diff --git a/app/Http/Controllers/API/Remote/SftpController.php b/app/Http/Controllers/API/Remote/SftpController.php
index 04fa432ce..2e12d4e51 100644
--- a/app/Http/Controllers/API/Remote/SftpController.php
+++ b/app/Http/Controllers/API/Remote/SftpController.php
@@ -3,12 +3,13 @@
 namespace Pterodactyl\Http\Controllers\Api\Remote;
 
 use Illuminate\Http\Request;
+use Illuminate\Http\Response;
 use Illuminate\Http\JsonResponse;
-use Illuminate\Auth\AuthenticationException;
 use Pterodactyl\Http\Controllers\Controller;
 use Illuminate\Foundation\Auth\ThrottlesLogins;
 use Pterodactyl\Exceptions\Repository\RecordNotFoundException;
 use Pterodactyl\Services\Sftp\AuthenticateUsingPasswordService;
+use Symfony\Component\HttpKernel\Exception\BadRequestHttpException;
 use Pterodactyl\Http\Requests\Api\Remote\SftpAuthenticationFormRequest;
 
 class SftpController extends Controller
@@ -47,7 +48,7 @@ class SftpController extends Controller
         if ($this->hasTooManyLoginAttempts($request)) {
             return response()->json([
                 'error' => 'Logins throttled.',
-            ], 429);
+            ], Response::HTTP_TOO_MANY_REQUESTS);
         }
 
         try {
@@ -59,14 +60,14 @@ class SftpController extends Controller
             );
 
             $this->clearLoginAttempts($request);
-        } catch (AuthenticationException $exception) {
+        } catch (BadRequestHttpException $exception) {
             return response()->json([
-                'error' => 'Invalid credentials.',
-            ], 403);
+                'error' => 'The server you are trying to access is not installed or is suspended.',
+            ], Response::HTTP_BAD_REQUEST);
         } catch (RecordNotFoundException $exception) {
             return response()->json([
-                'error' => 'Invalid server.',
-            ], 404);
+                'error' => 'Unable to locate a resource using the username and password provided.',
+            ], Response::HTTP_NOT_FOUND);
         }
 
         return response()->json($data);
diff --git a/app/Http/Controllers/API/Remote/ValidateKeyController.php b/app/Http/Controllers/API/Remote/ValidateKeyController.php
index 4bf70c183..86a02cbce 100644
--- a/app/Http/Controllers/API/Remote/ValidateKeyController.php
+++ b/app/Http/Controllers/API/Remote/ValidateKeyController.php
@@ -25,6 +25,7 @@
 namespace Pterodactyl\Http\Controllers\Api\Remote;
 
 use Spatie\Fractal\Fractal;
+use Illuminate\Http\Response;
 use Pterodactyl\Http\Controllers\Controller;
 use Illuminate\Contracts\Foundation\Application;
 use Illuminate\Foundation\Testing\HttpException;
@@ -75,12 +76,11 @@ class ValidateKeyController extends Controller
      * @return array
      *
      * @throws \Illuminate\Foundation\Testing\HttpException
-     * @throws \Pterodactyl\Exceptions\Repository\RecordNotFoundException
      */
     public function index($token)
     {
         if (! starts_with($token, DaemonKeyRepositoryInterface::INTERNAL_KEY_IDENTIFIER)) {
-            throw new HttpException(501);
+            throw new HttpException(Response::HTTP_NOT_IMPLEMENTED);
         }
 
         try {
@@ -89,6 +89,10 @@ class ValidateKeyController extends Controller
             throw new NotFoundHttpException;
         }
 
+        if ($key->getRelation('server')->suspended || $key->getRelation('server')->installed !== 1) {
+            throw new NotFoundHttpException;
+        }
+
         return $this->fractal->item($key, $this->app->make(ApiKeyTransformer::class), 'server')
             ->serializeWith(JsonApiSerializer::class)
             ->toArray();
diff --git a/app/Http/Controllers/Admin/ServersController.php b/app/Http/Controllers/Admin/ServersController.php
index 5ec2c14d9..c64e76711 100644
--- a/app/Http/Controllers/Admin/ServersController.php
+++ b/app/Http/Controllers/Admin/ServersController.php
@@ -431,7 +431,7 @@ class ServersController extends Controller
 
