diff --git a/schema.graphql b/schema.graphql
index 183b9efacd..d5988df432 100644
--- a/schema.graphql
+++ b/schema.graphql
@@ -206,6 +206,7 @@ type Chat {
   messages: [ChatMessage]
   name: String
   organization: Organization
+  unseenMessagesByUsers: JSON
   updatedAt: DateTime!
   users: [User!]!
 }
@@ -1114,6 +1115,7 @@ type Mutation {
   likePost(id: ID!): Post
   login(data: LoginInput!): AuthData!
   logout: Boolean!
+  markChatMessagesAsRead(chatId: ID!, userId: ID!): Chat
   otp(data: OTPInput!): OtpData!
   recaptcha(data: RecaptchaVerification!): Boolean!
   refreshToken(refreshToken: String!): ExtendSession!
diff --git a/src/models/Chat.ts b/src/models/Chat.ts
index 813cd539d4..f5e989055c 100644
--- a/src/models/Chat.ts
+++ b/src/models/Chat.ts
@@ -20,6 +20,7 @@ export interface InterfaceChat {
   createdAt: Date;
   updatedAt: Date;
   lastMessageId: string;
+  unseenMessagesByUsers: JSON;
 }
 
 /**
@@ -98,9 +99,13 @@ const chatSchema = new Schema(
       type: String,
       required: false,
     },
+    unseenMessagesByUsers: {
+      type: JSON,
+      required: true,
+    },
   },
   {
-    timestamps: true,
+    timestamps: false,
   },
 );
 
diff --git a/src/resolvers/Mutation/createChat.ts b/src/resolvers/Mutation/createChat.ts
index 650707cb44..b273718137 100644
--- a/src/resolvers/Mutation/createChat.ts
+++ b/src/resolvers/Mutation/createChat.ts
@@ -36,10 +36,6 @@ export const createChat: MutationResolvers["createChat"] = async (
     }
   }
 
-  // const userExists = (await User.exists({
-  //   _id: { $in: args.data.userIds },
-  // })) as unknown as string[];
-
   const userExists = await User.find({
     _id: { $in: args.data.userIds },
   }).lean();
@@ -54,6 +50,13 @@ export const createChat: MutationResolvers["createChat"] = async (
 
   const now = new Date();
 
+  const unseenMessagesByUsers = JSON.stringify(
+    args.data.userIds.reduce((unseenMessages: Record<string, number>, user) => {
+      unseenMessages[user] = 0;
+      return unseenMessages;
+    }, {}),
+  );
+
   const chatPayload = args.data.isGroup
     ? {
         isGroup: args.data.isGroup,
@@ -65,6 +68,7 @@ export const createChat: MutationResolvers["createChat"] = async (
         createdAt: now,
         updatedAt: now,
         image: args.data.image,
+        unseenMessagesByUsers,
       }
     : {
         creatorId: context.userId,
@@ -72,6 +76,7 @@ export const createChat: MutationResolvers["createChat"] = async (
         isGroup: args.data.isGroup,
         createdAt: now,
         updatedAt: now,
+        unseenMessagesByUsers,
       };
 
