diff --git a/keyserver/internal/device_list_update.go b/keyserver/internal/device_list_update.go
index 19d8463d..ec7dff56 100644
--- a/keyserver/internal/device_list_update.go
+++ b/keyserver/internal/device_list_update.go
@@ -23,7 +23,6 @@ import (
 	"time"
 
 	"github.com/matrix-org/dendrite/keyserver/api"
-	"github.com/matrix-org/dendrite/keyserver/producers"
 	"github.com/matrix-org/gomatrixserverlib"
 	"github.com/matrix-org/util"
 	"github.com/sirupsen/logrus"
@@ -65,7 +64,7 @@ type DeviceListUpdater struct {
 	mu            *sync.Mutex // protects UserIDToMutex
 
 	db          DeviceListUpdaterDatabase
-	producer    *producers.KeyChange
+	producer    KeyChangeProducer
 	fedClient   *gomatrixserverlib.FederationClient
 	workerChans []chan gomatrixserverlib.ServerName
 }
@@ -88,9 +87,14 @@ type DeviceListUpdaterDatabase interface {
 	PrevIDsExists(ctx context.Context, userID string, prevIDs []int) (bool, error)
 }
 
+// KeyChangeProducer is the interface for producers.KeyChange useful for testing.
+type KeyChangeProducer interface {
+	ProduceKeyChanges(keys []api.DeviceMessage) error
+}
+
 // NewDeviceListUpdater creates a new updater which fetches fresh device lists when they go stale.
 func NewDeviceListUpdater(
-	db DeviceListUpdaterDatabase, producer *producers.KeyChange, fedClient *gomatrixserverlib.FederationClient,
+	db DeviceListUpdaterDatabase, producer KeyChangeProducer, fedClient *gomatrixserverlib.FederationClient,
 	numWorkers int,
 ) *DeviceListUpdater {
 	return &DeviceListUpdater{
@@ -154,12 +158,17 @@ func (u *DeviceListUpdater) update(ctx context.Context, event gomatrixserverlib.
 	if err != nil {
 		return false, fmt.Errorf("failed to check prev IDs exist for %s (%s): %w", event.UserID, event.DeviceID, err)
 	}
+	// if this is the first time we're hearing about this user, sync the device list manually.
+	if len(event.PrevID) == 0 {
+		exists = false
+	}
 	util.GetLogger(ctx).WithFields(logrus.Fields{
 		"prev_ids_exist": exists,
 		"user_id":        event.UserID,
 		"device_id":      event.DeviceID,
 		"stream_id":      event.StreamID,
 		"prev_ids":       event.PrevID,
+		"display_name":   event.DeviceDisplayName,
 	}).Info("DeviceListUpdater.Update")
 
 	// if we haven't missed anything update the database and notify users
@@ -263,16 +272,17 @@ func (u *DeviceListUpdater) processServer(serverName gomatrixserverlib.ServerNam
 			hasFailures = true
 			continue
 		}
-		err = u.updateDeviceList(ctx, &res)
+		err = u.updateDeviceList(&res)
 		if err != nil {
-			logger.WithError(err).WithField("user_id", userID).Error("fetched device list but failed to store it")
+			logger.WithError(err).WithField("user_id", userID).Error("fetched device list but failed to store/emit it")
 			hasFailures = true
 		}
 	}
 	return hasFailures
 }
 
