diff --git a/packages/frontend/editor-ui/src/app/components/WorkflowCard.vue b/packages/frontend/editor-ui/src/app/components/WorkflowCard.vue
index 05bab772950..597a2434e0d 100644
--- a/packages/frontend/editor-ui/src/app/components/WorkflowCard.vue
+++ b/packages/frontend/editor-ui/src/app/components/WorkflowCard.vue
@@ -32,6 +32,7 @@ import {
 } from '@/features/collaboration/projects/projects.types';
 import type { PathItem } from '@n8n/design-system/components/N8nBreadcrumbs/Breadcrumbs.vue';
 import { useFoldersStore } from '@/features/core/folders/folders.store';
+import { useFavoritesStore } from '@/app/stores/favorites.store';
 
 import {
 	N8nActionToggle,
@@ -61,6 +62,7 @@ const WORKFLOW_LIST_ITEM_ACTIONS = {
 	ENABLE_MCP_ACCESS: 'enableMCPAccess',
 	REMOVE_MCP_ACCESS: 'removeMCPAccess',
 	UNPUBLISH: 'unpublish',
+	TOGGLE_FAVORITE: 'toggleFavorite',
 };
 
 const props = withDefaults(
@@ -118,6 +120,7 @@ const workflowsListStore = useWorkflowsListStore();
 const projectsStore = useProjectsStore();
 const foldersStore = useFoldersStore();
 const mcpStore = useMCPStore();
+const favoritesStore = useFavoritesStore();
 const workflowActivate = useWorkflowActivate();
 const hiddenBreadcrumbsItemsAsync = ref<Promise<PathItem[]>>(new Promise(() => {}));
 const cachedHiddenBreadcrumbsItems = ref<PathItem[]>([]);
@@ -188,6 +191,13 @@ const actions = computed(() => {
 		},
 	];
 
+	items.push({
+		label: favoritesStore.isFavorite(props.data.id)
+			? locale.baseText('favorites.remove')
+			: locale.baseText('favorites.add'),
+		value: WORKFLOW_LIST_ITEM_ACTIONS.TOGGLE_FAVORITE,
+	});
+
 	if (
 		workflowPermissions.value.read &&
 		canCreateWorkflow.value &&
@@ -392,6 +402,9 @@ async function onAction(action: string) {
 		case WORKFLOW_LIST_ITEM_ACTIONS.UNPUBLISH:
 			await unpublishWorkflow();
 			break;
+		case WORKFLOW_LIST_ITEM_ACTIONS.TOGGLE_FAVORITE:
+			await favoritesStore.toggleFavorite(props.data.id, 'workflow');
+			break;
 	}
 }
 
