diff --git a/osu.Game.Tests/Visual/Online/TestSceneAccountCreationOverlay.cs b/osu.Game.Tests/Visual/Online/TestSceneAccountCreationOverlay.cs
index b9d7312233..58bba28d87 100644
--- a/osu.Game.Tests/Visual/Online/TestSceneAccountCreationOverlay.cs
+++ b/osu.Game.Tests/Visual/Online/TestSceneAccountCreationOverlay.cs
@@ -4,14 +4,17 @@
 #nullable disable
 
 using System.Linq;
+using System.Net;
 using NUnit.Framework;
 using osu.Framework.Allocation;
 using osu.Framework.Bindables;
 using osu.Framework.Graphics;
 using osu.Framework.Graphics.Containers;
+using osu.Framework.Graphics.UserInterface;
 using osu.Framework.Testing;
 using osu.Game.Graphics.UserInterface;
 using osu.Game.Online.API;
+using osu.Game.Online.API.Requests;
 using osu.Game.Online.API.Requests.Responses;
 using osu.Game.Overlays;
 using osu.Game.Overlays.AccountCreation;
@@ -94,8 +97,66 @@ namespace osu.Game.Tests.Visual.Online
                                                          .ChildrenOfType<SettingsButton>().Single().TriggerClick());
             AddUntilStep("verification screen is present", () => accountCreation.ChildrenOfType<ScreenEmailVerification>().SingleOrDefault()?.IsPresent == true);
 
-            AddStep("verify", () => ((DummyAPIAccess)API).AuthenticateSecondFactor("abcdefgh"));
+            AddStep("verify", () =>
+                accountCreation.ChildrenOfType<ScreenEmailVerification>().Single().ChildrenOfType<TextBox>().Single().Current.Value = "abcdefgh");
             AddUntilStep("overlay is hidden", () => accountCreation.State.Value == Visibility.Hidden);
         }
+
+        [Test]
+        public void TestFailedVerification()
+        {
+            AddStep("set up API", () => ((DummyAPIAccess)API).HandleRequest = req =>
+            {
+                switch (req)
+                {
+                    case VerifySessionRequest verifySessionRequest:
+                        if (verifySessionRequest.VerificationKey == "abcdefgh")
+                            verifySessionRequest.TriggerSuccess();
+                        else
+                        {
+                            Scheduler.AddDelayed(
+                                () => verifySessionRequest.TriggerFailure(new APIException("Incorrect verification code.", null, HttpStatusCode.UnprocessableEntity)),
+                                1000);
+                        }
+
+                        return true;
+
+                    default:
+                        return false;
+                }
+            });
+
+            AddStep("log out", () => API.Logout());
+
+            AddStep("show manually", () => accountCreation.Show());
+            AddUntilStep("overlay is visible", () => accountCreation.State.Value, () => Is.EqualTo(Visibility.Visible));
+
+            AddStep("click button", () => accountCreation.ChildrenOfType<SettingsButton>().Single().TriggerClick());
+            AddUntilStep("warning screen is present", () => accountCreation.ChildrenOfType<ScreenWarning>().SingleOrDefault()?.IsPresent, () => Is.True);
+
+            AddStep("proceed", () => accountCreation.ChildrenOfType<DangerousSettingsButton>().Single().TriggerClick());
+            AddUntilStep("entry screen is present", () => accountCreation.ChildrenOfType<ScreenEntry>().SingleOrDefault()?.IsPresent, () => Is.True);
+
+            AddStep("input details", () =>
+            {
+                var entryScreen = accountCreation.ChildrenOfType<ScreenEntry>().Single();
+                entryScreen.ChildrenOfType<OsuTextBox>().ElementAt(0).Text = "new_user";
+                entryScreen.ChildrenOfType<OsuTextBox>().ElementAt(1).Text = "new.user@fake.mail";
+                entryScreen.ChildrenOfType<OsuTextBox>().ElementAt(2).Text = "password";
+            });
+            AddStep("click button", () => accountCreation.ChildrenOfType<ScreenEntry>().Single()
+                                                         .ChildrenOfType<SettingsButton>().Single().TriggerClick());
+            AddUntilStep("verification screen is present", () => accountCreation.ChildrenOfType<ScreenEmailVerification>().SingleOrDefault()?.IsPresent, () => Is.True);
+
+            AddStep("fail to verify", () =>
+                accountCreation.ChildrenOfType<ScreenEmailVerification>().Single().ChildrenOfType<TextBox>().Single().Current.Value = "abcdefff");
+            AddUntilStep("overlay is still visible", () => accountCreation.State.Value, () => Is.EqualTo(Visibility.Visible));
+            AddUntilStep("text box back to enabled",
+                () => accountCreation.ChildrenOfType<ScreenEmailVerification>().Single().ChildrenOfType<TextBox>().Single().Current.Disabled, () => Is.False);
+
+            AddStep("verify", () =>
+                accountCreation.ChildrenOfType<ScreenEmailVerification>().Single().ChildrenOfType<TextBox>().Single().Current.Value = "abcdefgh");
+            AddUntilStep("overlay is hidden", () => accountCreation.State.Value, () => Is.EqualTo(Visibility.Hidden));
+        }
     }
 }
diff --git a/osu.Game/Overlays/AccountCreation/ScreenEntry.cs b/osu.Game/Overlays/AccountCreation/ScreenEntry.cs
index c801e9304f..f7f5e6728b 100644
--- a/osu.Game/Overlays/AccountCreation/ScreenEntry.cs
+++ b/osu.Game/Overlays/AccountCreation/ScreenEntry.cs
@@ -227,7 +227,7 @@ namespace osu.Game.Overlays.AccountCreation
 