   const createdChat = await Chat.create(chatPayload);
diff --git a/src/resolvers/Mutation/index.ts b/src/resolvers/Mutation/index.ts
index 4c6359e4b4..1a752fa8a2 100644
--- a/src/resolvers/Mutation/index.ts
+++ b/src/resolvers/Mutation/index.ts
@@ -85,6 +85,7 @@ import { revokeRefreshTokenForUser } from "./revokeRefreshTokenForUser";
 import { saveFcmToken } from "./saveFcmToken";
 import { sendMembershipRequest } from "./sendMembershipRequest";
 import { sendMessageToChat } from "./sendMessageToChat";
+import { markChatMessagesAsRead } from "./markChatMessagesAsRead";
 import { signUp } from "./signUp";
 import { togglePostPin } from "./togglePostPin";
 import { unassignUserTag } from "./unassignUserTag";
@@ -237,4 +238,5 @@ export const Mutation: MutationResolvers = {
   updateFundraisingCampaignPledge,
   createFundraisingCampaignPledge,
   removeFundraisingCampaignPledge,
+  markChatMessagesAsRead,
 };
diff --git a/src/resolvers/Mutation/markChatMessagesAsRead.ts b/src/resolvers/Mutation/markChatMessagesAsRead.ts
new file mode 100644
index 0000000000..dc5840dbab
--- /dev/null
+++ b/src/resolvers/Mutation/markChatMessagesAsRead.ts
@@ -0,0 +1,62 @@
+import type { MutationResolvers } from "../../types/generatedGraphQLTypes";
+import { errors, requestContext } from "../../libraries";
+import { Chat, User } from "../../models";
+import { CHAT_NOT_FOUND_ERROR, USER_NOT_FOUND_ERROR } from "../../constants";
+/**
+ /**
+ * This function marks all messages as read for the current user in a chat.
+ * @param _parent - parent of current request
+ * @param args - payload provided with the request
+ * @param context - context of entire application
+ * @remarks The following checks are done:
+ * 1. If the direct chat exists.
+ * 2. If the user exists
+ * @returns Updated chat object.
+ */
+export const markChatMessagesAsRead: MutationResolvers["markChatMessagesAsRead"] =
+  async (_parent, args, context) => {
+    const chat = await Chat.findOne({
+      _id: args.chatId,
+    }).lean();
+
+    if (!chat) {
+      throw new errors.NotFoundError(
+        requestContext.translate(CHAT_NOT_FOUND_ERROR.MESSAGE),
+        CHAT_NOT_FOUND_ERROR.CODE,
+        CHAT_NOT_FOUND_ERROR.PARAM,
+      );
+    }
+
+    const currentUserExists = await User.exists({
+      _id: context.userId,
+    }).lean();
+
+    if (!currentUserExists) {
+      throw new errors.NotFoundError(
+        requestContext.translate(USER_NOT_FOUND_ERROR.MESSAGE),
+        USER_NOT_FOUND_ERROR.CODE,
+        USER_NOT_FOUND_ERROR.PARAM,
+      );
+    }
+
+    const unseenMessagesByUsers = JSON.parse(
+      chat.unseenMessagesByUsers as unknown as string,
+    );
+
+    if (unseenMessagesByUsers[context.userId] !== undefined) {
+      unseenMessagesByUsers[context.userId] = 0;
+    }
+
+    const updatedChat = await Chat.findByIdAndUpdate(
+      {
+        _id: chat._id,
+      },
+      {
+        $set: {
+          unseenMessagesByUsers: JSON.stringify(unseenMessagesByUsers),
+        },
+      },
+    );
+
+    return updatedChat;
+  };
diff --git a/src/resolvers/Mutation/sendMessageToChat.ts b/src/resolvers/Mutation/sendMessageToChat.ts
index a5c7e83558..93668227e1 100644
--- a/src/resolvers/Mutation/sendMessageToChat.ts
+++ b/src/resolvers/Mutation/sendMessageToChat.ts
@@ -52,6 +52,17 @@ export const sendMessageToChat: MutationResolvers["sendMessageToChat"] = async (
     updatedAt: now,
   });
 
+  const unseenMessagesByUsers = JSON.parse(
+    chat.unseenMessagesByUsers as unknown as string,
+  );
+
+  Object.keys(unseenMessagesByUsers).map((user: string) => {
+    if (user !== context.userId) {
+      console.log("user", user, context.userId);
+      unseenMessagesByUsers[user] += 1;
+    }
+  });
+
   // add createdDirectChatMessage to directChat
   await Chat.updateOne(
     {
@@ -61,6 +72,10 @@ export const sendMessageToChat: MutationResolvers["sendMessageToChat"] = async (
       $push: {
         messages: createdChatMessage._id,
       },
+      $set: {
+        unseenMessagesByUsers: JSON.stringify(unseenMessagesByUsers),
+        updatedAt: now,
+      },
     },
   );
 
