diff --git a/lib/AppInfo/Application.php b/lib/AppInfo/Application.php
index 6d6b295fe0f..21fa3b69705 100644
--- a/lib/AppInfo/Application.php
+++ b/lib/AppInfo/Application.php
@@ -72,6 +72,7 @@
 use OCA\Talk\Federation\Proxy\TalkV1\Notifier\BeforeRoomDeletedListener as TalkV1BeforeRoomDeletedListener;
 use OCA\Talk\Federation\Proxy\TalkV1\Notifier\CancelRetryOCMListener as TalkV1CancelRetryOCMListener;
 use OCA\Talk\Federation\Proxy\TalkV1\Notifier\MessageSentListener as TalkV1MessageSentListener;
+use OCA\Talk\Federation\Proxy\TalkV1\Notifier\ParticipantModifiedListener as TalkV1ParticipantModifiedListener;
 use OCA\Talk\Federation\Proxy\TalkV1\Notifier\RoomModifiedListener as TalkV1RoomModifiedListener;
 use OCA\Talk\Files\Listener as FilesListener;
 use OCA\Talk\Files\TemplateLoader as FilesTemplateLoader;
@@ -268,6 +269,7 @@ public function register(IRegistrationContext $context): void {
 
 		// Federation listeners
 		$context->registerEventListener(BeforeRoomDeletedEvent::class, TalkV1BeforeRoomDeletedListener::class);
+		$context->registerEventListener(ParticipantModifiedEvent::class, TalkV1ParticipantModifiedListener::class);
 		$context->registerEventListener(CallEndedEvent::class, TalkV1RoomModifiedListener::class);
 		$context->registerEventListener(CallEndedForEveryoneEvent::class, TalkV1RoomModifiedListener::class);
 		$context->registerEventListener(CallStartedEvent::class, TalkV1RoomModifiedListener::class);
diff --git a/lib/Federation/BackendNotifier.php b/lib/Federation/BackendNotifier.php
index 6aff638db4b..5900855b6de 100644
--- a/lib/Federation/BackendNotifier.php
+++ b/lib/Federation/BackendNotifier.php
@@ -69,6 +69,7 @@ public function sendRemoteShare(
 		$roomName = $room->getName();
 		$roomType = $room->getType();
 		$roomToken = $room->getToken();
+		$roomDefaultPermissions = $room->getDefaultPermissions();
 
 		try {
 			$this->restrictionValidator->isAllowedToInvite($sharedBy, $invitedCloudId);
@@ -101,6 +102,7 @@ public function sendRemoteShare(
 		$protocol['invitedCloudId'] = $invitedCloudId->getId();
 		$protocol['roomName'] = $roomName;
 		$protocol['roomType'] = $roomType;
+		$protocol['roomDefaultPermissions'] = $roomDefaultPermissions;
 		$protocol['name'] = FederationManager::TALK_PROTOCOL_NAME;
 		$share->setProtocol($protocol);
 
@@ -251,6 +253,40 @@ public function sendRoomModifiedUpdate(
 		return $this->sendUpdateToRemote($remote, $notification);
 	}
 
+	/**
+	 * Send information to remote participants that the participant meta info updated
+	 * Sent from Host server to Remote participant server (only for the affected participant)
+	 */
+	public function sendParticipantModifiedUpdate(
+		string $remoteServer,
+		int $localAttendeeId,
+		#[SensitiveParameter]
+		string $accessToken,
+		string $localToken,
+		string $changedProperty,
+		string|int $newValue,
+		string|int|null $oldValue,
+	): ?bool {
+		$remote = $this->prepareRemoteUrl($remoteServer);
+
+		$notification = $this->cloudFederationFactory->getCloudFederationNotification();
+		$notification->setMessage(
+			FederationManager::NOTIFICATION_PARTICIPANT_MODIFIED,
+			FederationManager::TALK_ROOM_RESOURCE,
+			(string) $localAttendeeId,
+			[
+				'remoteServerUrl' => $this->getServerRemoteUrl(),
+				'sharedSecret' => $accessToken,
+				'remoteToken' => $localToken,
+				'changedProperty' => $changedProperty,
+				'newValue' => $newValue,
+				'oldValue' => $oldValue,
+			],
+		);
+
+		return $this->sendUpdateToRemote($remote, $notification);
+	}
+
