diff --git a/src/room/InCallView.tsx b/src/room/InCallView.tsx
index 1c8b41e9..3d7ce8db 100644
--- a/src/room/InCallView.tsx
+++ b/src/room/InCallView.tsx
@@ -60,7 +60,7 @@ import { useRageshakeRequestModal } from "../settings/submit-rageshake";
 import { RageshakeRequestModal } from "./RageshakeRequestModal";
 import { useWakeLock } from "../useWakeLock";
 import { useMergedRefs } from "../useMergedRefs";
-import { type MuteStates } from "./MuteStates";
+import { type MuteStates } from "../state/MuteStates";
 import { type MatrixInfo } from "./VideoPreview";
 import { InviteButton } from "../button/InviteButton";
 import { LayoutToggle } from "./LayoutToggle";
@@ -143,6 +143,7 @@ export const ActiveCall: FC<ActiveCallProps> = (props) => {
       props.rtcSession,
       props.matrixRoom,
       mediaDevices,
+      props.muteStates,
       {
         encryptionSystem: props.e2eeSystem,
         autoLeaveWhenOthersLeft,
@@ -161,6 +162,7 @@ export const ActiveCall: FC<ActiveCallProps> = (props) => {
     props.rtcSession,
     props.matrixRoom,
     mediaDevices,
+    props.muteStates,
     props.e2eeSystem,
     autoLeaveWhenOthersLeft,
     sendNotificationType,
@@ -265,22 +267,19 @@ export const InCallView: FC<InCallViewProps> = ({
     ],
   );
 
-  const toggleMicrophone = useCallback(
-    () => muteStates.audio.setEnabled?.((e) => !e),
-    [muteStates],
-  );
-  const toggleCamera = useCallback(
-    () => muteStates.video.setEnabled?.((e) => !e),
-    [muteStates],
-  );
+  const audioEnabled = useBehavior(muteStates.audio.enabled$);
+  const videoEnabled = useBehavior(muteStates.video.enabled$);
+  const toggleAudio = useBehavior(muteStates.audio.toggle$);
+  const toggleVideo = useBehavior(muteStates.video.toggle$);
+  const setAudioEnabled = useBehavior(muteStates.audio.setEnabled$);
 
   // This function incorrectly assumes that there is a camera and microphone, which is not always the case.
   // TODO: Make sure that this module is resilient when it comes to camera/microphone availability!
   useCallViewKeyboardShortcuts(
     containerRef1,
-    toggleMicrophone,
-    toggleCamera,
-    (muted) => muteStates.audio.setEnabled?.(!muted),
+    toggleAudio,
+    toggleVideo,
+    setAudioEnabled,
     (reaction) => void sendReaction(reaction),
     () => void toggleRaisedHand(),
   );
@@ -764,18 +763,18 @@ export const InCallView: FC<InCallViewProps> = ({
   buttons.push(
     <MicButton
       key="audio"
-      muted={!muteStates.audio.enabled}
-      onClick={toggleMicrophone}
+      muted={!audioEnabled}
+      onClick={toggleAudio ?? undefined}
       onTouchEnd={onControlsTouchEnd}
-      disabled={muteStates.audio.setEnabled === null}
+      disabled={toggleAudio === null}
       data-testid="incall_mute"
     />,
     <VideoButton
       key="video"
-      muted={!muteStates.video.enabled}
-      onClick={toggleCamera}
+      muted={!videoEnabled}
+      onClick={toggleVideo ?? undefined}
       onTouchEnd={onControlsTouchEnd}
-      disabled={muteStates.video.setEnabled === null}
+      disabled={toggleVideo === null}
       data-testid="incall_videomute"
     />,
   );
diff --git a/src/room/LobbyView.tsx b/src/room/LobbyView.tsx
index 391cb391..057c1206 100644
--- a/src/room/LobbyView.tsx
+++ b/src/room/LobbyView.tsx
@@ -31,7 +31,7 @@ import inCallStyles from "./InCallView.module.css";
 import styles from "./LobbyView.module.css";
 import { Header, LeftNav, RightNav, RoomHeaderInfo } from "../Header";
 import { type MatrixInfo, VideoPreview } from "./VideoPreview";
-import { type MuteStates } from "./MuteStates";
+import { type MuteStates } from "../state/MuteStates";
 import { InviteButton } from "../button/InviteButton";
 import {
   EndCallButton,
@@ -50,8 +50,8 @@ import {
   useTrackProcessorSync,
 } from "../livekit/TrackProcessorContext";
 import { usePageTitle } from "../usePageTitle";
-import { useLatest } from "../useLatest";
 import { getValue } from "../utils/observable";
+import { useBehavior } from "../useBehavior";
 
 interface Props {
   client: MatrixClient;
@@ -88,14 +88,10 @@ export const LobbyView: FC<Props> = ({
   const { t } = useTranslation();
   usePageTitle(matrixInfo.roomName);
 
