diff --git a/src/addons/messages/pages/discussion/discussion.scss b/src/addons/messages/pages/discussion/discussion.scss
index b7a8a53df..8a1e2dd70 100644
--- a/src/addons/messages/pages/discussion/discussion.scss
+++ b/src/addons/messages/pages/discussion/discussion.scss
@@ -35,9 +35,21 @@
             padding: 0px;
 
             .core-bar-button-image {
+                --userpicture-padding: 4px;
                 @include margin-horizontal(null, 6px);
             }
 
+            // Group avatar.
+            img.core-bar-button-image {
+                padding: var(--userpicture-padding);
+                width: var(--core-header-toolbar-button-image-size);
+                height: var(--core-header-toolbar-button-image-size);
+                max-width: var(--core-header-toolbar-button-image-size);
+                max-height: var(--core-header-toolbar-button-image-size);
+                border-radius: var(--core-avatar-radius);
+                display: block;
+            }
+
             core-format-text {
                 overflow: hidden;
                 text-overflow: ellipsis;
diff --git a/src/addons/messages/tests/behat/snapshots/test-basic-usage-of-messages-in-app-view-recent-conversations-and-contacts_22.png b/src/addons/messages/tests/behat/snapshots/test-basic-usage-of-messages-in-app-view-recent-conversations-and-contacts_22.png
index fca711d9c..961648d44 100644
Binary files a/src/addons/messages/tests/behat/snapshots/test-basic-usage-of-messages-in-app-view-recent-conversations-and-contacts_22.png and b/src/addons/messages/tests/behat/snapshots/test-basic-usage-of-messages-in-app-view-recent-conversations-and-contacts_22.png differ
diff --git a/src/addons/messages/tests/behat/snapshots/test-basic-usage-of-messages-in-app-view-recent-conversations-and-contacts_30.png b/src/addons/messages/tests/behat/snapshots/test-basic-usage-of-messages-in-app-view-recent-conversations-and-contacts_30.png
index 418759cbf..80a903af6 100644
Binary files a/src/addons/messages/tests/behat/snapshots/test-basic-usage-of-messages-in-app-view-recent-conversations-and-contacts_30.png and b/src/addons/messages/tests/behat/snapshots/test-basic-usage-of-messages-in-app-view-recent-conversations-and-contacts_30.png differ
diff --git a/src/addons/mod/forum/tests/behat/snapshots/test-basic-usage-of-forum-activity-in-app-reply-a-post_14.png b/src/addons/mod/forum/tests/behat/snapshots/test-basic-usage-of-forum-activity-in-app-reply-a-post_14.png
index 2c3a9cfe5..a9133c576 100644
Binary files a/src/addons/mod/forum/tests/behat/snapshots/test-basic-usage-of-forum-activity-in-app-reply-a-post_14.png and b/src/addons/mod/forum/tests/behat/snapshots/test-basic-usage-of-forum-activity-in-app-reply-a-post_14.png differ
diff --git a/src/addons/mod/forum/tests/behat/snapshots/test-basic-usage-of-forum-activity-in-app-reply-a-post_9.png b/src/addons/mod/forum/tests/behat/snapshots/test-basic-usage-of-forum-activity-in-app-reply-a-post_9.png
index 537c64e4c..d56626909 100644
Binary files a/src/addons/mod/forum/tests/behat/snapshots/test-basic-usage-of-forum-activity-in-app-reply-a-post_9.png and b/src/addons/mod/forum/tests/behat/snapshots/test-basic-usage-of-forum-activity-in-app-reply-a-post_9.png differ
diff --git a/src/addons/mod/quiz/tests/behat/snapshots/attempt-a-quiz-in-app-submit-a-quiz--review-a-quiz-attempt_39.png b/src/addons/mod/quiz/tests/behat/snapshots/attempt-a-quiz-in-app-submit-a-quiz--review-a-quiz-attempt_39.png
index 895e1dbef..c36de5e70 100644
Binary files a/src/addons/mod/quiz/tests/behat/snapshots/attempt-a-quiz-in-app-submit-a-quiz--review-a-quiz-attempt_39.png and b/src/addons/mod/quiz/tests/behat/snapshots/attempt-a-quiz-in-app-submit-a-quiz--review-a-quiz-attempt_39.png differ
diff --git a/src/addons/notifications/notifications.scss b/src/addons/notifications/notifications.scss
index 305269884..4f4468bdf 100644
--- a/src/addons/notifications/notifications.scss
+++ b/src/addons/notifications/notifications.scss
@@ -34,13 +34,14 @@
         img {
             width: var(--icon-size);
             height:  var(--icon-size);
+            padding: 4px;
         }
         ion-icon {
             font-size: var(--icon-size);
         }
         padding: 0px;
         background: var(--background-color);
-        border-radius: var(--mdl-shape-borderRadius-xs);
+        border-radius: var(--core-avatar-radius);
         @include margin(6px, 8px, 6px, 0px);
     }
 
