diff --git a/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/AvatarShape.kt b/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/AvatarShape.kt
index 8f80286abf..c4c2c77766 100644
--- a/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/AvatarShape.kt
+++ b/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/AvatarShape.kt
@@ -11,12 +11,22 @@ import androidx.compose.foundation.shape.CircleShape
 import androidx.compose.foundation.shape.RoundedCornerShape
 import androidx.compose.runtime.Composable
 import androidx.compose.ui.graphics.Shape
+import androidx.compose.ui.unit.Dp
 
 @Composable
-fun AvatarType.avatarShape(): Shape {
+fun AvatarType.User.avatarShape() = CircleShape
+
+@Composable
+fun AvatarType.Room.avatarShape() = CircleShape
+
+@Composable
+fun AvatarType.Space.avatarShape(avatarSize: Dp) = RoundedCornerShape(avatarSize * 0.25f)
+
+@Composable
+fun AvatarType.avatarShape(avatarSize: Dp): Shape {
     return when (this) {
-        is AvatarType.Space -> RoundedCornerShape(cornerSize)
-        is AvatarType.Room,
-        AvatarType.User -> CircleShape
+        is AvatarType.Space -> avatarShape(avatarSize)
+        is AvatarType.Room -> avatarShape()
+        is AvatarType.User -> avatarShape()
     }
 }
diff --git a/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/AvatarType.kt b/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/AvatarType.kt
index 720a0b0e6a..6d99574a55 100644
--- a/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/AvatarType.kt
+++ b/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/AvatarType.kt
@@ -8,7 +8,6 @@
 package io.element.android.libraries.designsystem.components.avatar
 
 import androidx.compose.runtime.Immutable
-import androidx.compose.ui.unit.Dp
 import kotlinx.collections.immutable.ImmutableList
 import kotlinx.collections.immutable.persistentListOf
 
