diff --git a/electrum/gui/qt/wizard/wallet.py b/electrum/gui/qt/wizard/wallet.py
index 560a289ab..95f36d2dd 100644
--- a/electrum/gui/qt/wizard/wallet.py
+++ b/electrum/gui/qt/wizard/wallet.py
@@ -837,7 +837,10 @@ class WCHaveMasterKey(WalletWizardComponent):
             self.label.setText(self.message_create)
 
             def is_valid(x) -> bool:
-                return bool(keystore.from_master_key(x))
+                self.apply()
+                key_valid, message = self.wizard.validate_master_key(x, self.wizard_data['wallet_type'])
+                self.warn_label.setText(message)
+                return key_valid
         elif self.wizard_data['wallet_type'] == 'multisig':
             if 'multisig_current_cosigner' in self.wizard_data:
                 self.title = _("Add Cosigner {}").format(self.wizard_data['multisig_current_cosigner'])
@@ -846,10 +849,11 @@ class WCHaveMasterKey(WalletWizardComponent):
                 self.label.setText(self.message_create)
 
             def is_valid(x) -> bool:
-                if not keystore.is_bip32_key(x):
-                    self.warn_label.setText(_('Invalid key'))
-                    return False
                 self.apply()
+                key_valid, message = self.wizard.validate_master_key(x, self.wizard_data['wallet_type'])
+                if not key_valid:
+                    self.warn_label.setText(message)
+                    return False
                 musig_valid, errortext = self.wizard.check_multisig_constraints(self.wizard_data)
                 self.warn_label.setText(errortext)
                 if not musig_valid:
diff --git a/electrum/wizard.py b/electrum/wizard.py
index 0506fa1e4..0b34463e0 100644
--- a/electrum/wizard.py
+++ b/electrum/wizard.py
@@ -525,6 +525,40 @@ class NewWalletWizard(AbstractWizard):
 
         return seed_valid, seed_type, validation_message, can_passphrase
 
+    def validate_master_key(self, key: str, wallet_type: str):
+        # TODO: deduplicate with master key check in create_storage()
+        validation_message = ''
+        key_valid = False
+
+        if not keystore.is_master_key(key):
+            validation_message = _('Not a master key')
+        else:
+            k = keystore.from_master_key(key)
+            if wallet_type == 'standard':
+                if isinstance(k, keystore.Xpub):  # has bip32 xpub
+                    t1 = xpub_type(k.xpub)
+                    if t1 not in ['standard', 'p2wpkh', 'p2wpkh-p2sh']:  # disallow Ypub/Zpub
+                        validation_message = '%s: %s' % (_('Wrong key type'), t1)
+                    else:
+                        key_valid = True
+                elif isinstance(k, keystore.Old_KeyStore):
+                    key_valid = True
+                else:
+                    self._logger.error(f"unexpected keystore type: {type(keystore)}")
+            elif wallet_type == 'multisig':
+                if not isinstance(k, keystore.Xpub):  # old mpk?
+                    validation_message = '%s: %s' % (_('Wrong key type'), "not bip32")
+                t1 = xpub_type(k.xpub)
+                if t1 not in ['standard', 'p2wsh', 'p2wsh-p2sh']:  # disallow ypub/zpub
+                    validation_message = '%s: %s' % (_('Wrong key type'), t1)
+                else:
+                    key_valid = True
+            else:
+                validation_message = '%s: %s' % (_('Unsupported wallet type'), wallet_type)
+                self._logger.error(f'Unsupported wallet type: {wallet_type}')
+
+        return key_valid, validation_message
+
     def create_storage(self, path: str, data: dict):
         assert data['wallet_type'] in ['standard', '2fa', 'imported', 'multisig']