diff --git a/packages/stream_chat/CHANGELOG.md b/packages/stream_chat/CHANGELOG.md
index ef66f835..144cfacc 100644
--- a/packages/stream_chat/CHANGELOG.md
+++ b/packages/stream_chat/CHANGELOG.md
@@ -10,6 +10,8 @@
 - [[#890]](https://github.com/GetStream/stream-chat-flutter/pull/890) Fixed Reactions not updating on thread messages.
   Thanks [bstolinski](https://github.com/bstolinski).
 - [[#897]](https://github.com/GetStream/stream-chat-flutter/issues/897) Fixed error type mis-match in `AuthInterceptor`.
+- [[#891]](https://github.com/GetStream/stream-chat-flutter/pull/891) Fixed reply counter for parent message not 
+  updating correctly after deleting thread message.
 - Fix `channelState.copyWith` with respect to pinnedMessages.
 
 ## 3.4.0
diff --git a/packages/stream_chat/lib/src/client/channel.dart b/packages/stream_chat/lib/src/client/channel.dart
index dd6fcff1..0493c0d7 100644
--- a/packages/stream_chat/lib/src/client/channel.dart
+++ b/packages/stream_chat/lib/src/client/channel.dart
@@ -407,7 +407,7 @@ class Channel {
       if (index != -1) {
         final newAttachments = [...message!.attachments]..[index] = attachment;
         final updatedMessage = message!.copyWith(attachments: newAttachments);
-        state?.addMessage(updatedMessage);
+        state?.updateMessage(updatedMessage);
         // updating original message for next iteration
         message = message!.merge(updatedMessage);
       }
@@ -512,7 +512,7 @@ class Channel {
       ).toList(),
     );
 
-    state!.addMessage(message);
+    state!.updateMessage(message);
 
     try {
       if (message.attachments.any((it) => !it.uploadState.isSuccess)) {
@@ -535,7 +535,7 @@ class Channel {
         type,
         skipPush: skipPush,
       );
-      state!.addMessage(response.message);
+      state!.updateMessage(response.message);
       if (cooldown > 0) cooldownStartedAt = DateTime.now();
       return response;
     } catch (e) {
@@ -571,7 +571,7 @@ class Channel {
       ).toList(),
     );
 
-    state?.addMessage(message);
+    state?.updateMessage(message);
 
     try {
       if (message.attachments.any((it) => !it.uploadState.isSuccess)) {
@@ -594,7 +594,7 @@ class Channel {
         ownReactions: message.ownReactions,
       );
 
-      state?.addMessage(m);
+      state?.updateMessage(m);
 
       return response;
     } catch (e) {
@@ -602,7 +602,7 @@ class Channel {
         if (e.isRetriable) {
           state!._retryQueue.add([message]);
         } else {
-          state?.addMessage(originalMessage);
+          state?.updateMessage(originalMessage);
         }
       }
       rethrow;
@@ -630,7 +630,7 @@ class Channel {
         ownReactions: message.ownReactions,
       );
 
-      state?.addMessage(updatedMessage);
+      state?.updateMessage(updatedMessage);
 
       return response;
     } catch (e) {
@@ -643,13 +643,18 @@ class Channel {
 
   /// Deletes the [message] from the channel.
   Future<EmptyResponse> deleteMessage(Message message, {bool? hard}) async {
+    final hardDelete = hard ?? false;
+
     // Directly deleting the local messages which are not yet sent to server
     if (message.status == MessageSendingStatus.sending ||
         message.status == MessageSendingStatus.failed) {
-      state!.addMessage(message.copyWith(
-        type: 'deleted',
-        status: MessageSendingStatus.sent,
-      ));
+      state!.deleteMessage(
+        message.copyWith(
+          type: 'deleted',
+          status: MessageSendingStatus.sent,
+        ),
+        hardDelete: hardDelete,
+      );
 
       // Removing the attachments upload completer to stop the `sendMessage`
       // waiting for attachments to complete.
@@ -667,11 +672,14 @@ class Channel {
         deletedAt: message.deletedAt ?? DateTime.now(),
       );
 
-      state?.addMessage(message);
+      state?.deleteMessage(message, hardDelete: hardDelete);
 
       final response = await _client.deleteMessage(message.id, hard: hard);
 
-      state?.addMessage(message.copyWith(status: MessageSendingStatus.sent));
+      state?.deleteMessage(
+        message.copyWith(status: MessageSendingStatus.sent),
+        hardDelete: hardDelete,
+      );
 
       return response;
     } catch (e) {
@@ -861,7 +869,7 @@ class Channel {
       ownReactions: ownReactions,
     );
 
-    state?.addMessage(newMessage);
+    state?.updateMessage(newMessage);
 
     try {
       final reactionResp = await _client.sendReaction(
@@ -874,7 +882,7 @@ class Channel {
       return reactionResp;
     } catch (_) {
       // Reset the message if the update fails
-      state?.addMessage(message);
+      state?.updateMessage(message);
       rethrow;
     }
   }
@@ -914,7 +922,7 @@ class Channel {
       ownReactions: ownReactions,
     );
 
-    state?.addMessage(newMessage);
+    state?.updateMessage(newMessage);
 
     try {
       final deleteResponse = await _client.deleteReaction(
@@ -924,7 +932,7 @@ class Channel {
       return deleteResponse;
     } catch (_) {
       // Reset the message if the update fails
-      state?.addMessage(message);
+      state?.updateMessage(message);
       rethrow;
     }
   }
@@ -1081,7 +1089,7 @@ class Channel {
 
