diff --git a/startup.lua b/startup.lua
index 64a6467..f0c2334 100644
--- a/startup.lua
+++ b/startup.lua
@@ -304,7 +304,11 @@ local function handleIncomingWormhole()
             if message:sub(1, 14) == "IRIS_PASSWORD:" then
                 utils.log("Received password attempt")
                 local password = message:sub(15)
-                HandleIncomingPasswordRequest(password)
+                local passwordAccepted = HandleIncomingPasswordRequest(password)
+                if passwordAccepted then
+                    -- Update allowed status so entities don't show as impacts
+                    allowed = true
+                end
             else
                 utils.log("Received message: " .. message)
             end