diff --git a/go.mod b/go.mod
index 580dc3568..c9a7e09b0 100644
--- a/go.mod
+++ b/go.mod
@@ -34,7 +34,7 @@ require (
 	github.com/matrix-org/dugong v0.0.0-20210921133753-66e6b1c67e2e
 	github.com/matrix-org/go-sqlite3-js v0.0.0-20220419092513-28aa791a1c91
 	github.com/matrix-org/gomatrix v0.0.0-20210324163249-be2af5ef2e16
-	github.com/matrix-org/gomatrixserverlib v0.0.0-20220530084946-3a4b148706bc
+	github.com/matrix-org/gomatrixserverlib v0.0.0-20220531163017-35e1cabf12ee
 	github.com/matrix-org/pinecone v0.0.0-20220408153826-2999ea29ed48
 	github.com/matrix-org/util v0.0.0-20200807132607-55161520e1d4
 	github.com/mattn/go-sqlite3 v1.14.13
diff --git a/go.sum b/go.sum
index 75c22a7a7..4460b3905 100644
--- a/go.sum
+++ b/go.sum
@@ -418,8 +418,8 @@ github.com/matrix-org/go-sqlite3-js v0.0.0-20220419092513-28aa791a1c91/go.mod h1
 github.com/matrix-org/gomatrix v0.0.0-20190528120928-7df988a63f26/go.mod h1:3fxX6gUjWyI/2Bt7J1OLhpCzOfO/bB3AiX0cJtEKud0=
 github.com/matrix-org/gomatrix v0.0.0-20210324163249-be2af5ef2e16 h1:ZtO5uywdd5dLDCud4r0r55eP4j9FuUNpl60Gmntcop4=
 github.com/matrix-org/gomatrix v0.0.0-20210324163249-be2af5ef2e16/go.mod h1:/gBX06Kw0exX1HrwmoBibFA98yBk/jxKpGVeyQbff+s=
-github.com/matrix-org/gomatrixserverlib v0.0.0-20220530084946-3a4b148706bc h1:58tT3VznINdRWimb3yYb8QWmTAHX9AAuyOwzdmrp9q4=
-github.com/matrix-org/gomatrixserverlib v0.0.0-20220530084946-3a4b148706bc/go.mod h1:jX38yp3SSLJNftBg3PXU1ayd0PCLIiDHQ4xAc9DIixk=
+github.com/matrix-org/gomatrixserverlib v0.0.0-20220531163017-35e1cabf12ee h1:56sxEWrwB3eOmwjP2S4JsrQf29uBUaf+8WrbQJmjaGE=
+github.com/matrix-org/gomatrixserverlib v0.0.0-20220531163017-35e1cabf12ee/go.mod h1:jX38yp3SSLJNftBg3PXU1ayd0PCLIiDHQ4xAc9DIixk=
 github.com/matrix-org/pinecone v0.0.0-20220408153826-2999ea29ed48 h1:W0sjjC6yjskHX4mb0nk3p0fXAlbU5bAFUFeEtlrPASE=
 github.com/matrix-org/pinecone v0.0.0-20220408153826-2999ea29ed48/go.mod h1:ulJzsVOTssIVp1j/m5eI//4VpAGDkMt5NrRuAVX7wpc=
 github.com/matrix-org/util v0.0.0-20190711121626-527ce5ddefc7/go.mod h1:vVQlW/emklohkZnOPwD3LrZUBqdfsbiyO3p1lNV8F6U=
diff --git a/roomserver/internal/input/input_latest_events.go b/roomserver/internal/input/input_latest_events.go
index a1b094871..59b3fcb12 100644
--- a/roomserver/internal/input/input_latest_events.go
+++ b/roomserver/internal/input/input_latest_events.go
@@ -206,7 +206,7 @@ func (u *latestEventsUpdater) latestState() error {
 	// Work out if the state at the extremities has actually changed
 	// or not. If they haven't then we won't bother doing all of the
 	// hard work.
-	if u.event.StateKey() == nil {
+	if !u.stateAtEvent.IsStateEvent() {
 		stateChanged := false
 		oldStateNIDs := make([]types.StateSnapshotNID, 0, len(u.oldLatest))
 		newStateNIDs := make([]types.StateSnapshotNID, 0, len(u.latest))
diff --git a/roomserver/state/state.go b/roomserver/state/state.go
index 187b996cd..95abdcb36 100644
--- a/roomserver/state/state.go
+++ b/roomserver/state/state.go
@@ -39,6 +39,7 @@ type StateResolutionStorage interface {
 	StateAtEventIDs(ctx context.Context, eventIDs []string) ([]types.StateAtEvent, error)
 	AddState(ctx context.Context, roomNID types.RoomNID, stateBlockNIDs []types.StateBlockNID, state []types.StateEntry) (types.StateSnapshotNID, error)
 	Events(ctx context.Context, eventNIDs []types.EventNID) ([]types.Event, error)
+	EventsFromIDs(ctx context.Context, eventIDs []string) ([]types.Event, error)
 }
 
 type StateResolution struct {
@@ -659,15 +660,13 @@ func (v *StateResolution) calculateStateAfterManyEvents(
 	}
 
