diff --git a/cypress/composables/projects.ts b/cypress/composables/projects.ts
index 3e1b2fd46a..09d7a341ce 100644
--- a/cypress/composables/projects.ts
+++ b/cypress/composables/projects.ts
@@ -29,7 +29,11 @@ export const getAddProjectButton = () => {
 
 	return cy.get('@button');
 };
-
+export const getAddFirstProjectButton = () => cy.getByTestId('add-first-project-button');
+export const getIconPickerButton = () => cy.getByTestId('icon-picker-button');
+export const getIconPickerTab = (tab: string) => cy.getByTestId('icon-picker-tabs').contains(tab);
+export const getIconPickerIcons = () => cy.getByTestId('icon-picker-icon');
+export const getIconPickerEmojis = () => cy.getByTestId('icon-picker-emoji');
 // export const getAddProjectButton = () =>
 // 	cy.getByTestId('universal-add').should('contain', 'Add project').should('be.visible');
 export const getProjectTabs = () => cy.getByTestId('project-tabs').find('a');
diff --git a/cypress/e2e/39-projects.cy.ts b/cypress/e2e/39-projects.cy.ts
index 327bff4f93..efd18bca74 100644
--- a/cypress/e2e/39-projects.cy.ts
+++ b/cypress/e2e/39-projects.cy.ts
@@ -15,7 +15,7 @@ import {
 	NDV,
 	MainSidebar,
 } from '../pages';
-import { clearNotifications } from '../pages/notifications';
+import { clearNotifications, successToast } from '../pages/notifications';
 import { getVisibleDropdown, getVisibleModalOverlay, getVisibleSelect } from '../utils';
 
 const workflowsPage = new WorkflowsPage();
@@ -830,4 +830,23 @@ describe('Projects', { disableAutoLogin: true }, () => {
 				.should('not.have.length');
 		});
 	});
+
+	it('should set and update project icon', () => {
+		const DEFAULT_ICON = 'fa-layer-group';
+		const NEW_PROJECT_NAME = 'Test Project';
+
+		cy.signinAsAdmin();
+		cy.visit(workflowsPage.url);
+		projects.createProject(NEW_PROJECT_NAME);
+		// New project should have default icon
+		projects.getIconPickerButton().find('svg').should('have.class', DEFAULT_ICON);
+		// Choose another icon
+		projects.getIconPickerButton().click();
+		projects.getIconPickerTab('Emojis').click();
+		projects.getIconPickerEmojis().first().click();
+		// Project should be updated with new icon
+		successToast().contains('Project icon updated successfully');
+		projects.getIconPickerButton().should('contain', '😀');
+		projects.getMenuItems().contains(NEW_PROJECT_NAME).should('contain', '😀');
+	});
 });
diff --git a/packages/cli/src/controllers/project.controller.ts b/packages/cli/src/controllers/project.controller.ts
index d16883f3dd..ab48f38c5b 100644
--- a/packages/cli/src/controllers/project.controller.ts
+++ b/packages/cli/src/controllers/project.controller.ts
@@ -51,7 +51,12 @@ export class ProjectController {
 	@Licensed('feat:projectRole:admin')
 	async createProject(req: ProjectRequest.Create) {
 		try {
-			const project = await this.projectsService.createTeamProject(req.body.name, req.user);
+			const project = await this.projectsService.createTeamProject(
+				req.body.name,
+				req.user,
+				undefined,
+				req.body.icon,
+			);
 
 			this.eventService.emit('team-project-created', {
 				userId: req.user.id,
@@ -163,7 +168,7 @@ export class ProjectController {
 	@Get('/:projectId')
 	@ProjectScope('project:read')
 	async getProject(req: ProjectRequest.Get): Promise<ProjectRequest.ProjectWithRelations> {
-		const [{ id, name, type }, relations] = await Promise.all([
+		const [{ id, name, icon, type }, relations] = await Promise.all([
 			this.projectsService.getProject(req.params.projectId),
 			this.projectsService.getProjectRelations(req.params.projectId),
 		]);
@@ -172,6 +177,7 @@ export class ProjectController {
 		return {
 			id,
 			name,
+			icon,
 			type,
 			relations: relations.map((r) => ({
 				id: r.user.id,
@@ -193,7 +199,7 @@ export class ProjectController {
 	@ProjectScope('project:update')
 	async updateProject(req: ProjectRequest.Update) {
 		if (req.body.name) {
-			await this.projectsService.updateProject(req.body.name, req.params.projectId);
+			await this.projectsService.updateProject(req.body.name, req.params.projectId, req.body.icon);
 		}
 		if (req.body.relations) {
 			try {
diff --git a/packages/cli/src/databases/entities/project.ts b/packages/cli/src/databases/entities/project.ts
index 88c4ed009a..aa867807fd 100644
--- a/packages/cli/src/databases/entities/project.ts
+++ b/packages/cli/src/databases/entities/project.ts
@@ -6,6 +6,7 @@ import type { SharedCredentials } from './shared-credentials';
 import type { SharedWorkflow } from './shared-workflow';
 
 export type ProjectType = 'personal' | 'team';
+export type ProjectIcon = { type: 'emoji' | 'icon'; value: string } | null;
 
 @Entity()
 export class Project extends WithTimestampsAndStringId {
@@ -15,6 +16,9 @@ export class Project extends WithTimestampsAndStringId {
 	@Column({ length: 36 })
 	type: ProjectType;
 
+	@Column({ type: 'json', nullable: true })
+	icon: ProjectIcon;
+
 	@OneToMany('ProjectRelation', 'project')
 	projectRelations: ProjectRelation[];
 
