diff --git a/crates/matrix-sdk-ui/src/timeline/event_handler.rs b/crates/matrix-sdk-ui/src/timeline/event_handler.rs
index e4338d0793..bcfbaffba9 100644
--- a/crates/matrix-sdk-ui/src/timeline/event_handler.rs
+++ b/crates/matrix-sdk-ui/src/timeline/event_handler.rs
@@ -46,6 +46,7 @@ use ruma::{
     },
     serde::Raw,
     EventId, MilliSecondsSinceUnixEpoch, OwnedEventId, OwnedTransactionId, OwnedUserId,
+    TransactionId,
 };
 use tracing::{debug, error, field::debug, info, instrument, trace, warn};
 
@@ -1096,12 +1097,14 @@ impl<'a, 'o> TimelineEventHandler<'a, 'o> {
         );
 
         match &self.ctx.flow {
-            Flow::Local { .. } => {
+            Flow::Local { txn_id, .. } => {
                 trace!("Adding new local timeline item");
 
                 let removed_duplicated_timeline_item = Self::deduplicate_local_timeline_item(
                     &mut self.items,
                     &mut item,
+                    None,
+                    Some(&txn_id),
                     &self.meta,
                     &self.settings,
                 );
@@ -1111,10 +1114,14 @@ impl<'a, 'o> TimelineEventHandler<'a, 'o> {
                 self.items.push_back(item, None);
             }
 
-            Flow::Remote { position: TimelineItemPosition::Start { .. }, .. } => {
+            Flow::Remote {
+                position: TimelineItemPosition::Start { .. }, event_id, txn_id, ..
+            } => {
                 let removed_duplicated_timeline_item = Self::deduplicate_local_timeline_item(
                     &mut self.items,
                     &mut item,
+                    Some(&event_id),
+                    txn_id.as_ref().map(AsRef::as_ref),
                     &self.meta,
                     &self.settings,
                 );
@@ -1126,10 +1133,17 @@ impl<'a, 'o> TimelineEventHandler<'a, 'o> {
                 self.items.push_front(item, Some(0));
             }
 
-            Flow::Remote { position: TimelineItemPosition::At { event_index, .. }, .. } => {
+            Flow::Remote {
+                position: TimelineItemPosition::At { event_index, .. },
+                event_id,
+                txn_id,
+                ..
+            } => {
                 let removed_duplicated_timeline_item = Self::deduplicate_local_timeline_item(
                     &mut self.items,
                     &mut item,
+                    Some(&event_id),
+                    txn_id.as_ref().map(AsRef::as_ref),
                     &self.meta,
                     &self.settings,
                 );
@@ -1183,11 +1197,15 @@ impl<'a, 'o> TimelineEventHandler<'a, 'o> {
                 self.items.insert(timeline_item_index, item, Some(event_index));
             }
 
-            Flow::Remote { position: TimelineItemPosition::End { .. }, event_id, .. } => {
+            Flow::Remote {
+                position: TimelineItemPosition::End { .. }, event_id, txn_id, ..
+            } => {
                 dbg!(&item);
                 let removed_duplicated_timeline_item = Self::deduplicate_local_timeline_item(
                     &mut self.items,
                     &mut item,
+                    Some(&event_id),
+                    txn_id.as_ref().map(AsRef::as_ref),
                     &self.meta,
                     &self.settings,
                 );
@@ -1283,6 +1301,8 @@ impl<'a, 'o> TimelineEventHandler<'a, 'o> {
     fn deduplicate_local_timeline_item(
         items: &mut ObservableItemsTransaction<'_>,
         new_event_timeline_item: &mut EventTimelineItem,
+        event_id: Option<&EventId>,
+        transaction_id: Option<&TransactionId>,
         metadata: &TimelineMetadata,
         settings: &TimelineSettings,
     ) -> Option<Arc<TimelineItem>> {
@@ -1305,14 +1325,14 @@ impl<'a, 'o> TimelineEventHandler<'a, 'o> {
             }
         }
 
-        let event_id = new_event_timeline_item.event_id();
-        let transaction_id = new_event_timeline_item.transaction_id();
-
         // Start with the canonical case: detect a local timeline item that matches
         // `event_id` or `transaction_id`.
         if let Some((local_timeline_item_index, local_timeline_item)) =
             rfind_event_item(items, |event_timeline_item| {
-                if event_timeline_item.is_local_echo() {
+                dbg!("==============================================");
+                if dbg!(event_timeline_item.is_local_echo()) {
+                    dbg!(&event_id, event_timeline_item.event_id());
+                    dbg!(&transaction_id, event_timeline_item.transaction_id());
                     event_id == event_timeline_item.event_id()
                         || (transaction_id.is_some()
                             && transaction_id == event_timeline_item.transaction_id())
diff --git a/crates/matrix-sdk-ui/src/timeline/tests/echo.rs b/crates/matrix-sdk-ui/src/timeline/tests/echo.rs
index 106906b06b..683f643ec8 100644
--- a/crates/matrix-sdk-ui/src/timeline/tests/echo.rs
+++ b/crates/matrix-sdk-ui/src/timeline/tests/echo.rs
@@ -177,12 +177,14 @@ async fn test_remote_echo_new_position() {
         .await;
 
     // … the remote echo replaces the previous event.
-    let item = assert_next_matches!(stream, VectorDiff::Set { index: 3, value } => value);
+    assert_next_matches!(stream, VectorDiff::Remove { index: 3 });
+    let item = assert_next_matches!(stream, VectorDiff::Insert { index: 2, value} => value);
     assert!(!item.as_event().unwrap().is_local_echo());
 
-    // … the date divider is removed (because both bob's and alice's message are
-    // from the same day according to server timestamps).
-    assert_next_matches!(stream, VectorDiff::Remove { index: 2 });
+    // Date divider is updated.
+    assert_next_matches!(stream, VectorDiff::Remove { index: 3 });
+
+    assert_pending!(stream);
 }
 
 #[async_test]