diff --git a/backend/open_webui/models/channels.py b/backend/open_webui/models/channels.py
index e7a9c14730..657ceedde2 100644
--- a/backend/open_webui/models/channels.py
+++ b/backend/open_webui/models/channels.py
@@ -638,6 +638,30 @@ class ChannelTable:
             await db.commit()
             return True
 
+    async def update_member_mute_status(
+        self, channel_id: str, user_id: str, is_channel_muted: bool, db: Optional[AsyncSession] = None
+    ) -> bool:
+        async with get_async_db_context(db) as db:
+            membership = await db.scalar(select(ChannelMember).filter_by(channel_id=channel_id, user_id=user_id))
+            now = time.time_ns()
+            if membership is None:
+                # Accessible legacy channels may not have a membership yet. Muting is not reading.
+                membership = ChannelMember(
+                    id=str(uuid.uuid4()),
+                    channel_id=channel_id,
+                    user_id=user_id,
+                    status='joined',
+                    is_active=True,
+                    joined_at=now,
+                    last_read_at=None,
+                    created_at=now,
+                )
+                db.add(membership)
+            membership.is_channel_muted = is_channel_muted
+            membership.updated_at = now
+            await db.commit()
+            return membership.is_channel_muted
+
     async def update_member_last_read_at(
         self, channel_id: str, user_id: str, db: Optional[AsyncSession] = None
     ) -> bool:
diff --git a/backend/open_webui/routers/channels.py b/backend/open_webui/routers/channels.py
index 1b00358605..71d45733c5 100644
--- a/backend/open_webui/routers/channels.py
+++ b/backend/open_webui/routers/channels.py
@@ -179,6 +179,7 @@ async def check_channels_access(request: Request, user: Optional[UserModel] = No
 
 
 class ChannelListItemResponse(ChannelModel):
+    is_channel_muted: bool = False
     user_ids: Optional[list[str]] = None  # 'dm' channels only
     users: Optional[list[UserIdNameStatusResponse]] = None  # 'dm' channels only
 
@@ -229,6 +230,7 @@ async def get_channels(
                 users=users,
                 last_message_at=last_message_at,
                 unread_count=unread_count,
+                is_channel_muted=channel_member.is_channel_muted if channel_member else False,
             )
         )
 
@@ -391,6 +393,7 @@ async def create_new_channel(
 
 
 class ChannelFullResponse(ChannelResponse):
+    is_channel_muted: bool = False
     user_ids: Optional[list[str]] = None  # 'group'/'dm' channels only
     users: Optional[list[UserIdNameStatusResponse]] = None  # 'group'/'dm' channels only
 
@@ -444,6 +447,7 @@ async def get_channel_by_id(
                 'write_access': True,
                 'user_count': len(users),
                 'last_read_at': channel_member.last_read_at if channel_member else None,
+                'is_channel_muted': channel_member.is_channel_muted if channel_member else False,
                 'unread_count': unread_count,
             }
         )
@@ -481,6 +485,7 @@ async def get_channel_by_id(
                 'write_access': write_access or user.role == 'admin',
                 'user_count': user_count,
                 'last_read_at': channel_member.last_read_at if channel_member else None,
+                'is_channel_muted': channel_member.is_channel_muted if channel_member else False,
                 'unread_count': unread_count,
             }
         )
@@ -605,6 +610,37 @@ class UpdateActiveMemberForm(BaseModel):
     is_active: bool
 
 
+class UpdateMutedMemberForm(BaseModel):
+    is_channel_muted: bool
+
+
+@router.post('/{id}/members/mute', response_model=UpdateMutedMemberForm)
+async def update_member_mute_status(
+    request: Request,
+    id: str,
+    form_data: UpdateMutedMemberForm,
+    user=Depends(get_verified_user),
+    db: AsyncSession = Depends(get_async_session),
+):
+    await check_channels_access(request, user)
+    channel = await Channels.get_channel_by_id(id, db=db)
+    if not channel:
+        raise HTTPException(status_code=status.HTTP_404_NOT_FOUND, detail=ERROR_MESSAGES.NOT_FOUND)
+    if channel.type in ['group', 'dm']:
+        if not await Channels.is_user_channel_member(id, user.id, db=db):
+            raise HTTPException(status_code=status.HTTP_403_FORBIDDEN, detail=ERROR_MESSAGES.DEFAULT())
+    elif user.role != 'admin' and not await channel_has_access(user.id, channel, permission='read', db=db):
+        raise HTTPException(status_code=status.HTTP_403_FORBIDDEN, detail=ERROR_MESSAGES.DEFAULT())
+
+    is_channel_muted = await Channels.update_member_mute_status(id, user.id, form_data.is_channel_muted, db=db)
+    await emit_to_users(
+        'events:channel',
+        {'channel_id': id, 'data': {'type': 'channel:mute', 'data': {'is_channel_muted': is_channel_muted}}},
+        [user.id],
+    )
+    return {'is_channel_muted': is_channel_muted}
+
+
 @router.post('/{id}/members/active', response_model=bool)
 async def update_is_active_member_by_id_and_user_id(
     request: Request,
@@ -1065,11 +1101,15 @@ async def send_notification(request, channel, message, active_user_ids, db=None)
     users = await get_channel_users_with_access(channel, 'read', db=db)
 
