diff --git a/client/src/components/chat/chatArea/MessagesArea.tsx b/client/src/components/chat/chatArea/MessagesArea.tsx
index f83dd5b..d157296 100644
--- a/client/src/components/chat/chatArea/MessagesArea.tsx
+++ b/client/src/components/chat/chatArea/MessagesArea.tsx
@@ -27,7 +27,6 @@ function MessagesArea() {
   const previousMessagesLength = useRef(messages.length);
   const isFocused = useWindowFocus();
   const previousTitle = useRef(document.title);
-
   const scrollToBottom = () => {
     const container = containerRef.current;
     if (container && shouldScrollToBottom) {
@@ -132,6 +131,7 @@ function MessagesArea() {
                 last_message_id: msg.message_id,
                 last_message_sender: msg.sender,
                 last_message_time: new Date().toString(),
+                last_read_message_id: prevContacts[0]?.last_message_id || null,
               },
             ];
           }
@@ -211,7 +211,7 @@ function MessagesArea() {
     const timeout = setTimeout(() => {
       setContactsList((prevContacts) => {
         return prevContacts.map((contact) =>
-          contact.conversation_id === currentContact?.conversation_id
+          contact?.conversation_id === currentContact?.conversation_id
             ? {
                 ...contact,
                 read: true,
@@ -224,6 +224,19 @@ function MessagesArea() {
     return () => clearTimeout(timeout);
   }, [isFocused]);
 
+  useEffect(() => {
+    if (!socket) return;
+    if (currentContact?.read == true) return;
+    socket.emit('message read', {
+      conversation_id: currentContact?.conversation_id,
+      message_id: messages[messages?.length - 1].message_id,
+    });
+    console.info('MESSAGE READ: ', {
+      conversation_id: currentContact?.conversation_id,
+      message_id: messages[messages?.length - 1].message_id,
+    });
+  }, [isFocused]);
+
   useEffect(() => {
     const hasNewMessages = messages.length > previousMessagesLength.current;
     previousMessagesLength.current = messages.length;
@@ -241,6 +254,8 @@ function MessagesArea() {
 
   return (
     <div ref={containerRef} className="flex flex-col h-full overflow-y-auto">
+      <p>READ STATUS: {currentContact?.read ? <p>true</p> : <p>false</p>}</p>
+      <p>ISFOCUSED: {isFocused ? <p>tak</p> : <p>nie</p>}</p>
       <p className="text-center text-gray-400">{errorMessage}</p>
       <ul className="flex-grow list-none">
         {isLoading ? <LoadingWheel /> : null}
diff --git a/client/src/components/chat/chatHeader/AddGroupMember.tsx b/client/src/components/chat/chatHeader/AddGroupMember.tsx
index 5d7dd7b..454727f 100644
--- a/client/src/components/chat/chatHeader/AddGroupMember.tsx
+++ b/client/src/components/chat/chatHeader/AddGroupMember.tsx
@@ -134,7 +134,7 @@ function AddGroupMember() {
   return (
     <Dialog open={open} onOpenChange={setOpen}>
       <DialogTrigger asChild>
-        <button className="p-2 hover:bg-zinc-800 rounded-lg">
+        <button className="p-2 hover:bg-zinc-800 rounded-lg" title="Add member">
           <UserRoundPlus />
         </button>
       </DialogTrigger>
diff --git a/client/src/components/chat/chatHeader/CreateGroupButton.tsx b/client/src/components/chat/chatHeader/CreateGroupButton.tsx
index 1e906a8..fddbf31 100644
--- a/client/src/components/chat/chatHeader/CreateGroupButton.tsx
+++ b/client/src/components/chat/chatHeader/CreateGroupButton.tsx
@@ -47,7 +47,10 @@ function CreateGroupButton() {
   return (
     <Dialog open={open} onOpenChange={setOpen}>
       <DialogTrigger asChild>
-        <button className="p-2 hover:bg-zinc-800 rounded-lg">
+        <button
+          className="p-2 hover:bg-zinc-800 rounded-lg"
+          title="Create group"
+        >
           <Plus />
         </button>
       </DialogTrigger>
diff --git a/client/src/components/chat/leftSidebar/ContactsList.tsx b/client/src/components/chat/leftSidebar/ContactsList.tsx
index a5876b4..c71f234 100644
--- a/client/src/components/chat/leftSidebar/ContactsList.tsx
+++ b/client/src/components/chat/leftSidebar/ContactsList.tsx
@@ -48,6 +48,22 @@ function ContactsList() {
     };
   }, [socket]);
 