diff --git a/packages/cli/src/databases/migrations/common/1729607673469-AddProjectIcons.ts b/packages/cli/src/databases/migrations/common/1729607673469-AddProjectIcons.ts
new file mode 100644
index 0000000000..e2c710428a
--- /dev/null
+++ b/packages/cli/src/databases/migrations/common/1729607673469-AddProjectIcons.ts
@@ -0,0 +1,10 @@
+import type { MigrationContext, ReversibleMigration } from '@/databases/types';
+export class AddProjectIcons1729607673469 implements ReversibleMigration {
+	async up({ schemaBuilder: { addColumns, column } }: MigrationContext) {
+		await addColumns('project', [column('icon').json]);
+	}
+
+	async down({ schemaBuilder: { dropColumns } }: MigrationContext) {
+		await dropColumns('project', ['icon']);
+	}
+}
diff --git a/packages/cli/src/databases/migrations/mysqldb/index.ts b/packages/cli/src/databases/migrations/mysqldb/index.ts
index 2fc39079d4..89df273472 100644
--- a/packages/cli/src/databases/migrations/mysqldb/index.ts
+++ b/packages/cli/src/databases/migrations/mysqldb/index.ts
@@ -69,6 +69,7 @@ import { CreateProcessedDataTable1726606152711 } from '../common/1726606152711-C
 import { SeparateExecutionCreationFromStart1727427440136 } from '../common/1727427440136-SeparateExecutionCreationFromStart';
 import { AddMissingPrimaryKeyOnAnnotationTagMapping1728659839644 } from '../common/1728659839644-AddMissingPrimaryKeyOnAnnotationTagMapping';
 import { UpdateProcessedDataValueColumnToText1729607673464 } from '../common/1729607673464-UpdateProcessedDataValueColumnToText';
+import { AddProjectIcons1729607673469 } from '../common/1729607673469-AddProjectIcons';
 import { CreateTestDefinitionTable1730386903556 } from '../common/1730386903556-CreateTestDefinitionTable';
 import { AddDescriptionToTestDefinition1731404028106 } from '../common/1731404028106-AddDescriptionToTestDefinition';
 import { CreateTestMetricTable1732271325258 } from '../common/1732271325258-CreateTestMetricTable';
@@ -152,4 +153,5 @@ export const mysqlMigrations: Migration[] = [
 	CreateTestRun1732549866705,
 	AddMockedNodesColumnToTestDefinition1733133775640,
 	AddManagedColumnToCredentialsTable1734479635324,
+	AddProjectIcons1729607673469,
 ];
diff --git a/packages/cli/src/databases/migrations/postgresdb/index.ts b/packages/cli/src/databases/migrations/postgresdb/index.ts
index 605c156003..d5d72282f4 100644
--- a/packages/cli/src/databases/migrations/postgresdb/index.ts
+++ b/packages/cli/src/databases/migrations/postgresdb/index.ts
@@ -69,6 +69,7 @@ import { CreateProcessedDataTable1726606152711 } from '../common/1726606152711-C
 import { SeparateExecutionCreationFromStart1727427440136 } from '../common/1727427440136-SeparateExecutionCreationFromStart';
 import { AddMissingPrimaryKeyOnAnnotationTagMapping1728659839644 } from '../common/1728659839644-AddMissingPrimaryKeyOnAnnotationTagMapping';
 import { UpdateProcessedDataValueColumnToText1729607673464 } from '../common/1729607673464-UpdateProcessedDataValueColumnToText';
+import { AddProjectIcons1729607673469 } from '../common/1729607673469-AddProjectIcons';
 import { CreateTestDefinitionTable1730386903556 } from '../common/1730386903556-CreateTestDefinitionTable';
 import { AddDescriptionToTestDefinition1731404028106 } from '../common/1731404028106-AddDescriptionToTestDefinition';
 import { CreateTestMetricTable1732271325258 } from '../common/1732271325258-CreateTestMetricTable';
@@ -152,4 +153,5 @@ export const postgresMigrations: Migration[] = [
 	CreateTestRun1732549866705,
 	AddMockedNodesColumnToTestDefinition1733133775640,
 	AddManagedColumnToCredentialsTable1734479635324,
+	AddProjectIcons1729607673469,
 ];
diff --git a/packages/cli/src/databases/migrations/sqlite/1729607673469-AddProjectIcons.ts b/packages/cli/src/databases/migrations/sqlite/1729607673469-AddProjectIcons.ts
new file mode 100644
index 0000000000..f5eb94ffc0
--- /dev/null
+++ b/packages/cli/src/databases/migrations/sqlite/1729607673469-AddProjectIcons.ts
@@ -0,0 +1,5 @@
+import { AddProjectIcons1729607673469 as BaseMigration } from '../common/1729607673469-AddProjectIcons';
+
+export class AddProjectIcons1729607673469 extends BaseMigration {
+	transaction = false as const;
+}
diff --git a/packages/cli/src/databases/migrations/sqlite/index.ts b/packages/cli/src/databases/migrations/sqlite/index.ts
index 0981ece99b..7fec59baf2 100644
--- a/packages/cli/src/databases/migrations/sqlite/index.ts
+++ b/packages/cli/src/databases/migrations/sqlite/index.ts
@@ -39,6 +39,7 @@ import { DropRoleMapping1705429061930 } from './1705429061930-DropRoleMapping';
 import { AddActivatedAtUserSetting1717498465931 } from './1717498465931-AddActivatedAtUserSetting';
 import { AddApiKeysTable1724951148974 } from './1724951148974-AddApiKeysTable';
 import { AddMissingPrimaryKeyOnAnnotationTagMapping1728659839644 } from './1728659839644-AddMissingPrimaryKeyOnAnnotationTagMapping';
+import { AddProjectIcons1729607673469 } from './1729607673469-AddProjectIcons';
 import { AddDescriptionToTestDefinition1731404028106 } from './1731404028106-AddDescriptionToTestDefinition';
 import { MigrateTestDefinitionKeyToString1731582748663 } from './1731582748663-MigrateTestDefinitionKeyToString';
 import { UniqueWorkflowNames1620821879465 } from '../common/1620821879465-UniqueWorkflowNames';
@@ -146,6 +147,7 @@ const sqliteMigrations: Migration[] = [
 	CreateTestRun1732549866705,
 	AddMockedNodesColumnToTestDefinition1733133775640,
 	AddManagedColumnToCredentialsTable1734479635324,
+	AddProjectIcons1729607673469,
 ];
 
 export { sqliteMigrations };
diff --git a/packages/cli/src/requests.ts b/packages/cli/src/requests.ts
index fdde592f28..8110682556 100644
--- a/packages/cli/src/requests.ts
+++ b/packages/cli/src/requests.ts
@@ -13,7 +13,7 @@ import type {
 } from 'n8n-workflow';
 
 import type { CredentialsEntity } from '@/databases/entities/credentials-entity';
-import type { Project, ProjectType } from '@/databases/entities/project';
+import type { Project, ProjectIcon, ProjectType } from '@/databases/entities/project';
 import type { AssignableRole, GlobalRole, User } from '@/databases/entities/user';
 import type { Variables } from '@/databases/entities/variables';
 import type { WorkflowEntity } from '@/databases/entities/workflow-entity';
@@ -123,7 +123,7 @@ export namespace ListQuery {
 }
 
 type SlimUser = Pick<IUser, 'id' | 'email' | 'firstName' | 'lastName'>;
-export type SlimProject = Pick<Project, 'id' | 'type' | 'name'>;
+export type SlimProject = Pick<Project, 'id' | 'type' | 'name' | 'icon'>;
 
 export function hasSharing(
 	workflows: ListQuery.Workflow.Plain[] | ListQuery.Workflow.WithSharing[],
@@ -440,6 +440,7 @@ export declare namespace ProjectRequest {
 		Project,
 		{
 			name: string;
+			icon?: ProjectIcon;
 		}
 	>;
 
@@ -468,6 +469,7 @@ export declare namespace ProjectRequest {
 	type ProjectWithRelations = {
 		id: string;
 		name: string | undefined;
+		icon: ProjectIcon;
 		type: ProjectType;
 		relations: ProjectRelationResponse[];
 		scopes: Scope[];
@@ -477,7 +479,11 @@ export declare namespace ProjectRequest {
 	type Update = AuthenticatedRequest<
 		{ projectId: string },
 		{},
-		{ name?: string; relations?: ProjectRelationPayload[] }
+		{
+			name?: string;
+			relations?: ProjectRelationPayload[];
+			icon?: { type: 'icon' | 'emoji'; value: string };
+		}
 	>;
 	type Delete = AuthenticatedRequest<{ projectId: string }, {}, {}, { transferId?: string }>;
 }
diff --git a/packages/cli/src/services/ownership.service.ts b/packages/cli/src/services/ownership.service.ts
index d0ad442bc1..22403304a1 100644
--- a/packages/cli/src/services/ownership.service.ts
+++ b/packages/cli/src/services/ownership.service.ts
@@ -87,12 +87,14 @@ export class OwnershipService {
 					id: project.id,
 					type: project.type,
 					name: project.name,
+					icon: project.icon,
 				};
 			} else {
 				entity.sharedWithProjects.push({
 					id: project.id,
 					type: project.type,
 					name: project.name,
+					icon: project.icon,
 				});
 			}
 		}
diff --git a/packages/cli/src/services/project.service.ee.ts b/packages/cli/src/services/project.service.ee.ts
index d78e3a07e1..af4505217f 100644
--- a/packages/cli/src/services/project.service.ee.ts
+++ b/packages/cli/src/services/project.service.ee.ts
@@ -7,7 +7,8 @@ import { ApplicationError } from 'n8n-workflow';
 import Container, { Service } from 'typedi';
 
 import { UNLIMITED_LICENSE_QUOTA } from '@/constants';
-import { Project, type ProjectType } from '@/databases/entities/project';
+import type { ProjectIcon, ProjectType } from '@/databases/entities/project';
+import { Project } from '@/databases/entities/project';
 import { ProjectRelation } from '@/databases/entities/project-relation';
 import type { ProjectRole } from '@/databases/entities/project-relation';
 import type { User } from '@/databases/entities/user';
@@ -167,7 +168,12 @@ export class ProjectService {
 		return await this.projectRelationRepository.getPersonalProjectOwners(projectIds);
 	}
 
-	async createTeamProject(name: string, adminUser: User, id?: string): Promise<Project> {
+	async createTeamProject(
+		name: string,
+		adminUser: User,
+		id?: string,
+		icon?: ProjectIcon,
+	): Promise<Project> {
 		const limit = this.license.getTeamProjectLimit();
 		if (
 			limit !== UNLIMITED_LICENSE_QUOTA &&
@@ -180,6 +186,7 @@ export class ProjectService {
 			this.projectRepository.create({
 				id,
 				name,
+				icon,
 				type: 'team',
 			}),
 		);
@@ -190,7 +197,11 @@ export class ProjectService {
 		return project;
 	}
 