-  const onAudioPress = useCallback(
-    () => muteStates.audio.setEnabled?.((e) => !e),
-    [muteStates],
-  );
-  const onVideoPress = useCallback(
-    () => muteStates.video.setEnabled?.((e) => !e),
-    [muteStates],
-  );
+  const audioEnabled = useBehavior(muteStates.audio.enabled$);
+  const videoEnabled = useBehavior(muteStates.video.enabled$);
+  const toggleAudio = useBehavior(muteStates.audio.toggle$);
+  const toggleVideo = useBehavior(muteStates.video.toggle$);
 
   const [settingsModalOpen, setSettingsModalOpen] = useState(false);
   const [settingsTab, setSettingsTab] = useState(defaultSettingsTab);
@@ -133,7 +129,7 @@ export const LobbyView: FC<Props> = ({
   // re-open the devices when they change (see below).
   const initialAudioOptions = useInitial(
     () =>
-      muteStates.audio.enabled && {
+      audioEnabled && {
         deviceId: getValue(devices.audioInput.selected$)?.id,
       },
   );
@@ -150,27 +146,21 @@ export const LobbyView: FC<Props> = ({
       // We also pass in a clone because livekit mutates the object passed in,
       // which would cause the devices to be re-opened on the next render.
       audio: Object.assign({}, initialAudioOptions),
-      video: muteStates.video.enabled && {
+      video: videoEnabled && {
         deviceId: videoInputId,
         processor: initialProcessor,
       },
     }),
-    [
-      initialAudioOptions,
-      muteStates.video.enabled,
-      videoInputId,
-      initialProcessor,
-    ],
+    [initialAudioOptions, videoEnabled, videoInputId, initialProcessor],
   );
 
-  const latestMuteStates = useLatest(muteStates);
   const onError = useCallback(
     (error: Error) => {
       logger.error("Error while creating preview Tracks:", error);
-      latestMuteStates.current.audio.setEnabled?.(false);
-      latestMuteStates.current.video.setEnabled?.(false);
+      muteStates.audio.setEnabled$.value?.(false);
+      muteStates.video.setEnabled$.value?.(false);
     },
-    [latestMuteStates],
+    [muteStates],
   );
 
   const tracks = usePreviewTracks(localTrackOptions, onError);
@@ -217,7 +207,7 @@ export const LobbyView: FC<Props> = ({
         <div className={styles.content}>
           <VideoPreview
             matrixInfo={matrixInfo}
-            muteStates={muteStates}
+            videoEnabled={videoEnabled}
             videoTrack={videoTrack}
           >
             <Button
@@ -239,14 +229,14 @@ export const LobbyView: FC<Props> = ({
           {recentsButtonInFooter && recentsButton}
           <div className={inCallStyles.buttons}>
             <MicButton
-              muted={!muteStates.audio.enabled}
-              onClick={onAudioPress}
-              disabled={muteStates.audio.setEnabled === null}
+              muted={!audioEnabled}
+              onClick={toggleAudio ?? undefined}
+              disabled={toggleAudio === null}
             />
             <VideoButton
-              muted={!muteStates.video.enabled}
-              onClick={onVideoPress}
-              disabled={muteStates.video.setEnabled === null}
+              muted={!videoEnabled}
+              onClick={toggleVideo ?? undefined}
+              disabled={toggleVideo === null}
             />
             <SettingsButton onClick={openSettings} />
             {!confineToRoom && <EndCallButton onClick={onLeaveClick} />}
diff --git a/src/room/VideoPreview.tsx b/src/room/VideoPreview.tsx
index a7e7cd9c..3efcaba1 100644
--- a/src/room/VideoPreview.tsx
+++ b/src/room/VideoPreview.tsx
@@ -13,7 +13,6 @@ import { useTranslation } from "react-i18next";
 
 import { TileAvatar } from "../tile/TileAvatar";
 import styles from "./VideoPreview.module.css";
-import { type MuteStates } from "./MuteStates";
 import { type EncryptionSystem } from "../e2ee/sharedKeyManagement";
 
 export type MatrixInfo = {
@@ -29,14 +28,14 @@ export type MatrixInfo = {
 
 interface Props {
   matrixInfo: MatrixInfo;
-  muteStates: MuteStates;
+  videoEnabled: boolean;
   videoTrack: LocalVideoTrack | null;
   children: ReactNode;
 }
 
