diff --git a/app/models/notification.rb b/app/models/notification.rb
index a5ee6dd4eac..42768c594da 100644
--- a/app/models/notification.rb
+++ b/app/models/notification.rb
@@ -164,6 +164,7 @@ class Notification < ActiveRecord::Base
         new_features: 37,
         admin_problems: 38,
         linked_consolidated: 39,
+        chat_watched_thread: 40,
         following: 800, # Used by https://github.com/discourse/discourse-follow
         following_created_topic: 801, # Used by https://github.com/discourse/discourse-follow
         following_replied: 802, # Used by https://github.com/discourse/discourse-follow
diff --git a/plugins/chat/app/jobs/regular/chat/notify_watching.rb b/plugins/chat/app/jobs/regular/chat/notify_watching.rb
index 319f9af02ac..ac05cf1ccc2 100644
--- a/plugins/chat/app/jobs/regular/chat/notify_watching.rb
+++ b/plugins/chat/app/jobs/regular/chat/notify_watching.rb
@@ -15,7 +15,6 @@ module Jobs
         @is_direct_message_channel = @chat_channel.direct_message_channel?
 
         always_notification_level = ::Chat::UserChatChannelMembership::NOTIFICATION_LEVELS[:always]
-
         members =
           ::Chat::UserChatChannelMembership
             .includes(user: :groups)
@@ -25,9 +24,10 @@ module Jobs
             .where(chat_channel_id: @chat_channel.id)
             .where(following: true)
             .where(
-              "desktop_notification_level = ? OR mobile_notification_level = ?",
-              always_notification_level,
-              always_notification_level,
+              "desktop_notification_level = :always OR mobile_notification_level = :always OR users.id IN (SELECT user_id FROM user_chat_thread_memberships WHERE thread_id = :thread_id AND notification_level = :watching)",
+              always: always_notification_level,
+              thread_id: @chat_message.thread_id,
+              watching: ::Chat::NotificationLevels.all[:watching],
             )
             .merge(User.not_suspended)
 
@@ -83,6 +83,17 @@ module Jobs
           channel_id: @chat_channel.id,
         }
 
+        if @chat_message.in_thread? && !membership.muted?
+          thread_membership =
+            ::Chat::UserChatThreadMembership.find_by(
+              user_id: user.id,
+              thread_id: @chat_message.thread_id,
+              notification_level: "watching",
+            )
+
+          thread_membership && create_watched_thread_notification(thread_membership)
+        end
+
         if membership.desktop_notifications_always? && !membership.muted?
           send_notification =
             DiscoursePluginRegistry.push_notification_filters.all? do |filter|
@@ -101,6 +112,27 @@ module Jobs
           ::PostAlerter.push_notification(user, payload)
         end
       end
+
+      def create_watched_thread_notification(thread_membership)
+        thread = @chat_message.thread
+        description = thread.title.presence || thread.original_message.message
+
+        data = {
+          username: @creator.username,
+          chat_message_id: @chat_message.id,
+          chat_channel_id: @chat_channel.id,
+          chat_thread_id: @chat_message.thread_id,
+          last_read_message_id: thread_membership&.last_read_message_id,
+          description: description,
+          user_ids: [@chat_message.user_id],
+        }
+
+        Notification.consolidate_or_create!(
+          notification_type: ::Notification.types[:chat_watched_thread],
+          user_id: thread_membership.user_id,
+          data: data.to_json,
+        )
+      end
     end
   end
 end
diff --git a/plugins/chat/app/models/chat/thread.rb b/plugins/chat/app/models/chat/thread.rb
index 0ced16998ca..1a104c4f36a 100644
--- a/plugins/chat/app/models/chat/thread.rb
+++ b/plugins/chat/app/models/chat/thread.rb
@@ -43,7 +43,10 @@ module Chat
     before_create { self.last_message_id = self.original_message_id }
 
     def add(user, notification_level: Chat::NotificationLevels.all[:tracking])
-      Chat::UserChatThreadMembership.find_or_create_by!(
+      membership = Chat::UserChatThreadMembership.find_by(user: user, thread: self)
+      return membership if membership
+
+      Chat::UserChatThreadMembership.create!(
         user: user,
         thread: self,
         notification_level: notification_level,
diff --git a/plugins/chat/app/models/chat/tracking_state_report.rb b/plugins/chat/app/models/chat/tracking_state_report.rb
index b15f273f9c3..17a3c51488f 100644
--- a/plugins/chat/app/models/chat/tracking_state_report.rb
+++ b/plugins/chat/app/models/chat/tracking_state_report.rb
@@ -8,11 +8,15 @@ module Chat
     attr_accessor :channel_tracking, :thread_tracking
 
     class TrackingStateInfo
-      attr_accessor :unread_count, :mention_count, :last_reply_created_at
+      attr_accessor :unread_count,
+                    :mention_count,
+                    :watched_threads_unread_count,
+                    :last_reply_created_at
 
       def initialize(info)
         @unread_count = info.present? ? info[:unread_count] : 0
         @mention_count = info.present? ? info[:mention_count] : 0
+        @watched_threads_unread_count = info.present? ? info[:watched_threads_unread_count] : 0
         @last_reply_created_at = info.present? ? info[:last_reply_created_at] : nil
       end
 
@@ -24,6 +28,7 @@ module Chat
         {
           unread_count: unread_count,
           mention_count: mention_count,
+          watched_threads_unread_count: watched_threads_unread_count,
           last_reply_created_at: last_reply_created_at,
         }
       end
diff --git a/plugins/chat/app/queries/chat/channel_unreads_query.rb b/plugins/chat/app/queries/chat/channel_unreads_query.rb
index 972ce7942fd..e64f451ea4c 100644
--- a/plugins/chat/app/queries/chat/channel_unreads_query.rb
+++ b/plugins/chat/app/queries/chat/channel_unreads_query.rb
@@ -43,11 +43,28 @@ module Chat
           WHERE NOT read
           AND user_chat_channel_memberships.chat_channel_id = memberships.chat_channel_id
           AND notifications.user_id = :user_id
-          AND notifications.notification_type = :notification_type
+          AND notifications.notification_type = :notification_type_mention
           AND (data::json->>'chat_message_id')::bigint > COALESCE(user_chat_channel_memberships.last_read_message_id, 0)
           AND (data::json->>'chat_channel_id')::bigint = memberships.chat_channel_id
           AND (chat_messages.thread_id IS NULL OR chat_messages.id = chat_threads.original_message_id)
         ) AS mention_count,
+        (
+          SELECT COUNT(*) AS watched_threads_unread_count
+          FROM chat_messages
+          INNER JOIN chat_channels ON chat_channels.id = chat_messages.chat_channel_id
+          INNER JOIN chat_threads ON chat_threads.id = chat_messages.thread_id AND chat_threads.channel_id = chat_messages.chat_channel_id
+          INNER JOIN user_chat_thread_memberships ON user_chat_thread_memberships.thread_id = chat_threads.id
+          WHERE chat_messages.chat_channel_id = memberships.chat_channel_id
+          AND chat_messages.thread_id = user_chat_thread_memberships.thread_id
+          AND chat_messages.user_id != :user_id
+          AND chat_messages.deleted_at IS NULL
+          AND chat_messages.thread_id IS NOT NULL
+          AND chat_messages.id != chat_threads.original_message_id
+          AND chat_messages.id > COALESCE(user_chat_thread_memberships.last_read_message_id, 0)
+          AND user_chat_thread_memberships.user_id = :user_id
+          AND user_chat_thread_memberships.notification_level = :watching_level
+          AND (chat_channels.threading_enabled OR chat_threads.force = true)
+        ) AS watched_threads_unread_count,
         memberships.chat_channel_id AS channel_id
         FROM user_chat_channel_memberships AS memberships
         WHERE memberships.user_id = :user_id AND memberships.chat_channel_id IN (:channel_ids)
@@ -59,12 +76,12 @@ module Chat
         SELECT * FROM (
           #{sql}
         ) AS channel_tracking
-        WHERE (unread_count > 0 OR mention_count > 0)
+        WHERE (unread_count > 0 OR mention_count > 0 OR watched_threads_unread_count > 0)
       SQL
 
       sql += <<~SQL if include_missing_memberships && include_read
         UNION ALL
-        SELECT 0 AS unread_count, 0 AS mention_count, chat_channels.id AS channel_id
+        SELECT 0 AS unread_count, 0 AS mention_count, 0 AS watched_threads_unread_count, chat_channels.id AS channel_id
         FROM chat_channels
         LEFT JOIN user_chat_channel_memberships ON user_chat_channel_memberships.chat_channel_id = chat_channels.id
           AND user_chat_channel_memberships.user_id = :user_id
@@ -77,7 +94,8 @@ module Chat
         sql,
         channel_ids: channel_ids,
         user_id: user_id,
-        notification_type: Notification.types[:chat_mention],
+        notification_type_mention: ::Notification.types[:chat_mention],
+        watching_level: ::Chat::UserChatThreadMembership.notification_levels[:watching],
         limit: MAX_CHANNELS,
       )
     end
diff --git a/plugins/chat/app/queries/chat/thread_unreads_query.rb b/plugins/chat/app/queries/chat/thread_unreads_query.rb
index 73841f09721..f3d2f337bcc 100644
--- a/plugins/chat/app/queries/chat/thread_unreads_query.rb
+++ b/plugins/chat/app/queries/chat/thread_unreads_query.rb
@@ -54,12 +54,33 @@ module Chat
           AND chat_messages.thread_id IS NOT NULL
           AND chat_messages.id != chat_threads.original_message_id
           AND (chat_channels.threading_enabled OR chat_threads.force = true)
-          AND user_chat_thread_memberships.notification_level NOT IN (:quiet_notification_levels)
+          AND user_chat_thread_memberships.notification_level = :tracking_level
           AND original_message.deleted_at IS NULL
           AND user_chat_channel_memberships.muted = false
           AND user_chat_channel_memberships.user_id = :user_id
         ) AS unread_count,
-        0 AS mention_count,
+        0 as mention_count,
+        (
+          SELECT COUNT(*) AS watched_threads_unread_count
+          FROM chat_messages
+          INNER JOIN chat_channels ON chat_channels.id = chat_messages.chat_channel_id
+          INNER JOIN chat_threads ON chat_threads.id = chat_messages.thread_id AND chat_threads.channel_id = chat_messages.chat_channel_id
+          INNER JOIN user_chat_thread_memberships ON user_chat_thread_memberships.thread_id = chat_threads.id
+          INNER JOIN user_chat_channel_memberships ON user_chat_channel_memberships.chat_channel_id = chat_messages.chat_channel_id
+          INNER JOIN chat_messages AS original_message ON original_message.id = chat_threads.original_message_id
+          WHERE chat_messages.thread_id = memberships.thread_id
+          AND chat_messages.user_id != :user_id
+          AND user_chat_thread_memberships.user_id = :user_id
+          AND chat_messages.id > COALESCE(user_chat_thread_memberships.last_read_message_id, 0)
+          AND chat_messages.deleted_at IS NULL
+          AND chat_messages.thread_id IS NOT NULL
+          AND chat_messages.id != chat_threads.original_message_id
+          AND (chat_channels.threading_enabled OR chat_threads.force = true)
+          AND user_chat_thread_memberships.notification_level = :watching_level
+          AND original_message.deleted_at IS NULL
+          AND user_chat_channel_memberships.user_id = :user_id
+          AND NOT user_chat_channel_memberships.muted
+        ) AS watched_threads_unread_count,
         chat_threads.channel_id,
         memberships.thread_id
         FROM user_chat_thread_memberships AS memberships
@@ -75,12 +96,12 @@ module Chat
           SELECT * FROM (
             #{sql}
           ) AS thread_tracking
-          WHERE (unread_count > 0 OR mention_count > 0)
+          WHERE (unread_count > 0 OR mention_count > 0 OR watched_threads_unread_count > 0)
         SQL
 
