diff --git a/src/components/views/spaces/SpacePanel.tsx b/src/components/views/spaces/SpacePanel.tsx
index bacf1bd929..36ab423885 100644
--- a/src/components/views/spaces/SpacePanel.tsx
+++ b/src/components/views/spaces/SpacePanel.tsx
@@ -25,7 +25,12 @@ import SpaceCreateMenu from "./SpaceCreateMenu";
 import {SpaceItem} from "./SpaceTreeLevel";
 import AccessibleTooltipButton from "../elements/AccessibleTooltipButton";
 import {useEventEmitter} from "../../../hooks/useEventEmitter";
-import SpaceStore, {HOME_SPACE, UPDATE_SELECTED_SPACE, UPDATE_TOP_LEVEL_SPACES} from "../../../stores/SpaceStore";
+import SpaceStore, {
+    HOME_SPACE,
+    UPDATE_INVITED_SPACES,
+    UPDATE_SELECTED_SPACE,
+    UPDATE_TOP_LEVEL_SPACES,
+} from "../../../stores/SpaceStore";
 import AutoHideScrollbar from "../../structures/AutoHideScrollbar";
 import {SpaceNotificationState} from "../../../stores/notifications/SpaceNotificationState";
 import NotificationBadge from "../rooms/NotificationBadge";
@@ -105,19 +110,21 @@ const SpaceButton: React.FC<IButtonProps> = ({
     </li>;
 }
 
-const useSpaces = (): [Room[], Room | null] => {
+const useSpaces = (): [Room[], Room[], Room | null] => {
+    const [invites, setInvites] = useState<Room[]>(SpaceStore.instance.invitedSpaces);
+    useEventEmitter(SpaceStore.instance, UPDATE_INVITED_SPACES, setInvites);
     const [spaces, setSpaces] = useState<Room[]>(SpaceStore.instance.spacePanelSpaces);
     useEventEmitter(SpaceStore.instance, UPDATE_TOP_LEVEL_SPACES, setSpaces);
     const [activeSpace, setActiveSpace] = useState<Room>(SpaceStore.instance.activeSpace);
     useEventEmitter(SpaceStore.instance, UPDATE_SELECTED_SPACE, setActiveSpace);
-    return [spaces, activeSpace];
+    return [invites, spaces, activeSpace];
 };
 
 const SpacePanel = () => {
     // We don't need the handle as we position the menu in a constant location
     // eslint-disable-next-line @typescript-eslint/no-unused-vars
     const [menuDisplayed, handle, openMenu, closeMenu] = useContextMenu<void>();
-    const [spaces, activeSpace] = useSpaces();
+    const [invites, spaces, activeSpace] = useSpaces();
     const [isPanelCollapsed, setPanelCollapsed] = useState(true);
 
     const newClasses = classNames("mx_SpaceButton_new", {
@@ -209,6 +216,13 @@ const SpacePanel = () => {
                             notificationState={SpaceStore.instance.getNotificationState(HOME_SPACE)}
                             isNarrow={isPanelCollapsed}
                         />
+                        { invites.map(s => <SpaceItem
+                            key={s.roomId}
+                            space={s}
+                            activeSpaces={activeSpaces}
+                            isPanelCollapsed={isPanelCollapsed}
+                            onExpand={() => setPanelCollapsed(false)}
+                        />) }
                         { spaces.map(s => <SpaceItem
                             key={s.roomId}
                             space={s}
diff --git a/src/components/views/spaces/SpaceTreeLevel.tsx b/src/components/views/spaces/SpaceTreeLevel.tsx
index ca9e26cabe..71ef4c562c 100644
--- a/src/components/views/spaces/SpaceTreeLevel.tsx
+++ b/src/components/views/spaces/SpaceTreeLevel.tsx
@@ -45,6 +45,8 @@ import RoomViewStore from "../../../stores/RoomViewStore";
 import {SetRightPanelPhasePayload} from "../../../dispatcher/payloads/SetRightPanelPhasePayload";
 import {RightPanelPhases} from "../../../stores/RightPanelStorePhases";
 import {EventType} from "matrix-js-sdk/src/@types/event";
+import {StaticNotificationState} from "../../../stores/notifications/StaticNotificationState";
+import {NotificationColor} from "../../../stores/notifications/NotificationColor";
 
 interface IItemProps {
     space?: Room;
@@ -300,7 +302,9 @@ export class SpaceItem extends React.PureComponent<IItemProps, IItemState> {
             mx_SpaceButton_hasMenuOpen: !!this.state.contextMenuPosition,
             mx_SpaceButton_narrow: isNarrow,
         });
-        const notificationState = SpaceStore.instance.getNotificationState(space.roomId);
+        const notificationState = space.getMyMembership() === "invite"
+            ? StaticNotificationState.forSymbol("!", NotificationColor.Red)
+            : SpaceStore.instance.getNotificationState(space.roomId);
 
         let childItems;
         if (childSpaces && !collapsed) {
diff --git a/src/stores/SpaceStore.tsx b/src/stores/SpaceStore.tsx
index 80722ad3ac..c28e24a460 100644
--- a/src/stores/SpaceStore.tsx
+++ b/src/stores/SpaceStore.tsx
@@ -46,6 +46,7 @@ export const HOME_SPACE = Symbol("home-space");
 export const SUGGESTED_ROOMS = Symbol("suggested-rooms");
 
 export const UPDATE_TOP_LEVEL_SPACES = Symbol("top-level-spaces");
+export const UPDATE_INVITED_SPACES = Symbol("invited-spaces");
 export const UPDATE_SELECTED_SPACE = Symbol("selected-space");
 // Space Room ID/HOME_SPACE will be emitted when a Space's children change
 
