diff --git a/packages/twenty-front/src/modules/object-record/components/RecordChip.tsx b/packages/twenty-front/src/modules/object-record/components/RecordChip.tsx
index ad5cc2217..ea27165a1 100644
--- a/packages/twenty-front/src/modules/object-record/components/RecordChip.tsx
+++ b/packages/twenty-front/src/modules/object-record/components/RecordChip.tsx
@@ -2,7 +2,6 @@ import { EntityChip, EntityChipVariant } from 'twenty-ui';
 
 import { useMapToObjectRecordIdentifier } from '@/object-metadata/hooks/useMapToObjectRecordIdentifier';
 import { ObjectRecord } from '@/object-record/types/ObjectRecord';
-import { getImageAbsoluteURIOrBase64 } from '~/utils/image/getImageAbsoluteURIOrBase64';
 
 export type RecordChipProps = {
   objectNameSingular: string;
@@ -28,9 +27,7 @@ export const RecordChip = ({
       entityId={record.id}
       name={objectRecordIdentifier.name}
       avatarType={objectRecordIdentifier.avatarType}
-      avatarUrl={
-        getImageAbsoluteURIOrBase64(objectRecordIdentifier.avatarUrl) || ''
-      }
+      avatarUrl={objectRecordIdentifier.avatarUrl ?? ''}
       linkToEntity={objectRecordIdentifier.linkToShowPage}
       className={className}
       variant={variant}
diff --git a/packages/twenty-front/src/modules/object-record/record-field/meta-types/display/components/ChipFieldDisplay.tsx b/packages/twenty-front/src/modules/object-record/record-field/meta-types/display/components/ChipFieldDisplay.tsx
index 30fdcb7a7..12d9b3ec7 100644
--- a/packages/twenty-front/src/modules/object-record/record-field/meta-types/display/components/ChipFieldDisplay.tsx
+++ b/packages/twenty-front/src/modules/object-record/record-field/meta-types/display/components/ChipFieldDisplay.tsx
@@ -1,7 +1,6 @@
 import { EntityChip } from 'twenty-ui';
 
 import { useChipFieldDisplay } from '@/object-record/record-field/meta-types/hooks/useChipFieldDisplay';
-import { getImageAbsoluteURIOrBase64 } from '~/utils/image/getImageAbsoluteURIOrBase64';
 
 export const ChipFieldDisplay = () => {
   const { recordValue, generateRecordChipData } = useChipFieldDisplay();
@@ -17,7 +16,7 @@ export const ChipFieldDisplay = () => {
       entityId={recordValue.id}
       name={recordChipData.name as any}
       avatarType={recordChipData.avatarType}
-      avatarUrl={getImageAbsoluteURIOrBase64(recordChipData.avatarUrl) ?? ''}
+      avatarUrl={recordChipData.avatarUrl ?? ''}
       linkToEntity={recordChipData.linkToShowPage}
     />
   );
diff --git a/packages/twenty-ui/src/display/avatar/components/Avatar.tsx b/packages/twenty-ui/src/display/avatar/components/Avatar.tsx
index d7024b347..1e480c799 100644
--- a/packages/twenty-ui/src/display/avatar/components/Avatar.tsx
+++ b/packages/twenty-ui/src/display/avatar/components/Avatar.tsx
@@ -1,7 +1,8 @@
-import { useState } from 'react';
 import { isNonEmptyString, isUndefined } from '@sniptt/guards';
 import clsx from 'clsx';
+import { useRecoilState } from 'recoil';
 
+import { invalidAvatarUrlsState } from '@ui/display/avatar/components/states/isInvalidAvatarUrlState';
 import { Nullable, stringToHslColor } from '@ui/utilities';
 
 import styles from './Avatar.module.css';
@@ -55,16 +56,20 @@ export const Avatar = ({
   color,
   backgroundColor,
 }: AvatarProps) => {
-  const [isInvalidAvatarUrl, setIsInvalidAvatarUrl] = useState(false);
+  const [invalidAvatarUrls, setInvalidAvatarUrls] = useRecoilState(
+    invalidAvatarUrlsState,
+  );
 
   const noAvatarUrl = !isNonEmptyString(avatarUrl);
 
   const placeholderChar = placeholder?.[0]?.toLocaleUpperCase();
 
-  const showPlaceholder = noAvatarUrl || isInvalidAvatarUrl;
+  const showPlaceholder = noAvatarUrl || invalidAvatarUrls.includes(avatarUrl);
 
   const handleImageError = () => {
-    setIsInvalidAvatarUrl(true);
+    if (isNonEmptyString(avatarUrl)) {
+      setInvalidAvatarUrls((prev) => [...prev, avatarUrl]);
+    }
   };
 
   const fixedColor = color ?? stringToHslColor(entityId ?? '', 75, 25);
diff --git a/packages/twenty-ui/src/display/avatar/components/states/isInvalidAvatarUrlState.ts b/packages/twenty-ui/src/display/avatar/components/states/isInvalidAvatarUrlState.ts
new file mode 100644
index 000000000..13d410a6f
--- /dev/null
+++ b/packages/twenty-ui/src/display/avatar/components/states/isInvalidAvatarUrlState.ts
@@ -0,0 +1,6 @@
+import { atom } from 'recoil';
+
+export const invalidAvatarUrlsState = atom<string[]>({
+  key: 'invalidAvatarUrlsState',
+  default: [],
+});
diff --git a/packages/twenty-ui/src/display/index.ts b/packages/twenty-ui/src/display/index.ts
index 74833f5db..d00a241a8 100644
--- a/packages/twenty-ui/src/display/index.ts
+++ b/packages/twenty-ui/src/display/index.ts
@@ -1,5 +1,6 @@
 export * from './avatar/components/Avatar';
 export * from './avatar/components/AvatarGroup';
+export * from './avatar/components/states/isInvalidAvatarUrlState';
 export * from './checkmark/components/AnimatedCheckmark';
 export * from './checkmark/components/Checkmark';
 export * from './chip/components/Chip';