       sql += <<~SQL if include_missing_memberships && include_read
         UNION ALL
-        SELECT 0 AS unread_count, 0 AS mention_count, chat_threads.channel_id, chat_threads.id AS thread_id
+        SELECT 0 AS unread_count, 0 AS mention_count, 0 AS watched_threads_unread_count, chat_threads.channel_id, chat_threads.id AS thread_id
         FROM chat_channels
         INNER JOIN chat_threads ON chat_threads.channel_id = chat_channels.id
         LEFT JOIN user_chat_thread_memberships ON user_chat_thread_memberships.thread_id = chat_threads.id
@@ -99,10 +120,8 @@ module Chat
         user_id: user_id,
         notification_type: ::Notification.types[:chat_mention],
         limit: MAX_THREADS,
-        quiet_notification_levels: [
-          ::Chat::UserChatThreadMembership.notification_levels[:muted],
-          ::Chat::UserChatThreadMembership.notification_levels[:normal],
-        ],
+        tracking_level: ::Chat::UserChatThreadMembership.notification_levels[:tracking],
+        watching_level: ::Chat::UserChatThreadMembership.notification_levels[:watching],
       )
     end
   end
diff --git a/plugins/chat/app/queries/chat/tracking_state_report_query.rb b/plugins/chat/app/queries/chat/tracking_state_report_query.rb
index 21e1d21fa38..b042c04f6b9 100644
--- a/plugins/chat/app/queries/chat/tracking_state_report_query.rb
+++ b/plugins/chat/app/queries/chat/tracking_state_report_query.rb
@@ -52,7 +52,14 @@ module Chat
               include_read: include_read,
             )
             .map do |ct|
-              [ct.channel_id, { mention_count: ct.mention_count, unread_count: ct.unread_count }]
+              [
+                ct.channel_id,
+                {
+                  mention_count: ct.mention_count,
+                  unread_count: ct.unread_count,
+                  watched_threads_unread_count: ct.watched_threads_unread_count,
+                },
+              ]
             end
             .to_h
       end
@@ -85,6 +92,7 @@ module Chat
                 channel_id: tt.channel_id,
                 mention_count: tt.mention_count,
                 unread_count: tt.unread_count,
+                watched_threads_unread_count: tt.watched_threads_unread_count,
               }
 
               if include_last_reply_details
diff --git a/plugins/chat/app/services/chat/lookup_user_threads.rb b/plugins/chat/app/services/chat/lookup_user_threads.rb
index ff340f5810e..75d311e1553 100644
--- a/plugins/chat/app/services/chat/lookup_user_threads.rb
+++ b/plugins/chat/app/services/chat/lookup_user_threads.rb
@@ -103,6 +103,7 @@ module Chat
           "user_chat_thread_memberships.notification_level IN (?)",
           [
             ::Chat::UserChatThreadMembership.notification_levels[:normal],
+            ::Chat::UserChatThreadMembership.notification_levels[:watching],
             ::Chat::UserChatThreadMembership.notification_levels[:tracking],
           ],
         )
diff --git a/plugins/chat/assets/javascripts/discourse/components/chat-channel-unread-indicator.gjs b/plugins/chat/assets/javascripts/discourse/components/chat-channel-unread-indicator.gjs
index 7f28d434d89..21b6347e367 100644
--- a/plugins/chat/assets/javascripts/discourse/components/chat-channel-unread-indicator.gjs
+++ b/plugins/chat/assets/javascripts/discourse/components/chat-channel-unread-indicator.gjs
@@ -22,6 +22,9 @@ export default class ChatChannelUnreadIndicator extends Component {
     if (this.#hasChannelMentions()) {
       return this.args.channel.tracking.mentionCount;
     }
+    if (this.#hasWatchedThreads()) {
+      return this.args.channel.tracking.watchedThreadsUnreadCount;
+    }
     return this.args.channel.tracking.unreadCount;
   }
 
@@ -30,7 +33,9 @@ export default class ChatChannelUnreadIndicator extends Component {
       return this.#hasChannelMentions();
     }
     return (
-      this.args.channel.isDirectMessageChannel || this.#hasChannelMentions()
+      this.args.channel.isDirectMessageChannel ||
+      this.#hasChannelMentions() ||
+      this.#hasWatchedThreads()
     );
   }
 
@@ -38,6 +43,10 @@ export default class ChatChannelUnreadIndicator extends Component {
     return this.args.channel.tracking.mentionCount > 0;
   }
 
+  #hasWatchedThreads() {
+    return this.args.channel.tracking.watchedThreadsUnreadCount > 0;
+  }
+
   #onlyMentions() {
     return hasChatIndicator(this.currentUser).ONLY_MENTIONS;
   }
diff --git a/plugins/chat/assets/javascripts/discourse/components/chat-channel.gjs b/plugins/chat/assets/javascripts/discourse/components/chat-channel.gjs
index 6b4e0f7b66c..be026a9a829 100644
--- a/plugins/chat/assets/javascripts/discourse/components/chat-channel.gjs
+++ b/plugins/chat/assets/javascripts/discourse/components/chat-channel.gjs
@@ -680,6 +680,8 @@ export default class ChatChannel extends Component {
 
     thread.tracking.unreadCount = threadTracking[thread.id].unread_count;
     thread.tracking.mentionCount = threadTracking[thread.id].mention_count;
+    thread.tracking.watchedThreadsUnreadCount =
+      threadTracking[thread.id].watched_threads_unread_count;
   }
 
   #flushIgnoreNextScroll() {
diff --git a/plugins/chat/assets/javascripts/discourse/components/chat-thread-list.gjs b/plugins/chat/assets/javascripts/discourse/components/chat-thread-list.gjs
index 55833ae1337..f6f782a5f1b 100644
--- a/plugins/chat/assets/javascripts/discourse/components/chat-thread-list.gjs
+++ b/plugins/chat/assets/javascripts/discourse/components/chat-thread-list.gjs
@@ -84,6 +84,30 @@ export default class ChatThreadList extends Component {
           thread.originalMessage?.id !== thread.lastMessageId
       )
       .sort((threadA, threadB) => {
+        // if both threads have watched unread count, then show latest first
+        if (
+          threadA.tracking.watchedThreadsUnreadCount &&
+          threadB.tracking.watchedThreadsUnreadCount
+        ) {
+          if (
+            threadA.preview.lastReplyCreatedAt >
+            threadB.preview.lastReplyCreatedAt
+          ) {
+            return -1;
+          } else {
+            return 1;
+          }
+        }
+
+        // sort threads by watched unread count
+        if (threadA.tracking.watchedThreadsUnreadCount) {
+          return -1;
+        }
+
+        if (threadB.tracking.watchedThreadsUnreadCount) {
+          return 1;
+        }
+
         // If both are unread we just want to sort by last reply date + time descending.
         if (threadA.tracking.unreadCount && threadB.tracking.unreadCount) {
           if (
diff --git a/plugins/chat/assets/javascripts/discourse/components/chat/footer/unread-indicator.gjs b/plugins/chat/assets/javascripts/discourse/components/chat/footer/unread-indicator.gjs
index a3c3971c4fc..dc57ad8d175 100644
--- a/plugins/chat/assets/javascripts/discourse/components/chat/footer/unread-indicator.gjs
+++ b/plugins/chat/assets/javascripts/discourse/components/chat/footer/unread-indicator.gjs
@@ -28,6 +28,8 @@ export default class FooterUnreadIndicator extends Component {
       return this.chatTrackingStateManager.publicChannelMentionCount;
     } else if (this.badgeType === DMS_TAB) {
       return this.chatTrackingStateManager.directMessageUnreadCount;
+    } else if (this.badgeType === THREADS_TAB) {
+      return this.chatTrackingStateManager.watchedThreadsUnreadCount;
     } else {
       return 0;
     }
diff --git a/plugins/chat/assets/javascripts/discourse/components/chat/message-creator/channel.gjs b/plugins/chat/assets/javascripts/discourse/components/chat/message-creator/channel.gjs
index b268e5e2906..eb78c9e9ffe 100644
--- a/plugins/chat/assets/javascripts/discourse/components/chat/message-creator/channel.gjs
+++ b/plugins/chat/assets/javascripts/discourse/components/chat/message-creator/channel.gjs
@@ -11,7 +11,9 @@ export default class Channel extends Component {
     return (
       this.args.item.model.isDirectMessageChannel ||
       (this.args.item.model.isCategoryChannel &&
-        this.args.item.model.tracking.mentionCount > 0)
+        this.args.item.model.tracking.mentionCount > 0) ||
+      (this.args.item.model.isCategoryChannel &&
+        this.args.item.model.tracking.watchedThreadsUnreadCount > 0)
     );
   }
 
diff --git a/plugins/chat/assets/javascripts/discourse/components/chat/thread-list/item.gjs b/plugins/chat/assets/javascripts/discourse/components/chat/thread-list/item.gjs
index 9782c87c569..0e5d9cf5a3c 100644
--- a/plugins/chat/assets/javascripts/discourse/components/chat/thread-list/item.gjs
+++ b/plugins/chat/assets/javascripts/discourse/components/chat/thread-list/item.gjs
@@ -25,6 +25,7 @@ export default class ChatThreadListItem extends Component {
       class={{concatClass
         "chat-thread-list-item"
         (if (gt @thread.tracking.unreadCount 0) "-is-unread")
+        (if (gt @thread.tracking.watchedThreadsUnreadCount 0) "-is-urgent")
       }}
       data-thread-id={{@thread.id}}
       ...attributes
diff --git a/plugins/chat/assets/javascripts/discourse/components/thread-unread-indicator/index.gjs b/plugins/chat/assets/javascripts/discourse/components/thread-unread-indicator/index.gjs
index cacd5be8e29..bae75c0d459 100644
--- a/plugins/chat/assets/javascripts/discourse/components/thread-unread-indicator/index.gjs
+++ b/plugins/chat/assets/javascripts/discourse/components/thread-unread-indicator/index.gjs
@@ -1,21 +1,32 @@
 import Component from "@glimmer/component";
 
