diff --git a/plugins/woocommerce-admin/client/launch-your-store/hub/sidebar/components/launch-store-hub.tsx b/plugins/woocommerce-admin/client/launch-your-store/hub/sidebar/components/launch-store-hub.tsx
index d748b988fb0..9376e521dd7 100644
--- a/plugins/woocommerce-admin/client/launch-your-store/hub/sidebar/components/launch-store-hub.tsx
+++ b/plugins/woocommerce-admin/client/launch-your-store/hub/sidebar/components/launch-store-hub.tsx
@@ -25,8 +25,9 @@ import {
  */
 import type { SidebarComponentProps } from '../xstate';
 import { SidebarContainer } from './sidebar-container';
-import { taskCompleteIcon, taskIcons } from './icons';
+import { taskCompleteIcon } from './icons';
 import { SiteHub } from '~/customize-store/assembler-hub/site-hub';
+import { CompletedTaskItem, IncompleteTaskItem } from '../tasklist';
 export const LaunchYourStoreHubSidebar: React.FC< SidebarComponentProps > = (
 	props
 ) => {
@@ -109,28 +110,25 @@ export const LaunchYourStoreHubSidebar: React.FC< SidebarComponentProps > = (
 				<ItemGroup className="edit-site-sidebar-navigation-screen-essential-tasks__group">
 					{ tasklist &&
 						hasIncompleteTasks &&
-						tasklist.tasks.map( ( task ) => (
-							<SidebarNavigationItem
-								className={ classnames( task.id, {
-									'is-complete': task.isComplete,
-								} ) }
-								icon={
-									task.isComplete
-										? taskCompleteIcon
-										: taskIcons[ task.id ]
-								}
-								withChevron
-								key={ task.id }
-								onClick={ () => {
-									props.sendEventToSidebar( {
-										type: 'TASK_CLICKED',
-										task,
-									} );
-								} }
-							>
-								{ task.title }
-							</SidebarNavigationItem>
-						) ) }
+						tasklist.tasks.map( ( task ) =>
+							task.isComplete ? (
+								<CompletedTaskItem
+									task={ task }
+									key={ task.id }
+								/>
+							) : (
+								<IncompleteTaskItem
+									task={ task }
+									key={ task.id }
+									onClick={ () => {
+										props.sendEventToSidebar( {
+											type: 'TASK_CLICKED',
+											task,
+										} );
+									} }
+								/>
+							)
+						) }
 					{ tasklist && ! hasIncompleteTasks && (
 						<SidebarNavigationItem
 							className="all-tasks-complete"
diff --git a/plugins/woocommerce-admin/client/launch-your-store/hub/sidebar/tasklist.tsx b/plugins/woocommerce-admin/client/launch-your-store/hub/sidebar/tasklist.tsx
new file mode 100644
index 00000000000..e5a0b946c0b
--- /dev/null
+++ b/plugins/woocommerce-admin/client/launch-your-store/hub/sidebar/tasklist.tsx
@@ -0,0 +1,117 @@
+/* eslint-disable @typescript-eslint/ban-ts-comment */
+/* eslint-disable @woocommerce/dependency-group */
+/**
+ * External dependencies
+ */
+import { ONBOARDING_STORE_NAME, TaskType } from '@woocommerce/data';
+import { navigateTo, getNewPath } from '@woocommerce/navigation';
+import { resolveSelect } from '@wordpress/data';
+import { applyFilters } from '@wordpress/hooks';
+import classnames from 'classnames';
+// @ts-ignore No types for this exist yet.
+import SidebarNavigationItem from '@wordpress/edit-site/build-module/components/sidebar-navigation-item';
+
+/**
+ * Internal dependencies
+ */
+import { createStorageUtils } from '~/utils/localStorage';
+import { taskCompleteIcon, taskIcons } from './components/icons';
+
+const SEVEN_DAYS_IN_SECONDS = 60 * 60 * 24 * 7;
+export const LYS_RECENTLY_ACTIONED_TASKS_KEY = 'lys_recently_actioned_tasks';
+
+export const {
+	getWithExpiry: getRecentlyActionedTasks,
+	setWithExpiry: saveRecentlyActionedTask,
+} = createStorageUtils< string[] >(
+	LYS_RECENTLY_ACTIONED_TASKS_KEY,
+	SEVEN_DAYS_IN_SECONDS
+);
+
+export const getLysTasklist = async () => {
+	const LYS_TASKS_WHITELIST = [
+		'products',
+		'customize-store',
+		'woocommerce-payments',
+		'payments',
+		'shipping',
+		'tax',
+	];
+
+	/**
+	 * This filter allows customizing the list of tasks to show in WooCommerce Launch Your Store feature.