 	/**
 	 * Send information to remote participants that "active since" was updated
 	 * Sent from Host server to Remote participant server
diff --git a/lib/Federation/CloudFederationProviderTalk.php b/lib/Federation/CloudFederationProviderTalk.php
index 49d65b65823..5fd5b6b50c0 100644
--- a/lib/Federation/CloudFederationProviderTalk.php
+++ b/lib/Federation/CloudFederationProviderTalk.php
@@ -125,6 +125,7 @@ public function shareReceived(ICloudFederationShare $share): string {
 		$remoteId = $share->getProviderId();
 		$roomToken = $share->getResourceName();
 		$roomName = $share->getProtocol()['roomName'];
+		$roomDefaultPermissions = $share->getProtocol()['roomDefaultPermissions'] ?? Attendee::PERMISSIONS_DEFAULT;
 		if (isset($share->getProtocol()['invitedCloudId'])) {
 			$localCloudId = $share->getProtocol()['invitedCloudId'];
 		} else {
@@ -173,7 +174,7 @@ public function shareReceived(ICloudFederationShare $share): string {
 				throw new ProviderCouldNotAddShareException('User does not exist', '', Http::STATUS_BAD_REQUEST);
 			}
 
-			$invite = $this->federationManager->addRemoteRoom($shareWithUser, (int) $remoteId, $roomType, $roomName, $roomToken, $remote, $shareSecret, $sharedByFederatedId, $sharedByDisplayName, $localCloudId);
+			$invite = $this->federationManager->addRemoteRoom($shareWithUser, (int) $remoteId, $roomType, $roomName, $roomDefaultPermissions, $roomToken, $remote, $shareSecret, $sharedByFederatedId, $sharedByDisplayName, $localCloudId);
 
 			$this->notifyAboutNewShare($shareWithUser, (string) $invite->getId(), $sharedByFederatedId, $sharedByDisplayName, $roomName, $roomToken, $remote);
 			return (string) $invite->getId();
@@ -197,6 +198,8 @@ public function notificationReceived($notificationType, $providerId, array $noti
 				return $this->shareDeclined((int) $providerId, $notification);
 			case FederationManager::NOTIFICATION_SHARE_UNSHARED:
 				return $this->shareUnshared((int) $providerId, $notification);
+			case FederationManager::NOTIFICATION_PARTICIPANT_MODIFIED:
+				return $this->participantModified((int) $providerId, $notification);
 			case FederationManager::NOTIFICATION_ROOM_MODIFIED:
 				return $this->roomModified((int) $providerId, $notification);
 			case FederationManager::NOTIFICATION_MESSAGE_POSTED:
@@ -292,6 +295,42 @@ private function shareUnshared(int $remoteAttendeeId, array $notification): arra
 		return [];
 	}
 
+	/**
+	 * @param int $remoteAttendeeId
+	 * @param array{remoteServerUrl: string, sharedSecret: string, remoteToken: string, changedProperty: string, newValue: string|int, oldValue: string|int|null} $notification
+	 * @return array
+	 * @throws ActionNotSupportedException
+	 * @throws AuthenticationFailedException
+	 * @throws ShareNotFound
+	 */
+	private function participantModified(int $remoteAttendeeId, array $notification): array {
+		$invite = $this->getByRemoteAttendeeAndValidate($notification['remoteServerUrl'], $remoteAttendeeId, $notification['sharedSecret']);
+		try {
+			$room = $this->manager->getRoomById($invite->getLocalRoomId());
+		} catch (RoomNotFoundException) {
+			throw new ShareNotFound(FederationManager::OCM_RESOURCE_NOT_FOUND);
+		}
+
+		// Sanity check to make sure the room is a remote room
+		if (!$room->isFederatedConversation()) {
+			throw new ShareNotFound(FederationManager::OCM_RESOURCE_NOT_FOUND);
+		}
+
+		try {
+			$participant = $this->participantService->getParticipant($room, $invite->getUserId());
+		} catch (ParticipantNotFoundException $e) {