+const MAX_UNREAD_COUNT = 99;
+
 export default class ChatThreadUnreadIndicator extends Component {
   get unreadCount() {
     return this.args.thread.tracking.unreadCount;
   }
 
+  get urgentCount() {
+    return this.args.thread.tracking.watchedThreadsUnreadCount;
+  }
+
   get showUnreadIndicator() {
-    return this.unreadCount > 0;
+    return this.unreadCount > 0 || this.urgentCount > 0;
   }
 
   get unreadCountLabel() {
-    return this.unreadCount > 99 ? "99+" : this.unreadCount;
+    const count = this.urgentCount > 0 ? this.urgentCount : this.unreadCount;
+    return count > MAX_UNREAD_COUNT ? `${MAX_UNREAD_COUNT}+` : count;
+  }
+
+  get isUrgent() {
+    return this.urgentCount > 0 ? "-urgent" : "";
   }
 
   <template>
     {{#if this.showUnreadIndicator}}
-      <span class="chat-thread-list-item-unread-indicator">
+      <span class="chat-thread-list-item-unread-indicator {{this.isUrgent}}">
         <span class="chat-thread-list-item-unread-indicator__number">
           {{this.unreadCountLabel}}
         </span>
diff --git a/plugins/chat/assets/javascripts/discourse/components/user-threads/index.gjs b/plugins/chat/assets/javascripts/discourse/components/user-threads/index.gjs
index cc9ac806442..b548d35b9ac 100644
--- a/plugins/chat/assets/javascripts/discourse/components/user-threads/index.gjs
+++ b/plugins/chat/assets/javascripts/discourse/components/user-threads/index.gjs
@@ -46,6 +46,8 @@ export default class UserThreads extends Component {
       if (tracking) {
         thread.tracking.mentionCount = tracking.mention_count;
         thread.tracking.unreadCount = tracking.unread_count;
+        thread.tracking.watchedThreadsUnreadCount =
+          tracking.watched_threads_unread_count;
       }
 
       this.trackChannel(thread.channel);
diff --git a/plugins/chat/assets/javascripts/discourse/initializers/chat-user-menu.js b/plugins/chat/assets/javascripts/discourse/initializers/chat-user-menu.js
index 5fb0f671e20..d724a37d2b8 100644
--- a/plugins/chat/assets/javascripts/discourse/initializers/chat-user-menu.js
+++ b/plugins/chat/assets/javascripts/discourse/initializers/chat-user-menu.js
@@ -103,6 +103,43 @@ export default {
             };
           }
         );
+
+        api.registerNotificationTypeRenderer(
+          "chat_watched_thread",
+          (NotificationItemBase) => {
+            return class extends NotificationItemBase {
+              icon = "discourse-threads";
+              linkTitle = I18n.t("notifications.titles.chat_watched_thread");
+              description = this.notification.data.description;
+
+              get label() {
+                const data = this.notification.data;
+
+                if (data.user_ids.length > 2) {
+                  return I18n.t("notifications.chat_watched_thread_label", {
+                    username: formatUsername(data.username2),
+                    count: data.user_ids.length - 1,
+                  });
+                } else if (data.user_ids.length === 2) {
+                  return I18n.t("notifications.chat_watched_thread_label", {
+                    username: formatUsername(data.username2),
+                    username2: formatUsername(data.username),
+                    count: 1,
+                  });
+                } else {
+                  return formatUsername(data.username);
+                }
+              }
+
+              get linkHref() {
+                const data = this.notification.data;
+                return getURL(
+                  `/chat/c/-/${data.chat_channel_id}/t/${data.chat_thread_id}/${data.chat_message_id}`
+                );
+              }
+            };
+          }
+        );
       }
 
       if (api.registerUserMenuTab) {
@@ -123,7 +160,8 @@ export default {
             get count() {
               return (
                 this.getUnreadCountForType("chat_mention") +
-                this.getUnreadCountForType("chat_invitation")
+                this.getUnreadCountForType("chat_invitation") +
+                this.getUnreadCountForType("chat_watched_thread")
               );
             }
 
@@ -133,6 +171,7 @@ export default {
                 "chat_mention",
                 "chat_message",
                 "chat_quoted",
+                "chat_watched_thread",
               ];
             }
           };
diff --git a/plugins/chat/assets/javascripts/discourse/lib/chat-notification-levels.js b/plugins/chat/assets/javascripts/discourse/lib/chat-notification-levels.js
index 32f4c66abd2..da481496867 100644
--- a/plugins/chat/assets/javascripts/discourse/lib/chat-notification-levels.js
+++ b/plugins/chat/assets/javascripts/discourse/lib/chat-notification-levels.js
@@ -4,6 +4,7 @@ import {
 } from "discourse/lib/notification-levels";
 
 export const threadNotificationButtonLevels = [
+  NotificationLevels.WATCHING,
   NotificationLevels.TRACKING,
   NotificationLevels.REGULAR,
 ].map(buttonDetails);
diff --git a/plugins/chat/assets/javascripts/discourse/models/chat-channel.js b/plugins/chat/assets/javascripts/discourse/models/chat-channel.js
index e398e067457..ab4ecfcedb4 100644
--- a/plugins/chat/assets/javascripts/discourse/models/chat-channel.js
+++ b/plugins/chat/assets/javascripts/discourse/models/chat-channel.js
@@ -114,6 +114,12 @@ export default class ChatChannel {
     return Array.from(this.threadsManager.unreadThreadOverview.values()).length;
   }
 
+  get watchedThreadsUnreadCount() {
+    return this.threadsManager.threads.reduce((unreadCount, thread) => {
+      return unreadCount + thread.tracking.watchedThreadsUnreadCount;
+    }, 0);
+  }
+
   updateLastViewedAt() {
     this.currentUserMembership.lastViewedAt = new Date();
   }
diff --git a/plugins/chat/assets/javascripts/discourse/models/chat-tracking-state.js b/plugins/chat/assets/javascripts/discourse/models/chat-tracking-state.js
index d69862b7916..78232e4cdac 100644
--- a/plugins/chat/assets/javascripts/discourse/models/chat-tracking-state.js
+++ b/plugins/chat/assets/javascripts/discourse/models/chat-tracking-state.js
@@ -7,16 +7,19 @@ export default class ChatTrackingState {
 
   @tracked _unreadCount;
   @tracked _mentionCount;
+  @tracked _watchedThreadsUnreadCount;
 
   constructor(owner, params = {}) {
     setOwner(this, owner);
     this._unreadCount = params.unreadCount ?? 0;
     this._mentionCount = params.mentionCount ?? 0;
+    this._watchedThreadsUnreadCount = params.watchedThreadsUnreadCount ?? 0;
   }
 
   reset() {
     this._unreadCount = 0;
     this._mentionCount = 0;
+    this._watchedThreadsUnreadCount = 0;
   }
 
   get unreadCount() {
@@ -42,4 +45,16 @@ export default class ChatTrackingState {
       this.chatTrackingStateManager.triggerNotificationsChanged();
     }
   }
+
+  get watchedThreadsUnreadCount() {
+    return this._watchedThreadsUnreadCount;
+  }
+
+  set watchedThreadsUnreadCount(value) {
+    const valueChanged = this._watchedThreadsUnreadCount !== value;
+    if (valueChanged) {
+      this._watchedThreadsUnreadCount = value;
+      this.chatTrackingStateManager.triggerNotificationsChanged();
+    }
+  }
 }
diff --git a/plugins/chat/assets/javascripts/discourse/services/chat-subscriptions-manager.js b/plugins/chat/assets/javascripts/discourse/services/chat-subscriptions-manager.js
index bb6f009ade1..1277fef0c1f 100644
--- a/plugins/chat/assets/javascripts/discourse/services/chat-subscriptions-manager.js
+++ b/plugins/chat/assets/javascripts/discourse/services/chat-subscriptions-manager.js
@@ -1,4 +1,5 @@
 import Service, { service } from "@ember/service";
+import { NotificationLevels } from "discourse/lib/notification-levels";
 import { bind } from "discourse-common/utils/decorators";
 import I18n from "discourse-i18n";
 import { CHANNEL_STATUSES } from "discourse/plugins/chat/discourse/models/chat-channel";
@@ -267,7 +268,17 @@ export default class ChatSubscriptionsManager extends Service {
                   busData.thread_id,
                   busData.message.created_at
                 );
-                thread.tracking.unreadCount++;
+
+                if (
+                  thread.currentUserMembership.notificationLevel ===
+                  NotificationLevels.WATCHING
+                ) {
+                  thread.tracking.watchedThreadsUnreadCount++;
+                  channel.tracking.watchedThreadsUnreadCount++;
+                } else {
+                  thread.tracking.unreadCount++;
+                }
+
                 this._updateActiveLastViewedAt(channel);
               }
             }
@@ -339,6 +350,8 @@ export default class ChatSubscriptionsManager extends Service {
 