@@ -93,6 +94,11 @@ export class SpaceStoreClass extends AsyncStoreWithClient<IState> {
     // The space currently selected in the Space Panel - if null then `Home` is selected
     private _activeSpace?: Room = null;
     private _suggestedRooms: ISpaceSummaryRoom[] = [];
+    private _invitedSpaces = new Set<Room>();
+
+    public get invitedSpaces(): Room[] {
+        return Array.from(this._invitedSpaces);
+    }
 
     public get spacePanelSpaces(): Room[] {
         return this.rootSpaces;
@@ -214,25 +220,27 @@ export class SpaceStoreClass extends AsyncStoreWithClient<IState> {
         return sortBy(parents, r => r.roomId)?.[0] || null;
     }
 
-    public getSpaces = () => {
-        return this.matrixClient.getRooms().filter(r => r.isSpaceRoom() && r.getMyMembership() === "join");
-    };
-
     public getSpaceFilteredRoomIds = (space: Room | null): Set<string> => {
         return this.spaceFilteredRooms.get(space?.roomId || HOME_SPACE) || new Set();
     };
 
     private rebuild = throttle(() => {
-        // get all most-upgraded rooms & spaces except spaces which have been left (historical)
-        const visibleRooms = this.matrixClient.getVisibleRooms().filter(r => {
-            return !r.isSpaceRoom() || r.getMyMembership() === "join";
-        });
+        const [visibleSpaces, visibleRooms] = partitionSpacesAndRooms(this.matrixClient.getVisibleRooms());
+        const [joinedSpaces, invitedSpaces] = visibleSpaces.reduce((arr, s) => {
+            if (s.getMyMembership() === "join") {
+                arr[0].push(s);
+            } else if (s.getMyMembership() === "invite") {
+                arr[1].push(s);
+            }
+            return arr;
+        }, [[], []]);
 
-        const unseenChildren = new Set<Room>(visibleRooms);
+        // exclude invited spaces from unseenChildren as they will be forcibly shown at the top level of the treeview
+        const unseenChildren = new Set<Room>([...visibleRooms, ...joinedSpaces]);
         const backrefs = new EnhancedMap<string, Set<string>>();
 
         // Sort spaces by room ID to force the cycle breaking to be deterministic
-        const spaces = sortBy(visibleRooms.filter(r => r.isSpaceRoom()), space => space.roomId);
+        const spaces = sortBy(joinedSpaces, space => space.roomId);
 
         // TODO handle cleaning up links when a Space is removed
         spaces.forEach(space => {
@@ -296,6 +304,10 @@ export class SpaceStoreClass extends AsyncStoreWithClient<IState> {
 
         this.onRoomsUpdate(); // TODO only do this if a change has happened
         this.emit(UPDATE_TOP_LEVEL_SPACES, this.spacePanelSpaces);
+
+        // build initial state of invited spaces as we would have missed the emitted events about the room at launch
+        this._invitedSpaces = new Set(invitedSpaces);
+        this.emit(UPDATE_INVITED_SPACES, this.invitedSpaces);
     }, 100, {trailing: true, leading: true});
 
     onSpaceUpdate = () => {
@@ -303,6 +315,7 @@ export class SpaceStoreClass extends AsyncStoreWithClient<IState> {
     }
 
     private showInHomeSpace = (room: Room) => {
+        if (room.isSpaceRoom()) return false;
         return !this.parentMap.get(room.roomId)?.size // put all orphaned rooms in the Home Space
             || DMRoomMap.shared().getUserIdForRoomId(room.roomId) // put all DMs in the Home Space
             || RoomListStore.instance.getTagsForRoom(room).includes(DefaultTagID.Favourite) // show all favourites
@@ -333,8 +346,8 @@ export class SpaceStoreClass extends AsyncStoreWithClient<IState> {
         const oldFilteredRooms = this.spaceFilteredRooms;
         this.spaceFilteredRooms = new Map();
 
-        // put all invites (rooms & spaces) in the Home Space
-        const invites = this.matrixClient.getRooms().filter(r => r.getMyMembership() === "invite");
+        // put all room invites in the Home Space
+        const invites = visibleRooms.filter(r => !r.isSpaceRoom() && r.getMyMembership() === "invite");
         this.spaceFilteredRooms.set(HOME_SPACE, new Set<string>(invites.map(room => room.roomId)));
 
         visibleRooms.forEach(room => {
@@ -392,8 +405,14 @@ export class SpaceStoreClass extends AsyncStoreWithClient<IState> {
         });
     }, 100, {trailing: true, leading: true});
 
-    private onRoom = (room: Room) => {
-        if (room?.isSpaceRoom()) {
+    private onRoom = (room: Room, membership?: string, oldMembership?: string) => {
+        if ((membership || room.getMyMembership()) === "invite") {
+            this._invitedSpaces.add(room);
+            this.emit(UPDATE_INVITED_SPACES, this.invitedSpaces);
+        } else if (oldMembership === "invite") {
+            this._invitedSpaces.delete(room);
+            this.emit(UPDATE_INVITED_SPACES, this.invitedSpaces);
+        } else if (room?.isSpaceRoom()) {
             this.onSpaceUpdate();
             this.emit(room.roomId);
         } else {