Is there any way to reset master password without losing the passwords
I recently changed my password to something I thought would be quite secure. A catchphrase only I would remember. But I forgot it and now I cannot use my saved passwords. And losing the passwords just isn't an option as i have 40+ passwords saved.
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Resetting the master password will delete all saved passwords. This is a security measure, otherwise anybody could reset the master password and have access to the saved passwords.
The master password is used to add an extra level to the basic encryption key that is stored in key3.db. Encrypted names and passwords can't be accessed without the master password. So if you forgot the MP then your only option is to reset the MP and lose all stored passwords as the consequence.
You can make a backup copy of key3.db and signons.sqlite and maybe create a second profile for them in case you get a bright moment.
See http://kb.mozillazine.org/Password_Manager (Troubleshooting)
I had that bright moment just as i was about to reset it. Good idea on the backup