-	async updateProject(name: string, projectId: string): Promise<Project> {
+	async updateProject(
+		name: string,
+		projectId: string,
+		icon?: { type: 'icon' | 'emoji'; value: string },
+	): Promise<Project> {
 		const result = await this.projectRepository.update(
 			{
 				id: projectId,
@@ -198,6 +209,7 @@ export class ProjectService {
 			},
 			{
 				name,
+				icon,
 			},
 		);
 
diff --git a/packages/cli/test/integration/credentials/credentials.api.ee.test.ts b/packages/cli/test/integration/credentials/credentials.api.ee.test.ts
index 1606de934d..962f5591d5 100644
--- a/packages/cli/test/integration/credentials/credentials.api.ee.test.ts
+++ b/packages/cli/test/integration/credentials/credentials.api.ee.test.ts
@@ -540,6 +540,7 @@ describe('GET /credentials/:id', () => {
 			id: ownerPersonalProject.id,
 			name: owner.createPersonalProjectName(),
 			type: ownerPersonalProject.type,
+			icon: null,
 		});
 		expect(firstCredential.sharedWithProjects).toHaveLength(0);
 
@@ -629,17 +630,20 @@ describe('GET /credentials/:id', () => {
 			homeProject: {
 				id: member1PersonalProject.id,
 				name: member1.createPersonalProjectName(),
+				icon: null,
 				type: 'personal',
 			},
 			sharedWithProjects: expect.arrayContaining([
 				{
 					id: member2PersonalProject.id,
 					name: member2.createPersonalProjectName(),
+					icon: null,
 					type: member2PersonalProject.type,
 				},
 				{
 					id: member3PersonalProject.id,
 					name: member3.createPersonalProjectName(),
+					icon: null,
 					type: member3PersonalProject.type,
 				},
 			]),
diff --git a/packages/cli/test/integration/public-api/projects.test.ts b/packages/cli/test/integration/public-api/projects.test.ts
index f815d9d07b..4283382558 100644
--- a/packages/cli/test/integration/public-api/projects.test.ts
+++ b/packages/cli/test/integration/public-api/projects.test.ts
@@ -131,6 +131,7 @@ describe('Projects in Public API', () => {
 			expect(response.status).toBe(201);
 			expect(response.body).toEqual({
 				name: 'some-project',
+				icon: null,
 				type: 'team',
 				id: expect.any(String),
 				createdAt: expect.any(String),
diff --git a/packages/cli/test/integration/workflows/workflows.controller.test.ts b/packages/cli/test/integration/workflows/workflows.controller.test.ts
index d0ee2f3d67..e7e00d63c8 100644
--- a/packages/cli/test/integration/workflows/workflows.controller.test.ts
+++ b/packages/cli/test/integration/workflows/workflows.controller.test.ts
@@ -441,6 +441,7 @@ describe('GET /workflows', () => {
 					homeProject: {
 						id: ownerPersonalProject.id,
 						name: owner.createPersonalProjectName(),
+						icon: null,
 						type: ownerPersonalProject.type,
 					},
 					sharedWithProjects: [],
@@ -456,6 +457,7 @@ describe('GET /workflows', () => {
 					homeProject: {
 						id: ownerPersonalProject.id,
 						name: owner.createPersonalProjectName(),
+						icon: null,
 						type: ownerPersonalProject.type,
 					},
 					sharedWithProjects: [],
@@ -833,6 +835,7 @@ describe('GET /workflows', () => {
 						homeProject: {
 							id: ownerPersonalProject.id,
 							name: owner.createPersonalProjectName(),
+							icon: null,
 							type: ownerPersonalProject.type,
 						},
 						sharedWithProjects: [],
@@ -842,6 +845,7 @@ describe('GET /workflows', () => {
 						homeProject: {
 							id: ownerPersonalProject.id,
 							name: owner.createPersonalProjectName(),
+							icon: null,
 							type: ownerPersonalProject.type,
 						},
 						sharedWithProjects: [],
diff --git a/packages/design-system/package.json b/packages/design-system/package.json
index d4a7e1dcec..2ecd0513ac 100644
--- a/packages/design-system/package.json
+++ b/packages/design-system/package.json
@@ -45,6 +45,7 @@
     "@fortawesome/free-solid-svg-icons": "^5.15.4",
     "@fortawesome/vue-fontawesome": "^3.0.3",
     "element-plus": "2.4.3",
+    "is-emoji-supported": "^0.0.5",
     "markdown-it": "^13.0.2",
     "markdown-it-emoji": "^2.0.2",
     "markdown-it-link-attributes": "^4.0.1",
@@ -55,5 +56,8 @@
     "vue-boring-avatars": "^1.3.0",
     "vue-router": "catalog:frontend",
     "xss": "catalog:"
+  },
+  "peerDependencies": {
+    "@vueuse/core": "*"
   }
 }
diff --git a/packages/design-system/src/__tests__/setup.ts b/packages/design-system/src/__tests__/setup.ts
index 981c9d5a60..5c091e2925 100644
--- a/packages/design-system/src/__tests__/setup.ts
+++ b/packages/design-system/src/__tests__/setup.ts
@@ -15,3 +15,8 @@ window.ResizeObserver =
 		observe: vi.fn(),
 		unobserve: vi.fn(),
 	}));
+
+// Globally mock is-emoji-supported
+vi.mock('is-emoji-supported', () => ({
+	isEmojiSupported: () => true,
+}));
diff --git a/packages/design-system/src/components/N8nIconPicker/IconPicker.stories.ts b/packages/design-system/src/components/N8nIconPicker/IconPicker.stories.ts
new file mode 100644
index 0000000000..b03a0cc332
--- /dev/null
+++ b/packages/design-system/src/components/N8nIconPicker/IconPicker.stories.ts
@@ -0,0 +1,57 @@
+import { action } from '@storybook/addon-actions';
+import type { StoryFn } from '@storybook/vue3';
+
+import { TEST_ICONS } from './constants';
+import type { Icon } from './IconPicker.vue';
+import N8nIconPicker from './IconPicker.vue';
+
+export default {
+	title: 'Atoms/Icon Picker',
+	component: N8nIconPicker,
+	argTypes: {
+		buttonTooltip: {
+			control: 'text',
+		},
+		buttonSize: {
+			type: 'select',
+			options: ['small', 'large'],
+		},
+	},
+};
+
+function createTemplate(icon: Icon): StoryFn {
+	return (args, { argTypes }) => ({
+		components: { N8nIconPicker },
+		props: Object.keys(argTypes),
+		setup: () => ({ args }),
+		data: () => ({
+			icon,
+		}),
+		template:
+			'<div style="height: 500px"><n8n-icon-picker v-model="icon" v-bind="args" @update:model-value="onIconSelected" /></div>',
+		methods: {
+			onIconSelected: action('iconSelected'),
+		},
+	});
+}
+
+const DefaultTemplate = createTemplate({ type: 'icon', value: 'smile' });
+export const Default = DefaultTemplate.bind({});
+Default.args = {
+	buttonTooltip: 'Select an icon',
+	availableIcons: TEST_ICONS,
+};
+
+const CustomTooltipTemplate = createTemplate({ type: 'icon', value: 'layer-group' });
+export const WithCustomIconAndTooltip = CustomTooltipTemplate.bind({});
+WithCustomIconAndTooltip.args = {
+	availableIcons: [...TEST_ICONS],
+	buttonTooltip: 'Select something...',
+};
+
+const OnlyEmojiTemplate = createTemplate({ type: 'emoji', value: '🔥' });
+export const OnlyEmojis = OnlyEmojiTemplate.bind({});
+OnlyEmojis.args = {
+	buttonTooltip: 'Select an emoji',
+	availableIcons: [],
+};
diff --git a/packages/design-system/src/components/N8nIconPicker/IconPicker.test.ts b/packages/design-system/src/components/N8nIconPicker/IconPicker.test.ts
new file mode 100644
index 0000000000..f3295ba5e6
--- /dev/null
+++ b/packages/design-system/src/components/N8nIconPicker/IconPicker.test.ts
@@ -0,0 +1,183 @@
+import userEvent from '@testing-library/user-event';
+import { fireEvent, render } from '@testing-library/vue';
+import { createRouter, createWebHistory } from 'vue-router';
+
+import IconPicker from '.';
+import { TEST_ICONS } from './constants';
+
+// Create a proxy handler that returns a mock icon object for any icon name
+// and mock the entire icon library with the proxy
+vi.mock(
+	'@fortawesome/free-solid-svg-icons',
+	() =>
+		new Proxy(
+			{},
+			{
+				get: (_target, prop) => {
+					return { prefix: 'fas', iconName: prop.toString().replace('fa', '').toLowerCase() };
+				},
+			},
+		),
+);
+
+const router = createRouter({
+	history: createWebHistory(),
+	routes: [
+		{
+			path: '/icons',
+			name: 'icons',
+			redirect: '/icons',
+		},
+		{
+			path: '/emojis',
+			name: 'emojis',
+			component: { template: '<h1>emojis</h1>' },
+		},
+	],
+});
+
+// Component stubs
+const components = {
+	N8nIconButton: {
+		template: '<button :data-icon="icon" data-testid="icon-picker-button" />',
+		props: ['icon'],
+	},
+	N8nIcon: {
+		template:
+			'<div class="mock-icon" :data-icon="typeof icon === \'string\' ? icon : icon.iconName" />',
+		props: ['icon'],
+	},
+};
+
+describe('IconPicker', () => {
+	it('renders icons and emojis', async () => {
+		const { getByTestId, getAllByTestId } = render(IconPicker, {
+			props: {
+				modelValue: { type: 'icon', value: 'smile' },
+				buttonTooltip: 'Select an icon',
+				availableIcons: TEST_ICONS,
+			},
+			global: {
+				plugins: [router],
+				components,
+			},
+		});
+		const TEST_EMOJI_COUNT = 1962;
+
+		await fireEvent.click(getByTestId('icon-picker-button'));
+		// Tabs should be visible and icons should be selected by default
+		expect(getByTestId('icon-picker-tabs')).toBeVisible();
+		expect(getByTestId('tab-icons').className).toContain('activeTab');
