diff --git a/src/controller.cpp b/src/controller.cpp
index e54d27052..09057312e 100644
--- a/src/controller.cpp
+++ b/src/controller.cpp
@@ -26,6 +26,7 @@
 #include <Quotient/qt_connection_util.h>
 
 #include "neochatconfig.h"
+#include "neochatconnection.h"
 #include "neochatroom.h"
 #include "notificationsmanager.h"
 #include "proxycontroller.h"
@@ -37,6 +38,14 @@
 #include "trayicon_sni.h"
 #endif
 
+#if QT_VERSION < QT_VERSION_CHECK(6, 6, 0)
+#ifndef Q_OS_ANDROID
+#include <QDBusConnection>
+#include <QDBusInterface>
+#include <QDBusMessage>
+#endif
+#endif
+
 bool testMode = false;
 
 using namespace Quotient;
@@ -149,6 +158,7 @@ void Controller::addConnection(NeoChatConnection *c)
     connect(c, &NeoChatConnection::loggedOut, this, [this, c] {
         dropConnection(c);
     });
+    connect(c, &NeoChatConnection::badgeNotificationCountChanged, this, &Controller::updateBadgeNotificationCount);
 
     c->sync();
 
@@ -291,7 +301,14 @@ void Controller::setActiveConnection(NeoChatConnection *connection)
     if (connection == m_connection) {
         return;
     }
+
     m_connection = connection;
+
+    if (m_connection != nullptr) {
+        m_connection->refreshBadgeNotificationCount();
+        updateBadgeNotificationCount(m_connection, m_connection->badgeNotificationCount());
+    }
+
     Q_EMIT activeConnectionChanged();
 }
 
@@ -316,6 +333,36 @@ void Controller::listenForNotifications()
 #endif
 }
 
+void Controller::updateBadgeNotificationCount(NeoChatConnection *connection, int count)
+{
+    if (connection == m_connection) {
+#if QT_VERSION < QT_VERSION_CHECK(6, 6, 0)
+#ifndef Q_OS_ANDROID
+        // copied from Telegram desktop
+        const auto launcherUrl = "application://org.kde.neochat.desktop"_ls;
+        // Gnome requires that count is a 64bit integer
+        const qint64 counterSlice = std::min(count, 9999);
+        QVariantMap dbusUnityProperties;
+
+        if (counterSlice > 0) {
+            dbusUnityProperties["count"_ls] = counterSlice;
+            dbusUnityProperties["count-visible"_ls] = true;
+        } else {
+            dbusUnityProperties["count-visible"_ls] = false;
+        }
+
+        auto signal = QDBusMessage::createSignal("/com/canonical/unity/launcherentry/neochat"_ls, "com.canonical.Unity.LauncherEntry"_ls, "Update"_ls);
+
+        signal.setArguments({launcherUrl, dbusUnityProperties});
+
+        QDBusConnection::sessionBus().send(signal);
+#endif // Q_OS_ANDROID
+#else
+        qGuiApp->setBadgeNumber(count);
+#endif // QT_VERSION_CHECK(6, 6, 0)
+    }
+}
+
 bool Controller::isFlatpak() const
 {
 #ifdef NEOCHAT_FLATPAK
diff --git a/src/controller.h b/src/controller.h
index a2481e3a6..ba90d0dff 100644
--- a/src/controller.h
+++ b/src/controller.h
@@ -117,6 +117,7 @@ private:
 private Q_SLOTS:
     void invokeLogin();
     void setQuitOnLastWindowClosed();
+    void updateBadgeNotificationCount(NeoChatConnection *connection, int count);
 
 Q_SIGNALS:
     void errorOccured(const QString &error, const QString &detail);
diff --git a/src/models/roomlistmodel.cpp b/src/models/roomlistmodel.cpp
index c06d64aff..925539846 100644
--- a/src/models/roomlistmodel.cpp
+++ b/src/models/roomlistmodel.cpp
@@ -9,17 +9,7 @@
 #include "roommanager.h"
 #include "spacehierarchycache.h"
 
-#include <QDebug>
-#if QT_VERSION < QT_VERSION_CHECK(6, 6, 0)
-#ifndef Q_OS_ANDROID
-#include <QDBusConnection>
-#include <QDBusInterface>
-#include <QDBusMessage>
-#endif
-#endif
-
 #include <KLocalizedString>
-#include <QGuiApplication>
 
 using namespace Quotient;
 