 export const VideoPreview: FC<Props> = ({
   matrixInfo,
-  muteStates,
+  videoEnabled,
   videoTrack,
   children,
 }) => {
@@ -56,8 +55,8 @@ export const VideoPreview: FC<Props> = ({
   }, [videoTrack]);
 
   const cameraIsStarting = useMemo(
-    () => muteStates.video.enabled && !videoTrack,
-    [muteStates.video.enabled, videoTrack],
+    () => videoEnabled && !videoTrack,
+    [videoEnabled, videoTrack],
   );
 
   return (
@@ -76,7 +75,7 @@ export const VideoPreview: FC<Props> = ({
         tabIndex={-1}
         disablePictureInPicture
       />
-      {(!muteStates.video.enabled || cameraIsStarting) && (
+      {(!videoEnabled || cameraIsStarting) && (
         <>
           <div className={styles.avatarContainer}>
             {cameraIsStarting && (
diff --git a/src/state/CallViewModel.ts b/src/state/CallViewModel.ts
index b5112e5e..a37891c3 100644
--- a/src/state/CallViewModel.ts
+++ b/src/state/CallViewModel.ts
@@ -34,6 +34,7 @@ import {
   Subject,
   combineLatest,
   concat,
+  concatMap,
   distinctUntilChanged,
   endWith,
   filter,
@@ -121,6 +122,7 @@ import { E2eeType } from "../e2ee/e2eeType";
 import { MatrixKeyProvider } from "../e2ee/matrixKeyProvider";
 import { type ECConnectionState } from "../livekit/useECConnectionState";
 import { Connection, PublishConnection } from "./Connection";
+import { type MuteStates } from "./MuteStates";
 
 export interface CallViewModelOptions {
   encryptionSystem: EncryptionSystem;
@@ -447,6 +449,7 @@ export class CallViewModel extends ViewModel {
         this.scope,
         this.membershipsAndFocusMap$,
         this.mediaDevices,
+        this.muteStates,
         this.livekitE2EERoomOptions,
       ),
   );
@@ -536,6 +539,14 @@ export class CallViewModel extends ViewModel {
 
       return { start, stop };
     }),
+    this.scope.share,
+  );
+
+  private readonly startConnection$ = this.connectionInstructions$.pipe(
+    concatMap(({ start }) => start),
+  );
+  private readonly stopConnection$ = this.connectionInstructions$.pipe(
+    concatMap(({ stop }) => stop),
   );
 
   private readonly userId = this.matrixRoom.client.getUserId();
@@ -623,15 +634,15 @@ export class CallViewModel extends ViewModel {
     ),
   );
 
-  private readonly participants$ = this.scope
-    .behavior<
-      {
-        participant: LocalParticipant | RemoteParticipant;
-        member: RoomMember;
-        livekitRoom: LivekitRoom;
-      }[]
-    >(
-      from(this.localConnection).pipe(
+  private readonly participants$ = this.scope.behavior<
+    {
+      participant: LocalParticipant | RemoteParticipant;
+      member: RoomMember;
+      livekitRoom: LivekitRoom;
+    }[]
+  >(
+    from(this.localConnection)
+      .pipe(
         switchMap((localConnection) => {
           const memberError = (): never => {
             throw new Error("No room member for call membership");
@@ -645,7 +656,7 @@ export class CallViewModel extends ViewModel {
           return this.remoteConnections$.pipe(
             switchMap((connections) =>
               combineLatest(
-                [...connections.values()].map((c) =>
+                [localConnection, ...connections.values()].map((c) =>
                   c.publishingParticipants$.pipe(
                     map((ps) =>
                       ps.map(({ participant, membership }) => ({
@@ -663,14 +674,14 @@ export class CallViewModel extends ViewModel {
               ),
             ),
             map((remoteParticipants) => [
-              ...remoteParticipants.flat(1),
               localParticipant,
+              ...remoteParticipants.flat(1),
             ]),
           );
         }),
-      ),
-    )
-    .pipe(startWith([]), pauseWhen(this.pretendToBeDisconnected$));
+      )
+      .pipe(startWith([]), pauseWhen(this.pretendToBeDisconnected$)),
+  );
 
