diff --git a/src/components/structures/MatrixChat.tsx b/src/components/structures/MatrixChat.tsx
index 8b23455967b..0f122b2d5f9 100644
--- a/src/components/structures/MatrixChat.tsx
+++ b/src/components/structures/MatrixChat.tsx
@@ -1631,8 +1631,12 @@ export default class MatrixChat extends React.PureComponent<IProps, IState> {
         cli.on(CryptoEvent.KeyBackupFailed, async (errcode): Promise<void> => {
             let haveNewVersion: boolean | undefined;
             let newVersionInfo: KeyBackupInfo | null = null;
+            const keyBackupEnabled = Boolean(
+                cli.getCrypto() && (await cli.getCrypto()?.getActiveSessionBackupVersion()) !== null,
+            );
+
             // if key backup is still enabled, there must be a new backup in place
-            if (cli.getKeyBackupEnabled()) {
+            if (keyBackupEnabled) {
                 haveNewVersion = true;
             } else {
                 // otherwise check the server to see if there's a new one
@@ -1650,7 +1654,6 @@ export default class MatrixChat extends React.PureComponent<IProps, IState> {
                     import(
                         "../../async-components/views/dialogs/security/NewRecoveryMethodDialog"
                     ) as unknown as Promise<typeof NewRecoveryMethodDialog>,
-                    { newVersionInfo: newVersionInfo! },
                 );
             } else {
                 Modal.createDialogAsync(
diff --git a/test/unit-tests/components/structures/MatrixChat-test.tsx b/test/unit-tests/components/structures/MatrixChat-test.tsx
index 4b10043ad2e..da6e005a23d 100644
--- a/test/unit-tests/components/structures/MatrixChat-test.tsx
+++ b/test/unit-tests/components/structures/MatrixChat-test.tsx
@@ -22,7 +22,7 @@ import { logger } from "matrix-js-sdk/src/logger";
 import { OidcError } from "matrix-js-sdk/src/oidc/error";
 import { BearerTokenResponse } from "matrix-js-sdk/src/oidc/validate";
 import { defer, IDeferred, sleep } from "matrix-js-sdk/src/utils";
-import { UserVerificationStatus } from "matrix-js-sdk/src/crypto-api";
+import { CryptoEvent, UserVerificationStatus } from "matrix-js-sdk/src/crypto-api";
 
 import MatrixChat from "../../../../src/components/structures/MatrixChat";
 import * as StorageAccess from "../../../../src/utils/StorageAccess";
@@ -135,6 +135,7 @@ describe("<MatrixChat />", () => {
             getVersion: jest.fn().mockReturnValue("1"),
             setDeviceIsolationMode: jest.fn(),
             userHasCrossSigningKeys: jest.fn(),
+            getActiveSessionBackupVersion: jest.fn().mockResolvedValue(null),
         }),
         // This needs to not finish immediately because we need to test the screen appears
         bootstrapCrossSigning: jest.fn().mockImplementation(() => bootstrapDeferred.promise),
@@ -1515,4 +1516,22 @@ describe("<MatrixChat />", () => {
             expect(screen.getByTestId("mobile-register")).toBeInTheDocument();
         });
     });
+
+    describe("when key backup failed", () => {
+        it("should show the new recovery method dialog", async () => {
+            jest.mock("../../../../src/async-components/views/dialogs/security/NewRecoveryMethodDialog", () => ({
+                __esModule: true,
+                default: () => <span>mocked dialog</span>,
+            }));
+            jest.spyOn(mockClient.getCrypto()!, "getActiveSessionBackupVersion").mockResolvedValue("version");
+
+            getComponent({});
+            defaultDispatcher.dispatch({
+                action: "will_start_client",
+            });
+            await flushPromises();
+            mockClient.emit(CryptoEvent.KeyBackupFailed, "error code");
+            await waitFor(() => expect(screen.getByText("mocked dialog")).toBeInTheDocument());
+        });
+    });
 });