+  useEffect(() => {
+    contactsList.forEach((contact) => {
+      if (contact.last_message_id && contact.last_read_message_id) {
+        if (contact.last_message_id > contact.last_read_message_id) {
+          setContactsList((prevContacts) =>
+            prevContacts.map((prevContact) =>
+              prevContact.id === contact.id
+                ? { ...prevContact, read: false }
+                : prevContact,
+            ),
+          );
+        }
+      }
+    });
+  }, [contactsList]);
+
   const fetchContacts = async () => {
     console.log('Fetching contacts list');
     const response = await axiosClient.get(`/api/chat/contacts`);
diff --git a/client/src/context/chat/ChatProvider.tsx b/client/src/context/chat/ChatProvider.tsx
index 60150b6..bddd7f2 100644
--- a/client/src/context/chat/ChatProvider.tsx
+++ b/client/src/context/chat/ChatProvider.tsx
@@ -23,7 +23,7 @@ export const ChatProvider = ({ children }: { children: ReactNode }) => {
   async function initializeContact(newContact: ContactsProps) {
     setMessages([]); // Clear messages from previous contact
     localStorage.setItem('contact', JSON.stringify(newContact)); // Set current contact in localstorage
-    setCurrentContact(newContact);
+    setCurrentContact({ ...newContact, read: true });
     console.log('Initialized contact: ', newContact);
     try {
       const joinResult = await joinRoom(newContact.conversation_id);
diff --git a/client/src/types/types.ts b/client/src/types/types.ts
index 7cfbfe5..8e5c861 100644
--- a/client/src/types/types.ts
+++ b/client/src/types/types.ts
@@ -26,6 +26,7 @@ export type ContactsProps = {
   last_message_id: number | null;
   last_message_time: string | null;
   last_message_sender: string | null;
+  last_read_message_id: number | null;
 };
 
 export type ParticipantsProps = {
diff --git a/server/db/db.js b/server/db/db.js
index c2bed08..534ae4d 100644
--- a/server/db/db.js
+++ b/server/db/db.js
@@ -86,6 +86,7 @@ async function createTables() {
         conversation_id UUID NOT NULL REFERENCES Conversations(conversation_id) ON DELETE CASCADE,
         user_id UUID REFERENCES Accounts(user_id) ON DELETE CASCADE,
         joined_at TIMESTAMPTZ DEFAULT NOW(),
+        last_read_message_id INT REFERENCES Messages(message_id) ON DELETE SET NULL,
         PRIMARY KEY (conversation_id, user_id)
       );
       CREATE INDEX IF NOT EXISTS idx_memberships_conversation_id ON Memberships (conversation_id);
@@ -100,7 +101,6 @@ async function createTables() {
         contact_id SERIAL PRIMARY KEY,
         user_id UUID REFERENCES Accounts(user_id) ON DELETE CASCADE,
         conversation_id UUID NOT NULL REFERENCES Conversations(conversation_id) ON DELETE CASCADE,
-        read BOOLEAN NOT NULL DEFAULT FALSE,
         last_active TIMESTAMPTZ DEFAULT NOW(),
         CONSTRAINT unique_contact UNIQUE (user_id, conversation_id)
       );
@@ -237,6 +237,8 @@ async function insertMessage(
       attachmentUrls,
     ]);
     updateConversationLastActive(conversation_id, senderId);
+    updateContactStatus(senderId, conversation_id, result.rows[0].message_id);
+
     return result.rows[0];
   } catch (e) {
     console.error("Failed to insert message ", e);
@@ -473,10 +475,10 @@ async function changePassword(username, newPasswordHash) {
   }
 }
 
-async function insertContactById(senderId, conversation_id, read) {
+async function insertContactById(senderId, conversation_id) {
   // First check if contact already exists
   const checkQuery = `
-    SELECT contact_id, conversation_id, user_id, read, last_active 
+    SELECT contact_id, conversation_id, user_id, last_active 
     FROM Contacts 
     WHERE user_id = $1 AND conversation_id = $2
   `;
@@ -494,16 +496,12 @@ async function insertContactById(senderId, conversation_id, read) {
 
     // If contact doesn't exist, create new one
     const insertQuery = `
-      INSERT INTO Contacts (user_id, conversation_id, read)
-      VALUES($1, $2, $3)
-      RETURNING contact_id, conversation_id, user_id, read, last_active
+      INSERT INTO Contacts (user_id, conversation_id)
+      VALUES($1, $2)
+      RETURNING contact_id, conversation_id, user_id, last_active
     `;
 
-    const result = await client.query(insertQuery, [
-      senderId,
-      conversation_id,
-      read,
-    ]);
+    const result = await client.query(insertQuery, [senderId, conversation_id]);
     console.log("Insert contact by id:", senderId, conversation_id);
     return result.rows[0] || null;
   } catch (error) {
@@ -512,7 +510,7 @@ async function insertContactById(senderId, conversation_id, read) {
   }
 }
 
-async function insertContact(initiatorId, receiverId, contactUsername, read) {
+async function insertContact(initiatorId, receiverId, contactUsername) {
   try {
     let conversation_id;
 
@@ -625,7 +623,7 @@ async function insertContact(initiatorId, receiverId, contactUsername, read) {
     }
 
