diff --git a/qui/tray/updates.py b/qui/tray/updates.py
index c72e0c37..736ba441 100644
--- a/qui/tray/updates.py
+++ b/qui/tray/updates.py
@@ -170,6 +170,9 @@ def domain_removed(self, _submitter, _event, vm, *_args, **_kwargs):
         if vm in self.vms_needing_update:
             self.vms_needing_update.remove(vm)
             self.update_indicator_state()
+        if vm.name in self.obsolete_vms:
+            self.obsolete_vms.remove(vm.name)
+            self.update_indicator_state()
 
     def feature_unset(self, vm, event, feature, **_kwargs):
         # pylint: disable=unused-argument