diff --git a/Cargo.lock b/Cargo.lock
index 500fcca3..6a2c8a48 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -102,6 +102,17 @@ version = "1.0.68"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "2cb2f989d18dd141ab8ae82f64d1a8cdd37e0840f73a406896cf5e99502fab61"
 
+[[package]]
+name = "argon2"
+version = "0.5.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "95c2fcf79ad1932ac6269a738109997a83c227c09b75842ae564dc8ede6a861c"
+dependencies = [
+ "base64ct",
+ "blake2",
+ "password-hash",
+]
+
 [[package]]
 name = "arrayref"
 version = "0.3.6"
@@ -2850,6 +2861,17 @@ dependencies = [
  "windows-sys 0.42.0",
 ]
 
+[[package]]
+name = "password-hash"
+version = "0.5.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "346f04948ba92c43e8469c1ee6736c7563d71012b17d40745260fe106aac2166"
+dependencies = [
+ "base64ct",
+ "rand_core 0.6.4",
+ "subtle",
+]
+
 [[package]]
 name = "paste"
 version = "1.0.11"
@@ -4458,11 +4480,14 @@ dependencies = [
 name = "tauri-plugin-stronghold"
 version = "0.0.0"
 dependencies = [
+ "argon2",
  "hex",
  "iota-crypto 0.21.0",
  "iota_stronghold",
  "log",
  "rand 0.8.5",
+ "rand_chacha 0.3.1",
+ "rand_core 0.6.4",
  "rusty-fork",
  "serde",
  "serde_json",
diff --git a/plugins/stronghold/Cargo.toml b/plugins/stronghold/Cargo.toml
index 57a8a2c9..1c2d769a 100644
--- a/plugins/stronghold/Cargo.toml
+++ b/plugins/stronghold/Cargo.toml
@@ -20,6 +20,15 @@ iota-crypto = "0.21"
 hex = "0.4"
 zeroize = { version = "1", features = ["zeroize_derive"] }
 
+# kdf dependincies
+argon2 = { version = "0.5.0", optional = true }
+rand_chacha = { version = "0.3.1", optional = true }
+rand_core = { version = "0.6.4", features = ["getrandom"], optional = true }
+
 [dev-dependencies]
 rand = "0.8"
-rusty-fork = "0.3"
\ No newline at end of file
+rusty-fork = "0.3"
+
+[features]
+default = ["kdf"]
+kdf = ["dep:argon2", "dep:rand_chacha", "dep:rand_core"]
diff --git a/plugins/stronghold/src/kdf.rs b/plugins/stronghold/src/kdf.rs
new file mode 100644
index 00000000..f8ddf237
--- /dev/null
+++ b/plugins/stronghold/src/kdf.rs
@@ -0,0 +1,56 @@
+use argon2::Argon2;
+use rand_chacha::ChaCha20Rng;
+use rand_core::{RngCore, SeedableRng};
+use std::path::PathBuf;
+use tauri::Config;
+
+/// NOTE: Hash supplied to Stronghold must be 32bits long.
+/// This is a current limitation of Stronghold.
+const HASH_LENGTH: usize = 32;
+const SALT_FILENAME: &str = "stronghold_salt.txt";
+
+pub struct KeyDerivation {}
+
+impl KeyDerivation {
+    /// Will create a key from [`password`] and a generated salt.
+    /// Salt will be generated to file [`salt_path`] or taken from it
+    /// if file already exists
+    pub fn argon2(password: &str, salt_path: &PathBuf) -> Vec<u8> {
+        let mut salt = [0u8; HASH_LENGTH];
+        create_or_get_salt(&mut salt, salt_path);
+
+        let mut encoded = [0u8; HASH_LENGTH];
+        Argon2::default()
+            .hash_password_into(password.as_bytes(), &salt, &mut encoded)
+            .expect("Failed to generate hash for password");
+        encoded.to_vec()
+    }
+
+    /// Will create a key from [`password`] and a generated salt.
+    /// Salt will be generated/taken from a default file in the Tauri local
+    /// directory
+    pub fn argon2_with_config(password: &str, tauri_config: &Config) -> Vec<u8> {
+        let salt_dir = tauri::api::path::app_local_data_dir(tauri_config)
+            .expect("Application local directory not found");
+        let mut salt_path = PathBuf::new();
+        salt_path.push(salt_dir);
+        salt_path.push(SALT_FILENAME);
+
+        KeyDerivation::argon2(password, &salt_path)
+    }
+}
+
+// NOTE: this is not ideal as we produce a single salt per application
+// rather than having different salt for each Stronghold snapshot/password
+fn create_or_get_salt(salt: &mut [u8], salt_path: &PathBuf) {
+    if salt_path.is_file() {
+        // Get existing salt
+        let tmp = std::fs::read(salt_path).unwrap();
+        salt.clone_from_slice(&tmp);
+    } else {
+        // Generate new salt
+        let mut gen = ChaCha20Rng::from_entropy();
+        gen.fill_bytes(salt);
+        std::fs::write(salt_path, salt).expect("Failed to write salt for Stronghold")
+    }
+}
diff --git a/plugins/stronghold/src/lib.rs b/plugins/stronghold/src/lib.rs
index b14b6990..0695d73d 100644
--- a/plugins/stronghold/src/lib.rs
+++ b/plugins/stronghold/src/lib.rs
@@ -22,6 +22,9 @@ use tauri::{
 };
 use zeroize::Zeroize;
 
+#[cfg(feature = "kdf")]
+pub mod kdf;
+
 pub mod stronghold;
 
 type PasswordHashFn = dyn Fn(&str) -> Vec<u8> + Send + Sync;
@@ -405,15 +408,35 @@ impl Builder {
         }
     }
 
+    /// Initializes a stronghold plugin with argon2 as a default kdf
+    pub fn init_and_build_with_argon2<R: Runtime>() -> TauriPlugin<R> {
+        let plugin_builder = PluginBuilder::new("stronghold").setup(move |app| {
+            let app2 = app.clone();
+            app.manage(StrongholdCollection::default());
+            app.manage(PasswordHashFunction(Box::new(move |pwd: &str| {
+                kdf::KeyDerivation::argon2_with_config(pwd, &app2.config())
+            })));
+            Ok(())
+        });
+        Builder::invoke_stronghold_handlers_and_build(plugin_builder)
+    }
+
     pub fn build<R: Runtime>(self) -> TauriPlugin<R> {
         let password_hash_function = self.password_hash_function;
 
-        PluginBuilder::new("stronghold")
-            .setup(move |app| {
-                app.manage(StrongholdCollection::default());
-                app.manage(PasswordHashFunction(password_hash_function));
-                Ok(())
-            })
+        let plugin_builder = PluginBuilder::new("stronghold").setup(move |app| {
+            app.manage(StrongholdCollection::default());
+            app.manage(PasswordHashFunction(password_hash_function));
+            Ok(())
+        });
+
+        Builder::invoke_stronghold_handlers_and_build(plugin_builder)
+    }
+
+    fn invoke_stronghold_handlers_and_build<R: Runtime>(
+        builder: PluginBuilder<R>,
+    ) -> TauriPlugin<R> {
+        builder
             .invoke_handler(tauri::generate_handler![
                 initialize,
                 destroy,