diff --git a/apps/webapp/test/e2e_tests/pageManager/webapp/components/conversationSidebar.component.ts b/apps/webapp/test/e2e_tests/pageManager/webapp/components/conversationSidebar.component.ts
index e3b52bb0b5a..0815ea141da 100644
--- a/apps/webapp/test/e2e_tests/pageManager/webapp/components/conversationSidebar.component.ts
+++ b/apps/webapp/test/e2e_tests/pageManager/webapp/components/conversationSidebar.component.ts
@@ -34,6 +34,7 @@ export class ConversationSidebar {
   readonly manageTeamButton: Locator;
   readonly sidebar: Locator;
   readonly supportButton: Locator;
+  readonly favoritesButton: Locator;
 
   constructor(page: Page) {
     this.page = page;
@@ -50,6 +51,7 @@ export class ConversationSidebar {
     this.manageTeamButton = page.getByTestId('go-team-management');
     this.sidebar = page.locator(`.conversations-sidebar-items`);
     this.supportButton = page.getByRole('link', {name: 'Support'});
+    this.favoritesButton = page.getByRole('tab', {name: 'Favorites'});
   }
 
   async clickPreferencesButton() {
diff --git a/apps/webapp/test/e2e_tests/pageManager/webapp/pages/conversationList.page.ts b/apps/webapp/test/e2e_tests/pageManager/webapp/pages/conversationList.page.ts
index e0bf4a1ca77..3f9a144ee78 100644
--- a/apps/webapp/test/e2e_tests/pageManager/webapp/pages/conversationList.page.ts
+++ b/apps/webapp/test/e2e_tests/pageManager/webapp/pages/conversationList.page.ts
@@ -103,6 +103,7 @@ export class ConversationListPage {
       unarchiveButton: contextMenu.getByRole('button', {name: 'Unarchive'}),
       blockButton: contextMenu.getByRole('button', {name: 'Block'}),
       unblockButton: contextMenu.getByRole('button', {name: 'Unblock'}),
+      addToFavoritesButton: contextMenu.getByRole('button', {name: 'Add to favorites'}),
       moveToButton: contextMenu.getByRole('button', {name: 'Move to'}),
       notificationsButton: contextMenu.getByRole('menuitem', {name: 'Notifications'}),
       clearContentButton: contextMenu.getByRole('button', {name: 'Clear content'}),
diff --git a/apps/webapp/test/e2e_tests/specs/Folders/folders.spec.ts b/apps/webapp/test/e2e_tests/specs/Folders/folders.spec.ts
index 99fc0d17163..9c367f49402 100644
--- a/apps/webapp/test/e2e_tests/specs/Folders/folders.spec.ts
+++ b/apps/webapp/test/e2e_tests/specs/Folders/folders.spec.ts
@@ -57,52 +57,61 @@ async function moveConversationToFolder(pageManager: PageManager, conversationNa
 test.describe('Folders', () => {
   let userA: User;
   let userB: User;
-  let userAPageManager: PageManager;
 
   test.beforeEach(async ({createTeam, createPage, createUser}) => {
     userB = await createUser();
     const team = await createTeam('Team', {users: [userB]});
     userA = team.owner;
-    userAPageManager = await PageManager.from(createPage(withLogin(userA), withConnectedUser(userB)));
   });
 
-  test('I want to move a 1:1 conversation to a new custom folder', {tag: ['@TC-545', '@regression']}, async () => {
-    const userAPages = userAPageManager.webapp.pages;
+  test(
+    'I want to move a 1:1 conversation to a new custom folder',
+    {tag: ['@TC-545', '@regression']},
+    async ({createPage}) => {
+      const userAPageManager = await PageManager.from(createPage(withLogin(userA), withConnectedUser(userB)));
+      const userAPages = userAPageManager.webapp.pages;
 
-    const customFolderName = 'Custom-Folder';
+      const customFolderName = 'Custom-Folder';
 