         $this->repository->update($server->id, [
             'installed' => ! $server->installed,
-        ]);
+        ], true, true);
 
         $this->alert->success(trans('admin/server.alerts.install_toggled'))->flash();
 
diff --git a/app/Http/Controllers/Api/Application/Servers/ServerController.php b/app/Http/Controllers/Api/Application/Servers/ServerController.php
index fd6d62f89..f869393af 100644
--- a/app/Http/Controllers/Api/Application/Servers/ServerController.php
+++ b/app/Http/Controllers/Api/Application/Servers/ServerController.php
@@ -108,7 +108,6 @@ class ServerController extends ApplicationApiController
      * @return \Illuminate\Http\Response
      *
      * @throws \Pterodactyl\Exceptions\DisplayException
-     * @throws \Pterodactyl\Exceptions\Repository\RecordNotFoundException
      */
     public function delete(ServerWriteRequest $request, Server $server, string $force = ''): Response
     {
diff --git a/app/Models/Server.php b/app/Models/Server.php
index ac3bd64f3..5bc10a3aa 100644
--- a/app/Models/Server.php
+++ b/app/Models/Server.php
@@ -90,6 +90,7 @@ class Server extends Model implements CleansAttributes, ValidableContract
         'startup' => 'string',
         'skip_scripts' => 'boolean',
         'image' => 'string|max:255',
+        'installed' => 'boolean',
     ];
 
     /**
diff --git a/app/Services/Sftp/AuthenticateUsingPasswordService.php b/app/Services/Sftp/AuthenticateUsingPasswordService.php
index 1cf64bd8e..0c2f39c5d 100644
--- a/app/Services/Sftp/AuthenticateUsingPasswordService.php
+++ b/app/Services/Sftp/AuthenticateUsingPasswordService.php
@@ -2,11 +2,11 @@
 
 namespace Pterodactyl\Services\Sftp;
 
-use Illuminate\Auth\AuthenticationException;
 use Pterodactyl\Contracts\Repository\UserRepositoryInterface;
 use Pterodactyl\Services\DaemonKeys\DaemonKeyProviderService;
 use Pterodactyl\Exceptions\Repository\RecordNotFoundException;
 use Pterodactyl\Contracts\Repository\ServerRepositoryInterface;
+use Symfony\Component\HttpKernel\Exception\BadRequestHttpException;
 
 class AuthenticateUsingPasswordService
 {
@@ -53,13 +53,13 @@ class AuthenticateUsingPasswordService
      *
      * @param string      $username
      * @param string      $password
-     * @param string|null $server
      * @param int         $node
+     * @param string|null $server
      * @return array
      *
-     * @throws \Illuminate\Auth\AuthenticationException
      * @throws \Pterodactyl\Exceptions\Model\DataValidationException
      * @throws \Pterodactyl\Exceptions\Repository\RecordNotFoundException
+     * @throws \Symfony\Component\HttpKernel\Exception\BadRequestHttpException
      */
     public function handle(string $username, string $password, int $node, string $server = null): array
     {
@@ -67,21 +67,20 @@ class AuthenticateUsingPasswordService
             throw new RecordNotFoundException;
         }
 
-        try {
-            $user = $this->userRepository->setColumns(['id', 'root_admin', 'password'])->findFirstWhere([['username', '=', $username]]);
-
-            if (! password_verify($password, $user->password)) {
-                throw new AuthenticationException;
-            }
-        } catch (RecordNotFoundException $exception) {
-            throw new AuthenticationException;
+        $user = $this->userRepository->setColumns(['id', 'root_admin', 'password'])->findFirstWhere([['username', '=', $username]]);
+        if (! password_verify($password, $user->password)) {
+            throw new RecordNotFoundException;
         }
 
