diff --git a/changelogs/client_server/newsfragments/3169.feature b/changelogs/client_server/newsfragments/3169.feature
new file mode 100644
index 00000000..de83a7cc
--- /dev/null
+++ b/changelogs/client_server/newsfragments/3169.feature
@@ -0,0 +1 @@
+Downgrade identity server discovery failures to `FAIL_PROMPT` as per [MSC2284](https://github.com/matrix-org/matrix-doc/pull/2284).
\ No newline at end of file
diff --git a/content/client-server-api/_index.md b/content/client-server-api/_index.md
index ec26cec8..3c208c75 100644
--- a/content/client-server-api/_index.md
+++ b/content/client-server-api/_index.md
@@ -299,7 +299,7 @@ specify parameter values. The flow for this method is as follows:
         Validation for this URL is done as in the step above, but using
         `/_matrix/identity/api/v1` as the endpoint to connect to. If the
         `m.identity_server` property is present, but does not have a
-        `base_url` value, then `FAIL_ERROR`.
+        `base_url` value, then `FAIL_PROMPT`.
 
 {{% http-api spec="client-server" api="wellknown" %}}