diff --git a/mercurial_keyring.py b/mercurial_keyring.py
--- a/mercurial_keyring.py
+++ b/mercurial_keyring.py
@@ -388,7 +388,11 @@ class HTTPPasswordHandler(object):
             # Otherwise we won't be able to find the password so it
             # does not make much sense to preserve it
             _debug(ui, _("Saving password for %s to keyring") % user)
-            password_store.set_http_password(final_url, user, pwd)
+            try:
+                password_store.set_http_password(final_url, user, pwd)
+            except keyring.errors.PasswordSetError, e:
+                ui.traceback()
+                ui.warn(_("warning: failed to save password in keyring\n"))
 
         # Saving password to the memory cache
         self.pwd_cache.store(realm, final_url, user, pwd)