diff --git a/cabal.project b/cabal.project
index 05e9af91ff..4fccb51694 100644
--- a/cabal.project
+++ b/cabal.project
@@ -12,7 +12,7 @@ constraints: zip +disable-bzip2 +disable-zstd
 source-repository-package
     type: git
     location: https://github.com/simplex-chat/simplexmq.git
-    tag: dab55e0a9b03577f643af7922afa061801d82ed5
+    tag: 851ed2d02e2a78c15893ad8bc9c5a4d917eb6a35
 
 source-repository-package
     type: git
diff --git a/scripts/nix/sha256map.nix b/scripts/nix/sha256map.nix
index 7ca6c8c074..b2e11db33a 100644
--- a/scripts/nix/sha256map.nix
+++ b/scripts/nix/sha256map.nix
@@ -1,5 +1,5 @@
 {
-  "https://github.com/simplex-chat/simplexmq.git"."dab55e0a9b03577f643af7922afa061801d82ed5" = "0dzqsvzxby83nla0rpx3xzj2y18lvmgs5ldjv5i1yp52npc88s1m";
+  "https://github.com/simplex-chat/simplexmq.git"."851ed2d02e2a78c15893ad8bc9c5a4d917eb6a35" = "0rm13iknnqhdb42nmyjc2wj85z23p337bp026ihnychax5s1216j";
   "https://github.com/simplex-chat/hs-socks.git"."a30cc7a79a08d8108316094f8f2f82a0c5e1ac51" = "0yasvnr7g91k76mjkamvzab2kvlb1g5pspjyjn2fr6v83swjhj38";
   "https://github.com/simplex-chat/direct-sqlcipher.git"."f814ee68b16a9447fbb467ccc8f29bdd3546bfd9" = "1ql13f4kfwkbaq7nygkxgw84213i0zm7c1a8hwvramayxl38dq5d";
   "https://github.com/simplex-chat/sqlcipher-simple.git"."a46bd361a19376c5211f1058908fc0ae6bf42446" = "1z0r78d8f0812kxbgsm735qf6xx8lvaz27k1a0b4a2m0sshpd5gl";
diff --git a/tests/ChatClient.hs b/tests/ChatClient.hs
index 691a4101a7..792f9642d3 100644
--- a/tests/ChatClient.hs
+++ b/tests/ChatClient.hs
@@ -28,6 +28,7 @@ import Simplex.Chat
 import Simplex.Chat.Controller (ChatCommand (..), ChatConfig (..), ChatController (..), ChatDatabase (..), ChatLogLevel (..))
 import Simplex.Chat.Core
 import Simplex.Chat.Options
+import Simplex.Chat.Protocol (currentChatVersion, pqEncryptionCompressionVersion)
 import Simplex.Chat.Store
 import Simplex.Chat.Store.Profiles
 import Simplex.Chat.Terminal
@@ -37,12 +38,13 @@ import Simplex.FileTransfer.Description (kb, mb)
 import Simplex.FileTransfer.Server (runXFTPServerBlocking)
 import Simplex.FileTransfer.Server.Env (XFTPServerConfig (..), defaultFileExpiration)
 import Simplex.Messaging.Agent.Env.SQLite
-import Simplex.Messaging.Agent.Protocol (supportedSMPAgentVRange, pattern VersionSMPA)
+import Simplex.Messaging.Agent.Protocol (currentSMPAgentVersion, duplexHandshakeSMPAgentVersion, pqdrSMPAgentVersion, supportedSMPAgentVRange)
 import Simplex.Messaging.Agent.RetryInterval
 import Simplex.Messaging.Agent.Store.SQLite (MigrationConfirmation (..))
 import qualified Simplex.Messaging.Agent.Store.SQLite.DB as DB
 import Simplex.Messaging.Client (ProtocolClientConfig (..), defaultNetworkConfig)
-import Simplex.Messaging.Crypto.Ratchet (supportedE2EEncryptVRange, pattern PQSupportOff, pattern VersionE2E)
+import Simplex.Messaging.Crypto.Ratchet (supportedE2EEncryptVRange, pattern PQSupportOff)
+import qualified Simplex.Messaging.Crypto.Ratchet as CR
 import Simplex.Messaging.Server (runSMPServerBlocking)
 import Simplex.Messaging.Server.Env.STM
 import Simplex.Messaging.Transport
@@ -147,22 +149,38 @@ testAgentCfgVPrev =
       smpCfg = (smpCfg testAgentCfg) {serverVRange = prevRange $ serverVRange $ smpCfg testAgentCfg}
     }
 
