diff --git a/authenticator/libs/authenticatorbridge-1.0.0-release.aar b/authenticator/libs/authenticatorbridge-1.0.0-release.aar
index 58a7c494b0..bc793ddbb5 100644
Binary files a/authenticator/libs/authenticatorbridge-1.0.0-release.aar and b/authenticator/libs/authenticatorbridge-1.0.0-release.aar differ
diff --git a/authenticator/src/main/kotlin/com/bitwarden/authenticator/data/authenticator/repository/AuthenticatorRepositoryImpl.kt b/authenticator/src/main/kotlin/com/bitwarden/authenticator/data/authenticator/repository/AuthenticatorRepositoryImpl.kt
index 0804a0b35d..d577506c3e 100644
--- a/authenticator/src/main/kotlin/com/bitwarden/authenticator/data/authenticator/repository/AuthenticatorRepositoryImpl.kt
+++ b/authenticator/src/main/kotlin/com/bitwarden/authenticator/data/authenticator/repository/AuthenticatorRepositoryImpl.kt
@@ -40,6 +40,7 @@ import kotlinx.coroutines.flow.StateFlow
 import kotlinx.coroutines.flow.asSharedFlow
 import kotlinx.coroutines.flow.asStateFlow
 import kotlinx.coroutines.flow.firstOrNull
+import kotlinx.coroutines.flow.flatMapConcat
 import kotlinx.coroutines.flow.flatMapLatest
 import kotlinx.coroutines.flow.flowOf
 import kotlinx.coroutines.flow.launchIn
@@ -155,44 +156,22 @@ class AuthenticatorRepositoryImpl @Inject constructor(
 
     @OptIn(ExperimentalCoroutinesApi::class)
     override val sharedCodesStateFlow: StateFlow<SharedVerificationCodesState> by lazy {
-        if (!featureFlagManager.getFeatureFlag(FlagKey.PasswordManagerSync)) {
-            MutableStateFlow(SharedVerificationCodesState.FeatureNotEnabled)
-        } else {
-            authenticatorBridgeManager
-                .accountSyncStateFlow
-                .flatMapLatest { accountSyncState ->
-                    when (accountSyncState) {
-                        AccountSyncState.AppNotInstalled ->
-                            MutableStateFlow(SharedVerificationCodesState.AppNotInstalled)
-
-                        AccountSyncState.SyncNotEnabled ->
-                            MutableStateFlow(SharedVerificationCodesState.SyncNotEnabled)
-
-                        AccountSyncState.Error ->
-                            MutableStateFlow(SharedVerificationCodesState.Error)
-
-                        AccountSyncState.Loading ->
-                            MutableStateFlow(SharedVerificationCodesState.Loading)
-
-                        AccountSyncState.OsVersionNotSupported -> MutableStateFlow(
-                            SharedVerificationCodesState.OsVersionNotSupported,
-                        )
-
-                        is AccountSyncState.Success -> {
-                            val verificationCodesList =
-                                accountSyncState.accounts.toAuthenticatorItems()
-                            totpCodeManager
-                                .getTotpCodesFlow(verificationCodesList)
-                                .map { SharedVerificationCodesState.Success(it) }
-                        }
-                    }
+        featureFlagManager
+            .getFeatureFlagFlow(FlagKey.PasswordManagerSync)
+            .flatMapLatest { isFeatureEnabled ->
+                if (isFeatureEnabled) {
+                    authenticatorBridgeManager
+                        .accountSyncStateFlow
+                        .flatMapConcat { it.toSharedVerificationCodesStateFlow() }
+                } else {
+                    flowOf(SharedVerificationCodesState.FeatureNotEnabled)
                 }
-                .stateIn(
-                    scope = unconfinedScope,
-                    started = SharingStarted.WhileSubscribed(),
-                    initialValue = SharedVerificationCodesState.Loading,
-                )
-        }
+            }
+            .stateIn(
+                scope = unconfinedScope,
+                started = SharingStarted.WhileSubscribed(STOP_TIMEOUT_DELAY_MS),
+                initialValue = SharedVerificationCodesState.Loading,
+            )
     }
 