     // update the passed message with response message
     if (res.message != null) {
-      state!.addMessage(res.message!);
+      state!.updateMessage(res.message!);
     } else {
       // remove the passed message if response does
       // not contain message
@@ -1712,7 +1720,7 @@ class ChannelClientState {
       final message = event.message!.copyWith(
         ownReactions: ownReactions,
       );
-      addMessage(message);
+      updateMessage(message);
     }));
   }
 
@@ -1725,7 +1733,7 @@ class ChannelClientState {
       final message = event.message!.copyWith(
         ownReactions: oldMessage?.ownReactions,
       );
-      addMessage(message);
+      updateMessage(message);
     }));
   }
 
@@ -1743,7 +1751,16 @@ class ChannelClientState {
       final message = event.message!.copyWith(
         ownReactions: oldMessage?.ownReactions,
       );
-      addMessage(message);
+      updateMessage(message);
+
+      if (message.pinned) {
+        _channelState = _channelState.copyWith(
+          pinnedMessages: [
+            ..._channelState.pinnedMessages,
+            message,
+          ],
+        );
+      }
     }));
   }
 
@@ -1751,9 +1768,9 @@ class ChannelClientState {
     _subscriptions.add(_channel.on(EventType.messageDeleted).listen((event) {
       final message = event.message!;
       if (event.hardDelete == true) {
-        removeMessage(message, hardDelete: true);
+        removeMessage(message);
       } else {
-        addMessage(message);
+        updateMessage(message);
       }
     }));
   }
@@ -1768,7 +1785,7 @@ class ChannelClientState {
       final message = event.message!;
       if (isUpToDate ||
           (message.parentId != null && message.showInChannel != true)) {
-        addMessage(message);
+        updateMessage(message);
       }
 
       if (_countMessageAsUnread(message)) {
@@ -1778,9 +1795,13 @@ class ChannelClientState {
   }
 
   /// Add a [message] to this [channelState].
-  void addMessage(Message message) {
+  @Deprecated('Use updateMessage instead')
+  void addMessage(Message message) => updateMessage(message);
+
+  /// Updates the [message] in the state if it exists. Adds it otherwise.
+  void updateMessage(Message message) {
     if (message.parentId == null || message.showInChannel == true) {
-      final newMessages = List<Message>.from(_channelState.messages);
+      final newMessages = [...messages];
       final oldIndex = newMessages.indexWhere((m) => m.id == message.id);
       if (oldIndex != -1) {
         Message? m;
@@ -1825,41 +1846,35 @@ class ChannelClientState {
   }
 
   /// Remove a [message] from this [channelState].
-  void removeMessage(Message message, {bool hardDelete = false}) {
+  void removeMessage(Message message) {
     final parentId = message.parentId;
-    // i.e. it's a thread message
-    // 1. Remove the thread message
-    // 2. Reduce total reply count of parent message
+    // i.e. it's a thread message, Remove it
     if (parentId != null) {
-      final allMessages = [...messages];
-      final parentMessage = allMessages.firstWhereOrNull(
-        (it) => it.id == parentId,
-      );
+      final newThreads = {...threads};
+      // Early return in case the thread is not available
+      if (!newThreads.containsKey(parentId)) return;
 
-      // return if message not available in the memory
-      if (parentMessage == null) return;
-      final replyCount = parentMessage.replyCount;
-      // return if reply count is null or zero
-      if (replyCount == null || replyCount == 0) return;
+      _threads = newThreads
+        ..update(
+          parentId,
+          (messages) => messages..removeWhere((e) => e.id == message.id),
+        );
 
-      addMessage(parentMessage.copyWith(replyCount: replyCount - 1));
-      updateThreadInfo(
-        parentId,
-        threads[parentId]!
-          ..removeWhere(
-            (e) => e.id == message.id,
-          ),
-      );
-    } else {
-      // Remove regular message
-      final allMessages = [...messages];
-      if (hardDelete) {
-        allMessages.removeWhere((e) => e.id == message.id);
-        _channelState = _channelState.copyWith(messages: allMessages);
-      } else if (allMessages.remove(message)) {
-        _channelState = _channelState.copyWith(messages: allMessages);
-      }
+      // Early return if the thread message is not shown in channel.
+      if (message.showInChannel == false) return;
     }
+
+    // Remove regular message, thread message shown in channel
+    final allMessages = [...messages];
+    _channelState = _channelState.copyWith(
+      messages: allMessages..removeWhere((e) => e.id == message.id),
+    );
+  }
+
+  /// Removes/Updates the [message] based on the [hardDelete] value.
+  void deleteMessage(Message message, {bool hardDelete = false}) {
+    if (hardDelete) return removeMessage(message);
+    return updateMessage(message);
   }
 
   void _listenReadEvents() {
diff --git a/packages/stream_chat/lib/src/client/retry_queue.dart b/packages/stream_chat/lib/src/client/retry_queue.dart
index 17b019a5..5dfa9aa3 100644
--- a/packages/stream_chat/lib/src/client/retry_queue.dart
+++ b/packages/stream_chat/lib/src/client/retry_queue.dart
@@ -158,7 +158,7 @@ class RetryQueue {
         : message.status == MessageSendingStatus.updating
             ? MessageSendingStatus.failed_update
             : MessageSendingStatus.failed_delete;
-    channel.state?.addMessage(message.copyWith(status: newStatus));
+    channel.state?.updateMessage(message.copyWith(status: newStatus));
   }
 
   Future<void> _retryMessage(Message message) async {