                     apiState.BindValueChanged(state =>
                     {
-                        if (state.NewValue == APIState.RequiresSecondFactorAuth)
+                        if (this.IsCurrentScreen() && state.NewValue == APIState.RequiresSecondFactorAuth)
                             this.Push(new ScreenEmailVerification());
                     });
 
diff --git a/osu.Game/Overlays/Login/SecondFactorAuthForm.cs b/osu.Game/Overlays/Login/SecondFactorAuthForm.cs
index 38025de1d9..b26cbcee5d 100644
--- a/osu.Game/Overlays/Login/SecondFactorAuthForm.cs
+++ b/osu.Game/Overlays/Login/SecondFactorAuthForm.cs
@@ -3,6 +3,7 @@
 
 using System.Threading.Tasks;
 using osu.Framework.Allocation;
+using osu.Framework.Bindables;
 using osu.Framework.Graphics;
 using osu.Framework.Graphics.Containers;
 using osu.Framework.Input;
@@ -28,6 +29,7 @@ namespace osu.Game.Overlays.Login
         private LoadingLayer loading = null!;
         private FillFlowContainer contentFlow = null!;
         private OsuTextBox codeTextBox = null!;
+        private readonly IBindable<APIState> apiState = new Bindable<APIState>();
 
         [Resolved]
         private IAPIProvider api { get; set; } = null!;
@@ -71,13 +73,43 @@ namespace osu.Game.Overlays.Login
                 }
             };
 
+            updateLastError();
+
+            showContent(api.SessionVerificationMethod!.Value);
+            apiState.BindTo(api.State);
+        }
+
+        private void updateLastError()
+        {
             if (api.LastLoginError?.Message is string error)
             {
                 errorText.Alpha = 1;
                 errorText.AddErrors(new[] { error });
             }
+        }
 
-            showContent(api.SessionVerificationMethod!.Value);
+        protected override void LoadComplete()
+        {
+            base.LoadComplete();
+
+            apiState.BindValueChanged(val =>
+            {
+                // this handles failed verifications.
+                // in the case of failed verifications, `apiState` will briefly change to `Connecting` and then revert to `RequiresSecondFactorAuth`.
+                // the login overlay doesn't need this logic as it will construct a new instance of this screen anyway,
+                // but the *registration* overlay has no such logic and thus needs special handling.
+                if (val.NewValue == APIState.RequiresSecondFactorAuth)
+                {
+                    // scheduling required as `APIAccess.State` value can be changed from threads that aren't update
+                    // see: `APIAccess.run()` (which is given a dedicated thread) calls `APIAccess.attemptConnect()` which mutates `APIAccess.State`
+                    Schedule(() =>
+                    {
+                        codeTextBox.Current.Disabled = false;
+                        codeTextBox.Current.Value = string.Empty;
+                        updateLastError();
+                    });
+                }
+            });
         }
 
         private void showContent(SessionVerificationMethod sessionVerificationMethod)