diff --git a/app/components/UI/Notification/List/index.tsx b/app/components/UI/Notification/List/index.tsx
index 9afeab5b0a16..9e282e45e6ec 100644
--- a/app/components/UI/Notification/List/index.tsx
+++ b/app/components/UI/Notification/List/index.tsx
@@ -157,11 +157,11 @@ export function NotificationsListItem(props: NotificationsListItemProps) {
       style={tw`gap-2`}
     >
       <Box style={tw`flex-row gap-4`}>
-        <NotificationMenuItem.Icon
+        <NotificationMenuItem.Icon {...menuItemState} />
+        <NotificationMenuItem.Content
           isRead={props.notification.isRead}
           {...menuItemState}
         />
-        <NotificationMenuItem.Content {...menuItemState} />
       </Box>
     </NotificationMenuItem.Root>
   );
diff --git a/app/components/UI/Notification/NotificationMenuItem/Content.test.tsx b/app/components/UI/Notification/NotificationMenuItem/Content.test.tsx
index 870209563295..d1a39401a185 100644
--- a/app/components/UI/Notification/NotificationMenuItem/Content.test.tsx
+++ b/app/components/UI/Notification/NotificationMenuItem/Content.test.tsx
@@ -1,7 +1,7 @@
 import React from 'react';
 import renderWithProvider from '../../../../util/test/renderWithProvider';
 
-import NotificationContent from './Content';
+import NotificationContent, { TEST_IDS } from './Content';
 
 describe('NotificationContent', () => {
   const title = 'Welcome to the new Test!';
@@ -15,6 +15,7 @@ describe('NotificationContent', () => {
   it('renders title and description', () => {
     const { getByText } = renderWithProvider(
       <NotificationContent
+        isRead
         title={title}
         description={{
           start: description.start,
@@ -28,4 +29,32 @@ describe('NotificationContent', () => {
     expect(getByText(description.start)).toBeOnTheScreen();
     expect(getByText(description.end)).toBeOnTheScreen();
   });
+
+  it.each([
+    { isRead: false, visible: true },
+    { isRead: true, visible: false },
+  ])(
+    'renders unread indicator when isRead is $isRead',
+    ({ isRead, visible }) => {
+      const { queryByTestId } = renderWithProvider(
+        <NotificationContent
+          isRead={isRead}
+          title={title}
+          description={{
+            start: description.start,
+            end: description.end,
+          }}
+          createdAt={createdAt}
+        />,
+      );
+
+      const unreadBadge = queryByTestId(TEST_IDS.UNREAD_BADGE);
+
+      if (visible) {
+        expect(unreadBadge).toBeOnTheScreen();
+      } else {
+        expect(unreadBadge).not.toBeOnTheScreen();
+      }
+    },
+  );
 });
diff --git a/app/components/UI/Notification/NotificationMenuItem/Content.tsx b/app/components/UI/Notification/NotificationMenuItem/Content.tsx
index 65cb0882e782..966434f1419a 100644
--- a/app/components/UI/Notification/NotificationMenuItem/Content.tsx
+++ b/app/components/UI/Notification/NotificationMenuItem/Content.tsx
@@ -1,5 +1,10 @@
 import React from 'react';
 import { View } from 'react-native';
+import {
+  BadgeStatus,
+  BadgeStatusStatus,
+} from '@metamask/design-system-react-native';
+import { useTailwind } from '@metamask/design-system-twrnc-preset';
 import Text, {
   TextColor,
   TextVariant,
@@ -8,18 +13,23 @@ import { NotificationMenuItem } from '../../../../util/notifications/notificatio
 import useStyles from '../List/useStyles';
 import { formatMenuItemDate } from '../../../../util/notifications/methods';
 
+export const TEST_IDS = {
+  UNREAD_BADGE: 'notification-menu-item-content:unread-badge',
+};
+
 type NotificationContentProps = Pick<
   NotificationMenuItem,
   'title' | 'description' | 'createdAt'
->;
+> & { isRead: boolean };
 
 function NotificationContent(props: NotificationContentProps) {
   const { styles } = useStyles();
+  const tw = useTailwind();
 
