diff --git a/CHANGES.md b/CHANGES.md
index ed549c918f..1601e0ec85 100644
--- a/CHANGES.md
+++ b/CHANGES.md
@@ -19,6 +19,7 @@ Bugfix 🐛:
  - Fix bad theme change for the MainActivity
  - Handle encrypted reactions (#2509)
  - Disable URL preview for some domains (#2995)
+ - Fix avatar rendering for DMs, after initial sync (#2693)
 
 Translations 🗣:
  -
diff --git a/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/database/query/RoomSummaryEntityQueries.kt b/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/database/query/RoomSummaryEntityQueries.kt
index 7430b7822f..2af5dcf0ae 100644
--- a/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/database/query/RoomSummaryEntityQueries.kt
+++ b/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/database/query/RoomSummaryEntityQueries.kt
@@ -48,9 +48,15 @@ internal fun RoomSummaryEntity.Companion.getOrCreate(realm: Realm, roomId: Strin
     return where(realm, roomId).findFirst() ?: realm.createObject(roomId)
 }
 
-internal fun RoomSummaryEntity.Companion.getDirectRooms(realm: Realm): RealmResults<RoomSummaryEntity> {
+internal fun RoomSummaryEntity.Companion.getDirectRooms(realm: Realm,
+                                                        excludeRoomIds: Set<String>? = null): RealmResults<RoomSummaryEntity> {
     return RoomSummaryEntity.where(realm)
             .equalTo(RoomSummaryEntityFields.IS_DIRECT, true)
+            .apply {
+                if (!excludeRoomIds.isNullOrEmpty()) {
+                    not().`in`(RoomSummaryEntityFields.ROOM_ID, excludeRoomIds.toTypedArray())
+                }
+            }
             .findAll()
 }
 
diff --git a/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/session/room/RoomAvatarResolver.kt b/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/session/room/RoomAvatarResolver.kt
index 99f9d3644d..9bcb1eb196 100644
--- a/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/session/room/RoomAvatarResolver.kt
+++ b/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/session/room/RoomAvatarResolver.kt
@@ -16,18 +16,18 @@
 
 package org.matrix.android.sdk.internal.session.room
 
+import io.realm.Realm
 import org.matrix.android.sdk.api.session.events.model.EventType
 import org.matrix.android.sdk.api.session.events.model.toModel
 import org.matrix.android.sdk.api.session.room.model.RoomAvatarContent
 import org.matrix.android.sdk.internal.database.mapper.ContentMapper
 import org.matrix.android.sdk.internal.database.model.CurrentStateEventEntity
 import org.matrix.android.sdk.internal.database.model.RoomMemberSummaryEntityFields
+import org.matrix.android.sdk.internal.database.model.RoomSummaryEntity
 import org.matrix.android.sdk.internal.database.query.getOrNull
+import org.matrix.android.sdk.internal.database.query.where
 import org.matrix.android.sdk.internal.di.UserId
 import org.matrix.android.sdk.internal.session.room.membership.RoomMemberHelper
-import io.realm.Realm
-import org.matrix.android.sdk.internal.database.model.RoomSummaryEntity
-import org.matrix.android.sdk.internal.database.query.where
 import javax.inject.Inject
 
