diff --git a/browser/ui/webui/sync/sync_ui.cc b/browser/ui/webui/sync/sync_ui.cc
index 1b5dd093834d..9250244fe734 100644
--- a/browser/ui/webui/sync/sync_ui.cc
+++ b/browser/ui/webui/sync/sync_ui.cc
@@ -45,6 +45,8 @@ class SyncUIDOMHandler : public WebUIMessageHandler,
   void DeleteDevice(const base::ListValue* args);
   void ResetSync(const base::ListValue* args);
 
+  void OnSyncSetupError(brave_sync::BraveSyncService* sync_service,
+                        const std::string& error) override;
   void OnSyncStateChanged(brave_sync::BraveSyncService *sync_service) override;
   void OnHaveSyncWords(brave_sync::BraveSyncService *sync_service,
                        const std::string& sync_words) override;
@@ -193,6 +195,14 @@ void SyncUIDOMHandler::ResetSync(const base::ListValue* args) {
   sync_service_->OnResetSync();
 }
 
+void SyncUIDOMHandler::OnSyncSetupError(
+    brave_sync::BraveSyncService* sync_service,
+    const std::string& error) {
+
+  web_ui()->CallJavascriptFunctionUnsafe(
+      "sync_ui_exports.syncSetupError", base::Value(error));
+}
+
 void SyncUIDOMHandler::OnSyncStateChanged(
     brave_sync::BraveSyncService *sync_service) {
   LoadSyncSettingsView();
diff --git a/components/brave_sync/brave_sync_service_impl.cc b/components/brave_sync/brave_sync_service_impl.cc
index 270f3f7d374b..07855a2b3c86 100644
--- a/components/brave_sync/brave_sync_service_impl.cc
+++ b/components/brave_sync/brave_sync_service_impl.cc
@@ -182,6 +182,9 @@ void BraveSyncServiceImpl::OnSetupSyncNewToSync(
     return;
   }
 
+  sync_words_.clear();  // If the previous attempt was connect to sync chain
+                        // and failed to receive save-init-data
+
   sync_prefs_->SetThisDeviceName(device_name);
   initializing_ = true;
 
@@ -288,7 +291,7 @@ void BraveSyncServiceImpl::OnSyncSetupError(const std::string& error) {
   if (!sync_initialized_) {
     sync_prefs_->Clear();
   }
-  OnSyncDebug(error);
+  NotifySyncSetupError(error);
 }
 
 void BraveSyncServiceImpl::OnGetInitData(const std::string& sync_version) {
@@ -609,6 +612,12 @@ void BraveSyncServiceImpl::NotifyLogMessage(const std::string& message) {
   DLOG(INFO) << message;
 }
 
+void BraveSyncServiceImpl::NotifySyncSetupError(const std::string& error) {
+  DCHECK_CURRENTLY_ON(content::BrowserThread::UI);
+  for (auto& observer : observers_)
+    observer.OnSyncSetupError(this, error);
+}
+
 void BraveSyncServiceImpl::NotifySyncStateChanged() {
   DCHECK_CURRENTLY_ON(content::BrowserThread::UI);
   for (auto& observer : observers_)
diff --git a/components/brave_sync/brave_sync_service_impl.h b/components/brave_sync/brave_sync_service_impl.h
index a81d147ff08e..4b270d9054e1 100644
--- a/components/brave_sync/brave_sync_service_impl.h
+++ b/components/brave_sync/brave_sync_service_impl.h
@@ -157,6 +157,7 @@ class BraveSyncServiceImpl : public BraveSyncService,
     const bool is_truncated );
 
   void NotifyLogMessage(const std::string& message);
+  void NotifySyncSetupError(const std::string& error);
   void NotifySyncStateChanged();
   void NotifyHaveSyncWords(const std::string& sync_words);
 
diff --git a/components/brave_sync/brave_sync_service_observer.h b/components/brave_sync/brave_sync_service_observer.h
index 2151b0cf1b20..e016c89631a5 100644
--- a/components/brave_sync/brave_sync_service_observer.h
+++ b/components/brave_sync/brave_sync_service_observer.h
@@ -13,6 +13,8 @@ class BraveSyncServiceObserver : public base::CheckedObserver {
  public:
   ~BraveSyncServiceObserver() override {}
 
+  virtual void OnSyncSetupError(BraveSyncService* sync_service,
+                                const std::string& error) {}
   virtual void OnSyncStateChanged(BraveSyncService* sync_service) {}
   virtual void OnHaveSyncWords(BraveSyncService* sync_service,
                                const std::string& sync_words) {}
diff --git a/components/brave_sync/brave_sync_service_unittest.cc b/components/brave_sync/brave_sync_service_unittest.cc
index 778e9da64039..19a01c09d57a 100644
--- a/components/brave_sync/brave_sync_service_unittest.cc
+++ b/components/brave_sync/brave_sync_service_unittest.cc
@@ -92,6 +92,7 @@ class MockBraveSyncServiceObserver : public BraveSyncServiceObserver {
  public:
   MockBraveSyncServiceObserver() {}
 
+  MOCK_METHOD2(OnSyncSetupError, void(BraveSyncService*, const std::string&));
   MOCK_METHOD1(OnSyncStateChanged, void(BraveSyncService*));
   MOCK_METHOD2(OnHaveSyncWords, void(BraveSyncService*, const std::string&));
 };
@@ -296,6 +297,11 @@ TEST_F(BraveSyncServiceTest, GetSyncWords) {
   sync_service()->OnSyncWordsPrepared(words);
 }
 
+TEST_F(BraveSyncServiceTest, SyncSetupError) {
+  EXPECT_CALL(*observer(), OnSyncSetupError(sync_service(), _)).Times(1);
+  sync_service()->OnSetupSyncHaveCode("", "");
+}
+
 TEST_F(BraveSyncServiceTest, GetSeed) {
   EXPECT_CALL(*sync_client(), OnSyncEnabledChanged);
   EXPECT_CALL(*observer(), OnSyncStateChanged(sync_service())).Times(AtLeast(2));
diff --git a/components/brave_sync/extension/background.js b/components/brave_sync/extension/background.js
index 306be29c723f..afcc65c852ac 100644
--- a/components/brave_sync/extension/background.js
+++ b/components/brave_sync/extension/background.js
@@ -249,7 +249,7 @@ class InjectedObject {
         chrome.braveSync.saveInitData(arg1/*seed*/, deviceId);
         break;
       case "sync-ready":
-        console.log(`"save-init-data"`);
+        console.log(`"sync-ready"`);
         chrome.braveSync.syncReady();
         break;
       case "get-existing-objects":
diff --git a/components/brave_sync/ui/brave_sync.tsx b/components/brave_sync/ui/brave_sync.tsx
index e10b4ddb5c9e..a3a0c56ca43f 100644
--- a/components/brave_sync/ui/brave_sync.tsx
+++ b/components/brave_sync/ui/brave_sync.tsx
@@ -60,12 +60,17 @@ window.cr.define('sync_ui_exports', function () {
     getActions().onLogMessage(message)
   }
 
+  function syncSetupError(error: string) {
+    alert('Sync setup error: ' + error)
+  }
+
   return {
     initialize,
     showSettings,
     haveSyncWords,
     haveSeedForQrCode,
-    logMessage
+    logMessage,
+    syncSetupError
   }
 })