diff --git a/app/controllers/api/v1/accounts/conversations_controller.rb b/app/controllers/api/v1/accounts/conversations_controller.rb
index 8734a3dd4..3a86a3c42 100644
--- a/app/controllers/api/v1/accounts/conversations_controller.rb
+++ b/app/controllers/api/v1/accounts/conversations_controller.rb
@@ -75,10 +75,13 @@ class Api::V1::Accounts::ConversationsController < Api::V1::Accounts::BaseContro
   end
 
   def update_last_seen
-    # rubocop:disable Rails/SkipsModelValidations
-    @conversation.update_column(:agent_last_seen_at, DateTime.now.utc)
-    @conversation.update_column(:assignee_last_seen_at, DateTime.now.utc) if assignee?
-    # rubocop:enable Rails/SkipsModelValidations
+    update_last_seen_on_conversation(DateTime.now.utc, assignee?)
+  end
+
+  def unread
+    last_incoming_message = @conversation.messages.incoming.last
+    last_seen_at = last_incoming_message.created_at - 1.second if last_incoming_message.present?
+    update_last_seen_on_conversation(last_seen_at, true)
   end
 
   def custom_attributes
@@ -88,6 +91,13 @@ class Api::V1::Accounts::ConversationsController < Api::V1::Accounts::BaseContro
 
   private
 
+  def update_last_seen_on_conversation(last_seen_at, update_assignee)
+    # rubocop:disable Rails/SkipsModelValidations
+    @conversation.update_column(:agent_last_seen_at, last_seen_at)
+    @conversation.update_column(:assignee_last_seen_at, last_seen_at) if update_assignee.present?
+    # rubocop:enable Rails/SkipsModelValidations
+  end
+
   def set_conversation_status
     status = params[:status] == 'bot' ? 'pending' : params[:status]
     @conversation.status = status
@@ -163,10 +173,10 @@ class Api::V1::Accounts::ConversationsController < Api::V1::Accounts::BaseContro
   end
 
   def conversation_finder
-    @conversation_finder ||= ConversationFinder.new(current_user, params)
+    @conversation_finder ||= ConversationFinder.new(Current.user, params)
   end
 
   def assignee?
-    @conversation.assignee_id? && current_user == @conversation.assignee
+    @conversation.assignee_id? && Current.user == @conversation.assignee
   end
 end
diff --git a/app/javascript/dashboard/api/inbox/conversation.js b/app/javascript/dashboard/api/inbox/conversation.js
index 22548499d..8d5f5b82c 100644
--- a/app/javascript/dashboard/api/inbox/conversation.js
+++ b/app/javascript/dashboard/api/inbox/conversation.js
@@ -68,6 +68,10 @@ class ConversationApi extends ApiClient {
     return axios.post(`${this.url}/${id}/update_last_seen`);
   }
 
+  markMessagesUnread({ id }) {
+    return axios.post(`${this.url}/${id}/unread`);
+  }
+
   toggleTyping({ conversationId, status, isPrivate }) {
     return axios.post(`${this.url}/${conversationId}/toggle_typing_status`, {
       typing_status: status,
diff --git a/app/javascript/dashboard/components/ChatList.vue b/app/javascript/dashboard/components/ChatList.vue
index 01192751c..84ae3f6ab 100644
--- a/app/javascript/dashboard/components/ChatList.vue
+++ b/app/javascript/dashboard/components/ChatList.vue
@@ -126,6 +126,7 @@
         @assign-label="onAssignLabels"
         @update-conversation-status="toggleConversationStatus"
         @context-menu-toggle="onContextMenuToggle"
+        @mark-as-unread="markAsUnread"
       />
 
