diff --git a/openpype/modules/settings_action.py b/openpype/modules/settings_action.py
index 1035dc0dcd1..9db4a252bc6 100644
--- a/openpype/modules/settings_action.py
+++ b/openpype/modules/settings_action.py
@@ -114,6 +114,7 @@ def initialize(self, _modules_settings):
 
         # Tray attributes
         self.settings_window = None
+        self._first_trigger = True
 
     def connect_with_modules(self, *_a, **_kw):
         return
@@ -153,6 +154,9 @@ def show_settings_window(self):
         self.settings_window.raise_()
         self.settings_window.activateWindow()
 
-        # Reset content if was not visible
-        if not was_visible:
+        # Do not reset if it's first trigger of action
+        if self._first_trigger:
+            self._first_trigger = False
+        elif not was_visible:
+            # Reset content if was not visible
             self.settings_window.reset()
diff --git a/openpype/tools/settings/local_settings/window.py b/openpype/tools/settings/local_settings/window.py
index 69562d0b1f2..9e8fd89b232 100644
--- a/openpype/tools/settings/local_settings/window.py
+++ b/openpype/tools/settings/local_settings/window.py
@@ -168,9 +168,6 @@ def __init__(self, parent=None):
 
         scroll_widget = QtWidgets.QScrollArea(self)
         scroll_widget.setObjectName("GroupWidget")
-        settings_widget = LocalSettingsWidget(scroll_widget)
-
-        scroll_widget.setWidget(settings_widget)
         scroll_widget.setWidgetResizable(True)
 
         footer = QtWidgets.QWidget(self)
@@ -191,7 +188,12 @@ def __init__(self, parent=None):
         save_btn.clicked.connect(self._on_save_clicked)
         reset_btn.clicked.connect(self._on_reset_clicked)
 
-        self.settings_widget = settings_widget
+        # Do not create local settings widget in init phase as it's using
+        #   settings objects that must be OK to be able create this widget
+        #   - we want to show dialog if anything goes wrong
+        #   - without reseting nothing is shown
+        self._settings_widget = None
+        self._scroll_widget = scroll_widget
         self.reset_btn = reset_btn
         self.save_btn = save_btn
 
@@ -203,13 +205,53 @@ def showEvent(self, event):
     def reset(self):
         if self._reset_on_show:
             self._reset_on_show = False
-        value = get_local_settings()
-        self.settings_widget.update_local_settings(value)
+
+        error_msg = None
+        try:
+            # Create settings widget if is not created yet
+            if self._settings_widget is None:
+                self._settings_widget = LocalSettingsWidget(
+                    self._scroll_widget
+                )
+                self._scroll_widget.setWidget(self._settings_widget)
+
+            value = get_local_settings()
+            self._settings_widget.update_local_settings(value)
+
+        except Exception as exc:
+            error_msg = str(exc)
+
+        crashed = error_msg is not None
+        # Enable/Disable save button if crashed or not
+        self.save_btn.setEnabled(not crashed)
+        # Show/Hide settings widget if crashed or not
+        if self._settings_widget:
+            self._settings_widget.setVisible(not crashed)
+
+        if not crashed:
+            return
+
+        # Show message with error
+        title = "Something went wrong"
+        msg = (
+            "Bug: Loading of settings failed."
+            " Please contact your project manager or OpenPype team."
+            "\n\nError message:\n{}"
+        ).format(error_msg)
+
+        dialog = QtWidgets.QMessageBox(
+            QtWidgets.QMessageBox.Critical,
+            title,
+            msg,
+            QtWidgets.QMessageBox.Ok,
+            self
+        )
+        dialog.exec_()
 
     def _on_reset_clicked(self):
         self.reset()
 
     def _on_save_clicked(self):
-        value = self.settings_widget.settings_value()
+        value = self._settings_widget.settings_value()
         save_local_settings(value)
         self.reset()