 	// Collect all the entries with the same type and key together.
-	// We don't care about the order here because the conflict resolution
-	// algorithm doesn't depend on the order of the prev events.
-	// Remove duplicate entires.
+	// This is done so findDuplicateStateKeys can work in groups.
+	// We remove duplicates (same type, state key and event NID) too.
 	combined = combined[:util.SortAndUnique(stateEntrySorter(combined))]
 
 	// Find the conflicts
-	conflicts := findDuplicateStateKeys(combined)
-
-	if len(conflicts) > 0 {
+	if conflicts := findDuplicateStateKeys(combined); len(conflicts) > 0 {
+		conflictMap := stateEntryMap(conflicts)
 		conflictLength = len(conflicts)
 
 		// 5) There are conflicting state events, for each conflict workout
@@ -676,7 +675,7 @@ func (v *StateResolution) calculateStateAfterManyEvents(
 		// Work out which entries aren't conflicted.
 		var notConflicted []types.StateEntry
 		for _, entry := range combined {
-			if _, ok := stateEntryMap(conflicts).lookup(entry.StateKeyTuple); !ok {
+			if _, ok := conflictMap.lookup(entry.StateKeyTuple); !ok {
 				notConflicted = append(notConflicted, entry)
 			}
 		}
@@ -689,7 +688,7 @@ func (v *StateResolution) calculateStateAfterManyEvents(
 			return
 		}
 		algorithm = "full_state_with_conflicts"
-		state = resolved[:util.SortAndUnique(stateEntrySorter(resolved))]
+		state = resolved
 	} else {
 		algorithm = "full_state_no_conflicts"
 		// 6) There weren't any conflicts
@@ -818,39 +817,19 @@ func (v *StateResolution) resolveConflictsV2(
 	authDifference := make([]*gomatrixserverlib.Event, 0, estimate)
 
 	// For each conflicted event, let's try and get the needed auth events.
-	neededStateKeys := make([]string, 16)
-	authEntries := make([]types.StateEntry, 16)
 	for _, conflictedEvent := range conflictedEvents {
 		// Work out which auth events we need to load.
 		key := conflictedEvent.EventID()
-		needed := gomatrixserverlib.StateNeededForAuth([]*gomatrixserverlib.Event{conflictedEvent})
-
-		// Find the numeric IDs for the necessary state keys.
-		neededStateKeys = neededStateKeys[:0]
-		neededStateKeys = append(neededStateKeys, needed.Member...)
-		neededStateKeys = append(neededStateKeys, needed.ThirdPartyInvite...)
-		stateKeyNIDMap, err := v.db.EventStateKeyNIDs(ctx, neededStateKeys)
-		if err != nil {
-			return nil, err
-		}
-
-		// Load the necessary auth events.
-		tuplesNeeded := v.stateKeyTuplesNeeded(stateKeyNIDMap, needed)
-		authEntries = authEntries[:0]
-		for _, tuple := range tuplesNeeded {
-			if eventNID, ok := stateEntryMap(notConflicted).lookup(tuple); ok {
-				authEntries = append(authEntries, types.StateEntry{
-					StateKeyTuple: tuple,
-					EventNID:      eventNID,
-				})
-			}
-		}
 
 		// Store the newly found auth events in the auth set for this event.
-		authSets[key], _, err = v.loadStateEvents(ctx, authEntries)
+		var authEventMap map[string]types.StateEntry
+		authSets[key], authEventMap, err = v.loadAuthEvents(ctx, conflictedEvent)
 		if err != nil {
 			return nil, err
 		}
+		for k, v := range authEventMap {
+			eventIDMap[k] = v
+		}
 
 		// Only add auth events into the authEvents slice once, otherwise the
 		// check for the auth difference can become expensive and produce
@@ -909,7 +888,7 @@ func (v *StateResolution) resolveConflictsV2(
 	for _, resolvedEvent := range resolvedEvents {
 		entry, ok := eventIDMap[resolvedEvent.EventID()]
 		if !ok {
-			panic(fmt.Errorf("missing state entry for event ID %q", resolvedEvent.EventID()))
+			return nil, fmt.Errorf("missing state entry for event ID %q", resolvedEvent.EventID())
 		}
 		notConflicted = append(notConflicted, entry)
 	}
@@ -996,6 +975,84 @@ func (v *StateResolution) loadStateEvents(
 	return result, eventIDMap, nil
 }
 
