diff --git a/packages/stream_chat/CHANGELOG.md b/packages/stream_chat/CHANGELOG.md
index 61f00005..76b65833 100644
--- a/packages/stream_chat/CHANGELOG.md
+++ b/packages/stream_chat/CHANGELOG.md
@@ -14,6 +14,10 @@
 
 - Added `Filter.contains` and `Filter.empty`
 
+🐞 Fixed
+
+- [[#659]](https://github.com/GetStream/stream-chat-flutter/issues/659) Fixed unread count not updating correctly.
+
 ## 2.2.1
 
 🐞 Fixed
diff --git a/packages/stream_chat/lib/src/client/client.dart b/packages/stream_chat/lib/src/client/client.dart
index f9d10a92..9253b623 100644
--- a/packages/stream_chat/lib/src/client/client.dart
+++ b/packages/stream_chat/lib/src/client/client.dart
@@ -1366,16 +1366,7 @@ class ClientState {
           .where((event) =>
               event.me != null && event.type != EventType.healthCheck)
           .map((e) => e.me!)
-          .listen((user) {
-        currentUser = currentUser?.merge(user) ?? user;
-        final totalUnreadCount = user.totalUnreadCount;
-        _totalUnreadCountController.add(totalUnreadCount);
-
-        final unreadChannels = user.unreadChannels;
-        if (unreadChannels != null) {
-          _unreadChannelsController.add(unreadChannels);
-        }
-      }),
+          .listen((user) => currentUser = currentUser?.merge(user) ?? user),
       _client
           .on()
           .map((event) => event.unreadChannels)
@@ -1441,6 +1432,7 @@ class ClientState {
   /// Sets the user currently interacting with the client
   /// note: this fully overrides the [currentUser]
   set currentUser(OwnUser? user) {
+    _computeUnreadCounts(user);
     _currentUserController.add(user);
   }
 
@@ -1506,6 +1498,18 @@ class ClientState {
     _channelsController.add(newChannels);
   }
 
+  void _computeUnreadCounts(OwnUser? user) {
+    final totalUnreadCount = user?.totalUnreadCount;
+    if (totalUnreadCount != null) {
+      _totalUnreadCountController.add(totalUnreadCount);
+    }
+
+    final unreadChannels = user?.unreadChannels;
+    if (unreadChannels != null) {
+      _unreadChannelsController.add(unreadChannels);
+    }
+  }
+
   final _channelsController = BehaviorSubject<Map<String, Channel>>.seeded({});
   final _currentUserController = BehaviorSubject<OwnUser?>();
   final _usersController = BehaviorSubject<Map<String, User>>.seeded({});
diff --git a/packages/stream_chat/lib/src/core/models/own_user.dart b/packages/stream_chat/lib/src/core/models/own_user.dart
index a65052f4..07c6cf30 100644
--- a/packages/stream_chat/lib/src/core/models/own_user.dart
+++ b/packages/stream_chat/lib/src/core/models/own_user.dart
@@ -17,7 +17,7 @@ class OwnUser extends User {
     this.devices = const [],
     this.mutes = const [],
     this.totalUnreadCount = 0,
-    this.unreadChannels,
+    this.unreadChannels = 0,
     this.channelMutes = const [],
     required String id,
     String? role,
@@ -151,8 +151,8 @@ class OwnUser extends User {
   final int totalUnreadCount;
 
   /// Total unread channels by the user.
-  @JsonKey(includeIfNull: false)
-  final int? unreadChannels;
+  @JsonKey(includeIfNull: false, defaultValue: 0)
+  final int unreadChannels;
 
   /// Known top level fields.
   ///
diff --git a/packages/stream_chat/lib/src/core/models/own_user.g.dart b/packages/stream_chat/lib/src/core/models/own_user.g.dart
index ca4acdea..185b6dd0 100644
--- a/packages/stream_chat/lib/src/core/models/own_user.g.dart
+++ b/packages/stream_chat/lib/src/core/models/own_user.g.dart
@@ -17,7 +17,7 @@ OwnUser _$OwnUserFromJson(Map<String, dynamic> json) {
             .toList() ??
         [],
     totalUnreadCount: json['total_unread_count'] as int? ?? 0,
-    unreadChannels: json['unread_channels'] as int?,
+    unreadChannels: json['unread_channels'] as int? ?? 0,
     channelMutes: (json['channel_mutes'] as List<dynamic>?)
             ?.map((e) => Mute.fromJson(e as Map<String, dynamic>))
             .toList() ??
diff --git a/packages/stream_chat/test/src/client/client_test.dart b/packages/stream_chat/test/src/client/client_test.dart
index a1a3fc96..b59faa38 100644
--- a/packages/stream_chat/test/src/client/client_test.dart
+++ b/packages/stream_chat/test/src/client/client_test.dart
@@ -2313,5 +2313,27 @@ void main() {
           )).called(1);
       verifyNoMoreInteractions(api.message);
     });
+
+    test(
+      '''setting the `currentUser` should also compute and update the unreadCounts''',
+      () {
+        final state = client.state;
+        final initialUser = OwnUser.fromUser(user);
+
+        expect(state.currentUser, initialUser);
+        expect(state.totalUnreadCount, 0);
+        expect(state.unreadChannels, 0);
+
+        final updateUser = initialUser.copyWith(
+          totalUnreadCount: 33,
+          unreadChannels: 33,
+        );
+        state.currentUser = updateUser;
+
+        expect(state.currentUser, updateUser);
+        expect(state.totalUnreadCount, 33);
+        expect(state.unreadChannels, 33);
+      },
+    );
   });
 }