diff --git a/Project.toml b/Project.toml
index 18323b4fbd..d246b727e5 100644
--- a/Project.toml
+++ b/Project.toml
@@ -1,6 +1,6 @@
 name = "AbstractAlgebra"
 uuid = "c3fe647b-3220-5bb0-a1ea-a7954cac585d"
-version = "0.32.2"
+version = "0.32.3"
 
 [deps]
 GroupsCore = "d5909c97-4eac-4ecc-a3dc-fdd0858a4120"
diff --git a/src/Matrix.jl b/src/Matrix.jl
index 46e31d675c..29071ec7b7 100644
--- a/src/Matrix.jl
+++ b/src/Matrix.jl
@@ -7019,7 +7019,11 @@ function diagonal_matrix(x::T, xs::T...) where {T<:MatElem}
 end
 
 function diagonal_matrix(R::NCRing, V::Vector{<:MatElem})
-    return block_diagonal_matrix(map(x -> change_base_ring(R, x), V))
+    if length(V) == 0
+        return zero_matrix(R, 0, 0)
+    else
+        return block_diagonal_matrix(map(x -> change_base_ring(R, x), V))
+    end
 end