diff --git a/sync2/poller.go b/sync2/poller.go
index cc456a6d..9d2fba93 100644
--- a/sync2/poller.go
+++ b/sync2/poller.go
@@ -10,6 +10,8 @@ import (
 	"sync/atomic"
 	"time"
 
+	"golang.org/x/exp/slices"
+
 	"github.com/getsentry/sentry-go"
 
 	"github.com/matrix-org/sliding-sync/internal"
@@ -791,8 +793,47 @@ func (p *poller) parseRoomsResponse(ctx context.Context, res *SyncResponse) erro
 			stateCalls++
 			prependStateEvents, err := p.receiver.Initialise(ctx, roomID, roomData.State.Events)
 			if err != nil {
-				lastErrs = append(lastErrs, fmt.Errorf("Initialise[%s]: %w", roomID, err))
-				continue
+				_, ok := err.(*internal.DataError)
+				if ok {
+					// This typically happens when we are missing an m.room.create event.
+					// Synapse may sometimes send the m.room.create event erroneously in the timeline,
+					// so check if that is the case here. See https://github.com/matrix-org/complement/pull/690
+					var createEvent json.RawMessage
+					for i, ev := range roomData.Timeline.Events {
+						if gjson.ParseBytes(ev).Get("type").Str == "m.room.create" {
+							createEvent = roomData.Timeline.Events[i]
+							// remove the create event from the timeline so we don't double process it
+							roomData.Timeline.Events = append(roomData.Timeline.Events[:i], roomData.Timeline.Events[i+1:]...)
+							break
+						}
+					}
+					if createEvent != nil {
+						roomData.State.Events = slices.Insert(roomData.State.Events, 0, createEvent)
+						// retry the processing of the room state
+						prependStateEvents, err = p.receiver.Initialise(ctx, roomID, roomData.State.Events)
+						if err == nil {
+							const warnMsg = "parseRoomsResponse: m.room.create event was found in the timeline not state"
+							logger.Warn().Str("user_id", p.userID).Str("room_id", roomID).Int(
+								"timeline", len(roomData.Timeline.Events),
+							).Int("state", len(roomData.State.Events)).Msg(warnMsg)
+							hub := internal.GetSentryHubFromContextOrDefault(ctx)
+							hub.WithScope(func(scope *sentry.Scope) {
+								scope.SetContext(internal.SentryCtxKey, map[string]interface{}{
+									"room_id":  roomID,
+									"timeline": len(roomData.Timeline.Events),
+									"state":    len(roomData.State.Events),
+								})
+								hub.CaptureMessage(warnMsg)
+							})
+						}
+					}
+				}
+				// either err isn't a data error OR we retried Initialise and it still returned an error
+				// either way, give up.
+				if err != nil {
+					lastErrs = append(lastErrs, fmt.Errorf("Initialise[%s]: %w", roomID, err))
+					continue
+				}
 			}
 			if len(prependStateEvents) > 0 {
 				// The poller has just learned of these state events due to an
diff --git a/tests-integration/timeline_test.go b/tests-integration/timeline_test.go
index 09be482f..72c7316b 100644
--- a/tests-integration/timeline_test.go
+++ b/tests-integration/timeline_test.go
@@ -6,8 +6,11 @@ import (
 	"testing"
 	"time"
 
+	"github.com/jmoiron/sqlx"
 	slidingsync "github.com/matrix-org/sliding-sync"
 
+	"github.com/matrix-org/sliding-sync/sqlutil"
+	"github.com/matrix-org/sliding-sync/state"
 	"github.com/matrix-org/sliding-sync/sync2"
 	"github.com/matrix-org/sliding-sync/sync3"
 	"github.com/matrix-org/sliding-sync/testutils"
@@ -1335,3 +1338,69 @@ func TestNumLiveBulk(t *testing.T) {
 		},
 	))
 }
+
+// Regression test for a thing which Synapse can sometimes send down sync v2.
+// See https://github.com/matrix-org/sliding-sync/issues/367
+// This would cause this room to not be processed at all, which is bad.
+func TestSeeCreateEvent(t *testing.T) {
+	// setup code
+	pqString := testutils.PrepareDBConnectionString()
+	db, err := sqlx.Open("postgres", pqString)
+	if err != nil {
+		t.Fatalf("failed to open postgres: %s", err)
+	}
+	v2 := runTestV2Server(t)
+	v3 := runTestServer(t, v2, pqString)
+	defer v2.close()
+	defer v3.close()
+
+	roomID := "!TestSeeCreateEvent:localhost"
+	userID := "@TestSeeCreateEvent:localhost"
+	token := "TestSeeCreateEvent_TOKEN"
+	v2.addAccount(t, userID, token)
+	v2.queueResponse(userID, sync2.SyncResponse{
+		Rooms: sync2.SyncRoomsResponse{
+			Join: map[string]sync2.SyncV2JoinResponse{
+				roomID: {
+					State: sync2.EventsResponse{
+						Events: []json.RawMessage{
+							testutils.NewStateEvent(t, "m.room.join_rules", "", "@someone:somewhere", map[string]interface{}{"join_rule": "invite"}),
+							testutils.NewStateEvent(t, "m.room.power_levels", "", "@someone:somewhere", map[string]interface{}{"users_default": 0}),
+							testutils.NewStateEvent(t, "m.room.history_visibility", "", "@someone:somewhere", map[string]interface{}{"history_visibility": "shared"}),
+						},
+					},
+					Timeline: sync2.TimelineResponse{
+						Events: []json.RawMessage{
+							testutils.NewStateEvent(t, "m.room.create", "", "@someone:somewhere", map[string]interface{}{"room_version": "10"}),
+							testutils.NewJoinEvent(t, "@someone:somewhere"),
+							testutils.NewJoinEvent(t, "@someone2:somewhere"),
+						},
+					},
+				},
+			},
+		},
+	})
+	v3.mustDoV3Request(t, token, sync3.Request{})
+	// ensure the room exists
+	roomsTable := state.NewRoomsTable(db)
+	err = sqlutil.WithTransaction(db, func(txn *sqlx.Tx) error {
+		nids, err := roomsTable.LatestNIDs(txn, []string{roomID})
+		if err != nil {
+			t.Fatalf("LatestNIDs: %s", err)
+		}
+		if len(nids) != 1 {
+			t.Fatalf("LatestNIDs missing: %+v", nids)
+		}
+		nid, ok := nids[roomID]
+		if !ok {
+			t.Fatalf("LatestNIDs missing room %s : %+v", roomID, nids)
+		}
+		if nid == 0 {
+			t.Fatalf("LatestNIDs 0 nid for room %s", roomID)
+		}
+		return nil
+	})
+	if err != nil {
+		t.Fatalf("WithTransaction: %s", err)
+	}
+}