+		expect(getByTestId('icon-picker-popup')).toBeVisible();
+		// All icons should be rendered
+		expect(getAllByTestId('icon-picker-icon')).toHaveLength(TEST_ICONS.length);
+		// Click on emojis tab
+		await fireEvent.click(getByTestId('tab-emojis'));
+		// Emojis tab should be active
+		expect(getByTestId('tab-emojis').className).toContain('activeTab');
+		// All emojis should be rendered
+		expect(getAllByTestId('icon-picker-emoji')).toHaveLength(TEST_EMOJI_COUNT);
+	});
+	it('renders icon picker with custom icon and tooltip', async () => {
+		const ICON = 'layer-group';
+		const TOOLTIP = 'Select something...';
+		const { getByTestId, getByRole } = render(IconPicker, {
+			props: {
+				modelValue: { type: 'icon', value: ICON },
+				availableIcons: [...TEST_ICONS],
+				buttonTooltip: TOOLTIP,
+			},
+			global: {
+				plugins: [router],
+				components,
+			},
+		});
+		await userEvent.hover(getByTestId('icon-picker-button'));
+		expect(getByRole('tooltip').textContent).toBe(TOOLTIP);
+		expect(getByTestId('icon-picker-button').dataset.icon).toBe(ICON);
+	});
+	it('renders emoji as default icon correctly', async () => {
+		const ICON = '🔥';
+		const TOOLTIP = 'Select something...';
+		const { getByTestId, getByRole } = render(IconPicker, {
+			props: {
+				modelValue: { type: 'emoji', value: ICON },
+				availableIcons: [...TEST_ICONS],
+				buttonTooltip: TOOLTIP,
+			},
+			global: {
+				plugins: [router],
+				components,
+			},
+		});
+		await userEvent.hover(getByTestId('icon-picker-button'));
+		expect(getByRole('tooltip').textContent).toBe(TOOLTIP);
+		expect(getByTestId('icon-picker-button')).toHaveTextContent(ICON);
+	});
+	it('renders icon picker with only emojis', () => {
+		const { queryByTestId } = render(IconPicker, {
+			props: {
+				modelValue: { type: 'icon', value: 'smile' },
+				buttonTooltip: 'Select an emoji',
+				availableIcons: [],
+			},
+			global: {
+				plugins: [router],
+				components,
+			},
+		});
+		expect(queryByTestId('tab-icons')).not.toBeInTheDocument();
+	});
+	it('is able to select an icon', async () => {
+		const { getByTestId, getAllByTestId, queryByTestId, emitted } = render(IconPicker, {
+			props: {
+				modelValue: { type: 'icon', value: 'smile' },
+				buttonTooltip: 'Select an icon',
+				availableIcons: TEST_ICONS,
+			},
+			global: {
+				plugins: [router],
+				components,
+			},
+		});
+		await fireEvent.click(getByTestId('icon-picker-button'));
+		// Select the first icon
+		await fireEvent.click(getAllByTestId('icon-picker-icon')[0]);
+		// Icon should be selected and popup should be closed
+		expect(getByTestId('icon-picker-button').dataset.icon).toBe(TEST_ICONS[0]);
+		expect(queryByTestId('icon-picker-popup')).toBeNull();
+		expect(emitted()).toHaveProperty('update:modelValue');
+		// Should emit the selected icon
+		expect((emitted()['update:modelValue'] as unknown[][])[0][0]).toEqual({
+			type: 'icon',
+			value: TEST_ICONS[0],
+		});
+	});
+	it('is able to select an emoji', async () => {
+		const { getByTestId, getAllByTestId, queryByTestId, emitted } = render(IconPicker, {
+			props: {
+				modelValue: { type: 'emoji', value: '🔥' },
+				buttonTooltip: 'Select an emoji',
+				availableIcons: TEST_ICONS,
+			},
+			global: {
+				plugins: [router],
+				components,
+			},
+		});
+		await fireEvent.click(getByTestId('icon-picker-button'));
+		await fireEvent.click(getByTestId('tab-emojis'));
+		expect(getByTestId('icon-picker-popup')).toBeVisible();
+		// Select the first emoji
+		await fireEvent.click(getAllByTestId('icon-picker-emoji')[0]);
+		// Emoji should be selected and popup should be closed
+		expect(getByTestId('icon-picker-button')).toHaveTextContent('😀');
+		expect(queryByTestId('icon-picker-popup')).toBeNull();
+		// Should emit the selected emoji
+		expect(emitted()).toHaveProperty('update:modelValue');
+		expect((emitted()['update:modelValue'] as unknown[][])[0][0]).toEqual({
+			type: 'emoji',
+			value: '😀',
+		});
+	});
+});
diff --git a/packages/design-system/src/components/N8nIconPicker/IconPicker.vue b/packages/design-system/src/components/N8nIconPicker/IconPicker.vue
new file mode 100644
index 0000000000..318d48c828
--- /dev/null
+++ b/packages/design-system/src/components/N8nIconPicker/IconPicker.vue
@@ -0,0 +1,215 @@
+<script lang="ts" setup>
+// vueuse is a peer dependency
+// eslint-disable import/no-extraneous-dependencies
+import { onClickOutside } from '@vueuse/core';
+import { isEmojiSupported } from 'is-emoji-supported';
+import { ref, defineProps, computed } from 'vue';
+
+import { useI18n } from '../../composables/useI18n';
+import N8nTooltip from '../N8nTooltip';
+
+/**
+ * Simple n8n icon picker component with support for font icons and emojis.
+ * In order to keep this component as dependency-free as possible, it only renders externally provided font icons.
+ * Emojis are rendered from `emojiRanges` array.
+ * If we want to introduce advanced features like search, we need to use libraries like `emojilib`.
+ */
+defineOptions({ name: 'N8nIconPicker' });
+
+const emojiRanges = [
+	[0x1f600, 0x1f64f], // Emoticons
+	[0x1f300, 0x1f5ff], // Symbols & Pictographs
+	[0x1f680, 0x1f6ff], // Transport & Map Symbols
+	[0x2600, 0x26ff], // Miscellaneous Symbols
+	[0x2700, 0x27bf], // Dingbats
+	[0x1f900, 0x1f9ff], // Supplemental Symbols
+	[0x1f1e6, 0x1f1ff], // Regional Indicator Symbols
+	[0x1f400, 0x1f4ff], // Additional pictographs
+];
+
+export type Icon = {
+	type: 'icon' | 'emoji';
+	value: string;
+};
+
+type Props = {
+	buttonTooltip: string;
+	availableIcons: string[];
+	buttonSize?: 'small' | 'large';
+};
+
+const { t } = useI18n();
+
+const props = withDefaults(defineProps<Props>(), {
+	availableIcons: () => [],
+	buttonSize: 'large',
+});
+
+const model = defineModel<Icon>({ default: { type: 'icon', value: 'smile' } });
+
+const hasAvailableIcons = computed(() => props.availableIcons.length > 0);
+
+const emojis = computed(() => {
+	const emojisArray: string[] = [];
+	emojiRanges.forEach(([start, end]) => {
+		for (let i = start; i <= end; i++) {
+			const emoji = String.fromCodePoint(i);
+			if (isEmojiSupported(emoji)) {
+				emojisArray.push(emoji);
+			}
+		}
+	});
+	return emojisArray;
+});
+
+const popupVisible = ref(false);
+const tabs = ref<Array<{ value: string; label: string }>>(
+	hasAvailableIcons.value
+		? [
+				{ value: 'icons', label: t('iconPicker.tabs.icons') },
+				{ value: 'emojis', label: t('iconPicker.tabs.emojis') },
+			]
+		: [{ value: 'emojis', label: t('iconPicker.tabs.emojis') }],
+);
+const selectedTab = ref<string>(tabs.value[0].value);
+
+const container = ref<HTMLDivElement>();
+
+onClickOutside(container, () => {
+	popupVisible.value = false;
+});
+
+const selectIcon = (value: Icon) => {
+	model.value = value;
+	popupVisible.value = false;
+};
+
+const togglePopup = () => {
+	popupVisible.value = !popupVisible.value;
+	if (popupVisible.value) {
+		selectedTab.value = tabs.value[0].value;
+	}
+};
+</script>
+
+<template>
+	<div
+		ref="container"
+		:class="$style.container"
+		:aria-expanded="popupVisible"
+		role="button"
+		aria-haspopup="true"
+	>
+		<div :class="$style['icon-picker-button']">
+			<N8nTooltip placement="right" data-test-id="icon-picker-tooltip">
+				<template #content>
+					{{ props.buttonTooltip ?? t('iconPicker.button.defaultToolTip') }}
+				</template>
+				<N8nIconButton
+					v-if="model.type === 'icon'"
+					:class="$style['icon-button']"
+					:icon="model.value ?? 'smile'"
+					:size="buttonSize"
+					:square="true"
+					type="tertiary"
+					data-test-id="icon-picker-button"
+					@click="togglePopup"
+				/>
+				<N8nButton
+					v-else-if="model.type === 'emoji'"
+					:class="$style['emoji-button']"
+					:size="buttonSize"
+					:square="true"
+					type="tertiary"
+					data-test-id="icon-picker-button"
+					@click="togglePopup"
+				>
+					{{ model.value }}
+				</N8nButton>
+			</N8nTooltip>
+		</div>
+		<div v-if="popupVisible" :class="$style.popup" data-test-id="icon-picker-popup">
+			<div :class="$style.tabs">
+				<N8nTabs v-model="selectedTab" :options="tabs" data-test-id="icon-picker-tabs" />
+			</div>
+			<div v-if="selectedTab === 'icons'" :class="$style.content">
+				<N8nIcon
+					v-for="icon in availableIcons"
+					:key="icon"
+					:icon="icon"
+					:class="$style.icon"
+					size="large"
+					data-test-id="icon-picker-icon"
+					@click="selectIcon({ type: 'icon', value: icon })"
+				/>
+			</div>
+			<div v-if="selectedTab === 'emojis'" :class="$style.content">
+				<span
+					v-for="emoji in emojis"
+					:key="emoji"
+					:class="$style.emoji"
+					data-test-id="icon-picker-emoji"