-        $server = $this->repository->setColumns(['id', 'node_id', 'owner_id', 'uuid'])->getByUuid($server);
+        $server = $this->repository->setColumns(['id', 'node_id', 'owner_id', 'uuid', 'installed', 'suspended'])->getByUuid($server);
         if ($server->node_id !== $node || (! $user->root_admin && $server->owner_id !== $user->id)) {
             throw new RecordNotFoundException;
         }
 
+        if ($server->installed !== 1 || $server->suspended) {
+            throw new BadRequestHttpException;
+        }
+
         return [
             'server' => $server->uuid,
             'token' => $this->keyProviderService->handle($server, $user),
diff --git a/tests/Unit/Services/Sftp/AuthenticateUsingPasswordServiceTest.php b/tests/Unit/Services/Sftp/AuthenticateUsingPasswordServiceTest.php
index 26584522f..9575fe779 100644
--- a/tests/Unit/Services/Sftp/AuthenticateUsingPasswordServiceTest.php
+++ b/tests/Unit/Services/Sftp/AuthenticateUsingPasswordServiceTest.php
@@ -52,7 +52,7 @@ class AuthenticateUsingPasswordServiceTest extends TestCase
         $this->userRepository->shouldReceive('setColumns')->with(['id', 'root_admin', 'password'])->once()->andReturnSelf();
         $this->userRepository->shouldReceive('findFirstWhere')->with([['username', '=', $user->username]])->once()->andReturn($user);
 
-        $this->repository->shouldReceive('setColumns')->with(['id', 'node_id', 'owner_id', 'uuid'])->once()->andReturnSelf();
+        $this->repository->shouldReceive('setColumns')->with(['id', 'node_id', 'owner_id', 'uuid', 'installed', 'suspended'])->once()->andReturnSelf();
         $this->repository->shouldReceive('getByUuid')->with($server->uuidShort)->once()->andReturn($server);
 
         $this->keyProviderService->shouldReceive('handle')->with($server, $user)->once()->andReturn('server_token');
@@ -77,7 +77,7 @@ class AuthenticateUsingPasswordServiceTest extends TestCase
         $this->userRepository->shouldReceive('setColumns')->with(['id', 'root_admin', 'password'])->once()->andReturnSelf();
         $this->userRepository->shouldReceive('findFirstWhere')->with([['username', '=', $user->username]])->once()->andReturn($user);
 
-        $this->repository->shouldReceive('setColumns')->with(['id', 'node_id', 'owner_id', 'uuid'])->once()->andReturnSelf();
+        $this->repository->shouldReceive('setColumns')->with(['id', 'node_id', 'owner_id', 'uuid', 'installed', 'suspended'])->once()->andReturnSelf();
         $this->repository->shouldReceive('getByUuid')->with($server->uuidShort)->once()->andReturn($server);
 
         $this->keyProviderService->shouldReceive('handle')->with($server, $user)->once()->andReturn('server_token');
@@ -104,7 +104,7 @@ class AuthenticateUsingPasswordServiceTest extends TestCase
      * Test that an exception is thrown if the user account exists but the wrong
      * credentials are passed.
      *
-     * @expectedException \Illuminate\Auth\AuthenticationException
+     * @expectedException \Pterodactyl\Exceptions\Repository\RecordNotFoundException
      */
     public function testExceptionIsThrownIfUserDetailsAreIncorrect()
     {
@@ -119,7 +119,7 @@ class AuthenticateUsingPasswordServiceTest extends TestCase
     /**
      * Test that an exception is thrown if no user account is found.
      *
-     * @expectedException \Illuminate\Auth\AuthenticationException
+     * @expectedException \Pterodactyl\Exceptions\Repository\RecordNotFoundException
      */
     public function testExceptionIsThrownIfNoUserAccountIsFound()
     {
@@ -143,7 +143,7 @@ class AuthenticateUsingPasswordServiceTest extends TestCase
         $this->userRepository->shouldReceive('setColumns')->with(['id', 'root_admin', 'password'])->once()->andReturnSelf();
         $this->userRepository->shouldReceive('findFirstWhere')->with([['username', '=', $user->username]])->once()->andReturn($user);
 
