diff --git a/app/components/channel_list/categories/body/category_body.test.tsx b/app/components/channel_list/categories/body/category_body.test.tsx
index 220ac79ae..3a32e3bf2 100644
--- a/app/components/channel_list/categories/body/category_body.test.tsx
+++ b/app/components/channel_list/categories/body/category_body.test.tsx
@@ -36,6 +36,7 @@ describe('components/channel_list/categories/body', () => {
                 category={category}
                 locale={DEFAULT_LOCALE}
                 currentChannelId={''}
+                currentUserId={''}
             />,
             {database},
         );
diff --git a/app/components/channel_list/categories/body/category_body.tsx b/app/components/channel_list/categories/body/category_body.tsx
index 017475a9c..2961cf21f 100644
--- a/app/components/channel_list/categories/body/category_body.tsx
+++ b/app/components/channel_list/categories/body/category_body.tsx
@@ -11,19 +11,27 @@ import type CategoryModel from '@typings/database/models/servers/category';
 type Props = {
     currentChannelId: string;
     sortedIds: string[];
+    hiddenChannelIds: string[];
     category: CategoryModel;
     limit: number;
 };
 
 const extractKey = (item: string) => item;
 
-const CategoryBody = ({currentChannelId, sortedIds, category, limit}: Props) => {
+const CategoryBody = ({currentChannelId, sortedIds, category, hiddenChannelIds, limit}: Props) => {
     const ids = useMemo(() => {
-        if (category.type === 'direct_messages' && limit > 0) {
-            return sortedIds.slice(0, limit - 1);
+        let filteredIds = sortedIds;
+
+        // Remove all closed gm/dms
+        if (hiddenChannelIds.length) {
+            filteredIds = sortedIds.filter((id) => !hiddenChannelIds.includes(id));
         }
-        return sortedIds;
-    }, [category.type, limit]);
+
+        if (category.type === 'direct_messages' && limit > 0) {
+            return filteredIds.slice(0, limit - 1);
+        }
+        return filteredIds;
+    }, [category.type, limit, hiddenChannelIds]);
 
     const ChannelItem = useCallback(({item}: {item: string}) => {
         return (
diff --git a/app/components/channel_list/categories/body/index.ts b/app/components/channel_list/categories/body/index.ts
index 52cbde4e9..578e21a8b 100644
--- a/app/components/channel_list/categories/body/index.ts
+++ b/app/components/channel_list/categories/body/index.ts
@@ -8,15 +8,17 @@ import {combineLatest, of as of$} from 'rxjs';
 import {switchMap} from 'rxjs/operators';
 
 import {General, Preferences} from '@constants';
-import {queryMyChannelSettingsByIds} from '@queries/servers/channel';
+import {queryChannelsByNames, queryMyChannelSettingsByIds} from '@queries/servers/channel';
 import {queryPreferencesByCategoryAndName} from '@queries/servers/preference';
 import {WithDatabaseArgs} from '@typings/database/database';
+import {getDirectChannelName} from '@utils/channel';
 
 import CategoryBody from './category_body';
 
 import type CategoryModel from '@typings/database/models/servers/category';
 import type ChannelModel from '@typings/database/models/servers/channel';
 import type MyChannelSettingsModel from '@typings/database/models/servers/my_channel_settings';
+import type PreferenceModel from '@typings/database/models/servers/preference';
 
 type ChannelData = Pick<ChannelModel, 'id' | 'displayName'> & {
     isMuted: boolean;
@@ -77,23 +79,51 @@ const getSortedIds = (database: Database, category: CategoryModel, locale: strin
     }
 };
 
-const enhance = withObservables(['category'], ({category, locale, database}: {category: CategoryModel; locale: string} & WithDatabaseArgs) => {
+const mapPrefName = (prefs: PreferenceModel[]) => of$(prefs.map((p) => p.name));
+
+const mapChannelIds = (channels: ChannelModel[]) => of$(channels.map((c) => c.id));
+
+type EnhanceProps = {category: CategoryModel; locale: string; currentUserId: string} & WithDatabaseArgs
+
+const enhance = withObservables(['category'], ({category, locale, database, currentUserId}: EnhanceProps) => {
     const observedCategory = category.observe();
     const sortedIds = observedCategory.pipe(
         switchMap((c) => getSortedIds(database, c, locale)),
     );
 
-    let limit = of$(20);
+    const dmMap = (p: PreferenceModel) => getDirectChannelName(p.name, currentUserId);
+
+    const hiddenDmIds = queryPreferencesByCategoryAndName(database, Preferences.CATEGORY_DIRECT_CHANNEL_SHOW, undefined, 'false').
+        observe().pipe(
+            switchMap((prefs: PreferenceModel[]) => {
+                const names = prefs.map(dmMap);
+                const channels = queryChannelsByNames(database, names).observe();
+
+                return channels.pipe(
+                    switchMap(mapChannelIds),
+                );
+            }),
+        );
+
+    const hiddenGmIds = queryPreferencesByCategoryAndName(database, Preferences.CATEGORY_GROUP_CHANNEL_SHOW, undefined, 'false').
+        observe().pipe(switchMap(mapPrefName));
+
+    let limit = of$(Preferences.CHANNEL_SIDEBAR_LIMIT_DMS_DEFAULT);
     if (category.type === 'direct_messages') {
-        limit = queryPreferencesByCategoryAndName(database, Preferences.CATEGORY_SIDEBAR_SETTINGS, 'limit_visible_dms_gms').observe().pipe(
+        limit = queryPreferencesByCategoryAndName(database, Preferences.CATEGORY_SIDEBAR_SETTINGS, Preferences.CHANNEL_SIDEBAR_LIMIT_DMS).observe().pipe(
             switchMap((val) => {
-                return val[0] ? of$(parseInt(val[0].value, 10)) : of$(0);
+                return val[0] ? of$(parseInt(val[0].value, 10)) : of$(Preferences.CHANNEL_SIDEBAR_LIMIT_DMS_DEFAULT);
             }),
         );
     }
 