       <div v-if="chatListLoading" class="text-center">
@@ -185,6 +186,7 @@ import {
   hasPressedAltAndJKey,
   hasPressedAltAndKKey,
 } from 'shared/helpers/KeyboardHelpers';
+import { conversationListPageURL } from '../helper/URLHelper';
 
 export default {
   components: {
@@ -637,6 +639,29 @@ export default {
         this.showAlert(this.$t('BULK_ACTION.ASSIGN_FAILED'));
       }
     },
+    async markAsUnread(conversationId) {
+      try {
+        await this.$store.dispatch('markMessagesUnread', {
+          id: conversationId,
+        });
+        const {
+          params: { accountId, inbox_id: inboxId, label, teamId },
+          name,
+        } = this.$route;
+        this.$router.push(
+          conversationListPageURL({
+            accountId,
+            conversationType: name === 'conversation_mentions' ? 'mention' : '',
+            customViewId: this.foldersId,
+            inboxId,
+            label,
+            teamId,
+          })
+        );
+      } catch (error) {
+        // Ignore error
+      }
+    },
     async onAssignTeam(team, conversationId = null) {
       try {
         await this.$store.dispatch('assignTeam', {
diff --git a/app/javascript/dashboard/components/widgets/conversation/ConversationCard.vue b/app/javascript/dashboard/components/widgets/conversation/ConversationCard.vue
index 61ee5e198..3f50c5577 100644
--- a/app/javascript/dashboard/components/widgets/conversation/ConversationCard.vue
+++ b/app/javascript/dashboard/components/widgets/conversation/ConversationCard.vue
@@ -102,10 +102,12 @@
       <conversation-context-menu
         :status="chat.status"
         :inbox-id="inbox.id"
+        :has-unread-messages="hasUnread"
         @update-conversation="onUpdateConversation"
         @assign-agent="onAssignAgent"
         @assign-label="onAssignLabel"
         @assign-team="onAssignTeam"
+        @mark-as-unread="markAsUnread"
       />
     </woot-context-menu>
   </div>
@@ -241,7 +243,7 @@ export default {
     },
 
     unreadCount() {
-      return this.unreadMessagesCount(this.chat);
+      return this.chat.unread_count;
     },
 
     hasUnread() {
@@ -359,6 +361,10 @@ export default {
       this.$emit('assign-team', team, this.chat.id);
       this.closeContextMenu();
     },
+    async markAsUnread() {
+      this.$emit('mark-as-unread', this.chat.id);
+      this.closeContextMenu();
+    },
   },
 };
 </script>
diff --git a/app/javascript/dashboard/components/widgets/conversation/MessagesView.vue b/app/javascript/dashboard/components/widgets/conversation/MessagesView.vue
index 56a1dcb89..c99fc5385 100644
--- a/app/javascript/dashboard/components/widgets/conversation/MessagesView.vue
+++ b/app/javascript/dashboard/components/widgets/conversation/MessagesView.vue
@@ -44,11 +44,11 @@
         "
         :is-web-widget-inbox="isAWebWidgetInbox"
       />
-      <li v-show="getUnreadCount != 0" class="unread--toast">
+      <li v-show="unreadMessageCount != 0" class="unread--toast">
         <span class="text-uppercase">
-          {{ getUnreadCount }}
+          {{ unreadMessageCount }}
           {{
-            getUnreadCount > 1
+            unreadMessageCount > 1
               ? $t('CONVERSATION.UNREAD_MESSAGES')
               : $t('CONVERSATION.UNREAD_MESSAGE')
           }}
@@ -137,7 +137,6 @@ export default {
       allConversations: 'getAllConversations',
       inboxesList: 'inboxes/getInboxes',
       listLoadingStatus: 'getAllMessagesLoaded',
-      getUnreadCount: 'getUnreadCount',
       loadingChatList: 'getChatListLoadingStatus',
     }),
     inboxId() {
@@ -271,6 +270,9 @@ export default {
       }
       return '';
     },
+    unreadMessageCount() {
+      return this.currentChat.unread_count;
+    },
   },
 
