diff --git a/cabal.project b/cabal.project
index a0114d703c..9bbbfda98d 100644
--- a/cabal.project
+++ b/cabal.project
@@ -7,7 +7,7 @@ constraints: zip +disable-bzip2 +disable-zstd
 source-repository-package
     type: git
     location: https://github.com/simplex-chat/simplexmq.git
-    tag: c2342cba057fa2333b5936a2254507b5b62e8de2
+    tag: e4842f4f47fb60ef8843dbce6fd43dec96f157d2
 
 source-repository-package
     type: git
diff --git a/scripts/nix/sha256map.nix b/scripts/nix/sha256map.nix
index df4df503b4..088650ba66 100644
--- a/scripts/nix/sha256map.nix
+++ b/scripts/nix/sha256map.nix
@@ -1,5 +1,5 @@
 {
-  "https://github.com/simplex-chat/simplexmq.git"."c2342cba057fa2333b5936a2254507b5b62e8de2" = "0fsi4lgq5x3dgy79g85s7isg3387ppwrqm4v8dndixlxn8cx3pyp";
+  "https://github.com/simplex-chat/simplexmq.git"."e4842f4f47fb60ef8843dbce6fd43dec96f157d2" = "191h2v5jcn51haj0mi5y5pm8x8fi9pz49ydxwwzqr3m6zjp21ngg";
   "https://github.com/simplex-chat/direct-sqlcipher.git"."34309410eb2069b029b8fc1872deb1e0db123294" = "0kwkmhyfsn2lixdlgl15smgr1h5gjk7fky6abzh8rng2h5ymnffd";
   "https://github.com/simplex-chat/sqlcipher-simple.git"."5e154a2aeccc33ead6c243ec07195ab673137221" = "1d1gc5wax4vqg0801ajsmx1sbwvd9y7p7b8mmskvqsmpbwgbh0m0";
   "https://github.com/simplex-chat/aeson.git"."3eb66f9a68f103b5f1489382aad89f5712a64db7" = "0kilkx59fl6c3qy3kjczqvm8c3f4n3p0bdk9biyflf51ljnzp4yp";
diff --git a/src/Simplex/Chat/View.hs b/src/Simplex/Chat/View.hs
index 1beefafc99..b1e35c2414 100644
--- a/src/Simplex/Chat/View.hs
+++ b/src/Simplex/Chat/View.hs
@@ -650,9 +650,12 @@ viewSMPTestResult = \case
   Just SMPTestFailure {testStep, testError} ->
     result
       <> ["Server requires authorization to create queues, check password" | testStep == TSCreateQueue && testError == SMP SMP.AUTH]
-      <> ["Possibly, certificate fingerprint in server address is incorrect" | testStep == TSConnect && testError == BROKER NETWORK]
+      <> ["Possibly, certificate fingerprint in server address is incorrect" | testStep == TSConnect && brokerErr]
     where
       result = ["SMP server test failed at " <> plain (drop 2 $ show testStep) <> ", error: " <> plain (strEncode testError)]
+      brokerErr = case testError of
+        BROKER _ NETWORK -> True
+        _ -> False
   _ -> ["SMP server test passed"]
 
 viewChatItemTTL :: Maybe Int64 -> [StyledString]
diff --git a/stack.yaml b/stack.yaml
index 0881e42ee8..ca7450fedf 100644
--- a/stack.yaml
+++ b/stack.yaml
@@ -49,7 +49,7 @@ extra-deps:
   # - simplexmq-1.0.0@sha256:34b2004728ae396e3ae449cd090ba7410781e2b3cefc59259915f4ca5daa9ea8,8561
   # - ../simplexmq
   - github: simplex-chat/simplexmq
-    commit: c2342cba057fa2333b5936a2254507b5b62e8de2
+    commit: e4842f4f47fb60ef8843dbce6fd43dec96f157d2
   # - ../direct-sqlcipher
   - github: simplex-chat/direct-sqlcipher
     commit: 34309410eb2069b029b8fc1872deb1e0db123294
diff --git a/tests/ChatClient.hs b/tests/ChatClient.hs
index 3af1fcbad9..f64a303f07 100644
--- a/tests/ChatClient.hs
+++ b/tests/ChatClient.hs
@@ -276,6 +276,7 @@ serverCfg =
       storeLogFile = Nothing,
       storeMsgsFile = Nothing,
       allowNewQueues = True,
+      -- server password is disabled as otherwise v1 tests fail
       newQueueBasicAuth = Nothing, -- Just "server_password",
       messageExpiration = Just defaultMessageExpiration,
       inactiveClientExpiration = Just defaultInactiveClientExpiration,
diff --git a/tests/ChatTests.hs b/tests/ChatTests.hs
index 3159e75e29..543a3c8b8d 100644
--- a/tests/ChatTests.hs
+++ b/tests/ChatTests.hs
@@ -3178,10 +3178,13 @@ testTestSMPServerConnection =
     \alice _ -> do
       alice ##> "/smp test smp://LcJUMfVhwD8yxjAiSaDzzGF3-kLG4Uh0Fl_ZIjrRwjI=@localhost:5001"
       alice <## "SMP server test passed"
+      -- to test with password:
+      -- alice <## "SMP server test failed at CreateQueue, error: SMP AUTH"
+      -- alice <## "Server requires authorization to create queues, check password"
       alice ##> "/smp test smp://LcJUMfVhwD8yxjAiSaDzzGF3-kLG4Uh0Fl_ZIjrRwjI=:server_password@localhost:5001"
       alice <## "SMP server test passed"
-      alice ##> "/smp test smp://LcJUMfVhwD8yxjAiSaDzzGF3-kLG4Uh0Fl_ZwjI=@localhost:5001"
-      alice <## "SMP server test failed at Connect, error: BROKER NETWORK"
+      alice ##> "/smp test smp://LcJU@localhost:5001"
+      alice <## ("SMP server test failed at Connect, error: BROKER smp://LcJU@localhost:5001 NETWORK")
       alice <## "Possibly, certificate fingerprint in server address is incorrect"
 
 testAsyncInitiatingOffline :: IO ()