diff --git a/src/components/sidebar-navigation.tsx b/src/components/sidebar-navigation.tsx
index d0868f294..b771c1eb8 100644
--- a/src/components/sidebar-navigation.tsx
+++ b/src/components/sidebar-navigation.tsx
@@ -5,6 +5,7 @@ import { Stack } from 'soapbox/components/ui';
 import { useStatContext } from 'soapbox/contexts/stat-context';
 import ComposeButton from 'soapbox/features/ui/components/compose-button';
 import { useAppSelector, useFeatures, useOwnAccount, useSettings, useInstance } from 'soapbox/hooks';
+import { useSettingsNotifications } from 'soapbox/hooks/useSettingsNotifications';
 
 import DropdownMenu, { Menu } from './dropdown-menu';
 import SidebarNavigationLink from './sidebar-navigation-link';
@@ -30,6 +31,7 @@ const SidebarNavigation = () => {
   const notificationCount = useAppSelector((state) => state.notifications.unread);
   const followRequestsCount = useAppSelector((state) => state.user_lists.follow_requests.items.count());
   const dashboardCount = useAppSelector((state) => state.admin.openReports.count() + state.admin.awaitingApproval.count());
+  const settingsNotifications = useSettingsNotifications();
 
   const restrictUnauth = instance.pleroma.metadata.restrict_unauthenticated;
 
@@ -160,7 +162,7 @@ const SidebarNavigation = () => {
               icon={require('@tabler/icons/outline/settings.svg')}
               activeIcon={require('@tabler/icons/filled/settings.svg')}
               text={<FormattedMessage id='tabs_bar.settings' defaultMessage='Settings' />}
-              count={features.nip05 && account.acct !== account.source?.nostr?.nip05 ? 1 : 0}
+              count={settingsNotifications.size}
             />
 
             {account.staff && (
diff --git a/src/features/edit-identity/index.tsx b/src/features/edit-identity/index.tsx
index d4800202c..ab9436241 100644
--- a/src/features/edit-identity/index.tsx
+++ b/src/features/edit-identity/index.tsx
@@ -1,11 +1,12 @@
 import { useMutation, useQuery } from '@tanstack/react-query';
-import React, { useState } from 'react';
+import React, { useEffect, useState } from 'react';
 import { FormattedMessage, defineMessages, useIntl } from 'react-intl';
 
 import { patchMe } from 'soapbox/actions/me';
+import { changeSetting } from 'soapbox/actions/settings';
 import List, { ListItem } from 'soapbox/components/list';
 import { Button, CardHeader, CardTitle, Column, Emoji, Form, HStack, Icon, Input, Textarea, Tooltip } from 'soapbox/components/ui';
-import { useApi, useAppDispatch, useInstance, useOwnAccount } from 'soapbox/hooks';
+import { useApi, useAppDispatch, useInstance, useOwnAccount, useSettings } from 'soapbox/hooks';
 import { queryClient } from 'soapbox/queries/client';
 import { adminAccountSchema } from 'soapbox/schemas/admin-account';
 import toast from 'soapbox/toast';
@@ -33,10 +34,20 @@ const EditIdentity: React.FC<IEditIdentity> = () => {
 
   const { data: approvedNames } = useNames();
   const { data: pendingNames } = usePendingNames();
+  const { dismissedSettingsNotifications } = useSettings();
 
   const [username, setUsername] = useState<string>('');
   const [reason, setReason] = useState<string>('');
 
+  useEffect(() => {
+    const dismissed = new Set(dismissedSettingsNotifications);
+
+    if (!dismissed.has('needsNip05')) {
+      dismissed.add('needsNip05');
+      dispatch(changeSetting(['dismissedSettingsNotifications'], [...dismissed]));
+    }
+  }, []);
+
   if (!account) return null;
 
   const updateName = async (name: string): Promise<void> => {
diff --git a/src/features/settings/index.tsx b/src/features/settings/index.tsx
index 30a9c2dc8..bdc0b655f 100644
--- a/src/features/settings/index.tsx
+++ b/src/features/settings/index.tsx
@@ -6,6 +6,7 @@ import CopyableInput from 'soapbox/components/copyable-input';
 import List, { ListItem } from 'soapbox/components/list';
 import { Card, CardBody, CardHeader, CardTitle, Column, Counter, FormGroup, Text } from 'soapbox/components/ui';
 import { useAppDispatch, useAppSelector, useFeatures, useInstance, useOwnAccount } from 'soapbox/hooks';
+import { useSettingsNotifications } from 'soapbox/hooks/useSettingsNotifications';
 
 import Preferences from '../preferences';
 
@@ -46,6 +47,7 @@ const Settings = () => {
   const features = useFeatures();
   const { account } = useOwnAccount();
   const instance = useInstance();
+  const settingsNotifications = useSettingsNotifications();
 
   const isMfaEnabled = mfa.getIn(['settings', 'totp']);
 
@@ -73,7 +75,7 @@ const Settings = () => {
               <ListItem label={intl.formatMessage(messages.editIdentity)} to='/settings/identity'>
                 <span className='max-w-full truncate'>
                   {account?.source?.nostr?.nip05}
-                  {features.nip05 && <Counter count={1} />}
+                  {settingsNotifications.has('needsNip05') && <Counter count={1} />}
                 </span>
               </ListItem>
             )}
diff --git a/src/hooks/useSettingsNotifications.ts b/src/hooks/useSettingsNotifications.ts
new file mode 100644
index 000000000..f8ab9ab78
--- /dev/null
+++ b/src/hooks/useSettingsNotifications.ts
@@ -0,0 +1,25 @@
+import { useFeatures } from './useFeatures';
+import { useOwnAccount } from './useOwnAccount';
+import { useSettings } from './useSettings';
+
+type SettingsNotification = 'needsNip05';
+
+/** Get a list of notifications for settings. */
+export function useSettingsNotifications(): Set<SettingsNotification> {
+  const notifications: Set<SettingsNotification> = new Set();
+
+  const features = useFeatures();
+  const { account } = useOwnAccount();
+  const { dismissedSettingsNotifications } = useSettings();
+
+  if (
+    !dismissedSettingsNotifications.includes('needsNip05')
+    && account
+    && features.nip05
+    && account.acct !== account.source?.nostr?.nip05
+  ) {
+    notifications.add('needsNip05');
+  }
+
+  return notifications;
+}
\ No newline at end of file
diff --git a/src/schemas/soapbox/settings.ts b/src/schemas/soapbox/settings.ts
index e052720ba..e1b8fe53c 100644
--- a/src/schemas/soapbox/settings.ts
+++ b/src/schemas/soapbox/settings.ts
@@ -73,6 +73,8 @@ const settingsSchema = z.object({
       show: z.boolean().catch(true),
     }),
   }),
+  /** Settings notifications that have been dismissed. See `useSettingsNotifications` hook. */
+  dismissedSettingsNotifications: z.array(z.string()).catch([]),
 });
 
 type Settings = z.infer<typeof settingsSchema>;