diff --git a/src/app/components/unread-badge/UnreadBadge.tsx b/src/app/components/unread-badge/UnreadBadge.tsx
index f8bfefa3c0..a80763da12 100644
--- a/src/app/components/unread-badge/UnreadBadge.tsx
+++ b/src/app/components/unread-badge/UnreadBadge.tsx
@@ -1,6 +1,8 @@
 import React, { CSSProperties, ReactNode } from 'react';
 import { Box, Badge, toRem, Text } from 'folds';
 import { millify } from '../../plugins/millify';
+import { useSetting } from '../../state/hooks/settings';
+import { settingsAtom } from '../../state/settings';
 
 type UnreadBadgeProps = {
   highlight?: boolean;
@@ -18,6 +20,11 @@ export function UnreadBadgeCenter({ children }: { children: ReactNode }) {
 }
 
 export function UnreadBadge({ highlight, count }: UnreadBadgeProps) {
+  const [hideUnreadActivityDots] = useSetting(settingsAtom, 'hideUnreadActivityDots');
+
+  // Suppress the dot-only indicator (no count, not a highlight) when hidden by user.
+  if (hideUnreadActivityDots && count <= 0 && !highlight) return null;
+
   return (
     <Badge
       variant={highlight ? 'Success' : 'Secondary'}
diff --git a/src/app/features/settings/notifications/SystemNotification.tsx b/src/app/features/settings/notifications/SystemNotification.tsx
index e0df06df91..dad006cfe7 100644
--- a/src/app/features/settings/notifications/SystemNotification.tsx
+++ b/src/app/features/settings/notifications/SystemNotification.tsx
@@ -91,6 +91,10 @@ export function SystemNotification() {
     settingsAtom,
     'isNotificationSounds'
   );
+  const [hideUnreadActivityDots, setHideUnreadActivityDots] = useSetting(
+    settingsAtom,
+    'hideUnreadActivityDots'
+  );
 
   const requestNotificationPermission = () => {
     window.Notification.requestPermission();
@@ -145,6 +149,20 @@ export function SystemNotification() {
           after={<Switch value={isNotificationSounds} onChange={setIsNotificationSounds} />}
         />
       </SequenceCard>
+      <SequenceCard
+        className={SequenceCardStyle}
+        variant="SurfaceVariant"
+        direction="Column"
+        gap="400"
+      >
+        <SettingTile
+          title="Hide Unread Activity Dots"
+          description="Hide the small empty indicator shown for rooms with unread events that did not trigger a notification (e.g. rooms set to mentions-only or otherwise downgraded). Rooms with notification or highlight counts are unaffected."
+          after={
+            <Switch value={hideUnreadActivityDots} onChange={setHideUnreadActivityDots} />
+          }
+        />
+      </SequenceCard>
       <SequenceCard
         className={SequenceCardStyle}
         variant="SurfaceVariant"
diff --git a/src/app/pages/client/direct/Direct.tsx b/src/app/pages/client/direct/Direct.tsx
index 04edf10906..8ade2e87a4 100644
--- a/src/app/pages/client/direct/Direct.tsx
+++ b/src/app/pages/client/direct/Direct.tsx
@@ -182,14 +182,21 @@ export function Direct() {
   const selectedRoomId = useSelectedRoom();
   const noRoomToDisplay = directs.length === 0;
   const [closedCategories, setClosedCategories] = useAtom(useClosedNavCategoriesAtom());
+  const [hideActivityDots] = useSetting(settingsAtom, 'hideUnreadActivityDots');
 
   const sortedDirects = useMemo(() => {
     const items = Array.from(directs).sort(factoryRoomIdByActivity(mx));
     if (closedCategories.has(DEFAULT_CATEGORY_ID)) {
-      return items.filter((rId) => roomToUnread.has(rId) || rId === selectedRoomId);
+      return items.filter((rId) => {
+        const u = roomToUnread.get(rId);
+        const isUnread = hideActivityDots
+          ? u !== undefined && (u.total > 0 || u.highlight > 0)
+          : roomToUnread.has(rId);
+        return isUnread || rId === selectedRoomId;
+      });
     }
     return items;
-  }, [mx, directs, closedCategories, roomToUnread, selectedRoomId]);
+  }, [mx, directs, closedCategories, roomToUnread, selectedRoomId, hideActivityDots]);
 
