diff --git a/package.json b/package.json
index da5484a069..27896ffc89 100644
--- a/package.json
+++ b/package.json
@@ -61,7 +61,7 @@
     "jsrsasign": "^10.2.0",
     "katex": "^0.12.0",
     "matrix-js-sdk": "15.5.1-rc.1",
-    "matrix-react-sdk": "3.40.0-rc.1",
+    "matrix-react-sdk": "3.40.0-rc.2",
     "matrix-widget-api": "^0.1.0-beta.18",
     "prop-types": "^15.7.2",
     "react": "17.0.2",
diff --git a/yarn.lock b/yarn.lock
index bceea006d3..79522c7843 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -8081,10 +8081,10 @@ matrix-mock-request@^1.2.3:
     bluebird "^3.5.0"
     expect "^1.20.2"
 
-matrix-react-sdk@3.40.0-rc.1:
-  version "3.40.0-rc.1"
-  resolved "https://registry.yarnpkg.com/matrix-react-sdk/-/matrix-react-sdk-3.40.0-rc.1.tgz#4641b4d20f18b508b1ecf149cc7ca64dd9736830"
-  integrity sha512-rwcllTjbadYNk4J7Dbbnc+2LkpYMvI9zNTSbmKk8fXO+vp/cdMtScJISi2sYVVc05qckDvC4Q3E2UoJ3Jvdh4g==
+matrix-react-sdk@3.40.0-rc.2:
+  version "3.40.0-rc.2"
+  resolved "https://registry.yarnpkg.com/matrix-react-sdk/-/matrix-react-sdk-3.40.0-rc.2.tgz#d6b3bc137e83c9abb3e58045dc557a9130649747"
+  integrity sha512-fNbBe+vkVk5P0206CdROJ5f7DDRRoWnBT3d5qMTUjHCR3mYVzrDVHgJrAMM0qgntV3lJSWzajPznFvLOPWcALQ==
   dependencies:
     "@babel/runtime" "^7.12.5"
     "@sentry/browser" "^6.11.0"