diff --git a/playwright/e2e/left-panel/room-list-view/room-list-header.spec.ts b/playwright/e2e/left-panel/room-list-view/room-list-header.spec.ts
index bda87b04621..2f4ef6f001d 100644
--- a/playwright/e2e/left-panel/room-list-view/room-list-header.spec.ts
+++ b/playwright/e2e/left-panel/room-list-view/room-list-header.spec.ts
@@ -53,6 +53,6 @@ test.describe("Header section of the room list", () => {
 
         const roomListHeader = getHeaderSection(page);
         await expect(roomListHeader.getByRole("heading", { name: "MySpace" })).toBeVisible();
-        await expect(roomListHeader.getByRole("button", { name: "Add" })).not.toBeVisible();
+        await expect(roomListHeader.getByRole("button", { name: "Add" })).toBeVisible();
     });
 });
diff --git a/src/components/viewmodels/roomlist/RoomListHeaderViewModel.tsx b/src/components/viewmodels/roomlist/RoomListHeaderViewModel.tsx
index 3284933a9b8..a37384b7fac 100644
--- a/src/components/viewmodels/roomlist/RoomListHeaderViewModel.tsx
+++ b/src/components/viewmodels/roomlist/RoomListHeaderViewModel.tsx
@@ -23,6 +23,7 @@ import {
     UPDATE_SELECTED_SPACE,
 } from "../../../stores/spaces";
 import SpaceStore from "../../../stores/spaces/SpaceStore";
+import { showCreateNewRoom } from "../../../utils/space";
 
 /**
  * Hook to get the active space and its title.
@@ -55,7 +56,7 @@ export interface RoomListHeaderViewState {
     title: string;
     /**
      * Whether to display the compose menu
-     * True if the user can create rooms and is not in a Space
+     * True if the user can create rooms
      */
     displayComposeMenu: boolean;
     /**
@@ -84,15 +85,13 @@ export interface RoomListHeaderViewState {
 
 /**
  * View model for the RoomListHeader.
- * The actions don't work when called in a space yet.
  */
 export function useRoomListHeaderViewModel(): RoomListHeaderViewState {
     const { activeSpace, title } = useSpace();
 
     const canCreateRoom = shouldShowComponent(UIComponent.CreateRooms);
     const canCreateVideoRoom = useFeatureEnabled("feature_video_rooms");
-    // Temporary: don't display the compose menu when in a Space
-    const displayComposeMenu = canCreateRoom && !activeSpace;
+    const displayComposeMenu = canCreateRoom;
 
     /* Actions */
 
@@ -101,20 +100,30 @@ export function useRoomListHeaderViewModel(): RoomListHeaderViewState {
         PosthogTrackers.trackInteraction("WebRoomListHeaderPlusMenuCreateChatItem", e);
     }, []);
 
-    const createRoom = useCallback((e: Event) => {
-        defaultDispatcher.fire(Action.CreateRoom);
-        PosthogTrackers.trackInteraction("WebRoomListHeaderPlusMenuCreateRoomItem", e);
-    }, []);
+    const createRoom = useCallback(
+        (e: Event) => {
+            if (activeSpace) {
+                showCreateNewRoom(activeSpace);
+            } else {
+                defaultDispatcher.fire(Action.CreateRoom);
+            }
+            PosthogTrackers.trackInteraction("WebRoomListHeaderPlusMenuCreateRoomItem", e);
+        },
+        [activeSpace],
+    );
 
     const elementCallVideoRoomsEnabled = useFeatureEnabled("feature_element_call_video_rooms");
-    const createVideoRoom = useCallback(
-        () =>
+    const createVideoRoom = useCallback(() => {
+        const type = elementCallVideoRoomsEnabled ? RoomType.UnstableCall : RoomType.ElementVideo;
+        if (activeSpace) {
+            showCreateNewRoom(activeSpace, type);
+        } else {
             defaultDispatcher.dispatch({
                 action: Action.CreateRoom,
-                type: elementCallVideoRoomsEnabled ? RoomType.UnstableCall : RoomType.ElementVideo,
-            }),
-        [elementCallVideoRoomsEnabled],
-    );
+                type,
+            });
+        }
+    }, [activeSpace, elementCallVideoRoomsEnabled]);
 
