diff --git a/communication/provider/matrix/classes/communication_feature.php b/communication/provider/matrix/classes/communication_feature.php
index e955aa1f5d1..a7070f38aed 100644
--- a/communication/provider/matrix/classes/communication_feature.php
+++ b/communication/provider/matrix/classes/communication_feature.php
@@ -24,6 +24,7 @@ use communication_matrix\local\spec\features\matrix\{
     update_room_name_v3 as update_room_name_feature,
     update_room_topic_v3 as update_room_topic_feature,
     upload_content_v3 as upload_content_feature,
+    media_create_v1 as media_create_feature,
 };
 use communication_matrix\local\spec\features\synapse\{
     create_user_v2 as create_user_feature,
@@ -409,7 +410,7 @@ class communication_feature implements
      * Update the room avatar when an instance image is added or updated.
      */
     public function update_room_avatar(): void {
-        // Either of the following features of the remote API are required.
+        // Both of the following features of the remote API are required.
         $this->matrixapi->require_features([
             upload_content_feature::class,
             update_room_avatar_feature::class,
@@ -423,20 +424,37 @@ class communication_feature implements
         $instanceimage = $this->processor->get_avatar();
         $contenturi = null;
 
-        // If avatar is set for the instance, upload to Matrix. Otherwise, leave null for unsetting.
-        if (!empty($instanceimage)) {
-            // First upload the content.
-            $response = $this->matrixapi->upload_content($instanceimage);
-            $body = self::get_body($response);
-            $contenturi = $body->content_uri;
+        if ($this->matrixapi->implements_feature(media_create_feature::class)) {
+            // From version 1.7 we can fetch a mxc URI and use it before uploading the content.
+            if ($instanceimage) {
+                $response = $this->matrixapi->media_create();
+                $contenturi = self::get_body($response)->content_uri;
+
+                // Now update the room avatar.
+                $response = $this->matrixapi->update_room_avatar($this->get_room_id(), $contenturi);
+
+                // And finally upload the content.
+                $this->matrixapi->upload_content($instanceimage);
+            } else {
+                $response = $this->matrixapi->update_room_avatar($this->get_room_id(), null);
+            }
+        } else {
+            // Prior to v1.7 the only way to upload content was to upload the content, which returns a mxc URI to use.
+
+            if ($instanceimage) {
+                // First upload the content.
+                $response = $this->matrixapi->upload_content($instanceimage);
+                $body = self::get_body($response);
+                $contenturi = $body->content_uri;
+            }
 
             // Now update the room avatar.
             $response = $this->matrixapi->update_room_avatar($this->get_room_id(), $contenturi);
+        }
 
-            // Indicate the avatar has been synced if it was successfully set with Matrix.
-            if ($response->getReasonPhrase() === 'OK') {
-                $this->processor->set_avatar_synced_flag(true);
-            }
+        // Indicate the avatar has been synced if it was successfully set with Matrix.
+        if ($response->getReasonPhrase() === 'OK') {
+            $this->processor->set_avatar_synced_flag(true);
         }
     }
 
diff --git a/communication/provider/matrix/classes/local/spec/features/matrix/media_create_v1.php b/communication/provider/matrix/classes/local/spec/features/matrix/media_create_v1.php
new file mode 100644
index 00000000000..c47f0142112
--- /dev/null
+++ b/communication/provider/matrix/classes/local/spec/features/matrix/media_create_v1.php
@@ -0,0 +1,47 @@
+<?php
+// This file is part of Moodle - http://moodle.org/
+//
+// Moodle is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+//
+// Moodle is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+//
+// You should have received a copy of the GNU General Public License
+// along with Moodle.  If not, see <http://www.gnu.org/licenses/>.
+
+namespace communication_matrix\local\spec\features\matrix;
+
+use communication_matrix\local\command;
+use GuzzleHttp\Psr7\Response;
+
+/**
+ * Matrix API feature to create an mxc Media URI.
+ *
+ * https://spec.matrix.org/v1.1/client-server-api/#post_matrixmediav3upload
+ *
+ * @package    communication_matrix
+ * @copyright  2023 Andrew Lyons <andrew@nicols.co.uk>
+ * @license    http://www.gnu.org/copyleft/gpl.html GNU GPL v3 or later
+ * @codeCoverageIgnore
+ * This code does not warrant being tested. Testing offers no discernible benefit given its usage is tested.
+ */
+trait media_create_v1 {
+
+    /**
+     * Create a media URI.
+     *
+     * @return Response
+     */
+    public function media_create(): Response {
+        return $this->execute(new command(
+            $this,
+            method: 'POST',
+            endpoint: '_matrix/media/v1/create',
+        ));
+    }
+}
diff --git a/communication/provider/matrix/classes/local/spec/features/matrix/upload_content_v3.php b/communication/provider/matrix/classes/local/spec/features/matrix/upload_content_v3.php
index 962553e9592..0e53bc04328 100644
--- a/communication/provider/matrix/classes/local/spec/features/matrix/upload_content_v3.php
+++ b/communication/provider/matrix/classes/local/spec/features/matrix/upload_content_v3.php
@@ -37,23 +37,41 @@ trait upload_content_v3 {
      * Upload the content in the matrix/synapse server.
      *
      * @param null|\stored_file $content The content to be uploaded
+     * @param null|string $mediaid The mediaid to associate a file with. Supported for v1.7 API an above only.
      * @return Response
      */
     public function upload_content(
         ?\stored_file $content,
+        ?string $mediaid = null,
     ): Response {
         $query = [];
         if ($content) {
             $query['filename'] = $content->get_filename();
         }
 
