diff --git a/native/components/background-identity-login-handler.react.js b/native/components/background-identity-login-handler.react.js
index ce9bd9dac..399d9d0e0 100644
--- a/native/components/background-identity-login-handler.react.js
+++ b/native/components/background-identity-login-handler.react.js
@@ -1,94 +1,103 @@
 // @flow
 
 import * as React from 'react';
 
 import {
   identityLogInActionTypes,
   useIdentityPasswordLogIn,
   logOutActionTypes,
   useLogOut,
 } from 'lib/actions/user-actions.js';
+import { isLoggedInToIdentityAndAuthoritativeKeyserver } from 'lib/selectors/user-selectors.js';
 import { accountHasPassword } from 'lib/shared/account-utils.js';
 import { securityUpdateLogoutText } from 'lib/types/alert-types.js';
 import { useDispatchActionPromise } from 'lib/utils/redux-promise-utils.js';
 import { useSelector } from 'lib/utils/redux-utils.js';
 import { usingCommServicesAccessToken } from 'lib/utils/services-utils.js';
 
 import { fetchNativeKeychainCredentials } from '../account/native-credentials.js';
+import { useIsAppLoggedIn } from '../navigation/nav-selectors.js';
 import Alert from '../utils/alert.js';
 
 function BackgroundIdentityLoginHandler() {
   const dispatchActionPromise = useDispatchActionPromise();
   const callLogOut = useLogOut();
 
   const isAccountWithPassword = useSelector(state =>
     accountHasPassword(state.currentUserInfo),
   );
   const hasAccessToken = useSelector(state => !!state.commServicesAccessToken);
-  const dataLoaded = useSelector(state => state.dataLoaded);
+
+  const loggedIn = useSelector(isLoggedInToIdentityAndAuthoritativeKeyserver);
+  const navLoggedIn = useIsAppLoggedIn();
+
+  // We don't want to try identity login until both loggedIn and navLoggedIn are
+  // true. The former is to make sure that we will be able to successfully log
+  // in with identity. The latter is to address a race condition in ENG-8785.
+  const readyToTryIdentityLogin = loggedIn && navLoggedIn;
 
   const callIdentityPasswordLogIn = useIdentityPasswordLogIn();
 
   const handleLogOutAndAlert = React.useCallback(() => {
     void dispatchActionPromise(logOutActionTypes, callLogOut());
     Alert.alert('Security update', securityUpdateLogoutText, [{ text: 'OK' }]);
   }, [dispatchActionPromise, callLogOut]);
 
   const loginAttemptedRef = React.useRef(false);
 
   const logInIfPossibleElseLogOut = React.useCallback(async () => {
     if (
       hasAccessToken ||
-      !dataLoaded ||
+      !readyToTryIdentityLogin ||
       !usingCommServicesAccessToken ||
       loginAttemptedRef.current
     ) {
       return;
     }
 
     if (!isAccountWithPassword) {
       handleLogOutAndAlert();
       return;
     }
 
     const nativeCredentials = await fetchNativeKeychainCredentials();
     if (!nativeCredentials) {
       console.log(
         'Native credentials missing. Cannot log in to identity service',
       );
       handleLogOutAndAlert();
       return;
     }
 
     if (loginAttemptedRef.current) {
       return;
     }
     loginAttemptedRef.current = true;
 
     const logInPromise = callIdentityPasswordLogIn(
       nativeCredentials.username,
       nativeCredentials.password,
     );
     void dispatchActionPromise(identityLogInActionTypes, logInPromise);
 
     try {
       await logInPromise;
     } catch (e) {
       console.log('BackgroundIdentityLoginHandler failed identity login', e);
       handleLogOutAndAlert();
     }
   }, [
     callIdentityPasswordLogIn,
     dispatchActionPromise,
-    dataLoaded,
+    readyToTryIdentityLogin,
     handleLogOutAndAlert,
     hasAccessToken,
     isAccountWithPassword,
   ]);
 
   React.useEffect(() => {
     void logInIfPossibleElseLogOut();
   }, [logInIfPossibleElseLogOut]);
 }
 
 export default BackgroundIdentityLoginHandler;