diff --git a/src/resolvers/Query/chatsByUserId.ts b/src/resolvers/Query/chatsByUserId.ts
index 57945ad2f6..ed11bedef0 100644
--- a/src/resolvers/Query/chatsByUserId.ts
+++ b/src/resolvers/Query/chatsByUserId.ts
@@ -1,5 +1,6 @@
 import type { QueryResolvers } from "../../types/generatedGraphQLTypes";
 import { Chat } from "../../models";
+import type { SortOrder } from "mongoose";
 /**
  * This query will fetch all the Chats for the current user from the database.
  * @param _parent-
@@ -13,11 +14,20 @@ export const chatsByUserId: QueryResolvers["chatsByUserId"] = async (
   _parent,
   args,
 ) => {
+  const sort = {
+    updatedAt: -1,
+  } as
+    | string
+    | { [key: string]: SortOrder | { $meta: unknown } }
+    | [string, SortOrder][]
+    | null
+    | undefined;
+
   const chats = await Chat.find({
     users: args.id,
-  }).lean();
-
-  console.log(chats);
+  })
+    .sort(sort)
+    .lean();
 
   return chats;
 };
diff --git a/src/typeDefs/mutations.ts b/src/typeDefs/mutations.ts
index b022b72be1..e9aacca0f3 100644
--- a/src/typeDefs/mutations.ts
+++ b/src/typeDefs/mutations.ts
@@ -250,6 +250,8 @@ export const mutations = gql`
       replyTo: ID
     ): ChatMessage! @auth
 
+    markChatMessagesAsRead(chatId: ID!, userId: ID!): Chat @auth
+
     signUp(data: UserInput!, file: String): AuthData!
 
     togglePostPin(id: ID!, title: String): Post! @auth
diff --git a/src/typeDefs/types.ts b/src/typeDefs/types.ts
index d6bf4952b7..55e28e1a11 100644
--- a/src/typeDefs/types.ts
+++ b/src/typeDefs/types.ts
@@ -742,6 +742,7 @@ export const types = gql`
     admins: [User]
     lastMessageId: String
     image: String
+    unseenMessagesByUsers: JSON
   }
 
   type ChatMessage {
diff --git a/src/types/generatedGraphQLTypes.ts b/src/types/generatedGraphQLTypes.ts
index 13e9ba20ba..680f458241 100644
--- a/src/types/generatedGraphQLTypes.ts
+++ b/src/types/generatedGraphQLTypes.ts
@@ -279,6 +279,7 @@ export type Chat = {
   messages?: Maybe<Array<Maybe<ChatMessage>>>;
   name?: Maybe<Scalars['String']['output']>;
   organization?: Maybe<Organization>;
+  unseenMessagesByUsers?: Maybe<Scalars['JSON']['output']>;
   updatedAt: Scalars['DateTime']['output'];
   users: Array<User>;
 };
@@ -1200,6 +1201,7 @@ export type Mutation = {
   likePost?: Maybe<Post>;
   login: AuthData;
   logout: Scalars['Boolean']['output'];
+  markChatMessagesAsRead?: Maybe<Chat>;
   otp: OtpData;
   recaptcha: Scalars['Boolean']['output'];
   refreshToken: ExtendSession;
@@ -1566,6 +1568,12 @@ export type MutationLoginArgs = {
 };
 
