diff --git a/src/Unread.ts b/src/Unread.ts
index 3a177fedae..ee74813d20 100644
--- a/src/Unread.ts
+++ b/src/Unread.ts
@@ -74,6 +74,9 @@ export function doesRoomHaveUnreadMessages(room: Room, includeThreads: boolean):
 }
 
 function doesTimelineHaveUnreadMessages(room: Room, timeline: Array<MatrixEvent>): boolean {
+    // The room is a space, let's ignore it
+    if (room.isSpaceRoom()) return false;
+
     const myUserId = room.client.getSafeUserId();
     const latestImportantEventId = findLatestImportantEvent(room.client, timeline)?.getId();
     if (latestImportantEventId) {
diff --git a/src/components/views/settings/Notifications.tsx b/src/components/views/settings/Notifications.tsx
index a800e1db86..ec47cff714 100644
--- a/src/components/views/settings/Notifications.tsx
+++ b/src/components/views/settings/Notifications.tsx
@@ -57,6 +57,7 @@ import {
 import { Caption } from "../typography/Caption";
 import { SettingsSubsectionHeading } from "./shared/SettingsSubsectionHeading";
 import SettingsSubsection from "./shared/SettingsSubsection";
+import { doesRoomHaveUnreadMessages } from "../../../Unread";
 
 // TODO: this "view" component still has far too much application logic in it,
 // which should be factored out to other files.
@@ -739,7 +740,7 @@ export default class Notifications extends React.PureComponent<IProps, IState> {
             category === RuleClass.VectorOther &&
             MatrixClientPeg.safeGet()
                 .getRooms()
-                .some((r) => r.getUnreadNotificationCount() > 0)
+                .some((r) => doesRoomHaveUnreadMessages(r, true))
         ) {
             clearNotifsButton = (
                 <AccessibleButton
diff --git a/src/stores/ReadyWatchingStore.ts b/src/stores/ReadyWatchingStore.ts
index c615dcc7d6..19dee7223f 100644
--- a/src/stores/ReadyWatchingStore.ts
+++ b/src/stores/ReadyWatchingStore.ts
@@ -34,7 +34,8 @@ export abstract class ReadyWatchingStore extends EventEmitter implements IDestro
     public async start(): Promise<void> {
         this.dispatcherRef = this.dispatcher.register(this.onAction);
 
-        const matrixClient = MatrixClientPeg.get();
+        // MatrixClientPeg can be undefined in tests because of circular dependencies with other stores
+        const matrixClient = MatrixClientPeg?.get();
         if (matrixClient) {
             this.matrixClient = matrixClient;
             await this.onReady();
diff --git a/src/utils/notifications.ts b/src/utils/notifications.ts
index 7f0e98f142..dbea233f35 100644
--- a/src/utils/notifications.ts
+++ b/src/utils/notifications.ts
@@ -26,6 +26,7 @@ import { IndicatorIcon } from "@vector-im/compound-web";
 
 import SettingsStore from "../settings/SettingsStore";
 import { NotificationLevel } from "../stores/notifications/NotificationLevel";
+import { doesRoomHaveUnreadMessages } from "../Unread";
 
 export const deviceNotificationSettingsKeys = [
     "notificationsEnabled",
@@ -105,7 +106,7 @@ export async function clearRoomNotification(room: Room, client: MatrixClient): P
  */
 export function clearAllNotifications(client: MatrixClient): Promise<Array<{} | undefined>> {
     const receiptPromises = client.getRooms().reduce((promises: Array<Promise<{} | undefined>>, room: Room) => {
-        if (room.getUnreadNotificationCount() > 0) {
+        if (doesRoomHaveUnreadMessages(room, true)) {
             const promise = clearRoomNotification(room, client);
             promises.push(promise);
         }
diff --git a/test/Unread-test.ts b/test/Unread-test.ts
index 843490b425..bd65a783e8 100644
--- a/test/Unread-test.ts
+++ b/test/Unread-test.ts
@@ -421,6 +421,11 @@ describe("Unread", () => {
                 },
             );
         });
+
+        it("returns false for space", () => {
+            jest.spyOn(room, "isSpaceRoom").mockReturnValue(true);
+            expect(doesRoomHaveUnreadMessages(room, false)).toBe(false);
+        });
     });
 
     describe("doesRoomOrThreadHaveUnreadMessages()", () => {
diff --git a/test/components/views/settings/Notifications-test.tsx b/test/components/views/settings/Notifications-test.tsx
index e8fbb74d57..b12cf9239e 100644
--- a/test/components/views/settings/Notifications-test.tsx
+++ b/test/components/views/settings/Notifications-test.tsx
@@ -21,7 +21,6 @@ import {
     LOCAL_NOTIFICATION_SETTINGS_PREFIX,
     MatrixEvent,
     Room,
-    NotificationCountType,
     PushRuleActionName,
     TweakName,
     ConditionKind,
@@ -31,7 +30,7 @@ import {
     ThreepidMedium,
 } from "matrix-js-sdk/src/matrix";
 import { randomString } from "matrix-js-sdk/src/randomstring";
-import { act, fireEvent, getByTestId, render, screen, waitFor, within } from "@testing-library/react";
+import { act, fireEvent, getByTestId, render, screen, within } from "@testing-library/react";
 import { mocked } from "jest-mock";
 import userEvent from "@testing-library/user-event";
 
@@ -900,8 +899,7 @@ describe("<Notifications />", () => {
                 user: "@alice:example.org",
                 ts: 1,
             });
-            room.addLiveEvents([message]);
-            room.setUnreadNotificationCount(NotificationCountType.Total, 1);
+            await room.addLiveEvents([message]);
 
             const { container } = await getComponentAndWait();
             const clearNotificationEl = getByTestId(container, "clear-notifications");
@@ -910,10 +908,6 @@ describe("<Notifications />", () => {
 
             expect(clearNotificationEl.className).toContain("mx_AccessibleButton_disabled");
             expect(mockClient.sendReadReceipt).toHaveBeenCalled();
-
-            await waitFor(() => {
-                expect(clearNotificationEl).not.toBeInTheDocument();
-            });
         });
     });
 });