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 394ffbe8..9dc16cf6 100644
--- a/app/src/main/java/com/bitchat/android/ui/ChatState.kt
+++ b/app/src/main/java/com/bitchat/android/ui/ChatState.kt
@@ -78,6 +78,12 @@ class ChatState {
     private val _commandSuggestions = MutableLiveData<List<CommandSuggestion>>(emptyList())
     val commandSuggestions: LiveData<List<CommandSuggestion>> = _commandSuggestions
     
+    // Favorites
+    private val _favoritePeers = MutableLiveData<Set<String>>(emptySet())
+    val favoritePeers: LiveData<Set<String>> = _favoritePeers
+    
+    val peerIDToPublicKeyFingerprint = mutableMapOf<String, String>()
+    
     // Unread state computed properties
     val hasUnreadChannels: MediatorLiveData<Boolean> = MediatorLiveData<Boolean>()
     val hasUnreadPrivateMessages: MediatorLiveData<Boolean> = MediatorLiveData<Boolean>()
@@ -110,6 +116,7 @@ class ChatState {
     fun getShowSidebarValue() = _showSidebar.value ?: false
     fun getShowCommandSuggestionsValue() = _showCommandSuggestions.value ?: false
     fun getCommandSuggestionsValue() = _commandSuggestions.value ?: emptyList()
+    fun getFavoritePeersValue() = _favoritePeers.value ?: emptySet()
     
     // Setters for state updates
     fun setMessages(messages: List<BitchatMessage>) {
@@ -179,4 +186,9 @@ class ChatState {
     fun setCommandSuggestions(suggestions: List<CommandSuggestion>) {
         _commandSuggestions.value = suggestions
     }
+
+    fun setFavoritePeers(favorites: Set<String>) {
+        _favoritePeers.value = favorites
+    }
+
 }
diff --git a/app/src/main/java/com/bitchat/android/ui/ChatViewModel.kt b/app/src/main/java/com/bitchat/android/ui/ChatViewModel.kt
index 4cfb92c3..90a17ce2 100644
--- a/app/src/main/java/com/bitchat/android/ui/ChatViewModel.kt
+++ b/app/src/main/java/com/bitchat/android/ui/ChatViewModel.kt
@@ -33,7 +33,7 @@ class ChatViewModel(application: Application) : AndroidViewModel(application), B
     private val dataManager = DataManager(context)
     private val messageManager = MessageManager(state)
     private val channelManager = ChannelManager(state, messageManager, dataManager, viewModelScope)
-    private val privateChatManager = PrivateChatManager(state, messageManager, dataManager)
+    val privateChatManager = PrivateChatManager(state, messageManager, dataManager)
     private val commandProcessor = CommandProcessor(state, messageManager, channelManager, privateChatManager)
     
     // Delegate handler for mesh callbacks
@@ -67,6 +67,7 @@ class ChatViewModel(application: Application) : AndroidViewModel(application), B
     val hasUnreadPrivateMessages = state.hasUnreadPrivateMessages
     val showCommandSuggestions: LiveData<Boolean> = state.showCommandSuggestions
     val commandSuggestions: LiveData<List<CommandSuggestion>> = state.commandSuggestions
+    val favoritePeers: LiveData<Set<String>> = state.favoritePeers
     
     init {
         meshService.delegate = this
@@ -94,6 +95,7 @@ class ChatViewModel(application: Application) : AndroidViewModel(application), B
         
         // Load other data
         dataManager.loadFavorites()
+        state.setFavoritePeers(dataManager.favoritePeers)
         dataManager.loadBlockedUsers()
         
         // Start mesh service
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 c9341f04..cb94ab4e 100644
--- a/app/src/main/java/com/bitchat/android/ui/PrivateChatManager.kt
+++ b/app/src/main/java/com/bitchat/android/ui/PrivateChatManager.kt
@@ -104,6 +104,7 @@ class PrivateChatManager(
         } else {
             dataManager.addFavorite(fingerprint)
         }
+        state.setFavoritePeers(dataManager.favoritePeers)
     }
     
     fun isFavorite(peerID: String): Boolean {
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 a0575f0a..cdb7adfa 100644
--- a/app/src/main/java/com/bitchat/android/ui/SidebarComponents.kt
+++ b/app/src/main/java/com/bitchat/android/ui/SidebarComponents.kt
@@ -261,12 +261,16 @@ fun PeopleSection(
             // Get unread private messages and private chat history for sorting
             val hasUnreadPrivateMessages by viewModel.unreadPrivateMessages.observeAsState(emptySet())
             val privateChats by viewModel.privateChats.observeAsState(emptyMap())
-            
-            // Smart sorting: unread DMs first, then by most recent DM, then favorites, then alphabetical
+            val favoritePeers by viewModel.favoritePeers.observeAsState(emptySet()) 
+ 
+             // 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 { !viewModel.isFavorite(it) } // Favorites 
+                .thenBy {
+                    val fingerprint = viewModel.privateChatManager.getPeerFingerprint(it)
+                    fingerprint == null || !favoritePeers.contains(fingerprint)
+                } // Favorites
                 .thenBy { (if (it == nickname) "You" else (peerNicknames[it] ?: it)).lowercase() } // Alphabetical
             )
             
@@ -276,7 +280,7 @@ fun PeopleSection(
                     displayName = if (peerID == nickname) "You" else (peerNicknames[peerID] ?: peerID),
                     signalStrength = peerRSSI[peerID] ?: 0,
                     isSelected = peerID == selectedPrivatePeer,
-                    isFavorite = viewModel.isFavorite(peerID),
+                    isFavorite = favoritePeers.contains(viewModel.privateChatManager.getPeerFingerprint(peerID)),
                     hasUnreadDM = hasUnreadPrivateMessages.contains(peerID),
                     colorScheme = colorScheme,
                     onItemClick = { onPrivateChatStart(peerID) },