diff --git a/pkg/interface/src/views/apps/chat/components/lib/ChatMessage.tsx b/pkg/interface/src/views/apps/chat/components/lib/ChatMessage.tsx
index 30ab082f9..3c87a08aa 100644
--- a/pkg/interface/src/views/apps/chat/components/lib/ChatMessage.tsx
+++ b/pkg/interface/src/views/apps/chat/components/lib/ChatMessage.tsx
@@ -1,6 +1,7 @@
 import React, { Component, PureComponent } from "react";
 import moment from "moment";
 import _ from "lodash";
+import { Box } from "@tlon/indigo-react";
 
 import { OverlaySigil } from './overlay-sigil';
 import { uxToHex, cite, writeText } from '~/logic/lib/util';
@@ -12,14 +13,10 @@ import RemoteContent from '~/views/components/RemoteContent';
 
 export const DATESTAMP_FORMAT = '[~]YYYY.M.D';
 
-export const UnreadMarker = React.forwardRef(({ dayBreak, when, style }, ref) => (
-  <div ref={element => {
-    setTimeout(() => {
-      element.style.opacity = '1';
-    }, 250);
-  }} className="green2 flex items-center f9 absolute w-100" style={{...style, opacity: '0'}}>
+export const UnreadMarker = React.forwardRef(({ dayBreak, when }, ref) => (
+  <div ref={ref} className="green2 flex items-center f9 absolute w-100 left-0">
     <hr className="dn-s ma0 w2 b--green2 bt-0" />
-    <p className="mh4">New messages below</p>
+    <p className="mh4" style={{ whiteSpace: 'normal' }}>New messages below</p>
     <hr className="ma0 flex-grow-1 b--green2 bt-0" />
     {dayBreak
       ? <p className="gray2 mh4">{moment(when).calendar()}</p>
@@ -39,18 +36,19 @@ interface ChatMessageProps {
   msg: Envelope | IMessage;
   previousMsg: Envelope | IMessage | undefined;
   nextMsg: Envelope | IMessage | undefined;
-  isFirstUnread: boolean;
+  isLastRead: boolean;
   group: Group;
   association: Association;
   contacts: Contacts;
-  unreadRef: React.RefObject<HTMLDivElement>;
   hideAvatars: boolean;
   hideNicknames: boolean;
   remoteContentPolicy: LocalUpdateRemoteContentPolicy;
-  className: string;
+  className?: string;
   isPending: boolean;
   style?: any;
   scrollWindow: HTMLDivElement;
+  isLastMessage?: boolean;
+  unreadMarkerRef: React.RefObject<HTMLDivElement>;
 }
 
 export default class ChatMessage extends Component<ChatMessageProps> {
@@ -72,11 +70,10 @@ export default class ChatMessage extends Component<ChatMessageProps> {
       msg,
       previousMsg,
       nextMsg,
-      isFirstUnread,
+      isLastRead,
       group,
       association,
       contacts,
-      unreadRef,
       hideAvatars,
       hideNicknames,
       remoteContentPolicy,
@@ -84,7 +81,9 @@ export default class ChatMessage extends Component<ChatMessageProps> {
       isPending,
       style,
       measure,
-      scrollWindow
+      scrollWindow,
+      isLastMessage,
+      unreadMarkerRef
     } = this.props;
   
     const renderSigil = Boolean((nextMsg && msg.author !== nextMsg.author) || !nextMsg || msg.number === 1);
@@ -92,7 +91,7 @@ export default class ChatMessage extends Component<ChatMessageProps> {
 
     const containerClass = `${renderSigil
       ? `w-100 flex flex-wrap cf pr3 f7 pt4 pl3 lh-copy`
-      : `w-100 flex flex-wrap cf pr3 hide-child`} ${isPending ? ' o-40' : ''} ${className}`
+      : `w-100 flex flex-wrap cf pr3 hide-child`} ${isPending ? 'o-40' : ''} ${isLastMessage ? 'pb3' : ''} ${className}`
 
     const timestamp = moment.unix(msg.when / 1000).format(renderSigil ? 'hh:mm a' : 'hh:mm');
 
