diff --git a/federationapi/routing/send.go b/federationapi/routing/send.go
index e3f84b697..cb7bea6c4 100644
--- a/federationapi/routing/send.go
+++ b/federationapi/routing/send.go
@@ -17,7 +17,6 @@ package routing
 import (
 	"context"
 	"encoding/json"
-	"errors"
 	"fmt"
 	"net/http"
 	"time"
@@ -373,13 +372,10 @@ func (t *txnReq) processEvent(ctx context.Context, e gomatrixserverlib.Event, is
 		return t.processEventWithMissingState(ctx, e, stateResp.RoomVersion, isInboundTxn)
 	}
 
-	// Check that the event is allowed by the state at the event.
-	if err := checkAllowedByState(e, gomatrixserverlib.UnwrapEventHeaders(stateResp.StateEvents)); err != nil {
-		return err
-	}
-
-	// pass the event to the roomserver
-	err := api.SendEvents(
+	// pass the event to the roomserver which will do auth checks
+	// If the event fail auth checks, gmsl.NotAllowed error will be returned which we be silently
+	// discarded by the caller of this function
+	return api.SendEvents(
 		context.Background(),
 		t.rsAPI,
 		[]gomatrixserverlib.HeaderedEvent{
@@ -388,12 +384,6 @@ func (t *txnReq) processEvent(ctx context.Context, e gomatrixserverlib.Event, is
 		api.DoNotSendToOtherServers,
 		nil,
 	)
-	var notAllowed *gomatrixserverlib.NotAllowed
-	if errors.As(err, &notAllowed) {
-		// the event was rejected, silently ignore.
-		err = nil
-	}
-	return err
 }
 
 func checkAllowedByState(e gomatrixserverlib.Event, stateEvents []gomatrixserverlib.Event) error {
diff --git a/roomserver/internal/input/input_events.go b/roomserver/internal/input/input_events.go
index 7ffef1c06..0558cd763 100644
--- a/roomserver/internal/input/input_events.go
+++ b/roomserver/internal/input/input_events.go
@@ -70,17 +70,9 @@ func (r *Inputer) processRoomEvent(
 	if err != nil {
 		return "", fmt.Errorf("r.DB.StoreEvent: %w", err)
 	}
-	// We stop here if the event is rejected: We've stored it but won't update forward extremities or notify anyone about it.
-	if isRejected {
-		logrus.WithFields(logrus.Fields{
-			"event_id": event.EventID(),
-			"type":     event.Type(),
-			"room":     event.RoomID(),
-		}).Debug("Stored rejected event")
-		return event.EventID(), rejectionErr
-	}
+
 	// if storing this event results in it being redacted then do so.
-	if redactedEventID == event.EventID() {
+	if !isRejected && redactedEventID == event.EventID() {
 		r, rerr := eventutil.RedactEvent(redactionEvent, &event)
 		if rerr != nil {
 			return "", fmt.Errorf("eventutil.RedactEvent: %w", rerr)
@@ -111,12 +103,22 @@ func (r *Inputer) processRoomEvent(
 	if stateAtEvent.BeforeStateSnapshotNID == 0 {
 		// We haven't calculated a state for this event yet.
 		// Lets calculate one.
-		err = r.calculateAndSetState(ctx, input, *roomInfo, &stateAtEvent, event)
+		err = r.calculateAndSetState(ctx, input, *roomInfo, &stateAtEvent, event, isRejected)
 		if err != nil {
 			return "", fmt.Errorf("r.calculateAndSetState: %w", err)
 		}
 	}
 
+	// We stop here if the event is rejected: We've stored it but won't update forward extremities or notify anyone about it.
+	if isRejected {
+		logrus.WithFields(logrus.Fields{
+			"event_id": event.EventID(),
+			"type":     event.Type(),
+			"room":     event.RoomID(),
+		}).Debug("Stored rejected event")
+		return event.EventID(), rejectionErr
+	}
+
 	if input.Kind == api.KindRewrite {
 		logrus.WithFields(logrus.Fields{
 			"event_id": event.EventID(),
@@ -167,11 +169,12 @@ func (r *Inputer) calculateAndSetState(
 	roomInfo types.RoomInfo,
 	stateAtEvent *types.StateAtEvent,
 	event gomatrixserverlib.Event,
+	isRejected bool,
 ) error {
 	var err error
 	roomState := state.NewStateResolution(r.DB, roomInfo)
 
-	if input.HasState {
+	if input.HasState && !isRejected {
 		// Check here if we think we're in the room already.
 		stateAtEvent.Overwrite = true
 		var joinEventNIDs []types.EventNID
@@ -198,7 +201,7 @@ func (r *Inputer) calculateAndSetState(
 		stateAtEvent.Overwrite = false
 