       channel.tracking.unreadCount = busData.unread_count;
       channel.tracking.mentionCount = busData.mention_count;
+      channel.tracking.watchedThreadsUnreadCount =
+        busData.watched_threads_unread_count;
 
       if (
         busData.hasOwnProperty("unread_thread_overview") &&
@@ -366,6 +379,8 @@ export default class ChatSubscriptionsManager extends Service {
                 busData.thread_tracking.unread_count;
               thread.tracking.mentionCount =
                 busData.thread_tracking.mention_count;
+              thread.tracking.watchedThreadsUnreadCount =
+                busData.thread_tracking.watched_threads_unread_count;
             }
           });
       }
diff --git a/plugins/chat/assets/javascripts/discourse/services/chat-tracking-state-manager.js b/plugins/chat/assets/javascripts/discourse/services/chat-tracking-state-manager.js
index 619f749ab01..f5943e9114e 100644
--- a/plugins/chat/assets/javascripts/discourse/services/chat-tracking-state-manager.js
+++ b/plugins/chat/assets/javascripts/discourse/services/chat-tracking-state-manager.js
@@ -70,7 +70,11 @@ export default class ChatTrackingStateManager extends Service {
   }
 
   get allChannelUrgentCount() {
-    return this.publicChannelMentionCount + this.directMessageUnreadCount;
+    return (
+      this.publicChannelMentionCount +
+      this.directMessageUnreadCount +
+      this.watchedThreadsUnreadCount
+    );
   }
 
   get hasUnreadThreads() {
@@ -79,6 +83,12 @@ export default class ChatTrackingStateManager extends Service {
     );
   }
 
+  get watchedThreadsUnreadCount() {
+    return this.#publicChannels.reduce((unreadCount, channel) => {
+      return unreadCount + channel.tracking.watchedThreadsUnreadCount;
+    }, 0);
+  }
+
   willDestroy() {
     super.willDestroy(...arguments);
     cancel(this._onTriggerNotificationDebounceHandler);
@@ -108,6 +118,8 @@ export default class ChatTrackingStateManager extends Service {
     }
     model.tracking.unreadCount = state.unread_count;
     model.tracking.mentionCount = state.mention_count;
+    model.tracking.watchedThreadsUnreadCount =
+      state.watched_threads_unread_count;
   }
 
   get #publicChannels() {
diff --git a/plugins/chat/assets/javascripts/discourse/services/chat.js b/plugins/chat/assets/javascripts/discourse/services/chat.js
index d3e8237c0b3..10a4b4839d0 100644
--- a/plugins/chat/assets/javascripts/discourse/services/chat.js
+++ b/plugins/chat/assets/javascripts/discourse/services/chat.js
@@ -144,6 +144,8 @@ export default class Chat extends Service {
               const state = channelsView.tracking.channel_tracking[channel.id];
               channel.tracking.unreadCount = state.unread_count;
               channel.tracking.mentionCount = state.mention_count;
+              channel.tracking.watchedThreadsUnreadCount =
+                state.watched_threads_unread_count;
 
               channel.currentUserMembership =
                 channelObject.current_user_membership;
diff --git a/plugins/chat/config/locales/client.en.yml b/plugins/chat/config/locales/client.en.yml
index 7c52d0b952c..3961922fb99 100644
--- a/plugins/chat/config/locales/client.en.yml
+++ b/plugins/chat/config/locales/client.en.yml
@@ -132,7 +132,7 @@ en:
       header_indicator_preference:
         title: "Show activity indicator in header"
         all_new: "All New Messages"
-        dm_and_mentions: "Direct Messages and Mentions"
+        dm_and_mentions: "Direct Messages, Mentions and Watched Threads"
         only_mentions: "Only Mentions"
         never: "Never"
       separate_sidebar_mode:
@@ -634,10 +634,13 @@ en:
         notifications:
           regular:
             title: "Normal"
-            description: "You will be notified if someone mentions your @name in this thread."
+            description: "Get notified when someone mentions you in this thread."
           tracking:
             title: "Tracking"
-            description: "A count of new replies for this thread will be shown in the thread list and the channel. You will be notified if someone mentions your @name in this thread."
+            description: "Get notified when someone mentions you in this thread and see a count of new replies in the thread list."
+          watching:
+            title: "Watching"
+            description: "Get notified about all replies in this thread and see a count of new replies in the thread list."
         participants_other_count:
           one: "+%{count}"
           other: "+%{count}"
@@ -664,6 +667,9 @@ en:
       chat_invitation: "invited you to join a chat channel"
       chat_invitation_html: "<span>%{username}</span> <span>invited you to join a chat channel</span>"
       chat_quoted: "<span>%{username}</span> %{description}"
+      chat_watched_thread_label:
+        one: "%{username} and %{username2}"
+        other: "%{username} and %{count} others"
 
       popup:
         chat_mention:
@@ -685,6 +691,7 @@ en:
         chat_mention: "Chat mention"
         chat_invitation: "Chat invitation"
         chat_quoted: "Chat quoted"
+        chat_watched_thread: "Chat watched thread"
     action_codes:
       chat:
         enabled: '%{who} enabled <button class="btn-link open-chat">chat</button> %{when}'
diff --git a/plugins/chat/lib/chat/notification_consolidation_extension.rb b/plugins/chat/lib/chat/notification_consolidation_extension.rb
new file mode 100644
index 00000000000..04ff54e5434
--- /dev/null
+++ b/plugins/chat/lib/chat/notification_consolidation_extension.rb
@@ -0,0 +1,63 @@
+# frozen_string_literal: true
+
+module Chat
+  module NotificationConsolidationExtension
+    CONSOLIDATION_THRESHOLD = 1
+
+    def self.watched_thread_message_plan
+      Notifications::ConsolidateNotifications.new(
+        from: Notification.types[:chat_watched_thread],
+        to: Notification.types[:chat_watched_thread],
+        threshold: CONSOLIDATION_THRESHOLD,
+        unconsolidated_query_blk:
+          Proc.new do |notifications, data|
+            notifications.where("data::json ->> 'consolidated' IS NULL").where(
+              "data::json ->> 'chat_thread_id' = ?",
+              data[:chat_thread_id].to_s,
+            )
+          end,
+        consolidated_query_blk:
+          Proc.new do |notifications, data|
+            notifications.where("(data::json ->> 'consolidated')::bool").where(
+              "data::json ->> 'chat_thread_id' = ?",
+              data[:chat_thread_id].to_s,
+            )
+          end,
+      ).set_mutations(
+        set_data_blk:
+          lambda do |notification|
+            data = notification.data_hash
+
+            last_watched_thread_notification =
+              Notification
+                .where(user_id: notification.user_id)
+                .order("notifications.id DESC")
+                .where("data::json ->> 'chat_thread_id' = ?", data[:chat_thread_id].to_s)
+                .where(notification_type: Notification.types[:chat_watched_thread])
+                .first
+
+            return data if !last_watched_thread_notification
+
+            consolidated_data = last_watched_thread_notification.data_hash
+
+            if data[:last_read_message_id].to_i <= consolidated_data[:chat_message_id].to_i
+              data[:chat_message_id] = consolidated_data[:chat_message_id]
+            end
+
+            if !consolidated_data[:username2] && data[:username] != consolidated_data[:username]
+              data.merge(
+                username2: consolidated_data[:username],
+                user_ids: consolidated_data[:user_ids].concat(data[:user_ids]),
+              )
+            else
+              data.merge(
+                username: consolidated_data[:username],
+                username2: consolidated_data[:username2],
+                user_ids: (consolidated_data[:user_ids].concat(data[:user_ids])).uniq,
+              )
+            end
+          end,
+      )
+    end
+  end
+end
diff --git a/plugins/chat/plugin.rb b/plugins/chat/plugin.rb
index 1adfb0376d3..c3e5ae096a9 100644
--- a/plugins/chat/plugin.rb
+++ b/plugins/chat/plugin.rb
@@ -68,6 +68,7 @@ after_initialize do
 
     Guardian.prepend Chat::GuardianExtensions
     UserNotifications.prepend Chat::UserNotificationsExtension
+    Notifications::ConsolidationPlan.prepend Chat::NotificationConsolidationExtension
     UserOption.prepend Chat::UserOptionExtension
     Category.prepend Chat::CategoryExtension
     Reviewable.prepend Chat::ReviewableExtension
@@ -533,6 +534,10 @@ after_initialize do
     Proc.new { |user| Jobs.enqueue(Jobs::Chat::DeleteUserMessages, user_id: user.id) },
   )
 
+  register_notification_consolidation_plan(
+    Chat::NotificationConsolidationExtension.watched_thread_message_plan,
+  )
+
   register_bookmarkable(Chat::MessageBookmarkable)
 end
 
diff --git a/plugins/chat/spec/jobs/regular/chat/notify_watching_spec.rb b/plugins/chat/spec/jobs/regular/chat/notify_watching_spec.rb
index a37b47f6f45..4296714fe06 100644
--- a/plugins/chat/spec/jobs/regular/chat/notify_watching_spec.rb
+++ b/plugins/chat/spec/jobs/regular/chat/notify_watching_spec.rb
@@ -12,16 +12,21 @@ RSpec.describe Jobs::Chat::NotifyWatching do
     SiteSetting.chat_allowed_groups = Group::AUTO_GROUPS[:everyone]
   end
 
-  def run_job
+  def run_job(message)
     described_class.new.execute(chat_message_id: message.id, except_user_ids: except_user_ids)
   end
 
-  def notification_messages_for(user)
+  def notification_messages_for(user, chat_message: message)
     MessageBus
-      .track_publish { run_job }
+      .track_publish { run_job(chat_message) }
       .filter { |m| m.channel == "/chat/notification-alert/#{user.id}" }
   end
 
+  def track_core_notification(user:, message:, type: ::Notification.types[:chat_watched_thread])
+    described_class.new.execute(chat_message_id: message.id)
+    Notification.where(user: user, notification_type: type).last
+  end
+
   context "for a category channel" do
     fab!(:channel) { Fabricate(:category_channel) }
     fab!(:membership1) do
@@ -62,6 +67,77 @@ RSpec.describe Jobs::Chat::NotifyWatching do
       )
     end
 
