diff --git a/src/script/conversation/ConversationVerificationStateHandler/MLS/MLSStateHandler.ts b/src/script/conversation/ConversationVerificationStateHandler/MLS/MLSStateHandler.ts
index be2f6b6ebe2..2bc3cf62a83 100644
--- a/src/script/conversation/ConversationVerificationStateHandler/MLS/MLSStateHandler.ts
+++ b/src/script/conversation/ConversationVerificationStateHandler/MLS/MLSStateHandler.ts
@@ -27,18 +27,25 @@ import {
   getAllGroupUsersIdentities,
   getConversationVerificationState,
   MLSStatuses,
+  WireIdentity,
 } from 'src/script/E2EIdentity';
 import {Conversation} from 'src/script/entity/Conversation';
+import {User} from 'src/script/entity/User';
 import {E2EIVerificationMessageType} from 'src/script/message/E2EIVerificationMessageType';
 import {Core} from 'src/script/service/CoreSingleton';
 import {Logger, getLogger} from 'Util/Logger';
 import {waitFor} from 'Util/waitFor';
 
-import {isMLSConversation, MLSConversation} from '../../ConversationSelectors';
+import {isMLSConversation, MLSCapableConversation, MLSConversation} from '../../ConversationSelectors';
 import {ConversationState} from '../../ConversationState';
 import {ConversationVerificationState} from '../../ConversationVerificationState';
 import {getConversationByGroupId, OnConversationE2EIVerificationStateChange} from '../shared';
 
+enum UserVerificationState {
+  ALL_VALID = 0,
+  SOME_INVALID = 1,
+}
+
 class MLSConversationVerificationStateHandler {
   private readonly logger: Logger;
 
@@ -64,16 +71,18 @@ class MLSConversationVerificationStateHandler {
    * Changes mls verification state to "degraded"
    * @param conversation
    */
-  private async degradeConversation(conversation: MLSConversation) {
-    const userIdentities = await getAllGroupUsersIdentities(conversation.groupId);
+  private async degradeConversation(
+    conversation: MLSConversation,
+    userIdentities: Map<string, WireIdentity[]> | undefined,
+  ) {
     if (!userIdentities) {
       return;
     }
 
     const state = ConversationVerificationState.DEGRADED;
     conversation.mlsVerificationState(state);
-
     const degradedUsers: QualifiedId[] = [];
+
     for (const [, identities] of userIdentities.entries()) {
       if (identities.length > 0 && identities.some(identity => identity.status !== MLSStatuses.VALID)) {
         degradedUsers.push(identities[0].qualifiedUserId);
@@ -115,6 +124,61 @@ class MLSConversationVerificationStateHandler {
     await this.checkAllConversationsVerificationState();
   };
 
+  private checkUserHandle = (identity: WireIdentity, user: User): boolean => {
+    // WireIdentity handle format is "{scheme}%40{username}@{domain}"
+    // Example: wireapp://%40hans.wurst@elna.wire.link
+    const {handle: identityHandle} = identity;
+    // We only want to check the username part of the handle
+    const {username, domain} = user;
+    return identityHandle.includes(`${username()}@${domain}`);
+  };
+
+  private checkAllUserCredentialsInConversation = async (
+    conversation: MLSCapableConversation,
+  ): Promise<{
+    userVerificationState: UserVerificationState;
+    userIdentities: Map<string, WireIdentity[]> | undefined;
+  }> => {
+    const userIdentities = await getAllGroupUsersIdentities(conversation.groupId);
+    const processedUserIds: Set<string> = new Set();
+    let userVerificationState = UserVerificationState.ALL_VALID;
+
+    if (userIdentities) {
+      for (const [userId, identities] of userIdentities.entries()) {
+        if (processedUserIds.has(userId)) {
+          continue;
+        }
+        processedUserIds.add(userId);
+
+        /**
+         * We need to wait for the user entity to be available
+         * There is a race condition when adding a new user to a conversation, the host will receive the epoch update before the user entity is available
+         */
+        const user = await waitFor(() => conversation.allUserEntities().find(user => user.qualifiedId.id === userId));
+        const identity = identities.at(0);
+
+        if (!identity || !user) {
+          this.logger.warn(`Could not find user or identity for userId: ${userId}`);
+          userVerificationState = UserVerificationState.SOME_INVALID;
+          break;
+        }
+
+        const matchingName = identity.displayName === user.name();
+        const matchingHandle = this.checkUserHandle(identity, user);
+        if (!matchingHandle || !matchingName) {
+          this.logger.warn(`User identity and user entity do not match for userId: ${userId}`);
+          userVerificationState = UserVerificationState.SOME_INVALID;
+          break;
+        }
+      }
+    }
+
+    return {
+      userVerificationState,
+      userIdentities,
+    };
+  };
+
   /**
    * This function checks all conversations if they are verified or degraded and updates them accordingly
    */
@@ -122,7 +186,6 @@ class MLSConversationVerificationStateHandler {
     const conversations = this.conversationState.conversations();
     await Promise.all(conversations.map(conversation => this.checkConversationVerificationState(conversation)));
   };
-
   private onEpochChanged = async ({groupId}: {groupId: string}): Promise<void> => {
     // There could be a race condition where we would receive an epoch update for a conversation that is not yet known by the webapp.
     // We just wait for it to be available and then check the verification state
@@ -150,14 +213,18 @@ class MLSConversationVerificationStateHandler {
     }
 
     const verificationState = await getConversationVerificationState(conversation.groupId);
+    const {userIdentities, userVerificationState} = await this.checkAllUserCredentialsInConversation(conversation);
+
+    const isConversationStateAndAllUsersVerified =
+      verificationState === E2eiConversationState.Verified && userVerificationState === UserVerificationState.ALL_VALID;
 
     if (
-      verificationState === E2eiConversationState.NotVerified &&
+      !isConversationStateAndAllUsersVerified &&
       conversation.mlsVerificationState() === ConversationVerificationState.VERIFIED
     ) {
-      return this.degradeConversation(conversation);
+      return this.degradeConversation(conversation, userIdentities);
     } else if (
-      verificationState === E2eiConversationState.Verified &&
+      isConversationStateAndAllUsersVerified &&
       conversation.mlsVerificationState() !== ConversationVerificationState.VERIFIED
     ) {
       return this.verifyConversation(conversation);