   watch: {
@@ -331,7 +333,7 @@ export default {
     },
     scrollToBottom() {
       let relevantMessages = [];
-      if (this.getUnreadCount > 0) {
+      if (this.unreadMessageCount > 0) {
         // capturing only the unread messages
         relevantMessages = this.conversationPanel.querySelectorAll(
           '.message--unread'
diff --git a/app/javascript/dashboard/components/widgets/conversation/contextMenu/Index.vue b/app/javascript/dashboard/components/widgets/conversation/contextMenu/Index.vue
index a8a5f3cb3..6a27d31eb 100644
--- a/app/javascript/dashboard/components/widgets/conversation/contextMenu/Index.vue
+++ b/app/javascript/dashboard/components/widgets/conversation/contextMenu/Index.vue
@@ -1,5 +1,11 @@
 <template>
   <div class="menu-container">
+    <menu-item
+      v-if="!hasUnreadMessages"
+      :option="unreadOption"
+      variant="icon"
+      @click="$emit('mark-as-unread')"
+    />
     <template v-for="option in statusMenuConfig">
       <menu-item
         v-if="show(option.key)"
@@ -79,6 +85,10 @@ export default {
       type: String,
       default: '',
     },
+    hasUnreadMessages: {
+      type: Boolean,
+      default: false,
+    },
     inboxId: {
       type: Number,
       default: null,
@@ -87,6 +97,10 @@ export default {
   data() {
     return {
       STATUS_TYPE: wootConstants.STATUS_TYPE,
+      unreadOption: {
+        label: this.$t('CONVERSATION.CARD_CONTEXT_MENU.MARK_AS_UNREAD'),
+        icon: 'mail',
+      },
       statusMenuConfig: [
         {
           key: wootConstants.STATUS_TYPE.RESOLVED,
diff --git a/app/javascript/dashboard/helper/URLHelper.js b/app/javascript/dashboard/helper/URLHelper.js
index 93dc40f28..efda879da 100644
--- a/app/javascript/dashboard/helper/URLHelper.js
+++ b/app/javascript/dashboard/helper/URLHelper.js
@@ -66,6 +66,7 @@ export const conversationListPageURL = ({
   inboxId,
   label,
   teamId,
+  customViewId,
 }) => {
   let url = `accounts/${accountId}/dashboard`;
   if (label) {
@@ -76,6 +77,8 @@ export const conversationListPageURL = ({
     url = `accounts/${accountId}/mentions/conversations`;
   } else if (inboxId) {
     url = `accounts/${accountId}/inbox/${inboxId}`;
+  } else if (customViewId) {
+    url = `accounts/${accountId}/custom_view/${customViewId}`;
   }
   return frontendURL(url);
 };
diff --git a/app/javascript/dashboard/helper/specs/URLHelper.spec.js b/app/javascript/dashboard/helper/specs/URLHelper.spec.js
index 088f384d6..cd2623c23 100644
--- a/app/javascript/dashboard/helper/specs/URLHelper.spec.js
+++ b/app/javascript/dashboard/helper/specs/URLHelper.spec.js
@@ -29,6 +29,12 @@ describe('#URL Helpers', () => {
         '/app/accounts/1/team/1'
       );
     });
+
+    it('should return url to custom view', () => {
+      expect(conversationListPageURL({ accountId: 1, customViewId: 1 })).toBe(
+        '/app/accounts/1/custom_view/1'
+      );
+    });
   });
   describe('conversationUrl', () => {
     it('should return direct conversation URL if activeInbox is nil', () => {
diff --git a/app/javascript/dashboard/i18n/locale/en/conversation.json b/app/javascript/dashboard/i18n/locale/en/conversation.json
index 771b5305f..37cc53c68 100644
--- a/app/javascript/dashboard/i18n/locale/en/conversation.json
+++ b/app/javascript/dashboard/i18n/locale/en/conversation.json
@@ -64,6 +64,7 @@
     "CARD_CONTEXT_MENU": {
       "PENDING": "Mark as pending",
       "RESOLVED": "Mark as resolved",
+      "MARK_AS_UNREAD": "Mark as unread",
       "REOPEN": "Reopen conversation",
       "SNOOZE": {
         "TITLE": "Snooze",
diff --git a/app/javascript/dashboard/mixins/conversations.js b/app/javascript/dashboard/mixins/conversations.js
index adcd2e802..85797a9bc 100644
--- a/app/javascript/dashboard/mixins/conversations.js
+++ b/app/javascript/dashboard/mixins/conversations.js
@@ -34,14 +34,6 @@ export default {
         lastNonActivityMessageFromAPI
       );
     },
-    unreadMessagesCount(m) {
-      return m.messages.filter(
-        chat =>
-          chat.created_at * 1000 > m.agent_last_seen_at * 1000 &&
-          chat.message_type === 0 &&
-          chat.private !== true
-      ).length;
-    },
     hasUserReadMessage(createdAt, contactLastSeen) {
       return !(contactLastSeen - createdAt < 0);
     },
diff --git a/app/javascript/dashboard/mixins/specs/conversation.spec.js b/app/javascript/dashboard/mixins/specs/conversation.spec.js
index 0eb6c4fc3..a8413e8fe 100644
--- a/app/javascript/dashboard/mixins/specs/conversation.spec.js
+++ b/app/javascript/dashboard/mixins/specs/conversation.spec.js
@@ -4,13 +4,6 @@ import commonHelpers from '../../helper/commons';
 commonHelpers();
 