+    context "with watched threads" do
+      fab!(:chat_message) { Fabricate(:chat_message, chat_channel: channel, user: user1) }
+      fab!(:thread) { Fabricate(:chat_thread, channel: channel, original_message: chat_message) }
+      fab!(:thread_message) do
+        Fabricate(:chat_message, chat_channel: channel, thread: thread, user: user2)
+      end
+
+      before { channel.update!(threading_enabled: true) }
+
+      context "with channel notification_level is always" do
+        before do
+          always = Chat::UserChatChannelMembership::NOTIFICATION_LEVELS[:always]
+          membership1.update!(desktop_notification_level: always, mobile_notification_level: always)
+        end
+
+        it "creates a core notification when watching the thread" do
+          thread.membership_for(user1).update!(
+            notification_level: Chat::NotificationLevels.all[:watching],
+          )
+
+          notification = track_core_notification(user: user1, message: thread_message)
+
+          expect(notification).to be_present
+          expect(notification.notification_type).to eq(Notification.types[:chat_watched_thread])
+        end
+
+        it "does not create a core notification when not watching the thread" do
+          notification = track_core_notification(user: user1, message: thread_message)
+
+          expect(notification).to be_nil
+        end
+
+        it "does not create a core notification when the channel is muted" do
+          thread.membership_for(user1).update!(
+            notification_level: Chat::NotificationLevels.all[:watching],
+          )
+          membership1.update!(muted: true)
+          notification = track_core_notification(user: user1, message: thread_message)
+
+          expect(notification).to be_nil
+        end
+      end
+
+      context "without channel notifications" do
+        before do
+          thread.membership_for(user1).update!(
+            notification_level: Chat::NotificationLevels.all[:watching],
+          )
+        end
+
+        it "creates a core notification for watched threads" do
+          expect { run_job(thread_message) }.to change { Notification.count }
+        end
+
+        it "does not create a core notification if channel is muted" do
+          membership1.update!(muted: true)
+          expect { run_job(thread_message) }.not_to change { Notification.count }
+        end
+
+        it "does not create a desktop notification" do
+          messages = notification_messages_for(user1)
+          expect(messages).to be_empty
+        end
+
+        it "does not create a mobile notification" do
+          PostAlerter.expects(:push_notification).never
+          run_job(thread_message)
+        end
+      end
+    end
+
     context "with chat_notification_translation_args plugin_modifier" do
       let(:modifier_block) do
         Proc.new do |args|
diff --git a/plugins/chat/spec/queries/chat/channel_unreads_query_spec.rb b/plugins/chat/spec/queries/chat/channel_unreads_query_spec.rb
index fbb0089ce5c..c88c86b682b 100644
--- a/plugins/chat/spec/queries/chat/channel_unreads_query_spec.rb
+++ b/plugins/chat/spec/queries/chat/channel_unreads_query_spec.rb
@@ -26,7 +26,14 @@ describe Chat::ChannelUnreadsQuery do
     before { Fabricate(:chat_message, chat_channel: channel_1) }
 
     it "returns a correct unread count" do
-      expect(query.first).to eq({ mention_count: 0, unread_count: 1, channel_id: channel_1.id })
+      expect(query.first).to eq(
+        {
+          mention_count: 0,
+          unread_count: 1,
+          channel_id: channel_1.id,
+          watched_threads_unread_count: 0,
+        },
+      )
     end
 
     context "when the membership has been muted" do
@@ -38,7 +45,14 @@ describe Chat::ChannelUnreadsQuery do
       end
 
       it "returns a zeroed unread count" do
-        expect(query.first).to eq({ mention_count: 0, unread_count: 0, channel_id: channel_1.id })
+        expect(query.first).to eq(
+          {
+            mention_count: 0,
+            unread_count: 0,
+            channel_id: channel_1.id,
+            watched_threads_unread_count: 0,
+          },
+        )
       end
     end
 
@@ -47,13 +61,27 @@ describe Chat::ChannelUnreadsQuery do
       fab!(:thread) { Fabricate(:chat_thread, channel: channel_1, original_message: thread_om) }
 
       it "does include the original message in the unread count" do
-        expect(query.first).to eq({ mention_count: 0, unread_count: 2, channel_id: channel_1.id })
+        expect(query.first).to eq(
+          {
+            mention_count: 0,
+            unread_count: 2,
+            watched_threads_unread_count: 0,
+            channel_id: channel_1.id,
+          },
+        )
       end
 
       it "does not include other thread messages in the unread count" do
         Fabricate(:chat_message, chat_channel: channel_1, thread: thread)
         Fabricate(:chat_message, chat_channel: channel_1, thread: thread)
-        expect(query.first).to eq({ mention_count: 0, unread_count: 2, channel_id: channel_1.id })
+        expect(query.first).to eq(
+          {
+            mention_count: 0,
+            unread_count: 2,
+            watched_threads_unread_count: 0,
+            channel_id: channel_1.id,
+          },
+        )
       end
     end
 
@@ -70,8 +98,18 @@ describe Chat::ChannelUnreadsQuery do
       it "returns accurate counts" do
         expect(query).to match_array(
           [
-            { mention_count: 0, unread_count: 1, channel_id: channel_1.id },
-            { mention_count: 0, unread_count: 2, channel_id: channel_2.id },
+            {
+              mention_count: 0,
+              unread_count: 1,
+              watched_threads_unread_count: 0,
+              channel_id: channel_1.id,
+            },
+            {
+              mention_count: 0,
+              unread_count: 2,
+              watched_threads_unread_count: 0,
+              channel_id: channel_2.id,
+            },
           ],
         )
       end
@@ -86,7 +124,14 @@ describe Chat::ChannelUnreadsQuery do
 
         it "does not return counts for the channels" do
           expect(query).to match_array(
-            [{ mention_count: 0, unread_count: 1, channel_id: channel_1.id }],
+            [
+              {
+                mention_count: 0,
+                unread_count: 1,
+                watched_threads_unread_count: 0,
+                channel_id: channel_1.id,
+              },
+            ],
           )
         end
 
@@ -96,8 +141,18 @@ describe Chat::ChannelUnreadsQuery do
           it "does return zeroed counts for the channels" do
             expect(query).to match_array(
               [
-                { mention_count: 0, unread_count: 1, channel_id: channel_1.id },
-                { mention_count: 0, unread_count: 0, channel_id: channel_2.id },
+                {
+                  mention_count: 0,
+                  unread_count: 1,
+                  watched_threads_unread_count: 0,
+                  channel_id: channel_1.id,
+                },
+                {
+                  mention_count: 0,
+                  unread_count: 0,
+                  watched_threads_unread_count: 0,
+                  channel_id: channel_2.id,
+                },
               ],
             )
           end
@@ -107,7 +162,14 @@ describe Chat::ChannelUnreadsQuery do
 
             it "does not return counts for the channels" do
               expect(query).to match_array(
-                [{ mention_count: 0, unread_count: 1, channel_id: channel_1.id }],
+                [
+                  {
+                    mention_count: 0,
+                    unread_count: 1,
+                    watched_threads_unread_count: 0,
+                    channel_id: channel_1.id,
+                  },
+                ],
               )
             end
           end
@@ -137,7 +199,14 @@ describe Chat::ChannelUnreadsQuery do
       message = Fabricate(:chat_message, chat_channel: channel_1)
       create_mention(message, channel_1)
 
-      expect(query.first).to eq({ mention_count: 1, unread_count: 1, channel_id: channel_1.id })
+      expect(query.first).to eq(
+        {
+          mention_count: 1,
+          unread_count: 1,
+          watched_threads_unread_count: 0,
+          channel_id: channel_1.id,
+        },
+      )
     end
 
     context "for unread mentions in a thread" do
@@ -146,7 +215,14 @@ describe Chat::ChannelUnreadsQuery do
 
       it "does include the original message in the mention count" do
         create_mention(thread_om, channel_1)
-        expect(query.first).to eq({ mention_count: 1, unread_count: 1, channel_id: channel_1.id })
+        expect(query.first).to eq(
+          {
+            mention_count: 1,
+            unread_count: 1,
+            watched_threads_unread_count: 0,
+            channel_id: channel_1.id,
+          },
+        )
       end
 
       it "does not include other thread messages in the mention count" do
@@ -154,7 +230,14 @@ describe Chat::ChannelUnreadsQuery do
         thread_message_2 = Fabricate(:chat_message, chat_channel: channel_1, thread: thread)
         create_mention(thread_message_1, channel_1)
         create_mention(thread_message_2, channel_1)
-        expect(query.first).to eq({ mention_count: 0, unread_count: 1, channel_id: channel_1.id })
+        expect(query.first).to eq(
+          {
+            mention_count: 0,
+            unread_count: 1,
+            watched_threads_unread_count: 0,
+            channel_id: channel_1.id,
+          },
+        )
       end
     end
 