     # Batch fetch channel members in 1 query (fixes N+1)
-    member_ids = {m.user_id for m in await Channels.get_members_by_channel_id(channel.id, db=db)}
+    members = {m.user_id: m for m in await Channels.get_members_by_channel_id(channel.id, db=db)}
+    mentioned_user_ids = {m['id'] for m in extract_mentions(message.content) if m['id_type'] == 'U'}
     url = f'{webui_url}/channels/{channel.id}'
 
     for u in users:
-        if (u.id not in active_user_ids) and u.id in member_ids:
+        member = members.get(u.id)
+        if member and member.is_channel_muted and u.id not in mentioned_user_ids:
+            continue
+        if (u.id not in active_user_ids) and member:
             if enable_user_webhooks and u.settings:
                 await publish_event(
                     request,
diff --git a/src/lib/apis/channels/index.ts b/src/lib/apis/channels/index.ts
index 5b85837404..01a036ce8c 100644
--- a/src/lib/apis/channels/index.ts
+++ b/src/lib/apis/channels/index.ts
@@ -230,6 +230,24 @@ export const updateChannelMemberActiveStatusById = async (
 	return res;
 };
 
+export const updateChannelMemberMuteStatusById = async (
+	token: string,
+	channel_id: string,
+	is_channel_muted: boolean
+): Promise<{ is_channel_muted: boolean }> => {
+	const res = await fetch(`${WEBUI_API_BASE_URL}/channels/${channel_id}/members/mute`, {
+		method: 'POST',
+		headers: {
+			Accept: 'application/json',
+			'Content-Type': 'application/json',
+			authorization: `Bearer ${token}`
+		},
+		body: JSON.stringify({ is_channel_muted })
+	});
+	if (!res.ok) throw (await res.json()).detail;
+	return res.json();
+};
+
 type UpdateMembersForm = {
 	user_ids?: string[];
 	group_ids?: string[];
diff --git a/src/lib/components/channel/ChannelMenu.svelte b/src/lib/components/channel/ChannelMenu.svelte
new file mode 100644
index 0000000000..2a02a02202
--- /dev/null
+++ b/src/lib/components/channel/ChannelMenu.svelte
@@ -0,0 +1,138 @@
+<script lang="ts">
+	import { getContext } from 'svelte';
+	import { toast } from 'svelte-sonner';
+	import { channels } from '$lib/stores';
+	import { updateChannelMemberMuteStatusById } from '$lib/apis/channels';
+	import Dropdown from '$lib/components/common/Dropdown.svelte';
+	import DropdownMenu from '$lib/components/common/DropdownMenu.svelte';
+	import EllipsisHorizontal from '$lib/components/icons/EllipsisHorizontal.svelte';
+	import Check from '$lib/components/icons/Check.svelte';
+	import AppNotification from '$lib/components/icons/AppNotification.svelte';
+	import BellSlash from '$lib/components/icons/BellSlash.svelte';
+	import Settings from '$lib/components/icons/Settings.svelte';
+	import EyeSlash from '$lib/components/icons/EyeSlash.svelte';
+
+	const i18n = getContext<any>('i18n');
+	export let channel: { id: string; type?: string | null; is_channel_muted?: boolean };
+	export let sidebar = false;
+	export let onEdit: (() => void) | undefined = undefined;
+	export let onHide: (() => Promise<void>) | undefined = undefined;
+	let show = false;
+	let saving = false;
+	$: isMuted =
+		$channels.find((item) => item.id === channel.id)?.is_channel_muted ??
+		channel.is_channel_muted ??
+		false;
+
+	const setMuted = async (muted: boolean) => {
+		if (saving) return;
+		if (muted === isMuted) {
+			show = false;
+			return;
+		}
+		saving = true;
+		const channelId = channel.id;
+		try {
+			const result = await updateChannelMemberMuteStatusById(localStorage.token, channelId, muted);