     // Insert the contact for the initiator
-    const contact = await insertContactById(initiatorId, conversation_id, read);
+    const contact = await insertContactById(initiatorId, conversation_id);
     if (!contact.contact_id) {
       console.error("Failed to insert contact by id");
       return null;
@@ -642,7 +640,6 @@ async function insertContact(initiatorId, receiverId, contactUsername, read) {
       last_active: contact.last_active,
       conversation_id: contact.conversation_id,
       type: "direct",
-      read: contact.read,
       last_message_id: latestMessage.last_message_id,
       last_message: latestMessage.last_message,
       last_message_time: latestMessage.last_message_time,
@@ -717,10 +714,10 @@ async function getContacts(user_id) {
         conv.last_active,
         c.conversation_id,
         conv.conversation_type AS type,
-        c.read
+        m.last_read_message_id
       FROM Contacts c
       JOIN Conversations conv ON c.conversation_id = conv.conversation_id
-      JOIN Memberships m ON m.conversation_id = c.conversation_id
+      JOIN Memberships m ON m.conversation_id = conv.conversation_id  
       JOIN Accounts a ON a.user_id = m.user_id
       WHERE c.user_id = $1
         AND conv.conversation_type = 'direct'
@@ -735,9 +732,10 @@ async function getContacts(user_id) {
         conv.last_active,
         c.conversation_id,
         conv.conversation_type AS type,
-        c.read
+        m.last_read_message_id  -- We need to add Memberships join here too
       FROM Contacts c
       JOIN Conversations conv ON c.conversation_id = conv.conversation_id
+      JOIN Memberships m ON m.conversation_id = conv.conversation_id  -- Added this JOIN
       WHERE c.user_id = $1
         AND conv.conversation_type = 'group'
       ORDER BY c.conversation_id, conv.last_active DESC
@@ -762,15 +760,14 @@ async function getContacts(user_id) {
           last_active: row.last_active,
           conversation_id: row.conversation_id,
           type: row.type,
-          read: row.read,
-          last_message_id: latestMessage.message_id,
+          last_read_message_id: row.last_read_message_id,
+          last_message_id: latestMessage.last_message_id,
           last_message: latestMessage.last_message,
           last_message_time: latestMessage.last_message_time,
           last_message_sender: latestMessage.last_message_sender,
         };
       }),
     );
-
     return contacts;
   } catch (error) {
     console.error("Failed to get contacts:", error);
@@ -864,23 +861,48 @@ async function deleteContact(user_id, conversation_id) {
   }
 }
 
-async function updateContactStatus(user_id, conversation_id, read) {
+async function updateContactStatus(
+  user_id,
+  conversation_id,
+  last_read_message_id,
+) {
   const query = `
-    UPDATE Contacts SET read = $1 
+    UPDATE Memberships 
+    SET last_read_message_id = $1
     WHERE user_id = $2
     AND conversation_id = $3;  
   `;
   try {
-    await client.query(query, [read, user_id, conversation_id]);
-    // await updateContactLastActive(user_id, conversation_id);
+    await client.query(query, [last_read_message_id, user_id, conversation_id]);
     console.log(
-      `Successfully updated contact status, user_id: ${user_id}, conversation_id: ${conversation_id}, read: ${read}: `,
+      `Successfully updated contact status, user_id: ${user_id}, conversation_id: ${conversation_id}, last_read_message_id: ${last_read_message_id}`,
     );
   } catch (e) {
     console.error("Failed to update contact status ", e);
   }
 }
 
+async function getLastReadMessageId(user_id, conversation_id) {
+  const query = `
+    SELECT last_read_message_id 
+    FROM Memberships 
+    WHERE user_id = $1 
+    AND conversation_id = $2;
+  `;
+  try {
+    const result = await client.query(query, [user_id, conversation_id]);
+    if (result.rows.length > 0) {
+      return result.rows[0].last_read_message_id;
+    } else {
+      console.log("No read message found for user in conversation");
+      return null;
+    }
+  } catch (e) {
+    console.error("Failed to get last read message ID ", e);
+    return null;
+  }
+}
+
 async function updateContactLastActive(user_id, contact_id) {
   const query = `
     UPDATE Contacts 
diff --git a/server/server.js b/server/server.js
index 3be4895..73daf24 100644
--- a/server/server.js
+++ b/server/server.js
@@ -247,7 +247,7 @@ app.put(
     }
 
     const read = req.body.status;
-    await updateContactStatus(req.user.user_id, conversation_id, read);
+    //await updateContactStatus(req.user.user_id, conversation_id, read);
 
     return res
       .status(200)
diff --git a/server/socket/socket.js b/server/socket/socket.js
index 329e5be..0516ea4 100644
--- a/server/socket/socket.js
+++ b/server/socket/socket.js
@@ -8,6 +8,7 @@ const {
   isAdmin,
   addAdministrator,
   removeAdministrator,
+  updateContactStatus,
 } = require("../db/db");
 const { isValidUsername } = require("../utils/filter");
 const { verifyJwtToken } = require("../auth/jwt");
@@ -342,6 +343,15 @@ function initializeSocket(io) {
       });
     });
 
+    socket.on("message read", async (msg) => {
+      const { conversation_id, message_id } = msg;
+      if (!conversation_id || !message_id) {
+        return;
+      }
+      console.error("MESSGE READ: ", conversation_id, message_id);
+      await updateContactStatus(socket.user_id, conversation_id, message_id);
+    });
+
     socket.on("disconnect", (reason) => {
       console.log("(socket)", socket.id, " disconnected due to: ", reason);
     });