   /**
    * Displaynames for each member of the call. This will disambiguate
@@ -681,18 +692,23 @@ export class CallViewModel extends ViewModel {
   // than on Chrome/Firefox). This means it is important that we multicast the result so that we
   // don't do this work more times than we need to. This is achieved by converting to a behavior:
   public readonly memberDisplaynames$ = this.scope.behavior(
-    // React to call memberships and also display name updates
-    // (calculateDisplayName implicitly depends on the room member data)
-    combineLatest(
-      [
-        this.memberships$,
-        fromEvent(this.matrixRoom, RoomStateEvent.Members).pipe(
-          startWith(null),
-          pauseWhen(this.pretendToBeDisconnected$),
-        ),
-      ],
-      (memberships, _members) => {
-        const displaynameMap = new Map<string, string>();
+    merge(
+      // Handle call membership changes.
+      fromEvent(
+        this.matrixRTCSession,
+        MatrixRTCSessionEvent.MembershipsChanged,
+      ),
+      // Handle room membership changes (and displayname updates)
+      fromEvent(this.matrixRoom, RoomStateEvent.Members),
+      // TODO: do we need: pauseWhen(this.pretendToBeDisconnected$),
+
+    ).pipe(
+      startWith(null),
+      map(() => {
+        const memberships = this.matrixRTCSession.memberships;
+        const displaynameMap = new Map<string, string>([
+          ["local", this.matrixRoom.getMember(this.userId!)!.rawDisplayName],
+        ]);
         const room = this.matrixRoom;
 
         // We only consider RTC members for disambiguation as they are the only visible members.
@@ -1753,6 +1769,7 @@ export class CallViewModel extends ViewModel {
     private readonly matrixRTCSession: MatrixRTCSession,
     private readonly matrixRoom: MatrixRoom,
     private readonly mediaDevices: MediaDevices,
+    private readonly muteStates: MuteStates,
     private readonly options: CallViewModelOptions,
     private readonly handsRaisedSubject$: Observable<
       Record<string, RaisedHandInfo>
@@ -1774,12 +1791,12 @@ export class CallViewModel extends ViewModel {
             // eslint-disable-next-line no-console
             .catch((e) => console.error("failed to start publishing", e)),
       );
-    this.connectionInstructions$
+
+    this.startConnection$
       .pipe(this.scope.bind())
-      .subscribe(({ start, stop }) => {
-        for (const connection of start) void connection.start();
-        for (const connection of stop) connection.stop();
-      });
+      .subscribe((c) => void c.start());
+    this.stopConnection$.pipe(this.scope.bind()).subscribe((c) => c.stop());
+
     combineLatest([this.localFocus, this.join$])
       .pipe(this.scope.bind())
       .subscribe(([localFocus]) => {
@@ -1789,6 +1806,7 @@ export class CallViewModel extends ViewModel {
           this.options.encryptionSystem.kind !== E2eeType.PER_PARTICIPANT,
         );
       });
+
     this.join$.pipe(this.scope.bind()).subscribe(() => {
       leaveRTCSession(
         this.matrixRTCSession,
@@ -1861,6 +1879,7 @@ function getE2eeOptions(
   e2eeSystem: EncryptionSystem,
   rtcSession: MatrixRTCSession,
 ): E2EEOptions | undefined {
+  return undefined;
   if (e2eeSystem.kind === E2eeType.NONE) return undefined;
 
   if (e2eeSystem.kind === E2eeType.PER_PARTICIPANT) {
diff --git a/src/state/Connection.ts b/src/state/Connection.ts
index 700ee4ef..4f9721ea 100644
--- a/src/state/Connection.ts
+++ b/src/state/Connection.ts
@@ -6,13 +6,14 @@ SPDX-License-Identifier: AGPL-3.0-only OR LicenseRef-Element-Commercial
 Please see LICENSE in the repository root for full details.
 */
 
-import { connectedParticipantsObserver } from "@livekit/components-core";
+import {
+  connectedParticipantsObserver,
+  connectionStateObserver,
+} from "@livekit/components-core";
 import {
   ConnectionState,
   Room as LivekitRoom,
-  type RoomOptions,
   type E2EEOptions,
-  RoomEvent,
   Track,
 } from "livekit-client";
 import { type MatrixClient } from "matrix-js-sdk";
@@ -21,10 +22,7 @@ import {
   type CallMembership,
 } from "matrix-js-sdk/lib/matrixrtc";
 import {
-  BehaviorSubject,
   combineLatest,
-  filter,
-  fromEvent,
   map,
   NEVER,
   type Observable,
@@ -35,12 +33,12 @@ import { logger } from "matrix-js-sdk/lib/logger";
 
 import { type SelectedDevice, type MediaDevices } from "./MediaDevices";
 import { getSFUConfigWithOpenID } from "../livekit/openIDSFU";
-import { constant, type Behavior } from "./Behavior";
+import { type Behavior } from "./Behavior";
 import { type ObservableScope } from "./ObservableScope";
 import { defaultLiveKitOptions } from "../livekit/options";
 import { getValue } from "../utils/observable";
 import { getUrlParams } from "../UrlParams";
-import { type MuteStates } from "../room/MuteStates";
+import { type MuteStates } from "./MuteStates";
 
 export class Connection {
   protected stopped = false;
@@ -64,7 +62,7 @@ export class Connection {
 