 describe('#conversationMixin', () => {
-  it('should return unread message count 2 if conversation is passed', () => {
-    expect(
-      conversationMixin.methods.unreadMessagesCount(
-        conversationFixture.conversation
-      )
-    ).toEqual(2);
-  });
   it('should return read messages if conversation is passed', () => {
     expect(
       conversationMixin.methods.readMessages(conversationFixture.conversation)
diff --git a/app/javascript/dashboard/store/modules/conversations/actions.js b/app/javascript/dashboard/store/modules/conversations/actions.js
index eb13afd4c..86cc2c998 100644
--- a/app/javascript/dashboard/store/modules/conversations/actions.js
+++ b/app/javascript/dashboard/store/modules/conversations/actions.js
@@ -8,7 +8,7 @@ import {
   buildConversationList,
   isOnMentionsView,
 } from './helpers/actionHelpers';
-
+import messageReadActions from './actions/messageReadActions';
 // actions
 const actions = {
   getConversation: async ({ commit }, conversationId) => {
@@ -257,17 +257,6 @@ const actions = {
     dispatch('contacts/setContact', sender);
   },
 
-  markMessagesRead: async ({ commit }, data) => {
-    try {
-      const {
-        data: { id, agent_last_seen_at: lastSeen },
-      } = await ConversationApi.markMessageRead(data);
-      setTimeout(() => commit(types.MARK_MESSAGE_READ, { id, lastSeen }), 4000);
-    } catch (error) {
-      // Handle error
-    }
-  },
-
   setChatFilter({ commit }, data) {
     commit(types.CHANGE_CHAT_STATUS_FILTER, data);
   },
@@ -336,6 +325,7 @@ const actions = {
   clearConversationFilters({ commit }) {
     commit(types.CLEAR_CONVERSATION_FILTERS);
   },
+  ...messageReadActions,
 };
 
 export default actions;
diff --git a/app/javascript/dashboard/store/modules/conversations/actions/messageReadActions.js b/app/javascript/dashboard/store/modules/conversations/actions/messageReadActions.js
new file mode 100644
index 000000000..f6040a515
--- /dev/null
+++ b/app/javascript/dashboard/store/modules/conversations/actions/messageReadActions.js
@@ -0,0 +1,35 @@
+import { throwErrorMessage } from 'dashboard/store/utils/api';
+import ConversationApi from '../../../../api/inbox/conversation';
+import mutationTypes from '../../../mutation-types';
+
+export default {
+  markMessagesRead: async ({ commit }, data) => {
+    try {
+      const {
+        data: { id, agent_last_seen_at: lastSeen },
+      } = await ConversationApi.markMessageRead(data);
+      setTimeout(
+        () =>
+          commit(mutationTypes.UPDATE_MESSAGE_UNREAD_COUNT, { id, lastSeen }),
+        4000
+      );
+    } catch (error) {
+      // Handle error
+    }
+  },
+
+  markMessagesUnread: async ({ commit }, { id }) => {
+    try {
+      const {
+        data: { agent_last_seen_at: lastSeen, unread_count: unreadCount },
+      } = await ConversationApi.markMessagesUnread({ id });
+      commit(mutationTypes.UPDATE_MESSAGE_UNREAD_COUNT, {
+        id,
+        lastSeen,
+        unreadCount,
+      });
+    } catch (error) {
+      throwErrorMessage(error);
+    }
+  },
+};
diff --git a/app/javascript/dashboard/store/modules/conversations/index.js b/app/javascript/dashboard/store/modules/conversations/index.js
index bbcafedaf..b3c9ab7e4 100644
--- a/app/javascript/dashboard/store/modules/conversations/index.js
+++ b/app/javascript/dashboard/store/modules/conversations/index.js
@@ -146,13 +146,16 @@ export const mutations = {
     _state.listLoadingStatus = false;
   },
 