+			throw new ShareNotFound(FederationManager::OCM_RESOURCE_NOT_FOUND);
+		}
+
+		if ($notification['changedProperty'] === AParticipantModifiedEvent::PROPERTY_PERMISSIONS) {
+			$this->participantService->updatePermissions($room, $participant, Attendee::PERMISSIONS_MODIFY_SET, $notification['newValue']);
+		} else {
+			$this->logger->debug('Update of participant property "' . $notification['changedProperty'] . '" is not handled and should not be send via federation');
+		}
+
+		return [];
+	}
+
 	/**
 	 * @param int $remoteAttendeeId
 	 * @param array{remoteServerUrl: string, sharedSecret: string, remoteToken: string, changedProperty: string, newValue: string|int|bool|null, oldValue: string|int|bool|null, callFlag?: int, dateTime?: string, timerReached?: bool, details?: array<AParticipantModifiedEvent::DETAIL_*, bool>} $notification
@@ -324,6 +363,8 @@ private function roomModified(int $remoteAttendeeId, array $notification): array
 			$this->roomService->setAvatar($room, $notification['newValue']);
 		} elseif ($notification['changedProperty'] === ARoomModifiedEvent::PROPERTY_CALL_RECORDING) {
 			$this->roomService->setCallRecording($room, $notification['newValue']);
+		} elseif ($notification['changedProperty'] === ARoomModifiedEvent::PROPERTY_DEFAULT_PERMISSIONS) {
+			$this->roomService->setDefaultPermissions($room, $notification['newValue']);
 		} elseif ($notification['changedProperty'] === ARoomModifiedEvent::PROPERTY_DESCRIPTION) {
 			$this->roomService->setDescription($room, $notification['newValue']);
 		} elseif ($notification['changedProperty'] === ARoomModifiedEvent::PROPERTY_IN_CALL) {
diff --git a/lib/Federation/FederationManager.php b/lib/Federation/FederationManager.php
index 9e022a9a66c..e350897498f 100644
--- a/lib/Federation/FederationManager.php
+++ b/lib/Federation/FederationManager.php
@@ -19,6 +19,7 @@
 use OCA\Talk\Participant;
 use OCA\Talk\Room;
 use OCA\Talk\Service\ParticipantService;
+use OCA\Talk\Service\RoomService;
 use OCP\AppFramework\Db\DoesNotExistException;
 use OCP\AppFramework\Http;
 use OCP\Federation\Exceptions\ProviderCouldNotAddShareException;
@@ -42,6 +43,7 @@ class FederationManager {
 	public const NOTIFICATION_SHARE_ACCEPTED = 'SHARE_ACCEPTED';
 	public const NOTIFICATION_SHARE_DECLINED = 'SHARE_DECLINED';
 	public const NOTIFICATION_SHARE_UNSHARED = 'SHARE_UNSHARED';
+	public const NOTIFICATION_PARTICIPANT_MODIFIED = 'PARTICIPANT_MODIFIED';
 	public const NOTIFICATION_ROOM_MODIFIED = 'ROOM_MODIFIED';
 	public const NOTIFICATION_MESSAGE_POSTED = 'MESSAGE_POSTED';
 	public const TOKEN_LENGTH = 64;
@@ -49,6 +51,7 @@ class FederationManager {
 	public function __construct(
 		private Manager $manager,
 		private ParticipantService $participantService,
+		private RoomService $roomService,
 		private InvitationMapper $invitationMapper,
 		private BackendNotifier $backendNotifier,
 		private IManager $notificationManager,
@@ -74,6 +77,7 @@ public function addRemoteRoom(
 		int $remoteAttendeeId,
 		int $roomType,
 		string $roomName,
+		int $roomDefaultPermissions,
 		string $remoteToken,
 		string $remoteServerUrl,
 		#[SensitiveParameter]
@@ -90,6 +94,13 @@ public function addRemoteRoom(
 			$room = $this->manager->createRemoteRoom($roomType, $roomName, $remoteToken, $remoteServerUrl);
 		}
 
+		// Only update the room permissions if there are no participants in the
+		// remote room. Otherwise, the room permissions would be up to date
+		// already due to the notifications about room permission changes.