 internal class RoomAvatarResolver @Inject constructor(@UserId private val userId: String) {
@@ -48,7 +48,7 @@ internal class RoomAvatarResolver @Inject constructor(@UserId private val userId
         val roomMembers = RoomMemberHelper(realm, roomId)
         val members = roomMembers.queryActiveRoomMembersEvent().findAll()
         // detect if it is a room with no more than 2 members (i.e. an alone or a 1:1 chat)
-        val isDirectRoom =  RoomSummaryEntity.where(realm, roomId).findFirst()?.isDirect ?: false
+        val isDirectRoom = RoomSummaryEntity.where(realm, roomId).findFirst()?.isDirect ?: false
         if (isDirectRoom) {
             if (members.size == 1) {
                 res = members.firstOrNull()?.avatarUrl
diff --git a/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/session/sync/UserAccountDataSyncHandler.kt b/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/session/sync/UserAccountDataSyncHandler.kt
index 449d47abe5..907c1187fe 100644
--- a/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/session/sync/UserAccountDataSyncHandler.kt
+++ b/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/session/sync/UserAccountDataSyncHandler.kt
@@ -45,6 +45,7 @@ import org.matrix.android.sdk.internal.database.query.getOrCreate
 import org.matrix.android.sdk.internal.database.query.where
 import org.matrix.android.sdk.internal.di.SessionDatabase
 import org.matrix.android.sdk.internal.di.UserId
+import org.matrix.android.sdk.internal.session.room.RoomAvatarResolver
 import org.matrix.android.sdk.internal.session.room.membership.RoomMemberHelper
 import org.matrix.android.sdk.internal.session.sync.model.InvitedRoomSync
 import org.matrix.android.sdk.internal.session.sync.model.accountdata.BreadcrumbsContent
@@ -60,7 +61,9 @@ internal class UserAccountDataSyncHandler @Inject constructor(
         @SessionDatabase private val monarchy: Monarchy,
         @UserId private val userId: String,
         private val directChatsHelper: DirectChatsHelper,
-        private val updateUserAccountDataTask: UpdateUserAccountDataTask) {
+        private val updateUserAccountDataTask: UpdateUserAccountDataTask,
+        private val roomAvatarResolver: RoomAvatarResolver
+) {
 
     fun handle(realm: Realm, accountData: UserAccountDataSync?) {
         accountData?.list?.forEach { event ->
@@ -151,23 +154,27 @@ internal class UserAccountDataSyncHandler @Inject constructor(
     }
 
     private fun handleDirectChatRooms(realm: Realm, event: UserAccountDataEvent) {
-        val oldDirectRooms = RoomSummaryEntity.getDirectRooms(realm)
-        oldDirectRooms.forEach {
-            it.isDirect = false
-            it.directUserId = null
-        }
         val content = event.content.toModel<DirectMessagesContent>() ?: return
-        content.forEach {
-            val userId = it.key
-            it.value.forEach { roomId ->
+        content.forEach { (userId, roomIds) ->
+            roomIds.forEach { roomId ->
                 val roomSummaryEntity = RoomSummaryEntity.where(realm, roomId).findFirst()
                 if (roomSummaryEntity != null) {
                     roomSummaryEntity.isDirect = true
                     roomSummaryEntity.directUserId = userId
-                    realm.insertOrUpdate(roomSummaryEntity)
+                    // Also update the avatar, there is a specific treatment for DMs
+                    roomSummaryEntity.avatarUrl = roomAvatarResolver.resolve(realm, roomId)
                 }
             }
         }
+
+        // Handle previous direct rooms
+        RoomSummaryEntity.getDirectRooms(realm, excludeRoomIds = content.values.flatten().toSet())
+                .forEach {
+                    it.isDirect = false
+                    it.directUserId = null
+                    // Also update the avatar, there was a specific treatment for DMs
+                    it.avatarUrl = roomAvatarResolver.resolve(realm, it.roomId)
+                }
     }
 
     private fun handleIgnoredUsers(realm: Realm, event: UserAccountDataEvent) {
diff --git a/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/session/sync/model/accountdata/DirectMessagesContent.kt b/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/session/sync/model/accountdata/DirectMessagesContent.kt
index c406f3acf1..41173dea96 100644
--- a/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/session/sync/model/accountdata/DirectMessagesContent.kt
+++ b/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/session/sync/model/accountdata/DirectMessagesContent.kt
@@ -16,4 +16,7 @@
 
 package org.matrix.android.sdk.internal.session.sync.model.accountdata
 
-typealias DirectMessagesContent = Map<String, List<String>>
+/**
+ * Keys are userIds, values are list of roomIds
+ */
+internal typealias DirectMessagesContent = Map<String, List<String>>