-    // Step 1: User A opens 1:1 conversation with User B
-    await userAPages.conversationList().getConversation(userB.fullName).open();
-    // Step 2: User A moves 1:1 conversation with User B into new custom folder
-    await createCustomFolder(userAPageManager, userB.fullName, customFolderName);
-    // Step 3: 1:1 conversation with User B is in the custom folder
-    const actualTitle = userAPages.conversationList().conversationListHeaderTitle;
+      // Step 1: User A opens 1:1 conversation with User B
+      await userAPages.conversationList().getConversation(userB.fullName).open();
+      // Step 2: User A moves 1:1 conversation with User B into new custom folder
+      await createCustomFolder(userAPageManager, userB.fullName, customFolderName);
+      // Step 3: 1:1 conversation with User B is in the custom folder
+      const actualTitle = userAPages.conversationList().conversationListHeaderTitle;
 
-    await expect(actualTitle).toHaveText(customFolderName);
-  });
+      await expect(actualTitle).toHaveText(customFolderName);
+    },
+  );
 
-  test('I want to move a group conversation to a new custom folder', {tag: ['@TC-546', '@regression']}, async () => {
-    const userAPages = userAPageManager.webapp.pages;
+  test(
+    'I want to move a group conversation to a new custom folder',
+    {tag: ['@TC-546', '@regression']},
+    async ({createPage}) => {
+      const userAPageManager = await PageManager.from(createPage(withLogin(userA), withConnectedUser(userB)));
+      const userAPages = userAPageManager.webapp.pages;
 
-    const customFolderName = 'Custom-Folder';
-    const conversationName = 'Group Conversation with User A and User B';
+      const customFolderName = 'Custom-Folder';
+      const conversationName = 'Group Conversation with User A and User B';
 
-    await createGroup(userAPages, conversationName, [userB]);
+      await createGroup(userAPages, conversationName, [userB]);
 
-    // Step 1: User A opens group conversation with User B
-    await userAPages.conversationList().getConversation(conversationName).open();
-    // Step 2: User A moves group conversation with User B in new custom folder
-    await createCustomFolder(userAPageManager, conversationName, customFolderName);
-    // Step 3: Group conversation with User B is in the custom folder
-    const actualTitle = userAPages.conversationList().conversationListHeaderTitle;
+      // Step 1: User A opens group conversation with User B
+      await userAPages.conversationList().getConversation(conversationName).open();
+      // Step 2: User A moves group conversation with User B in new custom folder
+      await createCustomFolder(userAPageManager, conversationName, customFolderName);
+      // Step 3: Group conversation with User B is in the custom folder
+      const actualTitle = userAPages.conversationList().conversationListHeaderTitle;
 
-    await expect(actualTitle).toHaveText(customFolderName);
-  });
+      await expect(actualTitle).toHaveText(customFolderName);
+    },
+  );
 
   test(
     'I want to move a 1:1 conversation to an existing custom folder',
     {tag: ['@TC-547', '@regression']},
-    async () => {
+    async ({createPage}) => {
+      const userAPageManager = await PageManager.from(createPage(withLogin(userA), withConnectedUser(userB)));
       const {pages: userAPages, components: userAComponents} = userAPageManager.webapp;
 
       const customFolderName = 'Custom-Folder';
@@ -126,7 +135,8 @@ test.describe('Folders', () => {
   test(
     'I want to move a group conversation to an existing custom folder',
     {tag: ['@TC-548', '@regression']},
-    async () => {
+    async ({createPage}) => {
+      const userAPageManager = await PageManager.from(createPage(withLogin(userA), withConnectedUser(userB)));
       const {pages: userAPages, components: userAComponents} = userAPageManager.webapp;
 
       const customFolderName = 'Custom-Folder';
@@ -151,7 +161,8 @@ test.describe('Folders', () => {
   test.skip(
     'I want to see custom folder removed when last conversation is removed',
     {tag: ['@TC-553', '@regression']},
-    async () => {
+    async ({createPage}) => {
+      const userAPageManager = await PageManager.from(createPage(withLogin(userA), withConnectedUser(userB)));
       const userAPages = userAPageManager.webapp.pages;
 
       const customFolderName = 'Custom-Folder';
@@ -178,39 +189,155 @@ test.describe('Folders', () => {
     },
   );
 
-  test('I should not be able to create a custom folder without a name', {tag: ['@TC-560', '@regression']}, async () => {
-    const {pages: userAPages, modals: userAModals} = userAPageManager.webapp;
+  test(
+    'I should not be able to create a custom folder without a name',
+    {tag: ['@TC-560', '@regression']},
+    async ({createPage}) => {
+      const userAPageManager = await PageManager.from(createPage(withLogin(userA), withConnectedUser(userB)));
+      const {pages: userAPages, modals: userAModals} = userAPageManager.webapp;
 