     @OptIn(ExperimentalCoroutinesApi::class)
@@ -298,6 +277,33 @@ class AuthenticatorRepositoryImpl @Inject constructor(
     override val firstTimeAccountSyncFlow: Flow<Unit>
         get() = firstTimeAccountSyncChannel.receiveAsFlow()
 
+    @Suppress("MaxLineLength")
+    private fun AccountSyncState.toSharedVerificationCodesStateFlow(): Flow<SharedVerificationCodesState> =
+        when (this) {
+            AccountSyncState.AppNotInstalled ->
+                flowOf(SharedVerificationCodesState.AppNotInstalled)
+
+            AccountSyncState.SyncNotEnabled ->
+                flowOf(SharedVerificationCodesState.SyncNotEnabled)
+
+            AccountSyncState.Error ->
+                flowOf(SharedVerificationCodesState.Error)
+
+            AccountSyncState.Loading ->
+                flowOf(SharedVerificationCodesState.Loading)
+
+            AccountSyncState.OsVersionNotSupported -> flowOf(
+                SharedVerificationCodesState.OsVersionNotSupported,
+            )
+
+            is AccountSyncState.Success -> {
+                val verificationCodesList = accounts.toAuthenticatorItems()
+                totpCodeManager
+                    .getTotpCodesFlow(verificationCodesList)
+                    .map { SharedVerificationCodesState.Success(it) }
+            }
+        }
+
     private suspend fun encodeVaultDataToCsv(fileUri: Uri): ExportDataResult {
         val headerLine =
             "folder,favorite,type,name,login_uri,login_totp"
diff --git a/authenticator/src/test/java/com/bitwarden/authenticator/data/authenticator/repository/AuthenticatorRepositoryTest.kt b/authenticator/src/test/java/com/bitwarden/authenticator/data/authenticator/repository/AuthenticatorRepositoryTest.kt
index 5a8d3dcf4a..33000f3f05 100644
--- a/authenticator/src/test/java/com/bitwarden/authenticator/data/authenticator/repository/AuthenticatorRepositoryTest.kt
+++ b/authenticator/src/test/java/com/bitwarden/authenticator/data/authenticator/repository/AuthenticatorRepositoryTest.kt
@@ -45,8 +45,14 @@ class AuthenticatorRepositoryTest {
     private val mockFileManager = mockk<FileManager>()
     private val mockImportManager = mockk<ImportManager>()
     private val mockDispatcherManager = FakeDispatcherManager()
+    private val mutablePasswordSyncFlagStateFlow = MutableStateFlow(true)
     private val mockFeatureFlagManager = mockk<FeatureFlagManager> {
-        every { getFeatureFlag(FlagKey.PasswordManagerSync) } returns true
+        every {
+            getFeatureFlagFlow(FlagKey.PasswordManagerSync)
+        } returns mutablePasswordSyncFlagStateFlow
+        every {
+            getFeatureFlag(FlagKey.PasswordManagerSync)
+        } returns mutablePasswordSyncFlagStateFlow.value
     }
     private val settingsRepository: SettingsRepository = mockk {
         every { previouslySyncedBitwardenAccountIds } returns emptySet()
@@ -84,25 +90,27 @@ class AuthenticatorRepositoryTest {
     }
 