+		if (!$this->participantService->getNumberOfActors($room)) {
+			$this->roomService->setDefaultPermissions($room, $roomDefaultPermissions);
+		}
+
 		if ($couldHaveInviteWithOtherCasing) {
 			try {
 				$this->invitationMapper->getInvitationForUserByLocalRoom($room, $user->getUID(), true);
diff --git a/lib/Federation/Proxy/TalkV1/Notifier/ParticipantModifiedListener.php b/lib/Federation/Proxy/TalkV1/Notifier/ParticipantModifiedListener.php
new file mode 100644
index 00000000000..cacbccace12
--- /dev/null
+++ b/lib/Federation/Proxy/TalkV1/Notifier/ParticipantModifiedListener.php
@@ -0,0 +1,70 @@
+<?php
+
+declare(strict_types=1);
+/**
+ * SPDX-FileCopyrightText: 2024 Nextcloud GmbH and Nextcloud contributors
+ * SPDX-License-Identifier: AGPL-3.0-or-later
+ */
+
+namespace OCA\Talk\Federation\Proxy\TalkV1\Notifier;
+
+use OCA\Talk\Events\AAttendeeRemovedEvent;
+use OCA\Talk\Events\AParticipantModifiedEvent;
+use OCA\Talk\Events\ParticipantModifiedEvent;
+use OCA\Talk\Federation\BackendNotifier;
+use OCA\Talk\Model\Attendee;
+use OCA\Talk\Participant;
+use OCA\Talk\Service\ParticipantService;
+use OCP\EventDispatcher\Event;
+use OCP\EventDispatcher\IEventListener;
+use OCP\Federation\ICloudId;
+use OCP\Federation\ICloudIdManager;
+
+/**
+ * @template-implements IEventListener<Event>
+ */
+class ParticipantModifiedListener implements IEventListener {
+	public function __construct(
+		protected BackendNotifier $backendNotifier,
+		protected ParticipantService $participantService,
+		protected ICloudIdManager $cloudIdManager,
+	) {
+	}
+
+	public function handle(Event $event): void {
+		if (!$event instanceof ParticipantModifiedEvent) {
+			return;
+		}
+
+		$participant = $event->getParticipant();
+		if ($participant->getAttendee()->getActorType() !== Attendee::ACTOR_FEDERATED_USERS) {
+			return;
+		}
+
+		if (!in_array($event->getProperty(), [
+			AParticipantModifiedEvent::PROPERTY_PERMISSIONS,
+		], true)) {
+			return;
+		}
+
+		// For modifying participants we only notify the affected participant's server
+		$cloudId = $this->cloudIdManager->resolveCloudId($participant->getAttendee()->getActorId());
+		$success = $this->notifyParticipantModified($cloudId, $participant, $event);
+
+		if ($success === null) {
+			$this->participantService->removeAttendee($event->getRoom(), $participant, AAttendeeRemovedEvent::REASON_LEFT);
+		}
+	}
+
+	private function notifyParticipantModified(ICloudId $cloudId, Participant $participant, AParticipantModifiedEvent $event): ?bool {
+		return $this->backendNotifier->sendParticipantModifiedUpdate(
+			$cloudId->getRemote(),
+			$participant->getAttendee()->getId(),
+			$participant->getAttendee()->getAccessToken(),
+			$event->getRoom()->getToken(),
+			$event->getProperty(),
+			$event->getNewValue(),
+			$event->getOldValue(),
+		);
+	}
+}
diff --git a/lib/Federation/Proxy/TalkV1/Notifier/RoomModifiedListener.php b/lib/Federation/Proxy/TalkV1/Notifier/RoomModifiedListener.php
index a81fedd34f9..a5cc88d7f5a 100644
--- a/lib/Federation/Proxy/TalkV1/Notifier/RoomModifiedListener.php
+++ b/lib/Federation/Proxy/TalkV1/Notifier/RoomModifiedListener.php
@@ -50,6 +50,7 @@ public function handle(Event $event): void {
 			ARoomModifiedEvent::PROPERTY_ACTIVE_SINCE,
 			ARoomModifiedEvent::PROPERTY_AVATAR,
 			ARoomModifiedEvent::PROPERTY_CALL_RECORDING,
+			ARoomModifiedEvent::PROPERTY_DEFAULT_PERMISSIONS,
 			ARoomModifiedEvent::PROPERTY_DESCRIPTION,
 			ARoomModifiedEvent::PROPERTY_IN_CALL,
 			ARoomModifiedEvent::PROPERTY_LOBBY,
diff --git a/tests/integration/features/bootstrap/FeatureContext.php b/tests/integration/features/bootstrap/FeatureContext.php
index 517a4c3dbe7..d7721eb7a47 100644
--- a/tests/integration/features/bootstrap/FeatureContext.php
+++ b/tests/integration/features/bootstrap/FeatureContext.php
@@ -562,9 +562,6 @@ private function assertRooms(array $rooms, TableNode $formData, bool $shouldOrde