@@ -173,8 +256,93 @@ describe Chat::ChannelUnreadsQuery do
 
         expect(query).to match_array(
           [
-            { mention_count: 1, unread_count: 1, channel_id: channel_1.id },
-            { mention_count: 1, unread_count: 2, channel_id: channel_2.id },
+            {
+              mention_count: 1,
+              unread_count: 1,
+              watched_threads_unread_count: 0,
+              channel_id: channel_1.id,
+            },
+            {
+              mention_count: 1,
+              unread_count: 2,
+              watched_threads_unread_count: 0,
+              channel_id: channel_2.id,
+            },
+          ],
+        )
+      end
+    end
+  end
+
+  context "with watched threads" do
+    fab!(:message) { Fabricate(:chat_message, chat_channel: channel_1, user: current_user) }
+    fab!(:thread) { Fabricate(:chat_thread, channel: channel_1, original_message: message) }
+    fab!(:thread_reply) { Fabricate(:chat_message, chat_channel: channel_1, thread: thread) }
+
+    before do
+      channel_1.update(threading_enabled: true)
+      channel_1.membership_for(current_user).mark_read!(message.id)
+      thread.membership_for(current_user).update!(
+        notification_level: ::Chat::NotificationLevels.all[:watching],
+      )
+    end
+
+    it "returns correct watched thread unread count" do
+      expect(query.first).to eq(
+        {
+          mention_count: 0,
+          unread_count: 0,
+          watched_threads_unread_count: 1,
+          channel_id: channel_1.id,
+        },
+      )
+    end
+
+    it "returns unread and watched thread unread counts" do
+      Fabricate(:chat_message, chat_channel: channel_1)
+      expect(query.first).to eq(
+        {
+          mention_count: 0,
+          unread_count: 1,
+          watched_threads_unread_count: 1,
+          channel_id: channel_1.id,
+        },
+      )
+    end
+
+    context "for multiple channels" do
+      fab!(:channel_2) { Fabricate(:category_channel) }
+      fab!(:message_2) { Fabricate(:chat_message, chat_channel: channel_2, user: current_user) }
+      fab!(:thread_2) { Fabricate(:chat_thread, channel: channel_2, original_message: message_2) }
+      let(:channel_ids) { [channel_1.id, channel_2.id] }
+
+      before do
+        channel_2.add(current_user)
+        channel_2.update(threading_enabled: true)
+        channel_2.membership_for(current_user).mark_read!(message_2.id)
+        thread_2.membership_for(current_user).update!(
+          notification_level: ::Chat::NotificationLevels.all[:watching],
+        )
+
+        Fabricate(:chat_message, chat_channel: channel_2, thread: thread_2)
+        Fabricate(:chat_message, chat_channel: channel_2, thread: thread_2)
+      end
+
+      it "returns accurate counts" do
+        expect(query).to match_array(
+          [
+            {
+              mention_count: 0,
+              unread_count: 0,
+              watched_threads_unread_count: 1,
+              channel_id: channel_1.id,
+            },
+            {
+              mention_count: 0,
+              unread_count: 0,
+              watched_threads_unread_count: 2,
+              channel_id: channel_2.id,
+            },
           ],
         )
       end
@@ -183,7 +351,14 @@ describe Chat::ChannelUnreadsQuery do
 
   context "with nothing unread" do
     it "returns a correct state" do
-      expect(query.first).to eq({ mention_count: 0, unread_count: 0, channel_id: channel_1.id })
+      expect(query.first).to eq(
+        {
+          mention_count: 0,
+          unread_count: 0,
+          watched_threads_unread_count: 0,
+          channel_id: channel_1.id,
+        },
+      )
     end
 
     context "when include_read is false" do
diff --git a/plugins/chat/spec/queries/chat/thread_unreads_query_spec.rb b/plugins/chat/spec/queries/chat/thread_unreads_query_spec.rb
index 0beb4e2a376..17160e89360 100644
--- a/plugins/chat/spec/queries/chat/thread_unreads_query_spec.rb
+++ b/plugins/chat/spec/queries/chat/thread_unreads_query_spec.rb
@@ -47,10 +47,34 @@ describe Chat::ThreadUnreadsQuery do
       it "gets a count of all the thread unreads across the channels" do
         expect(query.map(&:to_h)).to match_array(
           [
-            { channel_id: channel_1.id, mention_count: 0, thread_id: thread_1.id, unread_count: 1 },
-            { channel_id: channel_1.id, mention_count: 0, thread_id: thread_2.id, unread_count: 0 },
-            { channel_id: channel_2.id, mention_count: 0, thread_id: thread_3.id, unread_count: 1 },
-            { channel_id: channel_2.id, mention_count: 0, thread_id: thread_4.id, unread_count: 1 },
+            {
+              channel_id: channel_1.id,
+              mention_count: 0,
+              thread_id: thread_1.id,
+              unread_count: 1,
+              watched_threads_unread_count: 0,
+            },
+            {
+              channel_id: channel_1.id,
+              mention_count: 0,
+              thread_id: thread_2.id,
+              unread_count: 0,
+              watched_threads_unread_count: 0,
+            },
+            {
+              channel_id: channel_2.id,
+              mention_count: 0,
+              thread_id: thread_3.id,
+              unread_count: 1,
+              watched_threads_unread_count: 0,
+            },
+            {
+              channel_id: channel_2.id,
+              mention_count: 0,
+              thread_id: thread_4.id,
+              unread_count: 1,
+              watched_threads_unread_count: 0,
+            },
           ],
         )
       end
@@ -58,7 +82,13 @@ describe Chat::ThreadUnreadsQuery do
       it "does not count deleted messages" do
         message_1.trash!
         expect(query.map(&:to_h).find { |tracking| tracking[:thread_id] == thread_1.id }).to eq(
-          { channel_id: channel_1.id, mention_count: 0, thread_id: thread_1.id, unread_count: 0 },
+          {
+            channel_id: channel_1.id,
+            mention_count: 0,
+            thread_id: thread_1.id,
+            unread_count: 0,
+            watched_threads_unread_count: 0,
+          },
         )
       end
 
@@ -66,17 +96,35 @@ describe Chat::ThreadUnreadsQuery do
         channel_1.membership_for(current_user).update!(muted: true)
 
         expect(query.map(&:to_h).find { |tracking| tracking[:thread_id] == thread_1.id }).to eq(
-          { channel_id: channel_1.id, mention_count: 0, thread_id: thread_1.id, unread_count: 0 },
+          {
+            channel_id: channel_1.id,
+            mention_count: 0,
+            thread_id: thread_1.id,
+            unread_count: 0,
+            watched_threads_unread_count: 0,
+          },
         )
       end
 
       it "does not messages in threads where threading_enabled is false on the channel" do
         channel_1.update!(threading_enabled: false)
         expect(query.map(&:to_h).find { |tracking| tracking[:thread_id] == thread_1.id }).to eq(
-          { channel_id: channel_1.id, mention_count: 0, thread_id: thread_1.id, unread_count: 0 },
+          {
+            channel_id: channel_1.id,
+            mention_count: 0,
+            thread_id: thread_1.id,
+            unread_count: 0,
+            watched_threads_unread_count: 0,
+          },
         )
         expect(query.map(&:to_h).find { |tracking| tracking[:thread_id] == thread_2.id }).to eq(
-          { channel_id: channel_1.id, mention_count: 0, thread_id: thread_2.id, unread_count: 0 },
+          {
+            channel_id: channel_1.id,
+            mention_count: 0,
+            thread_id: thread_2.id,
+            unread_count: 0,
+            watched_threads_unread_count: 0,
+          },
         )
       end
 
@@ -86,7 +134,13 @@ describe Chat::ThreadUnreadsQuery do
           .find_by(user: current_user)
           .update!(last_read_message_id: message_1.id)
         expect(query.map(&:to_h).find { |tracking| tracking[:thread_id] == thread_1.id }).to eq(
-          { channel_id: channel_1.id, mention_count: 0, thread_id: thread_1.id, unread_count: 0 },
+          {
+            channel_id: channel_1.id,
+            mention_count: 0,
+            thread_id: thread_1.id,
+            unread_count: 0,
+            watched_threads_unread_count: 0,
+          },
         )
       end
 
@@ -94,14 +148,26 @@ describe Chat::ThreadUnreadsQuery do
         thread_1.original_message.destroy
         thread_1.update!(original_message: message_1)
         expect(query.map(&:to_h).find { |tracking| tracking[:thread_id] == thread_1.id }).to eq(
-          { channel_id: channel_1.id, mention_count: 0, thread_id: thread_1.id, unread_count: 0 },
+          {
+            channel_id: channel_1.id,
+            mention_count: 0,
+            thread_id: thread_1.id,
+            unread_count: 0,
+            watched_threads_unread_count: 0,
+          },
         )
       end
 
       it "does not count the thread as unread if the original message is deleted" do
         thread_1.original_message.destroy
         expect(query.map(&:to_h).find { |tracking| tracking[:thread_id] == thread_1.id }).to eq(
-          { channel_id: channel_1.id, mention_count: 0, thread_id: thread_1.id, unread_count: 0 },
+          {
+            channel_id: channel_1.id,
+            mention_count: 0,
+            thread_id: thread_1.id,
+            unread_count: 0,
+            watched_threads_unread_count: 0,
+          },
         )
       end
 
@@ -116,6 +182,7 @@ describe Chat::ThreadUnreadsQuery do
                 mention_count: 0,
                 thread_id: thread_2.id,
                 unread_count: 0,
+                watched_threads_unread_count: 0,
               },
             ],
           )
@@ -129,8 +196,20 @@ describe Chat::ThreadUnreadsQuery do
       it "gets a count of all the thread unreads for the specified threads" do
         expect(query.map(&:to_h)).to match_array(
           [
-            { channel_id: channel_1.id, mention_count: 0, thread_id: thread_1.id, unread_count: 1 },
-            { channel_id: channel_2.id, mention_count: 0, thread_id: thread_3.id, unread_count: 1 },
+            {
+              channel_id: channel_1.id,
+              mention_count: 0,
+              thread_id: thread_1.id,
+              unread_count: 1,
+              watched_threads_unread_count: 0,
+            },
+            {
+              channel_id: channel_2.id,
+              mention_count: 0,
+              thread_id: thread_3.id,
+              unread_count: 1,
+              watched_threads_unread_count: 0,
+            },
           ],
         )
       end
@@ -145,7 +224,13 @@ describe Chat::ThreadUnreadsQuery do
 
         it "gets a zeroed out count for the thread" do
           expect(query.map(&:to_h)).to include(
-            { channel_id: channel_1.id, mention_count: 0, thread_id: thread_1.id, unread_count: 0 },
+            {
+              channel_id: channel_1.id,
+              mention_count: 0,
+              thread_id: thread_1.id,
+              unread_count: 0,
+              watched_threads_unread_count: 0,
+            },
           )
         end
       end
@@ -160,7 +245,13 @@ describe Chat::ThreadUnreadsQuery do
 