-func (u *DeviceListUpdater) updateDeviceList(ctx context.Context, res *gomatrixserverlib.RespUserDevices) error {
+func (u *DeviceListUpdater) updateDeviceList(res *gomatrixserverlib.RespUserDevices) error {
+	ctx := context.Background() // we've got the keys, don't time out when persisting them to the database.
 	keys := make([]api.DeviceMessage, len(res.Devices))
 	for i, device := range res.Devices {
 		keyJSON, err := json.Marshal(device.Keys)
@@ -292,7 +302,15 @@ func (u *DeviceListUpdater) updateDeviceList(ctx context.Context, res *gomatrixs
 	}
 	err := u.db.StoreRemoteDeviceKeys(ctx, keys)
 	if err != nil {
-		return err
+		return fmt.Errorf("failed to store remote device keys: %w", err)
 	}
-	return u.db.MarkDeviceListStale(ctx, res.UserID, false)
+	err = u.db.MarkDeviceListStale(ctx, res.UserID, false)
+	if err != nil {
+		return fmt.Errorf("failed to mark device list as fresh: %w", err)
+	}
+	err = u.producer.ProduceKeyChanges(keys)
+	if err != nil {
+		return fmt.Errorf("failed to emit key changes for fresh device list: %w", err)
+	}
+	return nil
 }
diff --git a/keyserver/internal/device_list_update_test.go b/keyserver/internal/device_list_update_test.go
new file mode 100644
index 00000000..50e42763
--- /dev/null
+++ b/keyserver/internal/device_list_update_test.go
@@ -0,0 +1,242 @@
+// Copyright 2020 The Matrix.org Foundation C.I.C.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package internal
+
+import (
+	"context"
+	"crypto/ed25519"
+	"fmt"
+	"io/ioutil"
+	"net/http"
+	"net/url"
+	"reflect"
+	"strings"
+	"sync"
+	"testing"
+	"time"
+
+	"github.com/matrix-org/dendrite/keyserver/api"
+	"github.com/matrix-org/gomatrixserverlib"
+)
+
+var (
+	ctx = context.Background()
+)
+
+type mockKeyChangeProducer struct {
+	events []api.DeviceMessage
+}
+
+func (p *mockKeyChangeProducer) ProduceKeyChanges(keys []api.DeviceMessage) error {
+	p.events = append(p.events, keys...)
+	return nil
+}
+
+type mockDeviceListUpdaterDatabase struct {
+	staleUsers   map[string]bool
+	prevIDsExist func(string, []int) bool
+	storedKeys   []api.DeviceMessage
+}
+
+// StaleDeviceLists returns a list of user IDs ending with the domains provided who have stale device lists.
+// If no domains are given, all user IDs with stale device lists are returned.
+func (d *mockDeviceListUpdaterDatabase) StaleDeviceLists(ctx context.Context, domains []gomatrixserverlib.ServerName) ([]string, error) {
+	var result []string
+	for userID := range d.staleUsers {
+		_, remoteServer, err := gomatrixserverlib.SplitID('@', userID)
+		if err != nil {
+			return nil, err
+		}
+		if len(domains) == 0 {
+			result = append(result, userID)
+			continue
+		}
+		for _, d := range domains {
+			if remoteServer == d {
+				result = append(result, userID)
+				break
+			}
+		}
+	}
+	return result, nil
+}
+
+// MarkDeviceListStale sets the stale bit for this user to isStale.
+func (d *mockDeviceListUpdaterDatabase) MarkDeviceListStale(ctx context.Context, userID string, isStale bool) error {
+	d.staleUsers[userID] = isStale
+	return nil
+}
+
+// StoreRemoteDeviceKeys persists the given keys. Keys with the same user ID and device ID will be replaced. An empty KeyJSON removes the key
+// for this (user, device). Does not modify the stream ID for keys.
+func (d *mockDeviceListUpdaterDatabase) StoreRemoteDeviceKeys(ctx context.Context, keys []api.DeviceMessage) error {
+	d.storedKeys = append(d.storedKeys, keys...)
+	return nil
+}
+
+// PrevIDsExists returns true if all prev IDs exist for this user.
+func (d *mockDeviceListUpdaterDatabase) PrevIDsExists(ctx context.Context, userID string, prevIDs []int) (bool, error) {
+	return d.prevIDsExist(userID, prevIDs), nil
+}
+
+type roundTripper struct {
+	fn func(*http.Request) (*http.Response, error)
+}
+
+func (t *roundTripper) RoundTrip(req *http.Request) (*http.Response, error) {
+	return t.fn(req)
+}
+
+func newFedClient(tripper func(*http.Request) (*http.Response, error)) *gomatrixserverlib.FederationClient {
+	_, pkey, _ := ed25519.GenerateKey(nil)
+	fedClient := gomatrixserverlib.NewFederationClient(
+		gomatrixserverlib.ServerName("example.test"), gomatrixserverlib.KeyID("ed25519:test"), pkey,
+	)
+	fedClient.Client = *gomatrixserverlib.NewClientWithTransport(&roundTripper{tripper})
+	return fedClient
+}
+
+// Test that the device keys get persisted and emitted if we have the previous IDs.
+func TestUpdateHavePrevID(t *testing.T) {
+	db := &mockDeviceListUpdaterDatabase{
+		staleUsers: make(map[string]bool),
+		prevIDsExist: func(string, []int) bool {
+			return true
+		},
+	}
+	producer := &mockKeyChangeProducer{}
+	updater := NewDeviceListUpdater(db, producer, nil, 1)
+	event := gomatrixserverlib.DeviceListUpdateEvent{
+		DeviceDisplayName: "Foo Bar",
+		Deleted:           false,
+		DeviceID:          "FOO",
+		Keys:              []byte(`{"key":"value"}`),
+		PrevID:            []int{0},
+		StreamID:          1,
+		UserID:            "@alice:localhost",
+	}
+	err := updater.Update(ctx, event)
+	if err != nil {
+		t.Fatalf("Update returned an error: %s", err)
+	}
+	want := api.DeviceMessage{
+		StreamID: event.StreamID,
+		DeviceKeys: api.DeviceKeys{
+			DeviceID:    event.DeviceID,
+			DisplayName: event.DeviceDisplayName,
+			KeyJSON:     event.Keys,
+			UserID:      event.UserID,
+		},
+	}
