diff --git a/packages/shared-components/src/i18n/strings/en_EN.json b/packages/shared-components/src/i18n/strings/en_EN.json
index 96e0f04531..a1d2276ba5 100644
--- a/packages/shared-components/src/i18n/strings/en_EN.json
+++ b/packages/shared-components/src/i18n/strings/en_EN.json
@@ -51,7 +51,8 @@
         "sort": "Sort",
         "sort_type": {
             "activity": "Activity",
-            "atoz": "A-Z"
+            "atoz": "A-Z",
+            "unread_first": "Unread first"
         },
         "space_menu": {
             "home": "Space home",
diff --git a/packages/shared-components/src/room-list/RoomListHeaderView/RoomListHeaderView.tsx b/packages/shared-components/src/room-list/RoomListHeaderView/RoomListHeaderView.tsx
index 4659625555..5da7cf8d37 100644
--- a/packages/shared-components/src/room-list/RoomListHeaderView/RoomListHeaderView.tsx
+++ b/packages/shared-components/src/room-list/RoomListHeaderView/RoomListHeaderView.tsx
@@ -19,7 +19,7 @@ import styles from "./RoomListHeaderView.module.css";
 /**
  * The available sorting options for the room list.
  */
-export type SortOption = "recent" | "alphabetical";
+export type SortOption = "recent" | "alphabetical" | "unread-first";
 
 export interface RoomListHeaderViewSnapshot {
     /**
diff --git a/packages/shared-components/src/room-list/RoomListHeaderView/menu/OptionMenuView.test.tsx b/packages/shared-components/src/room-list/RoomListHeaderView/menu/OptionMenuView.test.tsx
index f067c1db3b..83f0703c8a 100644
--- a/packages/shared-components/src/room-list/RoomListHeaderView/menu/OptionMenuView.test.tsx
+++ b/packages/shared-components/src/room-list/RoomListHeaderView/menu/OptionMenuView.test.tsx
@@ -36,6 +36,7 @@ describe("<OptionMenuView />", () => {
 
         expect(screen.getByRole("menuitemradio", { name: "A-Z" })).toBeChecked();
         expect(screen.getByRole("menuitemradio", { name: "Activity" })).not.toBeChecked();
+        expect(screen.getByRole("menuitemradio", { name: "Unread first" })).not.toBeChecked();
     });
 
     it("should show Activity selected if activeSortOption is recent", async () => {
@@ -49,9 +50,25 @@ describe("<OptionMenuView />", () => {
         await user.click(button);
 
         expect(screen.getByRole("menuitemradio", { name: "A-Z" })).not.toBeChecked();
+        expect(screen.getByRole("menuitemradio", { name: "Unread first" })).not.toBeChecked();
         expect(screen.getByRole("menuitemradio", { name: "Activity" })).toBeChecked();
     });
 
+    it("should show `Unread First` selected if activeSortOption is unread-first", async () => {
+        const user = userEvent.setup();
+
+        const vm = new MockedViewModel({ ...defaultSnapshot, activeSortOption: "unread-first" });
+        render(<OptionMenuView vm={vm} />);
+
+        // Open the menu
+        const button = screen.getByRole("button", { name: "Room Options" });
+        await user.click(button);
+
+        expect(screen.getByRole("menuitemradio", { name: "A-Z" })).not.toBeChecked();
+        expect(screen.getByRole("menuitemradio", { name: "Activity" })).not.toBeChecked();
+        expect(screen.getByRole("menuitemradio", { name: "Unread first" })).toBeChecked();
+    });
+
     it("should sort A to Z", async () => {
         const user = userEvent.setup();
 
@@ -78,6 +95,19 @@ describe("<OptionMenuView />", () => {
         expect(vm.sort).toHaveBeenCalledWith("recent");
     });
 
