diff --git a/misago/account/forms.py b/misago/account/forms.py
index 551f3773e4..2570de21ca 100644
--- a/misago/account/forms.py
+++ b/misago/account/forms.py
@@ -32,28 +32,26 @@ def __init__(self, *args, **kwargs):
             coerce=int,
             choices=(
                 (
-                    1,
+                    0,
                     pgettext_lazy(
                         "account privacy choice",
                         "Show other users when I am online",
                     ),
                 ),
                 (
-                    0,
+                    1,
                     pgettext_lazy(
                         "account privacy choice",
                         "Don't show other users when I am online",
                     ),
                 ),
             ),
-            initial=0 if user.is_hiding_presence else 1,
+            initial=1 if user.is_hiding_presence else 0,
             widget=forms.RadioSelect(),
         )
 
     def save(self):
-        self.instance.is_hiding_presence = not self.cleaned_data.get(
-            "is_hiding_presence"
-        )
+        self.instance.is_hiding_presence = self.cleaned_data.get("is_hiding_presence")
         return super().save()
 
 
diff --git a/misago/account/tests/test_account_preferences.py b/misago/account/tests/test_account_preferences.py
new file mode 100644
index 0000000000..6692108be6
--- /dev/null
+++ b/misago/account/tests/test_account_preferences.py
@@ -0,0 +1,93 @@
+from django.urls import reverse
+
+from ...test import assert_contains, assert_has_success_message
+
+
+def test_account_preferences_returns_error_for_guests(user, client):
+    response = client.get(reverse("misago:account-preferences"))
+    assert_contains(response, "You need to be signed in", status_code=403)
+
+
+def test_account_preferences_renders_form(user_client):
+    response = user_client.get(reverse("misago:account-preferences"))
+    assert_contains(response, "Change preferences")
+
+
+def create_form_data(data: dict | None = None) -> dict:
+    default_data = {
+        "is_hiding_presence": "0",
+        "limits_private_thread_invites_to": "0",
+        "watch_started_threads": "0",
+        "watch_replied_threads": "0",
+        "watch_new_private_threads_by_followed": "0",
+        "watch_new_private_threads_by_other_users": "0",
+        "notify_new_private_threads_by_followed": "0",
+        "notify_new_private_threads_by_other_users": "0",
+    }
+
+    if data:
+        default_data.update(data)
+
+    return default_data
+
+
+def test_account_preferences_form_updates_user_account(user, user_client):
+    response = user_client.post(
+        reverse("misago:account-preferences"),
+        create_form_data(
+            {
+                "is_hiding_presence": "1",
+                "limits_private_thread_invites_to": "1",
+                "watch_started_threads": "1",
+                "watch_replied_threads": "2",
+                "watch_new_private_threads_by_followed": "1",
+                "watch_new_private_threads_by_other_users": "2",
+                "notify_new_private_threads_by_followed": "1",
+                "notify_new_private_threads_by_other_users": "2",
+            }
+        ),
+    )
+
+    assert response.status_code == 302
+    assert_has_success_message(response, "Preferences updated")
+
+    user.refresh_from_db()
+    assert user.is_hiding_presence
+    assert user.limits_private_thread_invites_to == 1
+    assert user.watch_started_threads == 1
+    assert user.watch_replied_threads == 2
+    assert user.watch_new_private_threads_by_followed == 1
+    assert user.watch_new_private_threads_by_other_users == 2
+    assert user.notify_new_private_threads_by_followed == 1
+    assert user.notify_new_private_threads_by_other_users == 2
+
+
+def test_account_preferences_form_updates_user_account_in_htmx(user, user_client):
+    response = user_client.post(
+        reverse("misago:account-preferences"),
+        create_form_data(
+            {
+                "is_hiding_presence": "1",
+                "limits_private_thread_invites_to": "1",
+                "watch_started_threads": "1",
+                "watch_replied_threads": "2",
+                "watch_new_private_threads_by_followed": "1",
+                "watch_new_private_threads_by_other_users": "2",
+                "notify_new_private_threads_by_followed": "1",
+                "notify_new_private_threads_by_other_users": "2",
+            }
+        ),
+        headers={"hx-request": "true"},
+    )
+
+    assert_contains(response, "Preferences updated")
+
+    user.refresh_from_db()
+    assert user.is_hiding_presence
+    assert user.limits_private_thread_invites_to == 1
+    assert user.watch_started_threads == 1
+    assert user.watch_replied_threads == 2
+    assert user.watch_new_private_threads_by_followed == 1
+    assert user.watch_new_private_threads_by_other_users == 2
+    assert user.notify_new_private_threads_by_followed == 1
+    assert user.notify_new_private_threads_by_other_users == 2