diff --git a/lang/en.json b/lang/en.json
index 6060a141..06ababf5 100755
--- a/lang/en.json
+++ b/lang/en.json
@@ -2135,6 +2135,10 @@
                 "plural": "Experiences"
             },
             "failure": "Failure",
+            "favorite": {
+                "single": "Favorite",
+                "plural": "Favorites"
+            },
             "fear": "Fear",
             "features": "Features",
             "formula": "Formula",
diff --git a/module/applications/sheets/actors/character.mjs b/module/applications/sheets/actors/character.mjs
index 594269be..e7733826 100644
--- a/module/applications/sheets/actors/character.mjs
+++ b/module/applications/sheets/actors/character.mjs
@@ -33,7 +33,7 @@ export default class CharacterSheet extends DHBaseActorSheet {
             advanceResourceDie: CharacterSheet.#advanceResourceDie,
             cancelBeastform: CharacterSheet.#cancelBeastform,
             useDowntime: this.useDowntime,
-            viewParty: CharacterSheet.#viewParty,
+            viewParty: CharacterSheet.#viewParty
         },
         window: {
             resizable: true,
@@ -49,6 +49,10 @@ export default class CharacterSheet extends DHBaseActorSheet {
             {
                 dragSelector: '[data-item-id][draggable="true"], [data-item-id] [draggable="true"]',
                 dropSelector: null
+            },
+            {
+                dragSelector: null,
+                dropSelector: '.character-sidebar-sheet'
             }
         ],
         contextMenus: [
@@ -261,6 +265,24 @@ export default class CharacterSheet extends DHBaseActorSheet {
      */
     async _prepareSidebarContext(context, _options) {
         context.isDeath = this.document.system.deathMoveViable;
+        context.sidebarFavoritesEmpty = this.document.system.sidebarFavorites.length === 0;
+
+        const initialFavorites = this.document.system.usedUnarmed
+            ? {
+                  equipment: {
+                      label: 'DAGGERHEART.GENERAL.equipment',
+                      items: [{ type: 'attack', value: this.document.system.usedUnarmed }]
+                  }
+              }
+            : {};
+        context.sidebarFavorites = this.document.system.sidebarFavorites.reduce((acc, item) => {
+            const type = item.type === 'domainCard' ? item.type : 'equipment';
+            const label = type === 'domainCard' ? 'DAGGERHEART.GENERAL.loadout' : 'DAGGERHEART.GENERAL.equipment';
+            if (!acc[type]) acc[type] = { label, items: [] };
+            acc[type].items.push({ type: item.type, value: item });
+
+            return acc;
+        }, initialFavorites);
     }
 
     /**
@@ -310,7 +332,9 @@ export default class CharacterSheet extends DHBaseActorSheet {
                 icon: 'fa-solid fa-arrow-up',
                 condition: target => {
                     const doc = getDocFromElementSync(target);
-                    return doc && doc.system.inVault;
+                    const inCharacterSidebar =
+                        this.document.type === 'character' && target.closest('.items-sidebar-list');
+                    return doc && doc.system.inVault && !inCharacterSidebar;
                 },
                 callback: async target => {
                     const doc = await getDocFromElement(target);
@@ -324,7 +348,9 @@ export default class CharacterSheet extends DHBaseActorSheet {
                 icon: 'fa-solid fa-bolt-lightning',
                 condition: target => {
                     const doc = getDocFromElementSync(target);
-                    return doc && doc.system.inVault;
+                    const inCharacterSidebar =
+                        this.document.type === 'character' && target.closest('.items-sidebar-list');
+                    return doc && doc.system.inVault && !inCharacterSidebar;
                 },
                 callback: async (target, event) => {
                     const doc = await getDocFromElement(target);
@@ -338,15 +364,20 @@ export default class CharacterSheet extends DHBaseActorSheet {
                     }
                     const type = 'effect';
                     const cls = game.system.api.models.actions.actionsTypes[type];
-                    const action = new cls({
-                        ...cls.getSourceConfig(doc.system),
-                        type: type,
-                        chatDisplay: false,
-                        cost: [{
-                            key: 'stress',
-                            value: doc.system.recallCost
-                        }]
-                    }, { parent: doc.system });
+                    const action = new cls(
+                        {
+                            ...cls.getSourceConfig(doc.system),
+                            type: type,
+                            chatDisplay: false,
+                            cost: [
+                                {
+                                    key: 'stress',
+                                    value: doc.system.recallCost
+                                }
+                            ]
+                        },
+                        { parent: doc.system }
+                    );
                     const config = await action.use(event);
                     if (config) {
                         return doc.update({ 'system.inVault': false });
@@ -358,7 +389,9 @@ export default class CharacterSheet extends DHBaseActorSheet {
                 icon: 'fa-solid fa-arrow-down',
                 condition: target => {
                     const doc = getDocFromElementSync(target);
-                    return doc && !doc.system.inVault;
+                    const inCharacterSidebar =
+                        this.document.type === 'character' && target.closest('.items-sidebar-list');
+                    return doc && !doc.system.inVault && !inCharacterSidebar;
                 },
                 callback: async target => (await getDocFromElement(target)).update({ 'system.inVault': true })
             }
@@ -900,32 +933,32 @@ export default class CharacterSheet extends DHBaseActorSheet {
             return;
         }
 
