diff --git a/src/app/components/channel-list-container/channel-list-container.component.html b/src/app/components/channel-list-container/channel-list-container.component.html
index b401b8d31..c9805c1b5 100644
--- a/src/app/components/channel-list-container/channel-list-container.component.html
+++ b/src/app/components/channel-list-container/channel-list-container.component.html
@@ -1,29 +1,68 @@
-<mat-list id="top-panel">
-    <mat-list-item>
-        <mat-form-field class="full-width">
-            <input matInput placeholder="Search channel ({{channelList?.length}})" [(ngModel)]="searchTerm.name">
-        </mat-form-field>
-        <button mat-icon-button [routerLink]="'/'" matTooltip="Upload or select other playlist">
-            <mat-icon>create_new_folder</mat-icon>
-        </button>
-    </mat-list-item>
-</mat-list>
-<mat-nav-list id="channels-list">
-    <mat-accordion class="example-headers-align" multi>
-        <ng-container *ngFor="let groups of channelList | keyvalue">
-        <mat-expansion-panel *ngIf="groups.value.length > 0">
-            <mat-expansion-panel-header>
-                {{groups.key || 'Ungrouped'}} ({{groups.value.length}})
-            </mat-expansion-panel-header>
-            
-            <mat-list-item
-            *ngFor="let channel of groups.value | filterBy: searchTerm; index as i" 
+<mat-tab-group>
+    <mat-tab label="All channels">
+        <mat-list id="top-panel">
+            <mat-list-item>
+                <mat-form-field class="full-width">
+                    <input matInput placeholder="Search channel ({{_channelList?.length}})"
+                        [(ngModel)]="searchTerm.name">
+                </mat-form-field>
+                <button mat-icon-button [routerLink]="'/'" matTooltip="Upload or select other playlist">
+                    <mat-icon>create_new_folder</mat-icon>
+                </button>
+            </mat-list-item>
+        </mat-list>
+        <mat-nav-list id="channels-list">
+            <mat-accordion multi>
+                <mat-list-item *ngFor="let channel of _channelList | filterBy: searchTerm; index as i"
                     [class.active]="selected?.id === channel.id" (click)="selectChannel(channel)">
-                    {{i+1 + '. ' + channel?.name || 'Unnamed Channel'}}
+                    <p matLine>
+                        {{ i+1 + '. ' + channel?.name || 'Unnamed Channel' }}
+                    </p>
+                    <button mat-icon-button color="primary" (click)="favChannel(channel, $event)">
+                        <mat-icon>star{{ channel.fav ? '' : '_outline' }}</mat-icon>
+                    </button>
                     <mat-divider></mat-divider>
                 </mat-list-item>
-        </mat-expansion-panel>
-    
-        </ng-container>
-    </mat-accordion>
-</mat-nav-list>
+            </mat-accordion>
+        </mat-nav-list>
+    </mat-tab>
+
+    <mat-tab label="Groups">
+        <mat-nav-list id="channels-list">
+            <mat-accordion multi>
+                <ng-container *ngFor="let groups of groupedChannels | keyvalue">
+                    <mat-expansion-panel>
+                        <mat-expansion-panel-header *ngIf="groups.value.length > 0">
+                            {{groups.key || 'Ungrouped'}} ({{groups.value.length}})
+                        </mat-expansion-panel-header>
+                        <mat-list-item *ngFor="let channel of groups.value; index as i"
+                            [class.active]="selected?.id === channel.id" (click)="selectChannel(channel)">
+                            <p matLine>
+                                {{ i+1 + '. ' + channel?.name || 'Unnamed Channel' }}
+                            </p>
+                            <button mat-icon-button color="primary" (click)="favChannel(channel, $event)">
+                                <mat-icon>star{{ channel.fav ? '' : '_outline' }}</mat-icon>
+                            </button>
+                            <mat-divider></mat-divider>
+                        </mat-list-item>
+                    </mat-expansion-panel>
+                </ng-container>
+            </mat-accordion>
+        </mat-nav-list>
+    </mat-tab>
+
+    <mat-tab label="Favorites">
+        <mat-nav-list>
+            <mat-list-item *ngFor="let channel of favs | filterBy: searchTerm; index as i"
+                [class.active]="selected?.id === channel.id" (click)="selectChannel(channel)">
+                <p matLine>
+                    {{ i+1 + '. ' + channel?.name || 'Unnamed Channel' }}
+                </p>
+                <button mat-icon-button color="primary" (click)="favChannel(channel, $event)">
+                    <mat-icon>star{{ channel.fav ? '' : '_outline' }}</mat-icon>
+                </button>
+                <mat-divider></mat-divider>
+            </mat-list-item>
+        </mat-nav-list>
+    </mat-tab>
+</mat-tab-group>
\ No newline at end of file
diff --git a/src/app/components/channel-list-container/channel-list-container.component.css b/src/app/components/channel-list-container/channel-list-container.component.scss
similarity index 58%
rename from src/app/components/channel-list-container/channel-list-container.component.css
rename to src/app/components/channel-list-container/channel-list-container.component.scss
index 4185ade97..881882962 100644
--- a/src/app/components/channel-list-container/channel-list-container.component.css
+++ b/src/app/components/channel-list-container/channel-list-container.component.scss
@@ -6,11 +6,6 @@
     background: #eee;
 }
 
