diff --git a/web/chat/chat-thread-list-item-menu.react.js b/web/chat/chat-thread-list-item-menu.react.js
index 22fad99a9..ac325b87c 100644
--- a/web/chat/chat-thread-list-item-menu.react.js
+++ b/web/chat/chat-thread-list-item-menu.react.js
@@ -1,99 +1,97 @@
 // @flow
 
-import classNames from 'classnames';
 import * as React from 'react';
 
 import {
   setThreadUnreadStatusActionTypes,
   setThreadUnreadStatus,
 } from 'lib/actions/activity-actions';
 import type {
   SetThreadUnreadStatusPayload,
   SetThreadUnreadStatusRequest,
 } from 'lib/types/activity-types';
 import type { ThreadInfo } from 'lib/types/thread-types';
 import {
   useServerCall,
   useDispatchActionPromise,
 } from 'lib/utils/action-utils';
 
+import Button from '../components/button.react';
 import SWMansionIcon from '../SWMansionIcon.react';
 import css from './chat-thread-list.css';
 
 type Props = {
   +threadInfo: ThreadInfo,
   +mostRecentNonLocalMessage: ?string,
   +renderStyle?: 'chat' | 'thread',
 };
 function ChatThreadListItemMenu(props: Props): React.Node {
   const { renderStyle = 'chat' } = props;
   const [menuVisible, setMenuVisible] = React.useState(false);
 
   const toggleMenu = React.useCallback(() => {
     setMenuVisible(!menuVisible);
   }, [menuVisible]);
 
   const hideMenu = React.useCallback(() => {
     setMenuVisible(false);
   }, []);
 
   const { threadInfo, mostRecentNonLocalMessage } = props;
   const dispatchActionPromise = useDispatchActionPromise();
   const boundSetThreadUnreadStatus: (
     request: SetThreadUnreadStatusRequest,
   ) => Promise<SetThreadUnreadStatusPayload> = useServerCall(
     setThreadUnreadStatus,
   );
   const toggleUnreadStatus = React.useCallback(() => {
     const { unread } = threadInfo.currentUser;
     const request = {
       threadID: threadInfo.id,
       unread: !unread,
       latestMessage: mostRecentNonLocalMessage,
     };
     dispatchActionPromise(
       setThreadUnreadStatusActionTypes,
       boundSetThreadUnreadStatus(request),
       undefined,
       {
         threadID: threadInfo.id,
         unread: !unread,
       },
     );
     hideMenu();
   }, [
     threadInfo,
     mostRecentNonLocalMessage,
     dispatchActionPromise,
     hideMenu,
     boundSetThreadUnreadStatus,
   ]);
 
   const toggleUnreadStatusButtonText = `Mark as ${
     threadInfo.currentUser.unread ? 'read' : 'unread'
   }`;
 
   const menuIconSize = renderStyle === 'chat' ? 24 : 16;
+
+  let btn;
+  if (menuVisible) {
+    btn = (
+      <Button variant="toggle_read" onClick={toggleUnreadStatus}>
+        {toggleUnreadStatusButtonText}
+      </Button>
+    );
+  }
+
   return (
     <div className={css.menu} onMouseLeave={hideMenu}>
       <button onClick={toggleMenu}>
         <SWMansionIcon icon="menu-vertical" size={menuIconSize} />
       </button>
-      <div
-        className={classNames(css.menuContent, {
-          [css.menuContentVisible]: menuVisible,
-        })}
-      >
-        <ul>
-          <li>
-            <button onClick={toggleUnreadStatus}>
-              {toggleUnreadStatusButtonText}
-            </button>
-          </li>
-        </ul>
-      </div>
+      <div>{btn}</div>
     </div>
   );
 }
 