   public readonly participantsIncludingSubscribers$;
   public readonly publishingParticipants$;
-  public livekitRoom: LivekitRoom;
+  public readonly livekitRoom: LivekitRoom;
 
   public connectionState$: Behavior<ConnectionState>;
   public constructor(
@@ -76,11 +74,14 @@ export class Connection {
       { membership: CallMembership; focus: LivekitFocus }[]
     >,
     e2eeLivekitOptions: E2EEOptions | undefined,
+    livekitRoom: LivekitRoom | undefined = undefined,
   ) {
-    this.livekitRoom = new LivekitRoom({
-      ...defaultLiveKitOptions,
-      e2ee: e2eeLivekitOptions,
-    });
+    this.livekitRoom =
+      livekitRoom ??
+      new LivekitRoom({
+        ...defaultLiveKitOptions,
+        e2ee: e2eeLivekitOptions,
+      });
     this.participantsIncludingSubscribers$ = this.scope.behavior(
       connectedParticipantsObserver(this.livekitRoom),
       [],
@@ -112,10 +113,7 @@ export class Connection {
       [],
     );
     this.connectionState$ = this.scope.behavior<ConnectionState>(
-      fromEvent<ConnectionState>(
-        this.livekitRoom,
-        RoomEvent.ConnectionStateChanged,
-      ),
+      connectionStateObserver(this.livekitRoom),
     );
   }
 }
@@ -128,8 +126,8 @@ export class PublishConnection extends Connection {
 
     if (!this.stopped) {
       const tracks = await this.livekitRoom.localParticipant.createTracks({
-        audio: true,
-        video: true,
+        audio: this.muteStates.audio.enabled$.value,
+        video: this.muteStates.video.enabled$.value,
       });
       for (const track of tracks) {
         await this.livekitRoom.localParticipant.publishTrack(track);
@@ -142,53 +140,32 @@ export class PublishConnection extends Connection {
     this.stopped = true;
   }
 
-  public readonly participantsIncludingSubscribers$ = this.scope.behavior(
-    connectedParticipantsObserver(this.livekitRoom),
-    [],
-  );
-  private readonly muteStates$: Behavior<MuteStates>;
-  private updatingMuteStates$ = new BehaviorSubject(false);
-
   public constructor(
-    protected readonly focus: LivekitFocus,
-    protected readonly livekitAlias: string,
-    protected readonly client: MatrixClient,
-    protected readonly scope: ObservableScope,
-    protected readonly membershipsFocusMap$: Behavior<
+    focus: LivekitFocus,
+    livekitAlias: string,
+    client: MatrixClient,
+    scope: ObservableScope,
+    membershipsFocusMap$: Behavior<
       { membership: CallMembership; focus: LivekitFocus }[]
     >,
-    protected readonly devices: MediaDevices,
+    devices: MediaDevices,
+    private readonly muteStates: MuteStates,
     e2eeLivekitOptions: E2EEOptions | undefined,
   ) {
-    super(
-      focus,
-      livekitAlias,
-      client,
-      scope,
-      membershipsFocusMap$,
-      e2eeLivekitOptions,
-    );
-
-    // TODO-MULTI-SFU use actual mute states
-    this.muteStates$ = constant({
-      audio: { enabled: true, setEnabled: (enabled) => {} },
-      video: { enabled: true, setEnabled: (enabled) => {} },
-    });
-
     logger.info("[LivekitRoom] Create LiveKit room");
     const { controlledAudioDevices } = getUrlParams();
 
-    const roomOptions: RoomOptions = {
+    const room = new LivekitRoom({
       ...defaultLiveKitOptions,
       videoCaptureDefaults: {
         ...defaultLiveKitOptions.videoCaptureDefaults,
-        deviceId: getValue(this.devices.videoInput.selected$)?.id,
+        deviceId: devices.videoInput.selected$.value?.id,
         // TODO-MULTI-SFU add processor support back
         // processor,
       },
       audioCaptureDefaults: {
         ...defaultLiveKitOptions.audioCaptureDefaults,
-        deviceId: getValue(devices.audioInput.selected$)?.id,
+        deviceId: devices.audioInput.selected$.value?.id,
       },
       audioOutput: {
         // When using controlled audio devices, we don't want to set the
@@ -199,150 +176,38 @@ export class PublishConnection extends Connection {
           : getValue(devices.audioOutput.selected$)?.id,
       },
       e2ee: e2eeLivekitOptions,
-    };
-    // We have to create the room manually here due to a bug inside
-    // @livekit/components-react. JSON.stringify() is used in deps of a
-    // useEffect() with an argument that references itself, if E2EE is enabled
-    const room = new LivekitRoom(roomOptions);
+    });
     room.setE2EEEnabled(e2eeLivekitOptions !== undefined).catch((e) => {
       logger.error("Failed to set E2EE enabled on room", e);
     });
-    this.livekitRoom = room;
 