-        $command = new command(
-            $this,
-            method: 'POST',
-            endpoint: '_matrix/media/v3/upload',
-            sendasjson: false,
-            query: $query,
-        );
+        if ($mediaid !== null) {
+            // Specification of the mediaid requires version 1.7 or above of the upload API.
+            // See https://spec.matrix.org/v1.7/client-server-api/#put_matrixmediav3uploadservernamemediaid.
+            $this->requires_version('1.7');
+            $command = new command(
+                $this,
+                method: 'PUT',
+                endpoint: '_matrix/media/v3/upload/:mediaid',
+                sendasjson: false,
+                query: $query,
+                params: [
+                    'mediaid' => $mediaid,
+                ],
+            );
+        } else {
+            $command = new command(
+                $this,
+                method: 'POST',
+                endpoint: '_matrix/media/v3/upload',
+                sendasjson: false,
+                query: $query,
+            );
+        }
 
         if ($content) {
             // Add the content-type, and header.
diff --git a/communication/provider/matrix/classes/local/spec/v1p7.php b/communication/provider/matrix/classes/local/spec/v1p7.php
index 3e2012500b3..0f2acf82c81 100644
--- a/communication/provider/matrix/classes/local/spec/v1p7.php
+++ b/communication/provider/matrix/classes/local/spec/v1p7.php
@@ -27,7 +27,9 @@ namespace communication_matrix\local\spec;
  * @license    http://www.gnu.org/copyleft/gpl.html GNU GPL v3 or later
  */
 class v1p7 extends v1p6 {
-    // Note: A new Content Upload API was introduced, but it doesn't benefit us in any way.
+    // Note: A new Content Upload API was introduced.
     // See details in the spec:
     // https://github.com/matrix-org/matrix-spec-proposals/pull/2246.
+
+    use features\matrix\media_create_v1;
 }
diff --git a/communication/provider/matrix/tests/matrix_client_test.php b/communication/provider/matrix/tests/matrix_client_test.php
index 272bea4e327..f7b68261e08 100644
--- a/communication/provider/matrix/tests/matrix_client_test.php
+++ b/communication/provider/matrix/tests/matrix_client_test.php
@@ -253,6 +253,16 @@ class matrix_client_test extends \advanced_testcase {
      */
     public function implements_feature_provider(): array {
         return [
+            'Basic supported feature' => [
+                'v1.7',
+                features\matrix\media_create_v1::class,
+                true,
+            ],
+            'Basic unsupported feature' => [
+                'v1.6',
+                features\matrix\media_create_v1::class,
+                false,
+            ],
             '[supported] as array' => [
                 'v1.6',
                 [features\matrix\create_room_v3::class],
@@ -266,6 +276,21 @@ class matrix_client_test extends \advanced_testcase {
                 ],
                 true,
             ],
+            '[unsupported] as array' => [
+                'v1.6',
+                [
+                    features\matrix\media_create_v1::class,
+                ],
+                false,
+            ],
+            '[unsupported, supported] as array' => [
+                'v1.6',
+                [
+                    features\matrix\media_create_v1::class,
+                    features\matrix\update_room_avatar_v3::class,
+                ],
+                true,
+            ],
         ];
     }
 
@@ -290,6 +315,27 @@ class matrix_client_test extends \advanced_testcase {
             true,
         ];
 
+        $testcases['Require many including an unsupported feature'] = [
+            'v1.6',
+            [
+                features\matrix\create_room_v3::class,
+                features\matrix\media_create_v1::class,
+            ],
+            false,
+        ];
+
+        $testcases['Require many including an unsupported feature which has an alternate'] = [
+            'v1.6',
+            [
+                features\matrix\create_room_v3::class,
+                [
+                    features\matrix\media_create_v1::class,
+                    features\matrix\update_room_avatar_v3::class,
+                ],
+            ],
+            true,
+        ];
+
         return $testcases;
     }