@@ -116,15 +115,19 @@ export default class ChatMessage extends Component<ChatMessageProps> {
       scrollWindow
     };
 
+    const unreadContainerStyle = {
+      height: isLastRead ? '1.66em' : '0',
+    };
+
     return (
       <div ref={this.divRef} className={containerClass} style={style} data-number={msg.number}>
-        {dayBreak && !isFirstUnread ? <DayBreak when={msg.when} /> : null}
+        {dayBreak && !isLastRead ? <DayBreak when={msg.when} /> : null}
         {renderSigil
           ? <MessageWithSigil {...messageProps} />
           : <MessageWithoutSigil {...messageProps} />}
-        {isFirstUnread
-          ? <UnreadMarker ref={unreadRef} dayBreak={dayBreak} when={msg.when} style={{ marginTop: (renderSigil ? "-17px" : "-6px") }} />
-          : null}
+        <Box fontSize='0' position='relative' width='100%' overflow='hidden' style={unreadContainerStyle}>{isLastRead
+          ? <UnreadMarker dayBreak={dayBreak} when={msg.when} ref={unreadMarkerRef} />
+          : null}</Box>
       </div>
     );
   }
diff --git a/pkg/interface/src/views/apps/chat/components/lib/ChatWindow.tsx b/pkg/interface/src/views/apps/chat/components/lib/ChatWindow.tsx
index 4724a94bf..bc3f9270b 100644
--- a/pkg/interface/src/views/apps/chat/components/lib/ChatWindow.tsx
+++ b/pkg/interface/src/views/apps/chat/components/lib/ChatWindow.tsx
@@ -48,10 +48,12 @@ interface ChatWindowState {
   fetchPending: boolean;
   idle: boolean;
   initialized: boolean;
+  lastRead: number;
 }
 
 export default class ChatWindow extends Component<ChatWindowProps, ChatWindowState> {
   private virtualList: VirtualScroller | null;
+  private unreadMarkerRef: React.RefObject<HTMLDivElement>;
   
   INITIALIZATION_MAX_TIME = 1500;
 
@@ -61,18 +63,20 @@ export default class ChatWindow extends Component<ChatWindowProps, ChatWindowSta
     this.state = {
       fetchPending: false,
       idle: true,
-      initialized: false
+      initialized: false,
+      lastRead: props.unreadCount ? props.mailboxSize - props.unreadCount : Infinity,
     };
     
     this.dismissUnread = this.dismissUnread.bind(this);
-    this.initialIndex = this.initialIndex.bind(this);
     this.scrollToUnread = this.scrollToUnread.bind(this);
     this.handleWindowBlur = this.handleWindowBlur.bind(this);
     this.handleWindowFocus = this.handleWindowFocus.bind(this);
     this.stayLockedIfActive = this.stayLockedIfActive.bind(this);
-    this.firstUnread = this.firstUnread.bind(this);
+    this.dismissIfLineVisible = this.dismissIfLineVisible.bind(this);
+    this.lastRead = this.lastRead.bind(this);
     
     this.virtualList = null;
+    this.unreadMarkerRef = React.createRef();
   }
 
   componentDidMount() {
@@ -97,14 +101,6 @@ export default class ChatWindow extends Component<ChatWindowProps, ChatWindowSta
     this.setState({ idle: false });
   }
 
-  initialIndex() {
-    const { mailboxSize, unreadCount } = this.props;
-    return Math.min(Math.max(mailboxSize - 1 < INITIAL_LOAD
-      ? 0
-      : this.firstUnread(),
-    0), mailboxSize);
-  }
-
   initialFetch() {
     const { envelopes, mailboxSize, unreadCount } = this.props;
     if (envelopes.length > 0) {
@@ -112,17 +108,9 @@ export default class ChatWindow extends Component<ChatWindowProps, ChatWindowSta
       this.stayLockedIfActive();
       this.fetchMessages(start, start + DEFAULT_BACKLOG_SIZE, true).then(() => {
         if (!this.virtualList) return;
-        const initialIndex = this.initialIndex();
-        this.virtualList.scrollToData(initialIndex).then(() => {
-          if (
-            initialIndex === mailboxSize
-            || (this.virtualList && this.virtualList.window && this.virtualList.window.scrollTop === 0)
-          ) {
-            this.setState({ idle: false });
-            this.dismissUnread();
-          }
-          this.setState({ initialized: true });
-        });
+        this.setState({ idle: false });
+        this.setState({ initialized: true });
+        this.dismissIfLineVisible();
       });
     } else {
       setTimeout(() => {
@@ -195,9 +183,31 @@ export default class ChatWindow extends Component<ChatWindowProps, ChatWindowSta
       });
   }
 
