diff --git a/crates/matrix-sdk/src/room/timeline/mod.rs b/crates/matrix-sdk/src/room/timeline/mod.rs
index 89d263515..a3d417f13 100644
--- a/crates/matrix-sdk/src/room/timeline/mod.rs
+++ b/crates/matrix-sdk/src/room/timeline/mod.rs
@@ -54,7 +54,10 @@ pub use self::{
     },
     virtual_item::VirtualTimelineItem,
 };
-use self::{inner::TimelineInner, to_device::handle_room_key_event};
+use self::{
+    inner::TimelineInner,
+    to_device::{handle_forwarded_room_key_event, handle_room_key_event},
+};
 
 /// A high-level view into a regular¹ room's contents.
 ///
@@ -71,6 +74,7 @@ pub struct Timeline {
     _fully_read_handler_guard: Option<EventHandlerDropGuard>,
     #[cfg(feature = "e2e-encryption")]
     _room_key_handler_guard: EventHandlerDropGuard,
+    _forwarded_room_key_handler_guard: EventHandlerDropGuard,
 }
 
 /// Non-signalling parts of `TimelineInner`.
@@ -118,6 +122,14 @@ impl Timeline {
         #[cfg(feature = "e2e-encryption")]
         let _room_key_handler_guard = room.client.event_handler_drop_guard(room_key_handle);
 
+        #[cfg(feature = "e2e-encryption")]
+        let forwarded_room_key_handle = room.client.add_event_handler(
+            handle_forwarded_room_key_event(inner.clone(), room.room_id().to_owned()),
+        );
+        #[cfg(feature = "e2e-encryption")]
+        let _forwarded_room_key_handler_guard =
+            room.client.event_handler_drop_guard(forwarded_room_key_handle);
+
         Timeline {
             inner,
             room: room.clone(),
@@ -127,6 +139,8 @@ impl Timeline {
             _fully_read_handler_guard: None,
             #[cfg(feature = "e2e-encryption")]
             _room_key_handler_guard,
+            #[cfg(feature = "e2e-encryption")]
+            _forwarded_room_key_handler_guard,
         }
     }
 
diff --git a/crates/matrix-sdk/src/room/timeline/to_device.rs b/crates/matrix-sdk/src/room/timeline/to_device.rs
index fbcf3858d..16db67576 100644
--- a/crates/matrix-sdk/src/room/timeline/to_device.rs
+++ b/crates/matrix-sdk/src/room/timeline/to_device.rs
@@ -1,6 +1,9 @@
 use std::{iter, sync::Arc};
 
-use ruma::{events::room_key::ToDeviceRoomKeyEvent, OwnedRoomId};
+use ruma::{
+    events::{forwarded_room_key::ToDeviceForwardedRoomKeyEvent, room_key::ToDeviceRoomKeyEvent},
+    OwnedRoomId,
+};
 use tracing::{debug_span, error, trace, Instrument};
 
 use super::inner::TimelineInner;
@@ -14,36 +17,61 @@ pub(super) fn handle_room_key_event(
         let inner = inner.clone();
         let room_id = room_id.clone();
         async move {
-            if event.content.room_id != room_id {
-                let event_room_id = &event.content.room_id;
-                let session_id = &event.content.session_id;
-                trace!(
-                    %event_room_id, timeline_room_id = %room_id, %session_id,
-                    "Received to-device room key event for a different room, ignoring"
-                );
-                return;
-            }
-
-            let Some(olm_machine) = client.olm_machine() else {
-                error!("The olm machine isn't yet available");
-                return;
-            };
-
+            let event_room_id = event.content.room_id;
             let session_id = event.content.session_id;
-            let Some(own_user_id) = client.user_id() else {
-                error!("The user's own ID isn't available");
-                return;
-            };
-
-            inner
-                .retry_event_decryption(
-                    &room_id,
-                    olm_machine,
-                    iter::once(session_id.as_str()).collect(),
-                    own_user_id,
-                )
-                .await;
+            retry_decryption(client, inner, room_id, event_room_id, session_id).await;
         }
         .instrument(debug_span!("handle_room_key_event"))
     }
 }
+
+pub(super) fn handle_forwarded_room_key_event(
+    inner: Arc<TimelineInner>,
+    room_id: OwnedRoomId,
+) -> impl EventHandler<ToDeviceForwardedRoomKeyEvent, (Client,)> {
+    move |event: ToDeviceForwardedRoomKeyEvent, client: Client| {
+        let inner = inner.clone();
+        let room_id = room_id.clone();
+        async move {
+            let event_room_id = event.content.room_id;
+            let session_id = event.content.session_id;
+            retry_decryption(client, inner, room_id, event_room_id, session_id).await;
+        }
+        .instrument(debug_span!("handle_forwarded_room_key_event"))
+    }
+}
+
+async fn retry_decryption(
+    client: Client,
+    inner: Arc<TimelineInner>,
+    room_id: OwnedRoomId,
+    event_room_id: OwnedRoomId,
+    session_id: String,
+) {
+    if event_room_id != room_id {
+        trace!(
+            %event_room_id, timeline_room_id = %room_id, %session_id,
+            "Received to-device room key event for a different room, ignoring"
+        );
+        return;
+    }
+
+    let Some(olm_machine) = client.olm_machine() else {
+        error!("The olm machine isn't yet available");
+        return;
+    };
+
+    let Some(own_user_id) = client.user_id() else {
+        error!("The user's own ID isn't available");
+        return;
+    };
+
+    inner
+        .retry_event_decryption(
+            &room_id,
+            olm_machine,
+            iter::once(session_id.as_str()).collect(),
+            own_user_id,
+        )
+        .await;
+}