diff --git a/src/status_im2/subs/shell.cljs b/src/status_im2/subs/shell.cljs
index dd26f28af4..9a40dcb8b3 100644
--- a/src/status_im2/subs/shell.cljs
+++ b/src/status_im2/subs/shell.cljs
@@ -231,10 +231,18 @@
                   (update-in [:community-stack :unviewed-mentions-count] + unviewed-mentions-count))
 
               (and (not muted)
-                   (#{constants/private-group-chat-type constants/one-to-one-chat-type} chat-type))
+                   (= chat-type constants/private-group-chat-type))
               (-> acc
                   (update-in [:chats-stack :unviewed-messages-count] + unviewed-messages-count)
                   (update-in [:chats-stack :unviewed-mentions-count] + unviewed-mentions-count))
+
+              (and (not muted)
+                   (= chat-type constants/one-to-one-chat-type))
+              ;; Note - for 1-1 chats, all unread messages are counted as mentions and shown with counter
+              (-> acc
+                  (update-in [:chats-stack :unviewed-messages-count] + unviewed-messages-count)
+                  (update-in [:chats-stack :unviewed-mentions-count] + unviewed-messages-count))
+
               :else
               acc))
           {:chats-stack     {:unviewed-messages-count 0 :unviewed-mentions-count 0}
@@ -248,8 +256,10 @@
        :counter-label          (:unviewed-mentions-count community-stack)}
       :chats-stack
       {:new-notifications?     (pos? (:unviewed-messages-count chats-stack))
-       :notification-indicator :counter
-       :counter-label          (:unviewed-messages-count chats-stack)}})))
+       :notification-indicator (if (pos? (:unviewed-mentions-count chats-stack))
+                                 :counter
+                                 :unread-dot)
+       :counter-label          (:unviewed-mentions-count chats-stack)}})))
 
 ;; Floating screens
 (re-frame/reg-sub
diff --git a/src/status_im2/subs/shell_test.cljs b/src/status_im2/subs/shell_test.cljs
index c1394cdf03..971e726f04 100644
--- a/src/status_im2/subs/shell_test.cljs
+++ b/src/status_im2/subs/shell_test.cljs
@@ -5,17 +5,10 @@
             [cljs.test :refer [is testing]]
             [status-im2.constants :as constants]))
 
-(def expected-notification-data-for-public-profile-timeline-chats
-  {:communities-stack {:new-notifications?     false
-                       :notification-indicator :unread-dot
-                       :counter-label          0}
-   :chats-stack       {:new-notifications?     false
-                       :notification-indicator :unread-dot
-                       :counter-label          0}})
-
+;; Note - for 1-1 chats, all unread messages are counted as mentions and shown with counter
 (def one-to-one-group-community-chats1
   {"0xone-to-one-chat1" {:chat-type               constants/one-to-one-chat-type
-                         :unviewed-messages-count 5
+                         :unviewed-messages-count 0
                          :unviewed-mentions-count 0}
    "0xgroup-chat1"      {:chat-type               constants/private-group-chat-type
                          :unviewed-messages-count 2
@@ -29,8 +22,8 @@
                        :notification-indicator :unread-dot
                        :counter-label          0}
    :chats-stack       {:new-notifications?     true
-                       :notification-indicator :counter
-                       :counter-label          7}})
+                       :notification-indicator :unread-dot
+                       :counter-label          0}})
 
 (def one-to-one-group-community-chats2
   (merge
@@ -51,7 +44,7 @@
                        :counter-label          7}
    :chats-stack       {:new-notifications?     true
                        :notification-indicator :counter
-                       :counter-label          19}})
+                       :counter-label          11}})
 
 (h/deftest-sub :shell/bottom-tabs-notifications-data
   [sub-name]