 export default ChatThreadListItemMenu;
diff --git a/web/chat/chat-thread-list.css b/web/chat/chat-thread-list.css
index e4fcf42e1..b1e04584f 100644
--- a/web/chat/chat-thread-list.css
+++ b/web/chat/chat-thread-list.css
@@ -1,288 +1,280 @@
 div.thread {
   display: flex;
   flex-direction: row;
   align-items: flex-start;
   padding-top: 4px;
   padding-bottom: 4px;
   padding-left: 16px;
   padding-right: 10px;
 }
 div.threadListSideBar {
   display: flex;
   flex-direction: row;
   align-items: flex-start;
   padding-bottom: 4px;
   padding-left: 16px;
   padding-right: 10px;
   position: relative;
 }
 div.threadListSideBar > svg {
   position: absolute;
   top: -13px;
   left: 30px;
 }
 div.thread:first-child {
   padding-top: 6px;
 }
 div.activeThread,
 div.thread:hover {
   background: var(--selected-thread-bg);
 }
 div.thread div.title {
   flex: 1;
   font-size: var(--m-font-16);
   font-weight: var(--semi-bold);
   white-space: nowrap;
   overflow: hidden;
   text-overflow: ellipsis;
   color: var(--thread-color-read);
   line-height: var(--line-height-text);
 }
 a.threadButton {
   flex: 1;
   cursor: pointer;
   overflow: hidden;
   padding-left: 8px;
 }
 .threadButtonSidebar {
   flex: 1;
   cursor: pointer;
   overflow: hidden;
   padding-left: 8px;
 }
 p.breadCrumbs {
   display: flex;
   font-size: var(--xs-font-12);
   font-weight: var(--normal);
   color: var(--breadcrumb-color);
 }
 p.breadCrumbs.unread {
   color: var(--breadcrumb-color-unread);
 }
 span.breadCrumb {
   display: flex;
   align-items: center;
   white-space: nowrap;
   text-overflow: ellipsis;
 }
 
 div.spacer,
 div.colorSplotch {
   height: 40px;
   width: 40px;
   border-radius: 1.68px;
 }
 div.lastActivity {
   font-size: var(--xxs-font-10);
   color: var(--fg);
   line-height: 1.5;
   font-weight: var(--semi-bold);
   white-space: nowrap;
 }
 
 div.lastMessage {
   font-size: 16px;
   white-space: nowrap;
   overflow: hidden;
   text-overflow: ellipsis;
   flex: 1;
 }
 div.threadRow > .lastMessage {
   color: var(--thread-last-message-color-read);
   font-size: var(--s-font-14);
 }
 div.thread.activeThread a {
   color: red;
 }
 div.unread {
   color: var(--fg);
   font-weight: var(--semi-bold);
 }
 div.lastMessage.black {
   color: var(--fg);
 }
 div.dark {
   color: var(--thread-color-read);
 }
 .light {
   color: var(--thread-from-color-read);
 }
 div.italic {
   font-style: italic;
 }
 div.sidebarTitle {
   flex: 1;
   font-size: 15px;
   white-space: nowrap;
   overflow: hidden;
   text-overflow: ellipsis;
   color: var(--thread-color-read);
   align-self: flex-start;
 }
 div.sidebarLastActivity {
   white-space: nowrap;
   font-size: var(--xxs-font-10);
   line-height: var(--line-height-text);
   font-weight: var(--semi-bold);
 }
 svg.sidebarIcon {
   color: var(--thread-color-read);
   padding: 0 6px;
   font-size: 20px;
 }
 div.sidebar .menu > button svg {
   font-size: 16px;
   color: var(--thread-color-read);
 }
 div.sidebar .menu {
   opacity: 0;
 }
 div.sidebar:hover .menu {
   display: flex;
   align-self: flex-end;
   opacity: 1;
 }
 .menu {
   position: relative;
   display: flex;
+  padding: 5px;
   justify-content: flex-end;
 }
 .menu > button {
   background-color: transparent;
   color: var(--thread-color-read);
   border: none;
   cursor: pointer;
   display: flex;
   align-items: center;
 }
 
 .menu > button:focus {
   outline: none;
 }
 
 .menuContent {
   display: none;
   position: absolute;
   top: calc(100% + 1px);
   right: 0;
   z-index: 1;
   width: max-content;
   overflow: hidden;
   background-color: #eeeeee;
   border-radius: 5px;
   box-shadow: 1px 1px 5px 2px #00000022;
 }
-.menuContentVisible {
-  display: block;
-}
-.menuContent ul {
-  list-style: none;
-}
-.menuContent li:not(:last-child) {
-  border-bottom: 1px solid #dddddd;
-}
-.menuContent button {
+button.menuContent {
   border: none;
   cursor: pointer;
   padding: 10px;
   font-size: 16px;
 }
 .menuContent button:hover {
   background-color: #dddddd;
 }
 
