diff --git a/phpBB/docs/CHANGELOG.html b/phpBB/docs/CHANGELOG.html
index 8b0498f188..38a2316b2b 100644
--- a/phpBB/docs/CHANGELOG.html
+++ b/phpBB/docs/CHANGELOG.html
@@ -120,6 +120,7 @@
 		<li>[Fix] Pass S_SEARCH_ACTION through append_sid() in search.php. (Bug #21585)</li>
 		<li>[Fix] Correctly delete message attachments. (Bug #23755)</li>
 		<li>[Fix] Support (and retain) tabs in code blocks. (Bug #25445)</li>
+		<li>[Fix] Correctly handle unread status of subforums (that are not shown on the index) of forums that are shown on the index. (Bug #14589)</li>
 
 		<li>[Change] No longer allow the direct use of MULTI_INSERT in sql_build_array. sql_multi_insert() must be used.</li>
 		<li>[Change] Display warning in ACP if config.php file is left writable.</li>
diff --git a/phpBB/includes/functions_display.php b/phpBB/includes/functions_display.php
index 937af3e95e..271fe02115 100644
--- a/phpBB/includes/functions_display.php
+++ b/phpBB/includes/functions_display.php
@@ -205,6 +205,12 @@ function display_forums($root_data = '', $display_moderators = true, $return_mod
 			$subforums[$parent_id][$forum_id]['display'] = ($row['display_on_index']) ? true : false;
 			$subforums[$parent_id][$forum_id]['name'] = $row['forum_name'];
 			$subforums[$parent_id][$forum_id]['orig_forum_last_post_time'] = $row['forum_last_post_time'];
+			$subforums[$parent_id][$forum_id]['children'] = array();
+
+			if (isset($subforums[$parent_id][$row['parent_id']]) && !$row['display_on_index'])
+			{
+				$subforums[$parent_id][$row['parent_id']]['children'][] = $forum_id;
+			}
 
 			$forum_rows[$parent_id]['forum_topics'] += $row['forum_topics'];
 
@@ -304,6 +310,14 @@ function display_forums($root_data = '', $display_moderators = true, $return_mod
 			{
 				$subforum_unread = (isset($forum_tracking_info[$subforum_id]) && $subforum_row['orig_forum_last_post_time'] > $forum_tracking_info[$subforum_id]) ? true : false;
 
+				if (!$subforum_unread && !empty($subforum_row['children']))
+				{
+					foreach ($subforum_row['children'] as $child_id)
+					{
+						$subforum_unread = (isset($forum_tracking_info[$child_id]) && $subforums[$forum_id][$child_id]['orig_forum_last_post_time'] > $forum_tracking_info[$child_id]) ? true : false;
+					}
+				}
+
 				if ($subforum_row['display'] && $subforum_row['name'])
 				{
 					$subforums_list[] = array(