diff --git a/DesignKit/Package.swift b/DesignKit/Package.swift
index 3d40cc3f6..77560275b 100644
--- a/DesignKit/Package.swift
+++ b/DesignKit/Package.swift
@@ -12,7 +12,7 @@ let package = Package(
         .library(name: "DesignKit", targets: ["DesignKit"])
     ],
     dependencies: [
-        .package(url: "https://github.com/vector-im/compound-ios", revision: "50bb7cf313bd1ad17201fc7e4c1184737a0f44c2"),
+        .package(url: "https://github.com/vector-im/compound-ios", revision: "71b0c887880de639c854600a9ada6b5bcc93c719"),
         .package(url: "https://github.com/vector-im/element-design-tokens", exact: "0.0.3"),
         .package(url: "https://github.com/siteline/SwiftUI-Introspect", from: "0.9.0")
     ],
diff --git a/DesignKit/Sources/Colors/ElementColors.swift b/DesignKit/Sources/Colors/ElementColors.swift
index 4862028eb..0808fa8bc 100644
--- a/DesignKit/Sources/Colors/ElementColors.swift
+++ b/DesignKit/Sources/Colors/ElementColors.swift
@@ -30,14 +30,7 @@ public struct ElementColors {
     
     @available(swift, deprecated: 5.0, message: "Use textActionAccent/iconAccentTertiary from Compound.")
     public var brand: Color { colors.accent }
-    
-    public var contentAndAvatars: [Color] { colors.contentAndAvatars }
-    
-    public func avatarBackground(for contentId: String) -> Color {
-        let colorIndex = Int(contentId.hashCode % Int32(contentAndAvatars.count))
-        return contentAndAvatars[colorIndex % contentAndAvatars.count]
-    }
-    
+        
     // MARK: - Temp
     
     /// The background colour of a row in a Form or grouped List.
@@ -45,17 +38,3 @@ public struct ElementColors {
     /// This colour will be removed once Compound form styles are used everywhere.
     public var formRowBackground = Color.compound.bgCanvasDefaultLevel1
 }
-
-private extension String {
-    /// Calculates a numeric hash same as Element Web
-    /// See original function here https://github.com/matrix-org/matrix-react-sdk/blob/321dd49db4fbe360fc2ff109ac117305c955b061/src/utils/FormattingUtils.js#L47
-    var hashCode: Int32 {
-        var hash: Int32 = 0
-
-        for character in self {
-            let shiftedHash = hash << 5
-            hash = shiftedHash.subtractingReportingOverflow(hash).partialValue + Int32(character.unicodeScalars[character.unicodeScalars.startIndex].value)
-        }
-        return abs(hash)
-    }
-}
diff --git a/ElementX.xcodeproj/project.pbxproj b/ElementX.xcodeproj/project.pbxproj
index e36c8e872..e449ea672 100644
--- a/ElementX.xcodeproj/project.pbxproj
+++ b/ElementX.xcodeproj/project.pbxproj
@@ -5607,7 +5607,7 @@
 			repositoryURL = "https://github.com/vector-im/compound-ios";
 			requirement = {
 				kind = revision;
-				revision = 50bb7cf313bd1ad17201fc7e4c1184737a0f44c2;
+				revision = 71b0c887880de639c854600a9ada6b5bcc93c719;
 			};
 		};
 		9A472EE0218FE7DCF5283429 /* XCRemoteSwiftPackageReference "SwiftUI-Introspect" */ = {
diff --git a/ElementX.xcodeproj/project.xcworkspace/xcshareddata/swiftpm/Package.resolved b/ElementX.xcodeproj/project.xcworkspace/xcshareddata/swiftpm/Package.resolved
index c3d2b528f..173b5d1c1 100644
--- a/ElementX.xcodeproj/project.xcworkspace/xcshareddata/swiftpm/Package.resolved
+++ b/ElementX.xcodeproj/project.xcworkspace/xcshareddata/swiftpm/Package.resolved
@@ -13,7 +13,7 @@
       "kind" : "remoteSourceControl",
       "location" : "https://github.com/vector-im/compound-ios",
       "state" : {
-        "revision" : "50bb7cf313bd1ad17201fc7e4c1184737a0f44c2"
+        "revision" : "71b0c887880de639c854600a9ada6b5bcc93c719"
       }
     },
     {
diff --git a/ElementX/Sources/Other/EffectsScene/EffectsScene.swift b/ElementX/Sources/Other/EffectsScene/EffectsScene.swift
index 76003387b..58f0e0bb1 100644
--- a/ElementX/Sources/Other/EffectsScene/EffectsScene.swift
+++ b/ElementX/Sources/Other/EffectsScene/EffectsScene.swift
@@ -18,6 +18,13 @@ import SceneKit
 import SwiftUI
 