+					@click="selectIcon({ type: 'emoji', value: emoji })"
+				>
+					{{ emoji }}
+				</span>
+			</div>
+		</div>
+	</div>
+</template>
+
+<style module lang="scss">
+.container {
+	position: relative;
+}
+
+.popup {
+	position: absolute;
+	z-index: 1;
+	width: 426px;
+	max-height: 300px;
+	display: flex;
+	flex-direction: column;
+	margin-top: var(--spacing-4xs);
+	background-color: var(--color-background-xlight);
+	border-radius: var(--border-radius-base);
+	border: var(--border-base);
+	border-color: var(--color-foreground-dark);
+
+	.tabs {
+		padding: var(--spacing-2xs);
+		padding-bottom: var(--spacing-5xs);
+	}
+
+	.content {
+		display: flex;
+		flex-wrap: wrap;
+		padding: var(--spacing-2xs);
+		overflow-y: auto;
+	}
+
+	.icon,
+	.emoji {
+		cursor: pointer;
+		padding: var(--spacing-4xs);
+		border-radius: var(--border-radius-small);
+
+		&:hover {
+			background-color: var(--color-background-medium);
+		}
+	}
+
+	.icon {
+		color: var(--color-text-light);
+
+		&:hover {
+			color: var(--color-text-dark);
+		}
+	}
+
+	.emoji {
+		font-family: 'Segoe UI Emoji', 'Segoe UI Symbol', 'Segoe UI', 'Apple Color Emoji',
+			'Twemoji Mozilla', 'Noto Color Emoji', 'Android Emoji', sans-serif;
+	}
+}
+</style>
diff --git a/packages/design-system/src/components/N8nIconPicker/constants.ts b/packages/design-system/src/components/N8nIconPicker/constants.ts
new file mode 100644
index 0000000000..ca62c03773
--- /dev/null
+++ b/packages/design-system/src/components/N8nIconPicker/constants.ts
@@ -0,0 +1,163 @@
+export const TEST_ICONS = [
+	'angle-double-left',
+	'angle-down',
+	'angle-left',
+	'angle-right',
+	'angle-up',
+	'archive',
+	'arrow-left',
+	'arrow-right',
+	'arrow-up',
+	'arrow-down',
+	'at',
+	'ban',
+	'balance-scale-left',
+	'bars',
+	'bolt',
+	'book',
+	'box-open',
+	'bug',
+	'brain',
+	'calculator',
+	'calendar',
+	'chart-bar',
+	'check',
+	'check-circle',
+	'check-square',
+	'chevron-left',
+	'chevron-right',
+	'chevron-down',
+	'chevron-up',
+	'code',
+	'code-branch',
+	'cog',
+	'cogs',
+	'comment',
+	'comments',
+	'clipboard-list',
+	'clock',
+	'clone',
+	'cloud',
+	'cloud-download-alt',
+	'copy',
+	'cube',
+	'cut',
+	'database',
+	'dot-circle',
+	'grip-lines-vertical',
+	'grip-vertical',
+	'edit',
+	'ellipsis-h',
+	'ellipsis-v',
+	'envelope',
+	'equals',
+	'eye',
+	'exclamation-triangle',
+	'expand',
+	'expand-alt',
+	'external-link-alt',
+	'exchange-alt',
+	'file',
+	'file-alt',
+	'file-archive',
+	'file-code',
+	'file-download',
+	'file-export',
+	'file-import',
+	'file-pdf',
+	'filter',
+	'fingerprint',
+	'flask',
+	'folder-open',
+	'font',
+	'gift',
+	'globe',
+	'globe-americas',
+	'graduation-cap',
+	'hand-holding-usd',
+	'hand-scissors',
+	'handshake',
+	'hand-point-left',
+	'hashtag',
+	'hdd',
+	'history',
+	'home',
+	'hourglass',
+	'image',
+	'inbox',
+	'info',
+	'info-circle',
+	'key',
+	'language',
+	'layer-group',
+	'link',
+	'list',
+	'lightbulb',
+	'lock',
+	'map-signs',
+	'mouse-pointer',
+	'network-wired',
+	'palette',
+	'pause',
+	'pause-circle',
+	'pen',
+	'pencil-alt',
+	'play',
+	'play-circle',
+	'plug',
+	'plus',
+	'plus-circle',
+	'plus-square',
+	'project-diagram',
+	'question',
+	'question-circle',
+	'redo',
+	'remove-format',
+	'robot',
+	'rss',
+	'save',
+	'satellite-dish',
+	'search',
+	'search-minus',
+	'search-plus',
+	'server',
+	'screwdriver',
+	'smile',
+	'sign-in-alt',
+	'sign-out-alt',
+	'sliders-h',
+	'spinner',
+	'sticky-note',
+	'stop',
+	'stream',
+	'sun',
+	'sync',
+	'sync-alt',
+	'table',
+	'tags',
+	'tasks',
+	'terminal',
+	'th-large',
+	'thumbtack',
+	'thumbs-down',
+	'thumbs-up',
+	'times',
+	'times-circle',
+	'toolbox',
+	'tools',
+	'trash',
+	'undo',
+	'unlink',
+	'user',
+	'user-circle',
+	'user-friends',
+	'users',
+	'vector-square',
+	'video',
+	'tree',
+	'user-lock',
+	'gem',
+	'download',
+	'power-off',
+	'paper-plane',
+];
diff --git a/packages/design-system/src/components/N8nIconPicker/index.ts b/packages/design-system/src/components/N8nIconPicker/index.ts
new file mode 100644
index 0000000000..5045eca162
--- /dev/null
+++ b/packages/design-system/src/components/N8nIconPicker/index.ts
@@ -0,0 +1,2 @@
+import IconPicker from './IconPicker.vue';
+export default IconPicker;
diff --git a/packages/design-system/src/components/N8nMenuItem/MenuItem.vue b/packages/design-system/src/components/N8nMenuItem/MenuItem.vue
index e9a34c7e04..f22bcd8827 100644
--- a/packages/design-system/src/components/N8nMenuItem/MenuItem.vue
+++ b/packages/design-system/src/components/N8nMenuItem/MenuItem.vue
@@ -123,12 +123,17 @@ const isItemActive = (item: IMenuItem): boolean => {
 					:disabled="item.disabled"
 					@click="handleSelect?.(item)"
 				>
-					<N8nIcon
-						v-if="item.icon"
-						:class="$style.icon"
-						:icon="item.icon"
-						:size="item.customIconSize || 'large'"
-					/>
+					<div v-if="item.icon">
+						<N8nIcon
+							v-if="typeof item.icon === 'string' || item.icon.type === 'icon'"
+							:class="$style.icon"
+							:icon="typeof item.icon === 'object' ? item.icon.value : item.icon"
+							:size="item.customIconSize || 'large'"
+						/>
+						<span v-else-if="item.icon.type === 'emoji'" :class="$style.icon">{{
+							item.icon.value
+						}}</span>
+					</div>
 					<span v-if="!compact" :class="$style.label">{{ item.label }}</span>
 					<span v-if="!item.icon && compact" :class="[$style.label, $style.compactLabel]">{{
 						getInitials(item.label)
diff --git a/packages/design-system/src/components/index.ts b/packages/design-system/src/components/index.ts
index 2d06e5b8c6..38484308ef 100644
--- a/packages/design-system/src/components/index.ts
+++ b/packages/design-system/src/components/index.ts
@@ -54,3 +54,4 @@ export { default as N8nUserSelect } from './N8nUserSelect';
 export { default as N8nUsersList } from './N8nUsersList';
 export { default as N8nResizeObserver } from './ResizeObserver';
 export { N8nKeyboardShortcut } from './N8nKeyboardShortcut';
+export { default as N8nIconPicker } from './N8nIconPicker';
diff --git a/packages/design-system/src/locale/lang/en.ts b/packages/design-system/src/locale/lang/en.ts
index 9e2e141b17..35f2fd9f0e 100644
--- a/packages/design-system/src/locale/lang/en.ts
+++ b/packages/design-system/src/locale/lang/en.ts
@@ -48,4 +48,7 @@ export default {
 	'assistantChat.copy': 'Copy',
 	'assistantChat.copied': 'Copied',
 	'inlineAskAssistantButton.asked': 'Asked',
+	'iconPicker.button.defaultToolTip': 'Choose icon',
+	'iconPicker.tabs.icons': 'Icons',
+	'iconPicker.tabs.emojis': 'Emojis',
 } as N8nLocale;
diff --git a/packages/design-system/src/types/menu.ts b/packages/design-system/src/types/menu.ts
index 258ff7d555..c042489586 100644
--- a/packages/design-system/src/types/menu.ts
+++ b/packages/design-system/src/types/menu.ts
@@ -5,7 +5,7 @@ import type { RouteLocationRaw, RouterLinkProps } from 'vue-router';
 export type IMenuItem = {
 	id: string;
 	label: string;
-	icon?: string;
+	icon?: string | { type: 'icon' | 'emoji'; value: string };
 	secondaryIcon?: {
 		name: string;
 		size?: 'xsmall' | 'small' | 'medium' | 'large';
diff --git a/packages/editor-ui/src/__tests__/data/projects.ts b/packages/editor-ui/src/__tests__/data/projects.ts
index 98878c339b..d7c26b245e 100644
--- a/packages/editor-ui/src/__tests__/data/projects.ts
+++ b/packages/editor-ui/src/__tests__/data/projects.ts
@@ -10,6 +10,7 @@ import { ProjectTypes } from '@/types/projects.types';
 export const createProjectSharingData = (projectType?: ProjectType): ProjectSharingData => ({
 	id: faker.string.uuid(),
 	name: faker.lorem.words({ min: 1, max: 3 }),
+	icon: { type: 'icon', value: 'folder' },
 	type: projectType ?? ProjectTypes.Personal,
 	createdAt: faker.date.past().toISOString(),
 	updatedAt: faker.date.recent().toISOString(),
@@ -29,6 +30,7 @@ export function createTestProject(data: Partial<Project>): Project {
 	return {
 		id: faker.string.uuid(),
 		name: faker.lorem.words({ min: 1, max: 3 }),
+		icon: { type: 'icon', value: 'folder' },
 		createdAt: faker.date.past().toISOString(),
 		updatedAt: faker.date.recent().toISOString(),
 		type: ProjectTypes.Team,
diff --git a/packages/editor-ui/src/api/projects.api.ts b/packages/editor-ui/src/api/projects.api.ts
index b3bae3fbf1..325feefc63 100644
--- a/packages/editor-ui/src/api/projects.api.ts
+++ b/packages/editor-ui/src/api/projects.api.ts
@@ -37,8 +37,8 @@ export const updateProject = async (
 	context: IRestApiContext,
 	req: ProjectUpdateRequest,
 ): Promise<void> => {
-	const { id, name, relations } = req;
-	await makeRestApiRequest(context, 'PATCH', `/projects/${id}`, { name, relations });
+	const { id, name, icon, relations } = req;
+	await makeRestApiRequest(context, 'PATCH', `/projects/${id}`, { name, icon, relations });
 };
 
