diff --git a/CHANGELOG.md b/CHANGELOG.md
index a03bc8e7a17..afd8e1498a6 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -4,6 +4,7 @@
 - Shadowed messages are filtered. [#5234](https://github.com/GetStream/stream-chat-android/pull/5234)
 
 ### ⬆️ Improved
+- `Channel.lastMessageAt` is not updated when there is a new message within a thread. [#5245](https://github.com/GetStream/stream-chat-android/pull/5245)
 
 ### ✅ Added
 
@@ -59,6 +60,7 @@
 ### 🐞 Fixed
 
 ### ⬆️ Improved
+- Channel List is not updated with new messages within a thread. [#5245](https://github.com/GetStream/stream-chat-android/pull/5245)
 
 ### ✅ Added
 - Added a Button to jump to the first unread message in the channel. [#5236](https://github.com/GetStream/stream-chat-android/pull/5236)
@@ -72,6 +74,7 @@
 - Fixed `ChannelsState.isLoadingMore` being stuck. [#5239](https://github.com/GetStream/stream-chat-android/pull/5239)
 
 ### ⬆️ Improved
+- Channel List is not updated with new messages within a thread. [#5245](https://github.com/GetStream/stream-chat-android/pull/5245)
 
 ### ✅ Added
 
diff --git a/stream-chat-android-client/src/main/java/io/getstream/chat/android/client/extensions/internal/Channel.kt b/stream-chat-android-client/src/main/java/io/getstream/chat/android/client/extensions/internal/Channel.kt
index 60f6c6e2173..fabc958e776 100644
--- a/stream-chat-android-client/src/main/java/io/getstream/chat/android/client/extensions/internal/Channel.kt
+++ b/stream-chat-android-client/src/main/java/io/getstream/chat/android/client/extensions/internal/Channel.kt
@@ -76,7 +76,10 @@ public fun Channel.updateLastMessage(
             )
     }
     return this.copy(
-        lastMessageAt = newMessages.last().let { it.createdAt ?: it.createdLocallyAt },
+        lastMessageAt = newMessages
+            .filterNot { it.parentId != null && !it.showInChannel }
+            .last()
+            .let { it.createdAt ?: it.createdLocallyAt },
         messages = newMessages,
         read = newReads,
     ).syncUnreadCountWithReads()
diff --git a/stream-chat-android-core/src/main/java/io/getstream/chat/android/models/ChannelData.kt b/stream-chat-android-core/src/main/java/io/getstream/chat/android/models/ChannelData.kt
index 4edcf3afe7e..7eac7e9a8bf 100644
--- a/stream-chat-android-core/src/main/java/io/getstream/chat/android/models/ChannelData.kt
+++ b/stream-chat-android-core/src/main/java/io/getstream/chat/android/models/ChannelData.kt
@@ -130,6 +130,7 @@ public data class ChannelData(
             cooldown = cooldown,
             lastMessageAt = messagesList
                 .filterNot { it.shadowed }
+                .filterNot { it.parentId != null && !it.showInChannel }
                 .lastOrNull()
                 ?.let { it.createdAt ?: it.createdLocallyAt },
             createdBy = createdBy,
diff --git a/stream-chat-android-offline/src/main/java/io/getstream/chat/android/offline/repository/domain/channel/internal/DatabaseChannelRepository.kt b/stream-chat-android-offline/src/main/java/io/getstream/chat/android/offline/repository/domain/channel/internal/DatabaseChannelRepository.kt
index ae2eeec1612..0e0861557b7 100644
--- a/stream-chat-android-offline/src/main/java/io/getstream/chat/android/offline/repository/domain/channel/internal/DatabaseChannelRepository.kt
+++ b/stream-chat-android-offline/src/main/java/io/getstream/chat/android/offline/repository/domain/channel/internal/DatabaseChannelRepository.kt
@@ -222,7 +222,11 @@ internal class DatabaseChannelRepository(
             insertChannel(
                 it.copy(
                     messages = listOf(lastMessage),
-                    lastMessageAt = lastMessage.createdAt ?: lastMessage.createdLocallyAt ?: Date(0),
+                    lastMessageAt = it.lastMessageAt
+                        .takeIf { lastMessage.parentId != null && !lastMessage.showInChannel }
+                        ?: lastMessage.createdAt
+                        ?: lastMessage.createdLocallyAt
+                        ?: Date(0),
                 ),
             )
         }
@@ -242,7 +246,10 @@ internal class DatabaseChannelRepository(
             lastMessageAt = maxOf(
                 lastMessageAt,
                 cachedChannel.lastMessageAt,
-                messages.lastOrNull()?.let { it.createdAt ?: it.createdLocallyAt ?: Date(0) },
+                messages
+                    .filterNot { it.parentId != null && !it.showInChannel }
+                    .lastOrNull()
+                    ?.let { it.createdAt ?: it.createdLocallyAt ?: Date(0) },
             ),
             hiddenMessagesBefore = hideMessagesBefore,
             members = members,
diff --git a/stream-chat-android-offline/src/test/java/io/getstream/chat/android/offline/repository/domain/channel/internal/ChannelRepositoryImplTest.kt b/stream-chat-android-offline/src/test/java/io/getstream/chat/android/offline/repository/domain/channel/internal/ChannelRepositoryImplTest.kt
index 1d20e6ce5a3..ac9940391f7 100644
--- a/stream-chat-android-offline/src/test/java/io/getstream/chat/android/offline/repository/domain/channel/internal/ChannelRepositoryImplTest.kt
+++ b/stream-chat-android-offline/src/test/java/io/getstream/chat/android/offline/repository/domain/channel/internal/ChannelRepositoryImplTest.kt
@@ -68,7 +68,7 @@ internal class ChannelRepositoryImplTest {
     @Test
     fun `Given channel without messages in DB, Should insert channel with updated last message`() = runTest {
         val channel = randomChannel(messages = emptyList())
-        val lastMessage = randomMessage(createdAt = Date())
+        val lastMessage = randomMessage(createdAt = Date(), parentId = null)
         whenever(channelDao.select("cid")) doReturn channel.toEntity()
 
         channelRepository.updateLastMessageForChannel("cid", lastMessage)
@@ -89,8 +89,8 @@ internal class ChannelRepositoryImplTest {
     fun `Given channel with outdated lastMessage in DB, Should insert channel with updated last message`() = runTest {
         val before = Date(1000)
         val after = Date(2000)
-        val outdatedMessage = randomMessage(id = "messageId1", createdAt = before)
-        val newLastMessage = randomMessage(id = "messageId2", createdAt = after)
+        val outdatedMessage = randomMessage(id = "messageId1", createdAt = before, parentId = null)
+        val newLastMessage = randomMessage(id = "messageId2", createdAt = after, parentId = null)
         val channel = randomChannel(messages = listOf(outdatedMessage), lastMessageAt = before)
         whenever(channelDao.select(cid = "cid")) doReturn channel.toEntity()