-  firstUnread() {
+  lastRead() {
     const { mailboxSize, unreadCount } = this.props;
-    return mailboxSize - unreadCount + 1;
+    return mailboxSize - unreadCount;
+  }
+
+  onScroll({ scrollTop, scrollHeight, windowHeight }) {
+    if (!this.state.idle && scrollTop > IDLE_THRESHOLD) {
+      this.setState({ idle: true });
+    }
+
+    this.dismissIfLineVisible();
+  }
+
+  dismissIfLineVisible() {
+    if (this.props.unreadCount === 0) return;
+    if (!this.unreadMarkerRef.current || !this.virtualList?.window) return;
+    const parent = this.unreadMarkerRef.current.parentElement?.parentElement;
+    if (!parent) return;
+    const { scrollTop, scrollHeight, offsetHeight } = this.virtualList.window;
+    if (
+      (scrollHeight - parent.offsetTop > scrollTop)
+      && (scrollHeight - parent.offsetTop < scrollTop + offsetHeight)
+    ) {
+      this.dismissUnread();
+    }
   }
   
   render() {
@@ -220,6 +230,8 @@ export default class ChatWindow extends Component<ChatWindowProps, ChatWindowSta
       remoteContentPolicy,
     } = this.props;
 
+    const unreadMarkerRef = this.unreadMarkerRef;
+
     const messages = new Map();
     let lastMessage = 0;
     
@@ -238,7 +250,7 @@ export default class ChatWindow extends Component<ChatWindowProps, ChatWindowSta
         lastMessage = envelopes.length + index;
       });
 
-    const messageProps = { association, group, contacts, hideAvatars, hideNicknames, remoteContentPolicy };
+    const messageProps = { association, group, contacts, hideAvatars, hideNicknames, remoteContentPolicy, unreadMarkerRef };
     
     return (
       <>
@@ -258,11 +270,7 @@ export default class ChatWindow extends Component<ChatWindowProps, ChatWindowSta
             this.setState({ idle: false });
             this.dismissUnread();
           }}
-          onScroll={({ scrollTop }) => {
-            if (!this.state.idle && scrollTop > IDLE_THRESHOLD) {
-              this.setState({ idle: true });
-            }
-          }}
+          onScroll={this.onScroll.bind(this)}
           data={messages}
           size={mailboxSize + stationPendingMessages.length}
           renderer={({ index, measure, scrollWindow }) => {
@@ -272,15 +280,14 @@ export default class ChatWindow extends Component<ChatWindowProps, ChatWindowSta
               return <MessagePlaceholder key={index} height="64px" index={index} />;
             }
             const isPending: boolean = 'pending' in msg && Boolean(msg.pending);
-            const isFirstUnread: boolean = Boolean(unreadCount && index === this.firstUnread());
             const isLastMessage: boolean = Boolean(index === lastMessage)
-            const props = { measure, scrollWindow, isPending, isFirstUnread, msg, ...messageProps };
+            const isLastRead: boolean = Boolean(!isLastMessage && index === this.state.lastRead);
+            const props = { measure, scrollWindow, isPending, isLastRead, isLastMessage, msg, ...messageProps };
             return (
               <ChatMessage
                 key={index}
                 previousMsg={messages.get(index + 1)}
                 nextMsg={messages.get(index - 1)}
-                className={isLastMessage ? 'pb3' : ''}
                 {...props}
               />
             );