diff --git a/src/status_im/chat/models.cljs b/src/status_im/chat/models.cljs
index d7d5429dd0..0b8bda52e1 100644
--- a/src/status_im/chat/models.cljs
+++ b/src/status_im/chat/models.cljs
@@ -48,7 +48,7 @@
 
 (defn active-chat? [cofx chat-id]
   (let [chat (get-chat cofx chat-id)]
-    (not (nil? chat))))
+    (:active chat)))
 
 (defn foreground-chat?
   [{{:keys [current-chat-id view-id]} :db} chat-id]
@@ -115,11 +115,11 @@
   "Add chats to db and update"
   [{:keys [db] :as cofx} chats]
   (let [{:keys [all-chats chats-home-list removed-chats]}
-        (reduce (fn [acc {:keys [chat-id profile-public-key timeline? community-id active] :as chat}]
-                  (if (not active)
+        (reduce (fn [acc {:keys [chat-id profile-public-key timeline? community-id active muted] :as chat}]
+                  (if (not (or active muted))
                     (update acc :removed-chats conj chat-id)
                     (cond-> acc
-                      (and (not profile-public-key) (not timeline?) (not community-id))
+                      (and (not profile-public-key) (not timeline?) (not community-id) active)
                       (update :chats-home-list conj chat-id)
                       :always
                       (assoc-in [:all-chats chat-id] chat))))
@@ -177,8 +177,9 @@
   [{:keys [db now] :as cofx} chat-id]
   (fx/merge
    cofx
-   {:db (-> db
-            (update :chats dissoc chat-id)
+   {:db (-> (if (get-in db [:chats chat-id :muted])
+              (assoc-in db [:chats chat-id :active] false)
+              (update db :chats dissoc chat-id))
             (update :chats-home-list disj chat-id)
             (assoc-in [:current-chat-id] nil))
     ::json-rpc/call [{:method "wakuext_deactivateChat"
diff --git a/src/status_im/chat/models/loading.cljs b/src/status_im/chat/models/loading.cljs
index 8b76bb5ae4..a81f9eeff7 100644
--- a/src/status_im/chat/models/loading.cljs
+++ b/src/status_im/chat/models/loading.cljs
@@ -23,10 +23,10 @@
   [{:keys [db]} ^js new-chats-js]
   (let [{:keys [all-chats chats-home-list]}
         (reduce (fn [acc ^js chat-js]
-                  (let [{:keys [chat-id profile-public-key timeline? community-id] :as chat}
+                  (let [{:keys [chat-id profile-public-key timeline? community-id active] :as chat}
                         (data-store.chats/<-rpc-js chat-js)]
                     (cond-> acc
-                      (and (not profile-public-key) (not timeline?) (not community-id))
+                      (and (not profile-public-key) (not timeline?) (not community-id) active)
                       (update :chats-home-list conj chat-id)
                       :always
                       (assoc-in [:all-chats chat-id] chat))))
diff --git a/src/status_im/data_store/chats.cljs b/src/status_im/data_store/chats.cljs
index ab928dea29..465c38d8dc 100644
--- a/src/status_im/data_store/chats.cljs
+++ b/src/status_im/data_store/chats.cljs
@@ -97,7 +97,8 @@
                                  :community-id (.-contentCommunityId chat)}
        :last-clock-value        (.-lastClockValue chat)
        :profile-public-key      (.-profile chat)
-       :highlight               (.-highlight chat)}
+       :highlight               (.-highlight chat)
+       :active                  (.-active chat)}
       rpc->type
       unmarshal-members))
 
diff --git a/status-go-version.json b/status-go-version.json
index 55fbcfa685..253a724c1a 100644
--- a/status-go-version.json
+++ b/status-go-version.json
@@ -3,7 +3,7 @@
     "_comment": "Instead use: scripts/update-status-go.sh <rev>",
     "owner": "status-im",
     "repo": "status-go",
-    "version": "v0.97.3",
-    "commit-sha1": "331cf1e40188553b508e81193d42e0eee6d6a8c8",
-    "src-sha256": "1yl7arvi6jlb591g6l2c4y41l5aqpvxcwl14iw73rp4qy4wvvcbz"
+    "version": "v0.97.4",
+    "commit-sha1": "724689086cdd3edef71a31c17e8888b1933c9ea5",
+    "src-sha256": "091fc4ql9mp99ljw3l644bvkmwrfj2sq2mdhkwz6bn3z2maxgalk"
 }