diff --git a/plugins/chat/assets/javascripts/discourse/services/chat-channels-manager.js b/plugins/chat/assets/javascripts/discourse/services/chat-channels-manager.js
index 67fb05dadc6..331896b484f 100644
--- a/plugins/chat/assets/javascripts/discourse/services/chat-channels-manager.js
+++ b/plugins/chat/assets/javascripts/discourse/services/chat-channels-manager.js
@@ -19,6 +19,7 @@ export default class ChatChannelsManager extends Service {
   @service chatApi;
   @service currentUser;
   @service router;
+  @service site;
   @tracked _cached = new TrackedObject();
 
   async find(id, options = { fetchIfNotFound: true }) {
@@ -111,12 +112,16 @@ export default class ChatChannelsManager extends Service {
 
   @cached
   get publicMessageChannels() {
-    return this.channels
-      .filter(
-        (channel) =>
-          channel.isCategoryChannel && channel.currentUserMembership.following
-      )
-      .sort((a, b) => a?.slug?.localeCompare?.(b?.slug));
+    const channels = this.channels.filter(
+      (channel) =>
+        channel.isCategoryChannel && channel.currentUserMembership.following
+    );
+
+    if (this.site.mobileView) {
+      return this.#sortChannelsByActivity(channels);
+    } else {
+      return channels.sort((a, b) => a?.title?.localeCompare?.(b?.title));
+    }
   }
 
   @cached
@@ -154,6 +159,32 @@ export default class ChatChannelsManager extends Service {
     return this._cached[id];
   }
 
+  #sortChannelsByActivity(channels) {
+    return channels.sort((a, b) => {
+      // if both channels have mention count, sort by aplhabetical order
+      // otherwise prioritize channel with mention count
+      if (a.tracking.mentionCount > 0 && b.tracking.mentionCount > 0) {
+        return a.title?.localeCompare?.(b.title);
+      }
+
+      if (a.tracking.mentionCount > 0 || b.tracking.mentionCount > 0) {
+        return a.tracking.mentionCount > b.tracking.mentionCount ? -1 : 1;
+      }
+
+      // if both channels have unread count, sort by aplhabetical order
+      // otherwise prioritize channel with unread count
+      if (a.tracking.unreadCount > 0 && b.tracking.unreadCount > 0) {
+        return a.title?.localeCompare?.(b.title);
+      }
+
+      if (a.tracking.unreadCount > 0 || b.tracking.unreadCount > 0) {
+        return a.tracking.unreadCount > b.tracking.unreadCount ? -1 : 1;
+      }
+
+      return a.title?.localeCompare?.(b.title);
+    });
+  }
+
   #sortDirectMessageChannels(channels) {
     return channels.sort((a, b) => {
       if (!a.lastMessage.id) {
diff --git a/plugins/chat/spec/system/list_channels/mobile_spec.rb b/plugins/chat/spec/system/list_channels/mobile_spec.rb
index 2932f847d09..793213e2ef8 100644
--- a/plugins/chat/spec/system/list_channels/mobile_spec.rb
+++ b/plugins/chat/spec/system/list_channels/mobile_spec.rb
@@ -50,24 +50,55 @@ RSpec.describe "List channels | mobile", type: :system, mobile: true do
     end
 
     context "when multiple category channels are present" do
-      fab!(:channel_1) { Fabricate(:category_channel, name: "b channel") }
-      fab!(:channel_2) { Fabricate(:category_channel, name: "a channel") }
+      fab!(:channel_1) { Fabricate(:category_channel, name: "a channel") }
+      fab!(:channel_2) { Fabricate(:category_channel, name: "b channel") }
+      fab!(:channel_3) { Fabricate(:category_channel, name: "c channel") }
+      fab!(:channel_4) { Fabricate(:category_channel, name: "d channel") }
 
       before do
         channel_1.add(current_user)
         channel_2.add(current_user)
+        channel_3.add(current_user)
+        channel_4.add(current_user)
       end
 
-      it "sorts them alphabetically" do
-        visit("/chat")
-        page.find("#c-footer-channels").click
+      it "sorts them by mentions, unread, then alphabetical order" do
+        Jobs.run_immediately!
 
-        expect(page.find("#public-channels a:nth-child(1)")["data-chat-channel-id"]).to eq(
-          channel_2.id.to_s,
+        Fabricate(
+          :chat_message,
+          chat_channel: channel_1,
+          created_at: 10.minutes.ago,
+          use_service: true,
         )
+        Fabricate(
+          :chat_message,
+          chat_channel: channel_2,
+          created_at: 5.minutes.ago,
+          use_service: true,
+        )
+        Fabricate(
+          :chat_message_with_service,
+          chat_channel: channel_4,
+          message: "Hey @#{current_user.username}",
+          user: Fabricate(:user),
+        )
+
+        Fabricate(:chat_message, chat_channel: channel_3, user: current_user, use_service: true)
+
+        visit("/chat/channels")
+
+        # channel with mentions should be first
+        expect(page.find("#public-channels a:nth-child(1)")["data-chat-channel-id"]).to eq(
+          channel_4.id.to_s,
+        )
+        # channels with unread messages are next, sorted by title
         expect(page.find("#public-channels a:nth-child(2)")["data-chat-channel-id"]).to eq(
           channel_1.id.to_s,
         )
+        expect(page.find("#public-channels a:nth-child(3)")["data-chat-channel-id"]).to eq(
+          channel_2.id.to_s,
+        )
       end
     end