diff --git a/src/addons/notifications/services/notifications.ts b/src/addons/notifications/services/notifications.ts
index aeaf0660f..c25c81fa1 100644
--- a/src/addons/notifications/services/notifications.ts
+++ b/src/addons/notifications/services/notifications.ts
@@ -119,7 +119,7 @@ export class AddonNotificationsProvider {
             notification.notif = 1;
             notification.read = notification.timeread > 0;
 
-            if (typeof notification.customdata == 'string') {
+            if (typeof notification.customdata === 'string') {
                 notification.customdata = CoreTextUtils.parseJSON<Record<string, string|number>>(notification.customdata, {});
             }
 
@@ -142,9 +142,6 @@ export class AddonNotificationsProvider {
                 }
             }
 
-            const imgUrl = notification.customdata?.notificationpictureurl || notification.customdata?.notificationiconurl;
-            notification.imgUrl = imgUrl ? String(imgUrl) : undefined;
-
             if (notification.useridfrom > 0) {
                 // Try to get the profile picture of the user.
                 try {
@@ -155,6 +152,12 @@ export class AddonNotificationsProvider {
                 } catch {
                     // Error getting user. This can happen if device is offline or the user is deleted.
                 }
+            } else {
+                // Do not assign avatar for newlogin notifications.
+                if (notification.eventtype !== 'newlogin') {
+                    const imgUrl = notification.customdata?.notificationpictureurl || notification.customdata?.notificationiconurl;
+                    notification.imgUrl = imgUrl ? String(imgUrl) : undefined;
+                }
             }
 
             return notification;
diff --git a/src/core/components/tests/user-avatar.test.ts b/src/core/components/tests/user-avatar.test.ts
index a8c085b74..a68f951a9 100644
--- a/src/core/components/tests/user-avatar.test.ts
+++ b/src/core/components/tests/user-avatar.test.ts
@@ -25,9 +25,9 @@ describe('CoreUserAvatarComponent', () => {
         // Assert.
         expect(nativeElement.innerHTML.trim()).not.toHaveLength(0);
 
-        const image = nativeElement.querySelector('img');
-        expect(image).not.toBeNull();
-        expect(image?.src).toEqual(document.location.href + 'assets/img/user-avatar.png');
+        const initials = nativeElement.querySelector('.userinitials');
+        expect(initials).not.toBeNull();
+        expect(initials?.getAttribute('data-initials')?.trim()).toEqual('UNK');
     });
 
 });
diff --git a/src/core/components/user-avatar/core-user-avatar.html b/src/core/components/user-avatar/core-user-avatar.html
index cb5b79b00..76c6425ec 100644
--- a/src/core/components/user-avatar/core-user-avatar.html
+++ b/src/core/components/user-avatar/core-user-avatar.html
@@ -7,20 +7,15 @@
 </ng-container>
 <ng-container *ngIf="!avatarUrl && initials">
     <div class="userinitials" *ngIf="linkProfile" [attr.aria-label]="'core.pictureof' | translate:{$a: fullname}"
-        (ariaButtonClick)="gotoProfile($event)">
-        {{ initials }}
+        [title]="'core.pictureof' | translate:{$a: fullname}" (ariaButtonClick)="gotoProfile($event)" [attr.data-initials]="initials">
     </div>
 
