diff --git a/src/components/ChannelList/ChannelList.tsx b/src/components/ChannelList/ChannelList.tsx
index b871ee298..8e791146a 100644
--- a/src/components/ChannelList/ChannelList.tsx
+++ b/src/components/ChannelList/ChannelList.tsx
@@ -5,11 +5,7 @@ import { ChannelListMessenger, ChannelListMessengerProps } from './ChannelListMe
 import { useConnectionRecoveredListener } from './hooks/useConnectionRecoveredListener';
 import { useMobileNavigation } from './hooks/useMobileNavigation';
 import { CustomQueryChannelsFn, usePaginatedChannels } from './hooks/usePaginatedChannels';
-import {
-  MAX_QUERY_CHANNELS_LIMIT,
-  moveChannelUpwards,
-  shouldConsiderPinnedChannels,
-} from './utils';
+import { MAX_QUERY_CHANNELS_LIMIT, moveChannelUpwards } from './utils';
 
 import { Avatar as DefaultAvatar } from '../Avatar';
 import { ChannelPreview, ChannelPreviewUIComponentProps } from '../ChannelPreview/ChannelPreview';
@@ -237,8 +233,7 @@ const UnMemoizedChannelList = <SCG extends DefaultStreamChatGenerics = DefaultSt
         const newChannels = moveChannelUpwards({
           channels,
           channelToMove: customActiveChannelObject,
-          // TODO: adjust acordingly (based on sort)
-          considerPinnedChannels: shouldConsiderPinnedChannels(sort),
+          sort,
         });
 
         setChannels(newChannels);
diff --git a/src/components/ChannelList/hooks/useChannelListShape.ts b/src/components/ChannelList/hooks/useChannelListShape.ts
index 812cefbaf..b05e28947 100644
--- a/src/components/ChannelList/hooks/useChannelListShape.ts
+++ b/src/components/ChannelList/hooks/useChannelListShape.ts
@@ -146,7 +146,7 @@ export const useChannelListShapeDefaults = <SCG extends ExtendableGenerics>() =>
             channels,
             channelToMove,
             channelToMoveIndexWithinChannels: targetChannelIndex,
-            considerPinnedChannels,
+            sort,
           });
         }
 
@@ -169,10 +169,9 @@ export const useChannelListShapeDefaults = <SCG extends ExtendableGenerics>() =>
         return customHandler(setChannels, event);
       }
 
-      const considerArchivedChannels = shouldConsiderArchivedChannels(filters);
-      const considerPinnedChannels = shouldConsiderPinnedChannels(sort);
-
-      if (!event.channel?.type) return;
+      if (!event.channel) {
+        return;
+      }
 
       const channel = await getChannel({
         client,
@@ -180,18 +179,21 @@ export const useChannelListShapeDefaults = <SCG extends ExtendableGenerics>() =>
         type: event.channel.type,
       });
 
+      const considerArchivedChannels = shouldConsiderArchivedChannels(filters);
       if (isChannelArchived(channel) && considerArchivedChannels) {
         return;
       }
 
-      if (!allowNewMessagesFromUnfilteredChannels) return;
+      if (!allowNewMessagesFromUnfilteredChannels) {
+        return;
+      }
 
       setChannels((channels) =>
         moveChannelUpwards({
           channels,
           channelToMove: channel,
           channelToMoveIndexWithinChannels: -1,
-          considerPinnedChannels,
+          sort,
         }),
       );
     },
@@ -249,32 +251,44 @@ export const useChannelListShapeDefaults = <SCG extends ExtendableGenerics>() =>
         return;
       }
 
+      const member = event.member;
       const channelType = event.channel_type;
       const channelId = event.channel_id;
 
       const considerPinnedChannels = shouldConsiderPinnedChannels(sort);
 
+      // TODO: extract this and consider single property sort object too
+      const pinnedAtSort = Array.isArray(sort) ? (sort[0]?.pinned_at ?? null) : null;
+
       setChannels((currentChannels) => {
         const targetChannel = client.channel(channelType, channelId);
         // assumes that channel instances are not changing
         const targetChannelIndex = currentChannels.indexOf(targetChannel);
         const targetChannelExistsWithinList = targetChannelIndex >= 0;
 
+        // handle pinning
+        if (!considerPinnedChannels || lockChannelOrder) return currentChannels;
+
         const newChannels = [...currentChannels];
 
         if (targetChannelExistsWithinList) {
           newChannels.splice(targetChannelIndex, 1);
         }
 
