diff --git a/app/src/main/java/com/x8bit/bitwarden/data/vault/manager/VaultLockManagerImpl.kt b/app/src/main/java/com/x8bit/bitwarden/data/vault/manager/VaultLockManagerImpl.kt
index 7bbac4202..b537f1f19 100644
--- a/app/src/main/java/com/x8bit/bitwarden/data/vault/manager/VaultLockManagerImpl.kt
+++ b/app/src/main/java/com/x8bit/bitwarden/data/vault/manager/VaultLockManagerImpl.kt
@@ -476,10 +476,15 @@ class VaultLockManagerImpl(
             }
 
             else -> {
-                // Only perform action for users losing "fully active" status in some way.
                 when (checkTimeoutReason) {
-                    // Don't perform delayed actions when first starting the app
-                    CheckTimeoutReason.APP_RESTARTED -> Unit
+                    // Always preform the timeout action on app restart to ensure the user is
+                    // in the correct state.
+                    CheckTimeoutReason.APP_RESTARTED -> {
+                        handleTimeoutAction(
+                            userId = userId,
+                            vaultTimeoutAction = vaultTimeoutAction,
+                        )
+                    }
 
                     // User no longer active or engaging with the app.
                     CheckTimeoutReason.APP_BACKGROUNDED,
diff --git a/app/src/main/java/com/x8bit/bitwarden/ui/platform/feature/rootnav/RootNavViewModel.kt b/app/src/main/java/com/x8bit/bitwarden/ui/platform/feature/rootnav/RootNavViewModel.kt
index 03ef3e9aa..300b2487e 100644
--- a/app/src/main/java/com/x8bit/bitwarden/ui/platform/feature/rootnav/RootNavViewModel.kt
+++ b/app/src/main/java/com/x8bit/bitwarden/ui/platform/feature/rootnav/RootNavViewModel.kt
@@ -63,8 +63,7 @@ class RootNavViewModel @Inject constructor(
         val specialCircumstance = action.specialCircumstance
         val updatedRootNavState = when {
             userState?.activeAccount?.trustedDevice?.isDeviceTrusted == false &&
-                !userState.activeAccount.isVaultUnlocked &&
-                !userState.activeAccount.hasManualUnlockMechanism -> RootNavState.TrustedDevice
+                !userState.activeAccount.isVaultUnlocked -> RootNavState.TrustedDevice
 
             userState?.activeAccount?.needsMasterPassword == true -> RootNavState.SetPassword
 
diff --git a/app/src/test/java/com/x8bit/bitwarden/data/vault/manager/VaultLockManagerTest.kt b/app/src/test/java/com/x8bit/bitwarden/data/vault/manager/VaultLockManagerTest.kt
index faf54539e..284e898de 100644
--- a/app/src/test/java/com/x8bit/bitwarden/data/vault/manager/VaultLockManagerTest.kt
+++ b/app/src/test/java/com/x8bit/bitwarden/data/vault/manager/VaultLockManagerTest.kt
@@ -275,7 +275,7 @@ class VaultLockManagerTest {
 
         fakeAppForegroundManager.appForegroundState = AppForegroundState.FOREGROUNDED
 
-        assertTrue(vaultLockManager.isVaultUnlocked(USER_ID))
+        assertFalse(vaultLockManager.isVaultUnlocked(USER_ID))
     }
 
     @Suppress("MaxLineLength")
@@ -330,6 +330,8 @@ class VaultLockManagerTest {
 
         // Start in a foregrounded state
         fakeAppForegroundManager.appForegroundState = AppForegroundState.BACKGROUNDED
+        // We want to skip the first time since that is different from subsequent foregrounds
+        fakeAppForegroundManager.appForegroundState = AppForegroundState.FOREGROUNDED
 
         // Will be used within each loop to reset the test to a suitable initial state.
         fun resetTest(vaultTimeout: VaultTimeout) {
diff --git a/app/src/test/java/com/x8bit/bitwarden/ui/platform/feature/rootnav/RootNavViewModelTest.kt b/app/src/test/java/com/x8bit/bitwarden/ui/platform/feature/rootnav/RootNavViewModelTest.kt
index a06ccb5e1..0f9746d42 100644
--- a/app/src/test/java/com/x8bit/bitwarden/ui/platform/feature/rootnav/RootNavViewModelTest.kt
+++ b/app/src/test/java/com/x8bit/bitwarden/ui/platform/feature/rootnav/RootNavViewModelTest.kt
@@ -170,8 +170,9 @@ class RootNavViewModelTest : BaseViewModelTest() {
         )
     }
 
+    @Suppress("MaxLineLength")
     @Test
-    fun `when the active user has an untrusted device the nav state should be TrustedDevice`() {
+    fun `when the active user has an untrusted device without password the nav state should be TrustedDevice`() {
         mutableUserStateFlow.tryEmit(
             UserState(
                 activeUserId = "activeUserId",
@@ -207,7 +208,7 @@ class RootNavViewModelTest : BaseViewModelTest() {
 
     @Suppress("MaxLineLength")
     @Test
-    fun `when the active user has an untrusted device with password the nav state should be VaultLocked`() {
+    fun `when the active user has an untrusted device with password the nav state should be TrustedDevice`() {
         mutableUserStateFlow.tryEmit(
             UserState(
                 activeUserId = "activeUserId",
@@ -238,7 +239,7 @@ class RootNavViewModelTest : BaseViewModelTest() {
             ),
         )
         val viewModel = createViewModel()
-        assertEquals(RootNavState.VaultLocked, viewModel.stateFlow.value)
+        assertEquals(RootNavState.TrustedDevice, viewModel.stateFlow.value)
     }
 
     @Suppress("MaxLineLength")