diff --git a/app/scripts/app-init.js b/app/scripts/app-init.js
index 9da5414ff015..7abad9ad9957 100644
--- a/app/scripts/app-init.js
+++ b/app/scripts/app-init.js
@@ -6,6 +6,11 @@ let scriptsLoadInitiated = false;
 const { chrome } = globalThis;
 const testMode = process.env.IN_TEST;
 
+/**
+ * @type {globalThis.stateHooks}
+ */
+globalThis.stateHooks = globalThis.stateHooks || {};
+
 const loadTimeLogs = [];
 // eslint-disable-next-line import/unambiguous
 function tryImport(...fileNames) {
@@ -184,12 +189,32 @@ const registerInPageContentScript = async () => {
   }
 };
 
-chrome.runtime.onInstalled.addListener(function (details) {
+/**
+ * `onInstalled` event handler.
+ *
+ * On MV3 builds we must listen for this event in `app-init`, otherwise we found that the listener
+ * is never called.
+ * For MV2 builds, the listener is added in `background.js` instead.
+ *
+ * @param {chrome.runtime.InstalledDetails} details - Event details.
+ */
+function onInstalledListener(details) {
   if (details.reason === 'install') {
-    chrome.storage.session.set({ isFirstTimeInstall: true });
-  } else if (details.reason === 'update') {
-    chrome.storage.session.set({ isFirstTimeInstall: false });
+    // This condition is for when `background.js` was loaded before the `onInstalled` listener was
+    // called.
+    if (globalThis.stateHooks.metamaskTriggerOnInstall) {
+      globalThis.stateHooks.metamaskTriggerOnInstall();
+      // Delete just to clean up global namespace
+      delete globalThis.stateHooks.metamaskTriggerOnInstall;
+      // This condition is for when the `onInstalled` listener in `app-init` was called before
+      // `background.js` was loaded.
+    } else {
+      globalThis.stateHooks.metamaskWasJustInstalled = true;
+    }
+    chrome.runtime.onInstalled.removeListener(onInstalledListener);
   }
-});
+}
+
+chrome.runtime.onInstalled.addListener(onInstalledListener);
 
 registerInPageContentScript();
diff --git a/app/scripts/background.js b/app/scripts/background.js
index 96f16cd95a4e..4ab0b6ff486f 100644
--- a/app/scripts/background.js
+++ b/app/scripts/background.js
@@ -141,22 +141,35 @@ const PHISHING_WARNING_PAGE_TIMEOUT = ONE_SECOND_IN_MILLISECONDS;
 // Event emitter for state persistence
 export const statePersistenceEvents = new EventEmitter();
 
-if (isFirefox) {
-  browser.runtime.onInstalled.addListener(function (details) {
-    if (details.reason === 'install') {
-      browser.storage.session.set({ isFirstTimeInstall: true });
-    } else if (details.reason === 'update') {
-      browser.storage.session.set({ isFirstTimeInstall: false });
-    }
-  });
-} else if (!isManifestV3) {
-  browser.runtime.onInstalled.addListener(function (details) {
+if (!isManifestV3) {
+  /**
+   * `onInstalled` event handler.
+   *
+   * On MV3 builds we must listen for this event in `app-init`, otherwise we found that the listener
+   * is never called.
+   * There is no `app-init` file on MV2 builds, so we add a listener here instead.
+   *
+   * @param {import('webextension-polyfill').Runtime.OnInstalledDetailsType} details - Event details.
+   */
+  const onInstalledListener = (details) => {
     if (details.reason === 'install') {
-      global.sessionStorage.setItem('isFirstTimeInstall', true);
-    } else if (details.reason === 'update') {
-      global.sessionStorage.setItem('isFirstTimeInstall', false);
+      onInstall();
+      browser.runtime.onInstalled.removeListener(onInstalledListener);
     }
-  });
+  };
+
+  browser.runtime.onInstalled.addListener(onInstalledListener);
+
+  // This condition is for when the `onInstalled` listener in `app-init` was called before
+  // `background.js` was loaded.
+} else if (globalThis.stateHooks.metamaskWasJustInstalled) {
+  onInstall();
+  // Delete just to clean up global namespace
+  delete globalThis.stateHooks.metamaskWasJustInstalled;
+  // This condition is for when `background.js` was loaded before the `onInstalled` listener was
+  // called.
+} else {
+  globalThis.stateHooks.metamaskTriggerOnInstall = () => onInstall();
 }
 
 /**
@@ -505,12 +518,6 @@ async function initialize() {
     await sendReadyMessageToTabs();
     log.info('MetaMask initialization complete.');
 
-    if (isManifestV3 || isFirefox) {
-      browser.storage.session.set({ isFirstTimeInstall: false });
-    } else {
-      global.sessionStorage.setItem('isFirstTimeInstall', false);
-    }
-
     resolveInitialization();
   } catch (error) {
     rejectInitialization(error);
@@ -1286,24 +1293,15 @@ const addAppInstalledEvent = () => {
   }, 500);
 };
 
-// On first install, open a new tab with MetaMask
-async function onInstall() {
-  const sessionData =
-    isManifestV3 || isFirefox
-      ? await browser.storage.session.get(['isFirstTimeInstall'])
-      : await global.sessionStorage.getItem('isFirstTimeInstall');
-
-  const isFirstTimeInstall = sessionData?.isFirstTimeInstall;
-
-  if (process.env.IN_TEST) {
-    addAppInstalledEvent();
-  } else if (!isFirstTimeInstall && !process.env.METAMASK_DEBUG) {
-    // If storeAlreadyExisted is true then this is a fresh installation
-    // and an app installed event should be tracked.
-    addAppInstalledEvent();
+/**
+ * Trigger actions that should happen only upon initial install (e.g. open tab for onboarding).
+ */
+function onInstall() {
+  log.debug('First install detected');
+  addAppInstalledEvent();
+  if (!process.env.IN_TEST && !process.env.METAMASK_DEBUG) {
     platform.openExtensionInBrowser();
   }
-  onNavigateToTab();
 }
 
 function onNavigateToTab() {
@@ -1334,7 +1332,7 @@ function setupSentryGetStateGlobal(store) {
 }
 
 async function initBackground() {
-  await onInstall();
+  onNavigateToTab();
   try {
     await initialize();
     if (process.env.IN_TEST) {
diff --git a/types/global.d.ts b/types/global.d.ts
index f18db580d6eb..dfdadbe8fc65 100644
--- a/types/global.d.ts
+++ b/types/global.d.ts
@@ -250,6 +250,16 @@ type StateHooks = {
   metamaskGetState?: () => Promise<any>;
   throwTestBackgroundError?: (msg?: string) => Promise<void>;
   throwTestError?: (msg?: string) => void;
+  /**
+   * This is set in `app-init.js` to communicate that MetaMask was just installed, and is read in
+   * `background.js`.
+   */
+  metamaskWasJustInstalled?: boolean;
+  /**
+   * This is set in `background.js` so that `app-init.js` can trigger "on install" actions when
+   * the `onInstalled` listener is called.
+   */
+  metamaskTriggerOnInstall?: () => void;
 };
 
 export declare global {