     @Test
-    fun `sharedCodesStateFlow value should be FeatureNotEnabled when feature flag is off`() {
-        every {
-            mockFeatureFlagManager.getFeatureFlag(FlagKey.PasswordManagerSync)
-        } returns false
-        val repository = AuthenticatorRepositoryImpl(
-            authenticatorDiskSource = fakeAuthenticatorDiskSource,
-            authenticatorBridgeManager = mockAuthenticatorBridgeManager,
-            featureFlagManager = mockFeatureFlagManager,
-            totpCodeManager = mockTotpCodeManager,
-            fileManager = mockFileManager,
-            importManager = mockImportManager,
-            dispatcherManager = mockDispatcherManager,
-            settingRepository = settingsRepository,
-        )
-        assertEquals(
-            SharedVerificationCodesState.FeatureNotEnabled,
-            repository.sharedCodesStateFlow.value,
-        )
-    }
+    fun `sharedCodesStateFlow value should be FeatureNotEnabled when feature flag is off`() =
+        runTest {
+            val repository = AuthenticatorRepositoryImpl(
+                authenticatorDiskSource = fakeAuthenticatorDiskSource,
+                authenticatorBridgeManager = mockAuthenticatorBridgeManager,
+                featureFlagManager = mockFeatureFlagManager,
+                totpCodeManager = mockTotpCodeManager,
+                fileManager = mockFileManager,
+                importManager = mockImportManager,
+                dispatcherManager = mockDispatcherManager,
+                settingRepository = settingsRepository,
+            )
+            mutablePasswordSyncFlagStateFlow.value = false
+            mutableAccountSyncStateFlow.value = AccountSyncState.Success(emptyList())
+            repository.sharedCodesStateFlow.test {
+                assertEquals(
+                    SharedVerificationCodesState.FeatureNotEnabled,
+                    awaitItem(),
+                )
+            }
+        }
 
     @Test
     fun `ciphersStateFlow should emit sorted authenticator items when disk source changes`() =
@@ -117,9 +125,6 @@ class AuthenticatorRepositoryTest {
 
     @Test
     fun `sharedCodesStateFlow should emit FeatureNotEnabled when feature flag is off`() = runTest {
-        every {
-            mockFeatureFlagManager.getFeatureFlag(FlagKey.PasswordManagerSync)
-        } returns false
         val repository = AuthenticatorRepositoryImpl(
             authenticatorDiskSource = fakeAuthenticatorDiskSource,
             authenticatorBridgeManager = mockAuthenticatorBridgeManager,
@@ -130,6 +135,7 @@ class AuthenticatorRepositoryTest {
             dispatcherManager = mockDispatcherManager,
             settingRepository = settingsRepository,
         )
+        mutablePasswordSyncFlagStateFlow.value = false
         repository.sharedCodesStateFlow.test {
             assertEquals(
                 SharedVerificationCodesState.FeatureNotEnabled,
diff --git a/authenticatorbridge/src/main/java/com/bitwarden/authenticatorbridge/manager/AuthenticatorBridgeManagerImpl.kt b/authenticatorbridge/src/main/java/com/bitwarden/authenticatorbridge/manager/AuthenticatorBridgeManagerImpl.kt
index 95116ce5ab..e9edccf509 100644
--- a/authenticatorbridge/src/main/java/com/bitwarden/authenticatorbridge/manager/AuthenticatorBridgeManagerImpl.kt
+++ b/authenticatorbridge/src/main/java/com/bitwarden/authenticatorbridge/manager/AuthenticatorBridgeManagerImpl.kt
@@ -156,6 +156,13 @@ internal class AuthenticatorBridgeManagerImpl(
 
         if (!isBound) {
             mutableSharedAccountsStateFlow.value = AccountSyncState.Error
+        } else if (mutableSharedAccountsStateFlow.value == AccountSyncState.AppNotInstalled) {
+            // This scenario occurs when the Authenticator is installed before Bitwarden, because
+            // `AppNotInstalled` is the initial state. Binding to the service simply means Bitwarden
+            // is installed, but does not indicate whether syncing is enabled. When/if syncing is
+            // toggled in Bitwarden, `onServiceConnected` will be invoked and the state
+            // will be updated.
+            mutableSharedAccountsStateFlow.value = AccountSyncState.SyncNotEnabled
         }
     }