-    <div class="userinitials" *ngIf="!linkProfile" [attr.aria-label]="'core.pictureof' | translate:{$a: fullname}" aria-hidden="true">
-        {{ initials }}
+    <div class="userinitials" *ngIf="!linkProfile" [attr.aria-label]="'core.pictureof' | translate:{$a: fullname}"
+        [title]="'core.pictureof' | translate:{$a: fullname}" role="img" [attr.data-initials]="initials" aria-hidden="true">
     </div>
 </ng-container>
-<ng-container *ngIf="!avatarUrl && !initials">
-    <img class="userpicture" *ngIf="linkProfile" src="assets/img/user-avatar.png" [alt]="'core.pictureof' | translate:{$a: fullname}"
-        (ariaButtonClick)="gotoProfile($event)">
-
-    <img class="userpicture" *ngIf="!linkProfile" src="assets/img/user-avatar.png" [alt]="'core.pictureof' | translate:{$a: fullname}"
-        aria-hidden="true">
+<ng-container *ngIf="!avatarUrl && !initials"><!-- During loading -->
+    <img class="userpicture_loading" src="assets/img/user-avatar.png" role="presentation" aria-hidden="true" alt="">
 </ng-container>
 
 <span *ngIf="checkOnline && isOnline()" class="contact-status online" role="status" [attr.aria-label]="'core.online' | translate">
diff --git a/src/core/components/user-avatar/user-avatar.scss b/src/core/components/user-avatar/user-avatar.scss
index 1ffc913c8..fa30ad311 100644
--- a/src/core/components/user-avatar/user-avatar.scss
+++ b/src/core/components/user-avatar/user-avatar.scss
@@ -51,12 +51,8 @@
         height: var(--core-header-toolbar-button-image-size);
         max-width: var(--core-header-toolbar-button-image-size);
         max-height: var(--core-header-toolbar-button-image-size);
-        border-radius: 50%;
+        border-radius: var(--core-avatar-radius);
         display: block;
-
-        img {
-            border-radius: 50%;
-        }
     }
 
     .contact-status {
@@ -83,8 +79,14 @@
         font-weight: normal;
         width: calc(var(--core-avatar-size) - var(--userpicture-padding) - var(--userpicture-padding));
         height: calc(var(--core-avatar-size) - var(--userpicture-padding) - var(--userpicture-padding));
+        min-height: 0px;
+        min-width: 0px;
         font-size: calc(var(--core-avatar-size)*0.3);
         margin: var(--userpicture-padding);
+
+        &::after {
+            content: attr(data-initials);
+        }
     }
 
     &.large-avatar .userinitials {
diff --git a/src/core/components/user-avatar/user-avatar.ts b/src/core/components/user-avatar/user-avatar.ts
index 6b8778014..d54342cf8 100644
--- a/src/core/components/user-avatar/user-avatar.ts
+++ b/src/core/components/user-avatar/user-avatar.ts
@@ -114,7 +114,7 @@ export class CoreUserAvatarComponent implements OnInit, OnChanges, OnDestroy {
     /**
      * Set fields from user.
      */
-    protected setFields(): void {
+    protected async setFields(): Promise<void> {
         const profileUrl = this.profileUrl || (this.user && (this.user.profileimageurl || this.user.userprofileimageurl ||
             this.user.userpictureurl || this.user.profileimageurlsmall || (this.user.urls && this.user.urls.profileimage)));
 
@@ -124,16 +124,20 @@ export class CoreUserAvatarComponent implements OnInit, OnChanges, OnDestroy {
 
         this.fullname = this.fullname || (this.user && (this.user.fullname || this.user.userfullname));
 