+	 *
+	 * @filter woocommerce_launch_your_store_tasklist_whitelist
+	 * @param {string[]} LYS_TASKS_WHITELIST Default list of task IDs to show in LYS.
+	 *
+	 */
+	const filteredTasks = applyFilters(
+		'woocommerce_launch_your_store_tasklist_whitelist',
+		[ ...LYS_TASKS_WHITELIST ]
+	) as string[];
+
+	const tasklist = await resolveSelect(
+		ONBOARDING_STORE_NAME
+	).getTaskListsByIds( [ 'setup' ] );
+
+	const recentlyActionedTasks = getRecentlyActionedTasks() ?? [];
+
+	/**
+	 * Show tasks that fulfill all the following conditions:
+	 * 1. part of the whitelist of tasks to show in LYS
+	 * 2. either not completed or recently actioned
+	 */
+	const visibleTasks = tasklist[ 0 ].tasks.filter(
+		( task ) =>
+			filteredTasks.includes( task.id ) &&
+			( ! task.isComplete || recentlyActionedTasks.includes( task.id ) )
+	);
+
+	return {
+		...tasklist[ 0 ],
+		tasks: visibleTasks,
+	};
+};
+
+export function taskClickedAction( event: {
+	type: 'TASK_CLICKED';
+	task: TaskType;
+} ) {
+	const recentlyActionedTasks = getRecentlyActionedTasks() ?? [];
+	saveRecentlyActionedTask( [ ...recentlyActionedTasks, event.task.id ] );
+	if ( event.task.actionUrl ) {
+		navigateTo( { url: event.task.actionUrl } );
+	} else {
+		navigateTo( {
+			url: getNewPath( { task: event.task.id }, '/', {} ),
+		} );
+	}
+}
+
+export const CompletedTaskItem: React.FC< {
+	task: TaskType;
+	classNames?: string;
+} > = ( { task, classNames } ) => (
+	<SidebarNavigationItem
+		className={ classnames( task.id, 'is-complete', classNames ) }
+		icon={ taskCompleteIcon }
+		disabled={ true }
+	>
+		{ task.title }
+	</SidebarNavigationItem>
+);
+
+export const IncompleteTaskItem: React.FC< {
+	task: TaskType;
+	classNames?: string;
+	onClick: () => void;
+} > = ( { task, classNames, onClick } ) => (
+	<SidebarNavigationItem
+		className={ classnames( task.id, classNames ) }
+		icon={ taskIcons[ task.id ] }
+		withChevron
+		onClick={ onClick }
+	>
+		{ task.title }
+	</SidebarNavigationItem>
+);
diff --git a/plugins/woocommerce-admin/client/launch-your-store/hub/sidebar/xstate.tsx b/plugins/woocommerce-admin/client/launch-your-store/hub/sidebar/xstate.tsx
index 605395e4e79..5d211969816 100644
--- a/plugins/woocommerce-admin/client/launch-your-store/hub/sidebar/xstate.tsx
+++ b/plugins/woocommerce-admin/client/launch-your-store/hub/sidebar/xstate.tsx
@@ -11,14 +11,8 @@ import {
 } from 'xstate5';
 import React from 'react';
 import classnames from 'classnames';
-import { getNewPath, getQuery, navigateTo } from '@woocommerce/navigation';
-import { resolveSelect } from '@wordpress/data';
-import {
-	ONBOARDING_STORE_NAME,
-	TaskListType,
-	TaskType,
-} from '@woocommerce/data';
-import { applyFilters } from '@wordpress/hooks';
+import { getQuery, navigateTo } from '@woocommerce/navigation';
+import { TaskListType, TaskType } from '@woocommerce/data';
 
 /**
  * Internal dependencies
@@ -27,6 +21,7 @@ import { LaunchYourStoreHubSidebar } from './components/launch-store-hub';
 import type { LaunchYourStoreComponentProps } from '..';
 import type { mainContentMachine } from '../main-content/xstate';
 import { updateQueryParams, createQueryParamsListener } from '../common';
+import { taskClickedAction, getLysTasklist } from './tasklist';
 
 export type SidebarMachineContext = {
 	externalUrl: string | null;
@@ -52,31 +47,6 @@ const sidebarQueryParamListener = fromCallback( ( { sendBack } ) => {
 	return createQueryParamsListener( 'sidebar', sendBack );