 		// We haven't been told what the state at the event is so we need to calculate it from the prev_events
-		if stateAtEvent.BeforeStateSnapshotNID, err = roomState.CalculateAndStoreStateBeforeEvent(ctx, event); err != nil {
+		if stateAtEvent.BeforeStateSnapshotNID, err = roomState.CalculateAndStoreStateBeforeEvent(ctx, event, isRejected); err != nil {
 			return fmt.Errorf("roomState.CalculateAndStoreStateBeforeEvent: %w", err)
 		}
 	}
diff --git a/roomserver/internal/query/query.go b/roomserver/internal/query/query.go
index b34ae7701..fb981447f 100644
--- a/roomserver/internal/query/query.go
+++ b/roomserver/internal/query/query.go
@@ -70,6 +70,7 @@ func (r *Queryer) QueryStateAfterEvents(
 	if err != nil {
 		switch err.(type) {
 		case types.MissingEventError:
+			util.GetLogger(ctx).Errorf("QueryStateAfterEvents: MissingEventError: %s", err)
 			return nil
 		default:
 			return err
diff --git a/roomserver/state/state.go b/roomserver/state/state.go
index 37e6807a3..9ee6f40d4 100644
--- a/roomserver/state/state.go
+++ b/roomserver/state/state.go
@@ -159,7 +159,7 @@ func (v StateResolution) LoadCombinedStateAfterEvents(
 			}
 			fullState = append(fullState, entries...)
 		}
-		if prevState.IsStateEvent() {
+		if prevState.IsStateEvent() && !prevState.IsRejected {
 			// If the prev event was a state event then add an entry for the event itself
 			// so that we get the state after the event rather than the state before.
 			fullState = append(fullState, prevState.StateEntry)
@@ -523,6 +523,7 @@ func init() {
 func (v StateResolution) CalculateAndStoreStateBeforeEvent(
 	ctx context.Context,
 	event gomatrixserverlib.Event,
+	isRejected bool,
 ) (types.StateSnapshotNID, error) {
 	// Load the state at the prev events.
 	prevEventRefs := event.PrevEvents()
@@ -561,7 +562,7 @@ func (v StateResolution) CalculateAndStoreStateAfterEvents(
 
 	if len(prevStates) == 1 {
 		prevState := prevStates[0]
-		if prevState.EventStateKeyNID == 0 {
+		if prevState.EventStateKeyNID == 0 || prevState.IsRejected {
 			// 3) None of the previous events were state events and they all
 			// have the same state, so this event has exactly the same state
 			// as the previous events.
diff --git a/roomserver/storage/postgres/events_table.go b/roomserver/storage/postgres/events_table.go
index 4fad1c76e..c8eb8e2d2 100644
--- a/roomserver/storage/postgres/events_table.go
+++ b/roomserver/storage/postgres/events_table.go
@@ -89,7 +89,7 @@ const bulkSelectStateEventByIDSQL = "" +
 	" ORDER BY event_type_nid, event_state_key_nid ASC"
 
 const bulkSelectStateAtEventByIDSQL = "" +
-	"SELECT event_type_nid, event_state_key_nid, event_nid, state_snapshot_nid FROM roomserver_events" +
+	"SELECT event_type_nid, event_state_key_nid, event_nid, state_snapshot_nid, is_rejected FROM roomserver_events" +
 	" WHERE event_id = ANY($1)"
 
 const updateEventStateSQL = "" +
@@ -258,6 +258,7 @@ func (s *eventStatements) BulkSelectStateAtEventByID(
 			&result.EventStateKeyNID,
 			&result.EventNID,
 			&result.BeforeStateSnapshotNID,
+			&result.IsRejected,
 		); err != nil {
 			return nil, err
 		}
diff --git a/roomserver/storage/sqlite3/events_table.go b/roomserver/storage/sqlite3/events_table.go
index 67d111f52..773e9ade3 100644
--- a/roomserver/storage/sqlite3/events_table.go
+++ b/roomserver/storage/sqlite3/events_table.go
@@ -64,7 +64,7 @@ const bulkSelectStateEventByIDSQL = "" +
 	" ORDER BY event_type_nid, event_state_key_nid ASC"
 
 const bulkSelectStateAtEventByIDSQL = "" +
-	"SELECT event_type_nid, event_state_key_nid, event_nid, state_snapshot_nid FROM roomserver_events" +
+	"SELECT event_type_nid, event_state_key_nid, event_nid, state_snapshot_nid, is_rejected FROM roomserver_events" +
 	" WHERE event_id IN ($1)"
 
 const updateEventStateSQL = "" +
@@ -263,6 +263,7 @@ func (s *eventStatements) BulkSelectStateAtEventByID(
 			&result.EventStateKeyNID,
 			&result.EventNID,
 			&result.BeforeStateSnapshotNID,
+			&result.IsRejected,
 		); err != nil {
 			return nil, err
 		}
diff --git a/roomserver/types/types.go b/roomserver/types/types.go
index f5b45763f..c0fcef65e 100644
--- a/roomserver/types/types.go
+++ b/roomserver/types/types.go
@@ -101,6 +101,9 @@ type StateAtEvent struct {
 	Overwrite bool
 	// The state before the event.
 	BeforeStateSnapshotNID StateSnapshotNID
+	// True if this StateEntry is rejected. State resolution should then treat this
+	// StateEntry as being a message event (not a state event).
+	IsRejected bool
 	// The state entry for the event itself, allows us to calculate the state after the event.
 	StateEntry
 }
diff --git a/sytest-whitelist b/sytest-whitelist
index 0adeaee6f..91516428d 100644
--- a/sytest-whitelist
+++ b/sytest-whitelist
@@ -470,4 +470,6 @@ We can't peek into rooms with shared history_visibility
 We can't peek into rooms with invited history_visibility
 We can't peek into rooms with joined history_visibility
 Local users can peek by room alias
-Peeked rooms only turn up in the sync for the device who peeked them
\ No newline at end of file
+Peeked rooms only turn up in the sync for the device who peeked them
+Room state at a rejected message event is the same as its predecessor
+Room state at a rejected state event is the same as its predecessor
\ No newline at end of file