diff --git a/playwright/e2e/crypto/dehydration.spec.ts b/playwright/e2e/crypto/dehydration.spec.ts
index ca6485d88e..472ee39493 100644
--- a/playwright/e2e/crypto/dehydration.spec.ts
+++ b/playwright/e2e/crypto/dehydration.spec.ts
@@ -10,6 +10,7 @@ import { test, expect } from "../../element-web-test";
 import { isDendrite } from "../../plugins/homeserver/dendrite";
 import { completeCreateSecretStorageDialog, createBot, logIntoElement } from "./utils.ts";
 import { type Client } from "../../pages/client.ts";
+import { type ElementAppPage } from "../../pages/ElementAppPage.ts";
 
 const NAME = "Alice";
 
@@ -49,13 +50,7 @@ test.describe("Dehydration", () => {
 
         await completeCreateSecretStorageDialog(page);
 
-        // Open the settings again
-        await app.settings.openUserSettings("Security & Privacy");
-
-        // The Security tab should indicate that there is a dehydrated device present
-        await expect(securityTab.getByText("Offline device enabled")).toBeVisible();
-
-        await app.settings.closeDialog();
+        await expectDehydratedDeviceEnabled(app);
 
         // the dehydrated device gets created with the name "Dehydrated
         // device".  We want to make sure that it is not visible as a normal
@@ -64,6 +59,33 @@ test.describe("Dehydration", () => {
         await expect(sessionsTab.getByText("Dehydrated device")).not.toBeVisible();
     });
 
+    test("'Set up recovery' creates dehydrated device", async ({ app, credentials, page }) => {
+        await logIntoElement(page, credentials);
+
+        const settingsDialogLocator = await app.settings.openUserSettings("Encryption");
+        await settingsDialogLocator.getByRole("button", { name: "Set up recovery" }).click();
+
+        // First it displays an informative panel about the recovery key
+        await expect(settingsDialogLocator.getByRole("heading", { name: "Set up recovery" })).toBeVisible();
+        await settingsDialogLocator.getByRole("button", { name: "Continue" }).click();
+
+        // Next, it displays the new recovery key. We click on the copy button.
+        await expect(settingsDialogLocator.getByText("Save your recovery key somewhere safe")).toBeVisible();
+        await settingsDialogLocator.getByRole("button", { name: "Copy" }).click();
+        const recoveryKey = await app.getClipboard();
+        await settingsDialogLocator.getByRole("button", { name: "Continue" }).click();
+
+        await expect(
+            settingsDialogLocator.getByText("Enter your recovery key to confirm", { exact: true }),
+        ).toBeVisible();
+        await settingsDialogLocator.getByRole("textbox").fill(recoveryKey);
+        await settingsDialogLocator.getByRole("button", { name: "Finish set up" }).click();
+
+        await app.settings.closeDialog();
+
+        await expectDehydratedDeviceEnabled(app);
+    });
+
     test("Reset recovery key during login re-creates dehydrated device", async ({
         page,
         homeserver,
@@ -109,3 +131,16 @@ async function getDehydratedDeviceIds(client: Client): Promise<string[]> {
         );
     });
 }
+
+/** Wait for our user to have a dehydrated device */
+async function expectDehydratedDeviceEnabled(app: ElementAppPage): Promise<void> {
+    // It might be nice to do this via the UI, but currently this info is not exposed via the UI.
+    //
+    // Note we might have to wait for the device list to be refreshed, so we wrap in `expect.poll`.
+    await expect
+        .poll(async () => {
+            const dehydratedDeviceIds = await getDehydratedDeviceIds(app.client);
+            return dehydratedDeviceIds.length;
+        })
+        .toEqual(1);
+}
diff --git a/src/components/views/settings/encryption/ChangeRecoveryKey.tsx b/src/components/views/settings/encryption/ChangeRecoveryKey.tsx
index 979b4bee04..b149b396e1 100644
--- a/src/components/views/settings/encryption/ChangeRecoveryKey.tsx
+++ b/src/components/views/settings/encryption/ChangeRecoveryKey.tsx
@@ -26,6 +26,7 @@ import { EncryptionCard } from "./EncryptionCard";
 import { useMatrixClientContext } from "../../../../contexts/MatrixClientContext";
 import { useAsyncMemo } from "../../../../hooks/useAsyncMemo";
 import { copyPlaintext } from "../../../../utils/strings";
+import { initialiseDehydrationIfEnabled } from "../../../../utils/device/dehydration.ts";
 import { withSecretStorageKeyCache } from "../../../../SecurityManager";
 
 /**
@@ -122,12 +123,13 @@ export function ChangeRecoveryKey({
                         try {
                             // We need to enable the cache to avoid to prompt the user to enter the new key
                             // when we will try to access the secret storage during the bootstrap
-                            await withSecretStorageKeyCache(() =>
-                                crypto.bootstrapSecretStorage({
+                            await withSecretStorageKeyCache(async () => {
+                                await crypto.bootstrapSecretStorage({
                                     setupNewSecretStorage: true,
                                     createSecretStorageKey: async () => recoveryKey,
-                                }),
-                            );
+                                });
+                                await initialiseDehydrationIfEnabled(matrixClient, { createNewKey: true });
+                            });
                             onFinish();
                         } catch (e) {
                             logger.error("Failed to bootstrap secret storage", e);