+	if !reflect.DeepEqual(producer.events, []api.DeviceMessage{want}) {
+		t.Errorf("Update didn't produce correct event, got %v want %v", producer.events, want)
+	}
+	if !reflect.DeepEqual(db.storedKeys, []api.DeviceMessage{want}) {
+		t.Errorf("DB didn't store correct event, got %v want %v", db.storedKeys, want)
+	}
+	if db.staleUsers[event.UserID] {
+		t.Errorf("%s incorrectly marked as stale", event.UserID)
+	}
+}
+
+// Test that device keys are fetched from the remote server if we are missing prev IDs
+// and that the user's devices are marked as stale until it succeeds.
+func TestUpdateNoPrevID(t *testing.T) {
+	db := &mockDeviceListUpdaterDatabase{
+		staleUsers: make(map[string]bool),
+		prevIDsExist: func(string, []int) bool {
+			return false
+		},
+	}
+	producer := &mockKeyChangeProducer{}
+	remoteUserID := "@alice:example.somewhere"
+	var wg sync.WaitGroup
+	wg.Add(1)
+	keyJSON := `{"user_id":"` + remoteUserID + `","device_id":"JLAFKJWSCS","algorithms":["m.olm.v1.curve25519-aes-sha2","m.megolm.v1.aes-sha2"],"keys":{"curve25519:JLAFKJWSCS":"3C5BFWi2Y8MaVvjM8M22DBmh24PmgR0nPvJOIArzgyI","ed25519:JLAFKJWSCS":"lEuiRJBit0IG6nUf5pUzWTUEsRVVe/HJkoKuEww9ULI"},"signatures":{"` + remoteUserID + `":{"ed25519:JLAFKJWSCS":"dSO80A01XiigH3uBiDVx/EjzaoycHcjq9lfQX0uWsqxl2giMIiSPR8a4d291W1ihKJL/a+myXS367WT6NAIcBA"}}}`
+	fedClient := newFedClient(func(req *http.Request) (*http.Response, error) {
+		defer wg.Done()
+		if req.URL.Path != "/_matrix/federation/v1/user/devices/"+url.PathEscape(remoteUserID) {
+			return nil, fmt.Errorf("test: invalid path: %s", req.URL.Path)
+		}
+		return &http.Response{
+			StatusCode: 200,
+			Body: ioutil.NopCloser(strings.NewReader(`
+			{
+				"user_id": "` + remoteUserID + `",
+				"stream_id": 5,
+				"devices": [
+				  {
+					"device_id": "JLAFKJWSCS",
+					"keys": ` + keyJSON + `,
+					"device_display_name": "Mobile Phone"
+				  }
+				]
+			  }
+			`)),
+		}, nil
+	})
+	updater := NewDeviceListUpdater(db, producer, fedClient, 2)
+	if err := updater.Start(); err != nil {
+		t.Fatalf("failed to start updater: %s", err)
+	}
+	event := gomatrixserverlib.DeviceListUpdateEvent{
+		DeviceDisplayName: "Mobile Phone",
+		Deleted:           false,
+		DeviceID:          "another_device_id",
+		Keys:              []byte(`{"key":"value"}`),
+		PrevID:            []int{3},
+		StreamID:          4,
+		UserID:            remoteUserID,
+	}
+	err := updater.Update(ctx, event)
+	if err != nil {
+		t.Fatalf("Update returned an error: %s", err)
+	}
+	// At this point we show have this device list marked as stale and not store the keys or emitted anything
+	if !db.staleUsers[event.UserID] {
+		t.Errorf("%s not marked as stale", event.UserID)
+	}
+	if len(producer.events) > 0 {
+		t.Errorf("Update incorrect emitted %d device change events", len(producer.events))
+	}
+	if len(db.storedKeys) > 0 {
+		t.Errorf("Update incorrect stored %d device change events", len(db.storedKeys))
+	}
+	t.Log("waiting for /users/devices to be called...")
+	wg.Wait()
+	// wait a bit for db to be updated...
+	time.Sleep(100 * time.Millisecond)
+	want := api.DeviceMessage{
+		StreamID: 5,
+		DeviceKeys: api.DeviceKeys{
+			DeviceID:    "JLAFKJWSCS",
+			DisplayName: "Mobile Phone",
+			UserID:      remoteUserID,
+			KeyJSON:     []byte(keyJSON),
+		},
+	}
+	// Now we should have a fresh list and the keys and emitted something
+	if db.staleUsers[event.UserID] {
+		t.Errorf("%s still marked as stale", event.UserID)
+	}
+	if !reflect.DeepEqual(producer.events, []api.DeviceMessage{want}) {
+		t.Logf("len got %d len want %d", len(producer.events[0].KeyJSON), len(want.KeyJSON))
+		t.Errorf("Update didn't produce correct event, got %v want %v", producer.events, want)
+	}
+	if !reflect.DeepEqual(db.storedKeys, []api.DeviceMessage{want}) {
+		t.Errorf("DB didn't store correct event, got %v want %v", db.storedKeys, want)
+	}
+
+}
diff --git a/keyserver/internal/internal.go b/keyserver/internal/internal.go
index ff298c07..075622b7 100644
--- a/keyserver/internal/internal.go
+++ b/keyserver/internal/internal.go
@@ -250,10 +250,14 @@ func (a *KeyInternalAPI) QueryKeys(ctx context.Context, req *api.QueryKeysReques
 				if len(dk.KeyJSON) == 0 {
 					continue // don't include blank keys
 				}
-				// inject display name if known
+				// inject display name if known (either locally or remotely)
+				displayName := dk.DisplayName
+				if queryRes.DeviceInfo[dk.DeviceID].DisplayName != "" {
+					displayName = queryRes.DeviceInfo[dk.DeviceID].DisplayName
+				}
 				dk.KeyJSON, _ = sjson.SetBytes(dk.KeyJSON, "unsigned", struct {
 					DisplayName string `json:"device_display_name,omitempty"`
-				}{queryRes.DeviceInfo[dk.DeviceID].DisplayName})
+				}{displayName})
 				res.DeviceKeys[userID][dk.DeviceID] = dk.KeyJSON
 			}
 		} else {
@@ -261,12 +265,49 @@ func (a *KeyInternalAPI) QueryKeys(ctx context.Context, req *api.QueryKeysReques
 			domainToDeviceKeys[domain][userID] = append(domainToDeviceKeys[domain][userID], deviceIDs...)
 		}
 	}
-	// TODO: set device display names when they are known
+
+	// attempt to satisfy key queries from the local database first as we should get device updates pushed to us
+	domainToDeviceKeys = a.remoteKeysFromDatabase(ctx, res, domainToDeviceKeys)
+	if len(domainToDeviceKeys) == 0 {
+		return // nothing to query
+	}
 