diff --git a/packages/frontend/editor-ui/src/features/collaboration/projects/components/FavoritesSidebarCompact.vue b/packages/frontend/editor-ui/src/features/collaboration/projects/components/FavoritesSidebarCompact.vue
new file mode 100644
index 00000000000..bad4dee2ed1
--- /dev/null
+++ b/packages/frontend/editor-ui/src/features/collaboration/projects/components/FavoritesSidebarCompact.vue
@@ -0,0 +1,183 @@
+<script lang="ts" setup>
+import { computed, onBeforeUnmount, ref } from 'vue';
+import { N8nIcon, N8nMenuItem, N8nPopover, N8nText } from '@n8n/design-system';
+import type { IMenuItem } from '@n8n/design-system/types';
+import { useI18n } from '@n8n/i18n';
+import { VIEWS } from '@/app/constants';
+import { useFavoritesStore } from '@/app/stores/favorites.store';
+import { useProjectsStore } from '../projects.store';
+import { DATA_TABLE_DETAILS } from '@/features/core/dataTable/constants';
+
+const locale = useI18n();
+const favoritesStore = useFavoritesStore();
+const projectsStore = useProjectsStore();
+
+const show = ref(false);
+let closeTimer: ReturnType<typeof setTimeout> | null = null;
+
+function onMouseEnter() {
+	if (closeTimer !== null) {
+		clearTimeout(closeTimer);
+		closeTimer = null;
+	}
+	show.value = true;
+}
+
+function onMouseLeave() {
+	closeTimer = setTimeout(() => {
+		show.value = false;
+	}, 150);
+}
+
+onBeforeUnmount(() => {
+	if (closeTimer !== null) clearTimeout(closeTimer);
+});
+
+const favoriteWorkflowItems = computed<IMenuItem[]>(() =>
+	favoritesStore.favorites
+		.filter((f) => f.resourceType === 'workflow')
+		.map((f) => ({
+			id: `favorite-workflow-${f.resourceId}`,
+			label: f.resourceName,
+			icon: 'log-in' as IMenuItem['icon'],
+			route: { to: { name: VIEWS.WORKFLOW, params: { name: f.resourceId } } },
+		})),
+);
+
+const favoriteProjectItems = computed<IMenuItem[]>(() =>
+	favoritesStore.favorites
+		.filter((f) => f.resourceType === 'project')
+		.map((f) => {
+			const project = projectsStore.myProjects.find((p) => p.id === f.resourceId);
+			return {
+				id: `favorite-project-${f.resourceId}`,
+				label: f.resourceName,
+				icon: (project?.icon as IMenuItem['icon']) ?? ('layers' as IMenuItem['icon']),
+				route: {
+					to: { name: VIEWS.PROJECTS_WORKFLOWS, params: { projectId: f.resourceId } },
+				},
+			};
+		}),
+);
+
+const favoriteDataTableItems = computed<IMenuItem[]>(() =>
+	favoritesStore.favorites
+		.filter((f) => f.resourceType === 'dataTable' && f.resourceProjectId)
+		.map((f) => ({
+			id: `favorite-datatable-${f.resourceId}`,
+			label: f.resourceName,
+			icon: 'table' as IMenuItem['icon'],
+			route: {
+				to: {
+					name: DATA_TABLE_DETAILS,
+					params: { projectId: f.resourceProjectId, id: f.resourceId },
+				},
+			},
+		})),
+);
+
+type FavoriteGroup = {
+	type: string;
+	items: IMenuItem[];
+	showIndividualIcons: boolean;
+};
+
+const favoriteGroups = computed<FavoriteGroup[]>(() => {
+	const groups: FavoriteGroup[] = [];
+	if (favoriteProjectItems.value.length > 0) {
+		groups.push({
+			type: 'project',
+			items: favoriteProjectItems.value,
+			showIndividualIcons: true,
+		});
+	}
+	if (favoriteWorkflowItems.value.length > 0) {
+		groups.push({
+			type: 'workflow',
+			items: favoriteWorkflowItems.value,
+			showIndividualIcons: false,
+		});
+	}
+	if (favoriteDataTableItems.value.length > 0) {
+		groups.push({
+			type: 'dataTable',
+			items: favoriteDataTableItems.value,
+			showIndividualIcons: false,
+		});
+	}
+	return groups;
+});
+
+const activeTabId = computed(() => {
+	const id = projectsStore.projectNavActiveId;
+	return (Array.isArray(id) ? id[0] : id) ?? undefined;
+});
+
+const hasFavorites = computed(() => favoritesStore.favorites.length > 0);
+</script>
+
+<template>
+	<N8nPopover
+		v-if="hasFavorites"
+		side="right"
+		align="start"
+		:side-offset="8"
+		:open="show"
+		width="220px"
+		:suppress-auto-focus="true"
+		@update:open="show = $event"
+	>
+		<template #trigger>
+			<div :class="$style.trigger" @mouseenter="onMouseEnter" @mouseleave="onMouseLeave">
+				<N8nIcon icon="star" size="medium" />
+			</div>
+		</template>
+		<template #content>
+			<div :class="$style.content" @mouseenter="onMouseEnter" @mouseleave="onMouseLeave">
+				<N8nText :class="$style.title" size="small" bold color="text-light">
+					{{ locale.baseText('favorites.menu.title') }}
+				</N8nText>
+				<template v-for="(group, groupIndex) in favoriteGroups" :key="group.type">
+					<div v-if="groupIndex > 0" :class="$style.groupSpacer" />
+					<N8nMenuItem
+						v-for="(item, itemIndex) in group.items"
+						:key="item.id"
+						:item="
+							!group.showIndividualIcons && itemIndex > 0
+								? { ...item, icon: { type: 'icon', value: '' } as IMenuItem['icon'] }
+								: item
+						"
+						:compact="false"
+						:active="activeTabId === item.id"
+					/>
+				</template>
+			</div>
+		</template>
+	</N8nPopover>
+</template>
+
+<style lang="scss" module>
+.trigger {
+	display: flex;
+	align-items: center;
+	justify-content: center;
+	padding: var(--spacing--4xs);
+	cursor: pointer;
+	width: 100%;
+	color: var(--color--text--tint-1);
+}
+
+.content {
+	padding: var(--spacing--3xs);
+}
+
+.title {
+	display: block;
+	padding: 0 var(--spacing--xs);
+	margin-bottom: var(--spacing--4xs);
+}
+
+.groupSpacer {
+	height: var(--spacing--4xs);
+}
+</style>
diff --git a/packages/frontend/editor-ui/src/features/collaboration/projects/components/ProjectNavigation.vue b/packages/frontend/editor-ui/src/features/collaboration/projects/components/ProjectNavigation.vue
index fb5050ddfdc..27b4cc8d1b4 100644
--- a/packages/frontend/editor-ui/src/features/collaboration/projects/components/ProjectNavigation.vue
+++ b/packages/frontend/editor-ui/src/features/collaboration/projects/components/ProjectNavigation.vue
@@ -4,7 +4,7 @@ import { VIEWS } from '@/app/constants';
 import { sourceControlEventBus } from '@/features/integrations/sourceControl.ee/sourceControl.eventBus';
 import { useUsersStore } from '@/features/settings/users/users.store';
 import { useSettingsStore } from '@/app/stores/settings.store';
-import { type IconName, N8nIcon, N8nMenuItem, N8nText } from '@n8n/design-system';
+import { N8nMenuItem, N8nText } from '@n8n/design-system';
 import type { IMenuItem } from '@n8n/design-system/types';
 import { useI18n } from '@n8n/i18n';
 import { computed, onBeforeMount, onBeforeUnmount } from 'vue';
@@ -13,6 +13,7 @@ import type { ProjectListItem } from '../projects.types';
 import { CHAT_VIEW } from '@/features/ai/chatHub/constants';
 import { useFavoritesStore } from '@/app/stores/favorites.store';
 import { DATA_TABLE_DETAILS } from '@/features/core/dataTable/constants';
+import FavoritesSidebarCompact from './FavoritesSidebarCompact.vue';
 