+			channels.update((items) =>
+				items.map((item) => (item.id === channelId ? { ...item, ...result } : item))
+			);
+			if (channel.id === channelId) channel = { ...channel, ...result };
+			show = false;
+		} catch (error) {
+			toast.error(`${error}`);
+		} finally {
+			saving = false;
+		}
+	};
+</script>
+
+<div class:sidebar class:open={show} class="channel-menu self-center shrink-0">
+	<Dropdown bind:show align={sidebar ? 'start' : 'end'}>
+		<button
+			type="button"
+			class="flex {sidebar
+				? 'size-4.5'
+				: 'size-7'} items-center justify-center rounded-lg text-gray-500 dark:text-gray-400 hover:bg-gray-100 dark:hover:bg-gray-800 touch-auto"
+			aria-label={$i18n.t(channel.type === 'dm' ? 'Conversation options' : 'Channel options')}
+			aria-haspopup="menu"
+			aria-expanded={show}
+		>
+			<EllipsisHorizontal className="size-3.5" />
+		</button>
+		<div slot="content">
+			<DropdownMenu className="w-44 border-gray-200/30! dark:border-gray-700/30!">
+				<div class="px-2 pt-1 pb-0.5 text-[0.6875rem] text-gray-500 dark:text-gray-400">
+					{$i18n.t('Notifications')}
+				</div>
+				<button
+					type="button"
+					role="menuitemradio"
+					aria-checked={!isMuted}
+					disabled={saving}
+					class="disabled:opacity-50"
+					on:click={() => setMuted(false)}
+				>
+					<AppNotification className="size-3.5 shrink-0" />
+					<span class="flex-1 text-left">{$i18n.t('All messages')}</span>
+					<span class="size-3.5"
+						>{#if !isMuted}<Check className="size-3.5" />{/if}</span
+					>
+				</button>
+				<button
+					type="button"
+					role="menuitemradio"
+					aria-checked={isMuted}
+					disabled={saving}
+					class="disabled:opacity-50"
+					on:click={() => setMuted(true)}
+				>
+					<BellSlash className="size-3.5 shrink-0" />
+					<span class="flex-1 text-left">{$i18n.t('Mentions only')}</span>
+					<span class="size-3.5"
+						>{#if isMuted}<Check className="size-3.5" />{/if}</span
+					>
+				</button>
+				{#if onEdit || onHide}<hr class="border-gray-200/30 dark:border-gray-700/30" />{/if}
+				{#if onEdit}
+					<button
+						type="button"
+						role="menuitem"
+						on:click={() => {
+							onEdit?.();
+							show = false;
+						}}
+					>
+						<Settings className="size-3.5 shrink-0" />
+						<span>{$i18n.t('Edit channel')}</span>
+					</button>
+				{/if}
+				{#if onHide}
+					<button
+						type="button"
+						role="menuitem"
+						on:click={async () => {
+							await onHide?.();
+							show = false;
+						}}
+					>
+						<EyeSlash className="size-3.5 shrink-0" />
+						<span>{$i18n.t('Hide conversation')}</span>
+					</button>
+				{/if}
+			</DropdownMenu>
+		</div>
+	</Dropdown>
+</div>
+
+<style>
+	@media (hover: hover) and (pointer: fine) {
+		.sidebar:not(.open) {
+			opacity: 0;
+		}
+		:global(.group:hover) .sidebar,
+		:global(.group:focus-within) .sidebar {
+			opacity: 1;
+		}
+	}
+</style>
diff --git a/src/lib/components/channel/Navbar.svelte b/src/lib/components/channel/Navbar.svelte
index abb70b3845..cb28494a34 100644
--- a/src/lib/components/channel/Navbar.svelte
+++ b/src/lib/components/channel/Navbar.svelte
@@ -19,6 +19,7 @@
 	import Users from '../icons/Users.svelte';
 	import Pin from '../icons/Pin.svelte';
 	import PinnedMessagesModal from './PinnedMessagesModal.svelte';
+	import ChannelMenu from './ChannelMenu.svelte';
 
 	const i18n: any = getContext('i18n');
 
