diff --git a/app/javascript/dashboard/components-next/Contacts/ContactsForm/ContactMergeForm.vue b/app/javascript/dashboard/components-next/Contacts/ContactsForm/ContactMergeForm.vue
index 8adcce6b2..2cee66d12 100644
--- a/app/javascript/dashboard/components-next/Contacts/ContactsForm/ContactMergeForm.vue
+++ b/app/javascript/dashboard/components-next/Contacts/ContactsForm/ContactMergeForm.vue
@@ -50,6 +50,7 @@ const { t } = useI18n();
       </div>
       <ComboBox
         id="inbox"
+        use-api-results
         :model-value="primaryContactId"
         :options="primaryContactList"
         :empty-state="
diff --git a/app/javascript/dashboard/components-next/combobox/ComboBox.vue b/app/javascript/dashboard/components-next/combobox/ComboBox.vue
index de84974e6..8dbd00388 100644
--- a/app/javascript/dashboard/components-next/combobox/ComboBox.vue
+++ b/app/javascript/dashboard/components-next/combobox/ComboBox.vue
@@ -13,34 +13,14 @@ const props = defineProps({
     validator: value =>
       value.every(option => 'value' in option && 'label' in option),
   },
-  placeholder: {
-    type: String,
-    default: '',
-  },
-  modelValue: {
-    type: [String, Number],
-    default: '',
-  },
-  disabled: {
-    type: Boolean,
-    default: false,
-  },
-  searchPlaceholder: {
-    type: String,
-    default: '',
-  },
-  emptyState: {
-    type: String,
-    default: '',
-  },
-  message: {
-    type: String,
-    default: '',
-  },
-  hasError: {
-    type: Boolean,
-    default: false,
-  },
+  placeholder: { type: String, default: '' },
+  modelValue: { type: [String, Number], default: '' },
+  disabled: { type: Boolean, default: false },
+  searchPlaceholder: { type: String, default: '' },
+  emptyState: { type: String, default: '' },
+  message: { type: String, default: '' },
+  hasError: { type: Boolean, default: false },
+  useApiResults: { type: Boolean, default: false }, // useApiResults prop to determine if search is handled by API
 });
 
 const emit = defineEmits(['update:modelValue', 'search']);
@@ -54,6 +34,12 @@ const dropdownRef = ref(null);
 const comboboxRef = ref(null);
 
 const filteredOptions = computed(() => {
+  // For API search, don't filter options locally
+  if (props.useApiResults && search.value) {
+    return props.options;
+  }
+
+  // For local search, filter options based on search term
   const searchTerm = search.value.toLowerCase();
   return props.options.filter(option =>
     option.label.toLowerCase().includes(searchTerm)
diff --git a/app/javascript/dashboard/components/ChatList.vue b/app/javascript/dashboard/components/ChatList.vue
index 1d2ff5bd4..84f4635da 100644
--- a/app/javascript/dashboard/components/ChatList.vue
+++ b/app/javascript/dashboard/components/ChatList.vue
@@ -675,6 +675,15 @@ async function markAsUnread(conversationId) {
     // Ignore error
   }
 }
+async function markAsRead(conversationId) {
+  try {
+    await store.dispatch('markMessagesRead', {
+      id: conversationId,
+    });
+  } catch (error) {
+    // Ignore error
+  }
+}
 async function onAssignTeam(team, conversationId = null) {
   try {
     await store.dispatch('assignTeam', {
@@ -744,6 +753,7 @@ provide('assignLabels', onAssignLabels);
 provide('updateConversationStatus', toggleConversationStatus);
 provide('toggleContextMenu', onContextMenuToggle);
 provide('markAsUnread', markAsUnread);
+provide('markAsRead', markAsRead);
 provide('assignPriority', assignPriority);
 provide('isConversationSelected', isConversationSelected);
 
