diff --git a/indra/newview/app_settings/settings.xml b/indra/newview/app_settings/settings.xml
index a943565fb..403c612c4 100644
--- a/indra/newview/app_settings/settings.xml
+++ b/indra/newview/app_settings/settings.xml
@@ -977,6 +977,17 @@ This should be as low as possible, but too low may break functionality</string>
       <key>Value</key>
       <boolean>0</boolean>
     </map>
+    <key>NewIMsPerConversationReset</key>
+    <map>
+      <key>Comment</key>
+      <string>When NewIMsPerConversation is on, this determines when the New IMs button becomes visible while the communicate floater is closed.  True will wait until a new IM is received, false displays as long as a conversation is unread.</string>
+      <key>Persist</key>
+      <integer>1</integer>
+      <key>Type</key>
+      <string>Boolean</string>
+      <key>Value</key>
+      <boolean>1</boolean>
+    </map>
     <key>ResetFocusOnSelfClick</key>
 		<map>
 		<key>Comment</key>
diff --git a/indra/newview/lloverlaybar.cpp b/indra/newview/lloverlaybar.cpp
index c43dfb42e..9bbf00567 100644
--- a/indra/newview/lloverlaybar.cpp
+++ b/indra/newview/lloverlaybar.cpp
@@ -294,19 +294,19 @@ void LLOverlayBar::refresh()
 {
 	bool buttons_changed = FALSE;
 
-	int count(0);
+	int unread_count(gIMMgr->getIMUnreadCount());
 	static const LLCachedControl<bool> per_conversation("NewIMsPerConversation");
-	if (per_conversation && !LLFloaterChatterBox::instanceVisible())
+	static const LLCachedControl<bool> reset_count("NewIMsPerConversationReset");
+	if (per_conversation && (!reset_count || unread_count) && !LLFloaterChatterBox::instanceVisible())
 	{
+		unread_count = 0;
 		for(std::set<LLHandle<LLFloater> >::const_iterator it = gIMMgr->getIMFloaterHandles().begin(); it != gIMMgr->getIMFloaterHandles().end(); ++it)
 			if (LLFloaterIMPanel* im_floater = static_cast<LLFloaterIMPanel*>(it->get()))
 				if (im_floater->getParent() != gFloaterView && im_floater->getNumUnreadMessages()) // Only count docked IMs
-					++count;
+					++unread_count;
 	}
-	if (LLButton* button = updateButtonVisiblity(mNewIM, per_conversation ? count : gIMMgr->getIMReceived()))
+	if (LLButton* button = updateButtonVisiblity(mNewIM, unread_count))
 	{
-		int unread_count(per_conversation ? count : gIMMgr->getIMUnreadCount());
-
 		if (unread_count > 0)
 		{
 			if (unread_count > 1)