diff --git a/autotest/gcore/vsis3.py b/autotest/gcore/vsis3.py
index 8cec895db836..d4a94b6cb027 100755
--- a/autotest/gcore/vsis3.py
+++ b/autotest/gcore/vsis3.py
@@ -988,6 +988,43 @@ def method_req_2(self, request):
 ###############################################################################
 
 
+@gdaltest.enable_exceptions()
+def test_vsis3_permanent_redirect_and_region_change(aws_test_config, webserver_port):
+
+    handler = webserver.SequentialHandler()
+    handler.add(
+        "GET",
+        "/test_vsis3_permanent_redirect_and_region_change/?delimiter=%2F&list-type=2",
+        301,
+        {"Content-type": "application/xml"},
+        f"""<?xml version="1.0" encoding="UTF-8"?>
+            <Error><Code>PermanentRedirect</Code><Message>The bucket you are attempting to access must be addressed using the specified endpoint. Please send all future requests to this endpoint.</Message><Endpoint>localhost:{webserver_port}</Endpoint><Bucket>test_vsis3_permanent_redirect_and_region_change</Bucket></Error>""",
+    )
+    handler.add(
+        "GET",
+        "/test_vsis3_permanent_redirect_and_region_change/?delimiter=%2F&list-type=2",
+        200,
+        {"Content-type": "application/xml"},
+        """<?xml version="1.0" encoding="UTF-8"?>
+            <ListBucketResult>
+                <Prefix></Prefix>
+                <Contents>
+                    <Key>test.bin</Key>
+                    <LastModified>1970-01-01T00:00:01.000Z</LastModified>
+                    <Size>123456</Size>
+                </Contents>
+            </ListBucketResult>""",
+    )
+    with webserver.install_http_handler(handler):
+        with gdal.VSIFile(
+            "/vsis3/test_vsis3_permanent_redirect_and_region_change/test.bin", "rb"
+        ):
+            pass
+
+
+###############################################################################
+
+
 @pytest.mark.parametrize("with_error_message", [True, False])
 def test_vsis3_request_timeout(aws_test_config, webserver_port, with_error_message):
     gdal.VSICurlClearCache()
diff --git a/port/cpl_aws.cpp b/port/cpl_aws.cpp
index ac4aabe69443..63017884f216 100644
--- a/port/cpl_aws.cpp
+++ b/port/cpl_aws.cpp
@@ -2809,48 +2809,54 @@ bool VSIS3HandleHelper::CanRestartOnError(const char *pszErrorMsg,
             }
             return false;
         }
-        if (!m_bUseVirtualHosting &&
-            strncmp(pszEndpoint, m_osBucket.c_str(), m_osBucket.size()) == 0 &&
-            pszEndpoint[m_osBucket.size()] == '.')
+
+        /* If we have a body with
+        <Error><Code>PermanentRedirect</Code><Message>The bucket you are
+        attempting to access must be addressed using the specified endpoint.
+        Please send all future requests to this
+        endpoint.</Message><Bucket>bucket</Bucket><Endpoint>bucket.region.s3.amazonaws.com</Endpoint></Error>
+        and headers like
+        x-amz-bucket-region: eu-west-1
+        then we must use s3-$(x-amz-bucket-region).amazon.com as endpoint. */
+        const char *pszRegionPtr =
+            (pszHeaders != nullptr)
+                ? strstr(pszHeaders, "x-amz-bucket-region: ")
+                : nullptr;
+        if (pszRegionPtr != nullptr)
         {
-            /* If we have a body with
-            <Error><Code>PermanentRedirect</Code><Message>The bucket you are
-            attempting to access must be addressed using the specified endpoint.
-            Please send all future requests to this
-            endpoint.</Message><Bucket>bucket.with.dot</Bucket><Endpoint>bucket.with.dot.s3.amazonaws.com</Endpoint></Error>
-            and headers like
-            x-amz-bucket-region: eu-west-1
-            and the bucket name has dot in it,
-            then we must use s3.$(x-amz-bucket-region).amazon.com as endpoint.
-            See #7154 */
-            const char *pszRegionPtr =
-                (pszHeaders != nullptr)
-                    ? strstr(pszHeaders, "x-amz-bucket-region: ")
-                    : nullptr;
-            if (strchr(m_osBucket.c_str(), '.') != nullptr &&
-                pszRegionPtr != nullptr)
+            std::string osRegion(pszRegionPtr +
+                                 strlen("x-amz-bucket-region: "));
+            size_t nPos = osRegion.find('\r');
+            if (nPos != std::string::npos)
+                osRegion.resize(nPos);
+            if (strncmp(pszEndpoint, m_osBucket.c_str(), m_osBucket.size()) ==
+                    0 &&
+                pszEndpoint[m_osBucket.size()] == '.')
             {
-                std::string osRegion(pszRegionPtr +
-                                     strlen("x-amz-bucket-region: "));
-                size_t nPos = osRegion.find('\r');
-                if (nPos != std::string::npos)
-                    osRegion.resize(nPos);
-                SetEndpoint(
-                    CPLSPrintf("s3.%s.amazonaws.com", osRegion.c_str()));
-                SetRegion(osRegion.c_str());
-                CPLDebug(AWS_DEBUG_KEY, "Switching to endpoint %s",
-                         m_osEndpoint.c_str());
-                CPLDebug(AWS_DEBUG_KEY, "Switching to region %s",
-                         m_osRegion.c_str());
-                CPLDestroyXMLNode(psTree);
-                if (!bIsTemporaryRedirect)
-                    VSIS3UpdateParams::UpdateMapFromHandle(this);
-                return true;
+                pszEndpoint += m_osBucket.size() + 1;
             }
 
+            SetEndpoint(pszEndpoint);
+            SetRegion(osRegion.c_str());
+            CPLDebug(AWS_DEBUG_KEY, "Switching to endpoint %s",
+                     m_osEndpoint.c_str());
+            CPLDebug(AWS_DEBUG_KEY, "Switching to region %s",
+                     m_osRegion.c_str());
+            CPLDestroyXMLNode(psTree);
+            if (!bIsTemporaryRedirect)
+                VSIS3UpdateParams::UpdateMapFromHandle(this);
+            return true;
+        }
+
+        if (!m_bUseVirtualHosting &&
+            m_osBucket.find('.') == std::string::npos &&
+            strncmp(pszEndpoint, m_osBucket.c_str(), m_osBucket.size()) == 0 &&
+            pszEndpoint[m_osBucket.size()] == '.')
+        {
             m_bUseVirtualHosting = true;
             CPLDebug(AWS_DEBUG_KEY, "Switching to virtual hosting");
         }
+
         SetEndpoint(m_bUseVirtualHosting ? pszEndpoint + m_osBucket.size() + 1
                                          : pszEndpoint);
         CPLDebug(AWS_DEBUG_KEY, "Switching to endpoint %s",