diff --git a/CHANGELOG.md b/CHANGELOG.md
index 51b838951..3960b9776 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,7 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/).
 - Add extra data to user display info [#819](https://github.com/GetStream/stream-chat-swiftui/pull/819)
 ### 🐞 Fixed
 - Fix swipe to reply enabled when quoting a message is disabled [#824](https://github.com/GetStream/stream-chat-swiftui/pull/824)
+- Fix mark unread action not removed when read events are disabled [#823](https://github.com/GetStream/stream-chat-swiftui/pull/823)
 
 # [4.78.0](https://github.com/GetStream/stream-chat-swiftui/releases/tag/4.78.0)
 _April 24, 2025_
diff --git a/Sources/StreamChatSwiftUI/ChatChannel/Reactions/MessageActions/DefaultMessageActions.swift b/Sources/StreamChatSwiftUI/ChatChannel/Reactions/MessageActions/DefaultMessageActions.swift
index 8dc7cc287..8a0e9912d 100644
--- a/Sources/StreamChatSwiftUI/ChatChannel/Reactions/MessageActions/DefaultMessageActions.swift
+++ b/Sources/StreamChatSwiftUI/ChatChannel/Reactions/MessageActions/DefaultMessageActions.swift
@@ -131,7 +131,7 @@ public extension MessageAction {
                 )
                 messageActions.append(markThreadUnreadAction)
             }
-        } else if !message.isSentByCurrentUser {
+        } else if !message.isSentByCurrentUser && channel.canReceiveReadEvents {
             if !message.isPartOfThread || message.showReplyInChannel {
                 let markUnreadAction = markAsUnreadAction(
                     for: message,
diff --git a/StreamChatSwiftUITests/Tests/ChatChannel/MessageActionsViewModel_Tests.swift b/StreamChatSwiftUITests/Tests/ChatChannel/MessageActionsViewModel_Tests.swift
index 20e07d4d6..3daff5bf7 100644
--- a/StreamChatSwiftUITests/Tests/ChatChannel/MessageActionsViewModel_Tests.swift
+++ b/StreamChatSwiftUITests/Tests/ChatChannel/MessageActionsViewModel_Tests.swift
@@ -20,7 +20,7 @@ class MessageActionsViewModel_Tests: StreamChatTestCase {
                 text: "test",
                 author: .mock(id: .unique)
             ),
-            channel: .mockDMChannel(ownCapabilities: [.sendMessage, .uploadFile, .pinMessage]),
+            channel: .mockDMChannel(ownCapabilities: [.sendMessage, .uploadFile, .pinMessage, .readEvents]),
             chatClient: chatClient,
             onFinish: { _ in },
             onError: { _ in }
diff --git a/StreamChatSwiftUITests/Tests/ChatChannel/MessageActions_Tests.swift b/StreamChatSwiftUITests/Tests/ChatChannel/MessageActions_Tests.swift
index 83e10a087..fd474938b 100644
--- a/StreamChatSwiftUITests/Tests/ChatChannel/MessageActions_Tests.swift
+++ b/StreamChatSwiftUITests/Tests/ChatChannel/MessageActions_Tests.swift
@@ -72,7 +72,38 @@ class MessageActions_Tests: StreamChatTestCase {
         XCTAssert(messageActions[4].title == "Mark Unread")
         XCTAssert(messageActions[5].title == "Mute User")
     }
-    
+
+    func test_messageActions_otherUserDefaultReadEventsDisabled() {
+        // Given
+        let channel = ChatChannel.mockDMChannel(ownCapabilities: [.sendMessage, .uploadFile, .pinMessage])
+        let message = ChatMessage.mock(
+            id: .unique,
+            cid: channel.cid,
+            text: "Test",
+            author: .mock(id: .unique),
+            isSentByCurrentUser: false
+        )
+        let factory = DefaultViewFactory.shared
+
+        // When
+        let messageActions = MessageAction.defaultActions(
+            factory: factory,
+            for: message,
+            channel: channel,
+            chatClient: chatClient,
+            onFinish: { _ in },
+            onError: { _ in }
+        )
+
+        // Then
+        XCTAssert(messageActions.count == 5)
+        XCTAssert(messageActions[0].title == "Reply")
+        XCTAssert(messageActions[1].title == "Thread Reply")
+        XCTAssert(messageActions[2].title == "Pin to conversation")
+        XCTAssert(messageActions[3].title == "Copy Message")
+        XCTAssert(messageActions[4].title == "Mute User")
+    }
+
     func test_messageActions_otherUserDefaultBlockingEnabled() {
         // Given
         streamChat = StreamChat(
@@ -297,7 +328,7 @@ class MessageActions_Tests: StreamChatTestCase {
     
     private var mockDMChannel: ChatChannel {
         ChatChannel.mockDMChannel(
-            ownCapabilities: [.sendMessage, .uploadFile, .pinMessage]
+            ownCapabilities: [.sendMessage, .uploadFile, .pinMessage, .readEvents]
         )
     }
 }
diff --git a/StreamChatSwiftUITests/Tests/ChatChannel/ReactionsOverlayView_Tests.swift b/StreamChatSwiftUITests/Tests/ChatChannel/ReactionsOverlayView_Tests.swift
index 03c4f6dbd..7832063a2 100644
--- a/StreamChatSwiftUITests/Tests/ChatChannel/ReactionsOverlayView_Tests.swift
+++ b/StreamChatSwiftUITests/Tests/ChatChannel/ReactionsOverlayView_Tests.swift
@@ -136,7 +136,7 @@ class ReactionsOverlayView_Tests: StreamChatTestCase {
         let view = VerticallyCenteredView {
             ReactionsOverlayView(
                 factory: DefaultViewFactory.shared,
-                channel: .mockDMChannel(ownCapabilities: [.sendMessage, .uploadFile, .pinMessage]),
+                channel: .mockDMChannel(ownCapabilities: [.sendMessage, .uploadFile, .pinMessage, .readEvents]),
                 currentSnapshot: self.overlayImage,
                 messageDisplayInfo: messageDisplayInfo,
                 onBackgroundTap: {},