-        $this->repository->shouldReceive('setColumns')->with(['id', 'node_id', 'owner_id', 'uuid'])->once()->andReturnSelf();
+        $this->repository->shouldReceive('setColumns')->with(['id', 'node_id', 'owner_id', 'uuid', 'installed', 'suspended'])->once()->andReturnSelf();
         $this->repository->shouldReceive('getByUuid')->with($server->uuidShort)->once()->andReturn($server);
 
         $this->getService()->handle($user->username, 'password', 1, $server->uuidShort);
@@ -163,7 +163,45 @@ class AuthenticateUsingPasswordServiceTest extends TestCase
         $this->userRepository->shouldReceive('setColumns')->with(['id', 'root_admin', 'password'])->once()->andReturnSelf();
         $this->userRepository->shouldReceive('findFirstWhere')->with([['username', '=', $user->username]])->once()->andReturn($user);
 
-        $this->repository->shouldReceive('setColumns')->with(['id', 'node_id', 'owner_id', 'uuid'])->once()->andReturnSelf();
+        $this->repository->shouldReceive('setColumns')->with(['id', 'node_id', 'owner_id', 'uuid', 'installed', 'suspended'])->once()->andReturnSelf();
+        $this->repository->shouldReceive('getByUuid')->with($server->uuidShort)->once()->andReturn($server);
+
+        $this->getService()->handle($user->username, 'password', 1, $server->uuidShort);
+    }
+
+    /**
+     * Test that a suspended server throws an exception.
+     *
+     * @expectedException \Symfony\Component\HttpKernel\Exception\BadRequestHttpException
+     */
+    public function testSuspendedServer()
+    {
+        $user = factory(User::class)->make(['root_admin' => 1]);
+        $server = factory(Server::class)->make(['node_id' => 1, 'owner_id' => $user->id + 1, 'suspended' => 1]);
+
+        $this->userRepository->shouldReceive('setColumns')->with(['id', 'root_admin', 'password'])->once()->andReturnSelf();
+        $this->userRepository->shouldReceive('findFirstWhere')->with([['username', '=', $user->username]])->once()->andReturn($user);
+
+        $this->repository->shouldReceive('setColumns')->with(['id', 'node_id', 'owner_id', 'uuid', 'installed', 'suspended'])->once()->andReturnSelf();
+        $this->repository->shouldReceive('getByUuid')->with($server->uuidShort)->once()->andReturn($server);
+
+        $this->getService()->handle($user->username, 'password', 1, $server->uuidShort);
+    }
+
+    /**
+     * Test that a server that is not yet installed throws an exception.
+     *
+     * @expectedException \Symfony\Component\HttpKernel\Exception\BadRequestHttpException
+     */
+    public function testNotInstalledServer()
+    {
+        $user = factory(User::class)->make(['root_admin' => 1]);
+        $server = factory(Server::class)->make(['node_id' => 1, 'owner_id' => $user->id + 1, 'installed' => 0]);
+
+        $this->userRepository->shouldReceive('setColumns')->with(['id', 'root_admin', 'password'])->once()->andReturnSelf();
+        $this->userRepository->shouldReceive('findFirstWhere')->with([['username', '=', $user->username]])->once()->andReturn($user);
+
+        $this->repository->shouldReceive('setColumns')->with(['id', 'node_id', 'owner_id', 'uuid', 'installed', 'suspended'])->once()->andReturnSelf();
         $this->repository->shouldReceive('getByUuid')->with($server->uuidShort)->once()->andReturn($server);
 
         $this->getService()->handle($user->username, 'password', 1, $server->uuidShort);