 
+export type MutationMarkChatMessagesAsReadArgs = {
+  chatId: Scalars['ID']['input'];
+  userId: Scalars['ID']['input'];
+};
+
+
 export type MutationOtpArgs = {
   data: OtpInput;
 };
@@ -3818,6 +3826,7 @@ export type ChatResolvers<ContextType = any, ParentType extends ResolversParentT
   messages?: Resolver<Maybe<Array<Maybe<ResolversTypes['ChatMessage']>>>, ParentType, ContextType>;
   name?: Resolver<Maybe<ResolversTypes['String']>, ParentType, ContextType>;
   organization?: Resolver<Maybe<ResolversTypes['Organization']>, ParentType, ContextType>;
+  unseenMessagesByUsers?: Resolver<Maybe<ResolversTypes['JSON']>, ParentType, ContextType>;
   updatedAt?: Resolver<ResolversTypes['DateTime'], ParentType, ContextType>;
   users?: Resolver<Array<ResolversTypes['User']>, ParentType, ContextType>;
   __isTypeOf?: IsTypeOfResolverFn<ParentType, ContextType>;
@@ -4278,6 +4287,7 @@ export type MutationResolvers<ContextType = any, ParentType extends ResolversPar
   likePost?: Resolver<Maybe<ResolversTypes['Post']>, ParentType, ContextType, RequireFields<MutationLikePostArgs, 'id'>>;
   login?: Resolver<ResolversTypes['AuthData'], ParentType, ContextType, RequireFields<MutationLoginArgs, 'data'>>;
   logout?: Resolver<ResolversTypes['Boolean'], ParentType, ContextType>;
+  markChatMessagesAsRead?: Resolver<Maybe<ResolversTypes['Chat']>, ParentType, ContextType, RequireFields<MutationMarkChatMessagesAsReadArgs, 'chatId' | 'userId'>>;
   otp?: Resolver<ResolversTypes['OtpData'], ParentType, ContextType, RequireFields<MutationOtpArgs, 'data'>>;
   recaptcha?: Resolver<ResolversTypes['Boolean'], ParentType, ContextType, RequireFields<MutationRecaptchaArgs, 'data'>>;
   refreshToken?: Resolver<ResolversTypes['ExtendSession'], ParentType, ContextType, RequireFields<MutationRefreshTokenArgs, 'refreshToken'>>;
diff --git a/tests/helpers/chat.ts b/tests/helpers/chat.ts
index b3fa7b468a..f748a7da7b 100644
--- a/tests/helpers/chat.ts
+++ b/tests/helpers/chat.ts
@@ -26,6 +26,9 @@ export const createTestChat = async (): Promise<
       createdAt: new Date(),
       updatedAt: new Date(),
       admins: [testUser._id],
+      unseenMessagesByUsers: JSON.stringify({
+        [testUser._id]: 0,
+      }),
     });
 