         it "gets a zeroed out count for the thread" do
           expect(query.map(&:to_h)).to include(
-            { channel_id: channel_1.id, mention_count: 0, thread_id: thread_1.id, unread_count: 0 },
+            {
+              channel_id: channel_1.id,
+              mention_count: 0,
+              thread_id: thread_1.id,
+              unread_count: 0,
+              watched_threads_unread_count: 0,
+            },
           )
         end
       end
@@ -176,6 +267,7 @@ describe Chat::ThreadUnreadsQuery do
                 mention_count: 0,
                 thread_id: thread_3.id,
                 unread_count: 1,
+                watched_threads_unread_count: 0,
               },
             ],
           )
@@ -192,12 +284,14 @@ describe Chat::ThreadUnreadsQuery do
                   mention_count: 0,
                   thread_id: thread_1.id,
                   unread_count: 0,
+                  watched_threads_unread_count: 0,
                 },
                 {
                   channel_id: channel_2.id,
                   mention_count: 0,
                   thread_id: thread_3.id,
                   unread_count: 1,
+                  watched_threads_unread_count: 0,
                 },
               ],
             )
@@ -214,6 +308,7 @@ describe Chat::ThreadUnreadsQuery do
                     mention_count: 0,
                     thread_id: thread_3.id,
                     unread_count: 1,
+                    watched_threads_unread_count: 0,
                   },
                 ],
               )
@@ -230,11 +325,113 @@ describe Chat::ThreadUnreadsQuery do
       it "gets a count of all the thread unreads across the channels filtered by thread id" do
         expect(query.map(&:to_h)).to match_array(
           [
-            { channel_id: channel_1.id, mention_count: 0, thread_id: thread_1.id, unread_count: 1 },
-            { channel_id: channel_2.id, mention_count: 0, thread_id: thread_3.id, unread_count: 1 },
+            {
+              channel_id: channel_1.id,
+              mention_count: 0,
+              thread_id: thread_1.id,
+              unread_count: 1,
+              watched_threads_unread_count: 0,
+            },
+            {
+              channel_id: channel_2.id,
+              mention_count: 0,
+              thread_id: thread_3.id,
+              unread_count: 1,
+              watched_threads_unread_count: 0,
+            },
           ],
         )
       end
     end
   end
+
+  context "with watched threads" do
+    let(:channel_ids) { [channel_1.id] }
+
+    before do
+      [thread_1, thread_3].each do |thread|
+        thread.membership_for(current_user).update!(
+          notification_level: Chat::NotificationLevels.all[:watching],
+        )
+      end
+
+      3.times { Fabricate(:chat_message, chat_channel: channel_1, thread: thread_1) }
+      2.times { Fabricate(:chat_message, chat_channel: channel_1, thread: thread_2) }
+    end
+
+    it "returns correct count for channel" do
+      expect(query.map(&:to_h)).to match_array(
+        [
+          {
+            channel_id: channel_1.id,
+            thread_id: thread_1.id,
+            mention_count: 0,
+            unread_count: 0,
+            watched_threads_unread_count: 3,
+          },
+          {
+            channel_id: channel_1.id,
+            thread_id: thread_2.id,
+            mention_count: 0,
+            unread_count: 2,
+            watched_threads_unread_count: 0,
+          },
+        ],
+      )
+    end
+
+    it "returns correct count across multiple channels" do
+      channel_ids.push(channel_2.id)
+      Fabricate(:chat_message, chat_channel: channel_2, thread: thread_3)
+
+      expect(query.map(&:to_h)).to match_array(
+        [
+          {
+            channel_id: channel_1.id,
+            thread_id: thread_1.id,
+            mention_count: 0,
+            unread_count: 0,
+            watched_threads_unread_count: 3,
+          },
+          {
+            channel_id: channel_1.id,
+            thread_id: thread_2.id,
+            mention_count: 0,
+            unread_count: 2,
+            watched_threads_unread_count: 0,
+          },
+          {
+            channel_id: channel_2.id,
+            thread_id: thread_3.id,
+            mention_count: 0,
+            unread_count: 0,
+            watched_threads_unread_count: 1,
+          },
+          {
+            channel_id: channel_2.id,
+            thread_id: thread_4.id,
+            mention_count: 0,
+            unread_count: 0,
+            watched_threads_unread_count: 0,
+          },
+        ],
+      )
+    end
+
+    context "when include_read is false" do
+      let(:include_read) { false }
+
+      it "does not get threads with no unread messages" do
+        expect(query.map(&:to_h)).to include(
+          {
+            channel_id: channel_1.id,
+            thread_id: thread_1.id,
+            mention_count: 0,
+            unread_count: 0,
+            watched_threads_unread_count: 3,
+          },
+        )
+      end
+    end
+  end
 end
diff --git a/plugins/chat/spec/queries/chat/tracking_state_report_query_spec.rb b/plugins/chat/spec/queries/chat/tracking_state_report_query_spec.rb
index 3a7ae6e0e73..31fb7d2d2c4 100644
--- a/plugins/chat/spec/queries/chat/tracking_state_report_query_spec.rb
+++ b/plugins/chat/spec/queries/chat/tracking_state_report_query_spec.rb
@@ -62,10 +62,12 @@ RSpec.describe Chat::TrackingStateReportQuery do
           channel_1.id => {
             unread_count: 1,
             mention_count: 0,
+            watched_threads_unread_count: 0,
           },
           channel_2.id => {
             unread_count: 1,
             mention_count: 0,
+            watched_threads_unread_count: 0,
           },
         },
       )
@@ -113,10 +115,12 @@ RSpec.describe Chat::TrackingStateReportQuery do
             channel_1.id => {
               unread_count: 1,
               mention_count: 0,
+              watched_threads_unread_count: 0,
             },
             channel_2.id => {
               unread_count: 1,
               mention_count: 0,
+              watched_threads_unread_count: 0,
             },
           },
         )
@@ -125,11 +129,13 @@ RSpec.describe Chat::TrackingStateReportQuery do
             thread_1.id => {
               unread_count: 1,
               mention_count: 0,
+              watched_threads_unread_count: 0,
               channel_id: channel_1.id,
             },
             thread_2.id => {
               unread_count: 1,
               mention_count: 0,
+              watched_threads_unread_count: 0,
               channel_id: channel_2.id,
             },
           },
@@ -152,12 +158,14 @@ RSpec.describe Chat::TrackingStateReportQuery do
               thread_1.id => {
                 unread_count: 1,
                 mention_count: 0,
+                watched_threads_unread_count: 0,
                 channel_id: channel_1.id,
                 last_reply_created_at: thread_1.reload.last_message.created_at,
               },
               thread_2.id => {
                 unread_count: 1,
                 mention_count: 0,
+                watched_threads_unread_count: 0,
                 channel_id: channel_2.id,
                 last_reply_created_at: thread_2.reload.last_message.created_at,
               },
@@ -172,12 +180,14 @@ RSpec.describe Chat::TrackingStateReportQuery do
               thread_1.id => {
                 unread_count: 0,
                 mention_count: 0,
+                watched_threads_unread_count: 0,
                 channel_id: channel_1.id,
                 last_reply_created_at: nil,
               },
               thread_2.id => {
                 unread_count: 1,
                 mention_count: 0,
+                watched_threads_unread_count: 0,
                 channel_id: channel_2.id,
                 last_reply_created_at: thread_2.reload.last_message.created_at,
               },
diff --git a/plugins/chat/spec/services/chat/list_channel_messages_spec.rb b/plugins/chat/spec/services/chat/list_channel_messages_spec.rb
index ffdad6ec100..a10c9d23ac2 100644
--- a/plugins/chat/spec/services/chat/list_channel_messages_spec.rb
+++ b/plugins/chat/spec/services/chat/list_channel_messages_spec.rb
@@ -180,7 +180,14 @@ RSpec.describe Chat::ListChannelMessages do
         Fabricate(:chat_message, chat_channel: channel, thread: thread_1)
 
         expect(result.tracking.thread_tracking).to eq(
-          { thread_1.id => { channel_id: channel.id, mention_count: 0, unread_count: 0 } },
+          {
+            thread_1.id => {
+              channel_id: channel.id,
+              mention_count: 0,
+              unread_count: 0,
+              watched_threads_unread_count: 0,
+            },
+          },
         )
       end
 
@@ -193,7 +200,14 @@ RSpec.describe Chat::ListChannelMessages do
           Fabricate(:chat_message, chat_channel: channel, thread: thread_1)
 
           expect(result.tracking.thread_tracking).to eq(
-            { thread_1.id => { channel_id: channel.id, mention_count: 0, unread_count: 1 } },
+            {
+              thread_1.id => {
+                channel_id: channel.id,
+                mention_count: 0,
+                unread_count: 1,
+                watched_threads_unread_count: 0,
+              },
+            },
           )
         end
       end
@@ -214,7 +228,14 @@ RSpec.describe Chat::ListChannelMessages do
 
         expect(result.tracking.channel_tracking).to eq({})
         expect(result.tracking.thread_tracking).to eq(
-          { thread_1.id => { channel_id: channel.id, mention_count: 0, unread_count: 1 } },
+          {
+            thread_1.id => {
+              channel_id: channel.id,
+              mention_count: 0,
+              unread_count: 1,
+              watched_threads_unread_count: 0,
+            },
+          },
         )
       end
     end
diff --git a/plugins/chat/spec/services/chat/list_user_channels_spec.rb b/plugins/chat/spec/services/chat/list_user_channels_spec.rb
index 8af4914a1e6..6dc66947f63 100644
--- a/plugins/chat/spec/services/chat/list_user_channels_spec.rb
+++ b/plugins/chat/spec/services/chat/list_user_channels_spec.rb
@@ -20,7 +20,7 @@ RSpec.describe Chat::ListUserChannels do
     expect(result.structured[:public_channels]).to eq([channel_1])
     expect(result.structured[:direct_message_channels]).to eq([])
     expect(result.structured[:tracking].channel_tracking[channel_1.id]).to eq(
-      { mention_count: 0, unread_count: 0 },
+      { mention_count: 0, unread_count: 0, watched_threads_unread_count: 0 },
     )
   end
 