@@ -28,32 +18,6 @@ Q_DECLARE_METATYPE(Quotient::JoinState)
 RoomListModel::RoomListModel(QObject *parent)
     : QAbstractListModel(parent)
 {
-    connect(this, &RoomListModel::highlightCountChanged, this, [this]() {
-#if QT_VERSION < QT_VERSION_CHECK(6, 6, 0)
-#ifndef Q_OS_ANDROID
-        // copied from Telegram desktop
-        const auto launcherUrl = "application://org.kde.neochat.desktop"_ls;
-        // Gnome requires that count is a 64bit integer
-        const qint64 counterSlice = std::min(m_highlightCount, 9999);
-        QVariantMap dbusUnityProperties;
-
-        if (counterSlice > 0) {
-            dbusUnityProperties["count"_ls] = counterSlice;
-            dbusUnityProperties["count-visible"_ls] = true;
-        } else {
-            dbusUnityProperties["count-visible"_ls] = false;
-        }
-
-        auto signal = QDBusMessage::createSignal("/com/canonical/unity/launcherentry/neochat"_ls, "com.canonical.Unity.LauncherEntry"_ls, "Update"_ls);
-
-        signal.setArguments({launcherUrl, dbusUnityProperties});
-
-        QDBusConnection::sessionBus().send(signal);
-#endif // Q_OS_ANDROID
-#else
-        qGuiApp->setBadgeNumber(m_highlightCount);
-#endif // QT_VERSION_CHECK(6, 6, 0)
-    });
     connect(&SpaceHierarchyCache::instance(), &SpaceHierarchyCache::spaceHierarchyChanged, this, [this]() {
         Q_EMIT dataChanged(index(0, 0), index(rowCount(), 0), {IsChildSpaceRole});
     });
@@ -122,7 +86,6 @@ void RoomListModel::doResetModel()
         doAddRoom(room);
     }
     endResetModel();
-    refreshNotificationCount();
 }
 
 NeoChatRoom *RoomListModel::roomAt(int row) const
@@ -148,7 +111,7 @@ void RoomListModel::connectRoomSignals(NeoChatRoom *room)
         refresh(room, {DisplayNameRole});
     });
     connect(room, &Room::unreadStatsChanged, this, [this, room] {
-        refresh(room, {NotificationCountRole, HighlightCountRole});
+        refresh(room, {ContextNotificationCountRole, HasHighlightNotificationsRole});
     });
     connect(room, &Room::notificationCountChanged, this, [this, room] {
         refresh(room);
@@ -171,44 +134,6 @@ void RoomListModel::connectRoomSignals(NeoChatRoom *room)
     connect(room, &Room::pendingEventMerged, this, [this, room] {
         refresh(room, {SubtitleTextRole});
     });
-    connect(room, &Room::unreadStatsChanged, this, &RoomListModel::refreshNotificationCount);
-    connect(room, &Room::highlightCountChanged, this, &RoomListModel::refreshHighlightCount);
-}
-
-int RoomListModel::notificationCount() const
-{
-    return m_notificationCount;
-}
-
-int RoomListModel::highlightCount() const
-{
-    return m_highlightCount;
-}
-
-void RoomListModel::refreshNotificationCount()
-{
-    int count = 0;
-    for (auto room : std::as_const(m_rooms)) {
-        count += room->notificationCount();
-    }
-    if (m_notificationCount == count) {
-        return;
-    }
-    m_notificationCount = count;
-    Q_EMIT notificationCountChanged();
-}
-
-void RoomListModel::refreshHighlightCount()
-{
-    int count = 0;
-    for (auto room : std::as_const(m_rooms)) {
-        count += room->highlightCount();
-    }
-    if (m_highlightCount == count) {
-        return;
-    }
-    m_highlightCount = count;
-    Q_EMIT highlightCountChanged();
 }
 
 void RoomListModel::updateRoom(Room *room, Room *prev)
@@ -295,11 +220,11 @@ QVariant RoomListModel::data(const QModelIndex &index, int role) const
     if (role == CategoryRole) {
         return NeoChatRoomType::typeForRoom(room);
     }
-    if (role == NotificationCountRole) {
-        return room->notificationCount();
+    if (role == ContextNotificationCountRole) {
+        return room->contextAwareNotificationCount();
     }
-    if (role == HighlightCountRole) {
-        return room->highlightCount();
+    if (role == HasHighlightNotificationsRole) {
+        return room->highlightCount() > 0 && room->contextAwareNotificationCount() > 0;
     }
     if (role == LastActiveTimeRole) {
         return room->lastActiveTime();
@@ -361,8 +286,8 @@ QHash<int, QByteArray> RoomListModel::roleNames() const
     roles[CanonicalAliasRole] = "canonicalAlias";
     roles[TopicRole] = "topic";
     roles[CategoryRole] = "category";
-    roles[NotificationCountRole] = "notificationCount";
-    roles[HighlightCountRole] = "highlightCount";
+    roles[ContextNotificationCountRole] = "contextNotificationCount";
+    roles[HasHighlightNotificationsRole] = "hasHighlightNotifications";
     roles[LastActiveTimeRole] = "lastActiveTime";
     roles[JoinStateRole] = "joinState";
     roles[CurrentRoomRole] = "currentRoom";
diff --git a/src/models/roomlistmodel.h b/src/models/roomlistmodel.h
index 46bcea09d..8cdc2da66 100644
--- a/src/models/roomlistmodel.h
+++ b/src/models/roomlistmodel.h
@@ -31,11 +31,6 @@ class RoomListModel : public QAbstractListModel
      */
     Q_PROPERTY(Quotient::Connection *connection READ connection WRITE setConnection NOTIFY connectionChanged)
 
