diff --git a/.changeset/ten-penguins-roll.md b/.changeset/ten-penguins-roll.md
new file mode 100644
index 0000000000..60e0ae773a
--- /dev/null
+++ b/.changeset/ten-penguins-roll.md
@@ -0,0 +1,5 @@
+---
+'@backstage/plugin-notifications': patch
+---
+
+Allow setting notification as read when opening snackbar or web notification link
diff --git a/plugins/notifications/api-report.md b/plugins/notifications/api-report.md
index 9240bdb1c2..2547204c7b 100644
--- a/plugins/notifications/api-report.md
+++ b/plugins/notifications/api-report.md
@@ -103,6 +103,7 @@ export const NotificationsSidebarItem: (props?: {
   titleCounterEnabled?: boolean;
   snackbarEnabled?: boolean;
   snackbarAutoHideDuration?: number | null;
+  markAsReadOnLinkOpen?: boolean;
   className?: string;
   icon?: IconComponent;
   text?: string;
@@ -182,7 +183,10 @@ export function useTitleCounter(): {
 };
 
 // @public (undocumented)
-export function useWebNotifications(enabled: boolean): {
+export function useWebNotifications(
+  enabled: boolean,
+  markAsReadOnLinkOpen: boolean,
+): {
   sendWebNotification: (options: {
     id: string;
     title: string;
diff --git a/plugins/notifications/src/components/NotificationsSideBarItem/NotificationsSideBarItem.tsx b/plugins/notifications/src/components/NotificationsSideBarItem/NotificationsSideBarItem.tsx
index 7b55c63747..6e1f7c7d56 100644
--- a/plugins/notifications/src/components/NotificationsSideBarItem/NotificationsSideBarItem.tsx
+++ b/plugins/notifications/src/components/NotificationsSideBarItem/NotificationsSideBarItem.tsx
@@ -84,6 +84,7 @@ export const NotificationsSidebarItem = (props?: {
   titleCounterEnabled?: boolean;
   snackbarEnabled?: boolean;
   snackbarAutoHideDuration?: number | null;
+  markAsReadOnLinkOpen?: boolean;
   className?: string;
   icon?: IconComponent;
   text?: string;
@@ -95,6 +96,7 @@ export const NotificationsSidebarItem = (props?: {
     titleCounterEnabled = true,
     snackbarEnabled = true,
     snackbarAutoHideDuration = 10000,
+    markAsReadOnLinkOpen = false,
     icon = NotificationsIcon,
     text = 'Notifications',
     ...restProps
@@ -103,6 +105,7 @@ export const NotificationsSidebarItem = (props?: {
     titleCounterEnabled: true,
     snackbarEnabled: true,
     snackbarAutoHideDuration: 10000,
+    markAsReadOnLinkOpen: false,
   };
 
   const { loading, error, value, retry } = useNotificationsApi(api =>
@@ -114,7 +117,10 @@ export const NotificationsSidebarItem = (props?: {
   const notificationsRoute = useRouteRef(rootRouteRef);
   // TODO: Do we want to add long polling in case signals are not available
   const { lastSignal } = useSignal<NotificationSignal>('notifications');
-  const { sendWebNotification } = useWebNotifications(webNotificationsEnabled);
+  const { sendWebNotification } = useWebNotifications(
+    webNotificationsEnabled,
+    markAsReadOnLinkOpen,
+  );
   const [refresh, setRefresh] = React.useState(false);
   const { setNotificationCount } = useTitleCounter();
 
@@ -126,6 +132,19 @@ export const NotificationsSidebarItem = (props?: {
             component={Link}
             to={notification.payload.link ?? notificationsRoute()}
             onClick={() => {
+              if (markAsReadOnLinkOpen) {
+                notificationsApi
+                  .updateNotifications({
+                    ids: [notification.id],
+                    read: true,
+                  })
+                  .catch(() => {
+                    alertApi.post({
+                      message: 'Failed to mark notification as read',
+                      severity: 'error',
+                    });
+                  });
+              }
               closeSnackbar(snackBarId);
             }}
           >
@@ -156,7 +175,7 @@ export const NotificationsSidebarItem = (props?: {
 
       return { action };
     },
-    [notificationsRoute, notificationsApi, alertApi],
+    [notificationsRoute, markAsReadOnLinkOpen, notificationsApi, alertApi],
   );
 
   useEffect(() => {
diff --git a/plugins/notifications/src/hooks/useWebNotifications.ts b/plugins/notifications/src/hooks/useWebNotifications.ts
index 728d992130..92a0a9b806 100644
--- a/plugins/notifications/src/hooks/useWebNotifications.ts
+++ b/plugins/notifications/src/hooks/useWebNotifications.ts
@@ -15,14 +15,19 @@
  */
 import { useCallback, useEffect, useState } from 'react';
 import { rootRouteRef } from '../routes';
-import { useRouteRef } from '@backstage/core-plugin-api';
+import { useApi, useRouteRef } from '@backstage/core-plugin-api';
 import { useNavigate } from 'react-router-dom';
+import { notificationsApiRef } from '../api';
 
 /** @public */
-export function useWebNotifications(enabled: boolean) {
+export function useWebNotifications(
+  enabled: boolean,
+  markAsReadOnLinkOpen: boolean,
+) {
   const [webNotificationPermission, setWebNotificationPermission] =
     useState('default');
   const notificationsRoute = useRouteRef(rootRouteRef);
+  const notificationsApi = useApi(notificationsApiRef);
   const navigate = useNavigate();
 
   useEffect(() => {
@@ -57,6 +62,12 @@ export function useWebNotifications(enabled: boolean) {
         event.preventDefault();
         if (options.link) {
           window.open(options.link, '_blank');
+          if (markAsReadOnLinkOpen) {
+            notificationsApi.updateNotifications({
+              ids: [options.id],
+              read: true,
+            });
+          }
         } else {
           navigate(notificationsRoute());
         }
@@ -65,7 +76,13 @@ export function useWebNotifications(enabled: boolean) {
 
       return notification;
     },
-    [webNotificationPermission, navigate, notificationsRoute],
+    [
+      webNotificationPermission,
+      markAsReadOnLinkOpen,
+      notificationsApi,
+      navigate,
+      notificationsRoute,
+    ],
   );
 
   return { sendWebNotification };