diff --git a/crates/matrix-sdk-base/src/response_processors.rs b/crates/matrix-sdk-base/src/response_processors.rs
index a6a35a5446c..23d09e8f57e 100644
--- a/crates/matrix-sdk-base/src/response_processors.rs
+++ b/crates/matrix-sdk-base/src/response_processors.rs
@@ -20,7 +20,7 @@ use std::{
 use ruma::{
     events::{AnyGlobalAccountDataEvent, GlobalAccountDataEventType},
     serde::Raw,
-    OwnedUserId, RoomId,
+    RoomId,
 };
 use tracing::{debug, instrument, trace, warn};
 
@@ -94,7 +94,7 @@ impl AccountDataProcessor {
         for event in events {
             let AnyGlobalAccountDataEvent::Direct(direct_event) = event else { continue };
 
-            let mut new_dms = HashMap::<&RoomId, HashSet<OwnedUserId>>::new();
+            let mut new_dms = HashMap::<&RoomId, HashSet<String>>::new();
             for (user_id, rooms) in direct_event.content.iter() {
                 for room_id in rooms {
                     new_dms.entry(room_id).or_default().insert(user_id.clone());
diff --git a/crates/matrix-sdk-base/src/rooms/mod.rs b/crates/matrix-sdk-base/src/rooms/mod.rs
index 9aa9b102750..f010465cc10 100644
--- a/crates/matrix-sdk-base/src/rooms/mod.rs
+++ b/crates/matrix-sdk-base/src/rooms/mod.rs
@@ -125,7 +125,7 @@ pub struct BaseRoomInfo {
     pub(crate) create: Option<MinimalStateEvent<RoomCreateWithCreatorEventContent>>,
     /// A list of user ids this room is considered as direct message, if this
     /// room is a DM.
-    pub(crate) dm_targets: HashSet<OwnedUserId>,
+    pub(crate) dm_targets: HashSet<String>,
     /// The `m.room.encryption` event content that enabled E2EE in this room.
     pub(crate) encryption: Option<RoomEncryptionEventContent>,
     /// The guest access policy of this room.
diff --git a/crates/matrix-sdk-base/src/rooms/normal.rs b/crates/matrix-sdk-base/src/rooms/normal.rs
index 7181d4d4824..cad043603f7 100644
--- a/crates/matrix-sdk-base/src/rooms/normal.rs
+++ b/crates/matrix-sdk-base/src/rooms/normal.rs
@@ -460,7 +460,7 @@ impl Room {
     /// only be considered as guidance. We leave members in this list to allow
     /// us to re-find a DM with a user even if they have left, since we may
     /// want to re-invite them.
-    pub fn direct_targets(&self) -> HashSet<OwnedUserId> {
+    pub fn direct_targets(&self) -> HashSet<String> {
         self.inner.read().base_info.dm_targets.clone()
     }
 
diff --git a/crates/matrix-sdk-base/src/sliding_sync/mod.rs b/crates/matrix-sdk-base/src/sliding_sync/mod.rs
index 9350492a098..ca4ceef2944 100644
--- a/crates/matrix-sdk-base/src/sliding_sync/mod.rs
+++ b/crates/matrix-sdk-base/src/sliding_sync/mod.rs
@@ -1331,7 +1331,7 @@ mod tests {
         create_dm(&client, room_id, user_a_id, user_b_id, MembershipState::Join).await;
 
         // (Sanity: B is a direct target, and is in Join state)
-        assert!(direct_targets(&client, room_id).contains(user_b_id));
+        assert!(direct_targets(&client, room_id).contains(user_b_id.as_str()));
         assert_eq!(membership(&client, room_id, user_b_id).await, MembershipState::Join);
 
         // When B leaves
@@ -1340,7 +1340,7 @@ mod tests {
         // Then B is still a direct target, and is in Leave state (B is a direct target
         // because we want to return to our old DM in the UI even if the other
         // user left, so we can reinvite them. See https://github.com/matrix-org/matrix-rust-sdk/issues/2017)
-        assert!(direct_targets(&client, room_id).contains(user_b_id));
+        assert!(direct_targets(&client, room_id).contains(user_b_id.as_str()));
         assert_eq!(membership(&client, room_id, user_b_id).await, MembershipState::Leave);
     }
 
@@ -1356,7 +1356,7 @@ mod tests {
         create_dm(&client, room_id, user_a_id, user_b_id, MembershipState::Invite).await;
 
         // (Sanity: B is a direct target, and is in Invite state)
-        assert!(direct_targets(&client, room_id).contains(user_b_id));
+        assert!(direct_targets(&client, room_id).contains(user_b_id.as_str()));
         assert_eq!(membership(&client, room_id, user_b_id).await, MembershipState::Invite);
 