-  [types.MARK_MESSAGE_READ](_state, { id, lastSeen }) {
+  [types.UPDATE_MESSAGE_UNREAD_COUNT](
+    _state,
+    { id, lastSeen, unreadCount = 0 }
+  ) {
     const [chat] = _state.allConversations.filter(c => c.id === id);
     if (chat) {
-      chat.agent_last_seen_at = lastSeen;
+      Vue.set(chat, 'agent_last_seen_at', lastSeen);
+      Vue.set(chat, 'unread_count', unreadCount);
     }
   },
-
   [types.CHANGE_CHAT_STATUS_FILTER](_state, data) {
     _state.chatStatusFilter = data;
   },
diff --git a/app/javascript/dashboard/store/modules/specs/conversations/actions.spec.js b/app/javascript/dashboard/store/modules/specs/conversations/actions.spec.js
index 852565230..5a7d8f9a8 100644
--- a/app/javascript/dashboard/store/modules/specs/conversations/actions.spec.js
+++ b/app/javascript/dashboard/store/modules/specs/conversations/actions.spec.js
@@ -245,7 +245,7 @@ describe('#actions', () => {
       jest.runAllTimers();
       expect(commit).toHaveBeenCalledTimes(1);
       expect(commit.mock.calls).toEqual([
-        [types.MARK_MESSAGE_READ, { id: 1, lastSeen }],
+        [types.UPDATE_MESSAGE_UNREAD_COUNT, { id: 1, lastSeen }],
       ]);
     });
     it('sends correct mutations if api is unsuccessful', async () => {
@@ -255,6 +255,30 @@ describe('#actions', () => {
     });
   });
 
+  describe('#markMessagesUnread', () => {
+    it('sends correct mutations if API is successful', async () => {
+      const lastSeen = new Date().getTime() / 1000;
+      axios.post.mockResolvedValue({
+        data: { id: 1, agent_last_seen_at: lastSeen, unread_count: 1 },
+      });
+      await actions.markMessagesUnread({ commit }, { id: 1 });
+      jest.runAllTimers();
+      expect(commit).toHaveBeenCalledTimes(1);
+      expect(commit.mock.calls).toEqual([
+        [
+          types.UPDATE_MESSAGE_UNREAD_COUNT,
+          { id: 1, lastSeen, unreadCount: 1 },
+        ],
+      ]);
+    });
+    it('sends correct mutations if API is unsuccessful', async () => {
+      axios.post.mockRejectedValue({ message: 'Incorrect header' });
+      await expect(
+        actions.markMessagesUnread({ commit }, { id: 1 })
+      ).rejects.toThrow(Error);
+    });
+  });
+
   describe('#sendEmailTranscript', () => {
     it('sends correct mutations if api is successful', async () => {
       axios.post.mockResolvedValue({});
diff --git a/app/javascript/dashboard/store/modules/specs/conversations/mutations.spec.js b/app/javascript/dashboard/store/modules/specs/conversations/mutations.spec.js
index de0a8907c..caa9df090 100644
--- a/app/javascript/dashboard/store/modules/specs/conversations/mutations.spec.js
+++ b/app/javascript/dashboard/store/modules/specs/conversations/mutations.spec.js
@@ -11,20 +11,20 @@ describe('#mutations', () => {
     });
   });
 
-  describe('#MARK_MESSAGE_READ', () => {
+  describe('#UPDATE_MESSAGE_UNREAD_COUNT', () => {
     it('mark conversation as read', () => {
       const state = { allConversations: [{ id: 1 }] };
       const lastSeen = new Date().getTime() / 1000;
-      mutations[types.MARK_MESSAGE_READ](state, { id: 1, lastSeen });
+      mutations[types.UPDATE_MESSAGE_UNREAD_COUNT](state, { id: 1, lastSeen });
       expect(state.allConversations).toEqual([
-        { id: 1, agent_last_seen_at: lastSeen },
+        { id: 1, agent_last_seen_at: lastSeen, unread_count: 0 },
       ]);
     });
 