+    const hiddenChannelIds = combineLatest([hiddenDmIds, hiddenGmIds]).pipe(switchMap(
+        ([a, b]) => of$(a.concat(b)),
+    ));
+
     return {
         limit,
+        hiddenChannelIds,
         sortedIds,
         category: observedCategory,
     };
diff --git a/app/components/channel_list/categories/categories.tsx b/app/components/channel_list/categories/categories.tsx
index 406b12294..5718fd42b 100644
--- a/app/components/channel_list/categories/categories.tsx
+++ b/app/components/channel_list/categories/categories.tsx
@@ -14,6 +14,7 @@ import type {CategoryModel} from '@database/models/server';
 type Props = {
     categories: CategoryModel[];
     currentChannelId: string;
+    currentUserId: string;
 }
 
 const styles = StyleSheet.create({
@@ -24,8 +25,9 @@ const styles = StyleSheet.create({
 
 const extractKey = (item: CategoryModel) => item.id;
 
-const Categories = ({categories, currentChannelId}: Props) => {
+const Categories = ({categories, currentChannelId, currentUserId}: Props) => {
     const intl = useIntl();
+
     const renderCategory = useCallback((data: {item: CategoryModel}) => {
         return (
             <>
@@ -33,6 +35,7 @@ const Categories = ({categories, currentChannelId}: Props) => {
                 <CategoryBody
                     category={data.item}
                     currentChannelId={currentChannelId}
+                    currentUserId={currentUserId}
                     locale={intl.locale}
                 />
             </>
diff --git a/app/components/channel_list/categories/index.ts b/app/components/channel_list/categories/index.ts
index 3029ba123..7ee77ad1c 100644
--- a/app/components/channel_list/categories/index.ts
+++ b/app/components/channel_list/categories/index.ts
@@ -5,7 +5,7 @@ import {withDatabase} from '@nozbe/watermelondb/DatabaseProvider';
 import withObservables from '@nozbe/with-observables';
 
 import {queryCategoriesByTeamIds} from '@queries/servers/categories';
-import {observeCurrentChannelId} from '@queries/servers/system';
+import {observeCurrentChannelId, observeCurrentUserId} from '@queries/servers/system';
 
 import Categories from './categories';
 
@@ -17,11 +17,13 @@ const enhanced = withObservables(
     ['currentTeamId'],
     ({currentTeamId, database}: WithDatabaseProps) => {
         const currentChannelId = observeCurrentChannelId(database);
+        const currentUserId = observeCurrentUserId(database);
         const categories = queryCategoriesByTeamIds(database, [currentTeamId]).observeWithColumns(['sort_order']);
 
         return {
             currentChannelId,
             categories,
+            currentUserId,
         };
     });
 
diff --git a/app/constants/preferences.ts b/app/constants/preferences.ts
index 0a962329a..ba419d49a 100644
--- a/app/constants/preferences.ts
+++ b/app/constants/preferences.ts
@@ -35,7 +35,8 @@ const Preferences: Record<string, any> = {
     USE_MILITARY_TIME: 'use_military_time',
     CATEGORY_SIDEBAR_SETTINGS: 'sidebar_settings',
     CHANNEL_SIDEBAR_ORGANIZATION: 'channel_sidebar_organization',
-    CHANNEL_SIDEBAR_AUTOCLOSE_DMS: 'close_unused_direct_messages',
+    CHANNEL_SIDEBAR_LIMIT_DMS: 'limit_visible_dms_gms',
+    CHANNEL_SIDEBAR_LIMIT_DMS_DEFAULT: 20,
     AUTOCLOSE_DMS_ENABLED: 'after_seven_days',
     CATEGORY_ADVANCED_SETTINGS: 'advanced_settings',
     ADVANCED_FILTER_JOIN_LEAVE: 'join_leave',
diff --git a/app/queries/servers/channel.ts b/app/queries/servers/channel.ts
index a13defe6d..4bce45aeb 100644
--- a/app/queries/servers/channel.ts
+++ b/app/queries/servers/channel.ts
@@ -303,3 +303,7 @@ export const queryMyChannelSettingsByIds = (database: Database, ids: string[]) =
             Q.where('id', Q.oneOf(ids)),
         );
 };
+
+export const queryChannelsByNames = (database: Database, names: string[]) => {
+    return database.get<ChannelModel>(CHANNEL).query(Q.where('name', Q.oneOf(names)));
+};
diff --git a/app/queries/servers/preference.ts b/app/queries/servers/preference.ts
index 3f9041836..93aa39f41 100644
--- a/app/queries/servers/preference.ts
+++ b/app/queries/servers/preference.ts
@@ -12,6 +12,8 @@ import {getCurrentTeamId} from './system';
 import type ServerDataOperator from '@database/operator/server_data_operator';
 import type PreferenceModel from '@typings/database/models/servers/preference';
 
+const {SERVER: {PREFERENCE}} = MM_TABLES;
+
 export const prepareMyPreferences = (operator: ServerDataOperator, preferences: PreferenceType[], sync = false) => {
     try {
         return operator.handlePreferences({
@@ -32,7 +34,7 @@ export const queryPreferencesByCategoryAndName = (database: Database, category:
     if (value != null) {
         clauses.push(Q.where('value', value));
     }
-    return database.get<PreferenceModel>(MM_TABLES.SERVER.PREFERENCE).query(...clauses);
+    return database.get<PreferenceModel>(PREFERENCE).query(...clauses);
 };
 
 export const getThemeForCurrentTeam = async (database: Database) => {