         // When B declines the invitation (i.e. leaves)
@@ -1365,7 +1365,7 @@ mod tests {
         // Then B is still a direct target, and is in Leave state (B is a direct target
         // because we want to return to our old DM in the UI even if the other
         // user left, so we can reinvite them. See https://github.com/matrix-org/matrix-rust-sdk/issues/2017)
-        assert!(direct_targets(&client, room_id).contains(user_b_id));
+        assert!(direct_targets(&client, room_id).contains(user_b_id.as_str()));
         assert_eq!(membership(&client, room_id, user_b_id).await, MembershipState::Leave);
     }
 
@@ -1383,7 +1383,7 @@ mod tests {
         assert_eq!(membership(&client, room_id, user_a_id).await, MembershipState::Join);
 
         // (Sanity: B is a direct target, and is in Join state)
-        assert!(direct_targets(&client, room_id).contains(user_b_id));
+        assert!(direct_targets(&client, room_id).contains(user_b_id.as_str()));
         assert_eq!(membership(&client, room_id, user_b_id).await, MembershipState::Join);
 
         let room = client.get_room(room_id).unwrap();
@@ -1407,7 +1407,7 @@ mod tests {
         assert_eq!(membership(&client, room_id, user_a_id).await, MembershipState::Join);
 
         // (Sanity: B is a direct target, and is in Join state)
-        assert!(direct_targets(&client, room_id).contains(user_b_id));
+        assert!(direct_targets(&client, room_id).contains(user_b_id.as_str()));
         assert_eq!(membership(&client, room_id, user_b_id).await, MembershipState::Invite);
 
         let room = client.get_room(room_id).unwrap();
@@ -2553,8 +2553,8 @@ mod tests {
         set_room_joined(&mut room_response, user_a_id);
         let mut response = response_with_room(room_id_1, room_response);
         let mut direct_content = BTreeMap::new();
-        direct_content.insert(user_a_id.to_owned(), vec![room_id_1.to_owned()]);
-        direct_content.insert(user_b_id.to_owned(), vec![room_id_2.to_owned()]);
+        direct_content.insert(user_a_id.to_string(), vec![room_id_1.to_owned()]);
+        direct_content.insert(user_b_id.to_string(), vec![room_id_2.to_owned()]);
         response
             .extensions
             .account_data
@@ -2665,7 +2665,7 @@ mod tests {
         member.membership().clone()
     }
 
-    fn direct_targets(client: &BaseClient, room_id: &RoomId) -> HashSet<OwnedUserId> {
+    fn direct_targets(client: &BaseClient, room_id: &RoomId) -> HashSet<String> {
         let room = client.get_room(room_id).expect("Room not found!");
         room.direct_targets()
     }
@@ -2725,7 +2725,7 @@ mod tests {
         room_ids: Vec<OwnedRoomId>,
     ) {
         let mut direct_content = BTreeMap::new();
-        direct_content.insert(user_id, room_ids);
+        direct_content.insert(user_id.to_string(), room_ids);
         response
             .extensions
             .account_data
diff --git a/crates/matrix-sdk-base/src/store/migration_helpers.rs b/crates/matrix-sdk-base/src/store/migration_helpers.rs
index 76acb86cf48..a0e23ec218e 100644
--- a/crates/matrix-sdk-base/src/store/migration_helpers.rs
+++ b/crates/matrix-sdk-base/src/store/migration_helpers.rs
@@ -37,7 +37,7 @@ use ruma::{
         },
         EmptyStateKey, EventContent, RedactContent, StateEventContent, StateEventType,
     },
-    OwnedRoomId, OwnedUserId, RoomId,
+    OwnedRoomId, RoomId,
 };
 use serde::{Deserialize, Serialize};
 