diff --git a/plugins/chat/spec/services/chat/mark_all_user_channels_read_spec.rb b/plugins/chat/spec/services/chat/mark_all_user_channels_read_spec.rb
index f7b1643618d..a54a142f3b6 100644
--- a/plugins/chat/spec/services/chat/mark_all_user_channels_read_spec.rb
+++ b/plugins/chat/spec/services/chat/mark_all_user_channels_read_spec.rb
@@ -143,6 +143,7 @@ RSpec.describe Chat::MarkAllUserChannelsRead do
             "membership_id" => membership_1.id,
             "mention_count" => 0,
             "unread_count" => 0,
+            "watched_threads_unread_count" => 0,
           },
           channel_2.id.to_s => {
             "last_read_message_id" => message_4.id,
@@ -150,6 +151,7 @@ RSpec.describe Chat::MarkAllUserChannelsRead do
             "membership_id" => membership_2.id,
             "mention_count" => 0,
             "unread_count" => 0,
+            "watched_threads_unread_count" => 0,
           },
           channel_3.id.to_s => {
             "last_read_message_id" => message_6.id,
@@ -157,6 +159,7 @@ RSpec.describe Chat::MarkAllUserChannelsRead do
             "membership_id" => membership_3.id,
             "mention_count" => 0,
             "unread_count" => 0,
+            "watched_threads_unread_count" => 0,
           },
         )
       end
diff --git a/plugins/chat/spec/services/chat/publisher_spec.rb b/plugins/chat/spec/services/chat/publisher_spec.rb
index d8ce068c692..08d1147c0ac 100644
--- a/plugins/chat/spec/services/chat/publisher_spec.rb
+++ b/plugins/chat/spec/services/chat/publisher_spec.rb
@@ -109,7 +109,12 @@ describe Chat::Publisher do
             { thread.id.to_s => thread.reload.last_message.created_at.iso8601(3) },
           )
           expect(data["thread_tracking"]).to eq(
-            { "unread_count" => 1, "mention_count" => 0, "last_reply_created_at" => nil },
+            {
+              "unread_count" => 1,
+              "mention_count" => 0,
+              "watched_threads_unread_count" => 0,
+              "last_reply_created_at" => nil,
+            },
           )
         end
       end
@@ -119,7 +124,12 @@ describe Chat::Publisher do
           expect(data["thread_id"]).to eq(thread.id)
           expect(data["unread_thread_overview"]).to eq({})
           expect(data["thread_tracking"]).to eq(
-            { "unread_count" => 0, "mention_count" => 0, "last_reply_created_at" => nil },
+            {
+              "unread_count" => 0,
+              "mention_count" => 0,
+              "watched_threads_unread_count" => 0,
+              "last_reply_created_at" => nil,
+            },
           )
         end
       end
diff --git a/plugins/chat/spec/services/chat/tracking_state_spec.rb b/plugins/chat/spec/services/chat/tracking_state_spec.rb
index f68a3f288cb..f51e979da99 100644
--- a/plugins/chat/spec/services/chat/tracking_state_spec.rb
+++ b/plugins/chat/spec/services/chat/tracking_state_spec.rb
@@ -44,6 +44,7 @@ RSpec.describe ::Chat::TrackingState do
             channel_1.id => {
               unread_count: 4, # 2 messages + 2 thread original messages
               mention_count: 0,
+              watched_threads_unread_count: 0,
             },
           )
         end
@@ -55,11 +56,13 @@ RSpec.describe ::Chat::TrackingState do
               channel_id: channel_1.id,
               unread_count: 1,
               mention_count: 0,
+              watched_threads_unread_count: 0,
             },
             thread_2.id => {
               channel_id: channel_1.id,
               unread_count: 2,
               mention_count: 0,
+              watched_threads_unread_count: 0,
             },
           )
         end
@@ -74,6 +77,7 @@ RSpec.describe ::Chat::TrackingState do
               channel_1.id => {
                 unread_count: 4, # 2 messages + 2 thread original messages
                 mention_count: 0,
+                watched_threads_unread_count: 0,
               },
             )
           end
@@ -89,6 +93,7 @@ RSpec.describe ::Chat::TrackingState do
             channel_1.id => {
               unread_count: 4, # 2 messages + 2 thread original messages
               mention_count: 0,
+              watched_threads_unread_count: 0,
             },
           )
         end
@@ -100,6 +105,7 @@ RSpec.describe ::Chat::TrackingState do
               channel_id: channel_1.id,
               unread_count: 2,
               mention_count: 0,
+              watched_threads_unread_count: 0,
             },
           )
         end
@@ -117,10 +123,12 @@ RSpec.describe ::Chat::TrackingState do
           channel_1.id => {
             unread_count: 4, # 2 messages + 2 thread original messages
             mention_count: 0,
+            watched_threads_unread_count: 0,
           },
           channel_2.id => {
             unread_count: 0,
             mention_count: 0,
+            watched_threads_unread_count: 0,
           },
         )
       end
@@ -132,21 +140,25 @@ RSpec.describe ::Chat::TrackingState do
             channel_id: channel_1.id,
             unread_count: 1,
             mention_count: 0,
+            watched_threads_unread_count: 0,
           },
           thread_2.id => {
             channel_id: channel_1.id,
             unread_count: 2,
             mention_count: 0,
+            watched_threads_unread_count: 0,
           },
           thread_3.id => {
             channel_id: channel_2.id,
             unread_count: 0,
             mention_count: 0,
+            watched_threads_unread_count: 0,
           },
           thread_4.id => {
             channel_id: channel_2.id,
             unread_count: 0,
             mention_count: 0,
+            watched_threads_unread_count: 0,
           },
         )
       end
diff --git a/plugins/chat/spec/system/chat_footer_spec.rb b/plugins/chat/spec/system/chat_footer_spec.rb
index a36f26aa6fa..d5d37c28344 100644
--- a/plugins/chat/spec/system/chat_footer_spec.rb
+++ b/plugins/chat/spec/system/chat_footer_spec.rb
@@ -153,6 +153,17 @@ RSpec.describe "Mobile Chat footer", type: :system, mobile: true do
 
         expect(page).to have_no_css("#c-footer-threads .c-unread-indicator")
       end
+
+      it "is urgent for watched thread messages" do
+        thread.membership_for(current_user).update!(
+          notification_level: ::Chat::NotificationLevels.all[:watching],
+        )
+
+        visit("/")
+        chat_page.open_from_header
+
+        expect(page).to have_css("#c-footer-threads .c-unread-indicator.-urgent")
+      end
     end
   end
 end
diff --git a/plugins/chat/spec/system/page_objects/chat/components/thread_list.rb b/plugins/chat/spec/system/page_objects/chat/components/thread_list.rb
index 21c22f833e5..f319386bb30 100644
--- a/plugins/chat/spec/system/page_objects/chat/components/thread_list.rb
+++ b/plugins/chat/spec/system/page_objects/chat/components/thread_list.rb
@@ -45,20 +45,23 @@ module PageObjects
           ".chat-thread-list-item__last-reply-timestamp .relative-date[data-time='#{(last_reply.created_at.iso8601.to_time.to_f * 1000).to_i}']"
         end
 
-        def has_unread_item?(id, count: nil)
+        def has_unread_item?(id, count: nil, urgent: false)
+          selector_class = urgent ? ".-is-urgent" : ".-is-unread"
+
           if count.nil?
-            component.has_css?(item_by_id_selector(id) + ".-is-unread")
+            component.has_css?(item_by_id_selector(id) + selector_class)
           else
             component.has_css?(
-              item_by_id_selector(id) +
-                ".-is-unread .chat-thread-list-item-unread-indicator__number",
+              item_by_id_selector(id) + selector_class +
+                " .chat-thread-list-item-unread-indicator__number",
               text: count.to_s,
             )
           end
         end
 
-        def has_no_unread_item?(id)
-          component.has_no_css?(item_by_id_selector(id) + ".-is-unread")
+        def has_no_unread_item?(id, urgent: false)
+          selector_class = urgent ? ".-is-urgent" : ".-is-unread"
+          component.has_no_css?(item_by_id_selector(id) + selector_class)
         end
 
         def item_by_id_selector(id)
diff --git a/plugins/chat/spec/system/thread_tracking/drawer_spec.rb b/plugins/chat/spec/system/thread_tracking/drawer_spec.rb
index d5f07c24f15..5aa8ee1471b 100644
--- a/plugins/chat/spec/system/thread_tracking/drawer_spec.rb
+++ b/plugins/chat/spec/system/thread_tracking/drawer_spec.rb
@@ -43,6 +43,19 @@ describe "Thread tracking state | drawer", type: :system do
       expect(thread_list_page).to have_unread_item(thread.id)
     end
 
+    it "shows an urgent indicator on the watched thread in the list" do
+      thread.membership_for(current_user).update!(
+        notification_level: ::Chat::NotificationLevels.all[:watching],
+      )
+
+      visit("/")
+      chat_page.open_from_header
+      drawer_page.open_channel(channel)
+      drawer_page.open_thread_list
+      expect(drawer_page).to have_open_thread_list
+      expect(thread_list_page).to have_unread_item(thread.id, urgent: true)
+    end
+
     it "marks the thread as read and removes both indicators when the user opens it" do
       skip("Flaky on CI") if ENV["CI"]
 
diff --git a/plugins/chat/spec/system/thread_tracking/full_page_spec.rb b/plugins/chat/spec/system/thread_tracking/full_page_spec.rb
index 84c3ecb5c9b..65b90c91266 100644
--- a/plugins/chat/spec/system/thread_tracking/full_page_spec.rb
+++ b/plugins/chat/spec/system/thread_tracking/full_page_spec.rb
@@ -74,6 +74,18 @@ describe "Thread tracking state | full page", type: :system do
       expect(thread_list_page).to have_no_unread_item(thread.id)
     end
 
+    it "shows and urgent for the header of the list when a new watched unread arrives" do
+      thread.membership_for(current_user).update!(last_read_message_id: message_2.id)
+      thread.membership_for(current_user).update!(notification_level: :watching)
+
+      chat_page.visit_channel(channel)
+      channel_page.open_thread_list
+
+      expect(thread_list_page).to have_no_unread_item(thread.id, urgent: true)
+      Fabricate(:chat_message, thread: thread, use_service: true)
+      expect(thread_list_page).to have_unread_item(thread.id, urgent: true)
+    end
+
     it "allows the user to change their tracking level for an existing thread" do
       chat_page.visit_thread(thread)
       thread_page.notification_level = :normal
diff --git a/spec/requests/api/schemas/json/site_response.json b/spec/requests/api/schemas/json/site_response.json
index 13d7c145cd3..44cf69df471 100644
--- a/spec/requests/api/schemas/json/site_response.json
+++ b/spec/requests/api/schemas/json/site_response.json
@@ -119,6 +119,9 @@
         "chat_quoted": {
           "type": "integer"
         },
+        "chat_watched_thread": {
+          "type": "integer"
+        },
         "assigned": {
           "type": "integer"
         },