From c421782c1acc29b4117625a88fd7d7dae5a2ff49 Mon Sep 17 00:00:00 2001
From: saschabuehrle <sascha.buehrle@gmail.com>
Date: Fri, 20 Mar 2026 15:47:05 +0100
Subject: [PATCH 1/2] fix: hide unread dot/highlight for muted rooms (fixes
 #395)

---
 src/app/features/room-nav/RoomNavItem.tsx | 7 +++++--
 1 file changed, 5 insertions(+), 2 deletions(-)

diff --git a/src/app/features/room-nav/RoomNavItem.tsx b/src/app/features/room-nav/RoomNavItem.tsx
index 30d93d436d..f9d2790628 100644
--- a/src/app/features/room-nav/RoomNavItem.tsx
+++ b/src/app/features/room-nav/RoomNavItem.tsx
@@ -343,6 +343,9 @@ export function RoomNavItem({
   };
 
   const optionsVisible = hover || !!menuAnchor;
+  const isMutedRoom = notificationMode === RoomNotificationMode.Mute;
+  const shouldShowUnreadIndicator = !isMutedRoom && (!!unread || hasRoomUnread);
+
   let unreadCount = 0;
   if (unread) {
     unreadCount = unread.highlight > 0 ? unread.highlight : unread.total;
@@ -368,7 +371,7 @@ export function RoomNavItem({
       <NavItem
         variant="Background"
         radii="400"
-        highlight={unread !== undefined || hasRoomUnread}
+        highlight={shouldShowUnreadIndicator}
         aria-selected={selected}
         data-hover={!!menuAnchor}
         onContextMenu={handleContextMenu}
@@ -425,7 +428,7 @@ export function RoomNavItem({
                   <TypingIndicator size="300" disableAnimation />
                 </Badge>
               )}
-              {!optionsVisible && (unread || hasRoomUnread) && (
+              {!optionsVisible && shouldShowUnreadIndicator && (
                 <UnreadBadgeCenter>
                   <UnreadBadge
                     highlight={!!unread && unread.highlight > 0}

From 7ee58c36522d4e6652be75ed9113e02fc0de091b Mon Sep 17 00:00:00 2001
From: saschabuehrle <sascha.buehrle@gmail.com>
Date: Fri, 20 Mar 2026 19:23:48 +0100
Subject: [PATCH 2/2] chore: add changeset for muted room unread indicator fix

---
 .changeset/fix-muted-room-unread-indicator.md | 5 +++++
 1 file changed, 5 insertions(+)
 create mode 100644 .changeset/fix-muted-room-unread-indicator.md

diff --git a/.changeset/fix-muted-room-unread-indicator.md b/.changeset/fix-muted-room-unread-indicator.md
new file mode 100644
index 0000000000..757b6da4a2
--- /dev/null
+++ b/.changeset/fix-muted-room-unread-indicator.md
@@ -0,0 +1,5 @@
+---
+default: patch
+---
+
+Hide unread dot/highlight for rooms with notification mode set to Mute.