diff --git a/cms/djangoapps/contentstore/features/signup.feature b/cms/djangoapps/contentstore/features/signup.feature
index 92ff0d393d..1fe254adaa 100644
--- a/cms/djangoapps/contentstore/features/signup.feature
+++ b/cms/djangoapps/contentstore/features/signup.feature
@@ -27,3 +27,18 @@ Feature: CMS.Sign in
     When I fill in and submit the signin form
     And I wait for "2" seconds
     Then I should see that the path is "/course/"
+
+  Scenario: Login with mistyped credentials
+    Given I have opened a new course in Studio
+    And I am not logged in
+    And I visit the Studio homepage
+    When I click the link with the text "Sign In"
+    Then I should see that the path is "/signin"
+    And I should not see a login error message
+    And I fill in and submit the signin form incorrectly
+    Then I should see a login error message
+    And I edit the password field
+    Then I should not see a login error message
+    And I submit the signin form
+    And I wait for "2" seconds
+    Then I should see that the path is "/course/"
diff --git a/cms/djangoapps/contentstore/features/signup.py b/cms/djangoapps/contentstore/features/signup.py
index 26374fe963..014ff2eb69 100644
--- a/cms/djangoapps/contentstore/features/signup.py
+++ b/cms/djangoapps/contentstore/features/signup.py
@@ -2,6 +2,7 @@
 # pylint: disable=redefined-outer-name
 
 from lettuce import world, step
+from nose.tools import assert_true, assert_false  # pylint: disable=no-name-in-module
 
 
 @step('I fill in the registration form$')
@@ -36,3 +37,36 @@ def i_fill_in_the_signin_form(step):
         login_form.find_by_name('password').fill('test')
         login_form.find_by_name('submit').click()
     world.retry_on_exception(fill_login_form)
+
+
+@step(u'I should( not)? see a login error message$')
+def i_should_see_a_login_error(step, should_not_see):
+    if should_not_see:
+        # the login error may be absent or invisible. Check absence first,
+        # because css_visible will throw an exception if the element is not present
+        if world.is_css_present('div#login_error'):
+            assert_false(world.css_visible('div#login_error'))
+    else:
+        assert_true(world.css_visible('div#login_error'))
+
+
+@step(u'I fill in and submit the signin form incorrectly$')
+def i_goof_in_the_signin_form(step):
+    def fill_login_form():
+        login_form = world.browser.find_by_css('form#login_form')
+        login_form.find_by_name('email').fill('robot+studio@edx.org')
+        login_form.find_by_name('password').fill('oops')
+        login_form.find_by_name('submit').click()
+    world.retry_on_exception(fill_login_form)
+
+
+@step(u'I edit the password field$')
+def i_edit_the_password_field(step):
+    password_css = 'form#login_form input#password'
+    world.css_fill(password_css, 'test')
+
+
+@step(u'I submit the signin form$')
+def i_submit_the_signin_form(step):
+    submit_css = 'form#login_form button#submit'
+    world.css_click(submit_css)
diff --git a/cms/static/js/factories/login.js b/cms/static/js/factories/login.js
index 5115406044..da35af0b28 100644
--- a/cms/static/js/factories/login.js
+++ b/cms/static/js/factories/login.js
@@ -12,6 +12,15 @@ define(['jquery.cookie', 'utility'], function() {
             });
         }
 
+        // Clear the login error message when credentials are edited
+        $('input#email').on('input',function() {
+            $('#login_error').removeClass('is-shown');
+        });
+
+        $('input#password').on('input',function() {
+            $('#login_error').removeClass('is-shown');
+        });
+
         $('form#login_form').submit(function(event) {
             event.preventDefault();
             var submit_data = $('#login_form').serialize();