 	// perform key queries for remote devices
 	a.queryRemoteKeys(ctx, req.Timeout, res, domainToDeviceKeys)
 }
 
+func (a *KeyInternalAPI) remoteKeysFromDatabase(
+	ctx context.Context, res *api.QueryKeysResponse, domainToDeviceKeys map[string]map[string][]string,
+) map[string]map[string][]string {
+	fetchRemote := make(map[string]map[string][]string)
+	for domain, userToDeviceMap := range domainToDeviceKeys {
+		for userID, deviceIDs := range userToDeviceMap {
+			keys, err := a.DB.DeviceKeysForUser(ctx, userID, deviceIDs)
+			// if we can't query the db or there are fewer keys than requested, fetch from remote.
+			// Likewise, we can't safely return keys from the db when all devices are requested as we don't
+			// know if one has just been added.
+			if len(deviceIDs) == 0 || err != nil || len(keys) < len(deviceIDs) {
+				if _, ok := fetchRemote[domain]; !ok {
+					fetchRemote[domain] = make(map[string][]string)
+				}
+				fetchRemote[domain][userID] = append(fetchRemote[domain][userID], deviceIDs...)
+				continue
+			}
+			if res.DeviceKeys[userID] == nil {
+				res.DeviceKeys[userID] = make(map[string]json.RawMessage)
+			}
+			for _, key := range keys {
+				// inject the display name
+				key.KeyJSON, _ = sjson.SetBytes(key.KeyJSON, "unsigned", struct {
+					DisplayName string `json:"device_display_name,omitempty"`
+				}{key.DisplayName})
+				res.DeviceKeys[userID][key.DeviceID] = key.KeyJSON
+			}
+		}
+	}
+	return fetchRemote
+}
+
 func (a *KeyInternalAPI) queryRemoteKeys(
 	ctx context.Context, timeout time.Duration, res *api.QueryKeysResponse, domainToDeviceKeys map[string]map[string][]string,
 ) {
diff --git a/keyserver/storage/postgres/device_keys_table.go b/keyserver/storage/postgres/device_keys_table.go
index d321860d..b9d5d4c3 100644
--- a/keyserver/storage/postgres/device_keys_table.go
+++ b/keyserver/storage/postgres/device_keys_table.go
@@ -37,22 +37,23 @@ CREATE TABLE IF NOT EXISTS keyserver_device_keys (
 	-- required in the spec because in the event of a missed update the server fetches the entire
 	-- current set of keys rather than trying to 'fast-forward' or catchup missing stream IDs.
 	stream_id BIGINT NOT NULL,
+	display_name TEXT,
 	-- Clobber based on tuple of user/device.
     CONSTRAINT keyserver_device_keys_unique UNIQUE (user_id, device_id)
 );
 `
 
 const upsertDeviceKeysSQL = "" +
-	"INSERT INTO keyserver_device_keys (user_id, device_id, ts_added_secs, key_json, stream_id)" +
-	" VALUES ($1, $2, $3, $4, $5)" +
+	"INSERT INTO keyserver_device_keys (user_id, device_id, ts_added_secs, key_json, stream_id, display_name)" +
+	" VALUES ($1, $2, $3, $4, $5, $6)" +
 	" ON CONFLICT ON CONSTRAINT keyserver_device_keys_unique" +
-	" DO UPDATE SET key_json = $4, stream_id = $5"
+	" DO UPDATE SET key_json = $4, stream_id = $5, display_name = $6"
 
 const selectDeviceKeysSQL = "" +
-	"SELECT key_json, stream_id FROM keyserver_device_keys WHERE user_id=$1 AND device_id=$2"
+	"SELECT key_json, stream_id, display_name FROM keyserver_device_keys WHERE user_id=$1 AND device_id=$2"
 
 const selectBatchDeviceKeysSQL = "" +
-	"SELECT device_id, key_json, stream_id FROM keyserver_device_keys WHERE user_id=$1"
+	"SELECT device_id, key_json, stream_id, display_name FROM keyserver_device_keys WHERE user_id=$1"
 