@@ -155,7 +155,7 @@ fn encryption_state_default() -> bool {
 struct BaseRoomInfoV1 {
     avatar: Option<MinimalStateEvent<RoomAvatarEventContent>>,
     canonical_alias: Option<MinimalStateEvent<RoomCanonicalAliasEventContent>>,
-    dm_targets: HashSet<OwnedUserId>,
+    dm_targets: HashSet<String>,
     encryption: Option<RoomEncryptionEventContent>,
     guest_access: Option<MinimalStateEvent<RoomGuestAccessEventContent>>,
     history_visibility: Option<MinimalStateEvent<RoomHistoryVisibilityEventContent>>,
diff --git a/crates/matrix-sdk-common/src/direct_event.rs b/crates/matrix-sdk-common/src/direct_event.rs
new file mode 100644
index 00000000000..34ca90d215b
--- /dev/null
+++ b/crates/matrix-sdk-common/src/direct_event.rs
@@ -0,0 +1,45 @@
+use std::{
+    collections::{btree_map, BTreeMap},
+    ops::{Deref, DerefMut},
+};
+
+use ruma::OwnedRoomId;
+use ruma_macros::EventContent;
+use serde::{Deserialize, Serialize};
+
+#[derive(Clone, Debug, Default, Deserialize, Serialize, EventContent)]
+#[allow(clippy::exhaustive_structs)]
+#[ruma_event(type = "m.direct", kind = GlobalAccountData)]
+pub struct DirectEventContent(pub BTreeMap<String, Vec<OwnedRoomId>>);
+
+impl Deref for DirectEventContent {
+    type Target = BTreeMap<String, Vec<OwnedRoomId>>;
+
+    fn deref(&self) -> &Self::Target {
+        &self.0
+    }
+}
+
+impl DerefMut for DirectEventContent {
+    fn deref_mut(&mut self) -> &mut Self::Target {
+        &mut self.0
+    }
+}
+
+impl IntoIterator for DirectEventContent {
+    type Item = (String, Vec<OwnedRoomId>);
+    type IntoIter = btree_map::IntoIter<String, Vec<OwnedRoomId>>;
+
+    fn into_iter(self) -> Self::IntoIter {
+        self.0.into_iter()
+    }
+}
+
+impl FromIterator<(String, Vec<OwnedRoomId>)> for DirectEventContent {
+    fn from_iter<T>(iter: T) -> Self
+    where
+        T: IntoIterator<Item = (String, Vec<OwnedRoomId>)>,
+    {
+        Self(BTreeMap::from_iter(iter))
+    }
+}
diff --git a/crates/matrix-sdk/src/account.rs b/crates/matrix-sdk/src/account.rs
index 249bfa3129e..551d63ce42a 100644
--- a/crates/matrix-sdk/src/account.rs
+++ b/crates/matrix-sdk/src/account.rs
@@ -861,7 +861,7 @@ impl Account {
         };
 
         for user_id in user_ids {
-            content.entry(user_id.to_owned()).or_default().push(room_id.to_owned());
+            content.entry(user_id.to_string()).or_default().push(room_id.to_owned());
         }
 
         // TODO: We should probably save the fact that we need to send this out
diff --git a/crates/matrix-sdk/src/encryption/mod.rs b/crates/matrix-sdk/src/encryption/mod.rs
index a6ecc1f7754..be918094a57 100644
--- a/crates/matrix-sdk/src/encryption/mod.rs
+++ b/crates/matrix-sdk/src/encryption/mod.rs
@@ -607,7 +607,7 @@ impl Client {
         // Find the room we share with the `user_id` and only with `user_id`
         let room = rooms.into_iter().find(|r| {
             let targets = r.direct_targets();
-            targets.len() == 1 && targets.contains(user_id)
+            targets.len() == 1 && targets.contains(user_id.as_str())
         });
 
         trace!(?room, "Found room");
diff --git a/crates/matrix-sdk/src/room/mod.rs b/crates/matrix-sdk/src/room/mod.rs
index 2aba1c9b852..30774fb02fd 100644
--- a/crates/matrix-sdk/src/room/mod.rs
+++ b/crates/matrix-sdk/src/room/mod.rs
@@ -1205,7 +1205,7 @@ impl Room {
             room_members.retain(|member| member.user_id() != self.own_user_id());
 
             for member in room_members {
-                let entry = content.entry(member.user_id().to_owned()).or_default();
+                let entry = content.entry(member.user_id().to_string()).or_default();
                 if !entry.iter().any(|room_id| room_id == this_room_id) {
                     entry.push(this_room_id.to_owned());
                 }
diff --git a/crates/matrix-sdk/tests/integration/client.rs b/crates/matrix-sdk/tests/integration/client.rs
index 589087296a5..fff1f25e5d9 100644
--- a/crates/matrix-sdk/tests/integration/client.rs
+++ b/crates/matrix-sdk/tests/integration/client.rs
@@ -496,7 +496,7 @@ async fn test_marking_room_as_dm() {
             "The body of the PUT /account_data request should be a valid DirectEventContent",
         );
 