+    it("should sort by unread first", async () => {
+        const user = userEvent.setup();
+
+        const vm = new MockedViewModel({ ...defaultSnapshot, activeSortOption: "recent" });
+        render(<OptionMenuView vm={vm} />);
+
+        await user.click(screen.getByRole("button", { name: "Room Options" }));
+
+        await user.click(screen.getByRole("menuitemradio", { name: "Unread first" }));
+
+        expect(vm.sort).toHaveBeenCalledWith("unread-first");
+    });
+
     it("should toggle message preview", async () => {
         const user = userEvent.setup();
 
diff --git a/packages/shared-components/src/room-list/RoomListHeaderView/menu/OptionMenuView.tsx b/packages/shared-components/src/room-list/RoomListHeaderView/menu/OptionMenuView.tsx
index bf6a5d80c2..3509d841e4 100644
--- a/packages/shared-components/src/room-list/RoomListHeaderView/menu/OptionMenuView.tsx
+++ b/packages/shared-components/src/room-list/RoomListHeaderView/menu/OptionMenuView.tsx
@@ -60,6 +60,11 @@ export function OptionMenuView({ vm }: OptionMenuViewProps): JSX.Element {
                 checked={activeSortOption === "recent"}
                 onSelect={() => vm.sort("recent")}
             />
+            <RadioMenuItem
+                label={_t("room_list|sort_type|unread_first")}
+                checked={activeSortOption === "unread-first"}
+                onSelect={() => vm.sort("unread-first")}
+            />
             <RadioMenuItem
                 label={_t("room_list|sort_type|atoz")}
                 checked={activeSortOption === "alphabetical"}
diff --git a/src/viewmodels/room-list/RoomListHeaderViewModel.ts b/src/viewmodels/room-list/RoomListHeaderViewModel.ts
index 8d987b98e6..76e61504b5 100644
--- a/src/viewmodels/room-list/RoomListHeaderViewModel.ts
+++ b/src/viewmodels/room-list/RoomListHeaderViewModel.ts
@@ -170,7 +170,18 @@ export class RoomListHeaderViewModel
     };
 
     public sort = (option: SortOption): void => {
-        const sortingAlgorithm = option === "recent" ? SortingAlgorithm.Recency : SortingAlgorithm.Alphabetic;
+        let sortingAlgorithm: SortingAlgorithm;
+        switch (option) {
+            case "alphabetical":
+                sortingAlgorithm = SortingAlgorithm.Alphabetic;
+                break;
+            case "recent":
+                sortingAlgorithm = SortingAlgorithm.Recency;
+                break;
+            case "unread-first":
+                sortingAlgorithm = SortingAlgorithm.Unread;
+                break;
+        }
         RoomListStoreV3.instance.resort(sortingAlgorithm);
         this.snapshot.merge({ activeSortOption: option });
     };
@@ -192,8 +203,20 @@ export class RoomListHeaderViewModel
  */
 function getInitialSnapshot(spaceStore: SpaceStoreClass, matrixClient: MatrixClient): RoomListHeaderViewSnapshot {
     const sortingAlgorithm = SettingsStore.getValue("RoomList.preferredSorting");
-    const activeSortOption =
-        sortingAlgorithm === SortingAlgorithm.Recency ? ("recent" as const) : ("alphabetical" as const);
+
+    let activeSortOption: SortOption;
+    switch (sortingAlgorithm) {
+        case SortingAlgorithm.Alphabetic:
+            activeSortOption = "alphabetical";
+            break;
+        case SortingAlgorithm.Recency:
+            activeSortOption = "recent";
+            break;
+        case SortingAlgorithm.Unread:
+            activeSortOption = "unread-first";
+            break;
+    }
+
     const isMessagePreviewEnabled = SettingsStore.getValue("RoomList.showMessagePreview");
 
     return {
diff --git a/test/viewmodels/room-list/RoomListHeaderViewModel-test.ts b/test/viewmodels/room-list/RoomListHeaderViewModel-test.ts
index 3d6083bc36..ca96762fa8 100644
--- a/test/viewmodels/room-list/RoomListHeaderViewModel-test.ts
+++ b/test/viewmodels/room-list/RoomListHeaderViewModel-test.ts
@@ -271,6 +271,7 @@ describe("RoomListHeaderViewModel", () => {
         it.each([
             ["recent" as const, SortingAlgorithm.Recency],
             ["alphabetical" as const, SortingAlgorithm.Alphabetic],
+            ["unread-first" as const, SortingAlgorithm.Unread],
         ])("should resort when sort is called with '%s'", (option, expectedAlgorithm) => {
             const resortSpy = jest.spyOn(RoomListStoreV3.instance, "resort").mockImplementation(jest.fn());
             vm = new RoomListHeaderViewModel({ matrixClient, spaceStore: SpaceStore.instance });