diff --git a/CHANGELOG.md b/CHANGELOG.md
index 869761ec5..48303d355 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,6 @@
 # 0.76.1
 
+- Fix `addFromMnemonic` to generate using new-style derivation.
 - Pull in formatBalance, formatDecimal, formatElapsed, formatNumber, calcSi, findSi & isTestChain util fuinctions from the originals in @polkadot/ui-util
 - Swap DB interfaces to optional LRU, removing transactionAsync (client-only changes)
 - Swap out `wasm-schnorrkel` & `wasm-ed25519` for combined version with `wasm-crypto`
diff --git a/packages/keyring/src/index.spec.ts b/packages/keyring/src/index.spec.ts
index e379d78b3..74e2f244c 100644
--- a/packages/keyring/src/index.spec.ts
+++ b/packages/keyring/src/index.spec.ts
@@ -45,7 +45,7 @@ describe('keypair', () => {
 
       expect(
         keypair.addFromMnemonic('moral movie very draw assault whisper awful rebuild speed purity repeat card', {}).address()
-      ).toEqual('7pDZKLEixRnF6Q5jzr7DsCEiNPt3d6Rknc14SyUcnRwTQ8Jw');
+      ).toEqual('7sPsxWPE5DzAyPT3VuoJYw5NTGscx9QYN9oddQx4kALKC3hH');
     });
 
     it('allows publicKeys retrieval', () => {
@@ -111,7 +111,7 @@ describe('keypair', () => {
 
       expect(
         keypair.addFromMnemonic('moral movie very draw assault whisper awful rebuild speed purity repeat card', {}).address()
-      ).toEqual('7nmZ1fkYHpnEz6tqR9cLkmwYRbqda9wPsiDq56JhgmNXq6uW');
+      ).toEqual('7qQGarA4PWjPPVHG4USn1yuuVZvEHN7XZz8o7EbAp48jayZQ');
     });
 
     it('allows publicKeys retrieval', () => {
diff --git a/packages/keyring/src/index.ts b/packages/keyring/src/index.ts
index d18ef71c9..74121c45f 100644
--- a/packages/keyring/src/index.ts
+++ b/packages/keyring/src/index.ts
@@ -6,7 +6,7 @@ import { KeypairType } from '@polkadot/util-crypto/types';
 import { KeyringInstance, KeyringPair, KeyringPair$Json, KeyringPair$Meta, KeyringOptions } from './types';
 
 import { assert, assertSingletonPackage, hexToU8a, isNumber, isHex, stringToU8a } from '@polkadot/util';
-import { keyExtractSuri, mnemonicToSeed , naclKeypairFromSeed as naclFromSeed, schnorrkelKeypairFromSeed as schnorrkelFromSeed, mnemonicToMiniSecret, keyFromPath } from '@polkadot/util-crypto';
+import { keyExtractSuri, naclKeypairFromSeed as naclFromSeed, schnorrkelKeypairFromSeed as schnorrkelFromSeed, mnemonicToMiniSecret, keyFromPath } from '@polkadot/util-crypto';
 
 import { decodeAddress, encodeAddress, setAddressPrefix } from './address';
 import { DEV_PHRASE } from './defaults';
@@ -104,6 +104,7 @@ export default class Keyring implements KeyringInstance {
     const type = version === '0' || !Array.isArray(content)
       ? this.type
       : content[1];
+
     return this.addFromAddress(address, meta, hexToU8a(encoded), type, ignoreChecksum);
   }
 
@@ -116,7 +117,7 @@ export default class Keyring implements KeyringInstance {
    * `addPair` to stores in a keyring pair dictionary the public key of the generated pair as a key and the pair as the associated value.
    */
   addFromMnemonic (mnemonic: string, meta: KeyringPair$Meta = {}, type: KeypairType = this.type): KeyringPair {
-    return this.addFromSeed(mnemonicToSeed(mnemonic), meta, type);
+    return this.addFromUri(mnemonic, meta, type);
   }
 
   /**