 const selectMaxStreamForUserSQL = "" +
 	"SELECT MAX(stream_id) FROM keyserver_device_keys WHERE user_id=$1"
@@ -99,13 +100,17 @@ func (s *deviceKeysStatements) SelectDeviceKeysJSON(ctx context.Context, keys []
 	for i, key := range keys {
 		var keyJSONStr string
 		var streamID int
-		err := s.selectDeviceKeysStmt.QueryRowContext(ctx, key.UserID, key.DeviceID).Scan(&keyJSONStr, &streamID)
+		var displayName sql.NullString
+		err := s.selectDeviceKeysStmt.QueryRowContext(ctx, key.UserID, key.DeviceID).Scan(&keyJSONStr, &streamID, &displayName)
 		if err != nil && err != sql.ErrNoRows {
 			return err
 		}
 		// this will be '' when there is no device
 		keys[i].KeyJSON = []byte(keyJSONStr)
 		keys[i].StreamID = streamID
+		if displayName.Valid {
+			keys[i].DisplayName = displayName.String
+		}
 	}
 	return nil
 }
@@ -140,7 +145,7 @@ func (s *deviceKeysStatements) InsertDeviceKeys(ctx context.Context, txn *sql.Tx
 	for _, key := range keys {
 		now := time.Now().Unix()
 		_, err := txn.Stmt(s.upsertDeviceKeysStmt).ExecContext(
-			ctx, key.UserID, key.DeviceID, now, string(key.KeyJSON), key.StreamID,
+			ctx, key.UserID, key.DeviceID, now, string(key.KeyJSON), key.StreamID, key.DisplayName,
 		)
 		if err != nil {
 			return err
@@ -165,11 +170,15 @@ func (s *deviceKeysStatements) SelectBatchDeviceKeys(ctx context.Context, userID
 		dk.UserID = userID
 		var keyJSON string
 		var streamID int
-		if err := rows.Scan(&dk.DeviceID, &keyJSON, &streamID); err != nil {
+		var displayName sql.NullString
+		if err := rows.Scan(&dk.DeviceID, &keyJSON, &streamID, &displayName); err != nil {
 			return nil, err
 		}
 		dk.KeyJSON = []byte(keyJSON)
 		dk.StreamID = streamID
+		if displayName.Valid {
+			dk.DisplayName = displayName.String
+		}
 		// include the key if we want all keys (no device) or it was asked
 		if deviceIDMap[dk.DeviceID] || len(deviceIDs) == 0 {
 			result = append(result, dk)
diff --git a/keyserver/storage/postgres/stale_device_lists.go b/keyserver/storage/postgres/stale_device_lists.go
new file mode 100644
index 00000000..63281adf
--- /dev/null
+++ b/keyserver/storage/postgres/stale_device_lists.go
@@ -0,0 +1,118 @@
+// Copyright 2020 The Matrix.org Foundation C.I.C.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package postgres
+
+import (
+	"context"
+	"database/sql"
+	"time"
+
+	"github.com/matrix-org/dendrite/internal"
+	"github.com/matrix-org/dendrite/keyserver/storage/tables"
+	"github.com/matrix-org/gomatrixserverlib"
+)
+
+var staleDeviceListsSchema = `
+-- Stores whether a user's device lists are stale or not.
+CREATE TABLE IF NOT EXISTS keyserver_stale_device_lists (
+    user_id TEXT PRIMARY KEY NOT NULL,
+	domain TEXT NOT NULL,
+	is_stale BOOLEAN NOT NULL,
+	ts_added_secs BIGINT NOT NULL
+);
+
+CREATE INDEX IF NOT EXISTS keyserver_stale_device_lists_idx ON keyserver_stale_device_lists (domain, is_stale);
+`
+
+const upsertStaleDeviceListSQL = "" +
+	"INSERT INTO keyserver_stale_device_lists (user_id, domain, is_stale, ts_added_secs)" +
+	" VALUES ($1, $2, $3, $4)" +
+	" ON CONFLICT (user_id)" +
+	" DO UPDATE SET is_stale = $3, ts_added_secs = $4"
+
+const selectStaleDeviceListsWithDomainsSQL = "" +
+	"SELECT user_id FROM keyserver_stale_device_lists WHERE is_stale = $1 AND domain = $2"
+
+const selectStaleDeviceListsSQL = "" +
+	"SELECT user_id FROM keyserver_stale_device_lists WHERE is_stale = $1"
+
+type staleDeviceListsStatements struct {
+	upsertStaleDeviceListStmt             *sql.Stmt
+	selectStaleDeviceListsWithDomainsStmt *sql.Stmt
+	selectStaleDeviceListsStmt            *sql.Stmt
+}
+
+func NewPostgresStaleDeviceListsTable(db *sql.DB) (tables.StaleDeviceLists, error) {
+	s := &staleDeviceListsStatements{}
+	_, err := db.Exec(staleDeviceListsSchema)
+	if err != nil {
+		return nil, err
+	}
+	if s.upsertStaleDeviceListStmt, err = db.Prepare(upsertStaleDeviceListSQL); err != nil {
+		return nil, err
+	}
+	if s.selectStaleDeviceListsStmt, err = db.Prepare(selectStaleDeviceListsSQL); err != nil {
+		return nil, err
+	}
+	if s.selectStaleDeviceListsWithDomainsStmt, err = db.Prepare(selectStaleDeviceListsWithDomainsSQL); err != nil {
+		return nil, err
+	}
+	return s, nil
+}
+
+func (s *staleDeviceListsStatements) InsertStaleDeviceList(ctx context.Context, userID string, isStale bool) error {
+	_, domain, err := gomatrixserverlib.SplitID('@', userID)
+	if err != nil {
+		return err
+	}
+	_, err = s.upsertStaleDeviceListStmt.ExecContext(ctx, userID, string(domain), isStale, time.Now().Unix())
+	return err
+}
+
+func (s *staleDeviceListsStatements) SelectUserIDsWithStaleDeviceLists(ctx context.Context, domains []gomatrixserverlib.ServerName) ([]string, error) {
+	// we only query for 1 domain or all domains so optimise for those use cases
+	if len(domains) == 0 {
+		rows, err := s.selectStaleDeviceListsStmt.QueryContext(ctx, true)
+		if err != nil {
+			return nil, err
+		}
+		return rowsToUserIDs(ctx, rows)
+	}
+	var result []string
+	for _, domain := range domains {
+		rows, err := s.selectStaleDeviceListsWithDomainsStmt.QueryContext(ctx, true, string(domain))
+		if err != nil {
+			return nil, err
+		}
+		userIDs, err := rowsToUserIDs(ctx, rows)
+		if err != nil {
+			return nil, err
+		}
+		result = append(result, userIDs...)
+	}
+	return result, nil
+}
+
+func rowsToUserIDs(ctx context.Context, rows *sql.Rows) (result []string, err error) {
+	defer internal.CloseAndLogIfError(ctx, rows, "closing rowsToUserIDs failed")
+	for rows.Next() {
+		var userID string
+		if err := rows.Scan(&userID); err != nil {
+			return nil, err
+		}
+		result = append(result, userID)
+	}
+	return result, rows.Err()
+}
diff --git a/keyserver/storage/postgres/storage.go b/keyserver/storage/postgres/storage.go
index a1d1c0fe..de2fabfd 100644
--- a/keyserver/storage/postgres/storage.go
+++ b/keyserver/storage/postgres/storage.go
@@ -38,10 +38,15 @@ func NewDatabase(dbDataSourceName string, dbProperties sqlutil.DbProperties) (*s
 	if err != nil {
 		return nil, err
 	}
+	sdl, err := NewPostgresStaleDeviceListsTable(db)
+	if err != nil {
+		return nil, err
+	}
 	return &shared.Database{
-		DB:               db,
-		OneTimeKeysTable: otk,
-		DeviceKeysTable:  dk,
-		KeyChangesTable:  kc,
+		DB:                    db,
+		OneTimeKeysTable:      otk,
+		DeviceKeysTable:       dk,
+		KeyChangesTable:       kc,
+		StaleDeviceListsTable: sdl,
 	}, nil
 }
diff --git a/keyserver/storage/shared/storage.go b/keyserver/storage/shared/storage.go
index 68964be6..4279eae7 100644
--- a/keyserver/storage/shared/storage.go
+++ b/keyserver/storage/shared/storage.go
@@ -26,10 +26,11 @@ import (
 )
 
 type Database struct {
-	DB               *sql.DB
-	OneTimeKeysTable tables.OneTimeKeys
-	DeviceKeysTable  tables.DeviceKeys
-	KeyChangesTable  tables.KeyChanges
+	DB                    *sql.DB
+	OneTimeKeysTable      tables.OneTimeKeys
+	DeviceKeysTable       tables.DeviceKeys
+	KeyChangesTable       tables.KeyChanges
+	StaleDeviceListsTable tables.StaleDeviceLists
 }
 
 func (d *Database) ExistingOneTimeKeys(ctx context.Context, userID, deviceID string, keyIDsWithAlgorithms []string) (map[string]json.RawMessage, error) {
@@ -129,10 +130,10 @@ func (d *Database) KeyChanges(ctx context.Context, partition int32, fromOffset,
 // StaleDeviceLists returns a list of user IDs ending with the domains provided who have stale device lists.
 // If no domains are given, all user IDs with stale device lists are returned.
 func (d *Database) StaleDeviceLists(ctx context.Context, domains []gomatrixserverlib.ServerName) ([]string, error) {
-	return nil, nil // TODO
+	return d.StaleDeviceListsTable.SelectUserIDsWithStaleDeviceLists(ctx, domains)
 }
 
