diff --git a/web/components/Notifications/Indicator.vue b/web/components/Notifications/Indicator.vue
index 9012b8917..da64bb268 100644
--- a/web/components/Notifications/Indicator.vue
+++ b/web/components/Notifications/Indicator.vue
@@ -3,7 +3,7 @@ import { BellIcon, ExclamationTriangleIcon, ShieldExclamationIcon } from '@heroi
 import { cn } from '~/components/shadcn/utils';
 import { Importance, type OverviewQuery } from '~/composables/gql/graphql';
 
-const props = defineProps<{ overview?: OverviewQuery['notifications']['overview'], seen?: boolean }>();
+const props = defineProps<{ overview?: OverviewQuery['notifications']['overview']; seen?: boolean }>();
 
 const indicatorLevel = computed(() => {
   if (!props.overview?.unread) {
@@ -51,4 +51,4 @@ const icon = computed<{ component: Component; color: string } | null>(() => {
       :class="cn('absolute -top-1 -right-1 size-4 rounded-full', icon.color)"
     />
   </div>
-</template>
\ No newline at end of file
+</template>
diff --git a/web/components/Notifications/List.vue b/web/components/Notifications/List.vue
index 153a3a9f2..b63df6d00 100644
--- a/web/components/Notifications/List.vue
+++ b/web/components/Notifications/List.vue
@@ -2,6 +2,7 @@
 import { CheckIcon } from '@heroicons/vue/24/solid';
 import { useQuery } from '@vue/apollo-composable';
 import { vInfiniteScroll } from '@vueuse/components';
+import { useHaveSeenNotifications } from '~/composables/api/use-notifications';
 import { useFragment } from '~/composables/gql/fragment-masking';
 import type { Importance, NotificationType } from '~/composables/gql/graphql';
 import { useUnraidApiStore } from '~/store/unraidApi';
@@ -47,6 +48,21 @@ const notifications = computed(() => {
   return list.filter((n) => n.type === props.type);
 });
 
+// saves timestamp of latest visible notification to local storage
+const { latestSeenTimestamp } = useHaveSeenNotifications();
+watch(
+  notifications,
+  () => {
+    const [latest] = notifications.value;
+    if (!latest?.timestamp) return;
+    if (new Date(latest.timestamp) > new Date(latestSeenTimestamp.value)) {
+      console.log('[notif list] setting last seen timestamp', latest.timestamp);
+      latestSeenTimestamp.value = latest.timestamp;
+    }
+  },
+  { immediate: true }
+);
+
 async function onLoadMore() {
   console.log('[getNotifications] onLoadMore');
   const incoming = await fetchMore({
diff --git a/web/components/Notifications/Sidebar.vue b/web/components/Notifications/Sidebar.vue
index 0aa1443f0..4c5d713a6 100644
--- a/web/components/Notifications/Sidebar.vue
+++ b/web/components/Notifications/Sidebar.vue
@@ -2,6 +2,7 @@
 import { Button } from '@/components/shadcn/button';
 import { Sheet, SheetContent, SheetHeader, SheetTitle, SheetTrigger } from '@/components/shadcn/sheet';
 import { useMutation, useQuery, useSubscription } from '@vue/apollo-composable';
+import { useTrackLatestSeenNotification } from '~/composables/api/use-notifications';
 import { useFragment } from '~/composables/gql';
 // eslint-disable-next-line @typescript-eslint/consistent-type-imports -- false positive :(
 import { Importance, NotificationType } from '~/composables/gql/graphql';
@@ -37,12 +38,17 @@ const confirmAndDeleteArchives = async () => {
 const { result } = useQuery(notificationsOverview, null, {
   pollInterval: 2_000, // 2 seconds
 });
-
+const { latestNotificationTimestamp, haveSeenNotifications } = useTrackLatestSeenNotification();
 const { onResult: onNotificationAdded } = useSubscription(notificationAddedSubscription);
+
 onNotificationAdded(({ data }) => {
   if (!data) return;
   const notif = useFragment(NOTIFICATION_FRAGMENT, data.notificationAdded);
   if (notif.type !== NotificationType.Unread) return;
+
+  if (notif.timestamp) {
+    latestNotificationTimestamp.value = notif.timestamp;
+  }
   // probably smart to leave this log outside the if-block for the initial release
   console.log('incoming notification', notif);
   if (!globalThis.toast) {
@@ -78,32 +84,13 @@ const readArchivedCount = computed(() => {
   const { archive, unread } = overview.value;
   return Math.max(0, archive.total - unread.total);
 });
-
-/** whether user has viewed their notifications */
-const hasSeenNotifications = ref(false);
-
-// renews unseen state when new notifications arrive
-watch(
-  () => overview.value?.unread,
-  (newVal, oldVal) => {
-    if (!newVal || !oldVal) return;
-    if (newVal.total > oldVal.total) {
-      hasSeenNotifications.value = false;
-    }
-  }
-);
-
-const prepareToViewNotifications = () => {
-  determineTeleportTarget();
-  hasSeenNotifications.value = true;
-};
 </script>
 
