diff --git a/internal/roomname.go b/internal/roomname.go
index f60a022..76cd02b 100644
--- a/internal/roomname.go
+++ b/internal/roomname.go
@@ -109,12 +109,6 @@ func (m *RoomMetadata) SameRoomName(other *RoomMetadata) bool {
 		sameHeroNames(m.Heroes, other.Heroes))
 }
 
-// SameRoomAvatar checks if the fields relevant for room avatars have changed between the two metadatas.
-// Returns true if there are no changes.
-func (m *RoomMetadata) SameRoomAvatar(other *RoomMetadata) bool {
-	return m.AvatarEvent == other.AvatarEvent && sameHeroAvatars(m.Heroes, other.Heroes)
-}
-
 func (m *RoomMetadata) SameJoinCount(other *RoomMetadata) bool {
 	return m.JoinCount == other.JoinCount
 }
@@ -138,21 +132,6 @@ func sameHeroNames(a, b []Hero) bool {
 	return true
 }
 
-func sameHeroAvatars(a, b []Hero) bool {
-	if len(a) != len(b) {
-		return false
-	}
-	for i := range a {
-		if a[i].ID != b[i].ID {
-			return false
-		}
-		if a[i].Avatar != b[i].Avatar {
-			return false
-		}
-	}
-	return true
-}
-
 func (m *RoomMetadata) RemoveHero(userID string) {
 	for i, h := range m.Heroes {
 		if h.ID == userID {
diff --git a/sync3/lists.go b/sync3/lists.go
index 414d064..823637b 100644
--- a/sync3/lists.go
+++ b/sync3/lists.go
@@ -85,7 +85,7 @@ func (s *InternalRequestLists) SetRoom(r RoomConnMetadata) (delta RoomDelta) {
 			//           to conclude.
 			r.CanonicalisedName = existing.CanonicalisedName
 		}
-		delta.RoomAvatarChanged = !existing.SameRoomAvatar(&r.RoomMetadata)
+		delta.RoomAvatarChanged = !existing.SameRoomAvatar(&r)
 		if delta.RoomAvatarChanged {
 			r.ResolvedAvatarURL = internal.CalculateAvatar(&r.RoomMetadata, r.IsDM)
 		}
diff --git a/sync3/room.go b/sync3/room.go
index 0693580..c539763 100644
--- a/sync3/room.go
+++ b/sync3/room.go
@@ -56,6 +56,37 @@ type RoomConnMetadata struct {
 	LastInterestedEventTimestamps map[string]uint64
 }
 
+// SameRoomAvatar checks if the fields relevant for room avatars have changed between the two metadatas.
+// Returns true if there are no changes.
+func (r *RoomConnMetadata) SameRoomAvatar(next *RoomConnMetadata) bool {
+	sameRoomAvatar := r.AvatarEvent == next.AvatarEvent
+	if next.IsDM {
+		// the avatar is the same IF:
+		// - the m.room.avatar event is the same AND
+		// - the heroes haven't changed AND
+		// - the number of heroes is 1
+		return sameRoomAvatar && sameHeroAvatars(r.Heroes, next.Heroes) && len(next.Heroes) == 1
+	}
+	// the avatar is the same IF:
+	// - the m.room.avatar event is the same
+	return sameRoomAvatar
+}
+
+func sameHeroAvatars(a, b []internal.Hero) bool {
+	if len(a) != len(b) {
+		return false
+	}
+	for i := range a {
+		if a[i].ID != b[i].ID {
+			return false
+		}
+		if a[i].Avatar != b[i].Avatar {
+			return false
+		}
+	}
+	return true
+}
+
 func (r *RoomConnMetadata) GetLastInterestedEventTimestamp(listKey string) uint64 {
 	ts, ok := r.LastInterestedEventTimestamps[listKey]
 	if ok {
diff --git a/tests-e2e/lists_test.go b/tests-e2e/lists_test.go
index bdb1c4e..4d0bfc3 100644
--- a/tests-e2e/lists_test.go
+++ b/tests-e2e/lists_test.go
@@ -1731,8 +1731,60 @@ func TestAvatarFieldInRoomResponse(t *testing.T) {
 		t.Log("Alice syncs until she sees the invite.")
 		res = alice.SlidingSyncUntilMembership(t, res.Pos, dmInvited, alice, "invite")
 
-		t.Log("The new room should use Chris's avatar.")
-		m.MatchResponse(t, res, m.MatchRoomSubscription(dmInvited, m.MatchRoomAvatar(chris.AvatarURL)))
+		t.Log("The new room should appear as a DM and use Chris's avatar.")
+		m.MatchResponse(t, res, m.MatchRoomSubscription(dmInvited, m.MatchRoomIsDM(true), m.MatchRoomAvatar(chris.AvatarURL)))
+
+		t.Run("Creator of a non-DM never sees an avatar", func(t *testing.T) {
+			t.Log("Alice makes a new room which is not a DM.")
+			privateGroup := alice.MustCreateRoom(t, map[string]interface{}{
+				"preset":    "trusted_private_chat",
+				"is_direct": false,
+			})
+
+			t.Log("Alice sees the group. It has no avatar.")
+			res = alice.SlidingSyncUntil(t, res.Pos, sync3.Request{}, m.MatchRoomSubscription(privateGroup, m.MatchRoomUnsetAvatar()))
+			m.MatchResponse(t, res, m.MatchRoomSubscription(privateGroup, m.MatchRoomIsDM(false)))
+
+			t.Log("Alice invites Bob to the group, who accepts.")
+			alice.MustInviteRoom(t, privateGroup, bob.UserID)
+			bob.MustJoinRoom(t, privateGroup, nil)
+
+			t.Log("Alice sees Bob join. The room still has no avatar.")
+			res = alice.SlidingSyncUntil(t, res.Pos, sync3.Request{}, func(response *sync3.Response) error {
+				matchNoAvatarChange := m.MatchRoomSubscription(privateGroup, m.MatchRoomUnchangedAvatar())
+				if err := matchNoAvatarChange(response); err != nil {
+					t.Fatalf("Saw group avatar change: %s", err)
+				}
+				matchJoin := m.MatchRoomSubscription(privateGroup, MatchRoomTimelineMostRecent(1, []Event{
+					{
+						Type:     "m.room.member",
+						Sender:   bob.UserID,
+						StateKey: ptr(bob.UserID),
+					},
+				}))
+				return matchJoin(response)
+			})
+
+			t.Log("Alice invites Chris to the group, who accepts.")
+			alice.MustInviteRoom(t, privateGroup, chris.UserID)
+			chris.MustJoinRoom(t, privateGroup, nil)
+
+			t.Log("Alice sees Chris join. The room still has no avatar.")
+			res = alice.SlidingSyncUntil(t, res.Pos, sync3.Request{}, func(response *sync3.Response) error {
+				matchNoAvatarChange := m.MatchRoomSubscription(privateGroup, m.MatchRoomUnchangedAvatar())
+				if err := matchNoAvatarChange(response); err != nil {
+					t.Fatalf("Saw group avatar change: %s", err)
+				}
+				matchJoin := m.MatchRoomSubscription(privateGroup, MatchRoomTimelineMostRecent(1, []Event{
+					{
+						Type:     "m.room.member",
+						Sender:   chris.UserID,
+						StateKey: ptr(chris.UserID),
+					},
+				}))
+				return matchJoin(response)
+			})
+		})
 	})
 }