diff --git a/CHANGES.md b/CHANGES.md
index 4a82693feb..4584d74b06 100644
--- a/CHANGES.md
+++ b/CHANGES.md
@@ -18,6 +18,7 @@ Bugfix 🐛:
  - Loudspeaker is always used (#1685)
  - Fix uploads still don't work with room v6 (#1879)
  - Can't handle ongoing call events in background (#1992)
+ - Login with Matrix-Id | Autodiscovery fails if identity server is invalid and Homeserver ok (#2027)
 
 Translations 🗣:
  -
diff --git a/matrix-sdk-android/src/main/java/org/matrix/android/sdk/api/auth/wellknown/WellknownResult.kt b/matrix-sdk-android/src/main/java/org/matrix/android/sdk/api/auth/wellknown/WellknownResult.kt
index a736a4f1be..ec2dfd214c 100644
--- a/matrix-sdk-android/src/main/java/org/matrix/android/sdk/api/auth/wellknown/WellknownResult.kt
+++ b/matrix-sdk-android/src/main/java/org/matrix/android/sdk/api/auth/wellknown/WellknownResult.kt
@@ -45,7 +45,7 @@ sealed class WellknownResult {
     /**
      * Inform the user that auto-discovery failed due to invalid/empty data and PROMPT for the parameter.
      */
-    object FailPrompt : WellknownResult()
+    data class FailPrompt(val homeServerUrl: String?, val wellKnown: WellKnown?) : WellknownResult()
 
     /**
      * Inform the user that auto-discovery did not return any usable URLs. Do not continue further with the current login process.
diff --git a/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/wellknown/GetWellknownTask.kt b/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/wellknown/GetWellknownTask.kt
index e20fe9a304..80ede5e884 100644
--- a/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/wellknown/GetWellknownTask.kt
+++ b/matrix-sdk-android/src/main/java/org/matrix/android/sdk/internal/wellknown/GetWellknownTask.kt
@@ -97,7 +97,7 @@ internal class DefaultGetWellknownTask @Inject constructor(
             // Success
             val homeServerBaseUrl = wellKnown.homeServer?.baseURL
             if (homeServerBaseUrl.isNullOrBlank()) {
-                WellknownResult.FailPrompt
+                WellknownResult.FailPrompt(null, null)
             } else {
                 if (homeServerBaseUrl.isValidUrl()) {
                     // Check that HS is a real one
@@ -120,11 +120,11 @@ internal class DefaultGetWellknownTask @Inject constructor(
                 is Failure.OtherServerError                -> {
                     when (throwable.httpCode) {
                         HttpsURLConnection.HTTP_NOT_FOUND -> WellknownResult.Ignore
-                        else                              -> WellknownResult.FailPrompt
+                        else                              -> WellknownResult.FailPrompt(null, null)
                     }
                 }
                 is MalformedJsonException, is EOFException -> {
-                    WellknownResult.FailPrompt
+                    WellknownResult.FailPrompt(null, null)
                 }
                 else                                       -> {
                     throw throwable
@@ -162,7 +162,7 @@ internal class DefaultGetWellknownTask @Inject constructor(
                         // All is ok
                         WellknownResult.Prompt(homeServerBaseUrl, identityServerBaseUrl, wellKnown)
                     } else {
-                        WellknownResult.FailError
+                        WellknownResult.FailPrompt(homeServerBaseUrl, wellKnown)
                     }
                 } else {
                     WellknownResult.FailError
diff --git a/vector/src/main/java/im/vector/app/features/login/LoginViewModel.kt b/vector/src/main/java/im/vector/app/features/login/LoginViewModel.kt
index 93f8f7a45c..aed186bcd6 100644
--- a/vector/src/main/java/im/vector/app/features/login/LoginViewModel.kt
+++ b/vector/src/main/java/im/vector/app/features/login/LoginViewModel.kt
@@ -522,6 +522,13 @@ class LoginViewModel @AssistedInject constructor(
                 when (data) {
                     is WellknownResult.Prompt          ->
                         onWellknownSuccess(action, data, homeServerConnectionConfig)
+                    is WellknownResult.FailPrompt      ->
+                        // Relax on IS discovery if home server is valid
+                        if (data.homeServerUrl != null && data.wellKnown != null) {
+                            onWellknownSuccess(action, WellknownResult.Prompt(data.homeServerUrl!!, null, data.wellKnown!!), homeServerConnectionConfig)
+                        } else {
+                            onWellKnownError()
+                        }
                     is WellknownResult.InvalidMatrixId -> {
                         setState {
                             copy(
@@ -531,12 +538,7 @@ class LoginViewModel @AssistedInject constructor(
                         _viewEvents.post(LoginViewEvents.Failure(Exception(stringProvider.getString(R.string.login_signin_matrix_id_error_invalid_matrix_id))))
                     }
                     else                               -> {
-                        setState {
-                            copy(
-                                    asyncLoginAction = Uninitialized
-                            )
-                        }
-                        _viewEvents.post(LoginViewEvents.Failure(Exception(stringProvider.getString(R.string.autodiscover_well_known_error))))
+                        onWellKnownError()
                     }
                 }.exhaustive
             }
@@ -547,6 +549,15 @@ class LoginViewModel @AssistedInject constructor(
         })
     }
 
+    private fun onWellKnownError() {
+        setState {
+            copy(
+                    asyncLoginAction = Uninitialized
+            )
+        }
+        _viewEvents.post(LoginViewEvents.Failure(Exception(stringProvider.getString(R.string.autodiscover_well_known_error))))
+    }
+
     private fun onWellknownSuccess(action: LoginAction.LoginOrRegister,
                                    wellKnownPrompt: WellknownResult.Prompt,
                                    homeServerConnectionConfig: HomeServerConnectionConfig?) {