 // MarkDeviceListStale sets the stale bit for this user to isStale.
 func (d *Database) MarkDeviceListStale(ctx context.Context, userID string, isStale bool) error {
-	return nil // TODO
+	return d.StaleDeviceListsTable.InsertStaleDeviceList(ctx, userID, isStale)
 }
diff --git a/keyserver/storage/sqlite3/device_keys_table.go b/keyserver/storage/sqlite3/device_keys_table.go
index 15d9c775..abe6636a 100644
--- a/keyserver/storage/sqlite3/device_keys_table.go
+++ b/keyserver/storage/sqlite3/device_keys_table.go
@@ -34,22 +34,23 @@ CREATE TABLE IF NOT EXISTS keyserver_device_keys (
 	ts_added_secs BIGINT NOT NULL,
 	key_json TEXT NOT NULL,
 	stream_id BIGINT NOT NULL,
+	display_name TEXT,
 	-- Clobber based on tuple of user/device.
     UNIQUE (user_id, device_id)
 );
 `
 
 const upsertDeviceKeysSQL = "" +
-	"INSERT INTO keyserver_device_keys (user_id, device_id, ts_added_secs, key_json, stream_id)" +
-	" VALUES ($1, $2, $3, $4, $5)" +
+	"INSERT INTO keyserver_device_keys (user_id, device_id, ts_added_secs, key_json, stream_id, display_name)" +
+	" VALUES ($1, $2, $3, $4, $5, $6)" +
 	" ON CONFLICT (user_id, device_id)" +
-	" DO UPDATE SET key_json = $4, stream_id = $5"
+	" DO UPDATE SET key_json = $4, stream_id = $5, display_name = $6"
 
 const selectDeviceKeysSQL = "" +
-	"SELECT key_json, stream_id FROM keyserver_device_keys WHERE user_id=$1 AND device_id=$2"
+	"SELECT key_json, stream_id, display_name FROM keyserver_device_keys WHERE user_id=$1 AND device_id=$2"
 
 const selectBatchDeviceKeysSQL = "" +
-	"SELECT device_id, key_json, stream_id FROM keyserver_device_keys WHERE user_id=$1"
+	"SELECT device_id, key_json, stream_id, display_name FROM keyserver_device_keys WHERE user_id=$1"
 
