diff --git a/app/src/main/java/org/mozilla/fenix/home/sessioncontrol/SessionControlController.kt b/app/src/main/java/org/mozilla/fenix/home/sessioncontrol/SessionControlController.kt
index fbbebe4b953e..498430bd32cd 100644
--- a/app/src/main/java/org/mozilla/fenix/home/sessioncontrol/SessionControlController.kt
+++ b/app/src/main/java/org/mozilla/fenix/home/sessioncontrol/SessionControlController.kt
@@ -510,16 +510,18 @@ class DefaultSessionControlController(
     }
 
     override fun handleShowWallpapersOnboardingDialog(state: WallpaperState): Boolean {
-        if (state.availableWallpapers.all { it.thumbnailFileState == Wallpaper.ImageFileState.Downloaded } &&
-            state.availableWallpapers.size >= WallpaperOnboardingDialogFragment.THUMBNAILS_COUNT
-        ) {
-            navController.nav(
-                R.id.homeFragment,
-                HomeFragmentDirections.actionGlobalWallpaperOnboardingDialog(),
-            )
-            return true
+        return state.availableWallpapers.filter { wallpaper ->
+            wallpaper.thumbnailFileState == Wallpaper.ImageFileState.Downloaded
+        }.size.let { downloadedCount ->
+            downloadedCount >= WallpaperOnboardingDialogFragment.THUMBNAILS_COUNT
+        }.also { isThumbnailsDownloaded ->
+            if (isThumbnailsDownloaded) {
+                navController.nav(
+                    R.id.homeFragment,
+                    HomeFragmentDirections.actionGlobalWallpaperOnboardingDialog(),
+                )
+            }
         }
-        return false
     }
 
     override fun handleReadPrivacyNoticeClicked() {
diff --git a/app/src/test/java/org/mozilla/fenix/home/DefaultSessionControlControllerTest.kt b/app/src/test/java/org/mozilla/fenix/home/DefaultSessionControlControllerTest.kt
index e5ae5cee8ac9..907a7e25883a 100644
--- a/app/src/test/java/org/mozilla/fenix/home/DefaultSessionControlControllerTest.kt
+++ b/app/src/test/java/org/mozilla/fenix/home/DefaultSessionControlControllerTest.kt
@@ -71,8 +71,11 @@ import org.mozilla.fenix.helpers.FenixRobolectricTestRunner
 import org.mozilla.fenix.home.recentbookmarks.RecentBookmark
 import org.mozilla.fenix.home.recenttabs.RecentTab
 import org.mozilla.fenix.home.sessioncontrol.DefaultSessionControlController
+import org.mozilla.fenix.onboarding.WallpaperOnboardingDialogFragment
 import org.mozilla.fenix.settings.SupportUtils
 import org.mozilla.fenix.utils.Settings
+import org.mozilla.fenix.wallpapers.Wallpaper
+import org.mozilla.fenix.wallpapers.WallpaperState
 import mozilla.components.feature.tab.collections.Tab as ComponentTab
 
 @RunWith(FenixRobolectricTestRunner::class) // For gleanTestRule
@@ -878,6 +881,61 @@ class DefaultSessionControlControllerTest {
         assertNull(TopSites.remove.testGetValue()!!.single().extra)
     }
 
+    @Test
+    fun `GIVEN exactly the required amount of downloaded thumbnails WHEN has no errors THEN handleShowWallpapersOnboardingDialog calls the dialog`() {
+        val wallpaperState = WallpaperState.default.copy(
+            availableWallpapers = makeFakeRemoteWallpapers(
+                WallpaperOnboardingDialogFragment.THUMBNAILS_COUNT,
+                false,
+            ),
+        )
+        assert(createController().handleShowWallpapersOnboardingDialog(wallpaperState))
+    }
+
+    @Test
+    fun `GIVEN more than required amount of downloaded thumbnails WHEN has no errors THEN handleShowWallpapersOnboardingDialog calls the dialog`() {
+        val wallpaperState = WallpaperState.default.copy(
+            availableWallpapers = makeFakeRemoteWallpapers(
+                WallpaperOnboardingDialogFragment.THUMBNAILS_COUNT,
+                false,
+            ),
+        )
+        assert(createController().handleShowWallpapersOnboardingDialog(wallpaperState))
+    }
+
+    @Test
+    fun `GIVEN more than required amount of downloaded thumbnails WHEN also has some errors THEN the dialog is called`() {
+        val wallpaperState = WallpaperState.default.copy(
+            availableWallpapers = makeFakeRemoteWallpapers(
+                WallpaperOnboardingDialogFragment.THUMBNAILS_COUNT + 2,
+                true,
+            ),
+        )
+        assert(createController().handleShowWallpapersOnboardingDialog(wallpaperState))
+    }
+
+    @Test
+    fun `GIVEN less than required amount of downloaded thumbnails THEN the dialog is not called`() {
+        val wallpaperState = WallpaperState.default.copy(
+            availableWallpapers = makeFakeRemoteWallpapers(
+                WallpaperOnboardingDialogFragment.THUMBNAILS_COUNT - 1,
+                false,
+            ),
+        )
+        assert(!createController().handleShowWallpapersOnboardingDialog(wallpaperState))
+    }
+
+    @Test
+    fun `GIVEN exactly the required amount of downloaded thumbnails WHEN has errors THEN the dialog is not called`() {
+        val wallpaperState = WallpaperState.default.copy(
+            availableWallpapers = makeFakeRemoteWallpapers(
+                WallpaperOnboardingDialogFragment.THUMBNAILS_COUNT,
+                true,
+            ),
+        )
+        assert(!createController().handleShowWallpapersOnboardingDialog(wallpaperState))
+    }
+
     @Test
     fun handleStartBrowsingClicked() {
         var hideOnboardingInvoked = false
@@ -1255,4 +1313,35 @@ class DefaultSessionControlControllerTest {
             showTabTray = showTabTray,
         )
     }
+
+    private fun makeFakeRemoteWallpapers(size: Int, hasError: Boolean): List<Wallpaper> {
+        val list = mutableListOf<Wallpaper>()
+        for (i in 0 until size) {
+            if (hasError && i == 0) {
+                list.add(makeFakeRemoteWallpaper(Wallpaper.ImageFileState.Error))
+            } else {
+                list.add(makeFakeRemoteWallpaper(Wallpaper.ImageFileState.Downloaded))
+            }
+        }
+        return list
+    }
+
+    private fun makeFakeRemoteWallpaper(
+        thumbnailFileState: Wallpaper.ImageFileState = Wallpaper.ImageFileState.Unavailable,
+    ) = Wallpaper(
+        name = "name",
+        collection = Wallpaper.Collection(
+            name = Wallpaper.firefoxCollectionName,
+            heading = null,
+            description = null,
+            availableLocales = null,
+            startDate = null,
+            endDate = null,
+            learnMoreUrl = null,
+        ),
+        textColor = null,
+        cardColor = null,
+        thumbnailFileState = thumbnailFileState,
+        assetsFileState = Wallpaper.ImageFileState.Unavailable,
+    )
 }