-    // sync mute states TODO-MULTI_SFU This possibly can be simplified quite a bit.
-    combineLatest([
-      this.connectionState$,
-      this.muteStates$,
-      this.updatingMuteStates$,
-    ])
-      .pipe(
-        filter(([_c, _m, updating]) => !updating),
-        this.scope.bind(),
-      )
-      .subscribe(([connectionState, muteStates, _]) => {
-        // Sync the requested mute states with LiveKit's mute states. We do it this
-        // way around rather than using LiveKit as the source of truth, so that the
-        // states can be consistent throughout the lobby and loading screens.
-        // It's important that we only do this in the connected state, because
-        // LiveKit's internal mute states aren't consistent during connection setup,
-        // and setting tracks to be enabled during this time causes errors.
-        if (
-          this.livekitRoom !== undefined &&
-          connectionState === ConnectionState.Connected
-        ) {
-          const participant = this.livekitRoom.localParticipant;
+    super(
+      focus,
+      livekitAlias,
+      client,
+      scope,
+      membershipsFocusMap$,
+      e2eeLivekitOptions,
+      room,
+    );
 
-          enum MuteDevice {
-            Microphone,
-            Camera,
-          }
-
-          const syncMuteState = async (
-            iterCount: number,
-            type: MuteDevice,
-          ): Promise<void> => {
-            // The approach for muting is to always bring the actual livekit state in sync with the button
-            // This allows for a very predictable and reactive behavior for the user.
-            // (the new state is the old state when pressing the button n times (where n is even))
-            // (the new state is different to the old state when pressing the button n times (where n is uneven))
-            // In case there are issues with the device there might be situations where setMicrophoneEnabled/setCameraEnabled
-            // return immediately. This should be caught with the Error("track with new mute state could not be published").
-            // For now we are still using an iterCount to limit the recursion loop to 10.
-            // This could happen if the device just really does not want to turn on (hardware based issue)
-            // but the mute button is in unmute state.
-            // For now our fail mode is to just stay in this state.
-            // TODO: decide for a UX on how that fail mode should be treated (disable button, hide button, sync button back to muted without user input)
-
-            if (iterCount > 10) {
-              logger.error(
-                "Stop trying to sync the input device with current mute state after 10 failed tries",
-              );
-              return;
-            }
-            let devEnabled;
-            let btnEnabled;
-            switch (type) {
-              case MuteDevice.Microphone:
-                devEnabled = participant.isMicrophoneEnabled;
-                btnEnabled = muteStates.audio.enabled;
-                break;
-              case MuteDevice.Camera:
-                devEnabled = participant.isCameraEnabled;
-                btnEnabled = muteStates.video.enabled;
-                break;
-            }
-            if (devEnabled !== btnEnabled && !this.updatingMuteStates$.value) {
-              this.updatingMuteStates$.next(true);
-
-              try {
-                let trackPublication;
-                switch (type) {
-                  case MuteDevice.Microphone:
-                    trackPublication = await participant.setMicrophoneEnabled(
-                      btnEnabled,
-                      this.livekitRoom.options.audioCaptureDefaults,
-                    );
-                    break;
-                  case MuteDevice.Camera:
-                    trackPublication = await participant.setCameraEnabled(
-                      btnEnabled,
-                      this.livekitRoom.options.videoCaptureDefaults,
-                    );
-                    break;
-                }
-
-                if (trackPublication) {
-                  // await participant.setMicrophoneEnabled can return immediately in some instances,
-                  // so that participant.isMicrophoneEnabled !== buttonEnabled.current.audio still holds true.
-                  // This happens if the device is still in a pending state
-                  // "sleeping" here makes sure we let react do its thing so that participant.isMicrophoneEnabled is updated,
-                  // so we do not end up in a recursion loop.
-                  await new Promise((r) => setTimeout(r, 100));
-
-                  // track got successfully changed to mute/unmute
-                  // Run the check again after the change is done. Because the user
-                  // can update the state (presses mute button) while the device is enabling
-                  // itself we need might need to update the mute state right away.
-                  // This async recursion makes sure that setCamera/MicrophoneEnabled is
-                  // called as little times as possible.
-                  await syncMuteState(iterCount + 1, type);
-                } else {
-                  throw new Error(
-                    "track with new mute state could not be published",
-                  );
-                }
-              } catch (e) {
-                if ((e as DOMException).name === "NotAllowedError") {
-                  logger.error(
-                    "Fatal error while syncing mute state: resetting",
-                    e,
-                  );
-                  if (type === MuteDevice.Microphone) {
-                    muteStates.audio.setEnabled?.(false);
-                  } else {
-                    muteStates.video.setEnabled?.(false);
-                  }
-                } else {
-                  logger.error(
-                    "Failed to sync audio mute state with LiveKit (will retry to sync in 1s):",
-                    e,
-                  );
-                  setTimeout(() => {
-                    this.updatingMuteStates$.next(false);
-                  }, 1000);
-                }
-              }
-            }
-          };
-
-          syncMuteState(0, MuteDevice.Microphone).catch((e) => {
-            logger.error("Failed to sync audio mute state with LiveKit", e);
-          });
-          syncMuteState(0, MuteDevice.Camera).catch((e) => {
-            logger.error("Failed to sync video mute state with LiveKit", e);
-          });
-        }
-      });
+    this.muteStates.audio.setHandler(async (desired) => {
+      try {
+        await this.livekitRoom.localParticipant.setMicrophoneEnabled(desired);
+      } catch (e) {
+        logger.error("Failed to update LiveKit audio input mute state", e);
+      }
+      return this.livekitRoom.localParticipant.isMicrophoneEnabled;
+    });
+    this.muteStates.video.setHandler(async (desired) => {
+      try {
+        await this.livekitRoom.localParticipant.setCameraEnabled(desired);
+      } catch (e) {
+        logger.error("Failed to update LiveKit video input mute state", e);
+      }
+      return this.livekitRoom.localParticipant.isCameraEnabled;
+    });
+    // TODO-MULTI-SFU: Unset mute state handlers on destroy
 