-        if (this.user) {
-            this.initials = CoreUserHelper.getUserInitials(this.user);
-        }
-
-        if (this.initials && this.avatarUrl && CoreUrlUtils.isThemeImageUrl(this.avatarUrl)) {
+        if (this.avatarUrl && CoreUrlUtils.isThemeImageUrl(this.avatarUrl)) {
             this.avatarUrl = undefined;
         }
 
         this.userId = this.userId || (this.user && (this.user.userid || this.user.id));
         this.courseId = this.courseId || (this.user && this.user.courseid);
+
+        this.initials =
+            await CoreUserHelper.getUserInitialsFromParts({
+                firstname: this.user?.firstname,
+                lastname: this.user?.lastname,
+                fullname: this.fullname,
+                userId: this.userId,
+        });
     }
 
     /**
diff --git a/src/core/features/user/services/user-helper.ts b/src/core/features/user/services/user-helper.ts
index 55ea62dd8..4d2e53367 100644
--- a/src/core/features/user/services/user-helper.ts
+++ b/src/core/features/user/services/user-helper.ts
@@ -17,7 +17,7 @@ import { CoreNavigator } from '@services/navigator';
 import { CoreSites } from '@services/sites';
 
 import { makeSingleton, Translate } from '@singletons';
-import { CoreUserProfile, CoreUserRole } from './user';
+import { CoreUser, CoreUserProfile, CoreUserRole } from './user';
 
 /**
  * Service that provides some features regarding users information.
@@ -145,7 +145,8 @@ export class CoreUserHelperProvider {
      * Get the user initials.
      *
      * @param user User object.
-     * @returns Promise resolved with the user data.
+     * @returns User initials.
+     * @deprecated since 4.4. Use getUserInitialsFromParts instead.
      */
     getUserInitials(user: Partial<CoreUserProfile>): string {
         if (!user.firstname && !user.lastname) {
@@ -156,6 +157,36 @@ export class CoreUserHelperProvider {
         return (user.firstname?.charAt(0) || '') + (user.lastname?.charAt(0) || '');
     }
 
+    /**
+     * Get the user initials.
+     *
+     * @param parts User name parts. Containing firstname, lastname, fullname and userId.
+     * @returns User initials.
+     */
+    async getUserInitialsFromParts(parts: CoreUserNameParts): Promise<string> {
+        if (!parts.firstname && !parts.lastname) {
+            if (!parts.fullname && parts.userId) {
+                const user = await CoreUser.getProfile(parts.userId, undefined, true);
+                parts.fullname = user.fullname || '';
+            }
+
+            if (parts.fullname) {
+                const split = parts.fullname.split(' ');
+
+                parts.firstname = split[0];
+                if (split.length > 1) {
+                    parts.lastname = split[split.length - 1];
+                }
+            }
+        }
+
+        if (!parts.firstname && !parts.lastname) {
+            return 'UNK';
+        }
+
+        return (parts.firstname?.charAt(0) || '') + (parts.lastname?.charAt(0) || '');
+    }
+
     /**
      * Translates legacy timezone names.
      *
@@ -169,3 +200,5 @@ export class CoreUserHelperProvider {
 }
 
 export const CoreUserHelper = makeSingleton(CoreUserHelperProvider);
+
+type CoreUserNameParts = { firstname?: string; lastname?: string; fullname?: string; userId?: number };
diff --git a/src/core/features/user/services/user.ts b/src/core/features/user/services/user.ts
index 000a5b0a1..9ac7bcd63 100644
--- a/src/core/features/user/services/user.ts
+++ b/src/core/features/user/services/user.ts
@@ -26,7 +26,6 @@ import { CoreEvents, CoreEventSiteData, CoreEventUserDeletedData, CoreEventUserS
 import { CoreStatusWithWarningsWSResponse, CoreWSExternalWarning } from '@services/ws';
 import { CoreError } from '@classes/errors/error';
 import { USERS_TABLE_NAME, CoreUserDBRecord } from './database/user';
-import { CoreUserHelper } from './user-helper';
 import { CoreUrlUtils } from '@services/utils/url';
 import { CoreSiteWSPreSets } from '@classes/sites/authenticated-site';
 import { CoreConstants } from '@/core/constants';
@@ -669,11 +668,8 @@ export class CoreUserProvider {
             }
 