@@ -22,7 +21,6 @@ sealed interface AvatarType {
     ) : AvatarType
 
     data class Space(
-        val cornerSize: Dp,
         val isTombstoned: Boolean = false,
     ) : AvatarType
 }
diff --git a/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/internal/AvatarCluster.kt b/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/internal/AvatarCluster.kt
index 940917ecfd..c100988053 100644
--- a/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/internal/AvatarCluster.kt
+++ b/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/internal/AvatarCluster.kt
@@ -57,7 +57,7 @@ internal fun AvatarCluster(
             InitialOrImageAvatar(
                 avatarData = limitedAvatars[0],
                 hideAvatarImage = hideAvatarImages,
-                avatarShape = avatarType.avatarShape(),
+                avatarShape = avatarType.avatarShape(limitedAvatars[0].size.dp),
                 forcedAvatarSize = null,
                 modifier = modifier,
                 contentDescription = contentDescription,
@@ -106,14 +106,7 @@ internal fun AvatarCluster(
                         InitialOrImageAvatar(
                             avatarData = heroAvatar,
                             hideAvatarImage = hideAvatarImages,
-                            avatarShape = avatarType.let { avatarType ->
-                                if (avatarType is AvatarType.Space) {
-                                    // Reduce corner size for small Space avatars
-                                    avatarType.copy(cornerSize = avatarType.cornerSize / 2f)
-                                } else {
-                                    avatarType
-                                }
-                            }.avatarShape(),
+                            avatarShape = avatarType.avatarShape(heroAvatarSize),
                             forcedAvatarSize = heroAvatarSize,
                             modifier = Modifier,
                             contentDescription = contentDescription,
@@ -134,7 +127,7 @@ internal fun AvatarClusterPreview() = ElementThemedPreview {
         listOf(
             AvatarType.User,
             AvatarType.Room(),
-            AvatarType.Space(8.dp),
+            AvatarType.Space(),
         ).forEach { avatarType ->
             Row(
                 horizontalArrangement = Arrangement.spacedBy(8.dp)
diff --git a/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/internal/SpaceAvatar.kt b/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/internal/SpaceAvatar.kt
index 8f5635105d..b8880744c9 100644
--- a/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/internal/SpaceAvatar.kt
+++ b/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/internal/SpaceAvatar.kt
@@ -32,17 +32,18 @@ internal fun SpaceAvatar(
     hideAvatarImage: Boolean = false,
     contentDescription: String? = null,
 ) {
+    val size = forcedAvatarSize ?: avatarData.size.dp
     when {
         avatarType.isTombstoned -> TombstonedRoomAvatar(
-            size = forcedAvatarSize ?: avatarData.size.dp,
-            avatarShape = avatarType.avatarShape(),
+            size = size,
+            avatarShape = avatarType.avatarShape(size),
             modifier = modifier,
             contentDescription = contentDescription,
         )
         else -> InitialOrImageAvatar(
             avatarData = avatarData,
             hideAvatarImage = hideAvatarImage,
-            avatarShape = avatarType.avatarShape(),
+            avatarShape = avatarType.avatarShape(size),
             forcedAvatarSize = forcedAvatarSize,
             modifier = modifier,
             contentDescription = contentDescription,
@@ -62,12 +63,11 @@ internal fun SpaceAvatarPreview() =
         ) {
             SpaceAvatar(
                 avatarData = anAvatarData(),
-                avatarType = AvatarType.Space(cornerSize = 16.dp),
+                avatarType = AvatarType.Space(),
             )
             SpaceAvatar(
                 avatarData = anAvatarData(),
                 avatarType = AvatarType.Space(
-                    cornerSize = 16.dp,
                     isTombstoned = true,
                 ),
             )
diff --git a/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/internal/TextAvatar.kt b/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/internal/TextAvatar.kt
index c5ce75ad5a..f44319fece 100644
--- a/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/internal/TextAvatar.kt
+++ b/libraries/designsystem/src/main/kotlin/io/element/android/libraries/designsystem/components/avatar/internal/TextAvatar.kt
@@ -77,7 +77,7 @@ internal fun TextAvatarPreview() = ElementPreview {
         listOf(
             AvatarType.User,
             AvatarType.Room(),
-            AvatarType.Space(8.dp),
+            AvatarType.Space(),
         ).forEach { avatarType ->
             TextAvatar(
                 text = "AB",
@@ -86,7 +86,7 @@ internal fun TextAvatarPreview() = ElementPreview {
                     background = ElementTheme.colors.bgSubtlePrimary,
                     foreground = ElementTheme.colors.iconPrimary,
                 ),
-                avatarShape = avatarType.avatarShape(),
+                avatarShape = avatarType.avatarShape(40.dp),
                 contentDescription = null,
             )
         }
diff --git a/libraries/matrixui/src/main/kotlin/io/element/android/libraries/matrix/ui/components/UnsavedAvatar.kt b/libraries/matrixui/src/main/kotlin/io/element/android/libraries/matrix/ui/components/UnsavedAvatar.kt
index db26ecb8da..1e041a69fe 100644
--- a/libraries/matrixui/src/main/kotlin/io/element/android/libraries/matrix/ui/components/UnsavedAvatar.kt
+++ b/libraries/matrixui/src/main/kotlin/io/element/android/libraries/matrix/ui/components/UnsavedAvatar.kt
@@ -50,7 +50,7 @@ fun UnsavedAvatar(
 ) {
     val commonModifier = modifier
         .size(avatarSize.dp)
-        .clip(avatarType.avatarShape())
+        .clip(avatarType.avatarShape(avatarSize.dp))
 
     if (avatarUri != null) {
         val context = LocalContext.current
@@ -87,7 +87,7 @@ internal fun UnsavedAvatarPreview() = ElementPreview {
     ) {
         UnsavedAvatar(null, AvatarSize.EditRoomDetails, AvatarType.User)
         UnsavedAvatar(Uri.EMPTY, AvatarSize.EditRoomDetails, AvatarType.User)
-        UnsavedAvatar(null, AvatarSize.EditRoomDetails, AvatarType.Space(8.dp))
-        UnsavedAvatar(Uri.EMPTY, AvatarSize.EditRoomDetails, AvatarType.Space(8.dp))
+        UnsavedAvatar(null, AvatarSize.EditRoomDetails, AvatarType.Space())
+        UnsavedAvatar(Uri.EMPTY, AvatarSize.EditRoomDetails, AvatarType.Space())
     }
 }