 export const deleteProject = async (
diff --git a/packages/editor-ui/src/components/Projects/ProjectHeader.vue b/packages/editor-ui/src/components/Projects/ProjectHeader.vue
index 2e7ce76d70..191c7d7dd5 100644
--- a/packages/editor-ui/src/components/Projects/ProjectHeader.vue
+++ b/packages/editor-ui/src/components/Projects/ProjectHeader.vue
@@ -3,7 +3,7 @@ import { computed } from 'vue';
 import { useRoute, useRouter } from 'vue-router';
 import { N8nButton, N8nTooltip } from 'n8n-design-system';
 import { useI18n } from '@/composables/useI18n';
-import { ProjectTypes } from '@/types/projects.types';
+import { type ProjectIcon, ProjectTypes } from '@/types/projects.types';
 import { useProjectsStore } from '@/stores/projects.store';
 import ProjectTabs from '@/components/Projects/ProjectTabs.vue';
 import { getResourcePermissions } from '@/permissions';
@@ -17,13 +17,13 @@ const i18n = useI18n();
 const projectsStore = useProjectsStore();
 const sourceControlStore = useSourceControlStore();
 
-const headerIcon = computed(() => {
+const headerIcon = computed((): ProjectIcon => {
 	if (projectsStore.currentProject?.type === ProjectTypes.Personal) {
-		return 'user';
+		return { type: 'icon', value: 'user' };
 	} else if (projectsStore.currentProject?.name) {
-		return 'layer-group';
+		return projectsStore.currentProject.icon ?? { type: 'icon', value: 'layer-group' };
 	} else {
-		return 'home';
+		return { type: 'icon', value: 'home' };
 	}
 });
 