-    /**
-     * @brief The total number of notifications for all the rooms.
-     */
-    Q_PROPERTY(int notificationCount READ notificationCount NOTIFY notificationCountChanged)
-
 public:
     /**
      * @brief Defines the model roles.
@@ -46,8 +41,8 @@ public:
         CanonicalAliasRole, /**< The room canonical alias. */
         TopicRole, /**< The room topic. */
         CategoryRole, /**< The room category, e.g favourite. */
-        NotificationCountRole, /**< The number of notifications in the room. */
-        HighlightCountRole, /**< The number of highlighted messages in the room. */
+        ContextNotificationCountRole, /**< The context aware notification count for the room. */
+        HasHighlightNotificationsRole, /**< Whether there are any highlight notifications. */
         LastActiveTimeRole, /**< The timestamp of the last event sent in the room. */
         JoinStateRole, /**< The local user's join state in the room. */
         CurrentRoomRole, /**< The room object for the room. */
@@ -67,9 +62,6 @@ public:
     [[nodiscard]] Quotient::Connection *connection() const;
     void setConnection(Quotient::Connection *connection);
 
-    [[nodiscard]] int notificationCount() const;
-    [[nodiscard]] int highlightCount() const;
-
     /**
      * @brief Get the given role value at the given index.
      *
@@ -114,23 +106,16 @@ private Q_SLOTS:
     void updateRoom(Quotient::Room *room, Quotient::Room *prev);
     void deleteRoom(Quotient::Room *room);
     void refresh(NeoChatRoom *room, const QList<int> &roles = {});
-    void refreshNotificationCount();
-    void refreshHighlightCount();
 
 private:
     Quotient::Connection *m_connection = nullptr;
     QList<NeoChatRoom *> m_rooms;
 
-    int m_notificationCount = 0;
-    int m_highlightCount = 0;
     QString m_activeSpaceId;
 
     void connectRoomSignals(NeoChatRoom *room);
 
 Q_SIGNALS:
     void connectionChanged();
-    void notificationCountChanged();
-    void highlightCountChanged();
-
     void roomAdded(NeoChatRoom *_t1);
 };
diff --git a/src/models/roomtreemodel.cpp b/src/models/roomtreemodel.cpp
index d78e644de..65c539a00 100644
--- a/src/models/roomtreemodel.cpp
+++ b/src/models/roomtreemodel.cpp
@@ -127,7 +127,7 @@ void RoomTreeModel::connectRoomSignals(NeoChatRoom *room)
         refreshRoomRoles(room, {DisplayNameRole});
     });
     connect(room, &Room::unreadStatsChanged, this, [this, room] {
-        refreshRoomRoles(room, {NotificationCountRole, HighlightCountRole});
+        refreshRoomRoles(room, {ContextNotificationCountRole, HasHighlightNotificationsRole});
     });
     connect(room, &Room::avatarChanged, this, [this, room] {
         refreshRoomRoles(room, {AvatarRole});
@@ -144,6 +144,9 @@ void RoomTreeModel::connectRoomSignals(NeoChatRoom *room)
     connect(room, &Room::pendingEventMerged, this, [this, room] {
         refreshRoomRoles(room, {SubtitleTextRole});
     });
+    connect(room, &NeoChatRoom::pushNotificationStateChanged, this, [this, room] {
+        refreshRoomRoles(room, {ContextNotificationCountRole, HasHighlightNotificationsRole});
+    });
 }
 