+// loadAuthEvents loads all of the auth events for a given event recursively,
+// along with a map that contains state entries for all of the auth events.
+func (v *StateResolution) loadAuthEvents(
+	ctx context.Context, event *gomatrixserverlib.Event,
+) ([]*gomatrixserverlib.Event, map[string]types.StateEntry, error) {
+	eventMap := map[string]struct{}{}
+	var lookup []string
+	var authEvents []types.Event
+	queue := event.AuthEventIDs()
+	for i := 0; i < len(queue); i++ {
+		lookup = lookup[:0]
+		for _, authEventID := range queue {
+			if _, ok := eventMap[authEventID]; ok {
+				continue
+			}
+			lookup = append(lookup, authEventID)
+		}
+		if len(lookup) == 0 {
+			break
+		}
+		events, err := v.db.EventsFromIDs(ctx, lookup)
+		if err != nil {
+			return nil, nil, fmt.Errorf("v.db.EventsFromIDs: %w", err)
+		}
+		add := map[string]struct{}{}
+		for _, event := range events {
+			eventMap[event.EventID()] = struct{}{}
+			authEvents = append(authEvents, event)
+			for _, authEventID := range event.AuthEventIDs() {
+				if _, ok := eventMap[authEventID]; ok {
+					continue
+				}
+				add[authEventID] = struct{}{}
+			}
+			for authEventID := range add {
+				queue = append(queue, authEventID)
+			}
+		}
+	}
+	authEventTypes := map[string]struct{}{}
+	authEventStateKeys := map[string]struct{}{}
+	for _, authEvent := range authEvents {
+		authEventTypes[authEvent.Type()] = struct{}{}
+		authEventStateKeys[*authEvent.StateKey()] = struct{}{}
+	}
+	lookupAuthEventTypes := make([]string, 0, len(authEventTypes))
+	lookupAuthEventStateKeys := make([]string, 0, len(authEventStateKeys))
+	for eventType := range authEventTypes {
+		lookupAuthEventTypes = append(lookupAuthEventTypes, eventType)
+	}
+	for eventStateKey := range authEventStateKeys {
+		lookupAuthEventStateKeys = append(lookupAuthEventStateKeys, eventStateKey)
+	}
+	eventTypes, err := v.db.EventTypeNIDs(ctx, lookupAuthEventTypes)
+	if err != nil {
+		return nil, nil, fmt.Errorf("v.db.EventTypeNIDs: %w", err)
+	}
+	eventStateKeys, err := v.db.EventStateKeyNIDs(ctx, lookupAuthEventStateKeys)
+	if err != nil {
+		return nil, nil, fmt.Errorf("v.db.EventStateKeyNIDs: %w", err)
+	}
+	stateEntryMap := map[string]types.StateEntry{}
+	for _, authEvent := range authEvents {
+		stateEntryMap[authEvent.EventID()] = types.StateEntry{
+			EventNID: authEvent.EventNID,
+			StateKeyTuple: types.StateKeyTuple{
+				EventTypeNID:     eventTypes[authEvent.Type()],
+				EventStateKeyNID: eventStateKeys[*authEvent.StateKey()],
+			},
+		}
+	}
+	nakedEvents := make([]*gomatrixserverlib.Event, 0, len(authEvents))
+	for _, authEvent := range authEvents {
+		nakedEvents = append(nakedEvents, authEvent.Event)
+	}
+	return nakedEvents, stateEntryMap, nil
+}
+
 // findDuplicateStateKeys finds the state entries where the state key tuple appears more than once in a sorted list.
 // Returns a sorted list of those state entries.
 func findDuplicateStateKeys(a []types.StateEntry) []types.StateEntry {
diff --git a/roomserver/storage/shared/room_updater.go b/roomserver/storage/shared/room_updater.go
index d4a2ee3b9..8f4e011bf 100644
--- a/roomserver/storage/shared/room_updater.go
+++ b/roomserver/storage/shared/room_updater.go
@@ -192,6 +192,10 @@ func (u *RoomUpdater) StateAtEventIDs(
 	return u.d.EventsTable.BulkSelectStateAtEventByID(ctx, u.txn, eventIDs)
 }
 
+func (u *RoomUpdater) EventsFromIDs(ctx context.Context, eventIDs []string) ([]types.Event, error) {
+	return u.d.eventsFromIDs(ctx, u.txn, eventIDs, false)
+}
+
 func (u *RoomUpdater) UnsentEventsFromIDs(ctx context.Context, eventIDs []string) ([]types.Event, error) {
 	return u.d.eventsFromIDs(ctx, u.txn, eventIDs, true)
 }