     return {
         title,
diff --git a/test/unit-tests/components/viewmodels/roomlist/RoomListHeaderViewModel-test.tsx b/test/unit-tests/components/viewmodels/roomlist/RoomListHeaderViewModel-test.tsx
index 95a594e3b65..fe96e268614 100644
--- a/test/unit-tests/components/viewmodels/roomlist/RoomListHeaderViewModel-test.tsx
+++ b/test/unit-tests/components/viewmodels/roomlist/RoomListHeaderViewModel-test.tsx
@@ -6,7 +6,7 @@
  */
 
 import { renderHook } from "jest-matrix-react";
-import { type MatrixClient, RoomType } from "matrix-js-sdk/src/matrix";
+import { type MatrixClient, type Room, RoomType } from "matrix-js-sdk/src/matrix";
 import { mocked } from "jest-mock";
 
 import { useRoomListHeaderViewModel } from "../../../../../src/components/viewmodels/roomlist/RoomListHeaderViewModel";
@@ -16,16 +16,23 @@ import { shouldShowComponent } from "../../../../../src/customisations/helpers/U
 import SettingsStore from "../../../../../src/settings/SettingsStore";
 import defaultDispatcher from "../../../../../src/dispatcher/dispatcher";
 import { Action } from "../../../../../src/dispatcher/actions";
+import { showCreateNewRoom } from "../../../../../src/utils/space";
 
 jest.mock("../../../../../src/customisations/helpers/UIComponents", () => ({
     shouldShowComponent: jest.fn(),
 }));
 
+jest.mock("../../../../../src/utils/space", () => ({
+    showCreateNewRoom: jest.fn(),
+}));
+
 describe("useRoomListHeaderViewModel", () => {
     let matrixClient: MatrixClient;
+    let space: Room;
 
     beforeEach(() => {
         matrixClient = stubClient();
+        space = mkStubRoom("spaceId", "spaceName", matrixClient);
     });
 
     afterEach(() => {
@@ -39,8 +46,7 @@ describe("useRoomListHeaderViewModel", () => {
         });
 
         it("should return the current space name as title", () => {
-            const room = mkStubRoom("spaceId", "spaceName", matrixClient);
-            jest.spyOn(SpaceStore.instance, "activeSpaceRoom", "get").mockReturnValue(room);
+            jest.spyOn(SpaceStore.instance, "activeSpaceRoom", "get").mockReturnValue(space);
             const { result } = renderHook(() => useRoomListHeaderViewModel());
 
             expect(result.current.title).toStrictEqual("spaceName");
@@ -81,6 +87,14 @@ describe("useRoomListHeaderViewModel", () => {
         expect(spy).toHaveBeenCalledWith(Action.CreateRoom);
     });
 
+    it("should call showCreateNewRoom when createRoom is called in a space", () => {
+        jest.spyOn(SpaceStore.instance, "activeSpaceRoom", "get").mockReturnValue(space);
+        const { result } = renderHook(() => useRoomListHeaderViewModel());
+        result.current.createRoom(new Event("click"));
+
+        expect(showCreateNewRoom).toHaveBeenCalledWith(space);
+    });
+
     it("should fire Action.CreateRoom with RoomType.UnstableCall when createVideoRoom is called and feature_element_call_video_rooms is enabled", () => {
         jest.spyOn(SettingsStore, "getValue").mockReturnValue(true);
         const spy = jest.spyOn(defaultDispatcher, "dispatch");
@@ -98,4 +112,12 @@ describe("useRoomListHeaderViewModel", () => {
 
         expect(spy).toHaveBeenCalledWith({ action: Action.CreateRoom, type: RoomType.ElementVideo });
     });
+
+    it("should call showCreateNewRoom when createVideoRoom is called in a space", () => {
+        jest.spyOn(SpaceStore.instance, "activeSpaceRoom", "get").mockReturnValue(space);
+        const { result } = renderHook(() => useRoomListHeaderViewModel());
+        result.current.createVideoRoom();
+
+        expect(showCreateNewRoom).toHaveBeenCalledWith(space, RoomType.ElementVideo);
+    });
 });