-        const buttons = parties.map((p) => {
-            const button = document.createElement("button");
-            button.type = "button";
-            button.classList.add("plain");
-            const img = document.createElement("img");
+        const buttons = parties.map(p => {
+            const button = document.createElement('button');
+            button.type = 'button';
+            button.classList.add('plain');
+            const img = document.createElement('img');
             img.src = p.img;
             button.append(img);
-            const name = document.createElement("span");
+            const name = document.createElement('span');
             name.textContent = p.name;
             button.append(name);
-            button.addEventListener("click", () => {
+            button.addEventListener('click', () => {
                 p.sheet?.render({ force: true });
                 game.tooltip.dismissLockedTooltips();
             });
             return button;
         });
 
-        const html = document.createElement("div");
-        html.classList.add("party-list");
+        const html = document.createElement('div');
+        html.classList.add('party-list');
         html.append(...buttons);
-        
+
         game.tooltip.dismissLockedTooltips();
         game.tooltip.activate(target, {
             html,
-            locked: true,
-        })
+            locked: true
+        });
     }
 
     /**
@@ -948,6 +981,11 @@ export default class CharacterSheet extends DHBaseActorSheet {
     }
 
     async _onDropItem(event, item) {
+        const sidebarDrop = event.target.closest('.character-sidebar-sheet');
+        if (sidebarDrop) {
+            return this._onSidebarDrop(event, item);
+        }
+
         if (this.document.uuid === item.parent?.uuid) {
             return super._onDropItem(event, item);
         }
@@ -986,4 +1024,18 @@ export default class CharacterSheet extends DHBaseActorSheet {
         itemData = itemData instanceof Array ? itemData : [itemData];
         return this.document.createEmbeddedDocuments('Item', itemData);
     }
+
+    async _onSidebarDrop(event, item) {
+        if (!item.testUserPermission(game.user, 'OWNER')) return;
+
+        if (!(item instanceof game.system.api.documents.DHItem)) return;
+        if (!this.document.items.get(item.id)) return;
+
+        const allowedItemTypes = ['domainCard', 'feature', 'weapon', 'armor', 'loot', 'consumable'];
+        if (!allowedItemTypes.includes(item.type)) return;
+
+        if (this.document.system.sidebarFavorites.some(x => x.id === item.id)) return;
+
+        this.document.update({ 'system.sidebarFavorites': [...this.document.system.sidebarFavorites, item] });
+    }
 }
diff --git a/module/applications/sheets/api/application-mixin.mjs b/module/applications/sheets/api/application-mixin.mjs
index 903caa2a..2d83b54b 100644
--- a/module/applications/sheets/api/application-mixin.mjs
+++ b/module/applications/sheets/api/application-mixin.mjs
@@ -539,6 +539,39 @@ export default function DHApplicationMixin(Base) {
                     }
                 });
 
+            options.push({
+                name: 'Unfavorite',
+                icon: 'fa-regular fa-star',
+                condition: target => {
+                    return this.document.type === 'character' && target.closest('.items-sidebar-list');
+                },
+                callback: async (target, _event) => {
+                    const doc = await getDocFromElement(target);
+                    this.document.update({
+                        'system.sidebarFavorites': this.document.system.sidebarFavorites.filter(x => x.id !== doc.id)
+                    });
+                }
+            });
+
+            options.push({
+                name: 'Favorite',
+                icon: 'fa-solid fa-star',
+                condition: target => {
+                    const doc = getDocFromElementSync(target);
+                    return (
+                        !(doc instanceof game.system.api.documents.DhActiveEffect) &&
+                        this.document.type === 'character' &&
+                        !target.closest('.items-sidebar-list')
+                    );
+                },
+                callback: async (target, _event) => {
+                    const doc = await getDocFromElement(target);
+                    this.document.update({
+                        'system.sidebarFavorites': [...this.document.system.sidebarFavorites, doc]
+                    });
+                }
+            });
+
             return options.map(option => ({
                 ...option,
                 icon: `<i class="${option.icon}"></i>`
diff --git a/module/data/actor/character.mjs b/module/data/actor/character.mjs
index eba46f10..4bb47ebc 100644
--- a/module/data/actor/character.mjs
+++ b/module/data/actor/character.mjs
@@ -5,6 +5,7 @@ import BaseDataActor, { commonActorRules } from './base.mjs';
 import { attributeField, resourceField, stressDamageReductionRule, bonusField } from '../fields/actorField.mjs';
 import { ActionField } from '../fields/actionField.mjs';
 import DHCharacterSettings from '../../applications/sheets-configs/character-settings.mjs';
+import ForeignDocumentUUIDArrayField from '../fields/foreignDocumentUUIDArrayField.mjs';
 
