diff --git a/changelog.d/7466.bugfix b/changelog.d/7466.bugfix
new file mode 100644
index 0000000000..bcca741d27
--- /dev/null
+++ b/changelog.d/7466.bugfix
@@ -0,0 +1 @@
+Restore formatting when restoring a draft. Also keep formatting when switching composer mode.
diff --git a/vector/src/main/java/im/vector/app/features/home/room/detail/composer/MessageComposerFragment.kt b/vector/src/main/java/im/vector/app/features/home/room/detail/composer/MessageComposerFragment.kt
index 338a635818..038f009d22 100644
--- a/vector/src/main/java/im/vector/app/features/home/room/detail/composer/MessageComposerFragment.kt
+++ b/vector/src/main/java/im/vector/app/features/home/room/detail/composer/MessageComposerFragment.kt
@@ -47,6 +47,7 @@ import com.vanniktech.emoji.EmojiPopup
 import dagger.hilt.android.AndroidEntryPoint
 import im.vector.app.R
 import im.vector.app.core.error.fatalError
+import im.vector.app.core.extensions.orEmpty
 import im.vector.app.core.extensions.registerStartForActivityResult
 import im.vector.app.core.extensions.showKeyboard
 import im.vector.app.core.glide.GlideApp
@@ -255,7 +256,7 @@ class MessageComposerFragment : VectorBaseFragment<FragmentComposerBinding>(), A
                 it.isRecordingVoiceBroadcast && !requireActivity().isChangingConfigurations -> timelineViewModel.handle(VoiceBroadcastAction.Recording.Pause)
                 else -> {
                     timelineViewModel.handle(VoiceBroadcastAction.Listening.Pause)
-                    messageComposerViewModel.handle(MessageComposerAction.OnEntersBackground(composer.text.toString()))
+                    messageComposerViewModel.handle(MessageComposerAction.OnEntersBackground(composer.formattedText ?: composer.text.orEmpty().toString()))
                 }
             }
         }
@@ -403,7 +404,7 @@ class MessageComposerFragment : VectorBaseFragment<FragmentComposerBinding>(), A
             }
 
             override fun onTextChanged(text: CharSequence) {
-                messageComposerViewModel.handle(MessageComposerAction.OnTextChanged(text))
+                messageComposerViewModel.handle(MessageComposerAction.OnTextChanged(composer.formattedText ?: text))
             }
 
             override fun onFullScreenModeChanged() = withState(messageComposerViewModel) { state ->