 			if (isset($expectedRoom['permissions'])) {
 				$data['permissions'] = $this->mapPermissionsAPIOutput($room['permissions']);
 			}
-			if (isset($expectedRoom['permissions'])) {
-				$data['permissions'] = $this->mapPermissionsAPIOutput($room['permissions']);
-			}
 			if (isset($expectedRoom['attendeePermissions'])) {
 				$data['attendeePermissions'] = $this->mapPermissionsAPIOutput($room['attendeePermissions']);
 			}
@@ -2019,6 +2016,12 @@ public function userSetsPermissionsForInRoomTo(string $user, string $participant
 		} elseif (strpos($participant, 'guest') === 0) {
 			$sessionId = self::$userToSessionId[$participant];
 			$attendeeId = $this->getAttendeeId('guests', sha1($sessionId), $identifier, $statusCode === 200 ? $user : null);
+		} elseif (str_ends_with($participant, '@{$LOCAL_REMOTE_URL}') ||
+				str_ends_with($participant, '@{$REMOTE_URL}')) {
+			$participant = str_replace('{$LOCAL_REMOTE_URL}', rtrim($this->localRemoteServerUrl, '/'), $participant);
+			$participant = str_replace('{$REMOTE_URL}', rtrim($this->remoteServerUrl, '/'), $participant);
+
+			$attendeeId = $this->getAttendeeId('federated_users', $participant, $identifier, $statusCode === 200 ? $user : null);
 		} else {
 			$attendeeId = $this->getAttendeeId('users', $participant, $identifier, $statusCode === 200 ? $user : null);
 		}
diff --git a/tests/integration/features/federation/permissions.feature b/tests/integration/features/federation/permissions.feature
new file mode 100644
index 00000000000..521c074b295
--- /dev/null
+++ b/tests/integration/features/federation/permissions.feature
@@ -0,0 +1,131 @@
+Feature: federation/permissions
+
+  Background:
+    Given user "participant1" exists
+    And user "participant2" exists
+    And the following "spreed" app config is set
+      | federation_enabled | yes |
+
+  Scenario: set participant permissions
+    Given user "participant3" exists
+    And user "participant1" creates room "room" (v4)
+      | roomType | 2 |
+      | roomName | room name |
+    And user "participant1" adds federated_user "participant2" to room "room" with 200 (v4)
+    And user "participant2" has the following invitations (v1)
+      | remoteServerUrl | remoteToken | state | inviterCloudId                     | inviterDisplayName       |
+      | LOCAL           | room        | 0     | participant1@http://localhost:8080 | participant1-displayname |
+    And user "participant2" accepts invite to room "room" of server "LOCAL" with 200 (v1)
+      | id          | name      | type | remoteServer | remoteToken |
+      | LOCAL::room | room name | 2    | LOCAL        | room        |
+    And user "participant1" adds federated_user "participant3" to room "room" with 200 (v4)
+    And user "participant3" has the following invitations (v1)
+      | remoteServerUrl | remoteToken | state | inviterCloudId                     | inviterDisplayName       |
+      | LOCAL           | room        | 0     | participant1@http://localhost:8080 | participant1-displayname |
+    And user "participant3" accepts invite to room "room" of server "LOCAL" with 200 (v1)
+      | id          | name      | type | remoteServer | remoteToken |
+      | LOCAL::room | room name | 2    | LOCAL        | room        |
+    When user "participant1" sets permissions for "participant2@{$LOCAL_REMOTE_URL}" in room "room" to "S" with 200 (v4)
+    Then user "participant2" is participant of room "LOCAL::room" (v4)
+      | permissions | attendeePermissions |
+      | CS          | CS                  |
+    Then user "participant3" is participant of room "LOCAL::room" (v4)
+      | permissions | attendeePermissions |
+      | SJAVPM      | D                  |
+
+  Scenario: set default permissions
+    Given user "participant1" creates room "room" (v4)
+      | roomType | 2 |
+      | roomName | room name |
+    And user "participant1" adds federated_user "participant2" to room "room" with 200 (v4)