 const selectMaxStreamForUserSQL = "" +
 	"SELECT MAX(stream_id) FROM keyserver_device_keys WHERE user_id=$1"
@@ -106,11 +107,15 @@ func (s *deviceKeysStatements) SelectBatchDeviceKeys(ctx context.Context, userID
 		dk.UserID = userID
 		var keyJSON string
 		var streamID int
-		if err := rows.Scan(&dk.DeviceID, &keyJSON, &streamID); err != nil {
+		var displayName sql.NullString
+		if err := rows.Scan(&dk.DeviceID, &keyJSON, &streamID, &displayName); err != nil {
 			return nil, err
 		}
 		dk.KeyJSON = []byte(keyJSON)
 		dk.StreamID = streamID
+		if displayName.Valid {
+			dk.DisplayName = displayName.String
+		}
 		// include the key if we want all keys (no device) or it was asked
 		if deviceIDMap[dk.DeviceID] || len(deviceIDs) == 0 {
 			result = append(result, dk)
@@ -123,13 +128,17 @@ func (s *deviceKeysStatements) SelectDeviceKeysJSON(ctx context.Context, keys []
 	for i, key := range keys {
 		var keyJSONStr string
 		var streamID int
-		err := s.selectDeviceKeysStmt.QueryRowContext(ctx, key.UserID, key.DeviceID).Scan(&keyJSONStr, &streamID)
+		var displayName sql.NullString
+		err := s.selectDeviceKeysStmt.QueryRowContext(ctx, key.UserID, key.DeviceID).Scan(&keyJSONStr, &streamID, &displayName)
 		if err != nil && err != sql.ErrNoRows {
 			return err
 		}
 		// this will be '' when there is no device
 		keys[i].KeyJSON = []byte(keyJSONStr)
 		keys[i].StreamID = streamID
+		if displayName.Valid {
+			keys[i].DisplayName = displayName.String
+		}
 	}
 	return nil
 }
@@ -171,7 +180,7 @@ func (s *deviceKeysStatements) InsertDeviceKeys(ctx context.Context, txn *sql.Tx
 		for _, key := range keys {
 			now := time.Now().Unix()
 			_, err := txn.Stmt(s.upsertDeviceKeysStmt).ExecContext(
-				ctx, key.UserID, key.DeviceID, now, string(key.KeyJSON), key.StreamID,
+				ctx, key.UserID, key.DeviceID, now, string(key.KeyJSON), key.StreamID, key.DisplayName,
 			)
 			if err != nil {
 				return err
diff --git a/keyserver/storage/sqlite3/one_time_keys_table.go b/keyserver/storage/sqlite3/one_time_keys_table.go
index f910479f..907966a7 100644
--- a/keyserver/storage/sqlite3/one_time_keys_table.go
+++ b/keyserver/storage/sqlite3/one_time_keys_table.go
@@ -196,6 +196,9 @@ func (s *oneTimeKeysStatements) SelectAndDeleteOneTimeKey(
 		_, err = txn.StmtContext(ctx, s.deleteOneTimeKeyStmt).ExecContext(ctx, userID, deviceID, algorithm, keyID)
 		return err
 	})
+	if keyJSON == "" {
+		return nil, nil
+	}
 	return map[string]json.RawMessage{
 		algorithm + ":" + keyID: json.RawMessage(keyJSON),
 	}, err
diff --git a/keyserver/storage/sqlite3/stale_device_lists.go b/keyserver/storage/sqlite3/stale_device_lists.go
new file mode 100644
index 00000000..a989476d
--- /dev/null
+++ b/keyserver/storage/sqlite3/stale_device_lists.go
@@ -0,0 +1,118 @@
+// Copyright 2020 The Matrix.org Foundation C.I.C.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+package sqlite3
+
+import (
+	"context"
+	"database/sql"
+	"time"
+
+	"github.com/matrix-org/dendrite/internal"
+	"github.com/matrix-org/dendrite/keyserver/storage/tables"
+	"github.com/matrix-org/gomatrixserverlib"
+)
+
+var staleDeviceListsSchema = `
+-- Stores whether a user's device lists are stale or not.
+CREATE TABLE IF NOT EXISTS keyserver_stale_device_lists (
+    user_id TEXT PRIMARY KEY NOT NULL,
+	domain TEXT NOT NULL,
+	is_stale BOOLEAN NOT NULL,
+	ts_added_secs BIGINT NOT NULL
+);
+
+CREATE INDEX IF NOT EXISTS keyserver_stale_device_lists_idx ON keyserver_stale_device_lists (domain, is_stale);
+`
+
+const upsertStaleDeviceListSQL = "" +
+	"INSERT INTO keyserver_stale_device_lists (user_id, domain, is_stale, ts_added_secs)" +
+	" VALUES ($1, $2, $3, $4)" +
+	" ON CONFLICT (user_id)" +
+	" DO UPDATE SET is_stale = $3, ts_added_secs = $4"
+
+const selectStaleDeviceListsWithDomainsSQL = "" +
+	"SELECT user_id FROM keyserver_stale_device_lists WHERE is_stale = $1 AND domain = $2"
+
+const selectStaleDeviceListsSQL = "" +
+	"SELECT user_id FROM keyserver_stale_device_lists WHERE is_stale = $1"
+
+type staleDeviceListsStatements struct {
+	upsertStaleDeviceListStmt             *sql.Stmt
+	selectStaleDeviceListsWithDomainsStmt *sql.Stmt
+	selectStaleDeviceListsStmt            *sql.Stmt
+}
+
+func NewSqliteStaleDeviceListsTable(db *sql.DB) (tables.StaleDeviceLists, error) {
+	s := &staleDeviceListsStatements{}
+	_, err := db.Exec(staleDeviceListsSchema)
+	if err != nil {
+		return nil, err
+	}
+	if s.upsertStaleDeviceListStmt, err = db.Prepare(upsertStaleDeviceListSQL); err != nil {
+		return nil, err
+	}
+	if s.selectStaleDeviceListsStmt, err = db.Prepare(selectStaleDeviceListsSQL); err != nil {
+		return nil, err
+	}
+	if s.selectStaleDeviceListsWithDomainsStmt, err = db.Prepare(selectStaleDeviceListsWithDomainsSQL); err != nil {
+		return nil, err
+	}
+	return s, nil
+}
+
+func (s *staleDeviceListsStatements) InsertStaleDeviceList(ctx context.Context, userID string, isStale bool) error {
+	_, domain, err := gomatrixserverlib.SplitID('@', userID)
+	if err != nil {
+		return err
+	}
+	_, err = s.upsertStaleDeviceListStmt.ExecContext(ctx, userID, string(domain), isStale, time.Now().Unix())
+	return err
+}
+
+func (s *staleDeviceListsStatements) SelectUserIDsWithStaleDeviceLists(ctx context.Context, domains []gomatrixserverlib.ServerName) ([]string, error) {
+	// we only query for 1 domain or all domains so optimise for those use cases
+	if len(domains) == 0 {
+		rows, err := s.selectStaleDeviceListsStmt.QueryContext(ctx, true)
+		if err != nil {
+			return nil, err
+		}
+		return rowsToUserIDs(ctx, rows)
+	}
+	var result []string
+	for _, domain := range domains {
+		rows, err := s.selectStaleDeviceListsWithDomainsStmt.QueryContext(ctx, true, string(domain))
+		if err != nil {
+			return nil, err
+		}
+		userIDs, err := rowsToUserIDs(ctx, rows)
+		if err != nil {
+			return nil, err
+		}
+		result = append(result, userIDs...)
+	}
+	return result, nil
+}
+
+func rowsToUserIDs(ctx context.Context, rows *sql.Rows) (result []string, err error) {
+	defer internal.CloseAndLogIfError(ctx, rows, "closing rowsToUserIDs failed")
+	for rows.Next() {
+		var userID string
+		if err := rows.Scan(&userID); err != nil {
+			return nil, err
+		}
+		result = append(result, userID)
+	}
+	return result, rows.Err()
+}
diff --git a/keyserver/storage/sqlite3/storage.go b/keyserver/storage/sqlite3/storage.go
index f9771cf1..bbfd1e79 100644
--- a/keyserver/storage/sqlite3/storage.go
+++ b/keyserver/storage/sqlite3/storage.go
@@ -41,10 +41,15 @@ func NewDatabase(dataSourceName string) (*shared.Database, error) {
 	if err != nil {
 		return nil, err
 	}
+	sdl, err := NewSqliteStaleDeviceListsTable(db)
+	if err != nil {
+		return nil, err
+	}
 	return &shared.Database{
-		DB:               db,
-		OneTimeKeysTable: otk,
-		DeviceKeysTable:  dk,
-		KeyChangesTable:  kc,
+		DB:                    db,
+		OneTimeKeysTable:      otk,
+		DeviceKeysTable:       dk,
+		KeyChangesTable:       kc,
+		StaleDeviceListsTable: sdl,
 	}, nil
 }
diff --git a/keyserver/storage/tables/interface.go b/keyserver/storage/tables/interface.go
index ac932d56..a4d5dede 100644
--- a/keyserver/storage/tables/interface.go
+++ b/keyserver/storage/tables/interface.go
@@ -20,6 +20,7 @@ import (
 	"encoding/json"
 
