diff --git a/bindings_ffi/src/mls.rs b/bindings_ffi/src/mls.rs
index c64c70107..a9dfbdbc8 100644
--- a/bindings_ffi/src/mls.rs
+++ b/bindings_ffi/src/mls.rs
@@ -3662,6 +3662,90 @@ mod tests {
         assert_eq!(client2_members.len(), 2);
     }
 
+    // ... existing code ...
+
+    #[tokio::test(flavor = "multi_thread", worker_threads = 5)]
+    async fn test_create_new_installation_can_see_dm() {
+        // Create two wallets
+        let wallet1_key = &mut rng();
+        let wallet1 = xmtp_cryptography::utils::LocalWallet::new(wallet1_key);
+        let wallet2_key = &mut rng();
+        let wallet2 = xmtp_cryptography::utils::LocalWallet::new(wallet2_key);
+
+        // Create initial clients
+        let client1 = new_test_client_with_wallet(wallet1.clone()).await;
+        let client2 = new_test_client_with_wallet(wallet2).await;
+
+        // Create DM from client1 to client2
+        let dm_group = client1
+            .conversations()
+            .create_dm(client2.account_address.clone())
+            .await
+            .unwrap();
+
+        // Sync both clients
+        client1.conversations().sync().await.unwrap();
+        client2.conversations().sync().await.unwrap();
+
+        // Verify both clients can see the DM
+        let client1_groups = client1
+            .conversations()
+            .list_dms(FfiListConversationsOptions::default())
+            .unwrap();
+        let client2_groups = client2
+            .conversations()
+            .list_dms(FfiListConversationsOptions::default())
+            .unwrap();
+        assert_eq!(client1_groups.len(), 1, "Client1 should see 1 conversation");
+        assert_eq!(client2_groups.len(), 1, "Client2 should see 1 conversation");
+
+        // Create a second client1 with same wallet
+        let client1_second = new_test_client_with_wallet(wallet1).await;
+
+        // Verify client1_second starts with no conversations
+        let initial_conversations = client1_second
+            .conversations()
+            .list(FfiListConversationsOptions::default())
+            .unwrap();
+        assert_eq!(
+            initial_conversations.len(),
+            0,
+            "New client should start with no conversations"
+        );
+
+        // Send message from client1 to client2
+        dm_group
+            .send("Hello from client1".as_bytes().to_vec())
+            .await
+            .unwrap();
+
+        // Sync all clients
+        client1.conversations().sync().await.unwrap();
+        // client2.conversations().sync().await.unwrap();
+
+        tracing::info!(
+            "ABOUT TO SYNC CLIENT 1 SECOND: {}",
+            client1_second.inbox_id().to_string()
+        );
+        client1_second.conversations().sync().await.unwrap();
+
+        // Verify second client1 can see the DM
+        let client1_second_groups = client1_second
+            .conversations()
+            .list_dms(FfiListConversationsOptions::default())
+            .unwrap();
+        assert_eq!(
+            client1_second_groups.len(),
+            1,
+            "Second client1 should see 1 conversation"
+        );
+        assert_eq!(
+            client1_second_groups[0].conversation.id(),
+            dm_group.id(),
+            "Second client1's conversation should match original DM"
+        );
+    }
+
     #[tokio::test(flavor = "multi_thread", worker_threads = 5)]
     async fn test_create_new_installations_does_not_fork_group() {
         let bo_wallet_key = &mut rng();
diff --git a/xmtp_mls/src/groups/mod.rs b/xmtp_mls/src/groups/mod.rs
index ce62993dc..7ec7ce91f 100644
--- a/xmtp_mls/src/groups/mod.rs
+++ b/xmtp_mls/src/groups/mod.rs
@@ -1699,30 +1699,48 @@ fn validate_dm_group(
     mls_group: &OpenMlsGroup,
     added_by_inbox: &str,
 ) -> Result<(), GroupError> {
+    // Validate dm specific immutable metadata
     let metadata = extract_group_metadata(mls_group)?;
 
-    // Check if the conversation type is DM
+    // 1) Check if the conversation type is DM
     if metadata.conversation_type != ConversationType::Dm {
         return Err(GroupError::Generic(
             "Invalid conversation type for DM group".to_string(),
         ));
     }
 
-    // Check if DmMembers are set and validate their contents
-    if let Some(dm_members) = metadata.dm_members {
-        let our_inbox_id = client.inbox_id();
-        if !((dm_members.member_one_inbox_id == added_by_inbox
-            && dm_members.member_two_inbox_id == our_inbox_id)
-            || (dm_members.member_one_inbox_id == our_inbox_id
-                && dm_members.member_two_inbox_id == added_by_inbox))
+    // 2) If `dm_members` is not set, return an error immediately
+    let dm_members = match &metadata.dm_members {
+        Some(dm) => dm,
+        None => {
+            return Err(GroupError::Generic(
+                "DM group must have DmMembers set".to_string(),
+            ));
+        }
+    };
+
+    // 3) If the inbox that added this group is our inbox, make sure that
+    //    one of the `dm_members` is our inbox id
+    if added_by_inbox == client.inbox_id() {
+        if !(dm_members.member_one_inbox_id == client.inbox_id()
+            || dm_members.member_two_inbox_id == client.inbox_id())
         {
             return Err(GroupError::Generic(
-                "DM members do not match expected inboxes".to_string(),
+                "DM group must have our inbox as one of the dm members".to_string(),
             ));
         }
-    } else {
+        return Ok(());
+    }
+
+    // 4) Otherwise, make sure one of the `dm_members` is ours, and the other is `added_by_inbox`
+    let is_expected_pair = (dm_members.member_one_inbox_id == added_by_inbox
+        && dm_members.member_two_inbox_id == client.inbox_id())
+        || (dm_members.member_one_inbox_id == client.inbox_id()
+            && dm_members.member_two_inbox_id == added_by_inbox);
+
+    if !is_expected_pair {
         return Err(GroupError::Generic(
-            "DM group must have DmMembers set".to_string(),
+            "DM members do not match expected inboxes".to_string(),
         ));
     }