-#channels-list {
-    overflow-y: auto;
-    height: calc(100% - 65px);
-}
-
 .active {
     background: #ddd;
 }
@@ -22,3 +17,10 @@
 ::ng-deep .mat-expansion-panel-body {
     padding: 0 !important;
 }
+
+::ng-deep.mat-tab-label,
+::ng-deep.mat-tab-label-active {
+    min-width: 0 !important;
+    padding: 3px 10px !important;
+    margin: 3px 10px !important;
+}
diff --git a/src/app/components/channel-list-container/channel-list-container.component.ts b/src/app/components/channel-list-container/channel-list-container.component.ts
index 4c8658645..5c6c0b7c9 100644
--- a/src/app/components/channel-list-container/channel-list-container.component.ts
+++ b/src/app/components/channel-list-container/channel-list-container.component.ts
@@ -1,29 +1,43 @@
 import { Component, Input, Output, EventEmitter } from '@angular/core';
-import { Channel } from 'src/app/state';
+import { Channel, ChannelStore, ChannelQuery } from 'src/app/state';
+import { NgxIndexedDBService } from 'ngx-indexed-db';
+import { Playlist } from '../playlist-uploader/playlist-uploader.component';
+import * as _ from 'lodash';
+import { MatSnackBar } from '@angular/material/snack-bar';
 
 @Component({
     selector: 'app-channel-list-container',
     templateUrl: './channel-list-container.component.html',
-    styleUrls: ['./channel-list-container.component.css'],
+    styleUrls: ['./channel-list-container.component.scss'],
 })
 export class ChannelListContainerComponent {
     /**
      * Channels array
+     * Create local copy of the store for local manipulations without updates in the store
      */
-    @Input() channelList: Channel[];
+    _channelList: Channel[];
+    get channelList(): Channel[] {
+        return this._channelList;
+    }
 
-    /** 
-     * Selected channel 
-     */
+    @Input('channelList')
+    set channelList(value: Channel[]) {
+        // deep copy
+        this._channelList = JSON.parse(JSON.stringify(value));
+        this.groupedChannels = _.groupBy(this._channelList, 'group.title');
+    }
+
+    /** Object with channels sorted by grouped */
+    groupedChannels: { [key: string]: Channel[] };
+
+    /** Selected channel */
     selected: Channel;
 
-    /**
-     * Emits on channel change
-     */
-    @Output() changeChannel: EventEmitter<{
-        url: string;
-        name: string;
-    }> = new EventEmitter();
+    /** Emits on channel change */
+    @Output() changeChannel: EventEmitter<Channel> = new EventEmitter();
+
+    /** List with favorited channels */
+    favs: Channel[] = [];
 
     /**
      * Search term for channel filter
@@ -32,12 +46,65 @@ export class ChannelListContainerComponent {
         name: '',
     };
 