 void RoomTreeModel::refreshRoomRoles(NeoChatRoom *room, const QList<int> &roles)
@@ -208,8 +211,8 @@ QHash<int, QByteArray> RoomTreeModel::roleNames() const
     roles[CanonicalAliasRole] = "canonicalAlias";
     roles[TopicRole] = "topic";
     roles[CategoryRole] = "category";
-    roles[NotificationCountRole] = "notificationCount";
-    roles[HighlightCountRole] = "highlightCount";
+    roles[ContextNotificationCountRole] = "contextNotificationCount";
+    roles[HasHighlightNotificationsRole] = "hasHighlightNotifications";
     roles[LastActiveTimeRole] = "lastActiveTime";
     roles[JoinStateRole] = "joinState";
     roles[CurrentRoomRole] = "currentRoom";
@@ -271,11 +274,11 @@ QVariant RoomTreeModel::data(const QModelIndex &index, int role) const
     if (role == CategoryRole) {
         return NeoChatRoomType::typeForRoom(room);
     }
-    if (role == NotificationCountRole) {
-        return int(room->notificationCount());
+    if (role == ContextNotificationCountRole) {
+        return int(room->contextAwareNotificationCount());
     }
-    if (role == HighlightCountRole) {
-        return int(room->highlightCount());
+    if (role == HasHighlightNotificationsRole) {
+        return room->highlightCount() > 0 && room->contextAwareNotificationCount() > 0;
     }
     if (role == LastActiveTimeRole) {
         return room->lastActiveTime();
diff --git a/src/models/roomtreemodel.h b/src/models/roomtreemodel.h
index 2a28caa7a..4c3bae33a 100644
--- a/src/models/roomtreemodel.h
+++ b/src/models/roomtreemodel.h
@@ -33,8 +33,8 @@ public:
         CanonicalAliasRole, /**< The room canonical alias. */
         TopicRole, /**< The room topic. */
         CategoryRole, /**< The room category, e.g favourite. */
-        NotificationCountRole, /**< The number of notifications in the room. */
-        HighlightCountRole, /**< The number of highlighted messages in the room. */
+        ContextNotificationCountRole, /**< The context aware notification count for the room. */
+        HasHighlightNotificationsRole, /**< Whether there are any highlight notifications. */
         LastActiveTimeRole, /**< The timestamp of the last event sent in the room. */
         JoinStateRole, /**< The local user's join state in the room. */
         CurrentRoomRole, /**< The room object for the room. */
diff --git a/src/models/sortfilterroomtreemodel.cpp b/src/models/sortfilterroomtreemodel.cpp
index 539ebe3b5..5fb037e71 100644
--- a/src/models/sortfilterroomtreemodel.cpp
+++ b/src/models/sortfilterroomtreemodel.cpp
@@ -52,8 +52,8 @@ static const QVector<RoomTreeModel::EventRoles> activitySortPriorities{
     // Anything useful at the top, quiet rooms at the bottom
     RoomTreeModel::AttentionRole,
     // Organize by highlights, notifications, unread favorites, all other unread, in that order
-    RoomTreeModel::HighlightCountRole,
-    RoomTreeModel::NotificationCountRole,
+    RoomTreeModel::HasHighlightNotificationsRole,
+    RoomTreeModel::ContextNotificationCountRole,
     RoomTreeModel::FavouriteRole,
     // Finally sort by last activity time
     RoomTreeModel::LastActiveTimeRole,
diff --git a/src/neochatconnection.cpp b/src/neochatconnection.cpp
index d9dddc396..1c1dce35c 100644
--- a/src/neochatconnection.cpp
+++ b/src/neochatconnection.cpp
@@ -77,7 +77,9 @@ void NeoChatConnection::connectSignals()
         for (const auto &chatId : additions) {
             if (const auto chat = room(chatId)) {
                 connect(chat, &Room::unreadStatsChanged, this, [this]() {
+                    refreshBadgeNotificationCount();
                     Q_EMIT directChatNotificationsChanged();
+                    Q_EMIT directChatsHaveHighlightNotificationsChanged();
                 });
             }
         }
@@ -91,29 +93,51 @@ void NeoChatConnection::connectSignals()
         if (room->isDirectChat()) {
             connect(room, &Room::unreadStatsChanged, this, [this]() {
                 Q_EMIT directChatNotificationsChanged();
+                Q_EMIT directChatsHaveHighlightNotificationsChanged();
             });
         }
+        connect(room, &Room::unreadStatsChanged, this, [this]() {
+            refreshBadgeNotificationCount();
+            Q_EMIT homeNotificationsChanged();
+            Q_EMIT homeHaveHighlightNotificationsChanged();
+        });
     });
     connect(this, &NeoChatConnection::leftRoom, this, [this](Room *room, Room *prev) {
         Q_UNUSED(room)
         if (prev && prev->isDirectChat()) {
             Q_EMIT directChatInvitesChanged();
+            Q_EMIT directChatNotificationsChanged();
+            Q_EMIT directChatsHaveHighlightNotificationsChanged();
         }
+        refreshBadgeNotificationCount();
+        Q_EMIT homeNotificationsChanged();
+        Q_EMIT homeHaveHighlightNotificationsChanged();
     });
 