 <template>
   <Sheet>
-    <SheetTrigger @click="prepareToViewNotifications">
+    <SheetTrigger @click="determineTeleportTarget">
       <span class="sr-only">Notifications</span>
-      <NotificationsIndicator :overview="overview" :seen="hasSeenNotifications" />
+      <NotificationsIndicator :overview="overview" :seen="haveSeenNotifications" />
     </SheetTrigger>
     <SheetContent
       :to="teleportTarget"
diff --git a/web/composables/api/use-notifications.ts b/web/composables/api/use-notifications.ts
new file mode 100644
index 000000000..bc32254ac
--- /dev/null
+++ b/web/composables/api/use-notifications.ts
@@ -0,0 +1,97 @@
+import { useQuery } from '@vue/apollo-composable';
+import { useStorage } from '@vueuse/core';
+import {
+  getNotifications,
+  NOTIFICATION_FRAGMENT,
+} from '~/components/Notifications/graphql/notification.query';
+import { useFragment } from '~/composables/gql/fragment-masking';
+import { NotificationType } from '../gql/graphql';
+
+const LATEST_SEEN_TIMESTAMP_KEY = 'latest-seen-notification-timestamp';
+const HAVE_SEEN_NOTIFICATIONS_KEY = 'have-seen-notifications';
+
+/**
+ * Composable for managing user's state of having seen notifications.
+ *
+ * Returns reactive references to two local-storage values:
+ *   - `latestSeenTimestamp`: timestamp of the latest notification that has been viewed.
+ *   - `haveSeenNotifications`: a boolean indicating whether the user has seen their notifications.
+ *
+ * Both properties are reactive refs and updating them will persist to local storage.
+ *
+ * `haveSeenNotifications` is considered derived-state and should not be modified directly, outside of
+ * related composables. Instead, update `latestSeenTimestamp` to affect global state.
+ */
+export function useHaveSeenNotifications() {
+  return {
+    /**
+     * Local-storage Timestamp of the latest notification that has been viewed.
+     * It should be modified externally, when user views their notifications.
+     *
+     * Writing this ref will persist to local storage and affect global state.
+     */
+    latestSeenTimestamp: useStorage(LATEST_SEEN_TIMESTAMP_KEY, new Date(0).toISOString()),
+    /**
+     * Local-storage global state of whether a user has seen their notifications.
+     * Consider this derived-state and avoid modifying this directly, outside of
+     * related composables.
+     *
+     * Writing this ref will persist to local storage and affect global state.
+     */
+    haveSeenNotifications: useStorage<boolean>(HAVE_SEEN_NOTIFICATIONS_KEY, null),
+  };
+}
+
+export function useTrackLatestSeenNotification() {
+  const { latestSeenTimestamp, haveSeenNotifications } = useHaveSeenNotifications();
+  const { result: latestNotifications } = useQuery(getNotifications, () => ({
+    filter: {
+      offset: 0,
+      limit: 1,
+      type: NotificationType.Unread,
+    },
+  }));
+  const latestNotification = computed(() => {
+    const list = latestNotifications.value?.notifications.list;
+    if (!list) return;
+    const [notification] = useFragment(NOTIFICATION_FRAGMENT, list);
+    return notification;
+  });
+
+  // initialize timestamp of latest notification
+  const latestNotificationTimestamp = ref<string | null>();
+  const stopLatestInit = watchOnce(latestNotification, () => {
+    latestNotificationTimestamp.value = latestNotification.value?.timestamp;
+  });
+  // prevent memory leak in edge case
+  onUnmounted(() => stopLatestInit());
+
+  const isBeforeLastSeen = (timestamp?: string | null) =>
+    new Date(timestamp ?? '0') <= new Date(latestSeenTimestamp.value);
+
+  // derive haveSeenNotifications by comparing last seen's timestamp to latest's timestamp
+  watchEffect(() => {
+    if (!latestNotificationTimestamp.value) {
+      return;
+    }
+    haveSeenNotifications.value = isBeforeLastSeen(latestNotificationTimestamp.value);
+    console.log('[use-notifications] set haveSeenNotifications to', haveSeenNotifications.value);
+  });
+
+  return {
+    /**
+     * In-memory timestamp of the latest notification in the system.
+     * Loaded automatically upon init, but not explicitly tracked.
+     *
+     * It is safe/expected to mutate this ref from other events, such as incoming notifications.
+     * This will cause re-computation of `haveSeenNotifications` state.
+     */
+    latestNotificationTimestamp,
+    /**
+     * Derived state of whether a user has seen their notifications. Avoid mutating directly.
+     *
+     * Writing this ref will persist to local storage and affect global state.
+     */
+    haveSeenNotifications,
+  };
+}