     return [testUser, testOrganization, testChat];
diff --git a/tests/resolvers/Mutation/markChatMessagesAsRead.spec.ts b/tests/resolvers/Mutation/markChatMessagesAsRead.spec.ts
new file mode 100644
index 0000000000..98ecbec727
--- /dev/null
+++ b/tests/resolvers/Mutation/markChatMessagesAsRead.spec.ts
@@ -0,0 +1,170 @@
+import "dotenv/config";
+import type { Document } from "mongoose";
+import type mongoose from "mongoose";
+import { Types } from "mongoose";
+import type { InterfaceChat } from "../../../src/models";
+import { User, Organization, Chat } from "../../../src/models";
+import type { MutationMarkChatMessagesAsReadArgs } from "../../../src/types/generatedGraphQLTypes";
+import { connect, disconnect } from "../../helpers/db";
+
+import {
+  CHAT_NOT_FOUND_ERROR,
+  USER_NOT_FOUND_ERROR,
+} from "../../../src/constants";
+import {
+  beforeAll,
+  afterAll,
+  afterEach,
+  describe,
+  it,
+  expect,
+  vi,
+} from "vitest";
+import { createTestUserFunc } from "../../helpers/user";
+import type { TestUserType } from "../../helpers/userAndOrg";
+
+let MONGOOSE_INSTANCE: typeof mongoose;
+let testUsers: TestUserType[];
+let testChat: InterfaceChat & Document<unknown, unknown, InterfaceChat>;
+
+beforeAll(async () => {
+  MONGOOSE_INSTANCE = await connect();
+  const tempUser1 = await createTestUserFunc();
+  const tempUser2 = await createTestUserFunc();
+  testUsers = [tempUser1, tempUser2];
+
+  const testOrganization = await Organization.create({
+    name: "name",
+    description: "description",
+    isPublic: true,
+    creatorId: testUsers[0]?._id,
+    admins: [testUsers[0]?._id],
+    members: [testUsers[0]?._id],
+    visibleInSearch: true,
+  });
+
+  await User.updateOne(
+    {
+      _id: testUsers[0]?._id,
+    },
+    {
+      $set: {
+        createdOrganizations: [testOrganization._id],
+        adminFor: [testOrganization._id],
+        joinedOrganizations: [testOrganization._id],
+      },
+    },
+  );
+
+  testChat = await Chat.create({
+    name: "Chat",
+    creatorId: testUsers[0]?._id,
+    organization: testOrganization._id,
+    users: [testUsers[0]?._id, testUsers[1]?._id],
+    isGroup: false,
+    createdAt: "23456789",
+    updatedAt: "23456789",
+    unseenMessagesByUsers: JSON.stringify({
+      [testUsers[0]?._id]: 0,
+      [testUsers[1]?._id]: 0,
+    }),
+  });
+});
+
+afterAll(async () => {
+  await disconnect(MONGOOSE_INSTANCE);
+});
+
+describe("resolvers -> Mutation -> markChatMessagesAsRead", () => {
+  afterEach(async () => {
+    vi.doUnmock("../../../src/constants");
+    vi.resetModules();
+  });
+
+  it(`throws NotFoundError if no directChat exists with _id === args.chatId`, async () => {
+    const { requestContext } = await import("../../../src/libraries");
+    const spy = vi
+      .spyOn(requestContext, "translate")
+      .mockImplementationOnce((message) => message);
+    try {
+      const args: MutationMarkChatMessagesAsReadArgs = {
+        chatId: new Types.ObjectId().toString(),
+        userId: testUsers[0]?._id.toString(),
+      };
+
+      const context = { userId: testUsers[0]?.id };
+
+      const { markChatMessagesAsRead: markChatMessagesAsReadResolver } =
+        await import("../../../src/resolvers/Mutation/markChatMessagesAsRead");
+
+      await markChatMessagesAsReadResolver?.({}, args, context);
+    } catch (error: unknown) {
+      expect(spy).toBeCalledWith(CHAT_NOT_FOUND_ERROR.MESSAGE);
+      expect((error as Error).message).toEqual(CHAT_NOT_FOUND_ERROR.MESSAGE);
+    }
+  });
+  it(`throws NotFoundError if current user with _id === context.userId does not exist`, async () => {
+    const { requestContext } = await import("../../../src/libraries");
+    const spy = vi
+      .spyOn(requestContext, "translate")
+      .mockImplementationOnce((message) => message);
+    try {
+      const args: MutationMarkChatMessagesAsReadArgs = {
+        chatId: testChat.id,
+        userId: testUsers[0]?.id,
+      };
+
+      const context = {
+        userId: new Types.ObjectId().toString(),
+      };
+
+      const { markChatMessagesAsRead: markChatMessagesAsReadResolver } =
+        await import("../../../src/resolvers/Mutation/markChatMessagesAsRead");
+
+      await markChatMessagesAsReadResolver?.({}, args, context);
+    } catch (error: unknown) {
+      expect(spy).toBeCalledWith(USER_NOT_FOUND_ERROR.MESSAGE);
+      expect((error as Error).message).toEqual(USER_NOT_FOUND_ERROR.MESSAGE);
+    }
+  });
+
+  it(`creates the directChatMessage and returns it`, async () => {
+    await Chat.updateOne(
+      {
+        _id: testChat._id,
+      },
+      {
+        $push: {
+          users: testUsers[0]?._id,
+        },
+      },
+    );
+
+    const args: MutationMarkChatMessagesAsReadArgs = {
+      chatId: testChat.id,
+      userId: testUsers[0]?.id,
+    };
+
+    const context = {
+      userId: testUsers[0]?.id,
+    };
+
+    const { markChatMessagesAsRead: markChatMessagesAsReadResolver } =
+      await import("../../../src/resolvers/Mutation/markChatMessagesAsRead");
+
+    const sendMessageToChatPayload = await markChatMessagesAsReadResolver?.(
+      {},
+      args,
+      context,
+    );
+
+    expect(sendMessageToChatPayload).toEqual(
+      expect.objectContaining({
+        unseenMessagesByUsers: JSON.stringify({
+          [testUsers[0]?._id]: 0,
+          [testUsers[1]?._id]: 0,
+        }),
+      }),
+    );
+  });
+});
diff --git a/tests/resolvers/Mutation/sendMessageToChat.spec.ts b/tests/resolvers/Mutation/sendMessageToChat.spec.ts
index ace1591c82..ec032b4d68 100644
--- a/tests/resolvers/Mutation/sendMessageToChat.spec.ts
+++ b/tests/resolvers/Mutation/sendMessageToChat.spec.ts
@@ -65,6 +65,10 @@ beforeAll(async () => {
     isGroup: false,
     createdAt: "23456789",
     updatedAt: "23456789",
+    unseenMessagesByUsers: JSON.stringify({
+      [testUsers[0]?._id]: 0,
+      [testUsers[1]?._id]: 0,
+    }),
   });
 });