     it('doesnot send any mutation if chat doesnot exist', () => {
       const state = { allConversations: [] };
       const lastSeen = new Date().getTime() / 1000;
-      mutations[types.MARK_MESSAGE_READ](state, { id: 1, lastSeen });
+      mutations[types.UPDATE_MESSAGE_UNREAD_COUNT](state, { id: 1, lastSeen });
       expect(state.allConversations).toEqual([]);
     });
   });
diff --git a/app/javascript/dashboard/store/mutation-types.js b/app/javascript/dashboard/store/mutation-types.js
index 9a422f9cd..c2d8b30f8 100755
--- a/app/javascript/dashboard/store/mutation-types.js
+++ b/app/javascript/dashboard/store/mutation-types.js
@@ -36,7 +36,7 @@ export default {
   ADD_MESSAGE: 'ADD_MESSAGE',
   DELETE_MESSAGE: 'DELETE_MESSAGE',
   ADD_PENDING_MESSAGE: 'ADD_PENDING_MESSAGE',
-  MARK_MESSAGE_READ: 'MARK_MESSAGE_READ',
+  UPDATE_MESSAGE_UNREAD_COUNT: 'UPDATE_MESSAGE_UNREAD_COUNT',
   SET_PREVIOUS_CONVERSATIONS: 'SET_PREVIOUS_CONVERSATIONS',
   SET_ACTIVE_INBOX: 'SET_ACTIVE_INBOX',
   UPDATE_CONVERSATION_CUSTOM_ATTRIBUTES:
diff --git a/app/views/api/v1/accounts/conversations/unread.json.jbuilder b/app/views/api/v1/accounts/conversations/unread.json.jbuilder
new file mode 100644
index 000000000..c273dd3c6
--- /dev/null
+++ b/app/views/api/v1/accounts/conversations/unread.json.jbuilder
@@ -0,0 +1 @@
+json.partial! 'api/v1/conversations/partials/conversation', formats: [:json], conversation: @conversation
diff --git a/config/routes.rb b/config/routes.rb
index d11269a97..333070e55 100644
--- a/config/routes.rb
+++ b/config/routes.rb
@@ -85,6 +85,7 @@ Rails.application.routes.draw do
               post :toggle_status
               post :toggle_typing_status
               post :update_last_seen
+              post :unread
               post :custom_attributes
             end
           end
diff --git a/spec/controllers/api/v1/accounts/conversations_controller_spec.rb b/spec/controllers/api/v1/accounts/conversations_controller_spec.rb
index d9654fadf..b0c2681a6 100644
--- a/spec/controllers/api/v1/accounts/conversations_controller_spec.rb
+++ b/spec/controllers/api/v1/accounts/conversations_controller_spec.rb
@@ -508,6 +508,38 @@ RSpec.describe 'Conversations API', type: :request do
     end
   end
 
+  describe 'POST /api/v1/accounts/{account.id}/conversations/:id/unread' do
+    let(:conversation) { create(:conversation, account: account) }
+
+    context 'when it is an unauthenticated user' do
+      it 'returns unauthorized' do
+        post "/api/v1/accounts/#{account.id}/conversations/#{conversation.display_id}/unread"
+
+        expect(response).to have_http_status(:unauthorized)
+      end
+    end
+
+    context 'when it is an authenticated user' do
+      let(:agent) { create(:user, account: account, role: :agent) }
+
+      before do
+        create(:inbox_member, user: agent, inbox: conversation.inbox)
+        create(:message, conversation: conversation, account: account, inbox: conversation.inbox, content: 'Hello', message_type: 'incoming')
+      end
+
+      it 'updates last seen' do
+        post "/api/v1/accounts/#{account.id}/conversations/#{conversation.display_id}/unread",
+             headers: agent.create_new_auth_token,
+             as: :json
+
+        expect(response).to have_http_status(:success)
+        last_seen_at = conversation.messages.incoming.last.created_at - 1.second
+        expect(conversation.reload.agent_last_seen_at).to eq(last_seen_at)
+        expect(conversation.reload.assignee_last_seen_at).to eq(last_seen_at)
+      end
+    end
+  end
+
   describe 'POST /api/v1/accounts/{account.id}/conversations/:id/mute' do
     let(:conversation) { create(:conversation, account: account) }