+testAgentCfgVNext :: AgentConfig
+testAgentCfgVNext =
+  testAgentCfg
+    { smpClientVRange = nextRange $ smpClientVRange testAgentCfg,
+      smpAgentVRange = \_ -> mkVersionRange duplexHandshakeSMPAgentVersion $ max pqdrSMPAgentVersion currentSMPAgentVersion,
+      e2eEncryptVRange = \_ -> mkVersionRange CR.kdfX3DHE2EEncryptVersion $ max CR.pqRatchetE2EEncryptVersion CR.currentE2EEncryptVersion,
+      smpCfg = (smpCfg testAgentCfg) {serverVRange = nextRange $ serverVRange $ smpCfg testAgentCfg}
+    }
+
 testAgentCfgV1 :: AgentConfig
 testAgentCfgV1 =
   testAgentCfg
     { smpClientVRange = v1Range,
-      smpAgentVRange = \_ -> versionToRange (VersionSMPA 2), -- duplexHandshakeSMPAgentVersion,
-      e2eEncryptVRange = \_ -> versionToRange (VersionE2E 2), -- kdfX3DHE2EEncryptVersion,
+      smpAgentVRange = \_ -> versionToRange duplexHandshakeSMPAgentVersion,
+      e2eEncryptVRange = \_ -> versionToRange CR.kdfX3DHE2EEncryptVersion,
       smpCfg = (smpCfg testAgentCfg) {serverVRange = versionToRange batchCmdsSMPVersion}
     }
 
 testCfgVPrev :: ChatConfig
 testCfgVPrev =
   testCfg
-    { chatVRange = prevRange . chatVRange testCfg,
+    { chatVRange = \_ -> prevRange $ chatVRange testCfg PQSupportOff,
       agentConfig = testAgentCfgVPrev
     }
 
+testCfgVNext :: ChatConfig
+testCfgVNext =
+  testCfg
+    { chatVRange = \_ -> mkVersionRange initialChatVersion $ max pqEncryptionCompressionVersion currentChatVersion,
+      agentConfig = testAgentCfgVNext
+    }
+
 testCfgV1 :: ChatConfig
 testCfgV1 =
   testCfg
@@ -173,12 +191,18 @@ testCfgV1 =
 prevRange :: VersionRange v -> VersionRange v
 prevRange vr = vr {maxVersion = max (minVersion vr) (prevVersion $ maxVersion vr)}
 
+nextRange :: VersionRange v -> VersionRange v
+nextRange vr = vr {maxVersion = max (minVersion vr) (nextVersion $ maxVersion vr)}
+
 v1Range :: VersionRange v
 v1Range = mkVersionRange (Version 1) (Version 1)
 
 prevVersion :: Version v -> Version v
 prevVersion (Version v) = Version (v - 1)
 
+nextVersion :: Version v -> Version v
+nextVersion (Version v) = Version (v + 1)
+
 testCfgCreateGroupDirect :: ChatConfig
 testCfgCreateGroupDirect =
   mkCfgCreateGroupDirect testCfg
diff --git a/tests/ChatTests/Direct.hs b/tests/ChatTests/Direct.hs
index f50c82878f..c80323b114 100644
--- a/tests/ChatTests/Direct.hs
+++ b/tests/ChatTests/Direct.hs
@@ -23,9 +23,9 @@ import Simplex.Chat.Controller (ChatConfig (..))
 import Simplex.Chat.Options (ChatOpts (..))
 import Simplex.Chat.Protocol (currentChatVersion, pqEncryptionCompressionVersion, supportedChatVRange)
 import Simplex.Chat.Store (agentStoreFile, chatStoreFile)
-import Simplex.Chat.Types (VersionRangeChat, authErrDisableCount, sameVerificationCode, verificationCode, pattern VersionChat)
+import Simplex.Chat.Types (VersionRangeChat, authErrDisableCount, sameVerificationCode, verificationCode, VersionChat, pattern VersionChat)
 import qualified Simplex.Messaging.Crypto as C
-import Simplex.Messaging.Crypto.Ratchet (PQEncryption (..), pattern PQSupportOn, pattern PQSupportOff, pattern PQEncOn, pattern PQEncOff)
+import Simplex.Messaging.Crypto.Ratchet (PQEncryption (..), pattern PQEncOff, pattern PQEncOn, pattern PQSupportOff, pattern PQSupportOn)
 import Simplex.Messaging.Util (safeDecodeUtf8)
 import Simplex.Messaging.Version
 import System.Directory (copyFile, doesDirectoryExist, doesFileExist)
@@ -131,6 +131,8 @@ chatDirectTests = do
   describe "PQ tests" $ do
     describe "enable PQ before connection, connect via invitation link" $ pqMatrix2 runTestPQConnectViaLink
     describe "enable PQ before connection, connect via contact address" $ pqMatrix2 runTestPQConnectViaAddress
+    describe "connect via invitation link with PQ encryption enabled" $ pqVersionTestMatrix2 runTestPQVersionsViaLink
+    describe "connect via contact address with PQ encryption enabled" $ pqVersionTestMatrix2 runTestPQVersionsViaAddress
     it "should enable PQ after several messages in connection without PQ" testPQEnableContact
     it "should enable PQ, reduce envelope size and enable compression" testPQEnableContactCompression
   where
@@ -2821,6 +2823,79 @@ runTestPQConnectViaAddress (alice, aPQ) (bob, bPQ) = do
     pqSend = if pqEnabled then (+#>) else (\#>)
     e2eeInfo = if pqEnabled then e2eeInfoPQStr else e2eeInfoNoPQStr
 