+    And user "participant2" has the following invitations (v1)
+      | remoteServerUrl | remoteToken | state | inviterCloudId                     | inviterDisplayName       |
+      | LOCAL           | room        | 0     | participant1@http://localhost:8080 | participant1-displayname |
+    And user "participant2" accepts invite to room "room" of server "LOCAL" with 200 (v1)
+      | id          | name      | type | remoteServer | remoteToken |
+      | LOCAL::room | room name | 2    | LOCAL        | room        |
+    When user "participant1" sets default permissions for room "room" to "LM" with 200 (v4)
+    Then user "participant2" is participant of room "LOCAL::room" (v4)
+      | defaultPermissions | attendeePermissions | permissions |
+      | CLM                | D                   | CLM         |
+
+  Scenario: set default permissions before federated user accepts invitation
+    Given user "participant1" creates room "room" (v4)
+      | roomType | 2 |
+      | roomName | room name |
+    And user "participant1" adds federated_user "participant2" to room "room" with 200 (v4)
+    And user "participant2" has the following invitations (v1)
+      | remoteServerUrl | remoteToken | state | inviterCloudId                     | inviterDisplayName       |
+      | LOCAL           | room        | 0     | participant1@http://localhost:8080 | participant1-displayname |
+    When user "participant1" sets default permissions for room "room" to "LM" with 200 (v4)
+    And user "participant2" accepts invite to room "room" of server "LOCAL" with 200 (v1)
+      | id          | name      | type | remoteServer | remoteToken |
+      | LOCAL::room | room name | 2    | LOCAL        | room        |
+    Then user "participant2" is participant of room "LOCAL::room" (v4)
+      | defaultPermissions | attendeePermissions | permissions |
+      | CLM                | D                   | CLM         |
+
+  Scenario: set default permissions before inviting federated user
+    Given user "participant1" creates room "room" (v4)
+      | roomType | 2 |
+      | roomName | room name |
+    When user "participant1" sets default permissions for room "room" to "M" with 200 (v4)
+    And user "participant1" adds federated_user "participant2" to room "room" with 200 (v4)
+    And user "participant2" has the following invitations (v1)
+      | remoteServerUrl | remoteToken | state | inviterCloudId                     | inviterDisplayName       |
+      | LOCAL           | room        | 0     | participant1@http://localhost:8080 | participant1-displayname |
+    And user "participant2" accepts invite to room "room" of server "LOCAL" with 200 (v1)
+      | id          | name      | type | remoteServer | remoteToken |
+      | LOCAL::room | room name | 2    | LOCAL        | room        |
+    Then user "participant2" is participant of room "LOCAL::room" (v4)
+      | defaultPermissions | attendeePermissions | permissions |
+      | CM                 | D                   | CM          |
+
+  Scenario: set default permissions before inviting federated user again
+    Given user "participant1" creates room "room" (v4)
+      | roomType | 2 |
+      | roomName | room name |
+    And user "participant1" adds federated_user "participant2" to room "room" with 200 (v4)
+    And user "participant2" has the following invitations (v1)
+      | remoteServerUrl | remoteToken | state | inviterCloudId                     | inviterDisplayName       |
+      | LOCAL           | room        | 0     | participant1@http://localhost:8080 | participant1-displayname |
+    And user "participant2" declines invite to room "room" of server "LOCAL" with 200 (v1)
+    When user "participant1" sets default permissions for room "room" to "M" with 200 (v4)
+    And user "participant1" adds federated_user "participant2" to room "room" with 200 (v4)
+    And user "participant2" has the following invitations (v1)