@@ -107,9 +107,7 @@ const onSelect = (action: string) => {
 <template>
 	<div>
 		<div :class="[$style.projectHeader]">
-			<div :class="[$style.icon]">
-				<N8nIcon :icon="headerIcon" color="text-light"></N8nIcon>
-			</div>
+			<ProjectIcon :icon="headerIcon" size="medium" />
 			<div>
 				<N8nHeading bold tag="h2" size="xlarge">{{ projectName }}</N8nHeading>
 				<N8nText color="text-light">
diff --git a/packages/editor-ui/src/components/Projects/ProjectIcon.vue b/packages/editor-ui/src/components/Projects/ProjectIcon.vue
new file mode 100644
index 0000000000..5365cba286
--- /dev/null
+++ b/packages/editor-ui/src/components/Projects/ProjectIcon.vue
@@ -0,0 +1,68 @@
+<script setup lang="ts">
+import type { ProjectIcon } from '@/types/projects.types';
+
+type Props = {
+	icon: ProjectIcon;
+	size?: 'small' | 'medium' | 'large';
+	round?: boolean;
+};
+
+const props = withDefaults(defineProps<Props>(), {
+	size: 'medium',
+	round: false,
+});
+</script>
+<template>
+	<div :class="[$style.container, $style[props.size], { [$style.round]: props.round }]">
+		<N8nIcon
+			v-if="props.icon.type === 'icon'"
+			:icon="props.icon.value"
+			color="text-light"
+		></N8nIcon>
+		<N8nText v-else-if="icon.type === 'emoji'" color="text-light" :class="$style.emoji">
+			{{ icon.value }}
+		</N8nText>
+	</div>
+</template>
+
+<style lang="scss" module>
+.container {
+	display: flex;
+	align-items: center;
+	justify-content: center;
+	border: var(--border-width-base) var(--border-style-base) var(--color-foreground-light);
+	border-radius: var(--border-radius-base);
+
+	&.round {
+		border-radius: 50%;
+	}
+}
+
+.small {
+	width: var(--spacing-l);
+	height: var(--spacing-l);
+
+	.emoji {
+		font-size: var(--font-size-2xs);
+	}
+}
+
+.medium {
+	width: var(--spacing-xl);
+	height: var(--spacing-xl);
+
+	.emoji {
+		font-size: var(--font-size-xs);
+	}
+}
+
+.large {
+	// Making this in line with user avatar size
+	width: 40px;
+	height: 40px;
+
+	.emoji {
+		font-size: var(--font-size-s);
+	}
+}
+</style>
diff --git a/packages/editor-ui/src/components/Projects/ProjectMoveResourceModal.test.ts b/packages/editor-ui/src/components/Projects/ProjectMoveResourceModal.test.ts
index b70d843b6d..795c38e5e5 100644
--- a/packages/editor-ui/src/components/Projects/ProjectMoveResourceModal.test.ts
+++ b/packages/editor-ui/src/components/Projects/ProjectMoveResourceModal.test.ts
@@ -33,6 +33,7 @@ describe('ProjectMoveResourceModal', () => {
 			{
 				id: '1',
 				name: 'My Project',
+				icon: { type: 'icon', value: 'folder' },
 				type: 'personal',
 				role: 'project:personalOwner',
 				createdAt: '2021-01-01T00:00:00.000Z',
diff --git a/packages/editor-ui/src/components/Projects/ProjectNavigation.test.ts b/packages/editor-ui/src/components/Projects/ProjectNavigation.test.ts
index 2e660cb8b5..c22a4eb0ff 100644
--- a/packages/editor-ui/src/components/Projects/ProjectNavigation.test.ts
+++ b/packages/editor-ui/src/components/Projects/ProjectNavigation.test.ts
@@ -40,6 +40,10 @@ vi.mock('@/composables/usePageRedirectionHelper', () => {
 	};
 });
 
+vi.mock('is-emoji-supported', () => ({
+	isEmojiSupported: () => true,
+}));
+
 const renderComponent = createComponentRenderer(ProjectsNavigation, {
 	global: {
 		plugins: [
@@ -120,7 +124,7 @@ describe('ProjectsNavigation', () => {
 		expect(queryByRole('heading', { level: 3, name: 'Projects' })).not.toBeInTheDocument();
 	});
 
-	it('should not show project icons when the menu is collapsed', async () => {
+	it('should show project icons when the menu is collapsed', async () => {
 		projectsStore.teamProjectsLimit = -1;
 
 		const { getByTestId } = renderComponent({
@@ -130,7 +134,7 @@ describe('ProjectsNavigation', () => {
 		});
 
 		expect(getByTestId('project-personal-menu-item')).toBeVisible();
-		expect(getByTestId('project-personal-menu-item').querySelector('svg')).not.toBeInTheDocument();
+		expect(getByTestId('project-personal-menu-item').querySelector('svg')).toBeInTheDocument();
 	});
 