+runTestPQVersionsViaLink :: HasCallStack => TestCC -> TestCC -> Bool -> VersionChat -> IO ()
+runTestPQVersionsViaLink alice bob pqExpected vExpected = do
+  img <- genProfileImgForLink
+  let profileImage = "data:image/png;base64," <> B.unpack img
+  alice `send` ("/set profile image " <> profileImage)
+  _trimmedCmd1 <- getTermLine alice
+  alice <## "profile image updated"
+  bob `send` ("/set profile image " <> profileImage)
+  _trimmedCmd2 <- getTermLine bob
+  bob <## "profile image updated"
+
+  pqOn alice
+  pqOn bob
+
+  connectUsers alice bob
+
+  (alice, "hi", vExpected) `pqSend` (bob, vExpected)
+  (bob, "hey", vExpected) `pqSend` (alice, vExpected)
+
+  alice ##> "/_get chat @2 count=100"
+  ra <- chat <$> getTermLine alice
+  ra `shouldContain` [(0, e2eeInfo)]
+  alice `pqForContact` 2 `shouldReturn` PQEncryption pqExpected
+
+  bob ##> "/_get chat @2 count=100"
+  rb <- chat <$> getTermLine bob
+  rb `shouldContain` [(0, e2eeInfo)]
+  bob `pqForContact` 2 `shouldReturn` PQEncryption pqExpected
+  where
+    pqSend = if pqExpected then (+:#>) else (\:#>)
+    e2eeInfo = if pqExpected then e2eeInfoPQStr else e2eeInfoNoPQStr
+
+runTestPQVersionsViaAddress :: HasCallStack => TestCC -> TestCC -> Bool -> VersionChat -> IO ()
+runTestPQVersionsViaAddress alice bob pqExpected vExpected = do
+  img <- genProfileImgForAddress
+  let profileImage = "data:image/png;base64," <> B.unpack img
+  alice `send` ("/set profile image " <> profileImage)
+  _trimmedCmd1 <- getTermLine alice
+  alice <## "profile image updated"
+  bob `send` ("/set profile image " <> profileImage)
+  _trimmedCmd2 <- getTermLine bob
+  bob <## "profile image updated"
+
+  pqOn alice
+  pqOn bob
+
+  alice ##> "/ad"
+  cLink <- getContactLink alice True
+  bob ##> ("/c " <> cLink)
+  alice <#? bob
+  alice @@@ [("<@bob", "")]
+  alice ##> "/ac bob"
+  alice <## "bob (Bob): accepting contact request..."
+  concurrently_
+    (bob <## "alice (Alice): contact is connected")
+    (alice <## "bob (Bob): contact is connected")
+
+  (alice, "hi", vExpected) `pqSend` (bob, vExpected)
+  (bob, "hey", vExpected) `pqSend` (alice, vExpected)
+
+  alice ##> "/_get chat @2 count=100"
+  ra <- chat <$> getTermLine alice
+  ra `shouldContain` [(0, e2eeInfo)]
+  alice `pqForContact` 2 `shouldReturn` PQEncryption pqExpected
+
+  bob ##> "/_get chat @2 count=100"
+  rb <- chat <$> getTermLine bob
+  rb `shouldContain` [(0, e2eeInfo)]
+  bob `pqForContact` 2 `shouldReturn` PQEncryption pqExpected
+  where
+    pqSend = if pqExpected then (+:#>) else (\:#>)
+    e2eeInfo = if pqExpected then e2eeInfoPQStr else e2eeInfoNoPQStr
+
 testPQEnableContact :: HasCallStack => FilePath -> IO ()
 testPQEnableContact =
   testChat2 aliceProfile bobProfile $ \alice bob -> do
diff --git a/tests/ChatTests/Utils.hs b/tests/ChatTests/Utils.hs
index 21993d11ef..16a75377fd 100644
--- a/tests/ChatTests/Utils.hs
+++ b/tests/ChatTests/Utils.hs
@@ -13,6 +13,7 @@ import Control.Concurrent.Async (concurrently_)
 import Control.Concurrent.STM
 import Control.Monad (unless, when)
 import Control.Monad.Except (runExceptT)
+import Data.ByteString (ByteString)
 import qualified Data.ByteString.Base64 as B64
 import qualified Data.ByteString.Char8 as B
 import Data.Char (isDigit)
@@ -128,6 +129,23 @@ pqMatrix2 runTest = do
   where
     test aPQ bPQ = testChat2 aliceProfile bobProfile $ \a b -> runTest (a, aPQ) (b, bPQ)
 