-        let bob_entry = content.get(bob).expect("We should have bob in the direct event content");
+        let bob_entry = content.get(bob.as_str()).expect("We should have bob in the direct event content");
 
         assert_eq!(content.len(), 2, "We should have entries for bob and foo");
         assert_eq!(bob_entry.len(), 3, "Bob should have 3 direct rooms");
diff --git a/crates/matrix-sdk/tests/integration/room/common.rs b/crates/matrix-sdk/tests/integration/room/common.rs
index f742ee3bfe4..3fd6677c210 100644
--- a/crates/matrix-sdk/tests/integration/room/common.rs
+++ b/crates/matrix-sdk/tests/integration/room/common.rs
@@ -833,7 +833,7 @@ async fn test_is_direct() {
     // The room is direct now.
     let direct_targets = room.direct_targets();
     assert_eq!(direct_targets.len(), 1);
-    assert!(direct_targets.contains(*BOB));
+    assert!(direct_targets.contains(BOB.as_str()));
     assert!(room.is_direct().await.unwrap());
 
     // Unset the room as direct.
diff --git a/crates/matrix-sdk/tests/integration/room/joined.rs b/crates/matrix-sdk/tests/integration/room/joined.rs
index e8f294bb0d0..679ee82d2e2 100644
--- a/crates/matrix-sdk/tests/integration/room/joined.rs
+++ b/crates/matrix-sdk/tests/integration/room/joined.rs
@@ -21,13 +21,11 @@ use ruma::{
     api::client::{membership::Invite3pidInit, receipt::create_receipt::v3::ReceiptType},
     assign, event_id,
     events::{
-        receipt::ReceiptThread,
-        room::message::{RoomMessageEventContent, RoomMessageEventContentWithoutRelation},
-        TimelineEventType,
+        receipt::ReceiptThread, room::message::{RoomMessageEventContent, RoomMessageEventContentWithoutRelation}, TimelineEventType
     },
     int, mxc_uri, owned_event_id, room_id, thirdparty, user_id, OwnedUserId, TransactionId,
 };
-use serde_json::{json, Value};
+use serde_json::{from_value, json, Value};
 use wiremock::{
     matchers::{body_json, body_partial_json, header, method, path_regex},
     Mock, ResponseTemplate,
@@ -630,6 +628,37 @@ async fn test_reset_power_levels() {
     room.reset_power_levels().await.unwrap();
 }
 
+#[async_test]
+async fn test_is_direct_invite_by_3pid() {
+    let (client, server) = logged_in_client_with_server().await;
+
+    let mut sync_builder = SyncResponseBuilder::new();
+    sync_builder.add_joined_room(JoinedRoomBuilder::default());
+    let data = json!({
+        "content": {
+            "invited@localhost.com": [*DEFAULT_TEST_ROOM_ID],
+        },
+        "event_id": "$757957878228ekrDs:localhost",
+        "origin_server_ts": 17195787,
+        "sender": "@example:localhost",
+        "state_key": "",
+        "type": "m.direct",
+        "unsigned": {
+          "age": 139298
+        }
+    });
+    sync_builder.add_global_account_data_bulk(vec![from_value(data).unwrap()]);
+
+    mock_sync(&server, sync_builder.build_json_sync_response(), None).await;
+    mock_encryption_state(&server, false).await;
+
+    let sync_settings = SyncSettings::new().timeout(Duration::from_millis(3000));
+    let _response = client.sync_once(sync_settings).await.unwrap();
+
+    let room = client.get_room(&DEFAULT_TEST_ROOM_ID).unwrap();
+    assert!(room.is_direct().await.unwrap());
+}
+
 #[async_test]
 async fn test_call_notifications_ring_for_dms() {
     let (client, server) = logged_in_client_with_server().await;
diff --git a/crates/matrix-sdk/tests/integration/room/left.rs b/crates/matrix-sdk/tests/integration/room/left.rs
index f2de95649b5..367014326d0 100644
--- a/crates/matrix-sdk/tests/integration/room/left.rs
+++ b/crates/matrix-sdk/tests/integration/room/left.rs
@@ -70,7 +70,7 @@ async fn test_forget_direct_room() {
     let room = client.get_room(&DEFAULT_TEST_ROOM_ID).unwrap();
     assert_eq!(room.state(), RoomState::Left);
     assert!(room.is_direct().await.unwrap());
-    assert!(room.direct_targets().contains(invited_user_id));
+    assert!(room.direct_targets().contains(invited_user_id.as_str()));
 
     let direct_account_data = client
         .account()
@@ -80,7 +80,7 @@ async fn test_forget_direct_room() {
         .expect("no m.direct account data")
         .deserialize()
         .expect("failed to deserialize m.direct account data");
-    assert_matches!(direct_account_data.get(invited_user_id), Some(invited_user_dms));
+    assert_matches!(direct_account_data.get(invited_user_id.as_str()), Some(invited_user_dms));
     assert_eq!(invited_user_dms, &[DEFAULT_TEST_ROOM_ID.to_owned()]);
 
     Mock::given(method("POST"))