 	"github.com/matrix-org/dendrite/keyserver/api"
+	"github.com/matrix-org/gomatrixserverlib"
 )
 
 type OneTimeKeys interface {
@@ -45,3 +46,8 @@ type KeyChanges interface {
 	// Results are exclusive of fromOffset and inclusive of toOffset. A toOffset of sarama.OffsetNewest means no upper offset.
 	SelectKeyChanges(ctx context.Context, partition int32, fromOffset, toOffset int64) (userIDs []string, latestOffset int64, err error)
 }
+
+type StaleDeviceLists interface {
+	InsertStaleDeviceList(ctx context.Context, userID string, isStale bool) error
+	SelectUserIDsWithStaleDeviceLists(ctx context.Context, domains []gomatrixserverlib.ServerName) ([]string, error)
+}
diff --git a/syncapi/internal/keychange.go b/syncapi/internal/keychange.go
index 66134d79..e0379aaf 100644
--- a/syncapi/internal/keychange.go
+++ b/syncapi/internal/keychange.go
@@ -46,6 +46,7 @@ func DeviceOTKCounts(ctx context.Context, keyAPI keyapi.KeyInternalAPI, userID,
 // DeviceListCatchup fills in the given response for the given user ID to bring it up-to-date with device lists. hasNew=true if the response
 // was filled in, else false if there are no new device list changes because there is nothing to catch up on. The response MUST
 // be already filled in with join/leave information.
+// nolint:gocyclo
 func DeviceListCatchup(
 	ctx context.Context, keyAPI keyapi.KeyInternalAPI, stateAPI currentstateAPI.CurrentStateInternalAPI,
 	userID string, res *types.Response, from, to types.StreamingToken,
@@ -68,22 +69,20 @@ func DeviceListCatchup(
 
 	var partition int32
 	var offset int64
+	partition = -1
+	offset = sarama.OffsetOldest
 	// Extract partition/offset from sync token
 	// TODO: In a world where keyserver is sharded there will be multiple partitions and hence multiple QueryKeyChanges to make.
 	logOffset := from.Log(DeviceListLogName)
 	if logOffset != nil {
 		partition = logOffset.Partition
 		offset = logOffset.Offset
-	} else {
-		partition = -1
-		offset = sarama.OffsetOldest
 	}
 	var toOffset int64
+	toOffset = sarama.OffsetNewest
 	toLog := to.Log(DeviceListLogName)
-	if toLog != nil {
+	if toLog != nil && toLog.Offset > 0 {
 		toOffset = toLog.Offset
-	} else {
-		toOffset = sarama.OffsetNewest
 	}
 	var queryRes api.QueryKeyChangesResponse
 	keyAPI.QueryKeyChanges(ctx, &api.QueryKeyChangesRequest{
@@ -96,6 +95,10 @@ func DeviceListCatchup(
 		util.GetLogger(ctx).WithError(queryRes.Error).Error("QueryKeyChanges failed")
 		return hasNew, nil
 	}
+	util.GetLogger(ctx).Debugf(
+		"QueryKeyChanges request p=%d,off=%d,to=%d response p=%d off=%d uids=%v",
+		partition, offset, toOffset, queryRes.Partition, queryRes.Offset, queryRes.UserIDs,
+	)
 	userSet := make(map[string]bool)
 	for _, userID := range res.DeviceLists.Changed {
 		userSet[userID] = true
@@ -116,6 +119,13 @@ func DeviceListCatchup(
 			userSet[userID] = true
 		}
 	}
+	// set the new token
+	to.SetLog(DeviceListLogName, &types.LogPosition{
+		Partition: queryRes.Partition,
+		Offset:    queryRes.Offset,
+	})
+	res.NextBatch = to.String()
+
 	return hasNew, nil
 }
 
diff --git a/syncapi/types/types.go b/syncapi/types/types.go
index f465d9ff..f3324800 100644
--- a/syncapi/types/types.go
+++ b/syncapi/types/types.go
@@ -112,6 +112,9 @@ type StreamingToken struct {
 }
 
 func (t *StreamingToken) SetLog(name string, lp *LogPosition) {
+	if t.logs == nil {
+		t.logs = make(map[string]*LogPosition)
+	}
 	t.logs[name] = lp
 }
 
@@ -173,12 +176,14 @@ func (t *StreamingToken) WithUpdates(other StreamingToken) (ret StreamingToken)
 		}
 		ret.Positions[i] = other.Positions[i]
 	}
+	ret.logs = make(map[string]*LogPosition)
 	for name := range t.logs {
 		otherLog := other.Log(name)
 		if otherLog == nil {
 			continue
 		}
-		t.logs[name] = otherLog
+		copy := *otherLog
+		ret.logs[name] = &copy
 	}
 	return ret
 }
diff --git a/sytest-whitelist b/sytest-whitelist
index 18978bbe..cc49bf38 100644
--- a/sytest-whitelist
+++ b/sytest-whitelist
@@ -138,6 +138,7 @@ Users receive device_list updates for their own devices
 Get left notifs for other users in sync and /keys/changes when user leaves
 Local device key changes get to remote servers
 Local device key changes get to remote servers with correct prev_id
+#Server correctly handles incoming m.device_list_update
 Can add account data
 Can add account data to room
 Can get account data without syncing