+    /**
+     * Creates an instance of ChannelListContainerComponent
+     * @param channelQuery akita's channel query
+     * @param channelStore akita's channel store
+     * @param dbService service to work with indexed db
+     * @param snackBar service to push snackbar notifications
+     */
+    constructor(
+        private channelQuery: ChannelQuery,
+        private channelStore: ChannelStore,
+        private dbService: NgxIndexedDBService,
+        private snackBar: MatSnackBar
+    ) {
+        this.channelQuery
+            .selectAll({
+                filterBy: (entity) => entity.fav === true,
+            })
+            .subscribe(
+                (favs) => (this.favs = JSON.parse(JSON.stringify(favs)))
+            );
+    }
+
     /**
      * Sets clicked channel as selected and emits them to the parent component
      * @param channel selected channel
      */
     selectChannel(channel: Channel): void {
         this.selected = channel;
-        this.changeChannel.emit({ url: channel.url, name: channel.name });
+        this.changeChannel.emit(channel);
+    }
+
+    /**
+     * Toggles favorite flag for the given channel
+     * @param channel channel to update
+     * @param clickEvent mouse click event
+     */
+    favChannel(channel: Channel, clickEvent: MouseEvent): void {
+        clickEvent.stopPropagation();
+        channel.fav = !channel.fav;
+        this.snackBar.open('Favorites were updated!');
+
+        this.channelStore.update(channel.id, { fav: channel.fav });
+        // update channels fav flag in the indexed db
+        this.channelStore.update((store) => {
+            const favorites = channel.fav
+                ? [...store.favorites, channel.id]
+                : [...store.favorites.filter((favId) => channel.id !== favId)];
+            this.dbService
+                .getByID('playlists', store.playlistId)
+                .then((dataset: Playlist) => {
+                    this.dbService.update('playlists', {
+                        ...dataset,
+                        favorites,
+                    });
+                });
+
+            return {
+                favorites,
+            };
+        });
     }
 }
diff --git a/src/app/components/playlist-uploader/playlist-uploader.component.ts b/src/app/components/playlist-uploader/playlist-uploader.component.ts
index 399bef1f7..2e6fbd8b3 100644
--- a/src/app/components/playlist-uploader/playlist-uploader.component.ts
+++ b/src/app/components/playlist-uploader/playlist-uploader.component.ts
@@ -6,23 +6,25 @@ import {
     humanizeBytes,
     UploaderOptions,
 } from 'ngx-uploader';
-import { ChannelStore, createChannel, Channel } from 'src/app/state';
+import { ChannelStore, createChannel } from 'src/app/state';
 import { M3uService } from 'src/app/services/m3u-service.service';
 import { Router } from '@angular/router';
 import { NgxIndexedDBService } from 'ngx-indexed-db';
 import { PLAYLISTS_STORE } from 'src/app/db.config';
 import { MatSnackBar } from '@angular/material/snack-bar';
+import { guid, ID } from '@datorama/akita';
 
 /**
  * Describes playlist interface
  */
 export interface Playlist {
-    id?: number;
+    id?: ID;
     title: string;
     filename: string;
     playlist: any;
     importDate: number;
     lastUsage: number;
+    favorites: string[];
 }
 
 @Component({
@@ -46,6 +48,7 @@ export class PlaylistUploaderComponent {
      * @param dbService indexeddb service
      * @param m3uService m3u service
      * @param router angulars router
+     * @param snackBar snackbars with notification messages
      */
     constructor(
         private channelStore: ChannelStore,
@@ -74,16 +77,8 @@ export class PlaylistUploaderComponent {
             this.isLoading = true;
             if (this.files.length > 0) {
                 const fileReader = new FileReader();
-                fileReader.onload = (fileLoadedEvent) => {
-                    const result = (fileLoadedEvent.target as FileReader)
-                        .result;
-
-                    const array = (result as string).split('\n');
-                    const playlist = this.m3uService.parsePlaylist(array);
-                    this.savePlaylist(this.files[0].name, playlist);
-
-                    this.setPlaylist(playlist);
-                };
+                fileReader.onload = (fileLoadedEvent) =>
+                    this.handlePlaylist(fileLoadedEvent);
                 fileReader.readAsText(this.files[0].nativeFile);
             }
         } else if (
@@ -119,6 +114,18 @@ export class PlaylistUploaderComponent {
         }
     }
 
+    /**
+     * Parse and store uploaded playlist
+     * @param fileLoadedEvent
+     */
+    handlePlaylist(fileLoadedEvent: any): void {
+        const result = (fileLoadedEvent.target as FileReader).result;
+        const array = (result as string).split('\n');
+        const playlist = this.m3uService.parsePlaylist(array);
+        const playlistObject = this.savePlaylist(this.files[0].name, playlist);
+        this.setPlaylist(playlistObject);
+    }
+
     /**
      * Navigates to the video player route
      */
@@ -132,18 +139,20 @@ export class PlaylistUploaderComponent {
      * @param name name of the playlist
      * @param playlist playlist to save
      */
-    savePlaylist(name: string, playlist: any): void {
-        this.dbService
-            .add<Playlist>('playlists', {
-                filename: name,
-                title: name,
-                playlist,
-                importDate: new Date().getMilliseconds(),
-                lastUsage: new Date().getMilliseconds(),
-            })
-            .then(() => {
-                console.log('playlist saved!');
-            });
+    savePlaylist(name: string, playlist: any): Playlist {
+        const playlistObject = {
+            id: guid(),
+            filename: name,
+            title: name,
+            playlist,
+            importDate: new Date().getMilliseconds(),
+            lastUsage: new Date().getMilliseconds(),
+            favorites: [],
+        };
+        this.dbService.add<Playlist>('playlists', playlistObject).then(() => {
+            console.log('playlist saved!');
+        });
+        return playlistObject;
     }
 
