaps we can extend toDevice to include a flag if it's the first time the
+        // server has ever sent a room_key to a client or something?
+        const virginAccount = false;
+
+        if (virginAccount) {
+            this.suggestBackup();
+            return;
+        }
+
+        const SuggestKeyRestoreDialog = sdk.getComponent("dialogs.SuggestKeyRestoreDialog");
+        Modal.createTrackedDialog('Key Restore', 'Key Restore', SuggestKeyRestoreDialog, {
+            matrixClient: this._matrixClient,
+            isOnlyDevice: false, // FIXME
+            hasOnlineBackup: false, // FIXME
+            onVerifyDevice: onVerifyDevice,
+            onRecoverFromBackup: onRecoverFromBackup,
+            onIgnoreSuggestion: onIgnoreSuggestion,
+            onFinished: onFinished,
+        });
+    }
+
+    suggestBackup() {
+        if (hasOnlineBackup) return;
+
+        const onStartNewBackup = () => {
+          // XXX: we need this so that you can get at it from UserSettings too
+          // * Upload all their existing keys from their session store to the backup using the bulk upload API.
+          //   (Having re-encrypted them using the backup keypair rather than the static one used to store them on disk)
+        };
+
+        const SuggestKeyBackupDialog = sdk.getComponent("dialogs.SuggestKeyBackupDialog");
+        Modal.createTrackedDialog('Key Backup', 'Key Backup', SuggestKeyBackupDialog, {
+            onStartNewBackup: onStartNewBackup,
+        });        
+    }    
+}
+
diff --git a/src/components/structures/MatrixChat.js b/src/components/structures/MatrixChat.js
index 96e721f7ca1..4337cdfdbb4 100644
--- a/src/components/structures/MatrixChat.js
+++ b/src/components/structures/MatrixChat.js
@@ -1272,6 +1272,12 @@ export default React.createClass({
         cli.on("crypto.roomKeyRequestCancellation", (req) => {
             krh.handleKeyRequestCancellation(req);
         });
+
+        const skrh = new SuggestKeyRestoreHandler(cli);
+        cli.on("crypto.suggestKeyRestore", () => {
+            skrh.handleSuggestKeyRestore();
+        });
+
         cli.on("Room", (room) => {
             if (MatrixClientPeg.get().isCryptoEnabled()) {
                 const blacklistEnabled = SettingsStore.getValueAt(
diff --git a/src/components/views/dialogs/SuggestKeyBackupDialog.js b/src/components/views/dialogs/SuggestKeyBackupDialog.js
new file mode 100644
index 00000000000..c2d6cfc60f5
--- /dev/null
+++ b/src/components/views/dialogs/SuggestKeyBackupDialog.js
@@ -0,0 +1,68 @@
+/*
+Copyright 2018 New Vector Ltd
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+import Modal from '../../../Modal';
+import React from 'react';
+import PropTypes from 'prop-types';
+import sdk from '../../../index';
+
+import { _t, _td } from '../../../languageHandler';
+
+/**
+ * Dialog which asks the user whether they want to restore megolm keys
+ * from various sources when they first start using E2E on a new device.
+ */
+export default React.createClass({
+    propTypes: {
+        onStartNewBackup: PropTypes.func.isRequired,
+    },
+
+    render: function() {
+        const BaseDialog = sdk.getComponent('views.dialogs.BaseDialog');
+
+        return (
+            <BaseDialog className='mx_SuggestKeyRestoreDialog'
+                onFinished={this.props.onFinished}
+                title={_t('Backup encryption keys on your server?')}
+            >
+            <div>
+                <p>To avoid ever losing your encrypted message history, you
+                can save your encryption keys on the server, protected by a recovery key.
+                </p>
+                <p>To maximise security, your recovery key is never stored by the app,
+                so you must store it yourself somewhere safe.</p>
+                <p>
+                <p>Warning: storing your encryption keys on the server means that
+                if someone gains access to your account and also steals your recovery key,
+                they will be able to read all of your encrypted conversation history.
+                </p>
+
+                <p>Do you wish to generate a recovery key and backup your encryption
+                keys on the server?
+
+                <div className="mx_Dialog_buttons">
+                    <button onClick={this.props.onStartNewBackup}>
+                        { _t("Generate recovery key and enable online backups") }
+                    </button>
+                    <button onClick={this.props.onFinished}>
+                        { _t("I'll stick to manual backups") }
+                    </button>
+                </div>
+            </div>
+            </BaseDialog>
+        );
+    },
+});
diff --git a/src/components/views/dialogs/SuggestKeyRestoreDialog.js b/src/components/views/dialogs/SuggestKeyRestoreDialog.js
new file mode 100644
index 00000000000..3419b6235c7
--- /dev/null
+++ b/src/components/views/dialogs/SuggestKeyRestoreDialog.js
@@ -0,0 +1,77 @@
+/*
+Copyright 2018 New Vector Ltd
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+import Modal from '../../../Modal';
+import React from 'react';
+import PropTypes from 'prop-types';
+import sdk from '../../../index';
+
+import { _t, _td } from '../../../languageHandler';
+
+/**
+ * Dialog which asks the user whether they want to restore megolm keys
+ * from various sources when they first start using E2E on a new device.
+ */
+export default React.createClass({
+    propTypes: {
+        matrixClient: PropTypes.object.isRequired,
+        isOnlyDevice: PropTypes.bool.isRequired,
+        hasOnlineBackup: PropTypes.bool.isRequired,
+        onVerifyDevice: PropTypes.func.isRequired,
+        onImportBackup: PropTypes.func.isRequired,
+        onRecoverFromBackup: PropTypes.func.isRequired,
+        onIgnoreSuggestion: PropTypes.func.isRequired,
+    },
+
+    render: function() {
+        const BaseDialog = sdk.getComponent('views.dialogs.BaseDialog');
+
+        return (
+            <BaseDialog className='mx_SuggestKeyRestoreDialog'
+                onFinished={this.props.onFinished}
+                title={_t('Restore encryption keys')}
+            >
+                <div>
+                    <p>We don't have a way to decrypt older messages on this device.</p>
+
+                    <p>Your options are:</p>
+
+                    <li>
+                        { !this.props.isOnlyDevice ? <ul>Verify this device from one or more of your other ones to automatically sync keys</ul>: '' }
+                        { this.props.hasOnlineBackup ? <ul>Enter your recovery key to restore encryption keys from your online backup</ul> : '' }
+                        <ul>Import encryption keys from an offline backup</ul>
+                        <ul>Continue without restoring keys, syncing keys from your other devices on a best effort basis</ul>
+                    </li>
+
+                    <div className="mx_Dialog_buttons">
+                        <button onClick={this.props.onVerifyDevice}>
+                            { _t('Verify this device') }
+                        </button>
+                        <button onClick={this.props.onRecoverFromBackup}>
+                            { _t('Restore from online backup') }
+                        </button>
+                        <button onClick={this.props.onImportBackup}>
+                            { _t('Restore from offline backup') }
+                        </button>
+                        <button onClick={this.props.onIgnoreClicked}>
+                            { _t('Ignore request') }
+                        </button>
+                    </div>
+                </div>
+            </BaseDialog>
+        );
+    },
+});