diff --git a/features/createroom/impl/build.gradle.kts b/features/createroom/impl/build.gradle.kts
index 4d3e8f191d..2026ac5214 100644
--- a/features/createroom/impl/build.gradle.kts
+++ b/features/createroom/impl/build.gradle.kts
@@ -52,6 +52,7 @@ dependencies {
     api(projects.features.createroom.api)
 
     testImplementation(libs.test.junit)
+    testImplementation(libs.test.mockk)
     testImplementation(libs.coroutines.test)
     testImplementation(libs.molecule.runtime)
     testImplementation(libs.test.truth)
diff --git a/features/createroom/impl/src/main/kotlin/io/element/android/features/createroom/impl/configureroom/ConfigureRoomPresenter.kt b/features/createroom/impl/src/main/kotlin/io/element/android/features/createroom/impl/configureroom/ConfigureRoomPresenter.kt
index c0a43784f7..7659226bd9 100644
--- a/features/createroom/impl/src/main/kotlin/io/element/android/features/createroom/impl/configureroom/ConfigureRoomPresenter.kt
+++ b/features/createroom/impl/src/main/kotlin/io/element/android/features/createroom/impl/configureroom/ConfigureRoomPresenter.kt
@@ -119,8 +119,8 @@ class ConfigureRoomPresenter @Inject constructor(
         config: CreateRoomConfig,
         createRoomAction: MutableState<Async<RoomId>>
     ) = launch {
-        val mxc = config.avatarUri?.let { uploadAvatar(it) }
         suspend {
+            val mxc = config.avatarUri?.let { uploadAvatar(it) }
             val params = CreateRoomParameters(
                 name = config.roomName,
                 topic = config.topic,
diff --git a/features/createroom/impl/src/test/kotlin/io/element/android/features/createroom/impl/configureroom/ConfigureRoomPresenterTests.kt b/features/createroom/impl/src/test/kotlin/io/element/android/features/createroom/impl/configureroom/ConfigureRoomPresenterTests.kt
index 71ea4062f1..eadad19d23 100644
--- a/features/createroom/impl/src/test/kotlin/io/element/android/features/createroom/impl/configureroom/ConfigureRoomPresenterTests.kt
+++ b/features/createroom/impl/src/test/kotlin/io/element/android/features/createroom/impl/configureroom/ConfigureRoomPresenterTests.kt
@@ -29,21 +29,29 @@ import io.element.android.features.createroom.impl.configureroom.avatar.AvatarAc
 import io.element.android.features.userlist.api.UserListDataStore
 import io.element.android.libraries.architecture.Async
 import io.element.android.libraries.matrix.api.core.RoomId
+import io.element.android.libraries.matrix.test.AN_AVATAR_URL
 import io.element.android.libraries.matrix.test.A_MESSAGE
 import io.element.android.libraries.matrix.test.A_ROOM_NAME
 import io.element.android.libraries.matrix.test.A_THROWABLE
 import io.element.android.libraries.matrix.test.FakeMatrixClient
 import io.element.android.libraries.matrix.ui.components.aMatrixUser
 import io.element.android.libraries.mediapickers.test.FakePickerProvider
+import io.element.android.libraries.mediaupload.api.MediaUploadInfo
 import io.element.android.libraries.mediaupload.test.FakeMediaPreProcessor
+import io.mockk.every
+import io.mockk.mockk
+import io.mockk.mockkStatic
+import io.mockk.unmockkAll
 import kotlinx.collections.immutable.persistentListOf
 import kotlinx.collections.immutable.toImmutableList
 import kotlinx.coroutines.ExperimentalCoroutinesApi
 import kotlinx.coroutines.test.runTest
+import org.junit.After
 import org.junit.Before
 import org.junit.Test
 import org.junit.runner.RunWith
 import org.robolectric.RobolectricTestRunner
+import java.io.File
 
 private const val AN_URI_FROM_CAMERA = "content://uri_from_camera"
 private const val AN_URI_FROM_GALLERY = "content://uri_from_gallery"
@@ -56,6 +64,7 @@ class ConfigureRoomPresenterTests {
     private lateinit var createRoomDataStore: CreateRoomDataStore
     private lateinit var fakeMatrixClient: FakeMatrixClient
     private lateinit var fakePickerProvider: FakePickerProvider
+    private lateinit var fakeMediaPreProcessor: FakeMediaPreProcessor
 