     /**
@@ -160,15 +169,19 @@ export class PlaylistUploaderComponent {
 
     /**
      * Sets the given playlist as active for the current session
-     * @param playlist m3u playlist
-     * // TODO: use typings from iptv-parser lib
+     * @param playlist playlist object
      */
-    setPlaylist(playlist: { header: any; items: Channel[] }): void {
+    setPlaylist(playlist: Playlist): void {
         this.channelStore.reset();
-        const channels = playlist.items.map((element) =>
-            createChannel(element)
+        const favorites = playlist.favorites || [];
+        const channels = playlist.playlist.items.map((element) =>
+            createChannel(element, favorites)
         );
         this.channelStore.upsertMany(channels);
+        this.channelStore.update(() => ({
+            favorites,
+            playlistId: playlist.id,
+        }));
         this.navigateToPlayer();
     }
 
diff --git a/src/app/components/recent-playlists/recent-playlists.component.html b/src/app/components/recent-playlists/recent-playlists.component.html
index 58ea921e4..acdb0c2bd 100644
--- a/src/app/components/recent-playlists/recent-playlists.component.html
+++ b/src/app/components/recent-playlists/recent-playlists.component.html
@@ -1,6 +1,6 @@
 <mat-nav-list>
     <div mat-subheader>Recently added playlists ({{playlists.length}})</div>
-    <a mat-list-item *ngFor="let item of playlists; last as last" (click)="playlistClicked.emit(item.playlist);">
+    <a mat-list-item *ngFor="let item of playlists; last as last" (click)="playlistClicked.emit(item)">
         <mat-icon mat-list-icon>folder</mat-icon>
         <div mat-line>{{ item.title || item.filename }}</div>
         <div mat-line>Channels: {{ item.playlist?.items?.length }}</div>
diff --git a/src/app/components/recent-playlists/recent-playlists.component.ts b/src/app/components/recent-playlists/recent-playlists.component.ts
index 5bb584227..4e4b8e76a 100644
--- a/src/app/components/recent-playlists/recent-playlists.component.ts
+++ b/src/app/components/recent-playlists/recent-playlists.component.ts
@@ -11,7 +11,7 @@ export class RecentPlaylistsComponent {
     @Input() playlists: Playlist[];
 
     /** Emits on playlist selection */
-    @Output() playlistClicked: EventEmitter<any> = new EventEmitter();
+    @Output() playlistClicked: EventEmitter<Playlist> = new EventEmitter();
 
     /** Emits on playlist remove click */
     @Output() removeClicked: EventEmitter<Playlist> = new EventEmitter();
diff --git a/src/app/components/video-player/video-player.component.css b/src/app/components/video-player/video-player.component.css
index 9962dd102..e470c9ff4 100644
--- a/src/app/components/video-player/video-player.component.css
+++ b/src/app/components/video-player/video-player.component.css
@@ -1,21 +1,21 @@
 #video-player {
-  width: 100%;
-  height: calc(100vh - 70px);
+    width: 100%;
+    height: calc(100vh - 72px);
 }
 
 .main-container {
-  position: absolute;
-  top: 0;
-  bottom: 0;
-  left: 0;
-  right: 0;
+    position: absolute;
+    top: 0;
+    bottom: 0;
+    left: 0;
+    right: 0;
 }
 
 .mat-drawer-content {
-  background: #000;
+    background: #000;
 }
 
 .mat-drawer {
-  width: 400px;
-  min-width: 400px;
+    width: 400px;
+    min-width: 400px;
 }
diff --git a/src/app/components/video-player/video-player.component.ts b/src/app/components/video-player/video-player.component.ts
index 28b941b6b..da04883ba 100644
--- a/src/app/components/video-player/video-player.component.ts
+++ b/src/app/components/video-player/video-player.component.ts
@@ -37,15 +37,17 @@ export class VideoPlayerComponent implements OnInit {
      */
     @ViewChild('sidenav') sideNav: MatSidenav;
 
+    /**
+     * Creates an instance of VideoPlayerOmponent
+     * @param channelQuery akita's channel query
+     */
     constructor(private channelQuery: ChannelQuery) {}
 
