diff --git a/src/libs/UnreadIndicatorUpdater/index.js b/src/libs/UnreadIndicatorUpdater/index.js
index 09fa82612314..9acf1a17bbc6 100644
--- a/src/libs/UnreadIndicatorUpdater/index.js
+++ b/src/libs/UnreadIndicatorUpdater/index.js
@@ -3,12 +3,13 @@ import Onyx from 'react-native-onyx';
 import ONYXKEYS from '../../ONYXKEYS';
 import updateUnread from './updateUnread/index';
 import * as ReportUtils from '../ReportUtils';
+import CONST from '../../CONST';
 
 Onyx.connect({
     key: ONYXKEYS.COLLECTION.REPORT,
     waitForCollectionCallback: true,
     callback: (reportsFromOnyx) => {
-        const unreadReports = _.filter(reportsFromOnyx, ReportUtils.isUnread);
+        const unreadReports = _.filter(reportsFromOnyx, (report) => ReportUtils.isUnread(report) && report.notificationPreference !== CONST.REPORT.NOTIFICATION_PREFERENCE.HIDDEN);
         updateUnread(_.size(unreadReports));
     },
 });