@@ -188,6 +189,7 @@
 							</button>
 						</Tooltip>
 					{/if}
+					<ChannelMenu {channel} />
 				{/if}
 			</div>
 		</div>
diff --git a/src/lib/components/icons/BellSlash.svelte b/src/lib/components/icons/BellSlash.svelte
new file mode 100644
index 0000000000..343a22fb21
--- /dev/null
+++ b/src/lib/components/icons/BellSlash.svelte
@@ -0,0 +1,20 @@
+<script lang="ts">
+	export let className = 'size-4';
+	export let strokeWidth = '1.5';
+</script>
+
+<svg
+	xmlns="http://www.w3.org/2000/svg"
+	class={className}
+	viewBox="0 0 24 24"
+	fill="none"
+	stroke="currentColor"
+	stroke-width={strokeWidth}
+	aria-hidden="true"
+>
+	<path
+		stroke-linecap="round"
+		stroke-linejoin="round"
+		d="m3 3 18 18M9 19a3 3 0 0 0 6 0M6 6.5A6 6 0 0 0 6 8c0 7-3 7-3 9h14M10 2.35A6 6 0 0 1 18 8c0 1.6.16 2.84.41 3.83"
+	/>
+</svg>
diff --git a/src/lib/components/layout/Sidebar.svelte b/src/lib/components/layout/Sidebar.svelte
index d3058fe5b5..e9b2fccf20 100644
--- a/src/lib/components/layout/Sidebar.svelte
+++ b/src/lib/components/layout/Sidebar.svelte
@@ -654,6 +654,12 @@
 		}
 	});
 
+	onMount(() => {
+		const socketInstance = $socket;
+		socketInstance?.on('connect', initChannels);
+		return () => socketInstance?.off('connect', initChannels);
+	});
+
 	onMount(async () => {
 		try {
 			const width = Number(localStorage.getItem('sidebarWidth'));
@@ -716,11 +722,6 @@
 		}
 
 		const socketInstance = $socket;
-		const scheduleChannelRefresh = () => {
-			socketInstance?.off('connect', initChannels);
-			socketInstance?.once('connect', initChannels);
-		};
-		socketInstance?.on('access:updated', scheduleChannelRefresh);
 		socketInstance?.on('events', chatActiveEventHandler);
 		socketInstance?.on('connect', refreshChatRows);
 
@@ -760,8 +761,6 @@
 				dropZone.removeEventListener('dragleave', onDragLeave);
 			}
 
-			socketInstance?.off('access:updated', scheduleChannelRefresh);
-			socketInstance?.off('connect', initChannels);
 			socketInstance?.off('events', chatActiveEventHandler);
 			socketInstance?.off('connect', refreshChatRows);
 
diff --git a/src/lib/components/layout/Sidebar/ChannelItem.svelte b/src/lib/components/layout/Sidebar/ChannelItem.svelte
index 582146218c..0b13a5aa1f 100644
--- a/src/lib/components/layout/Sidebar/ChannelItem.svelte
+++ b/src/lib/components/layout/Sidebar/ChannelItem.svelte
@@ -10,13 +10,13 @@
 	import { WEBUI_API_BASE_URL } from '$lib/constants';
 
 	import ChannelModal from './ChannelModal.svelte';
+	import ChannelMenu from '$lib/components/channel/ChannelMenu.svelte';
+	import BellSlash from '$lib/components/icons/BellSlash.svelte';
 	import ProfilePreview from '$lib/components/channel/Messages/Message/ProfilePreview.svelte';
 	import Emoji from '$lib/components/common/Emoji.svelte';
 	import HashtagIcon from '$lib/components/icons/Hashtag.svelte';
 	import LockIcon from '$lib/components/icons/Lock.svelte';
-	import SettingsIcon from '$lib/components/icons/Settings.svelte';
 	import UserIcon from './icons/User.svelte';
-	import XMarkIcon from './icons/XMark.svelte';
 
 	export let onUpdate: Function = () => {};
 
@@ -84,7 +84,8 @@
 	class=" w-full {className} rounded-xl flex relative group hover:bg-gray-100 dark:hover:bg-gray-900 {$page
 		.url.pathname === `/channels/${channel.id}`
 		? 'bg-gray-100 dark:bg-gray-900 selected'
-		: ''} {channel?.type === 'dm' ? 'px-1 py-[0.1875rem]' : 'p-1'}  {channel?.unread_count > 0
+		: ''} {channel?.type === 'dm' ? 'px-1 py-[0.1875rem]' : 'p-1'}  {channel?.unread_count > 0 &&
+	!channel?.is_channel_muted
 		? 'font-normal dark:text-white text-black'
 		: ' dark:text-gray-400 text-gray-600'} cursor-pointer select-none"
 >
@@ -193,7 +194,17 @@
 					{/if}
 				{/if}
 
-				{#if channel?.unread_count > 0}
+				{#if channel?.is_channel_muted}
+					<span
+						class="shrink-0 text-gray-400 dark:text-gray-500"
+						title={$i18n.t('Muted. Direct @mentions can still notify you.')}
+						aria-label={$i18n.t('Mentions only')}
+					>
+						<BellSlash className="size-3" />
+					</span>
+				{/if}
+
+				{#if channel?.unread_count > 0 && !channel?.is_channel_muted}
 					<div
 						class="inline-flex h-4 min-w-4 shrink-0 items-center justify-center rounded-md bg-sky-500/10 px-1 text-[0.625rem] font-semibold leading-4 text-sky-600 dark:bg-sky-400/10 dark:text-sky-300"
 						title={$i18n.t('Unread')}
@@ -205,44 +216,25 @@
 		</div>
 	</a>
 