     connect(&SpaceHierarchyCache::instance(), &SpaceHierarchyCache::spaceHierarchyChanged, this, [this]() {
+        refreshBadgeNotificationCount();
         Q_EMIT homeNotificationsChanged();
+        Q_EMIT homeHaveHighlightNotificationsChanged();
     });
-    for (const auto room : allRooms()) {
-        connect(room, &NeoChatRoom::unreadStatsChanged, this, [this, room]() {
-            if (room != nullptr) {
-                auto category = NeoChatRoomType::typeForRoom(static_cast<NeoChatRoom *>(room));
-                if (!SpaceHierarchyCache::instance().isChild(room->id()) && (category == NeoChatRoomType::Normal || category == NeoChatRoomType::Favorite)
-                    && room->successorId().isEmpty()) {
-                    Q_EMIT homeNotificationsChanged();
-                }
-            }
-        });
+}
+
+int NeoChatConnection::badgeNotificationCount() const
+{
+    return m_badgeNotificationCount;
+}
+
+void NeoChatConnection::refreshBadgeNotificationCount()
+{
+    int count = 0;
+    for (const auto &r : allRooms()) {
+        if (const auto room = static_cast<NeoChatRoom *>(r)) {
+            count += room->contextAwareNotificationCount();
+        }
+    }
+
+    if (count != m_badgeNotificationCount) {
+        m_badgeNotificationCount = count;
+        Q_EMIT badgeNotificationCountChanged(this, m_badgeNotificationCount);
     }
 }
 
@@ -329,7 +353,7 @@ qsizetype NeoChatConnection::directChatNotifications() const
     for (const auto &chatId : directChats()) {
         if (!added.contains(chatId)) {
             if (const auto chat = room(chatId)) {
-                notifications += chat->notificationCount();
+                notifications += dynamic_cast<NeoChatRoom *>(chat)->contextAwareNotificationCount();
                 added += chatId;
             }
         }
@@ -337,29 +361,47 @@ qsizetype NeoChatConnection::directChatNotifications() const
     return notifications;
 }
 
+bool NeoChatConnection::directChatsHaveHighlightNotifications() const
+{
+    for (const auto &childId : directChats()) {
+        if (const auto child = static_cast<NeoChatRoom *>(room(childId))) {
+            if (child->highlightCount() > 0) {
+                return true;
+            }
+        }
+    }
+    return false;
+}
+
 qsizetype NeoChatConnection::homeNotifications() const
 {
     qsizetype notifications = 0;
     QStringList added;
     const auto &spaceHierarchyCache = SpaceHierarchyCache::instance();
-    for (const auto &room : allRooms()) {
-        auto category = NeoChatRoomType::typeForRoom(static_cast<NeoChatRoom *>(room));
-        if (!added.contains(room->id()) && room->joinState() == JoinState::Join && !room->isDirectChat() && !spaceHierarchyCache.isChild(room->id())
-            && room->successorId().isEmpty()) {
-            switch (category) {
-            case NeoChatRoomType::Normal:
-            case NeoChatRoomType::Favorite:
-                notifications += room->notificationCount();
-                break;
-            default:
-                notifications += room->highlightCount();
+    for (const auto &r : allRooms()) {
+        if (const auto room = static_cast<NeoChatRoom *>(r)) {
+            if (!added.contains(room->id()) && !room->isDirectChat() && !spaceHierarchyCache.isChild(room->id())) {
+                notifications += dynamic_cast<NeoChatRoom *>(room)->contextAwareNotificationCount();
+                added += room->id();
             }
-            added += room->id();
         }
     }
     return notifications;
 }
 
+bool NeoChatConnection::homeHaveHighlightNotifications() const
+{
+    const auto &spaceHierarchyCache = SpaceHierarchyCache::instance();
+    for (const auto &r : allRooms()) {
+        if (const auto room = static_cast<NeoChatRoom *>(r)) {
+            if (!room->isDirectChat() && !spaceHierarchyCache.isChild(room->id()) && room->highlightCount() > 0) {
+                return true;
+            }
+        }
+    }
+    return false;
+}
+
 bool NeoChatConnection::directChatInvites() const
 {
     auto inviteRooms = rooms(JoinState::Invite);
diff --git a/src/neochatconnection.h b/src/neochatconnection.h
index d42eacd7e..af03f74e2 100644
--- a/src/neochatconnection.h
+++ b/src/neochatconnection.h
@@ -32,11 +32,21 @@ class NeoChatConnection : public Quotient::Connection
      */
     Q_PROPERTY(qsizetype directChatNotifications READ directChatNotifications NOTIFY directChatNotificationsChanged)
 
