diff --git a/src/components/viewmodels/settings/encryption/KeyStoragePanelViewModel.ts b/src/components/viewmodels/settings/encryption/KeyStoragePanelViewModel.ts
index ee301bd27f..60ad21236f 100644
--- a/src/components/viewmodels/settings/encryption/KeyStoragePanelViewModel.ts
+++ b/src/components/viewmodels/settings/encryption/KeyStoragePanelViewModel.ts
@@ -79,12 +79,30 @@ export function useKeyStoragePanelViewModel(): KeyStoragePanelState {
                     return;
                 }
                 if (enable) {
-                    // If there is no existing key backup on the server, create one.
-                    // `resetKeyBackup` will delete any existing backup, so we only do this if there is no existing backup.
-                    const currentKeyBackup = await crypto.checkKeyBackupAndEnable();
+                    const childLogger = logger.getChild("[enable key storage]");
+                    childLogger.info("User requested enabling key storage");
+                    let currentKeyBackup = await crypto.checkKeyBackupAndEnable();
+                    if (currentKeyBackup) {
+                        logger.info(
+                            `Existing key backup is present. version: ${currentKeyBackup.backupInfo.version}`,
+                            currentKeyBackup.trustInfo,
+                        );
+                        // Check if the current key backup can be used. Either of these properties causes the key backup to be used.
+                        if (currentKeyBackup.trustInfo.trusted || currentKeyBackup.trustInfo.matchesDecryptionKey) {
+                            logger.info("Existing key backup can be used");
+                        } else {
+                            logger.warn("Existing key backup cannot be used, creating new backup");
+                            // There aren't any *usable* backups, so we need to create a new one.
+                            currentKeyBackup = null;
+                        }
+                    } else {
+                        logger.info("No existing key backup versions are present, creating new backup");
+                    }
+
+                    // If there is no usable key backup on the server, create one.
+                    // `resetKeyBackup` will delete any existing backup, so we only do this if there is no usable backup.
                     if (currentKeyBackup === null) {
                         await crypto.resetKeyBackup();
-
                         // resetKeyBackup fires this off in the background without waiting, so we need to do it
                         // explicitly and wait for it, otherwise it won't be enabled yet when we check again.
                         await crypto.checkKeyBackupAndEnable();
@@ -93,6 +111,7 @@ export function useKeyStoragePanelViewModel(): KeyStoragePanelState {
                     // Set the flag so that EX no longer thinks the user wants backup disabled
                     await matrixClient.setAccountData(BACKUP_DISABLED_ACCOUNT_DATA_KEY, { disabled: false });
                 } else {
+                    logger.info("User requested disabling key backup");
                     // This method will delete the key backup as well as server side recovery keys and other
                     // server-side crypto data.
                     await crypto.disableKeyStorage();
diff --git a/test/unit-tests/components/viewmodels/settings/encryption/KeyStoragePanelViewModel-test.ts b/test/unit-tests/components/viewmodels/settings/encryption/KeyStoragePanelViewModel-test.ts
index d0132c7317..fee28cf38f 100644
--- a/test/unit-tests/components/viewmodels/settings/encryption/KeyStoragePanelViewModel-test.ts
+++ b/test/unit-tests/components/viewmodels/settings/encryption/KeyStoragePanelViewModel-test.ts
@@ -10,7 +10,7 @@ import { act } from "react";
 import { mocked } from "jest-mock";
 
 import type { MatrixClient } from "matrix-js-sdk/src/matrix";
-import type { KeyBackupCheck, KeyBackupInfo } from "matrix-js-sdk/src/crypto-api";
+import type { BackupTrustInfo, KeyBackupCheck, KeyBackupInfo } from "matrix-js-sdk/src/crypto-api";
 import { useKeyStoragePanelViewModel } from "../../../../../../src/components/viewmodels/settings/encryption/KeyStoragePanelViewModel";
 import { createTestClient, withClientContextRenderOptions } from "../../../../../test-utils";
 
@@ -49,8 +49,21 @@ describe("KeyStoragePanelViewModel", () => {
         expect(mocked(matrixClient.getCrypto()!.resetKeyBackup)).toHaveBeenCalled();
     });
 
-    it("should not call resetKeyBackup if there is a backup currently", async () => {
-        mocked(matrixClient.getCrypto()!.checkKeyBackupAndEnable).mockResolvedValue({} as KeyBackupCheck);
+    it.each<BackupTrustInfo>([
+        { trusted: true, matchesDecryptionKey: false },
+        { trusted: false, matchesDecryptionKey: true },
+        { trusted: true, matchesDecryptionKey: true },
+    ])("should not call resetKeyBackup if there is a backup currently and it is trusted", async (trustInfo) => {
+        mocked(matrixClient.getCrypto()!.checkKeyBackupAndEnable).mockResolvedValue({
+            backupInfo: {
+                version: "1",
+                algorithm: "foobar",
+                auth_data: {
+                    public_key: "foobar",
+                },
+            },
+            trustInfo,
+        });
 
         const { result } = renderHook(
             () => useKeyStoragePanelViewModel(),
@@ -61,6 +74,30 @@ describe("KeyStoragePanelViewModel", () => {
         expect(mocked(matrixClient.getCrypto()!.resetKeyBackup)).not.toHaveBeenCalled();
     });
 
+    it("should call resetKeyBackup if there is a backup currently but it is not trusted", async () => {
+        mocked(matrixClient.getCrypto()!.checkKeyBackupAndEnable).mockResolvedValue({
+            backupInfo: {
+                version: "1",
+                algorithm: "foobar",
+                auth_data: {
+                    public_key: "foobar",
+                },
+            },
+            trustInfo: {
+                trusted: false,
+                matchesDecryptionKey: false,
+            },
+        });
+
+        const { result } = renderHook(
+            () => useKeyStoragePanelViewModel(),
+            withClientContextRenderOptions(matrixClient),
+        );
+
+        await result.current.setEnabled(true);
+        expect(mocked(matrixClient.getCrypto()!.resetKeyBackup)).toHaveBeenCalled();
+    });
+
     it("should set account data flag when enabling", async () => {
         mocked(matrixClient.getCrypto()!.checkKeyBackupAndEnable).mockResolvedValue(null);