 import { hasPermission } from '@/app/utils/rbac/permissions';
 
@@ -127,7 +128,6 @@ const favoriteDataTableItems = computed<IMenuItem[]>(() =>
 
 type FavoriteGroup = {
 	type: string;
-	icon: IconName;
 	items: IMenuItem[];
 	showIndividualIcons: boolean;
 };
@@ -138,7 +138,6 @@ const favoriteGroups = computed<FavoriteGroup[]>(() => {
 	if (favoriteProjectItems.value.length > 0) {
 		groups.push({
 			type: 'project',
-			icon: 'layers' as IconName,
 			items: favoriteProjectItems.value,
 			showIndividualIcons: true,
 		});
@@ -146,7 +145,6 @@ const favoriteGroups = computed<FavoriteGroup[]>(() => {
 	if (favoriteWorkflowItems.value.length > 0) {
 		groups.push({
 			type: 'workflow',
-			icon: 'log-in' as IconName,
 			items: favoriteWorkflowItems.value,
 			showIndividualIcons: false,
 		});
@@ -154,7 +152,6 @@ const favoriteGroups = computed<FavoriteGroup[]>(() => {
 	if (favoriteDataTableItems.value.length > 0) {
 		groups.push({
 			type: 'dataTable',
-			icon: 'table' as IconName,
 			items: favoriteDataTableItems.value,
 			showIndividualIcons: false,
 		});
@@ -162,13 +159,7 @@ const favoriteGroups = computed<FavoriteGroup[]>(() => {
 	return groups;
 });
 