+    /**
+     * @brief Whether any direct chats have highlight notifications.
+     */
+    Q_PROPERTY(bool directChatsHaveHighlightNotifications READ directChatsHaveHighlightNotifications NOTIFY directChatsHaveHighlightNotificationsChanged)
+
     /**
      * @brief The total number of notifications for all rooms in the home tab.
      */
     Q_PROPERTY(qsizetype homeNotifications READ homeNotifications NOTIFY homeNotificationsChanged)
 
+    /**
+     * @brief Whether any of the rooms in the home tab have highlight notifications.
+     */
+    Q_PROPERTY(bool homeHaveHighlightNotifications READ homeHaveHighlightNotifications NOTIFY homeHaveHighlightNotificationsChanged)
+
     /**
      * @brief Whether there is at least one invite to a direct chat.
      */
@@ -119,7 +129,13 @@ public:
     Q_INVOKABLE QString accountDataJsonString(const QString &type) const;
 
     qsizetype directChatNotifications() const;
+    bool directChatsHaveHighlightNotifications() const;
     qsizetype homeNotifications() const;
+    bool homeHaveHighlightNotifications() const;
+
+    int badgeNotificationCount() const;
+    void refreshBadgeNotificationCount();
+
     bool directChatInvites() const;
 
     // note: this is intentionally a copied QString because
@@ -134,15 +150,20 @@ public:
 Q_SIGNALS:
     void labelChanged();
     void directChatNotificationsChanged();
+    void directChatsHaveHighlightNotificationsChanged();
     void homeNotificationsChanged();
+    void homeHaveHighlightNotificationsChanged();
     void directChatInvitesChanged();
     void isOnlineChanged();
     void passwordStatus(NeoChatConnection::PasswordStatus status);
     void userConsentRequired(QUrl url);
+    void badgeNotificationCountChanged(NeoChatConnection *connection, int count);
 
 private:
     bool m_isOnline = true;
     void setIsOnline(bool isOnline);
 
     void connectSignals();
+
+    int m_badgeNotificationCount = 0;
 };
diff --git a/src/neochatroom.cpp b/src/neochatroom.cpp
index 57b998d0e..446efb9bb 100644
--- a/src/neochatroom.cpp
+++ b/src/neochatroom.cpp
@@ -10,6 +10,7 @@
 #include <QTemporaryFile>
 
 #include <Quotient/jobs/basejob.h>
+#include <Quotient/quotient_common.h>
 #include <Quotient/user.h>
 #include <qcoro/qcorosignal.h>
 
@@ -129,15 +130,32 @@ NeoChatRoom::NeoChatRoom(Connection *connection, QString roomId, JoinState joinS
     connect(&SpaceHierarchyCache::instance(), &SpaceHierarchyCache::spaceHierarchyChanged, this, [this]() {
         if (isSpace()) {
             Q_EMIT childrenNotificationCountChanged();
+            Q_EMIT childrenHaveHighlightNotificationsChanged();
         }
     });
     connect(&SpaceHierarchyCache::instance(), &SpaceHierarchyCache::spaceNotifcationCountChanged, this, [this](const QStringList &spaces) {
         if (spaces.contains(id())) {
             Q_EMIT childrenNotificationCountChanged();
+            Q_EMIT childrenHaveHighlightNotificationsChanged();
         }
     });
 }
 
+int NeoChatRoom::contextAwareNotificationCount() const
+{
+    // DOn't include spaces, rooms that the user hasn't joined and rooms where the user has joined the successor.
+    if (isSpace() || joinState() != JoinState::Join || successor(JoinState::Join) != nullptr) {
+        return 0;
+    }
+    if (m_currentPushNotificationState == PushNotificationState::Mute) {
+        return 0;
+    }
+    if (m_currentPushNotificationState == PushNotificationState::MentionKeyword || isLowPriority()) {
+        return int(highlightCount());
+    }
+    return int(notificationCount());
+}
+
 bool NeoChatRoom::hasFileUploading() const
 {
     return m_hasFileUploading;
@@ -1300,6 +1318,14 @@ qsizetype NeoChatRoom::childrenNotificationCount()
     return SpaceHierarchyCache::instance().notificationCountForSpace(id());
 }
 
