diff --git a/schema/spacewalk/common/views/suseServerAppStreamHiddenPackagesView.sql b/schema/spacewalk/common/views/suseServerAppStreamHiddenPackagesView.sql
index c4032e4efa8a..ed0df359cef5 100644
--- a/schema/spacewalk/common/views/suseServerAppStreamHiddenPackagesView.sql
+++ b/schema/spacewalk/common/views/suseServerAppStreamHiddenPackagesView.sql
@@ -23,6 +23,7 @@ FROM rhnserverchannel sc
     INNER JOIN suseappstreampackage sasp ON sasp.module_id = sas.id
     LEFT JOIN suseserverappstream ssa ON ssa.name = sas.name
         AND ssa.stream = sas.stream
+        AND ssa.context = sas.context
         AND ssa.arch = sas.arch
         AND ssa.server_id = sc.server_id
 WHERE ssa.id IS NULL
diff --git a/schema/spacewalk/susemanager-schema.changes.parlt.fix-appstreams-context-selection b/schema/spacewalk/susemanager-schema.changes.parlt.fix-appstreams-context-selection
new file mode 100644
index 000000000000..390902d990a4
--- /dev/null
+++ b/schema/spacewalk/susemanager-schema.changes.parlt.fix-appstreams-context-selection
@@ -0,0 +1 @@
+- Improve appstreams context selection (bsc#1231459)
diff --git a/schema/spacewalk/upgrade/susemanager-schema-5.1.0-to-susemanager-schema-5.1.1/003-appstream-hidden-packages-view.sql b/schema/spacewalk/upgrade/susemanager-schema-5.1.0-to-susemanager-schema-5.1.1/003-appstream-hidden-packages-view.sql
new file mode 100644
index 000000000000..6d0ee8eb809f
--- /dev/null
+++ b/schema/spacewalk/upgrade/susemanager-schema-5.1.0-to-susemanager-schema-5.1.1/003-appstream-hidden-packages-view.sql
@@ -0,0 +1,50 @@
+--
+-- Copyright (c) 2024 SUSE LLC
+--
+-- This software is licensed to you under the GNU General Public License,
+-- version 2 (GPLv2). There is NO WARRANTY for this software, express or
+-- implied, including the implied warranties of MERCHANTABILITY or FITNESS
+-- FOR A PARTICULAR PURPOSE. You should have received a copy of GPLv2
+-- along with this software; if not, see
+-- http://www.gnu.org/licenses/old-licenses/gpl-2.0.txt.
+--
+-- Red Hat trademarks are not licensed under GPLv2. No permission is
+-- granted to use or replicate Red Hat trademarks that are incorporated
+-- in this software or its documentation.
+--
+CREATE OR REPLACE VIEW suseServerAppStreamHiddenPackagesView AS
+
+-- If a package is part of any appstream,
+-- and this appstream is not enabled in
+-- a server, it should appear here.
+SELECT DISTINCT sasp.package_id AS pid, sc.server_id AS sid
+FROM rhnserverchannel sc
+    INNER JOIN suseappstream sas ON sas.channel_id = sc.channel_id
+    INNER JOIN suseappstreampackage sasp ON sasp.module_id = sas.id
+    LEFT JOIN suseserverappstream ssa ON ssa.name = sas.name
+        AND ssa.stream = sas.stream
+        AND ssa.context = sas.context
+        AND ssa.arch = sas.arch
+        AND ssa.server_id = sc.server_id
+WHERE ssa.id IS NULL
+
+UNION
+
+-- If a package is part of an enabled appstream, all the packages
+-- whose name matches with appstream api need to be filtered out
+-- except the packages that are part of the enabled appstream.
+SELECT DISTINCT p.id AS pid, server_stream.server_id AS sid
+FROM suseServerAppstream server_stream
+    INNER JOIN suseAppstream appstream ON appstream.name = server_stream.name
+        AND appstream.stream = server_stream.stream
+        AND appstream.arch = server_stream.arch
+    INNER JOIN suseAppstreamApi api ON api.module_id = appstream.id
+    inner join rhnPackageName pn ON pn.name = api.rpm
+    inner join rhnPackage p ON p.name_id = pn.id
+WHERE NOT EXISTS (
+    SELECT package_id
+    FROM suseServerAppStreamPackageView
+    WHERE server_id = server_stream.server_id
+        AND package_id = p.id
+);
+
diff --git a/susemanager-utils/susemanager-sls/src/modules/appstreams.py b/susemanager-utils/susemanager-sls/src/modules/appstreams.py
index c917e37c602f..0b4864dd0f22 100644
--- a/susemanager-utils/susemanager-sls/src/modules/appstreams.py
+++ b/susemanager-utils/susemanager-sls/src/modules/appstreams.py
@@ -92,6 +92,26 @@ def _get_module_info(module_names):
         return []
 
     module_info_output = result.stdout.splitlines()
+    active_modules = []
+    while True:
+        start = next(
+            (i for i, e in enumerate(module_info_output)
+            if "[a]" in e), -1
+        )
+        if start != -1 and module_info_output[start].startswith("Stream"):
+            end = next(
+                (i for i, e in enumerate(module_info_output[start:-1])
+                if e.startswith("Name")), -1
+            )
+            if end != -1:
+                active_modules+=module_info_output[start-1:end+start]
+                module_info_output = module_info_output[end+start:-1]
+            else:
+                active_modules+=module_info_output[start-1:end]
+                module_info_output=active_modules
+                break
+        else:
+            break
 
     nsvca_info_list = []
     current_module_info = []
diff --git a/susemanager-utils/susemanager-sls/susemanager-sls.changes.parlt.fix-appstreams-context-selection b/susemanager-utils/susemanager-sls/susemanager-sls.changes.parlt.fix-appstreams-context-selection
new file mode 100644
index 000000000000..390902d990a4
--- /dev/null
+++ b/susemanager-utils/susemanager-sls/susemanager-sls.changes.parlt.fix-appstreams-context-selection
@@ -0,0 +1 @@
+- Improve appstreams context selection (bsc#1231459)