 export default class DhCharacter extends BaseDataActor {
     /**@override */
@@ -284,7 +285,8 @@ export default class DhCharacter extends BaseDataActor {
                 burden: new fields.SchemaField({
                     ignore: new fields.BooleanField()
                 })
-            })
+            }),
+            sidebarFavorites: new ForeignDocumentUUIDArrayField({ type: 'Item' })
         };
     }
 
diff --git a/styles/less/sheets/actors/character/sidebar.less b/styles/less/sheets/actors/character/sidebar.less
index 04baf2b9..976dffcd 100644
--- a/styles/less/sheets/actors/character/sidebar.less
+++ b/styles/less/sheets/actors/character/sidebar.less
@@ -561,6 +561,25 @@
             overflow-y: auto;
             scrollbar-color: light-dark(@dark-blue, @golden) transparent;
         }
+
+        .empty-favorites {
+            width: 100%;
+            display: flex;
+            align-items: center;
+            justify-content: center;
+            box-sizing: border-box;
+            height: 40px;
+            border: 1px dashed light-dark(@dark-blue-50, @beige-50);
+            border-radius: 3px;
+            color: light-dark(@dark-blue-50, @beige-50);
+            text-align: center;
+            margin-bottom: 10px;
+            margin-left: 4px;
+
+            span {
+                width: 250px;
+            }
+        }
     }
 
     .equipment-section,
diff --git a/templates/sheets/actors/character/sidebar.hbs b/templates/sheets/actors/character/sidebar.hbs
index 0db2bf42..58827518 100644
--- a/templates/sheets/actors/character/sidebar.hbs
+++ b/templates/sheets/actors/character/sidebar.hbs
@@ -96,45 +96,27 @@
     </div>
 
     <div class="shortcut-items-section">
-        <div class="equipment-section">
-            <div class="title">
-                <side-line-div class="invert"></side-line-div>
-                <h3>{{localize "DAGGERHEART.GENERAL.equipment"}}</h3>
-                <side-line-div></side-line-div>
-            </div>
-            <ul class="items-sidebar-list">
-                {{#if document.system.usedUnarmed}}
-                {{> 'daggerheart.inventory-item-compact'
-                    item=document.system.usedUnarmed
-                    type='attack'
-                }}
-                {{/if}}
-                {{#each document.items as |item|}}
-                {{#if item.system.equipped}}
-                {{> 'daggerheart.inventory-item-compact'
-                    item=item
-                    type=item.type
-                }}
-                {{/if}}
-                {{/each}}
-            </ul>
-        </div>
-        <div class="loadout-section">
-            <div class="title">
-                <side-line-div class="invert"></side-line-div>
-                <h3>{{localize "DAGGERHEART.GENERAL.loadout"}}</h3>
-                <side-line-div></side-line-div>
-            </div>
-            <ul class="items-sidebar-list">
-                {{#each document.system.domainCards.loadout as |card|}}
-                {{> 'daggerheart.inventory-item-compact'
-                    item=card
-                    type='domainCard'
-                }}
-
-                {{/each}}
-            </ul>
-        </div>
+        {{#if sidebarFavoritesEmpty}}
+            <div class="empty-favorites"><span>{{localize "DAGGERHEART.GENERAL.favorite.plural"}}</span></div>
+        {{else}}
+            {{#each sidebarFavorites as |category|}}
+                <div class="equipment-section">
+                    <div class="title">
+                        <side-line-div class="invert"></side-line-div>
+                        <h3>{{localize category.label}}</h3>
+                        <side-line-div></side-line-div>
+                    </div>
+                    <ul class="items-sidebar-list">
+                        {{#each category.items as |item|}}
+                            {{> 'daggerheart.inventory-item-compact'
+                                item=item.value
+                                type=item.type
+                            }}
+                        {{/each}}
+                    </ul>
+                </div>
+            {{/each}}
+        {{/if}}
         <div class="experience-section">
             <div class="title">
                 <side-line-div class="invert"></side-line-div>
diff --git a/templates/sheets/global/partials/inventory-item-compact.hbs b/templates/sheets/global/partials/inventory-item-compact.hbs
index bbdf9116..6f7205fa 100644
--- a/templates/sheets/global/partials/inventory-item-compact.hbs
+++ b/templates/sheets/global/partials/inventory-item-compact.hbs
@@ -58,11 +58,6 @@
                 data-tooltip="DAGGERHEART.UI.Tooltip.{{ifThen item.system.equipped 'unequip' 'equip' }}">
                 <i class="fa-solid fa-fw fa-shield"></i>
             </a>
-            {{else if (eq type 'domainCard')}}
-            <a data-action="toggleVault"
-                data-tooltip="DAGGERHEART.UI.Tooltip.{{ifThen item.system.inVault 'sendToLoadout' 'sendToVault' }}">
-                <i class="fa-solid fa-fw {{ifThen item.system.inVault 'fa-arrow-up' 'fa-arrow-down'}}"></i>
-            </a>
             {{else if (eq type 'effect')}}
             <a data-action="toggleEffect"
                 data-tooltip="DAGGERHEART.UI.Tooltip.{{ifThen item.disabled 'enableEffect' 'disableEffect' }}">