+bool NeoChatRoom::childrenHaveHighlightNotifications() const
+{
+    if (!isSpace()) {
+        return false;
+    }
+    return SpaceHierarchyCache::instance().spaceHasHighlightNotifications(id());
+}
+
 void NeoChatRoom::addChild(const QString &childId, bool setChildParent, bool canonical, bool suggested)
 {
     if (!isSpace()) {
diff --git a/src/neochatroom.h b/src/neochatroom.h
index 989c60ac4..1821e0bdb 100644
--- a/src/neochatroom.h
+++ b/src/neochatroom.h
@@ -133,6 +133,13 @@ class NeoChatRoom : public Quotient::Room
      */
     Q_PROPERTY(qsizetype childrenNotificationCount READ childrenNotificationCount NOTIFY childrenNotificationCountChanged)
 
+    /**
+     * @brief Whether this room's children have any highlight notifications.
+     *
+     * Will always return false if this is not a space.
+     */
+    Q_PROPERTY(bool childrenHaveHighlightNotifications READ childrenHaveHighlightNotifications NOTIFY childrenHaveHighlightNotificationsChanged)
+
     /**
      * @brief Whether the local user has an invite to the room.
      *
@@ -405,6 +412,16 @@ public:
      */
     [[nodiscard]] bool lastEventIsSpoiler() const;
 
+    /**
+     * @brief Return the notification count for the room accounting for tags and notification state.
+     *
+     * The following rules are observed:
+     *  - Rooms tagged as low priority or mentions and keywords notification state
+     *    only return the number of highlights.
+     *  - Muted rooms always return 0.
+     */
+    int contextAwareNotificationCount() const;
+
     [[nodiscard]] bool hasFileUploading() const;
     void setHasFileUploading(bool value);
 
@@ -535,6 +552,8 @@ public:
 
     qsizetype childrenNotificationCount();
 
+    bool childrenHaveHighlightNotifications() const;
+
     /**
      * @brief Add the given room as a child.
      *
@@ -825,6 +844,7 @@ Q_SIGNALS:
     void canonicalParentChanged();
     void lastActiveTimeChanged();
     void childrenNotificationCountChanged();
+    void childrenHaveHighlightNotificationsChanged();
     void isInviteChanged();
     void readOnlyChanged();
     void displayNameChanged();
diff --git a/src/qml/RoomDelegate.qml b/src/qml/RoomDelegate.qml
index 1ddf0d1fe..f8ffebd6b 100644
--- a/src/qml/RoomDelegate.qml
+++ b/src/qml/RoomDelegate.qml
@@ -18,8 +18,8 @@ Delegates.RoundedItemDelegate {
     id: root
 
     required property int index
-    required property int notificationCount
-    required property int highlightCount
+    required property int contextNotificationCount
+    required property bool hasHighlightNotifications
     required property NeoChatRoom currentRoom
     required property NeoChatConnection connection
     required property string avatar
@@ -28,7 +28,7 @@ Delegates.RoundedItemDelegate {
 
     property bool collapsed: false
 
-    readonly property bool hasNotifications: currentRoom.pushNotificationState === PushNotificationState.MentionKeyword || currentRoom.isLowPriority ? highlightCount > 0 : notificationCount > 0
+    readonly property bool hasNotifications: contextNotificationCount > 0
 
     Accessible.name: root.displayName
     Accessible.onPressAction: clicked()
@@ -106,16 +106,16 @@ Delegates.RoundedItemDelegate {
         QQC2.Label {
             id: notificationCountLabel
 
-            text: currentRoom.pushNotificationState === PushNotificationState.MentionKeyword || currentRoom.isLowPriority ? root.highlightCount : root.notificationCount
-            visible: root.hasNotifications && currentRoom.pushNotificationState !== PushNotificationState.Mute && !root.collapsed
+            text: root.contextNotificationCount
+            visible: root.hasNotifications && !root.collapsed
             color: Kirigami.Theme.textColor
             horizontalAlignment: Text.AlignHCenter
             verticalAlignment: Text.AlignVCenter
             background: Rectangle {
                 visible: root.hasNotifications
                 Kirigami.Theme.colorSet: Kirigami.Theme.Button
-                color: highlightCount > 0 ? Kirigami.Theme.positiveTextColor : Kirigami.Theme.disabledTextColor
-                opacity: highlightCount > 0 ? 1 : 0.3
+                Kirigami.Theme.inherit: false
+                color: root.hasHighlightNotifications > 0 ? Kirigami.Theme.positiveTextColor : Kirigami.Theme.backgroundColor
                 radius: height / 2
             }
 
