diff --git a/playwright/e2e/left-panel/room-list-panel/room-list-filter-sort.spec.ts b/playwright/e2e/left-panel/room-list-panel/room-list-filter-sort.spec.ts
index 21d22d8ccd..0ce13173b8 100644
--- a/playwright/e2e/left-panel/room-list-panel/room-list-filter-sort.spec.ts
+++ b/playwright/e2e/left-panel/room-list-panel/room-list-filter-sort.spec.ts
@@ -140,29 +140,35 @@ test.describe("Room list filters and sort", () => {
             expect(await roomList.locator("role=gridcell").count()).toBe(3);
         });
 
-        test("unread filter should only match unread rooms that have a count", async ({ page, app, bot }) => {
-            const roomListView = getRoomList(page);
+        test(
+            "unread filter should only match unread rooms that have a count",
+            { tag: "@screenshot" },
+            async ({ page, app, bot }) => {
+                const roomListView = getRoomList(page);
 
-            // Let's configure unread dm room so that we only get notification for mentions and keywords
-            await app.viewRoomById(unReadDmId);
-            await app.settings.openRoomSettings("Notifications");
-            await page.getByText("@mentions & keywords").click();
-            await app.settings.closeDialog();
+                // Let's configure unread dm room so that we only get notification for mentions and keywords
+                await app.viewRoomById(unReadDmId);
+                await app.settings.openRoomSettings("Notifications");
+                await page.getByText("@mentions & keywords").click();
+                await app.settings.closeDialog();
 
-            // Let's open a room other than unread room or unread dm
-            await roomListView.getByRole("gridcell", { name: "Open room favourite room" }).click();
+                // Let's open a room other than unread room or unread dm
+                await roomListView.getByRole("gridcell", { name: "Open room favourite room" }).click();
 
-            // Let's make the bot send a new message in both rooms
-            await bot.sendMessage(unReadDmId, "Hello!");
-            await bot.sendMessage(unReadRoomId, "Hello!");
+                // Let's make the bot send a new message in both rooms
+                await bot.sendMessage(unReadDmId, "Hello!");
+                await bot.sendMessage(unReadRoomId, "Hello!");
 
-            // Let's activate the unread filter now
-            await page.getByRole("option", { name: "Unread" }).click();
+                // Let's activate the unread filter now
+                await page.getByRole("option", { name: "Unread" }).click();
 
-            // Unread filter should only show unread room and not unread dm!
-            await expect(roomListView.getByRole("gridcell", { name: "Open room unread room" })).toBeVisible();
-            await expect(roomListView.getByRole("gridcell", { name: "Open room unread dm" })).not.toBeVisible();
-        });
+                // Unread filter should only show unread room and not unread dm!
+                const unreadDm = roomListView.getByRole("gridcell", { name: "Open room unread room" });
+                await expect(unreadDm).toBeVisible();
+                await expect(unreadDm).toMatchScreenshot("unread-dm.png");
+                await expect(roomListView.getByRole("gridcell", { name: "Open room unread dm" })).not.toBeVisible();
+            },
+        );
     });
 
     test.describe("Empty room list", () => {
diff --git a/playwright/snapshots/left-panel/room-list-panel/room-list-filter-sort.spec.ts/unread-dm-linux.png b/playwright/snapshots/left-panel/room-list-panel/room-list-filter-sort.spec.ts/unread-dm-linux.png
new file mode 100644
index 0000000000..8f33802a87
Binary files /dev/null and b/playwright/snapshots/left-panel/room-list-panel/room-list-filter-sort.spec.ts/unread-dm-linux.png differ
diff --git a/src/components/viewmodels/roomlist/RoomListItemViewModel.tsx b/src/components/viewmodels/roomlist/RoomListItemViewModel.tsx
index 0f10f600fb..e543dd46b2 100644
--- a/src/components/viewmodels/roomlist/RoomListItemViewModel.tsx
+++ b/src/components/viewmodels/roomlist/RoomListItemViewModel.tsx
@@ -92,6 +92,11 @@ export function useRoomListItemViewModel(room: Room): RoomListItemViewState {
         setNotificationValues(getNotificationValues(notificationState));
     });
 
+    // If the notification reference change due to room change, update the values
+    useEffect(() => {
+        setNotificationValues(getNotificationValues(notificationState));
+    }, [notificationState]);
+
     // We don't want to show the hover menu if
     // - there is an invitation for this room
     // - the user doesn't have access to both notification and more options menus
diff --git a/test/unit-tests/components/viewmodels/roomlist/RoomListItemViewModel-test.tsx b/test/unit-tests/components/viewmodels/roomlist/RoomListItemViewModel-test.tsx
index 68ba08c596..c00c38227d 100644
--- a/test/unit-tests/components/viewmodels/roomlist/RoomListItemViewModel-test.tsx
+++ b/test/unit-tests/components/viewmodels/roomlist/RoomListItemViewModel-test.tsx
@@ -128,6 +128,24 @@ describe("RoomListItemViewModel", () => {
             );
             expect(vm.current.isBold).toBe(true);
         });
+
+        it("should recompute notification state when room changes", () => {
+            const newRoom = mkStubRoom("room2", "Room 2", room.client);
+            const newNotificationState = new RoomNotificationState(newRoom, false);
+
+            const { result, rerender } = renderHook((room) => useRoomListItemViewModel(room), {
+                ...withClientContextRenderOptions(room.client),
+                initialProps: room,
+            });
+
+            expect(result.current.showNotificationDecoration).toBe(false);
+
+            jest.spyOn(newNotificationState, "hasAnyNotificationOrActivity", "get").mockReturnValue(true);
+            jest.spyOn(RoomNotificationStateStore.instance, "getRoomState").mockReturnValue(newNotificationState);
+            rerender(newRoom);
+
+            expect(result.current.showNotificationDecoration).toBe(true);
+        });
     });
 
     describe("a11yLabel", () => {