-	{#if ['dm'].includes(channel?.type)}
-		<div class="ml-0.5 mr-1 hover-reveal self-center flex shrink-0 items-center dark:text-gray-300">
-			<button
-				type="button"
-				class="p-0.5 dark:hover:bg-gray-850 rounded-lg touch-auto"
-				on:click={async (e) => {
-					e.stopImmediatePropagation();
-					e.stopPropagation();
-
-					channels.update((chs) =>
-						chs.filter((ch) => {
-							return ch.id !== channel.id;
-						})
-					);
-
-					await updateChannelMemberActiveStatusById(localStorage.token, channel.id, false).catch(
-						(error) => {
+	<div class="ml-0.5 mr-1 self-center shrink-0">
+		<ChannelMenu
+			{channel}
+			sidebar
+			onEdit={channel.type !== 'dm' && ($user?.role === 'admin' || channel.user_id === $user?.id)
+				? () => {
+						showEditChannelModal = true;
+					}
+				: undefined}
+			onHide={channel.type === 'dm'
+				? async () => {
+						try {
+							await updateChannelMemberActiveStatusById(localStorage.token, channel.id, false);
+							channels.update((items) => items.filter((item) => item.id !== channel.id));
+						} catch (error) {
 							toast.error(`${error}`);
 						}
-					);
-				}}
-			>
-				<XMarkIcon className="size-3.5" />
-			</button>
-		</div>
-	{:else if $user?.role === 'admin' || channel.user_id === $user?.id}
-		<div class="ml-0.5 mr-1 hover-reveal self-center flex shrink-0 items-center dark:text-gray-300">
-			<button
-				type="button"
-				class="p-0.5 dark:hover:bg-gray-850 rounded-lg touch-auto"
-				on:click={(e) => {
-					e.stopImmediatePropagation();
-					e.stopPropagation();
-					showEditChannelModal = true;
-				}}
-			>
-				<SettingsIcon className="size-3.5" strokeWidth="1.5" />
-			</button>
-		</div>
-	{/if}
+					}
+				: undefined}
+		/>
+	</div>
 </div>
diff --git a/src/lib/components/layout/Sidebar/FolderHoverPreview.svelte b/src/lib/components/layout/Sidebar/FolderHoverPreview.svelte
new file mode 100644
index 0000000000..321c07f001
--- /dev/null
+++ b/src/lib/components/layout/Sidebar/FolderHoverPreview.svelte
@@ -0,0 +1,114 @@
+<script lang="ts">
+	import { getContext, onMount } from 'svelte';
+	import { LinkPreview } from 'bits-ui';
+	import { getFolderById, getSharedFolderChats } from '$lib/apis/folders';
+	import { models } from '$lib/stores';
+	import Emoji from '$lib/components/common/Emoji.svelte';
+	import Spinner from '$lib/components/common/Spinner.svelte';
+	import FolderIcon from './icons/Folder.svelte';
+	import EditPencil from './icons/EditPencil.svelte';
+	import ChatBubble from '$lib/components/icons/ChatBubble.svelte';
+	import Document from '$lib/components/icons/Document.svelte';
+	import Sparkles from '$lib/components/icons/Sparkles.svelte';
+
+	const i18n: any = getContext('i18n');
+
+	export let folder;
+	export let isWritable = false;
+	export let onEdit = () => {};
+
+	let details: { data?: { model_ids?: string[]; files?: unknown[] } } | null = null;
+	let total: number | null = null;
+	let loading = true;
+
+	$: modelNames = (details?.data?.model_ids ?? []).map(
+		(id) => $models.find((model) => model.id === id)?.name ?? id
+	);
+	$: files = details?.data?.files ?? [];
+
+	onMount(async () => {
+		const [loadedFolder, chats] = await Promise.all([
+			getFolderById(localStorage.token, folder.id).catch(() => null),
+			getSharedFolderChats(localStorage.token, folder.id, { page: 1 }).catch(() => null)