 class EffectsScene: SCNScene {
+    static let colors: [Color] = [
+        .blue,
+        .red,
+        .yellow,
+        .green
+    ]
+    
     private enum Constants {
         static let confettiSceneName = "ConfettiScene.scn"
         static let particlesNodeName = "particles"
@@ -26,7 +33,7 @@ class EffectsScene: SCNScene {
     static func confetti() -> EffectsScene? {
         guard let scene = EffectsScene(named: Constants.confettiSceneName) else { return nil }
         
-        let colors: [[Float]] = Color.element.contentAndAvatars.compactMap(\.floatComponents)
+        let colors: [[Float]] = colors.compactMap(\.floatComponents)
         
         if let particles = scene.rootNode.childNode(withName: Constants.particlesNodeName, recursively: false)?.particleSystems?.first {
             // The particles need a non-zero color variation for the handler to affect the color
diff --git a/ElementX/Sources/Other/Extensions/UNNotificationContent.swift b/ElementX/Sources/Other/Extensions/UNNotificationContent.swift
index 6cbbbcc3a..025d67eb9 100644
--- a/ElementX/Sources/Other/Extensions/UNNotificationContent.swift
+++ b/ElementX/Sources/Other/Extensions/UNNotificationContent.swift
@@ -184,7 +184,8 @@ extension UNMutableNotificationContent {
     }
 
     private func getPlaceholderAvatarImageData(name: String, id: String) async -> Data? {
-        let fileName = "notification_placeholder_\(name)_\(id).png"
+        // The version value is used in case the design of the placeholder is updated to force a replacement
+        let fileName = "notification_placeholderV2_\(name)_\(id).png"
         if let data = try? Data(contentsOf: URL.temporaryDirectory.appendingPathComponent(fileName)) {
             MXLog.info("Found existing notification icon placeholder")
             return data
diff --git a/ElementX/Sources/Other/SwiftUI/Views/PlaceholderAvatarImage.swift b/ElementX/Sources/Other/SwiftUI/Views/PlaceholderAvatarImage.swift
index 1a81054a8..6433a56dd 100644
--- a/ElementX/Sources/Other/SwiftUI/Views/PlaceholderAvatarImage.swift
+++ b/ElementX/Sources/Other/SwiftUI/Views/PlaceholderAvatarImage.swift
@@ -33,9 +33,8 @@ struct PlaceholderAvatarImage: View {
                 // This text's frame doesn't look right when redacted
                 if redactionReasons != .placeholder {
                     Text(textForImage)
-                        .padding(geometry.size.width <= 30 ? 0 : 4)
-                        .foregroundColor(.white)
-                        .font(.system(size: 200).weight(.semibold))
+                        .foregroundColor(avatarColor?.foreground ?? .white)
+                        .font(.system(size: geometry.size.width * 0.5625, weight: .semibold))
                         .minimumScaleFactor(0.001)
                         .frame(alignment: .center)
                 }
@@ -55,11 +54,15 @@ struct PlaceholderAvatarImage: View {
             return Color(.systemGray4) // matches the default text redaction
         }
 
+        return avatarColor?.background ?? .compound.iconPrimary
+    }
+    
+    private var avatarColor: AvatarColor? {
         guard let contentID else {
-            return .compound.iconPrimary
+            return nil
         }
-
-        return .element.avatarBackground(for: contentID)
+        
+        return Color.compound.avatarColor(for: contentID)
     }
 }
 