             // Do not prefetch when initials are set and image is default.
-            if ('firstname' in entry || 'lastname' in entry) {
-                const initials = CoreUserHelper.getUserInitials(entry);
-                if (initials && imageUrl && CoreUrlUtils.isThemeImageUrl(imageUrl)) {
-                    return;
-                }
+            if (imageUrl && CoreUrlUtils.isThemeImageUrl(imageUrl)) {
+                return;
             }
 
             treated[imageUrl] = true;
diff --git a/src/core/features/user/tests/behat/snapshots/test-basic-usage-of-user-features-view-profile_21.png b/src/core/features/user/tests/behat/snapshots/test-basic-usage-of-user-features-view-profile_21.png
index 4c4d9815c..276ba2b33 100644
Binary files a/src/core/features/user/tests/behat/snapshots/test-basic-usage-of-user-features-view-profile_21.png and b/src/core/features/user/tests/behat/snapshots/test-basic-usage-of-user-features-view-profile_21.png differ
diff --git a/src/core/features/user/tests/user-helper.test.ts b/src/core/features/user/tests/user-helper.test.ts
new file mode 100644
index 000000000..64258bd5f
--- /dev/null
+++ b/src/core/features/user/tests/user-helper.test.ts
@@ -0,0 +1,70 @@
+// (C) Copyright 2015 Moodle Pty Ltd.
+//
+// Licensed under the Apache License, Version 2.0 (the "License");
+// you may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+//
+//     http://www.apache.org/licenses/LICENSE-2.0
+//
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+import { CoreUserHelper } from '../services/user-helper';
+
+describe('getUserInitialsFromParts', () => {
+  it('should return initials based on firstname and lastname', async () => {
+    const parts = {
+      firstname: 'John',
+      lastname: 'Doe',
+      fullname: '',
+      userId: 123,
+    };
+
+    const result = await CoreUserHelper.getUserInitialsFromParts(parts);
+
+    expect(result).toEqual('JD');
+  });
+
+  it('should return initials based on fullname if firstname and lastname are missing', async () => {
+    let parts = {
+      firstname: '',
+      lastname: '',
+      fullname: 'John Doe',
+      userId: 123,
+    };
+
+    let result = await CoreUserHelper.getUserInitialsFromParts(parts);
+
+    expect(result).toEqual('JD');
+
+    parts = {
+        firstname: '',
+        lastname: '',
+        fullname: 'John Fitzgerald Doe',
+        userId: 123,
+    };
+
+    result = await CoreUserHelper.getUserInitialsFromParts(parts);
+
+    expect(result).toEqual('JD');
+  });
+
+  it('should return UNK string if empty parts', async () => {
+    const parts = {
+      firstname: '',
+      lastname: '',
+      fullname: '',
+    };
+
+    let result = await CoreUserHelper.getUserInitialsFromParts(parts);
+
+    expect(result).toEqual('UNK');
+
+    result = await CoreUserHelper.getUserInitialsFromParts({});
+
+    expect(result).toEqual('UNK');
+  });
+});
diff --git a/src/theme/theme.base.scss b/src/theme/theme.base.scss
index 2e2b7c87d..3f6e0b578 100644
--- a/src/theme/theme.base.scss
+++ b/src/theme/theme.base.scss
@@ -636,18 +636,6 @@ ion-content.limited-width > :not([slot]) {
     min-height: 100%;
 }
 
-ion-toolbar h1 img.core-bar-button-image,
-ion-toolbar h1 .core-bar-button-image img {
-    padding: 4px;
-    --userpicture-padding: 4px;
-    width: var(--core-header-toolbar-button-image-size);
-    height: var(--core-header-toolbar-button-image-size);
-    max-width: var(--core-header-toolbar-button-image-size);
-    max-height: var(--core-header-toolbar-button-image-size);
-    border-radius: 50%;
-    display: block;
-}
-
 // Radio.
 ion-radio,
 input[type=radio],