     const syncDevice = (
       kind: MediaDeviceKind,
diff --git a/src/state/MuteStates.ts b/src/state/MuteStates.ts
index 4ac095b0..c93e88d8 100644
--- a/src/state/MuteStates.ts
+++ b/src/state/MuteStates.ts
@@ -8,12 +8,14 @@ Please see LICENSE in the repository root for full details.
 import { type IWidgetApiRequest } from "matrix-widget-api";
 import { logger } from "matrix-js-sdk/lib/logger";
 import {
+  BehaviorSubject,
   combineLatest,
   distinctUntilChanged,
+  firstValueFrom,
   fromEvent,
   map,
   merge,
-  type Observable,
+  Observable,
   of,
   Subject,
   switchMap,
@@ -25,7 +27,6 @@ import { ElementWidgetActions, widget } from "../widget";
 import { Config } from "../config/Config";
 import { getUrlParams } from "../UrlParams";
 import { type ObservableScope } from "./ObservableScope";
-import { accumulate } from "../utils/observable";
 import { type Behavior } from "./Behavior";
 
 interface MuteStateData {
@@ -34,12 +35,25 @@ interface MuteStateData {
   toggle: (() => void) | null;
 }
 
+export type Handler = (desired: boolean) => Promise<boolean>;
+const defaultHandler: Handler = async (desired) => Promise.resolve(desired);
+
 class MuteState<Label, Selected> {
   private readonly enabledByDefault$ =
     this.enabledByConfig && !getUrlParams().skipLobby
       ? this.joined$.pipe(map((isJoined) => !isJoined))
       : of(false);
 
+  private readonly handler$ = new BehaviorSubject(defaultHandler);
+  public setHandler(handler: Handler): void {
+    if (this.handler$.value !== defaultHandler)
+      throw new Error("Multiple mute state handlers are not supported");
+    this.handler$.next(handler);
+  }
+  public unsetHandler(): void {
+    this.handler$.next(defaultHandler);
+  }
+
   private readonly data$ = this.scope.behavior<MuteStateData>(
     this.device.available$.pipe(
       map((available) => available.size > 0),
@@ -50,20 +64,49 @@ class MuteState<Label, Selected> {
           if (!devicesConnected)
             return { enabled$: of(false), set: null, toggle: null };
 