diff --git a/ElementX/Sources/Screens/RoomScreen/View/Style/TimelineItemBubbledStylerView.swift b/ElementX/Sources/Screens/RoomScreen/View/Style/TimelineItemBubbledStylerView.swift
index ecfcc6f89..52a8bec7f 100644
--- a/ElementX/Sources/Screens/RoomScreen/View/Style/TimelineItemBubbledStylerView.swift
+++ b/ElementX/Sources/Screens/RoomScreen/View/Style/TimelineItemBubbledStylerView.swift
@@ -82,7 +82,7 @@ struct TimelineItemBubbledStylerView<Content: View>: View {
                     .accessibilityHidden(true)
                 Text(timelineItem.sender.displayName ?? timelineItem.sender.id)
                     .font(.compound.bodySMSemibold)
-                    .foregroundColor(.compound.textPrimary)
+                    .foregroundColor(.compound.avatarColor(for: timelineItem.sender.id).foreground)
                     .lineLimit(1)
                     .padding(.vertical, senderNameVerticalPadding)
             }
diff --git a/ElementX/Sources/Screens/RoomScreen/View/Style/TimelineItemPlainStylerView.swift b/ElementX/Sources/Screens/RoomScreen/View/Style/TimelineItemPlainStylerView.swift
index 2a1b6cf2e..a606ded73 100644
--- a/ElementX/Sources/Screens/RoomScreen/View/Style/TimelineItemPlainStylerView.swift
+++ b/ElementX/Sources/Screens/RoomScreen/View/Style/TimelineItemPlainStylerView.swift
@@ -94,7 +94,7 @@ struct TimelineItemPlainStylerView<Content: View>: View {
                     TimelineSenderAvatarView(timelineItem: timelineItem)
                     Text(timelineItem.sender.displayName ?? timelineItem.sender.id)
                         .font(.subheadline)
-                        .foregroundColor(.compound.textPrimary)
+                        .foregroundColor(.compound.avatarColor(for: timelineItem.sender.id).foreground)
                         .fontWeight(.semibold)
                         .lineLimit(1)
                 }
diff --git a/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.analyticsPrompt.png b/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.analyticsPrompt.png
index e22e54e91..50f256ff4 100644
--- a/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.analyticsPrompt.png
+++ b/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.analyticsPrompt.png
@@ -1,3 +1,3 @@
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diff --git a/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.authenticationFlow.png b/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.authenticationFlow.png
index 202242c42..80f40852e 100644
--- a/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.authenticationFlow.png
+++ b/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.authenticationFlow.png
@@ -1,3 +1,3 @@
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index bb566469e..a9ab6043c 100644
--- a/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.createPoll.png
+++ b/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.createPoll.png
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diff --git a/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.createRoom-1.png b/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.createRoom-1.png
index e82102779..d78b18108 100644
--- a/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.createRoom-1.png
+++ b/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.createRoom-1.png
@@ -1,3 +1,3 @@
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diff --git a/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.createRoom.png b/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.createRoom.png
index 6f50b7af0..2f32c7fb5 100644
--- a/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.createRoom.png
+++ b/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.createRoom.png
@@ -1,3 +1,3 @@
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diff --git a/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.createRoomNoUsers.png b/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.createRoomNoUsers.png
index 5bed3b1c6..8d3232ea5 100644
--- a/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.createRoomNoUsers.png
+++ b/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.createRoomNoUsers.png
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diff --git a/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.home.png b/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.home.png
index bfec91f18..0ad88bc03 100644
--- a/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.home.png
+++ b/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.home.png
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diff --git a/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.inviteUsers-1.png b/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.inviteUsers-1.png
index 060553fa0..d74d8c237 100644
--- a/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.inviteUsers-1.png
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index 4300686e8..581c7374b 100644
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diff --git a/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.inviteUsersInRoom-1.png b/UITests/Sources/__Snapshots__/Application/en-GB-iPad-9th-generation.inviteUsersInRoom-1.png
index 0e3ac998f..89b6c74ce 100644
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index 2e5804821..3dae79cee 100644
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index 583ca53e2..c869402cf 100644
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diff --git a/changelog.d/1345.bugfix b/changelog.d/1345.bugfix
new file mode 100644
index 000000000..ea824160c
--- /dev/null
+++ b/changelog.d/1345.bugfix
@@ -0,0 +1 @@
+Avatar colouring is aligned to web.
\ No newline at end of file
diff --git a/changelog.d/1603.change b/changelog.d/1603.change
new file mode 100644
index 000000000..5796d2778
--- /dev/null
+++ b/changelog.d/1603.change
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\ No newline at end of file
diff --git a/project.yml b/project.yml
index a3c30e3a5..54228ea0a 100644
--- a/project.yml
+++ b/project.yml
@@ -51,7 +51,7 @@ packages:
     path: DesignKit
   Compound:
     url: https://github.com/vector-im/compound-ios
-    revision: 50bb7cf313bd1ad17201fc7e4c1184737a0f44c2
+    revision: 71b0c887880de639c854600a9ada6b5bcc93c719
     # path: ../compound-ios
   AnalyticsEvents:
     url: https://github.com/matrix-org/matrix-analytics-events