diff --git a/app/src/main/java/com/bitchat/android/ui/ChatHeader.kt b/app/src/main/java/com/bitchat/android/ui/ChatHeader.kt
index 2916d8a3..65e2ee8e 100644
--- a/app/src/main/java/com/bitchat/android/ui/ChatHeader.kt
+++ b/app/src/main/java/com/bitchat/android/ui/ChatHeader.kt
@@ -152,11 +152,17 @@ fun ChatHeaderContent(
     
     when {
         selectedPrivatePeer != null -> {
-            // Private chat header
+            // Private chat header - ensure state synchronization
+            val favoritePeers by viewModel.favoritePeers.observeAsState(emptySet())
+            val fingerprint = viewModel.privateChatManager.getPeerFingerprint(selectedPrivatePeer)
+            val isFavorite = favoritePeers.contains(fingerprint)
+            
+            Log.d("ChatHeader", "Header recomposing: peer=$selectedPrivatePeer, fingerprint=$fingerprint, isFav=$isFavorite")
+            
             PrivateChatHeader(
                 peerID = selectedPrivatePeer,
                 peerNicknames = viewModel.meshService.getPeerNicknames(),
-                isFavorite = viewModel.isFavorite(selectedPrivatePeer),
+                isFavorite = isFavorite,
                 onBackClick = onBackClick,
                 onToggleFavorite = { viewModel.toggleFavorite(selectedPrivatePeer) }
             )
diff --git a/app/src/main/java/com/bitchat/android/ui/ChatState.kt b/app/src/main/java/com/bitchat/android/ui/ChatState.kt
index 7309d2fc..748062b1 100644
--- a/app/src/main/java/com/bitchat/android/ui/ChatState.kt
+++ b/app/src/main/java/com/bitchat/android/ui/ChatState.kt
@@ -189,8 +189,17 @@ class ChatState {
     }
 
     fun setFavoritePeers(favorites: Set<String>) {
+        val currentValue = _favoritePeers.value ?: emptySet()
         Log.d("ChatState", "setFavoritePeers called with ${favorites.size} favorites: $favorites")
+        Log.d("ChatState", "Current value: $currentValue")
+        Log.d("ChatState", "Values equal: ${currentValue == favorites}")
+        Log.d("ChatState", "Setting on thread: ${Thread.currentThread().name}")
+        
+        // Always set the value - even if equal, this ensures observers are triggered
         _favoritePeers.value = favorites
+        
+        Log.d("ChatState", "LiveData value after set: ${_favoritePeers.value}")
+        Log.d("ChatState", "LiveData has active observers: ${_favoritePeers.hasActiveObservers()}")
     }
 
 }
diff --git a/app/src/main/java/com/bitchat/android/ui/PrivateChatManager.kt b/app/src/main/java/com/bitchat/android/ui/PrivateChatManager.kt
index ceead27f..6c70241e 100644
--- a/app/src/main/java/com/bitchat/android/ui/PrivateChatManager.kt
+++ b/app/src/main/java/com/bitchat/android/ui/PrivateChatManager.kt
@@ -109,6 +109,9 @@ class PrivateChatManager(
         val wasFavorite = dataManager.isFavorite(fingerprint)
         Log.d(TAG, "Current favorite status: $wasFavorite")
         
+        val currentFavorites = state.getFavoritePeersValue()
+        Log.d(TAG, "Current UI state favorites: $currentFavorites")
+        
         if (wasFavorite) {
             dataManager.removeFavorite(fingerprint)
             Log.d(TAG, "Removed from favorites: $fingerprint")
@@ -117,10 +120,11 @@ class PrivateChatManager(
             Log.d(TAG, "Added to favorites: $fingerprint")
         }
         
-        // Update state to trigger UI refresh
-        state.setFavoritePeers(dataManager.favoritePeers)
+        // Always update state to trigger UI refresh - create new set to ensure change detection
+        val newFavorites = dataManager.favoritePeers.toSet()
+        state.setFavoritePeers(newFavorites)
         
-        Log.d(TAG, "Updated favorite peers state. New favorites: ${dataManager.favoritePeers}")
+        Log.d(TAG, "Force updated favorite peers state. New favorites: $newFavorites")
         Log.d(TAG, "All peer fingerprints: $peerIDToPublicKeyFingerprint")
     }
     
diff --git a/app/src/main/java/com/bitchat/android/ui/SidebarComponents.kt b/app/src/main/java/com/bitchat/android/ui/SidebarComponents.kt
index 2bc7750d..4186a76f 100644
--- a/app/src/main/java/com/bitchat/android/ui/SidebarComponents.kt
+++ b/app/src/main/java/com/bitchat/android/ui/SidebarComponents.kt
@@ -264,20 +264,26 @@ fun PeopleSection(
             val privateChats by viewModel.privateChats.observeAsState(emptyMap())
             val favoritePeers by viewModel.favoritePeers.observeAsState(emptySet()) 
  
+            // Pre-calculate all favorite states to ensure proper state synchronization
+            val peerFavoriteStates = remember(favoritePeers, connectedPeers) {
+                connectedPeers.associateWith { peerID ->
+                    val fingerprint = viewModel.privateChatManager.getPeerFingerprint(peerID)
+                    favoritePeers.contains(fingerprint)
+                }
+            }
+            
+            Log.d("SidebarComponents", "Recomposing with ${favoritePeers.size} favorites, peer states: $peerFavoriteStates")
+ 
              // Smart sorting: unread DMs first, then by most recent DM, then favorites, then alphabetical
             val sortedPeers = connectedPeers.sortedWith(
                 compareBy<String> { !hasUnreadPrivateMessages.contains(it) } // Unread DM senders first
                 .thenByDescending { privateChats[it]?.maxByOrNull { msg -> msg.timestamp }?.timestamp?.time ?: 0L } // Most recent DM (convert Date to Long)
-                .thenBy {
-                    val fingerprint = viewModel.privateChatManager.getPeerFingerprint(it)
-                    fingerprint == null || !favoritePeers.contains(fingerprint)
-                } // Favorites
+                .thenBy { !(peerFavoriteStates[it] ?: false) } // Favorites first
                 .thenBy { (if (it == nickname) "You" else (peerNicknames[it] ?: it)).lowercase() } // Alphabetical
             )
             
             sortedPeers.forEach { peerID ->
-                val fingerprint = viewModel.privateChatManager.getPeerFingerprint(peerID)
-                val isFavorite = favoritePeers.contains(fingerprint)
+                val isFavorite = peerFavoriteStates[peerID] ?: false
                 
                 PeerItem(
                     peerID = peerID,
@@ -289,7 +295,7 @@ fun PeopleSection(
                     colorScheme = colorScheme,
                     onItemClick = { onPrivateChatStart(peerID) },
                     onToggleFavorite = { 
-                        Log.d("SidebarComponents", "Sidebar toggle favorite: peerID=$peerID, fingerprint=$fingerprint, currentFavorite=$isFavorite")
+                        Log.d("SidebarComponents", "Sidebar toggle favorite: peerID=$peerID, currentFavorite=$isFavorite")
                         viewModel.toggleFavorite(peerID) 
                     }
                 )