 ul.list {
   margin: 5px 3px 10px 0px;
   overflow: auto;
 }
 
 div.search {
   display: flex;
   background-color: #dddddd;
   border-radius: 5px;
   padding: 3px 5px;
   align-items: center;
 }
 svg.searchVector {
   fill: #aaaaaa;
   height: 22px;
   width: 22px;
   padding: 0 3px;
   margin-left: 8px;
 }
 div.search > input {
   color: black;
   padding: 0;
   border: none;
   background-color: #dddddd;
   font-weight: 600;
   font-size: 15px;
   flex-grow: 1;
   margin-left: 3px;
 }
 div.search > input:focus {
   outline: none;
 }
 svg.clearQuery {
   font-size: 15px;
   padding-bottom: 1px;
   padding-right: 2px;
   color: #aaaaaa;
 }
 svg.clearQuery:hover {
   font-size: 15px;
   padding-bottom: 1px;
   padding-right: 2px;
   color: white;
 }
 
 div.spacer {
   height: 6px;
 }
 
 div.emptyItem {
   padding: 10px;
   font-size: 16px;
   text-align: center;
   white-space: pre-wrap;
   color: var(--fg);
 }
 
 div.threadListContainer {
   display: flex;
   flex-direction: column;
 }
 
 div.searchContainer {
   background-color: var(--text-input-bg);
   display: flex;
   align-items: center;
   margin: 1rem;
 }
 
 input.searchInput {
   background-color: var(--text-input-bg);
   font-size: var(--s-font-14);
   padding: 1rem;
   flex: 1;
   border: none;
   color: var(--text-input-color);
   outline: none;
 }
 
 input.searchInput::placeholder {
   color: var(--text-input-placeholder);
 }
 
 button.clearSearch {
   color: var(--text-input-color);
   transition: ease-in-out 0.15s;
   border: none;
   padding: 0 1rem;
   font-size: var(--m-font-16);
   background: none;
 }
 
 button.clearSearchDisabled {
   opacity: 0;
 }
diff --git a/web/components/button.css b/web/components/button.css
index 5501187b2..f7feb1e20 100644
--- a/web/components/button.css
+++ b/web/components/button.css
@@ -1,34 +1,47 @@
 .btn {
   display: flex;
   align-items: center;
   justify-content: center;
   background: var(--settings-btn-bg);
   border-color: transparent;
   font-size: var(--m-font-16);
   padding: 12px 24px;
   border-radius: 4px;
   cursor: pointer;
 }
 
 .primary {
   background: var(--btn-bg-primary);
   color: var(--fg);
 }
 
 .secondary {
   background: var(--shades-black-90);
   color: var(--fg);
   border: 1px solid var(--btn-secondary-border);
 }
 
 .danger {
   background: var(--btn-bg-danger);
   color: var(--fg);
 }
 
 .round {
   width: 30px;
   height: 30px;
   border-radius: 50%;
   padding: 0;
 }
+
+.unread {
+  background: var(--unread-btn-bg);
+  color: var(--fg);
+  position: absolute;
+  z-index: 1;
+  font-size: var(--xs-font-12);
+  font-weight: var(--semi-bold);
+  top: 0;
+  right: 25px;
+  width: max-content;
+  padding: 10px;
+}
diff --git a/web/components/button.react.js b/web/components/button.react.js
index 265553c9a..271d7ee52 100644
--- a/web/components/button.react.js
+++ b/web/components/button.react.js
@@ -1,40 +1,40 @@
 // @flow
 
 import classnames from 'classnames';
 import * as React from 'react';
 
 import css from './button.css';
 
 type Props = {
   +onClick: (event: SyntheticEvent<HTMLButtonElement>) => void,
   +children: React.Node,
-  +variant?: 'primary' | 'secondary' | 'danger' | 'round',
+  +variant?: 'primary' | 'secondary' | 'danger' | 'round' | 'toggle_read',
   +type?: string,
   +disabled?: boolean,
   +className?: string,
 };
 
 function Button(props: Props): React.Node {
   const {
     onClick,
     children,
     variant = 'primary',
     type,
     disabled = false,
     className = '',
   } = props;
   const btnCls = classnames(css.btn, css[variant]);
 
   return (
     <button
       type={type}
       className={`${btnCls} ${className}`}
       onClick={onClick}
       disabled={disabled}
     >
       {children}
     </button>
   );
 }
 
 export default Button;
diff --git a/web/theme.css b/web/theme.css
index 1f808d44c..324362656 100644
--- a/web/theme.css
+++ b/web/theme.css
@@ -1,104 +1,105 @@
 :root {
-  /* Never use color values defined here directly in CSS. Add color variables to "Color Theme" below 
-     
+  /* Never use color values defined here directly in CSS. Add color variables to "Color Theme" below
+
      The reason we never use color values defined here directly in CSS is
 
       1. It makes changing themes from light / dark / user generated impossible.
       2. Gives the programmer context into the color being used.
       3. If our color system changes it's much easier to change color values in one place.
 