diff --git a/app/javascript/dashboard/components/ConversationItem.vue b/app/javascript/dashboard/components/ConversationItem.vue
index 27ba4c6d6..dcdf46e7e 100644
--- a/app/javascript/dashboard/components/ConversationItem.vue
+++ b/app/javascript/dashboard/components/ConversationItem.vue
@@ -13,6 +13,7 @@ export default {
     'updateConversationStatus',
     'toggleContextMenu',
     'markAsUnread',
+    'markAsRead',
     'assignPriority',
     'isConversationSelected',
   ],
@@ -64,6 +65,7 @@ export default {
     @update-conversation-status="updateConversationStatus"
     @context-menu-toggle="toggleContextMenu"
     @mark-as-unread="markAsUnread"
+    @mark-as-read="markAsRead"
     @assign-priority="assignPriority"
   />
 </template>
diff --git a/app/javascript/dashboard/components/widgets/conversation/ConversationCard.vue b/app/javascript/dashboard/components/widgets/conversation/ConversationCard.vue
index a5695b22c..690259a5e 100644
--- a/app/javascript/dashboard/components/widgets/conversation/ConversationCard.vue
+++ b/app/javascript/dashboard/components/widgets/conversation/ConversationCard.vue
@@ -75,6 +75,7 @@ export default {
     'assignLabel',
     'assignTeam',
     'markAsUnread',
+    'markAsRead',
     'assignPriority',
     'updateConversationStatus',
   ],
@@ -228,6 +229,10 @@ export default {
       this.$emit('markAsUnread', this.chat.id);
       this.closeContextMenu();
     },
+    async markAsRead() {
+      this.$emit('markAsRead', this.chat.id);
+      this.closeContextMenu();
+    },
     async assignPriority(priority) {
       this.$emit('assignPriority', priority, this.chat.id);
       this.closeContextMenu();
@@ -356,6 +361,7 @@ export default {
         @assign-label="onAssignLabel"
         @assign-team="onAssignTeam"
         @mark-as-unread="markAsUnread"
+        @mark-as-read="markAsRead"
         @assign-priority="assignPriority"
       />
     </ContextMenu>
diff --git a/app/javascript/dashboard/components/widgets/conversation/contextMenu/Index.vue b/app/javascript/dashboard/components/widgets/conversation/contextMenu/Index.vue
index 8778fc461..fccff3457 100644
--- a/app/javascript/dashboard/components/widgets/conversation/contextMenu/Index.vue
+++ b/app/javascript/dashboard/components/widgets/conversation/contextMenu/Index.vue
@@ -41,6 +41,7 @@ export default {
     'updateConversation',
     'assignPriority',
     'markAsUnread',
+    'markAsRead',
     'assignAgent',
     'assignTeam',
     'assignLabel',
@@ -48,6 +49,10 @@ export default {
   data() {
     return {
       STATUS_TYPE: wootConstants.STATUS_TYPE,
+      readOption: {
+        label: this.$t('CONVERSATION.CARD_CONTEXT_MENU.MARK_AS_READ'),
+        icon: 'mail',
+      },
       unreadOption: {
         label: this.$t('CONVERSATION.CARD_CONTEXT_MENU.MARK_AS_UNREAD'),
         icon: 'mail',
@@ -58,16 +63,16 @@ export default {
           label: this.$t('CONVERSATION.CARD_CONTEXT_MENU.RESOLVED'),
           icon: 'checkmark',
         },
-        {
-          key: wootConstants.STATUS_TYPE.PENDING,
-          label: this.$t('CONVERSATION.CARD_CONTEXT_MENU.PENDING'),
-          icon: 'book-clock',
-        },
         {
           key: wootConstants.STATUS_TYPE.OPEN,
           label: this.$t('CONVERSATION.CARD_CONTEXT_MENU.REOPEN'),
           icon: 'arrow-redo',
         },
+        {
+          key: wootConstants.STATUS_TYPE.PENDING,
+          label: this.$t('CONVERSATION.CARD_CONTEXT_MENU.PENDING'),
+          icon: 'book-clock',
+        },
       ],
       snoozeOption: {
         key: wootConstants.STATUS_TYPE.SNOOZED,
@@ -203,6 +208,13 @@ export default {
       variant="icon"
       @click.stop="$emit('markAsUnread')"
     />
+    <MenuItem
+      v-else
+      :option="readOption"
+      variant="icon"
+      @click.stop="$emit('markAsRead')"
+    />
+    <hr class="m-1 rounded border-b border-n-weak dark:border-n-weak" />
     <template v-for="option in statusMenuConfig">
       <MenuItem
         v-if="show(option.key)"
@@ -218,7 +230,7 @@ export default {
       variant="icon"
       @click.stop="snoozeConversation()"
     />
-
+    <hr class="m-1 rounded border-b border-n-weak dark:border-n-weak" />
     <MenuItemWithSubmenu :option="priorityConfig">
       <MenuItem
         v-for="(option, i) in priorityConfig.options"
diff --git a/app/javascript/dashboard/i18n/locale/en/conversation.json b/app/javascript/dashboard/i18n/locale/en/conversation.json
index 6afe57648..faa78c8a7 100644
--- a/app/javascript/dashboard/i18n/locale/en/conversation.json
+++ b/app/javascript/dashboard/i18n/locale/en/conversation.json
@@ -117,6 +117,7 @@
       "PENDING": "Mark as pending",
       "RESOLVED": "Mark as resolved",
       "MARK_AS_UNREAD": "Mark as unread",
+      "MARK_AS_READ": "Mark as read",
       "REOPEN": "Reopen conversation",
       "SNOOZE": {
         "TITLE": "Snooze",