diff --git a/src/app/modules/main/chat_section/module.nim b/src/app/modules/main/chat_section/module.nim
index 692813bae4..5a09832d44 100644
--- a/src/app/modules/main/chat_section/module.nim
+++ b/src/app/modules/main/chat_section/module.nim
@@ -554,7 +554,7 @@ method addNewChat*(
     setChatAsActive: bool = true,
     insertIntoModel: bool = true,
   ): Item =
-  let hasNotification = not chatDto.muted and (chatDto.unviewedMessagesCount > 0 or chatDto.unviewedMentionsCount > 0)
+  let hasNotification =chatDto.unviewedMessagesCount > 0
   let notificationsCount = chatDto.unviewedMentionsCount
 
   var chatName = chatDto.name
@@ -1198,10 +1198,7 @@ proc addOrUpdateChat(self: Module,
 
   if not self.chatsLoaded or chatExists:
     # Update badges
-    var hasUnreadMessages = false
-    if not chat.muted:
-      hasUnreadMessages = chat.unviewedMessagesCount > 0
-    self.updateBadgeNotifications(chat, hasUnreadMessages, chat.unviewedMentionsCount)
+    self.updateBadgeNotifications(chat, chat.unviewedMessagesCount > 0, chat.unviewedMentionsCount)
 
   if not self.chatsLoaded:
     return
diff --git a/src/app_service/service/chat/service.nim b/src/app_service/service/chat/service.nim
index 467ec9080d..4f1931f97b 100644
--- a/src/app_service/service/chat/service.nim
+++ b/src/app_service/service/chat/service.nim
@@ -279,7 +279,8 @@ QtObject:
 
     for chat in self.channelGroups[communityId].chats:
       result.unviewedMentionsCount += chat.unviewedMentionsCount
-      if chat.muted:
+      # We count the unread messages if we are unmuted and it's not a mention, we want to show a badge on mentions
+      if chat.unviewedMentionsCount == 0 and chat.muted:
         continue
       if chat.unviewedMessagesCount > 0:
         result.unviewedMessagesCount = result.unviewedMessagesCount + chat.unviewedMessagesCount
diff --git a/ui/StatusQ/src/StatusQ/Components/StatusChatListItem.qml b/ui/StatusQ/src/StatusQ/Components/StatusChatListItem.qml
index 871cb0d01e..d3303ab0ce 100644
--- a/ui/StatusQ/src/StatusQ/Components/StatusChatListItem.qml
+++ b/ui/StatusQ/src/StatusQ/Components/StatusChatListItem.qml
@@ -200,7 +200,7 @@ Rectangle {
             anchors.rightMargin: 8
             StatusBadge {
                 id: statusBadge
-                readonly property bool onlyUnread: (root.notificationsCount === 0 && root.hasUnreadMessages)
+                readonly property bool onlyUnread: !root.muted && root.notificationsCount === 0 && root.hasUnreadMessages
                 anchors.centerIn: parent
                 color: onlyUnread ? Theme.palette.baseColor1 :
                                     root.muted ? Theme.palette.primaryColor2 : Theme.palette.primaryColor1
diff --git a/vendor/status-go b/vendor/status-go
index 60b160997c..a46bf97bf3 160000
--- a/vendor/status-go
+++ b/vendor/status-go
@@ -1 +1 @@
-Subproject commit 60b160997c7f583c2f1e0ebbe5b995ca117e86f3
+Subproject commit a46bf97bf3f46b07d1f447732947011e20fa499f