      Add a color value to the theme below, and then use it in your CSS.
      naming convention:
      - bg: background.
      - fg: foreground.
      - color: text-color
    */
   --shades-white-100: #ffffff;
   --shades-white-90: #f5f5f5;
   --shades-white-80: #ebebeb;
   --shades-white-70: #e0e0e0;
   --shades-white-60: #cccccc;
 
   --shades-black-100: #0a0a0a;
   --shades-black-90: #1f1f1f;
   --shades-black-80: #404040;
   --shades-black-70: #666666;
   --shades-black-60: #808080;
 
   --violet-dark-100: #7e57c2;
   --violet-dark-80: #6d49ab;
   --violet-dark-60: #563894;
   --violet-dark-40: #44297a;
   --violet-dark-20: #331f5c;
 
   --violet-light-100: #ae94db;
   --violet-light-80: #b9a4df;
   --violet-light-60: #d3c6ec;
   --violet-light-40: #e8e0f5;
   --violet-light-20: #f3f0fa;
 
   --success-light-10: #d5f6e3;
   --success-light-50: #6cdf9c;
   --success-primary: #00c853;
   --success-dark-50: #029841;
   --success-dark-90: #034920;
 
   --error-light-10: #feebe6;
   --error-light-50: #f9947b;
   --error-primary: #f53100;
   --error-dark-50: #b62602;
   --error-dark-90: #4f1203;
 
   --bg: var(--shades-black-100);
   --fg: var(--shades-white-100);
   --color-disabled: var(--shades-black-60);
   --text-input-bg: var(--shades-black-80);
   --text-input-color: var(--shades-white-60);
   --text-input-placeholder: var(--shades-white-60);
   --border: var(--shades-black-80);
   --error: var(--error-primary);
   --success: var(--success-dark-50);
 
   /* Color Theme */
   --btn-bg-primary: var(--violet-dark-100);
   --btn-bg-danger: var(--error-primary);
   --chat-bg: var(--violet-dark-80);
   --chat-confirmation-icon: var(--violet-dark-100);
   --keyserver-selection: var(--violet-dark-60);
   --thread-selection: var(--violet-light-80);
   --selected-thread-bg: var(--shades-black-90);
   --chat-timestamp-color: var(--shades-black-60);
   --tool-tip-bg: var(--shades-black-80);
   --tool-tip-color: var(--shades-black-60);
   --border-color: var(--shades-black-60);
   --calendar-chevron: var(--shades-black-60);
   --calendar-day-bg: var(--shades-black-60);
   --calendar-day-selected-color: var(--violet-dark-80);
   --community-bg: var(--shades-black-90);
   --unread-bg: var(--error-primary);
   --settings-btn-bg: var(--violet-dark-100);
   --modal-bg: var(--shades-black-90);
   --join-bg: var(--shades-black-90);
   --help-color: var(--shades-black-60);
   --modal-bg: var(--shades-black-90);
   --breadcrumb-color: var(--shades-black-60);
   --breadcrumb-color-unread: var(--shades-white-60);
   --join-bg: var(--shades-black-90);
   --btn-secondary-border: var(--shades-black-60);
   --thread-color-read: var(--shades-black-60);
   --thread-from-color-read: var(--shades-black-80);
   --thread-last-message-color-read: var(--shades-black-60);
   --relationship-button-green: var(--success-dark-50);
   --relationship-button-red: var(--error-primary);
   --relationship-button-text: var(--fg);
   --disconnected-bar-alert-bg: var(--error-dark-50);
   --disconnected-bar-alert-color: var(--shades-white-100);
   --disconnected-bar-connecting-bg: var(--shades-white-70);
   --disconnected-bar-connecting-color: var(--shades-black-100);
   --permission-color: var(--shades-white-60);
   --thread-top-bar-color: var(--shades-white-100);
   --thread-top-bar-menu-color: var(--shades-white-70);
   --thread-ancestor-keyserver-border: var(--shades-black-70);
   --thread-ancestor-color-light: var(--shades-white-70);
   --thread-ancestor-color-dark: var(--shades-black-100);
+  --unread-btn-bg: var(--shades-black-80);
 }