+      | remoteServerUrl | remoteToken | state | inviterCloudId                     | inviterDisplayName       |
+      | LOCAL           | room        | 0     | participant1@http://localhost:8080 | participant1-displayname |
+    And user "participant2" accepts invite to room "room" of server "LOCAL" with 200 (v1)
+      | id          | name      | type | remoteServer | remoteToken |
+      | LOCAL::room | room name | 2    | LOCAL        | room        |
+    Then user "participant2" is participant of room "LOCAL::room" (v4)
+      | defaultPermissions | attendeePermissions | permissions |
+      | CM                 | D                   | CM          |
+
+  Scenario: set participant permissions after setting conversation permissions and then invite another federated user
+    Given user "participant3" exists
+    And user "participant1" creates room "room" (v4)
+      | roomType | 2 |
+      | roomName | room name |
+    And user "participant1" adds federated_user "participant2" to room "room" with 200 (v4)
+    And user "participant2" has the following invitations (v1)
+      | remoteServerUrl | remoteToken | state | inviterCloudId                     | inviterDisplayName       |
+      | LOCAL           | room        | 0     | participant1@http://localhost:8080 | participant1-displayname |
+    And user "participant2" accepts invite to room "room" of server "LOCAL" with 200 (v1)
+      | id          | name      | type | remoteServer | remoteToken |
+      | LOCAL::room | room name | 2    | LOCAL        | room        |
+    And user "participant1" sets default permissions for room "room" to "AVP" with 200 (v4)
+    And user "participant1" sets permissions for "participant2@{$LOCAL_REMOTE_URL}" in room "room" to "S" with 200 (v4)
+    When user "participant1" adds federated_user "participant3" to room "room" with 200 (v4)
+    And user "participant3" has the following invitations (v1)
+      | remoteServerUrl | remoteToken | state | inviterCloudId                     | inviterDisplayName       |
+      | LOCAL           | room        | 0     | participant1@http://localhost:8080 | participant1-displayname |
+    And user "participant3" accepts invite to room "room" of server "LOCAL" with 200 (v1)
+      | id          | name      | type | remoteServer | remoteToken |
+      | LOCAL::room | room name | 2    | LOCAL        | room        |
+    Then user "participant2" is participant of room "LOCAL::room" (v4)
+      | permissions |
+      | CS          |
+    And user "participant3" is participant of room "LOCAL::room" (v4)
+      | permissions |
+      | CAVP        |
diff --git a/tests/php/Federation/FederationTest.php b/tests/php/Federation/FederationTest.php
index 936f19c3b6f..94c465503e2 100644
--- a/tests/php/Federation/FederationTest.php
+++ b/tests/php/Federation/FederationTest.php
@@ -256,6 +256,7 @@ public function testReceiveRemoteShare(): void {
 		$shareType = 'user';
 		$roomType = Room::TYPE_GROUP;
 		$roomName = 'Room name';
+		$roomDefaultPermissions = Attendee::PERMISSIONS_CUSTOM | Attendee::PERMISSIONS_CHAT;
 
 		$shareWithUser = $this->createMock(IUser::class);
 		$shareWithUserID = '10';
@@ -277,6 +278,7 @@ public function testReceiveRemoteShare(): void {
 			'name' => 'nctalk',
 			'roomType' => $roomType,
 			'roomName' => $roomName,
+			'roomDefaultPermissions' => $roomDefaultPermissions,
 			'options' => [
 				'sharedSecret' => $token,
 			],
@@ -288,7 +290,7 @@ public function testReceiveRemoteShare(): void {
 		// Test receiving federation expectations
 		$this->federationManager->expects($this->once())
 			->method('addRemoteRoom')
-			->with($shareWithUser, $providerId, $roomType, $roomName, $name, $remote, $token)
+			->with($shareWithUser, $providerId, $roomType, $roomName, $roomDefaultPermissions, $name, $remote, $token)
 			->willReturn($invite);
 
 		$this->config->method('isFederationEnabled')