diff --git a/include/NetworkManager.h b/include/NetworkManager.h
index e0194b646..3a8462a28 100644
--- a/include/NetworkManager.h
+++ b/include/NetworkManager.h
@@ -495,6 +495,9 @@ typedef enum {
 	/* ModemManager not running */
 	NM_DEVICE_STATE_REASON_MODEM_MANAGER_UNAVAILABLE = 52,
 
+	/* The WiFi network could not be found */
+	NM_DEVICE_STATE_REASON_SSID_NOT_FOUND = 53,
+
 	/* Unused */
 	NM_DEVICE_STATE_REASON_LAST = 0xFFFF
 } NMDeviceStateReason;
diff --git a/introspection/nm-device.xml b/introspection/nm-device.xml
index 240cbd314..54fc73f7c 100644
--- a/introspection/nm-device.xml
+++ b/introspection/nm-device.xml
@@ -564,6 +564,11 @@
           ModemManager was not running or quit unexpectedly.
         </tp:docstring>
       </tp:enumvalue>
+      <tp:enumvalue suffix="SSID_NOT_FOUND" value="53">
+        <tp:docstring>
+          The 802.11 Wi-Fi network could not be found.
+        </tp:docstring>
+      </tp:enumvalue>
     </tp:enum>
 
     <tp:struct name="NM_DEVICE_STATE_REASON_STRUCT">
diff --git a/src/nm-device-wifi.c b/src/nm-device-wifi.c
index c920d9a64..db8ee8aba 100644
--- a/src/nm-device-wifi.c
+++ b/src/nm-device-wifi.c
@@ -150,6 +150,7 @@ struct _NMDeviceWifiPrivate {
 
 	Supplicant        supplicant;
 	WifiData *        wifi_data;
+	gboolean          ssid_found;
 
 	guint32           failed_link_count;
 	guint             periodic_source_id;
@@ -2208,7 +2209,8 @@ link_timeout_cb (gpointer user_data)
 
 	nm_device_state_changed (dev,
 	                         NM_DEVICE_STATE_FAILED,
-	                         NM_DEVICE_STATE_REASON_SUPPLICANT_TIMEOUT);
+	                         priv->ssid_found ? NM_DEVICE_STATE_REASON_SUPPLICANT_TIMEOUT :
+	                                            NM_DEVICE_STATE_REASON_SSID_NOT_FOUND);
 	return FALSE;
 }
 
@@ -2302,6 +2304,11 @@ supplicant_iface_state_cb (NMSupplicantInterface *iface,
 	devstate = nm_device_get_state (device);
 	scanning = nm_supplicant_interface_get_scanning (iface);
 
+	/* In these states we know the supplicant is actually talking to something */
+	if (   new_state >= NM_SUPPLICANT_INTERFACE_STATE_ASSOCIATING
+	    && new_state <= NM_SUPPLICANT_INTERFACE_STATE_COMPLETED)
+		priv->ssid_found = TRUE;
+
 	switch (new_state) {
 	case NM_SUPPLICANT_INTERFACE_STATE_READY:
 		priv->scan_interval = SCAN_INTERVAL_MIN;
@@ -2360,8 +2367,10 @@ supplicant_iface_state_cb (NMSupplicantInterface *iface,
 		 * the scan but will be re-established when the scan is done.
 		 */
 		if (devstate == NM_DEVICE_STATE_ACTIVATED) {
-			if (priv->link_timeout_id == 0)
+			if (priv->link_timeout_id == 0) {
 				priv->link_timeout_id = g_timeout_add_seconds (scanning ? 30 : 15, link_timeout_cb, self);
+				priv->ssid_found = FALSE;
+			}
 		}
 		break;
 	case NM_SUPPLICANT_INTERFACE_STATE_DOWN:
@@ -2564,6 +2573,7 @@ supplicant_connection_timeout_cb (gpointer user_data)
 {
 	NMDevice *dev = NM_DEVICE (user_data);
 	NMDeviceWifi *self = NM_DEVICE_WIFI (user_data);
+	NMDeviceWifiPrivate *priv = NM_DEVICE_WIFI_GET_PRIVATE (self);
 	NMAccessPoint *ap;
 	NMActRequest *req;
 	NMConnection *connection;
@@ -2602,7 +2612,7 @@ supplicant_connection_timeout_cb (gpointer user_data)
 		return FALSE;
 	}
 
-	if (is_encrypted (ap, connection)) {
+	if (priv->ssid_found && is_encrypted (ap, connection)) {
 		guint64 timestamp = 0;
 		gboolean new_secrets = TRUE;
 
@@ -2635,7 +2645,8 @@ supplicant_connection_timeout_cb (gpointer user_data)
 		             "failing activation.",
 		             nm_device_get_iface (dev));
 		nm_device_state_changed (dev, NM_DEVICE_STATE_FAILED,
-		                         NM_DEVICE_STATE_REASON_SUPPLICANT_TIMEOUT);
+		                         priv->ssid_found ? NM_DEVICE_STATE_REASON_SUPPLICANT_TIMEOUT :
+		                                            NM_DEVICE_STATE_REASON_SSID_NOT_FOUND);
 	}
 
 	return FALSE;
@@ -2990,6 +3001,8 @@ real_act_stage2_config (NMDevice *dev, NMDeviceStateReason *reason)
 		             iface, nm_connection_get_id (connection));
 	}
 
+	priv->ssid_found = FALSE;
+
 	config = build_supplicant_config (self, connection, ap);
 	if (config == NULL) {
 		nm_log_err (LOGD_DEVICE | LOGD_WIFI,
diff --git a/src/nm-device.c b/src/nm-device.c
index 72b689079..973758b4d 100644
--- a/src/nm-device.c
+++ b/src/nm-device.c
@@ -4510,6 +4510,8 @@ reason_to_string (NMDeviceStateReason reason)
 		return "br2684-bridge-failed";
 	case NM_DEVICE_STATE_REASON_MODEM_MANAGER_UNAVAILABLE:
 		return "modem-manager-unavailable";
+	case NM_DEVICE_STATE_REASON_SSID_NOT_FOUND:
+		return "SSID not found";
 	default:
 		break;
 	}