 } );
 
-const getLysTasklist = async () => {
-	const LYS_TASKS = [
-		'products',
-		'customize-store',
-		'woocommerce-payments',
-		'payments',
-		'shipping',
-		'tax',
-	];
-
-	const tasklist = await resolveSelect(
-		ONBOARDING_STORE_NAME
-	).getTaskListsByIds( [ 'setup' ] );
-	const visibleTasks: string[] = applyFilters(
-		'woocommerce_launch_your_store_tasklist_visible',
-		[ ...LYS_TASKS ]
-	) as string[];
-	return {
-		...tasklist[ 0 ],
-		tasks: tasklist[ 0 ].tasks.filter( ( task ) =>
-			visibleTasks.includes( task.id )
-		),
-	};
-};
-
 export const sidebarMachine = setup( {
 	types: {} as {
 		context: SidebarMachineContext;
@@ -107,13 +77,7 @@ export const sidebarMachine = setup( {
 		},
 		taskClicked: ( { event } ) => {
 			if ( event.type === 'TASK_CLICKED' ) {
-				if ( event.task.actionUrl ) {
-					navigateTo( { url: event.task.actionUrl } );
-				} else {
-					navigateTo( {
-						url: getNewPath( { task: event.task.id }, '/', {} ),
-					} );
-				}
+				taskClickedAction( event );
 			}
 		},
 		openWcAdminUrl: ( { event } ) => {
diff --git a/plugins/woocommerce-admin/client/launch-your-store/hub/styles.scss b/plugins/woocommerce-admin/client/launch-your-store/hub/styles.scss
index aaa587faab9..ed99fe1f3d5 100644
--- a/plugins/woocommerce-admin/client/launch-your-store/hub/styles.scss
+++ b/plugins/woocommerce-admin/client/launch-your-store/hub/styles.scss
@@ -242,6 +242,15 @@
 							.edit-site-sidebar-navigation-item.is-complete {
 								text-decoration: line-through;
 								color: $gray-700;
+
+								&:hover {
+									background: transparent;
+									color: $gray-700;
+								}
+
+								.components-flex-block {
+									color: $gray-700;
+								}
 							}
 						}
 					}
diff --git a/plugins/woocommerce-admin/client/utils/localStorage.ts b/plugins/woocommerce-admin/client/utils/localStorage.ts
new file mode 100644
index 00000000000..93fa32a2e55
--- /dev/null
+++ b/plugins/woocommerce-admin/client/utils/localStorage.ts
@@ -0,0 +1,41 @@
+type StoredItem< T > = {
+	data: T;
+	expiry: string;
+};
+
+/**
+ * This constructor function exists for type safety purposes, so when you create a pair of set/get functions they have the
+ *  same type for the value they store/retrieve.
+ */
+export function createStorageUtils< T >(
+	key: string,
+	durationInSeconds: number
+) {
+	return {
+		setWithExpiry: ( value: T ): void => {
+			const now = new Date();
+			const expiry = new Date( now.getTime() + durationInSeconds * 1000 );
+
+			const item: StoredItem< T > = {
+				data: value,
+				expiry: expiry.toISOString(),
+			};
+
+			localStorage.setItem( key, JSON.stringify( item ) );
+		},
+		getWithExpiry: (): T | null => {
+			const itemStr = localStorage.getItem( key );
+			if ( ! itemStr ) {
+				return null;
+			}
+
+			const item: StoredItem< T > = JSON.parse( itemStr );
+			const now = new Date();
+			if ( now > new Date( item.expiry ) ) {
+				localStorage.removeItem( key );
+				return null;
+			}
+			return item.data;
+		},
+	};
+}
diff --git a/plugins/woocommerce/changelog/fix-lys-incomplete-tasks b/plugins/woocommerce/changelog/fix-lys-incomplete-tasks
new file mode 100644
index 00000000000..96ec29fe2a3
--- /dev/null
+++ b/plugins/woocommerce/changelog/fix-lys-incomplete-tasks
@@ -0,0 +1,4 @@
+Significance: patch
+Type: fix
+
+Fix the LYS Hub tasklist so that it only shows incomplete tasks and tasks that were recently actioned
\ No newline at end of file