-    // Step 1: User A opens 1:1 conversation with User B
-    const conversation = await userAPages.conversationList().getConversation(userB.fullName).open();
-    // Step 2: User A wants to move 1:1 conversation with User B into custom folder
-    const contextMenu = await conversation.openContextMenu();
-    await contextMenu.moveToButton.click();
-    await contextMenu.getByRole('button', {name: 'Create new folder'}).click();
+      // Step 1: User A opens 1:1 conversation with User B
+      const conversation = await userAPages.conversationList().getConversation(userB.fullName).open();
+      // Step 2: User A wants to move 1:1 conversation with User B into custom folder
+      const contextMenu = await conversation.openContextMenu();
+      await contextMenu.moveToButton.click();
+      await contextMenu.getByRole('button', {name: 'Create new folder'}).click();
 
-    // Step 3: 'Create Folder Modal' should still be visible after click on create
-    await expect(userAModals.optionModal().actionButton).toBeDisabled();
-  });
+      // Step 3: 'Create Folder Modal' should still be visible after click on create
+      await expect(userAModals.optionModal().actionButton).toBeDisabled();
+    },
+  );
 
-  test('I should not see any traces of a deleted custom folder', {tag: ['@TC-568', '@regression']}, async () => {
-    const userAPages = userAPageManager.webapp.pages;
+  test(
+    'I should not see any traces of a deleted custom folder',
+    {tag: ['@TC-568', '@regression']},
+    async ({createPage}) => {
+      const userAPageManager = await PageManager.from(createPage(withLogin(userA), withConnectedUser(userB)));
+      const userAPages = userAPageManager.webapp.pages;
 
-    const customFolderName = 'Custom-Folder';
+      const customFolderName = 'Custom-Folder';
 
-    // Preconditions: Conversation is in custom folder
-    const conversation = await userAPages.conversationList().getConversation(userB.fullName).open();
-    await createCustomFolder(userAPageManager, userB.fullName, customFolderName);
+      // Preconditions: Conversation is in custom folder
+      const conversation = await userAPages.conversationList().getConversation(userB.fullName).open();
+      await createCustomFolder(userAPageManager, userB.fullName, customFolderName);
 
-    await test.step('User A removes conversation with User B from custom folder', async () => {
-      const contextMenu = await conversation.openContextMenu();
-      await contextMenu.getByRole('button', {name: `Remove from "${customFolderName}"`}).click();
-    });
+      await test.step('User A removes conversation with User B from custom folder', async () => {
+        const contextMenu = await conversation.openContextMenu();
+        await contextMenu.getByRole('button', {name: `Remove from "${customFolderName}"`}).click();
+      });
 