+		]);
+		details = loadedFolder;
+		total = chats?.total ?? null;
+		loading = false;
+	});
+</script>
+
+<LinkPreview.Portal>
+	<LinkPreview.Content
+		class="z-[9999] hidden w-[20rem] max-w-[calc(100vw-1.5rem)] max-h-[calc(100dvh-1.5rem)] overflow-y-auto rounded-2xl bg-white text-[0.8125rem] font-normal text-gray-900 shadow-[0_16px_40px_-28px_rgba(0,0,0,0.55)] ring-1 ring-black/5 md:block dark:bg-gray-850 dark:text-gray-100 dark:ring-white/10"
+		side="right"
+		align="start"
+		sideOffset={12}
+	>
+		<div class="space-y-1.5 px-3 py-2">
+			<div class="flex items-center gap-2 leading-5">
+				<div class="shrink-0 text-gray-500 dark:text-gray-400">
+					{#if folder.meta?.icon}
+						<Emoji className="size-3.5" shortCode={folder.meta.icon} />
+					{:else}
+						<FolderIcon className="size-3.5" />
+					{/if}
+				</div>
+				<div class="min-w-0 break-words">{folder.name}</div>
+			</div>
+			<div class="flex items-center gap-2 text-xs text-gray-500 dark:text-gray-400">
+				<ChatBubble className="size-3.5 shrink-0" />
+				{#if loading}
+					<Spinner className="size-3" />
+				{:else if total !== null}
+					<span>{total.toLocaleString()} {$i18n.t(total === 1 ? 'Chat' : 'Chats')}</span>
+				{:else}
+					<span>{$i18n.t('Something went wrong :/')}</span>
+				{/if}
+				{#if !folder.shared && (folder.unread_count ?? 0) > 0}
+					<span>·</span>
+					<span>{folder.unread_count.toLocaleString()} {$i18n.t('Unread')}</span>
+				{/if}
+			</div>
+		</div>
+
+		{#if modelNames.length || files.length || folder.shared}
+			<div class="space-y-1.5 border-t border-gray-50/60 px-3 py-2 dark:border-gray-800/25">
+				{#if folder.shared}
+					<div class="text-xs text-gray-500 dark:text-gray-400">
+						{$i18n.t('Shared')}{folder.owner_name ? ` · ${folder.owner_name}` : ''}
+					</div>
+				{/if}
+				{#if modelNames.length}
+					<div class="flex items-start gap-2">
+						<Sparkles className="mt-0.5 size-3.5 shrink-0 text-gray-500 dark:text-gray-400" />
+						<div class="min-w-0 break-words" title={$i18n.t('Default Model')}>
+							{modelNames.join(', ')}
+						</div>
+					</div>
+				{/if}
+				{#if files.length}
+					<div class="flex items-center gap-2">
+						<Document className="size-3.5 shrink-0 text-gray-500 dark:text-gray-400" />
+						<span>
+							{$i18n.t('Knowledge')} · {files.length.toLocaleString()}
+							{$i18n.t(files.length === 1 ? 'File' : 'Files')}
+						</span>
+					</div>
+				{/if}
+			</div>
+		{/if}
+
+		{#if isWritable}
+			<div class="border-t border-gray-50/60 p-1 dark:border-gray-800/25">
+				<button
+					type="button"
+					class="flex h-[1.6875rem] w-full items-center gap-2 rounded-xl px-2 text-[0.8125rem] transition hover:bg-gray-50/60 dark:hover:bg-gray-800/60"
+					on:click={onEdit}
+				>
+					<EditPencil className="size-3.5 text-gray-500 dark:text-gray-400" />
+					{$i18n.t('Edit Folder')}
+				</button>
+			</div>
+		{/if}
+	</LinkPreview.Content>
+</LinkPreview.Portal>
diff --git a/src/lib/components/layout/Sidebar/RecursiveFolder.svelte b/src/lib/components/layout/Sidebar/RecursiveFolder.svelte
index 867c1b2c8e..a147f1e872 100644
--- a/src/lib/components/layout/Sidebar/RecursiveFolder.svelte
+++ b/src/lib/components/layout/Sidebar/RecursiveFolder.svelte
@@ -5,6 +5,7 @@
 	const dispatch = createEventDispatcher();
 
