diff --git a/client/css/style.css b/client/css/style.css
index 9aead5b6..d17e82d6 100644
--- a/client/css/style.css
+++ b/client/css/style.css
@@ -679,6 +679,7 @@ button {
 #chat .show-more {
 	display: none;
 	padding: 10px;
+	padding-bottom: 0;
 	width: 100%;
 }
 
@@ -711,6 +712,17 @@ button {
 	word-wrap: break-word;
 }
 
+#chat .unread-marker span {
+	padding: 0;
+	height: 1px;
+	border-color: #455164;
+	background-color: #455164;
+}
+
+#chat .unread-marker:last-child {
+	display: none;
+}
+
 .inline-channel {
 	cursor: pointer;
 }
@@ -1625,10 +1637,6 @@ button {
 		padding: 2px 0;
 	}
 
-	#chat .msg:last-child {
-		height: auto;
-	}
-
 	#chat .time,
 	#chat .from,
 	#chat .text {
@@ -1636,6 +1644,16 @@ button {
 		display: inline;
 		padding: 0;
 	}
+
+	#chat .unread-marker .time,
+	#chat .unread-marker .from {
+		display: none;
+	}
+
+	#chat .unread-marker .text {
+		display: block;
+		width: 100%;
+	}
 }
 
 ::-webkit-scrollbar {
diff --git a/client/js/lounge.js b/client/js/lounge.js
index 47a990a7..b5347e06 100644
--- a/client/js/lounge.js
+++ b/client/js/lounge.js
@@ -285,7 +285,20 @@ $(function() {
 
 	function renderChannelMessages(data) {
 		var documentFragment = buildChannelMessages(data.id, data.messages);
-		chat.find("#chan-" + data.id + " .messages").append(documentFragment);
+		var channel = chat.find("#chan-" + data.id + " .messages").append(documentFragment);
+
+		if (data.firstUnread > 0) {
+			var first = channel.find("#msg-" + data.firstUnread);
+
+			// TODO: If the message is far off in the history, we still need to append the marker into DOM
+			if (!first.length) {
+				channel.prepend(render("unread_marker"));
+			} else {
+				first.before(render("unread_marker"));
+			}
+		} else {
+			channel.append(render("unread_marker"));
+		}
 	}
 
 	function renderChannelUsers(data) {
@@ -313,12 +326,20 @@ $(function() {
 	socket.on("msg", function(data) {
 		var msg = buildChatMessage(data);
 		var target = "#chan-" + data.chan;
-		chat.find(target + " .messages")
+		var container = chat.find(target + " .messages");
+
+		container
 			.append(msg)
 			.trigger("msg", [
 				target,
 				data.msg
 			]);
+
+		if (data.msg.self) {
+			container
+				.find(".unread-marker")
+				.appendTo(container);
+		}
 	});
 
 	socket.on("more", function(data) {
@@ -751,11 +772,17 @@ $(function() {
 		}
 
 		viewport.removeClass("lt");
-		$("#windows .active")
+		var lastActive = $("#windows .active");
+
+		lastActive
 			.removeClass("active")
 			.find(".chat")
 			.unsticky();
 
+		lastActive
+			.find(".unread-marker")
+			.appendTo(lastActive.find(".messages"));
+
 		var chan = $(target)
 			.addClass("active")
 			.trigger("show")
@@ -1029,14 +1056,14 @@ $(function() {
 	setInterval(function() {
 		chat.find(".chan:not(.active)").each(function() {
 			var chan = $(this);
-			if (chan.find(".messages").children().slice(0, -100).remove().length) {
+			if (chan.find(".messages .msg:not(.unread-marker)").slice(0, -100).remove().length) {
 				chan.find(".show-more").addClass("show");
 			}
 		});
 	}, 1000 * 10);
 
 	function clear() {
-		chat.find(".active .messages").empty();
+		chat.find(".active .messages .msg:not(.unread-marker)").remove();
 		chat.find(".active .show-more").addClass("show");
 	}
 
diff --git a/client/views/msg.tpl b/client/views/msg.tpl
index 10c79e24..65737198 100644
--- a/client/views/msg.tpl
+++ b/client/views/msg.tpl
@@ -1,4 +1,4 @@
-<div class="msg {{type}}{{#if self}} self{{/if}}{{#if highlight}} highlight{{/if}}">
+<div class="msg {{type}}{{#if self}} self{{/if}}{{#if highlight}} highlight{{/if}}" id="msg-{{id}}">
 	<span class="time">
 		{{tz time}}
 	</span>
diff --git a/client/views/msg_action.tpl b/client/views/msg_action.tpl
index 2eb1fe85..9b56fdad 100644
--- a/client/views/msg_action.tpl
+++ b/client/views/msg_action.tpl
@@ -1,4 +1,4 @@
-<div class="msg {{type}}{{#if self}} self{{/if}}{{#if highlight}} highlight{{/if}}">
+<div class="msg {{type}}{{#if self}} self{{/if}}{{#if highlight}} highlight{{/if}}" id="msg-{{id}}">
 	<span class="time">
 		{{tz time}}
 	</span>
diff --git a/client/views/unread_marker.tpl b/client/views/unread_marker.tpl
new file mode 100644
index 00000000..9e24bc63
--- /dev/null
+++ b/client/views/unread_marker.tpl
@@ -0,0 +1,5 @@
+<div class="msg unread-marker">
+	<span class="time"></span>
+	<span class="from"></span>
+	<span class="text"></span>
+</div>
diff --git a/src/client.js b/src/client.js
index 9bb3ea62..f1b64b56 100644
--- a/src/client.js
+++ b/src/client.js
@@ -361,6 +361,7 @@ Client.prototype.more = function(data) {
 Client.prototype.open = function(data) {
 	var target = this.find(data);
 	if (target) {
+		target.chan.firstUnread = 0;
 		target.chan.unread = 0;
 		target.chan.highlight = false;
 		this.activeChannel = target.chan.id;
diff --git a/src/models/chan.js b/src/models/chan.js
index f5481141..e64ac8ac 100644
--- a/src/models/chan.js
+++ b/src/models/chan.js
@@ -18,6 +18,7 @@ function Chan(attr) {
 		name: "",
 		topic: "",
 		type: Chan.Type.CHANNEL,
+		firstUnread: 0,
 		unread: 0,
 		highlight: false,
 		users: []
@@ -41,6 +42,16 @@ Chan.prototype.pushMessage = function(client, msg) {
 	if (Helper.config.maxHistory >= 0 && this.messages.length > Helper.config.maxHistory) {
 		this.messages.splice(0, this.messages.length - Helper.config.maxHistory);
 	}
+
+	if (!msg.self && this.id !== client.activeChannel) {
+		if (!this.firstUnread) {
+			this.firstUnread = msg.id;
+		}
+
+		if (msg.highlight) {
+			this.highlight = true;
+		}
+	}
 };
 
 Chan.prototype.sortUsers = function(irc) {
diff --git a/src/plugins/irc-events/message.js b/src/plugins/irc-events/message.js
index 98c7c52a..bd1b5291 100644
--- a/src/plugins/irc-events/message.js
+++ b/src/plugins/irc-events/message.js
@@ -72,10 +72,6 @@ module.exports = function(irc, network) {
 
 		if (!self && chan.id !== client.activeChannel) {
 			chan.unread++;
-
-			if (highlight) {
-				chan.highlight = true;
-			}
 		}
 
 		var msg = new Msg({