   return (
     <View style={styles.containerFill}>
       {/* Section 1 - Title + Timestamp */}
-      <View style={styles.rowInsider}>
+      <View style={[styles.rowInsider, tw`items-center`]}>
         <Text
           color={TextColor.Alternative}
           variant={TextVariant.BodySM}
@@ -27,9 +37,18 @@ function NotificationContent(props: NotificationContentProps) {
         >
           {props.title}
         </Text>
-        <Text color={TextColor.Muted} variant={TextVariant.BodySM}>
-          {formatMenuItemDate(new Date(props.createdAt))}
-        </Text>
+        <View style={tw`flex-row items-center gap-1`}>
+          {!props.isRead && (
+            <BadgeStatus
+              status={BadgeStatusStatus.New}
+              testID={TEST_IDS.UNREAD_BADGE}
+              style={tw`self-center`}
+            />
+          )}
+          <Text color={TextColor.Muted} variant={TextVariant.BodySM}>
+            {formatMenuItemDate(new Date(props.createdAt))}
+          </Text>
+        </View>
       </View>
       {/* Section 2 - Left Desc + Right Desc */}
       <View style={styles.rowInsider}>
diff --git a/app/components/UI/Notification/NotificationMenuItem/Icon.test.tsx b/app/components/UI/Notification/NotificationMenuItem/Icon.test.tsx
index ec00bbfbe852..3bc045d7871f 100644
--- a/app/components/UI/Notification/NotificationMenuItem/Icon.test.tsx
+++ b/app/components/UI/Notification/NotificationMenuItem/Icon.test.tsx
@@ -30,7 +30,6 @@ describe('NotificationIcon', () => {
     ({ hasBadge, assertion }) => {
       const { getByTestId, queryByTestId } = renderWithProvider(
         <NotificationIcon
-          isRead={false}
           image={{ url: walletNotification.imageUrl.name }}
           badgeIcon={hasBadge ? walletNotification.badgeIcon : undefined}
         />,
diff --git a/app/components/UI/Notification/NotificationMenuItem/Icon.tsx b/app/components/UI/Notification/NotificationMenuItem/Icon.tsx
index 5d1638a3a0d0..79443e6b416e 100644
--- a/app/components/UI/Notification/NotificationMenuItem/Icon.tsx
+++ b/app/components/UI/Notification/NotificationMenuItem/Icon.tsx
@@ -1,11 +1,6 @@
 import { View } from 'react-native';
 import { Image } from 'expo-image';
-import {
-  BadgeIcon,
-  IconSize,
-  BadgeStatus,
-  BadgeStatusStatus,
-} from '@metamask/design-system-react-native';
+import { BadgeIcon, IconSize } from '@metamask/design-system-react-native';
 import { useTailwind } from '@metamask/design-system-twrnc-preset';
 import { NotificationMenuItem } from '../../../../util/notifications/notification-states/types/NotificationMenuItem';
 import React, {
@@ -24,10 +19,7 @@ export const TEST_IDS = {
   ICON: 'notification-menu-item-icon:icon',
 };
 
-type NotificationIconProps = Pick<
-  NotificationMenuItem,
-  'image' | 'badgeIcon'
-> & { isRead: boolean };
+type NotificationIconProps = Pick<NotificationMenuItem, 'image' | 'badgeIcon'>;
 
 function MenuIcon(props: NotificationIconProps) {
   const tw = useTailwind();
@@ -56,7 +48,6 @@ function MenuIcon(props: NotificationIconProps) {
 }
 
 function NotificationIcon(props: NotificationIconProps) {
-  const tw = useTailwind();
   const { styles } = useStyles();
 
   const MaybeBadgeContainer: FC<PropsWithChildren> = useCallback(
@@ -79,21 +70,11 @@ function NotificationIcon(props: NotificationIconProps) {
     [props.badgeIcon],
   );
 
-  const statusStyle = useMemo(
-    () => (props.isRead ? tw`self-center opacity-0` : tw`self-center`),
-    [props.isRead, tw],
-  );
-
   return (
-    <View>
-      <View style={tw`flex-row gap-1`}>
-        <BadgeStatus status={BadgeStatusStatus.New} style={statusStyle} />
-        <View style={styles.itemLogoSize} testID={TEST_IDS.CONTAINER}>
-          <MaybeBadgeContainer>
-            <MenuIcon {...props} />
-          </MaybeBadgeContainer>
-        </View>
-      </View>
+    <View style={styles.itemLogoSize} testID={TEST_IDS.CONTAINER}>
+      <MaybeBadgeContainer>
+        <MenuIcon {...props} />
+      </MaybeBadgeContainer>
     </View>
   );
 }