@@ -141,7 +141,7 @@ Delegates.RoundedItemDelegate {
     }
 
     function createRoomListContextMenu() {
-        const component = Qt.createComponent(Qt.createComponent('org.kde.neochat', 'ContextMenu.qml'));
+        const component = Qt.createComponent('org.kde.neochat', 'ContextMenu.qml');
         if (component.status === Component.Error) {
             console.error(component.errorString());
         }
diff --git a/src/qml/SpaceDrawer.qml b/src/qml/SpaceDrawer.qml
index 12703f3a7..f1b8750ac 100644
--- a/src/qml/SpaceDrawer.qml
+++ b/src/qml/SpaceDrawer.qml
@@ -125,7 +125,8 @@ QQC2.Control {
                             background: Rectangle {
                                 visible: true
                                 Kirigami.Theme.colorSet: Kirigami.Theme.Button
-                                color: Kirigami.Theme.positiveTextColor
+                                Kirigami.Theme.inherit: false
+                                color: root.connection.homeHaveHighlightNotifications ? Kirigami.Theme.positiveTextColor : Kirigami.Theme.backgroundColor
                                 radius: height / 2
                             }
 
@@ -173,7 +174,8 @@ QQC2.Control {
                             background: Rectangle {
                                 visible: true
                                 Kirigami.Theme.colorSet: Kirigami.Theme.Button
-                                color: Kirigami.Theme.positiveTextColor
+                                Kirigami.Theme.inherit: false
+                                color: root.connection.directChatsHaveHighlightNotifications ? Kirigami.Theme.positiveTextColor : Kirigami.Theme.backgroundColor
                                 radius: height / 2
                             }
 
@@ -239,10 +241,12 @@ QQC2.Control {
                                 visible: spaceDelegate.currentRoom.childrenNotificationCount > 0 && root.selectedSpaceId != spaceDelegate.roomId
                                 color: Kirigami.Theme.textColor
                                 horizontalAlignment: Text.AlignHCenter
+                                verticalAlignment: Text.AlignVCenter
                                 background: Rectangle {
                                     visible: true
                                     Kirigami.Theme.colorSet: Kirigami.Theme.Button
-                                    color: Kirigami.Theme.positiveTextColor
+                                    Kirigami.Theme.inherit: false
+                                    color: spaceDelegate.currentRoom.childrenHaveHighlightNotifications ? Kirigami.Theme.positiveTextColor : Kirigami.Theme.backgroundColor
                                     radius: height / 2
                                 }
 
diff --git a/src/spacehierarchycache.cpp b/src/spacehierarchycache.cpp
index c24ab3a5b..4898ebad9 100644
--- a/src/spacehierarchycache.cpp
+++ b/src/spacehierarchycache.cpp
@@ -126,16 +126,8 @@ qsizetype SpaceHierarchyCache::notificationCountForSpace(const QString &spaceId)
 
     for (const auto &childId : children) {
         if (const auto child = static_cast<NeoChatRoom *>(m_connection->room(childId))) {
-            auto category = NeoChatRoomType::typeForRoom(child);
-            if (!added.contains(child->id()) && child->successorId().isEmpty()) {
-                switch (category) {
-                case NeoChatRoomType::Normal:
-                case NeoChatRoomType::Favorite:
-                    notifications += child->notificationCount();
-                    break;
-                default:
-                    notifications += child->highlightCount();
-                }
+            if (!added.contains(child->id())) {
+                notifications += child->contextAwareNotificationCount();
                 added += child->id();
             }
         }
@@ -143,6 +135,19 @@ qsizetype SpaceHierarchyCache::notificationCountForSpace(const QString &spaceId)
     return notifications;
 }
 
+bool SpaceHierarchyCache::spaceHasHighlightNotifications(const QString &spaceId)
+{
+    auto children = m_spaceHierarchy[spaceId];
+    for (const auto &childId : children) {
+        if (const auto child = static_cast<NeoChatRoom *>(m_connection->room(childId))) {
+            if (child->highlightCount() > 0) {
+                return true;
+            }
+        }
+    }
+    return false;
+}
+
 bool SpaceHierarchyCache::isChild(const QString &roomId) const
 {
     const auto childrens = m_spaceHierarchy.values();
diff --git a/src/spacehierarchycache.h b/src/spacehierarchycache.h
index 78ee31553..069e8f755 100644
--- a/src/spacehierarchycache.h
+++ b/src/spacehierarchycache.h
@@ -69,6 +69,11 @@ public:
      */
     qsizetype notificationCountForSpace(const QString &spaceId);
 
+    /**
+     * @brief Whether any of the child rooms have highlight notifications.
+     */
+    bool spaceHasHighlightNotifications(const QString &spaceId);
+
     /**
      * @brief Returns whether the room is a child space of any space.
      *