     /**
      * Sets video player and subscribes to channel list from the store
      */
     ngOnInit(): void {
-        this.channels$ = this.channelQuery
-            .selectAll()
-            .pipe(map((channels) => _.groupBy(channels, 'group.title')));
+        this.channels$ = this.channelQuery.selectAll();
         this.videoPlayer = document.getElementById(
             'video-player'
         ) as HTMLVideoElement;
diff --git a/src/app/material.module.ts b/src/app/material.module.ts
index 94ef566ba..d27ebc893 100644
--- a/src/app/material.module.ts
+++ b/src/app/material.module.ts
@@ -7,6 +7,7 @@ import { MatInputModule } from '@angular/material/input';
 import { MatListModule } from '@angular/material/list';
 import { MatProgressBarModule } from '@angular/material/progress-bar';
 import { MatSidenavModule } from '@angular/material/sidenav';
+import { MatTabsModule } from '@angular/material/tabs';
 import { MatToolbarModule } from '@angular/material/toolbar';
 import { MatSnackBarModule } from '@angular/material/snack-bar';
 
@@ -21,6 +22,7 @@ import { MatSnackBarModule } from '@angular/material/snack-bar';
         MatProgressBarModule,
         MatSidenavModule,
         MatSnackBarModule,
+        MatTabsModule,
         MatToolbarModule,
     ],
 })
diff --git a/src/app/state/channel.model.ts b/src/app/state/channel.model.ts
index 5b54c902e..fbf01b977 100755
--- a/src/app/state/channel.model.ts
+++ b/src/app/state/channel.model.ts
@@ -11,17 +11,22 @@ export interface Channel {
     group: {
         title: string;
     };
+    fav: boolean;
 }
 
 /**
  * Creates new channel object based on the given fields
  * @param params partial channel object
  */
-export function createChannel(params: Partial<Channel>) {
+export function createChannel(
+    params: Partial<Channel>,
+    favoritesList: string[]
+) {
     return {
-        id: guid(),
+        id: params.url,
         name: params.name,
         group: params.group,
         url: params.url,
+        fav: favoritesList.includes(params.url),
     } as Channel;
 }
diff --git a/src/app/state/channel.query.ts b/src/app/state/channel.query.ts
index c70e66197..98ed902e3 100644
--- a/src/app/state/channel.query.ts
+++ b/src/app/state/channel.query.ts
@@ -4,9 +4,7 @@ import { ChannelStore, ChannelState } from './channel.store';
 
 @Injectable({ providedIn: 'root' })
 export class ChannelQuery extends QueryEntity<ChannelState> {
-
-  constructor(protected store: ChannelStore) {
-    super(store);
-  }
-
+    constructor(protected store: ChannelStore) {
+        super(store);
+    }
 }
diff --git a/src/app/state/channel.store.ts b/src/app/state/channel.store.ts
index 835607d1b..6af5c49ab 100644
--- a/src/app/state/channel.store.ts
+++ b/src/app/state/channel.store.ts
@@ -2,12 +2,22 @@ import { Injectable } from '@angular/core';
 import { EntityState, EntityStore, StoreConfig } from '@datorama/akita';
 import { Channel } from './channel.model';
 
-export interface ChannelState extends EntityState<Channel> {}
+export interface ChannelState extends EntityState<Channel> {
+    favorites: string[];
+    playlistId: string;
+}
 
 @Injectable({ providedIn: 'root' })
 @StoreConfig({ name: 'channel', resettable: true })
 export class ChannelStore extends EntityStore<ChannelState> {
     constructor() {
-        super();
+        super({
+            favorites: [],
+            playlistId: '',
+        });
+    }
+
+    setChannels(channels: Channel[]): void {
+        this.upsertMany(channels);
     }
 }
diff --git a/src/manifest.json b/src/manifest.json
index 40dfb764d..24ad61ebd 100644
--- a/src/manifest.json
+++ b/src/manifest.json
@@ -6,7 +6,14 @@
     "version": "0.0.1",
     "version_name": "0.0.1",
     "icons": {
-        "144": "assets/icons/icon-144x144.png"
+        "72": "assets/icons/icon-72x72.png",
+        "96": "assets/icons/icon-96x96.png",
+        "128": "assets/icons/icon-128x128.png",
+        "144": "assets/icons/icon-144x144.png",
+        "152": "assets/icons/icon-152x152.png",
+        "192": "assets/icons/icon-192x192.png",
+        "384": "assets/icons/icon-384x384.png",
+        "512": "assets/icons/icon-512x512.png"
     },
     "app": {
         "background": {