diff --git a/test/components/views/dialogs/CreateRoomDialog-test.tsx b/test/components/views/dialogs/CreateRoomDialog-test.tsx
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+++ b/test/components/views/dialogs/CreateRoomDialog-test.tsx
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+/*
+Copyright 2023 The Matrix.org Foundation C.I.C.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+import React from "react";
+import { fireEvent, render, screen, within } from "@testing-library/react";
+import { Preset, Visibility } from "matrix-js-sdk/src/matrix";
+
+import CreateRoomDialog from "../../../../src/components/views/dialogs/CreateRoomDialog";
+import { flushPromises, getMockClientWithEventEmitter, mockClientMethodsUser } from "../../../test-utils";
+
+describe("<CreateRoomDialog />", () => {
+    const userId = "@alice:server.org";
+    const mockClient = getMockClientWithEventEmitter({
+        ...mockClientMethodsUser(userId),
+        getDomain: jest.fn().mockReturnValue("server.org"),
+        getClientWellKnown: jest.fn(),
+        doesServerForceEncryptionForPreset: jest.fn(),
+        // make every alias available
+        getRoomIdForAlias: jest.fn().mockRejectedValue({ errcode: "M_NOT_FOUND" }),
+    });
+
+    const getE2eeEnableToggleInputElement = () => screen.getByLabelText("Enable end-to-end encryption");
+    // labelled toggle switch doesn't set the disabled attribute, only aria-disabled
+    const getE2eeEnableToggleIsDisabled = () =>
+        getE2eeEnableToggleInputElement().getAttribute("aria-disabled") === "true";
+
+    beforeEach(() => {
+        mockClient.doesServerForceEncryptionForPreset.mockResolvedValue(false);
+        mockClient.getClientWellKnown.mockReturnValue({});
+    });
+
+    const getComponent = (props = {}) => render(<CreateRoomDialog onFinished={jest.fn()} {...props} />);
+
+    it("should default to private room", async () => {
+        getComponent();
+        await flushPromises();
+
+        expect(screen.getByText("Create a private room")).toBeInTheDocument();
+    });
+
+    it("should use defaultName from props", async () => {
+        const defaultName = "My test room";
+        getComponent({ defaultName });
+        await flushPromises();
+
+        expect(screen.getByLabelText("Name")).toHaveDisplayValue(defaultName);
+    });
+
+    describe("for a private room", () => {
+        // default behaviour is a private room
+
+        it("should use server .well-known default for encryption setting", async () => {
+            // default to off
+            mockClient.getClientWellKnown.mockReturnValue({
+                "io.element.e2ee": {
+                    default: false,
+                },
+            });
+            getComponent();
+            await flushPromises();
+
+            expect(getE2eeEnableToggleInputElement()).not.toBeChecked();
+            expect(getE2eeEnableToggleIsDisabled()).toBeFalsy();
+            expect(
+                screen.getByText(
+                    "Your server admin has disabled end-to-end encryption by default in private rooms & Direct Messages.",
+                ),
+            );
+        });
+
+        it("should use defaultEncrypted prop", async () => {
+            // default to off in server wk
+            mockClient.getClientWellKnown.mockReturnValue({
+                "io.element.e2ee": {
+                    default: false,
+                },
+            });
+            // but pass defaultEncrypted prop
+            getComponent({ defaultEncrypted: true });
+            await flushPromises();
+            // encryption enabled
+            expect(getE2eeEnableToggleInputElement()).toBeChecked();
+            expect(getE2eeEnableToggleIsDisabled()).toBeFalsy();
+        });
+
+        it("should enable encryption toggle and disable field when server forces encryption", async () => {
+            mockClient.doesServerForceEncryptionForPreset.mockResolvedValue(true);
+            getComponent();
+
+            await flushPromises();
+            expect(getE2eeEnableToggleInputElement()).toBeChecked();
+            expect(getE2eeEnableToggleIsDisabled()).toBeTruthy();
+
+            expect(screen.getByText("Your server requires encryption to be enabled in private rooms."));
+        });
+
+        it("should warn when trying to create a room with an invalid form", async () => {
+            const onFinished = jest.fn();
+            getComponent({ onFinished });
+            await flushPromises();
+
+            fireEvent.click(screen.getByText("Create room"));
+            await flushPromises();
+
+            // didn't submit room
+            expect(onFinished).not.toHaveBeenCalled();
+        });
+
+        it("should create a private room", async () => {
+            const onFinished = jest.fn();
+            getComponent({ onFinished });
+            await flushPromises();
+
+            const roomName = "Test Room Name";
+            fireEvent.change(screen.getByLabelText("Name"), { target: { value: roomName } });
+
+            fireEvent.click(screen.getByText("Create room"));
+            await flushPromises();
+
+            expect(onFinished).toHaveBeenCalledWith(true, {
+                createOpts: {
+                    name: roomName,
+                },
+                encryption: true,
+                parentSpace: undefined,
+                roomType: undefined,
+            });
+        });
+    });
+
+    describe("for a public room", () => {
+        it("should set join rule to public defaultPublic is truthy", async () => {
+            const onFinished = jest.fn();
+            getComponent({ defaultPublic: true, onFinished });
+            await flushPromises();
+
+            expect(screen.getByText("Create a public room")).toBeInTheDocument();
+
+            // e2e section is not rendered
+            expect(screen.queryByText("Enable end-to-end encryption")).not.toBeInTheDocument();
+
+            const roomName = "Test Room Name";
+            fireEvent.change(screen.getByLabelText("Name"), { target: { value: roomName } });
+        });
+
+        it("should not create a public room without an alias", async () => {
+            const onFinished = jest.fn();
+            getComponent({ onFinished });
+            await flushPromises();
+
+            // set to public
+            fireEvent.click(screen.getByLabelText("Room visibility"));
+            fireEvent.click(screen.getByText("Public room"));
+            expect(within(screen.getByLabelText("Room visibility")).findByText("Public room")).toBeTruthy();
+            expect(screen.getByText("Create a public room")).toBeInTheDocument();
+
+            // set name
+            const roomName = "Test Room Name";
+            fireEvent.change(screen.getByLabelText("Name"), { target: { value: roomName } });
+
+            // try to create the room
+            fireEvent.click(screen.getByText("Create room"));
+            await flushPromises();
+
+            // alias field invalid
+            expect(screen.getByLabelText("Room address").parentElement!).toHaveClass("mx_Field_invalid");
+
+            // didn't submit
+            expect(onFinished).not.toHaveBeenCalled();
+        });
+
+        it("should create a public room", async () => {
+            const onFinished = jest.fn();
+            getComponent({ onFinished, defaultPublic: true });
+            await flushPromises();
+
+            // set name
+            const roomName = "Test Room Name";
+            fireEvent.change(screen.getByLabelText("Name"), { target: { value: roomName } });
+
+            const roomAlias = "test";
+
+            fireEvent.change(screen.getByLabelText("Room address"), { target: { value: roomAlias } });
+
+            // try to create the room
+            fireEvent.click(screen.getByText("Create room"));
+            await flushPromises();
+
+            expect(onFinished).toHaveBeenCalledWith(true, {
+                createOpts: {
+                    name: roomName,
+                    preset: Preset.PublicChat,
+                    room_alias_name: roomAlias,
+                    visibility: Visibility.Public,
+                },
+                guestAccess: false,
+                parentSpace: undefined,
+                roomType: undefined,
+            });
+        });
+    });
+});