-    await test.step('User A tries to move conversation with User B back into the folder, custom folder name should no longer be visible in the folder menu', async () => {
-      await conversation.open();
-      const contextMenu = await conversation.openContextMenu();
-      await contextMenu.moveToButton.click();
-      await expect(contextMenu.getByRole('button', {name: customFolderName})).not.toBeVisible();
-    });
-  });
+      await test.step('User A tries to move conversation with User B back into the folder, custom folder name should no longer be visible in the folder menu', async () => {
+        await conversation.open();
+        const contextMenu = await conversation.openContextMenu();
+        await contextMenu.moveToButton.click();
+        await expect(contextMenu.getByRole('button', {name: customFolderName})).not.toBeVisible();
+      });
+    },
+  );
+
+  test(
+    'I want to see 1:1 and group conversations in Favorites folder',
+    {tag: ['@TC-742', '@regression']},
+    async ({createPage}) => {
+      const [userAPageManager, userBPageManager] = await Promise.all([
+        createPage(withLogin(userA), withConnectedUser(userB)),
+        createPage(withLogin(userB)),
+      ]);
+
+      const {pages: userAPages, components: userAComponents} = PageManager.from(userAPageManager).webapp;
+      const userBPages = PageManager.from(userBPageManager).webapp.pages;
+
+      const groupName = 'Group Name';
+
+      // Preconditions: User A and User B are in a group conversation created by User B
+      await createGroup(userBPages, groupName, [userA]);
+
+      await test.step('User A adds group conversation with User B to Favorites', async () => {
+        const contextMenu = await userAPages.conversationList().getConversation(groupName).openContextMenu();
+        await contextMenu.addToFavoritesButton.click();
+
+        const actualTitle = userAPages.conversationList().conversationListHeaderTitle;
+        await expect(actualTitle).toHaveText('Favorites');
+
+        await userAComponents.conversationSidebar().clickAllConversationsButton();
+      });
+
+      await test.step('User A adds 1:1 with User B to Favorites', async () => {
+        const contextMenu = await userAPages.conversationList().getConversation(userB.fullName).openContextMenu();
+        await contextMenu.addToFavoritesButton.click();
+
+        const actualTitle = userAPages.conversationList().conversationListHeaderTitle;
+        await expect(actualTitle).toHaveText('Favorites');
+
+        await userAComponents.conversationSidebar().clickAllConversationsButton();
+        await userAPages.conversationList().getConversation(groupName).open();
+      });
+
+      await test.step('User B sends message in 1:1 conversation with User A', async () => {
+        await userBPages.conversationList().getConversation(userA.fullName, {protocol: 'mls'}).open();
+        await userBPages.conversation().sendMessage('Direct');
+      });
+
+      await test.step('User A sees notification in Favorites and opens it', async () => {
+        await expect(userAComponents.conversationSidebar().favoritesButton.getByTestId('unread-badge')).toBeVisible();
+        await userAComponents.conversationSidebar().favoritesButton.click();
+        await expect(userAPages.conversationList().getConversation(userB.fullName).unreadIndicator).toBeVisible();
+        await userAPages.conversationList().getConversation(userB.fullName, {protocol: 'mls'}).open();
+        await expect(userAPages.conversation().getMessage({content: 'Direct', sender: userB})).toBeVisible();
+      });
+
+      await test.step('User B sends message in group conversation with User A', async () => {
+        await userBPages.conversationList().getConversation(groupName).open();
+        await userBPages.conversation().sendMessage('Group');
+      });
+
+      await test.step('User A sees notification in Favorites and opens it', async () => {
+        await expect(userAComponents.conversationSidebar().favoritesButton.getByTestId('unread-badge')).toBeVisible();
+        await expect(userAPages.conversationList().getConversation(groupName).unreadIndicator).toBeVisible();
+        await userAPages.conversationList().getConversation(groupName).open();
+        await expect(userAPages.conversation().getMessage({content: 'Group', sender: userB})).toBeVisible();
+      });
+
+      await test.step('User B removes User A from group conversation', async () => {
+        await userBPages.conversationList().getConversation(groupName).open();
+        await userBPages.conversation().toggleGroupInformation();
+
+        await expect(userBPages.conversationDetails().groupMembers.filter({hasText: userA.fullName})).toBeVisible();
+
+        await userBPages.conversationDetails().openParticipantDetails(userA.fullName);
+        await userBPages.participantDetails().removeFromGroup();
+      });
+
+      await test.step('User A still sees group conversation in Favorites', async () => {
+        const actualTitle = userAPages.conversationList().conversationListHeaderTitle;
+        await expect(actualTitle).toHaveText('Favorites');
+        await expect(userAPages.conversationList().getConversation(groupName)).toBeVisible();
+      });
+
+      await test.step('User A removes 1:1 and group conversation with User B from Favorites', async () => {
+        const contextMenuDirectConversation = await userAPages
+          .conversationList()
+          .getConversation(userB.fullName)
+          .openContextMenu();
+        await contextMenuDirectConversation.getByRole('button', {name: 'Remove from favorites'}).click();
+
+        const contextMenuGroupConversation = await userAPages
+          .conversationList()
+          .getConversation(groupName)
+          .openContextMenu();
+        await contextMenuGroupConversation.getByRole('button', {name: 'Remove from favorites'}).click();
+      });
+
+      await test.step('User A sees empty Favorites folder', async () => {
+        await expect(userAPages.conversationList().getConversation(userB.fullName)).not.toBeVisible();
+        await expect(userAPages.conversationList().getConversation(groupName)).not.toBeVisible();
+      });
+
+      await test.step('User A sees 1:1 and group conversation with User B in All Conversation View', async () => {
+        await userAComponents.conversationSidebar().clickAllConversationsButton();
+        await expect(userAPages.conversationList().getConversation(userB.fullName)).toBeVisible();
+        await expect(userAPages.conversationList().getConversation(groupName)).toBeVisible();
+      });
+    },
+  );
 });