     @Before
     fun setup() {
@@ -63,12 +72,21 @@ class ConfigureRoomPresenterTests {
         userListDataStore = UserListDataStore()
         createRoomDataStore = CreateRoomDataStore(userListDataStore)
         fakePickerProvider = FakePickerProvider()
+        fakeMediaPreProcessor = FakeMediaPreProcessor()
         presenter = ConfigureRoomPresenter(
             dataStore = createRoomDataStore,
             matrixClient = fakeMatrixClient,
             mediaPickerProvider = fakePickerProvider,
-            mediaPreProcessor = FakeMediaPreProcessor(),
+            mediaPreProcessor = fakeMediaPreProcessor,
         )
+
+        mockkStatic(File::readBytes)
+        every { any<File>().readBytes() } returns byteArrayOf()
+    }
+
+    @After
+    fun tearDown() {
+        unmockkAll()
     }
 
     @Test
@@ -206,6 +224,30 @@ class ConfigureRoomPresenterTests {
         }
     }
 
+    @Test
+    fun `present - trigger create room with upload error and retry`() = runTest {
+        moleculeFlow(RecompositionClock.Immediate) {
+            presenter.present()
+        }.test {
+            skipItems(1)
+            createRoomDataStore.setAvatarUri(Uri.parse(AN_URI_FROM_GALLERY))
+            fakeMediaPreProcessor.givenResult(Result.success(MediaUploadInfo.Image(mockk(), mockk(), null)))
+            fakeMatrixClient.givenUploadMediaResult(Result.failure(A_THROWABLE))
+
+            val initialState = awaitItem()
+            initialState.eventSink(ConfigureRoomEvents.CreateRoom(initialState.config))
+            val stateAfterCreateRoom = awaitItem()
+            assertThat(stateAfterCreateRoom.createRoomAction).isInstanceOf(Async.Failure::class.java)
+
+            fakeMatrixClient.givenUploadMediaResult(Result.success(AN_AVATAR_URL))
+            stateAfterCreateRoom.eventSink(ConfigureRoomEvents.CreateRoom(initialState.config))
+            assertThat(awaitItem().createRoomAction).isInstanceOf(Async.Uninitialized::class.java)
+            assertThat(awaitItem().createRoomAction).isInstanceOf(Async.Loading::class.java)
+            assertThat(awaitItem().createRoomAction).isInstanceOf(Async.Success::class.java)
+
+        }
+    }
+
     @Test
     fun `present - trigger retry and cancel actions`() = runTest {
         moleculeFlow(RecompositionClock.Immediate) {
diff --git a/libraries/matrix/test/src/main/kotlin/io/element/android/libraries/matrix/test/FakeMatrixClient.kt b/libraries/matrix/test/src/main/kotlin/io/element/android/libraries/matrix/test/FakeMatrixClient.kt
index 51088115ed..bdf76c8e05 100644
--- a/libraries/matrix/test/src/main/kotlin/io/element/android/libraries/matrix/test/FakeMatrixClient.kt
+++ b/libraries/matrix/test/src/main/kotlin/io/element/android/libraries/matrix/test/FakeMatrixClient.kt
@@ -59,6 +59,7 @@ class FakeMatrixClient(
     private val getRoomResults = mutableMapOf<RoomId, MatrixRoom>()
     private val searchUserResults = mutableMapOf<String, Result<MatrixSearchUserResults>>()
     private val getProfileResults = mutableMapOf<UserId, Result<MatrixUser>>()
+    private var uploadMediaResult: Result<String> = Result.success(AN_AVATAR_URL)
 
     override fun getRoom(roomId: RoomId): MatrixRoom? {
         return getRoomResults[roomId]
@@ -127,7 +128,7 @@ class FakeMatrixClient(
     }
 
     override suspend fun uploadMedia(mimeType: String, data: ByteArray): Result<String> {
-        return Result.success("")
+        return uploadMediaResult
     }
 
     override fun sessionVerificationService(): SessionVerificationService = sessionVerificationService
@@ -183,4 +184,8 @@ class FakeMatrixClient(
     fun givenGetProfileResult(userId: UserId, result: Result<MatrixUser>) {
         getProfileResults[userId] = result
     }
+
+    fun givenUploadMediaResult(result: Result<String>) {
+        uploadMediaResult = result
+    }
 }