+          // Assume the default value only once devices are actually connected
+          let enabled = enabledByDefault;
           const set$ = new Subject<boolean>();
           const toggle$ = new Subject<void>();
+          const desired$ = merge(set$, toggle$.pipe(map(() => !enabled)));
+          const enabled$ = new Observable<boolean>((subscriber) => {
+            subscriber.next(enabled);
+            let latestDesired = enabledByDefault;
+            let syncing = false;
+
+            const sync = async (): Promise<void> => {
+              if (enabled === latestDesired) syncing = false;
+              else {
+                const previouslyEnabled = enabled;
+                enabled = await firstValueFrom(
+                  this.handler$.pipe(
+                    switchMap(async (handler) => handler(latestDesired)),
+                  ),
+                );
+                if (enabled === previouslyEnabled) {
+                  syncing = false;
+                } else {
+                  subscriber.next(enabled);
+                  syncing = true;
+                  sync();
+                }
+              }
+            };
+
+            const s = desired$.subscribe((desired) => {
+              latestDesired = desired;
+              if (syncing === false) {
+                syncing = true;
+                sync();
+              }
+            });
+            return (): void => s.unsubscribe();
+          });
+
           return {
             set: (enabled: boolean): void => set$.next(enabled),
             toggle: (): void => toggle$.next(),
-            // Assume the default value only once devices are actually connected
-            enabled$: merge(
-              set$,
-              toggle$.pipe(map(() => "toggle" as const)),
-            ).pipe(
-              accumulate(enabledByDefault, (prev, update) =>
-                update === "toggle" ? !prev : update,
-              ),
-            ),
+            enabled$,
           };
         },
       ),
diff --git a/src/state/ObservableScope.ts b/src/state/ObservableScope.ts
index 14a470b5..1cddfbff 100644
--- a/src/state/ObservableScope.ts
+++ b/src/state/ObservableScope.ts
@@ -9,6 +9,7 @@ import {
   BehaviorSubject,
   distinctUntilChanged,
   type Observable,
+  share,
   Subject,
   takeUntil,
 } from "rxjs";
@@ -35,6 +36,12 @@ export class ObservableScope {
     return this.bindImpl;
   }
 
+  private readonly shareImpl: MonoTypeOperator = share({ resetOnError: false, resetOnComplete: false, resetOnRefCountZero: false })
+  /**
+   * Shares (multicasts) the Observable as a hot Observable.
+   */
+  public readonly share: MonoTypeOperator = (input$) => input$.pipe(this.bindImpl, this.shareImpl)
+
   /**
    * Converts an Observable to a Behavior. If no initial value is specified, the
    * Observable must synchronously emit an initial value.
diff --git a/src/useCallViewKeyboardShortcuts.ts b/src/useCallViewKeyboardShortcuts.ts
index 35cadaf5..728a2614 100644
--- a/src/useCallViewKeyboardShortcuts.ts
+++ b/src/useCallViewKeyboardShortcuts.ts
@@ -29,9 +29,9 @@ const KeyToReactionMap: Record<string, ReactionOption> = Object.fromEntries(
 
 export function useCallViewKeyboardShortcuts(
   focusElement: RefObject<HTMLElement | null>,
-  toggleMicrophoneMuted: () => void,
-  toggleLocalVideoMuted: () => void,
-  setMicrophoneMuted: (muted: boolean) => void,
+  toggleAudio: (() => void) | null,
+  toggleVideo: (() => void) | null,
+  setAudioEnabled: ((enabled: boolean) => void) | null,
   sendReaction: (reaction: ReactionOption) => void,
   toggleHandRaised: () => void,
 ): void {
@@ -52,15 +52,15 @@ export function useCallViewKeyboardShortcuts(
 
         if (event.key === "m") {
           event.preventDefault();
-          toggleMicrophoneMuted();
-        } else if (event.key == "v") {
+          toggleAudio?.();
+        } else if (event.key === "v") {
           event.preventDefault();
-          toggleLocalVideoMuted();
+          toggleVideo?.();
         } else if (event.key === " ") {
           event.preventDefault();
           if (!spacebarHeld.current) {
             spacebarHeld.current = true;
-            setMicrophoneMuted(false);
+            setAudioEnabled?.(true);
           }
         } else if (event.key === "h") {
           event.preventDefault();
@@ -72,9 +72,9 @@ export function useCallViewKeyboardShortcuts(
       },
       [
         focusElement,
-        toggleLocalVideoMuted,
-        toggleMicrophoneMuted,
-        setMicrophoneMuted,
+        toggleVideo,
+        toggleAudio,
+        setAudioEnabled,
         sendReaction,
         toggleHandRaised,
       ],
@@ -95,10 +95,10 @@ export function useCallViewKeyboardShortcuts(
 
         if (event.key === " ") {
           spacebarHeld.current = false;
-          setMicrophoneMuted(true);
+          setAudioEnabled?.(false);
         }
       },
-      [focusElement, setMicrophoneMuted],
+      [focusElement, setAudioEnabled],
     ),
   );
 
@@ -108,8 +108,8 @@ export function useCallViewKeyboardShortcuts(
     useCallback(() => {
       if (spacebarHeld.current) {
         spacebarHeld.current = false;
-        setMicrophoneMuted(true);
+        setAudioEnabled?.(true);
       }
-    }, [setMicrophoneMuted, spacebarHeld]),
+    }, [setAudioEnabled, spacebarHeld]),
   );
 }