 	import DOMPurify from 'dompurify';
+	import { LinkPreview } from 'bits-ui';
 	import fileSaver from 'file-saver';
 	const { saveAs } = fileSaver;
 
@@ -40,6 +41,7 @@
 	import MoreHorizontal from './icons/MoreHorizontal.svelte';
 
 	import ChatItem from './ChatItem.svelte';
+	import FolderHoverPreview from './FolderHoverPreview.svelte';
 	import FolderMenu from './Folders/FolderMenu.svelte';
 	import FolderShareModal from './Folders/FolderShareModal.svelte';
 	import DeleteConfirmDialog from '$lib/components/common/ConfirmDialog.svelte';
@@ -65,6 +67,7 @@
 
 	let folderElement;
 
+	let openPreview = false;
 	let showFolderModal = false;
 	let showShareModal = false;
 	let edit = false;
@@ -77,6 +80,18 @@
 
 	let clickTimer = null;
 
+	$: if (
+		$mobile ||
+		edit ||
+		dragged ||
+		parentDragged ||
+		draggedOver ||
+		showFolderModal ||
+		showShareModal
+	) {
+		openPreview = false;
+	}
+
 	let name = '';
 
 	const formatUnreadCount = (count) =>
@@ -812,59 +827,78 @@
 							class="w-full h-full bg-transparent outline-hidden"
 						/>
 					{:else}
-						<a
-							href={`/folders/${folderId}`}
-							draggable="false"
-							class="flex min-w-0 flex-1 items-center gap-1.5"
-							on:dblclick={(e) => {
-								if (!isWritable || e.ctrlKey || e.metaKey || e.shiftKey || e.altKey) return;
-								if (clickTimer) {
-									clearTimeout(clickTimer); // cancel the single-click action
-									clickTimer = null;
-								}
-								renameHandler();
-							}}
-							on:click={(e) => {
-								e.stopPropagation();
-								if (e.button !== 0 || e.ctrlKey || e.metaKey || e.shiftKey || e.altKey) return;
-								e.preventDefault();
-								if (clickTimer) {
-									clearTimeout(clickTimer);
-									clickTimer = null;
-								}
-
-								clickTimer = setTimeout(async () => {
-									await openFolderHandler();
-									clickTimer = null;
-								}, 100); // 100ms delay (typical double-click threshold)
-							}}
-							on:keydown={(e) => {
-								if (e.currentTarget !== e.target) return;
-								if (e.key === ' ' && !e.ctrlKey && !e.metaKey && !e.shiftKey && !e.altKey) {
-									e.preventDefault();
-									openFolderHandler();
-								}
-							}}
+						<LinkPreview.Root
+							openDelay={300}
+							closeDelay={0}
+							disabled={$mobile || dragged || parentDragged || draggedOver}
+							bind:open={openPreview}
 						>
-							<div class="min-w-0 truncate">
-								{folders[folderId].name}
-							</div>
+							<LinkPreview.Trigger
+								href={`/folders/${folderId}`}
+								draggable="false"
+								class="flex min-w-0 flex-1 items-center gap-1.5"
+								ondblclick={(e) => {
+									if (!isWritable || e.ctrlKey || e.metaKey || e.shiftKey || e.altKey) return;
+									if (clickTimer) {
+										clearTimeout(clickTimer); // cancel the single-click action
+										clickTimer = null;
+									}
+									renameHandler();
+								}}
+								onclick={(e) => {
+									openPreview = false;
+									e.stopPropagation();
+									if (e.button !== 0 || e.ctrlKey || e.metaKey || e.shiftKey || e.altKey) return;
+									e.preventDefault();
+									if (clickTimer) {
+										clearTimeout(clickTimer);
+										clickTimer = null;
+									}
 
-							{#if !folders[folderId]?.shared && (folders[folderId]?.unread_count ?? 0) > 0}
-								<div
-									class="inline-flex h-4 min-w-4 shrink-0 items-center justify-center rounded-md bg-sky-500/10 px-1 text-[0.625rem] font-semibold leading-4 text-sky-600 dark:bg-sky-400/10 dark:text-sky-300"
-									title={$i18n.t('Unread')}
-								>
-									{formatUnreadCount(folders[folderId].unread_count)}
+									clickTimer = setTimeout(async () => {
+										await openFolderHandler();
+										clickTimer = null;
+									}, 100); // 100ms delay (typical double-click threshold)
+								}}
+								onkeydown={(e) => {
+									if (e.currentTarget !== e.target) return;
+									if (e.key === ' ' && !e.ctrlKey && !e.metaKey && !e.shiftKey && !e.altKey) {
+										e.preventDefault();
+										openFolderHandler();
+									}
+								}}
+							>
+								<div class="min-w-0 truncate">
+									{folders[folderId].name}
 								</div>
+
+								{#if !folders[folderId]?.shared && (folders[folderId]?.unread_count ?? 0) > 0}
+									<div
+										class="inline-flex h-4 min-w-4 shrink-0 items-center justify-center rounded-md bg-sky-500/10 px-1 text-[0.625rem] font-semibold leading-4 text-sky-600 dark:bg-sky-400/10 dark:text-sky-300"
+										title={$i18n.t('Unread')}
+									>
+										{formatUnreadCount(folders[folderId].unread_count)}
+									</div>
+								{/if}
+							</LinkPreview.Trigger>
+							{#if openPreview}
+								<FolderHoverPreview
+									folder={folders[folderId]}
+									{isWritable}
+									onEdit={() => {
+										openPreview = false;
+										showFolderModal = true;
+									}}
+								/>
 							{/if}
-						</a>
+						</LinkPreview.Root>
 					{/if}
 				</div>
 