+pqVersionTestMatrix2 :: (HasCallStack => TestCC -> TestCC -> Bool -> VersionChat -> IO ()) -> SpecWith FilePath
+pqVersionTestMatrix2 runTest = do
+  it "current" $ testChat2 aliceProfile bobProfile (runTest' True pqEncryptionCompressionVersion)
+  it "prev" $ testChatCfg2 testCfgVPrev aliceProfile bobProfile (runTest' False (VersionChat 6))
+  it "prev to curr" $ runTestCfg2 testCfg testCfgVPrev (runTest' False (VersionChat 6))
+  it "curr to prev" $ runTestCfg2 testCfgVPrev testCfg (runTest' False (VersionChat 6))
+  it "old (1st supported)" $ testChatCfg2 testCfgV1 aliceProfile bobProfile (runTest' False (VersionChat 1))
+  it "old to curr" $ runTestCfg2 testCfg testCfgV1 (runTest' False (VersionChat 1))
+  it "curr to old" $ runTestCfg2 testCfgV1 testCfg (runTest' False (VersionChat 1))
+  it "next" $ testChatCfg2 testCfgVNext aliceProfile bobProfile (runTest' True pqEncryptionCompressionVersion)
+  it "next to curr" $ runTestCfg2 testCfg testCfgVNext (runTest' True pqEncryptionCompressionVersion)
+  it "curr to next" $ runTestCfg2 testCfgVNext testCfg (runTest' True pqEncryptionCompressionVersion)
+  it "next to prev" $ runTestCfg2 testCfgVPrev testCfgVNext (runTest' False (VersionChat 6))
+  it "prev to next" $ runTestCfg2 testCfgVNext testCfgVPrev (runTest' False (VersionChat 6))
+  where
+    runTest' pqExpected v a b = runTest a b pqExpected v
+
 withTestChatGroup3Connected :: HasCallStack => FilePath -> String -> (HasCallStack => TestCC -> IO a) -> IO a
 withTestChatGroup3Connected tmp dbPrefix action = do
   withTestChat tmp dbPrefix $ \cc -> do
@@ -236,7 +254,21 @@ sndRcvImg pqEnc enabled (cc1, msg, v1) (cc2, v2) = do
   cc2 `pqRcvForContact` 2 `shouldReturn` pqEnc
   cc2 `pqVerForContact` 2 `shouldReturn` v2
   where
-    lrgLen = maxEncodedMsgLength PQSupportOff * 3 `div` 4 - 98 -- this is max size for binary image preview given the rest of the message
+    lrgLen = maxEncodedMsgLength PQSupportOff * 3 `div` 4 - 110 -- 98 is ~ max size for binary image preview given the rest of the message
+
+genProfileImgForLink :: IO ByteString
+genProfileImgForLink = do
+  g <- C.newRandom
+  atomically $ B64.encode <$> C.randomBytes lrgLen g
+  where
+    lrgLen = maxConnInfoLength PQSupportOff * 3 `div` 4 - 240 -- 214 is the magic number to make tests pass (10737)
+
+genProfileImgForAddress :: IO ByteString
+genProfileImgForAddress = do
+  g <- C.newRandom
+  atomically $ B64.encode <$> C.randomBytes lrgLen g
+  where
+    lrgLen = maxConnInfoLength PQSupportOff * 3 `div` 4 - 260 -- 238 is the magic number to make tests pass (10713)
 
 -- PQ combinators /