   const virtualizer = useVirtualizer({
     count: sortedDirects.length,
diff --git a/src/app/pages/client/home/Home.tsx b/src/app/pages/client/home/Home.tsx
index d87db963df..0b7c78d3cc 100644
--- a/src/app/pages/client/home/Home.tsx
+++ b/src/app/pages/client/home/Home.tsx
@@ -208,6 +208,7 @@ export function Home() {
   const searchSelected = useHomeSearchSelected();
   const noRoomToDisplay = rooms.length === 0;
   const [closedCategories, setClosedCategories] = useAtom(useClosedNavCategoriesAtom());
+  const [hideActivityDots] = useSetting(settingsAtom, 'hideUnreadActivityDots');
 
   const sortedRooms = useMemo(() => {
     const items = Array.from(rooms).sort(
@@ -216,10 +217,16 @@ export function Home() {
         : factoryRoomIdByAtoZ(mx)
     );
     if (closedCategories.has(DEFAULT_CATEGORY_ID)) {
-      return items.filter((rId) => roomToUnread.has(rId) || rId === selectedRoomId);
+      return items.filter((rId) => {
+        const u = roomToUnread.get(rId);
+        const isUnread = hideActivityDots
+          ? u !== undefined && (u.total > 0 || u.highlight > 0)
+          : roomToUnread.has(rId);
+        return isUnread || rId === selectedRoomId;
+      });
     }
     return items;
-  }, [mx, rooms, closedCategories, roomToUnread, selectedRoomId]);
+  }, [mx, rooms, closedCategories, roomToUnread, selectedRoomId, hideActivityDots]);
 
   const virtualizer = useVirtualizer({
     count: sortedRooms.length,
diff --git a/src/app/pages/client/space/Space.tsx b/src/app/pages/client/space/Space.tsx
index 2a7c619939..c491a644fe 100644
--- a/src/app/pages/client/space/Space.tsx
+++ b/src/app/pages/client/space/Space.tsx
@@ -383,6 +383,7 @@ export function Space() {
   const scrollRef = useRef<HTMLDivElement>(null);
   const mDirects = useAtomValue(mDirectAtom);
   const roomToUnread = useAtomValue(roomToUnreadAtom);
+  const [hideActivityDots] = useSetting(settingsAtom, 'hideUnreadActivityDots');
   const allRooms = useAtomValue(allRoomsAtom);
   const allJoinedRooms = useMemo(() => new Set(allRooms), [allRooms]);
   const notificationPreferences = useRoomsNotificationPreferencesContext();
@@ -413,11 +414,14 @@ export function Space() {
         if (!closedCategories.has(makeNavCategoryId(space.roomId, parentId))) {
           return false;
         }
-        const showRoomAnyway =
-          roomToUnread.has(roomId) || roomId === selectedRoomId || callEmbed?.roomId === roomId;
+        const u = roomToUnread.get(roomId);
+        const isUnread = hideActivityDots
+          ? u !== undefined && (u.total > 0 || u.highlight > 0)
+          : roomToUnread.has(roomId);
+        const showRoomAnyway = isUnread || roomId === selectedRoomId || callEmbed?.roomId === roomId;
         return !showRoomAnyway;
       },
-      [space.roomId, closedCategories, roomToUnread, selectedRoomId, callEmbed]
+      [space.roomId, closedCategories, roomToUnread, selectedRoomId, callEmbed, hideActivityDots]
     ),
     useCallback(
       (sId) => closedCategories.has(makeNavCategoryId(space.roomId, sId)),
diff --git a/src/app/state/settings.ts b/src/app/state/settings.ts
index 9fbad4ff0f..03847201f0 100644
--- a/src/app/state/settings.ts
+++ b/src/app/state/settings.ts
@@ -42,6 +42,7 @@ export interface Settings {
 
   showNotifications: boolean;
   isNotificationSounds: boolean;
+  hideUnreadActivityDots: boolean;
 
   hour24Clock: boolean;
   dateFormatString: string;
@@ -76,6 +77,7 @@ const defaultSettings: Settings = {
 
   showNotifications: true,
   isNotificationSounds: true,
+  hideUnreadActivityDots: false,
 
   hour24Clock: false,
   dateFormatString: 'D MMM YYYY',