 				{#if isWritable}
 					<button
 						class="absolute z-10 right-2 hover-reveal self-center flex items-center dark:text-gray-300"
+						on:pointerdown={() => (openPreview = false)}
 					>
 						<FolderMenu
 							canShare={$user?.role === 'admin' || !folders[folderId]?.shared}
diff --git a/src/lib/i18n/locales/en-US/translation.json b/src/lib/i18n/locales/en-US/translation.json
index 335907fad7..c2a607f996 100644
--- a/src/lib/i18n/locales/en-US/translation.json
+++ b/src/lib/i18n/locales/en-US/translation.json
@@ -1613,6 +1613,13 @@
 	"Multi-factor authentication": "",
 	"Multipart Upload": "",
 	"Mute": "",
+	"All messages": "",
+	"Mentions only": "",
+	"Channel options": "",
+	"Conversation options": "",
+	"Edit channel": "",
+	"Hide conversation": "",
+	"Muted. Direct @mentions can still notify you.": "",
 	"Muted": "",
 	"My Terminal": "",
 	"Name": "",
diff --git a/src/lib/stores/index.ts b/src/lib/stores/index.ts
index 6be097947e..a22e3d041f 100644
--- a/src/lib/stores/index.ts
+++ b/src/lib/stores/index.ts
@@ -55,7 +55,16 @@ export const TTSWorker = writable(null);
 export const chatId = writable('');
 export const chatTitle = writable('');
 
-export const channels = writable([]);
+type ChannelListItem = {
+	id: string;
+	type: string | null;
+	is_channel_muted: boolean;
+	unread_count: number;
+	last_message_at: number | null;
+	[key: string]: unknown;
+};
+
+export const channels = writable<ChannelListItem[]>([]);
 export const channelId = writable(null);
 
 export { chats, pinnedChats } from './chatList';
diff --git a/src/lib/utils/channelNotifications.ts b/src/lib/utils/channelNotifications.ts
new file mode 100644
index 0000000000..39bb81679e
--- /dev/null
+++ b/src/lib/utils/channelNotifications.ts
@@ -0,0 +1,7 @@
+export const shouldNotifyChannelMessage = (
+	isMuted: boolean,
+	content: string,
+	userId: string
+): boolean =>
+	!isMuted ||
+	Array.from(content.matchAll(/<@U:([^|>]+)(?:\|[^>]+)?>/g)).some((match) => match[1] === userId);
diff --git a/src/routes/+layout.svelte b/src/routes/+layout.svelte
index d482219f1d..aa66ae180f 100644
--- a/src/routes/+layout.svelte
+++ b/src/routes/+layout.svelte
@@ -82,7 +82,8 @@
 	import MfaManagement from '$lib/components/auth/MfaManagement.svelte';
 	import { getOutputText } from '$lib/components/chat/Messages/structuredOutput';
 	import { getUserSettings } from '$lib/apis/users';
-	import { getChannels } from '$lib/apis/channels';
+	import { getChannelById, getChannels } from '$lib/apis/channels';
+	import { shouldNotifyChannelMessage } from '$lib/utils/channelNotifications';
 	import { resolveTerminalConnection, terminalRequest } from '$lib/apis/terminal';
 
 	const unregisterServiceWorkers = async () => {
@@ -827,6 +828,16 @@
 
 	const channelEventHandler = async (event) => {
 		console.log('channelEventHandler', event);
+		if (event.data?.type === 'channel:mute') {
+			channels.update((items) =>
+				items.map((item) =>
+					item.id === event.channel_id
+						? { ...item, is_channel_muted: event.data.data.is_channel_muted }
+						: item
+				)
+			);
+			return;
+		}
 		if (event.data?.type === 'typing') {
 			return;
 		}
@@ -901,6 +912,19 @@
 			}
 
 			if (type === 'message') {
+				const preference =
+					$channels?.find((item) => item.id === event.channel_id) ??
+					(await getChannelById(localStorage.token, event.channel_id).catch(() => null));
+				if (
+					!preference ||
+					!shouldNotifyChannelMessage(
+						preference.is_channel_muted ?? false,
+						data?.content ?? '',
+						$user?.id ?? ''
+					)
+				) {
+					return;
+				}
 				const title = `${data?.user?.name}${event?.channel?.type !== 'dm' ? ` (#${event?.channel?.name})` : ''}`;
 				const content = data?.content?.replace(
 					/<([@#])([^|>\s]+)(?:\|([^>]*))?>/g,