-        // handle archiving
-        if (typeof event.member?.archived_at === 'string') {
+        // handle archiving (remove channel)
+        if (typeof member.archived_at === 'string') {
           return newChannels;
         }
 
-        // handle pinning
-        if (!considerPinnedChannels || lockChannelOrder) return currentChannels;
+        let lastPinnedChannelIndex: number | null = null;
+
+        // calculate last pinned channel index only if `pinned_at` sort is set to
+        // ascending order or if it's in descending order while the pin is being removed, otherwise
+        // we move to the top (index 0)
+        if (pinnedAtSort === 1 || (pinnedAtSort === -1 && !member.pinned_at)) {
+          lastPinnedChannelIndex = findLastPinnedChannelIndex({ channels: newChannels });
+        }
 
-        const lastPinnedChannelIndex = findLastPinnedChannelIndex({ channels: newChannels });
         const newTargetChannelIndex =
           typeof lastPinnedChannelIndex === 'number' ? lastPinnedChannelIndex + 1 : 0;
 
diff --git a/src/components/ChannelList/utils.ts b/src/components/ChannelList/utils.ts
index 62c2669e7..7d533f8d8 100644
--- a/src/components/ChannelList/utils.ts
+++ b/src/components/ChannelList/utils.ts
@@ -1,5 +1,5 @@
 import uniqBy from 'lodash.uniqby';
-import type { Channel, ExtendableGenerics } from 'stream-chat';
+import type { Channel, ChannelSort, ExtendableGenerics } from 'stream-chat';
 
 import type { DefaultStreamChatGenerics } from '../../types/types';
 import type { ChannelListProps } from './ChannelList';
@@ -59,27 +59,24 @@ export function findLastPinnedChannelIndex<SCG extends ExtendableGenerics>({
 type MoveChannelUpwardsParams<SCG extends DefaultStreamChatGenerics = DefaultStreamChatGenerics> = {
   channels: Array<Channel<SCG>>;
   channelToMove: Channel<SCG>;
+  sort: ChannelSort<SCG>;
   /**
    * If the index of the channel within `channels` list which is being moved upwards
    * (`channelToMove`) is known, you can supply it to skip extra calculation.
    */
   channelToMoveIndexWithinChannels?: number;
-  /**
-   * Pinned channels should not move within the list based on recent activity, channels which
-   * receive messages and are not pinned should move upwards but only under the last pinned channel
-   * in the list. Property defaults to `false` and should be calculated based on existence of
-   * the `pinned_at` sort option.
-   */
-  considerPinnedChannels?: boolean;
 };
 
+/**
+ * This function should not be used to move pinned already channels.
+ */
 export const moveChannelUpwards = <
   SCG extends DefaultStreamChatGenerics = DefaultStreamChatGenerics,
 >({
   channels,
   channelToMove,
   channelToMoveIndexWithinChannels,
-  considerPinnedChannels = false,
+  sort,
 }: MoveChannelUpwardsParams<SCG>) => {
   // get index of channel to move up
   const targetChannelIndex =
@@ -89,14 +86,12 @@ export const moveChannelUpwards = <
   const targetChannelExistsWithinList = targetChannelIndex >= 0;
   const targetChannelAlreadyAtTheTop = targetChannelIndex === 0;
 
-  if (targetChannelAlreadyAtTheTop) return channels;
+  // pinned channels should not move within the list based on recent activity, channels which
+  // receive messages and are not pinned should move upwards but only under the last pinned channel
+  // in the list
+  const considerPinnedChannels = shouldConsiderPinnedChannels(sort);
 
-  // as position of pinned channels has to stay unchanged, we need to
-  // find last pinned channel in the list to move the target channel after
-  let lastPinnedChannelIndex: number | null = null;
-  if (considerPinnedChannels) {
-    lastPinnedChannelIndex = findLastPinnedChannelIndex({ channels });
-  }
+  if (targetChannelAlreadyAtTheTop) return channels;
 
   const newChannels = [...channels];
 
@@ -105,6 +100,13 @@ export const moveChannelUpwards = <
     newChannels.splice(targetChannelIndex, 1);
   }
 
+  // as position of pinned channels has to stay unchanged, we need to
+  // find last pinned channel in the list to move the target channel after
+  let lastPinnedChannelIndex: number | null = null;
+  if (considerPinnedChannels) {
+    lastPinnedChannelIndex = findLastPinnedChannelIndex({ channels: newChannels });
+  }
+
   // re-insert it at the new place (to specific index if pinned channels are considered)
   newChannels.splice(
     typeof lastPinnedChannelIndex === 'number' ? lastPinnedChannelIndex + 1 : 0,