diff --git a/changelog.d/1019.bugfix b/changelog.d/1019.bugfix
new file mode 100644
index 00000000..46a9366f
--- /dev/null
+++ b/changelog.d/1019.bugfix
@@ -0,0 +1 @@
+Fix hookshot failing to handle incoming webhooks when it is unable to change a user's displayname.
diff --git a/package.json b/package.json
index a28129ee..a2fbc479 100644
--- a/package.json
+++ b/package.json
@@ -63,7 +63,7 @@
     "jira-client": "^8.2.2",
     "markdown-it": "^14.0.0",
     "matrix-appservice-bridge": "^9.0.1",
-    "matrix-bot-sdk": "npm:@vector-im/matrix-bot-sdk@0.7.1-element.7",
+    "matrix-bot-sdk": "npm:@vector-im/matrix-bot-sdk@0.7.1-element.8",
     "matrix-widget-api": "^1.10.0",
     "micromatch": "^4.0.8",
     "mime": "^4.0.4",
diff --git a/src/Connections/GenericHook.ts b/src/Connections/GenericHook.ts
index 2f0e831f..77abb096 100644
--- a/src/Connections/GenericHook.ts
+++ b/src/Connections/GenericHook.ts
@@ -349,6 +349,9 @@ export class GenericHookConnection extends BaseConnection implements IConnection
             return;
         }
         await intent.ensureRegistered();
+        if ((await intent.underlyingClient.getCapabilities())["m.set_displayname"]?.enabled === false) {
+            return;
+        }
         const expectedDisplayname = `${this.state.name} (Webhook)`;
 
         try {
diff --git a/src/IntentUtils.ts b/src/IntentUtils.ts
index 31d2b5ba..f5660ba7 100644
--- a/src/IntentUtils.ts
+++ b/src/IntentUtils.ts
@@ -38,23 +38,29 @@ export async function ensureUserIsInRoom(targetIntent: Intent, botClient: Matrix
 export async function getIntentForUser(user: {avatarUrl?: string, login: string}, as: Appservice, prefix?: string) {
     const domain = as.botUserId.split(":")[1];
     const intent = as.getIntentForUserId(`@${prefix ?? ''}${user.login}:${domain}`);
-    const displayName = `${user.login}`;
+    const displayName = user.login;
+    const capabilites = await intent.underlyingClient.getCapabilities();
+
+
     // Verify up-to-date profile
     let profile;
     await intent.ensureRegistered();
+    if (capabilites["m.set_displayname"]?.enabled === false && capabilites["m.set_avatar_url"]?.enabled === false) {
+        // No ability to change profile.
+        return intent;
+    }
     try {
         profile = await intent.underlyingClient.getUserProfile(intent.userId);
     } catch (ex) {
         profile = {};
     }
 
-    if (profile.displayname !== displayName) {
+    if (capabilites["m.set_displayname"]?.enabled !== false && profile.displayname !== displayName) {
         log.debug(`Updating ${intent.userId}'s displayname`);
-        log.info(`${intent.userId}'s profile is out of date`);
         await intent.underlyingClient.setDisplayName(displayName);
     }
 
-    if (!profile.avatar_url && user.avatarUrl) {
+    if (capabilites["m.set_avatar_url"]?.enabled !== false && !profile.avatar_url && user.avatarUrl) {
         log.debug(`Updating ${intent.userId}'s avatar`);
         const buffer = await axios.get(user.avatarUrl, {
             responseType: "arraybuffer",
diff --git a/src/Managers/BotUsersManager.ts b/src/Managers/BotUsersManager.ts
index 5927cd11..1a78b574 100644
--- a/src/Managers/BotUsersManager.ts
+++ b/src/Managers/BotUsersManager.ts
@@ -97,6 +97,9 @@ export default class BotUsersManager {
      * @returns Promise resolving when the user profile has been ensured.
      */
     private async ensureProfile(botUser: BotUser): Promise<void> {
+        const capabilites = await botUser.intent.underlyingClient.getCapabilities();
+        const canSetDisplayname = capabilites["m.set_displayname"]?.enabled !== false;
+        const canSetAvatarUrl = capabilites["m.set_avatar_url"]?.enabled !== false;
         log.debug(`Ensuring profile for ${botUser.userId} is updated`);
 
         let profile: {
@@ -111,7 +114,7 @@ export default class BotUsersManager {
         }
 
         // Update display name if necessary
-        if (botUser.displayname && profile.displayname !== botUser.displayname) {
+        if (canSetDisplayname && botUser.displayname && profile.displayname !== botUser.displayname) {
             try {
                 await botUser.intent.underlyingClient.setDisplayName(botUser.displayname);
                 log.info(`Updated displayname for "${botUser.userId}" to ${botUser.displayname}`);
@@ -120,6 +123,10 @@ export default class BotUsersManager {
             }
         }
 
+        if (!canSetAvatarUrl) {
+            return;
+        }
+
         if (!botUser.avatar) {
             // Unset any avatar
             if (profile.avatar_url) {
diff --git a/tests/utils/IntentMock.ts b/tests/utils/IntentMock.ts
index 078091b1..d93fc68a 100644
--- a/tests/utils/IntentMock.ts
+++ b/tests/utils/IntentMock.ts
@@ -1,6 +1,7 @@
 
 import { expect } from "chai";
 import { MatrixError } from "matrix-bot-sdk";
+import { MatrixCapabilities } from "matrix-bot-sdk/lib/models/Capabilities";
 export class MatrixClientMock {
 
     static create(){
@@ -16,6 +17,17 @@ export class MatrixClientMock {
         return;
     }
 
+    async getCapabilities(): Promise<MatrixCapabilities> {
+        return {
+            "m.set_displayname": {
+                enabled: true
+            },
+            "m.set_avatar_url": {
+                enabled: true
+            },
+        }
+    }
+
     async getJoinedRoomMembers(roomId: string): Promise<string[]> {
         return this.joinedMembers.get(roomId) || [];
     }
diff --git a/yarn.lock b/yarn.lock
index 4aad9947..70c6593e 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -7034,10 +7034,10 @@ matrix-appservice@^2.0.0:
     js-yaml "^4.1.0"
     morgan "^1.10.0"
 
-"matrix-bot-sdk@npm:@vector-im/matrix-bot-sdk@0.7.1-element.7":
-  version "0.7.1-element.7"
-  resolved "https://registry.yarnpkg.com/@vector-im/matrix-bot-sdk/-/matrix-bot-sdk-0.7.1-element.7.tgz#577b5c0060af1c9a8b3eb6f4373f692d57b786ac"
-  integrity sha512-L9t22ODzSf/6D7H7yZ4ygTsuG00xvX4UcSNoz4AN+q2drEyYPNzpE5PjkxmsuSOMip/3bEf3G0oy/QVSvJ+pFA==
+"matrix-bot-sdk@npm:@vector-im/matrix-bot-sdk@0.7.1-element.8":
+  version "0.7.1-element.8"
+  resolved "https://registry.yarnpkg.com/@vector-im/matrix-bot-sdk/-/matrix-bot-sdk-0.7.1-element.8.tgz#fffbbd7044834ba1e35778200203977b6ee6f07d"
+  integrity sha512-dvQpkeit+RhbyiSUgOVLwqCaS1rVi0ScWt5JbqM0NrOkR0xWaMUF+Lu8/PdsV7vRgfgh09mprBSjIFvHdoQgcg==
   dependencies:
     "@matrix-org/matrix-sdk-crypto-nodejs" "0.3.0-beta.1"
     "@types/express" "^4.17.21"