-const allFavoriteItems = computed<IMenuItem[]>(() => [
-	...favoriteProjectItems.value,
-	...favoriteWorkflowItems.value,
-	...favoriteDataTableItems.value,
-]);
-
-const hasFavorites = computed(() => allFavoriteItems.value.length > 0);
+const hasFavorites = computed(() => favoritesStore.favorites.length > 0);
 
 const activeTabId = computed(() => {
 	return (
@@ -249,47 +240,26 @@ onBeforeUnmount(() => {
 				{{ locale.baseText('favorites.menu.title') }}
 			</N8nText>
 			<div :class="$style.projectItems">
-				<!-- Expanded: grouped layout -->
+				<!-- Expanded: flat list, icon hidden (but space preserved) on non-first items per group -->
 				<template v-if="!props.collapsed">
 					<template v-for="(group, groupIndex) in favoriteGroups" :key="group.type">
 						<div v-if="groupIndex > 0" :class="$style.groupSpacer" />
-						<!-- Projects: each item keeps its own icon -->
-						<template v-if="group.showIndividualIcons">
-							<N8nMenuItem
-								v-for="item in group.items"
-								:key="item.id"
-								:item="item"
-								:compact="false"
-								:active="activeTabId === item.id"
-							/>
-						</template>
-						<!-- Workflows / data tables: standalone group icon + icon-less items -->
-						<div v-else :class="$style.favoriteGroup">
-							<div :class="$style.groupIcon">
-								<N8nIcon :icon="group.icon" size="medium" />
-							</div>
-							<div :class="$style.groupItems">
-								<N8nMenuItem
-									v-for="item in group.items"
-									:key="item.id"
-									:item="{ ...item, icon: undefined }"
-									:compact="false"
-									:active="activeTabId === item.id"
-								/>
-							</div>
-						</div>
+						<N8nMenuItem
+							v-for="(item, itemIndex) in group.items"
+							:key="item.id"
+							:item="
+								!group.showIndividualIcons && itemIndex > 0
+									? { ...item, icon: { type: 'icon', value: '' } as IMenuItem['icon'] }
+									: item
+							"
+							:compact="false"
+							:active="activeTabId === item.id"
+						/>
 					</template>
 				</template>
-				<!-- Collapsed: flat list, icons on all items -->
+				<!-- Collapsed: single star trigger with hover popover -->
 				<template v-else>
-					<N8nMenuItem
-						v-for="item in allFavoriteItems"
-						:key="item.id"
-						:class="$style.collapsed"
-						:item="item"
-						:compact="true"
-						:active="activeTabId === item.id"
-					/>
+					<FavoritesSidebarCompact />
 				</template>
 			</div>
 		</template>
@@ -389,27 +359,4 @@ onBeforeUnmount(() => {
 .groupSpacer {
 	height: var(--spacing--4xs);
 }
-
-.favoriteGroup {
-	display: flex;
-	align-items: flex-start;
-}
-
-.groupIcon {
-	// Same width as N8nMenuItem's icon slot; same height as one menu item row
-	// (icon height: --spacing--lg=24px + top/bottom padding: 2×--spacing--4xs=8px)
-	width: var(--spacing--lg);
-	height: calc(var(--spacing--lg) + 2 * var(--spacing--4xs));
-	flex-shrink: 0;
-	margin-right: var(--spacing--4xs);
-	display: flex;
-	align-items: center;
-	justify-content: center;
-	color: var(--color--text--tint-1);
-}
-
-.groupItems {
-	flex: 1;
-	min-width: 0;
-}
 </style>