diff --git a/packages/stream_chat/CHANGELOG.md b/packages/stream_chat/CHANGELOG.md
index 2996db07..8e54b7c1 100644
--- a/packages/stream_chat/CHANGELOG.md
+++ b/packages/stream_chat/CHANGELOG.md
@@ -7,6 +7,7 @@
 🐞 Fixed
 
 - `closeConnection()` now uses `normalClosure` status when closing websocket.
+- Fixed local unread count indicator increasing for thread replies
 
 ## 3.2.0
 
diff --git a/packages/stream_chat/lib/src/client/channel.dart b/packages/stream_chat/lib/src/client/channel.dart
index e7c2d459..c219a120 100644
--- a/packages/stream_chat/lib/src/client/channel.dart
+++ b/packages/stream_chat/lib/src/client/channel.dart
@@ -1860,10 +1860,13 @@ class ChannelClientState {
               (m) => m.user.id == message.user?.id,
             ) !=
             null;
+    final isThreadMessage = message.parentId != null;
+
     return !message.silent &&
         !message.shadowed &&
         message.user?.id != userId &&
-        !userIsMuted;
+        !userIsMuted &&
+        !isThreadMessage;
   }
 
   /// Update threads with updated information about messages.