diff --git a/cirq-core/cirq/sim/act_on_density_matrix_args.py b/cirq-core/cirq/sim/act_on_density_matrix_args.py
index aa509b192cfd..687c491eea12 100644
--- a/cirq-core/cirq/sim/act_on_density_matrix_args.py
+++ b/cirq-core/cirq/sim/act_on_density_matrix_args.py
@@ -13,6 +13,7 @@
 # limitations under the License.
 """Objects and methods for acting efficiently on a density matrix."""
 
+import math
 from typing import Any, Callable, Dict, List, Optional, Sequence, Tuple, TYPE_CHECKING, Type, Union
 
 import numpy as np
@@ -79,7 +80,26 @@ def create(
             ).reshape(qid_shape * 2)
         else:
             if qid_shape is not None:
-                density_matrix = initial_state.reshape(qid_shape * 2)
+                qid_size = math.prod(qid_shape)
+                shape = initial_state.shape
+                if shape == qid_shape or shape == (qid_size,):
+                    if len(shape) != 1:
+                        initial_state = initial_state.reshape((qid_size,))
+                elif shape == qid_shape * 2 or shape == (qid_size, qid_size):
+                    if len(shape) != 2:
+                        initial_state = initial_state.reshape((qid_size, qid_size))
+                    if dtype and initial_state.dtype != dtype:
+                        # Convert type because to_valid_density_matrix does not convert dtype.
+                        initial_state = initial_state.astype(dtype)
+                else:
+                    raise ValueError(
+                        f'Invalid initial state. Expected state vector of shape {(qid_size,)} '
+                        f'or density matrix of shape {(qid_size, qid_size)}; '
+                        f'got {initial_state.shape}.'
+                    )
+                density_matrix = qis.to_valid_density_matrix(
+                    initial_state, len(qid_shape), qid_shape=qid_shape, dtype=dtype
+                ).reshape(qid_shape * 2)
             else:
                 density_matrix = initial_state
             if np.may_share_memory(density_matrix, initial_state):
diff --git a/cirq-core/cirq/sim/act_on_density_matrix_args_test.py b/cirq-core/cirq/sim/act_on_density_matrix_args_test.py
index 950c58cabff6..4450b77d51b1 100644
--- a/cirq-core/cirq/sim/act_on_density_matrix_args_test.py
+++ b/cirq-core/cirq/sim/act_on_density_matrix_args_test.py
@@ -105,3 +105,50 @@ def test_with_qubits():
 def test_qid_shape_error():
     with pytest.raises(ValueError, match="qid_shape must be provided"):
         cirq.sim.act_on_density_matrix_args._BufferedDensityMatrix.create(initial_state=0)
+
+
+def test_initial_state_vector():
+    qubits = cirq.LineQubit.range(3)
+    args = cirq.ActOnDensityMatrixArgs(
+        qubits=qubits, initial_state=np.full((8,), 1 / np.sqrt(8)), dtype=np.complex64
+    )
+    assert args.target_tensor.shape == (2, 2, 2, 2, 2, 2)
+
+    args2 = cirq.ActOnDensityMatrixArgs(
+        qubits=qubits, initial_state=np.full((2, 2, 2), 1 / np.sqrt(8)), dtype=np.complex64
+    )
+    assert args2.target_tensor.shape == (2, 2, 2, 2, 2, 2)
+
+
+def test_initial_state_matrix():
+    qubits = cirq.LineQubit.range(3)
+    args = cirq.ActOnDensityMatrixArgs(
+        qubits=qubits, initial_state=np.full((8, 8), 1 / 8), dtype=np.complex64
+    )
+    assert args.target_tensor.shape == (2, 2, 2, 2, 2, 2)
+
+    args2 = cirq.ActOnDensityMatrixArgs(
+        qubits=qubits, initial_state=np.full((2, 2, 2, 2, 2, 2), 1 / 8), dtype=np.complex64
+    )
+    assert args2.target_tensor.shape == (2, 2, 2, 2, 2, 2)
+
+
+def test_initial_state_bad_shape():
+    qubits = cirq.LineQubit.range(3)
+    with pytest.raises(ValueError, match="Invalid initial state."):
+        cirq.ActOnDensityMatrixArgs(
+            qubits=qubits, initial_state=np.full((4,), 1 / 2), dtype=np.complex64
+        )
+    with pytest.raises(ValueError, match="Invalid initial state."):
+        cirq.ActOnDensityMatrixArgs(
+            qubits=qubits, initial_state=np.full((2, 2), 1 / 2), dtype=np.complex64
+        )
+
+    with pytest.raises(ValueError, match="Invalid initial state."):
+        cirq.ActOnDensityMatrixArgs(
+            qubits=qubits, initial_state=np.full((4, 4), 1 / 4), dtype=np.complex64
+        )
+    with pytest.raises(ValueError, match="Invalid initial state."):
+        cirq.ActOnDensityMatrixArgs(
+            qubits=qubits, initial_state=np.full((2, 2, 2, 2), 1 / 4), dtype=np.complex64
+        )