diff --git a/src/stores/spaces/SpaceStore.ts b/src/stores/spaces/SpaceStore.ts
index e91b3c5a45c..69ded900483 100644
--- a/src/stores/spaces/SpaceStore.ts
+++ b/src/stores/spaces/SpaceStore.ts
@@ -193,35 +193,32 @@ export class SpaceStoreClass extends AsyncStoreWithClient<IState> {
         if (!isMetaSpace(space) && !this.matrixClient?.getRoom(space)?.isSpaceRoom()) return;
         if (space !== this.activeSpace) this.setActiveSpace(space, false);
 
-        if (space) {
-            const roomId = this.getNotificationState(space).getFirstRoomWithNotifications();
+        let roomId: string | undefined;
+        if (space === MetaSpace.Home && this.allRoomsInHome) {
+            const hasMentions = RoomNotificationStateStore.instance.globalState.hasMentions;
+            const lists = RoomListStore.instance.orderedLists;
+            tagLoop: for (let i = 0; i < TAG_ORDER.length; i++) {
+                const t = TAG_ORDER[i];
+                if (!lists[t]) continue;
+                for (const room of lists[t]) {
+                    const state = RoomNotificationStateStore.instance.getRoomState(room);
+                    if (hasMentions ? state.hasMentions : state.isUnread) {
+                        roomId = room.roomId;
+                        break tagLoop;
+                    }
+                }
+            }
+        } else {
+            roomId = this.getNotificationState(space).getFirstRoomWithNotifications();
+        }
+
+        if (!!roomId) {
             defaultDispatcher.dispatch<ViewRoomPayload>({
                 action: Action.ViewRoom,
                 room_id: roomId,
                 context_switch: true,
                 metricsTrigger: "WebSpacePanelNotificationBadge",
             });
-        } else {
-            const lists = RoomListStore.instance.orderedLists;
-            for (let i = 0; i < TAG_ORDER.length; i++) {
-                const t = TAG_ORDER[i];
-                const listRooms = lists[t];
-                const unreadRoom = listRooms.find((r: Room) => {
-                    if (this.showInHomeSpace(r)) {
-                        const state = RoomNotificationStateStore.instance.getRoomState(r);
-                        return state.isUnread;
-                    }
-                });
-                if (unreadRoom) {
-                    defaultDispatcher.dispatch<ViewRoomPayload>({
-                        action: Action.ViewRoom,
-                        room_id: unreadRoom.roomId,
-                        context_switch: true,
-                        metricsTrigger: "WebSpacePanelNotificationBadge",
-                    });
-                    break;
-                }
-            }
         }
     }
 
diff --git a/test/stores/SpaceStore-test.ts b/test/stores/SpaceStore-test.ts
index 2989ade34ea..c38100cf548 100644
--- a/test/stores/SpaceStore-test.ts
+++ b/test/stores/SpaceStore-test.ts
@@ -20,7 +20,7 @@ import { EventType } from "matrix-js-sdk/src/@types/event";
 import { RoomMember } from "matrix-js-sdk/src/models/room-member";
 import { RoomStateEvent } from "matrix-js-sdk/src/models/room-state";
 import { defer } from "matrix-js-sdk/src/utils";
-import { ClientEvent, RoomEvent, MatrixEvent, Room } from "matrix-js-sdk/src/matrix";
+import { ClientEvent, MatrixEvent, Room, RoomEvent } from "matrix-js-sdk/src/matrix";
 
 import SpaceStore from "../../src/stores/spaces/SpaceStore";
 import {
@@ -38,6 +38,10 @@ import SettingsStore from "../../src/settings/SettingsStore";
 import { SettingLevel } from "../../src/settings/SettingLevel";
 import { Action } from "../../src/dispatcher/actions";
 import { MatrixClientPeg } from "../../src/MatrixClientPeg";
+import RoomListStore from "../../src/stores/room-list/RoomListStore";
+import { DefaultTagID } from "../../src/stores/room-list/models";
+import { RoomNotificationStateStore } from "../../src/stores/notifications/RoomNotificationStateStore";
+import { NotificationColor } from "../../src/stores/notifications/NotificationColor";
 
 jest.useFakeTimers();
 
@@ -1452,4 +1456,29 @@ describe("SpaceStore", () => {
             expect(client.getVisibleRooms).not.toHaveBeenCalledWith();
         });
     });
+
+    describe("setActiveRoomInSpace", () => {
+        it("should work with Home as all rooms space", async () => {
+            const room = mkRoom(room1);
+            const state = RoomNotificationStateStore.instance.getRoomState(room);
+            // @ts-ignore
+            state._color = NotificationColor.Grey;
+            jest.spyOn(RoomListStore.instance, "orderedLists", "get").mockReturnValue({
+                [DefaultTagID.Untagged]: [room],
+            });
+
+            // init the store
+            await run();
+            await setShowAllRooms(true);
+
+            store.setActiveRoomInSpace(MetaSpace.Home);
+
+            expect(spyDispatcher).toHaveBeenCalledWith(
+                expect.objectContaining({
+                    action: "view_room",
+                    room_id: room.roomId,
+                }),
+            );
+        });
+    });
 });