 	it('should not show add first project button if there are projects already', async () => {
diff --git a/packages/editor-ui/src/components/Projects/ProjectNavigation.vue b/packages/editor-ui/src/components/Projects/ProjectNavigation.vue
index c161087996..3112804324 100644
--- a/packages/editor-ui/src/components/Projects/ProjectNavigation.vue
+++ b/packages/editor-ui/src/components/Projects/ProjectNavigation.vue
@@ -33,7 +33,7 @@ const home = computed<IMenuItem>(() => ({
 const getProjectMenuItem = (project: ProjectListItem) => ({
 	id: project.id,
 	label: project.name,
-	icon: props.collapsed ? undefined : 'layer-group',
+	icon: project.icon,
 	route: {
 		to: {
 			name: VIEWS.PROJECTS_WORKFLOWS,
@@ -45,7 +45,7 @@ const getProjectMenuItem = (project: ProjectListItem) => ({
 const personalProject = computed<IMenuItem>(() => ({
 	id: projectsStore.personalProject?.id ?? '',
 	label: locale.baseText('projects.menu.personal'),
-	icon: props.collapsed ? undefined : 'user',
+	icon: 'user',
 	route: {
 		to: {
 			name: VIEWS.PROJECTS_WORKFLOWS,
diff --git a/packages/editor-ui/src/components/Projects/ProjectSharingInfo.vue b/packages/editor-ui/src/components/Projects/ProjectSharingInfo.vue
index 55e330dc5f..b01fe412dc 100644
--- a/packages/editor-ui/src/components/Projects/ProjectSharingInfo.vue
+++ b/packages/editor-ui/src/components/Projects/ProjectSharingInfo.vue
@@ -19,11 +19,19 @@ const processedName = computed(() => {
 		email,
 	};
 });
+
+const projectIcon = computed(() => {
+	if (props.project.icon) {
+		return props.project.icon;
+	}
+	return null;
+});
 </script>
 <template>
 	<div :class="$style.projectInfo" data-test-id="project-sharing-info">
 		<div>
-			<N8nAvatar :first-name="processedName.firstName" :last-name="processedName.lastName" />
+			<ProjectIcon v-if="projectIcon" :icon="projectIcon" size="large" :round="true" />
+			<N8nAvatar v-else :first-name="processedName.firstName" :last-name="processedName.lastName" />
 			<div :class="$style.text">
 				<p v-if="processedName.firstName || processedName.lastName">
 					{{ processedName.firstName }} {{ processedName.lastName }}
diff --git a/packages/editor-ui/src/composables/useGlobalEntityCreation.ts b/packages/editor-ui/src/composables/useGlobalEntityCreation.ts
index a922018297..abecefd2d6 100644
--- a/packages/editor-ui/src/composables/useGlobalEntityCreation.ts
+++ b/packages/editor-ui/src/composables/useGlobalEntityCreation.ts
@@ -173,6 +173,7 @@ export const useGlobalEntityCreation = () => {
 		try {
 			const newProject = await projectsStore.createProject({
 				name: i18n.baseText('projects.settings.newProjectName'),
+				icon: { type: 'icon', value: 'layer-group' },
 			});
 			await router.push({ name: VIEWS.PROJECT_SETTINGS, params: { projectId: newProject.id } });
 			toast.showMessage({
diff --git a/packages/editor-ui/src/plugins/i18n/locales/en.json b/packages/editor-ui/src/plugins/i18n/locales/en.json
index c599ffd33b..01c810e269 100644
--- a/packages/editor-ui/src/plugins/i18n/locales/en.json
+++ b/packages/editor-ui/src/plugins/i18n/locales/en.json
@@ -2556,7 +2556,8 @@
 	"projects.menu.addFirstProject": "Add first project",
 	"projects.settings": "Project settings",
 	"projects.settings.newProjectName": "My project",
-	"projects.settings.name": "Project name",
+	"projects.settings.iconPicker.button.tooltip": "Choose project icon",
+	"projects.settings.name": "Project icon and name",
 	"projects.settings.projectMembers": "Project members",
 	"projects.settings.message.unsavedChanges": "You have unsaved changes",
 	"projects.settings.danger.message": "When deleting a project, you can also choose to move all workflows and credentials to another project.",
@@ -2580,6 +2581,7 @@
 	"projects.settings.delete.successful.title": "Project {projectName} deleted",
 	"projects.settings.delete.error.title": "An error occurred while deleting the project",
 	"projects.settings.save.successful.title": "Project {projectName} saved successfully",
+	"projects.settings.icon.update.successful.title": "Project icon updated successfully",
 	"projects.settings.save.error.title": "An error occurred while saving the project",
 	"projects.settings.role.upgrade.title": "Upgrade to unlock additional roles",
 	"projects.settings.role.upgrade.message": "You're currently limited to {limit} on the {planName} plan and can only assign the admin role to users within this project. To create more projects and unlock additional roles, upgrade your plan.",
diff --git a/packages/editor-ui/src/plugins/icons/index.ts b/packages/editor-ui/src/plugins/icons/index.ts
index 561ad6afbf..454f76f2b0 100644
--- a/packages/editor-ui/src/plugins/icons/index.ts
+++ b/packages/editor-ui/src/plugins/icons/index.ts
@@ -1,6 +1,6 @@
 import type { Plugin } from 'vue';
 import { library } from '@fortawesome/fontawesome-svg-core';
-import type { IconDefinition } from '@fortawesome/fontawesome-svg-core';
+import type { IconDefinition, Library } from '@fortawesome/fontawesome-svg-core';
 import {
 	faAngleDoubleLeft,
 	faAngleDown,
@@ -123,6 +123,7 @@ import {
 	faSearchPlus,
 	faServer,
 	faScrewdriver,
+	faSmile,
 	faSignInAlt,
 	faSignOutAlt,
 	faSlidersH,
@@ -296,6 +297,7 @@ export const FontAwesomePlugin: Plugin = {
 		addIcon(faSearchPlus);
 		addIcon(faServer);
 		addIcon(faScrewdriver);
+		addIcon(faSmile);
 		addIcon(faSignInAlt);
 		addIcon(faSignOutAlt);
 		addIcon(faSlidersH);
@@ -342,3 +344,13 @@ export const FontAwesomePlugin: Plugin = {
 		app.component('FontAwesomeIcon', FontAwesomeIcon);
 	},
 };
+
+type LibraryWithDefinitions = Library & {
+	definitions: Record<string, Record<string, IconDefinition>>;
+};
+
+export const iconLibrary = library as LibraryWithDefinitions;
+
+export const getAllIconNames = () => {
+	return Object.keys(iconLibrary.definitions.fas);
+};
diff --git a/packages/editor-ui/src/stores/projects.store.ts b/packages/editor-ui/src/stores/projects.store.ts
index 1824574b6f..b795366f3b 100644
--- a/packages/editor-ui/src/stores/projects.store.ts
+++ b/packages/editor-ui/src/stores/projects.store.ts
@@ -124,9 +124,11 @@ export const useProjectsStore = defineStore(STORES.PROJECTS, () => {
 		const projectIndex = myProjects.value.findIndex((p) => p.id === projectData.id);
 		if (projectIndex !== -1) {
 			myProjects.value[projectIndex].name = projectData.name;
+			myProjects.value[projectIndex].icon = projectData.icon;
 		}
 		if (currentProject.value) {
 			currentProject.value.name = projectData.name;
+			currentProject.value.icon = projectData.icon;
 		}
 		if (projectData.relations) {
 			await getProject(projectData.id);
diff --git a/packages/editor-ui/src/types/projects.types.ts b/packages/editor-ui/src/types/projects.types.ts
index df76edeb30..0ef0b67f90 100644
--- a/packages/editor-ui/src/types/projects.types.ts
+++ b/packages/editor-ui/src/types/projects.types.ts
@@ -18,6 +18,7 @@ export type ProjectRelationPayload = { userId: string; role: ProjectRole };
 export type ProjectSharingData = {
 	id: string;
 	name: string | null;
+	icon: ProjectIcon | null;
 	type: ProjectType;
 	createdAt: string;
 	updatedAt: string;
@@ -30,8 +31,13 @@ export type ProjectListItem = ProjectSharingData & {
 	role: ProjectRole;
 	scopes?: Scope[];
 };
-export type ProjectCreateRequest = { name: string };
-export type ProjectUpdateRequest = Pick<Project, 'id' | 'name'> & {
+export type ProjectCreateRequest = { name: string; icon: ProjectIcon };
+export type ProjectUpdateRequest = Pick<Project, 'id' | 'name' | 'icon'> & {
 	relations: ProjectRelationPayload[];
 };
 export type ProjectsCount = Record<ProjectType, number>;
+
+export type ProjectIcon = {
+	type: 'icon' | 'emoji';
+	value: string;
+};
diff --git a/packages/editor-ui/src/views/ProjectSettings.test.ts b/packages/editor-ui/src/views/ProjectSettings.test.ts
index 8dc7a01734..1890c0bf59 100644
--- a/packages/editor-ui/src/views/ProjectSettings.test.ts
+++ b/packages/editor-ui/src/views/ProjectSettings.test.ts
@@ -66,6 +66,7 @@ describe('ProjectSettings', () => {
 			id: '123',
 			type: 'team',
 			name: 'Test Project',
+			icon: { type: 'icon', value: 'folder' },
 			relations: [],
 			createdAt: new Date().toISOString(),
 			updatedAt: new Date().toISOString(),
diff --git a/packages/editor-ui/src/views/ProjectSettings.vue b/packages/editor-ui/src/views/ProjectSettings.vue
index 70d4232f32..59ee76b935 100644
--- a/packages/editor-ui/src/views/ProjectSettings.vue
+++ b/packages/editor-ui/src/views/ProjectSettings.vue
@@ -7,6 +7,7 @@ import { useUsersStore } from '@/stores/users.store';
 import type { IUser } from '@/Interface';
 import { useI18n } from '@/composables/useI18n';
 import { useProjectsStore } from '@/stores/projects.store';
+import type { ProjectIcon } from '@/types/projects.types';
 import { type Project, type ProjectRelation } from '@/types/projects.types';
 import { useToast } from '@/composables/useToast';
 import { VIEWS } from '@/constants';
@@ -19,6 +20,8 @@ import { useTelemetry } from '@/composables/useTelemetry';
 import { useDocumentTitle } from '@/composables/useDocumentTitle';
 import ProjectHeader from '@/components/Projects/ProjectHeader.vue';
 
+import { getAllIconNames } from '@/plugins/icons';
+
 type FormDataDiff = {
 	name?: string;
 	role?: ProjectRelation[];
@@ -52,6 +55,13 @@ const projectRoleTranslations = ref<{ [key: string]: string }>({
 });
 const nameInput = ref<InstanceType<typeof N8nFormInput> | null>(null);
 
+const availableProjectIcons: string[] = getAllIconNames();
+
+const projectIcon = ref<ProjectIcon>({
+	type: 'icon',
+	value: 'layer-group',
+});
+
 const usersList = computed(() =>
 	usersStore.allUsers.filter((user: IUser) => {
 		const isAlreadySharedWithUser = (formData.value.relations || []).find(
@@ -177,33 +187,41 @@ const sendTelemetry = (diff: FormDataDiff) => {
 	}
 };
 
-const onSubmit = async () => {
+const updateProject = async () => {
+	if (!projectsStore.currentProject) {
+		return;
+	}
 	try {
-		if (isDirty.value && projectsStore.currentProject) {
-			const diff = makeFormDataDiff();
-
-			await projectsStore.updateProject({
-				id: projectsStore.currentProject.id,
-				name: formData.value.name,
-				relations: formData.value.relations.map((r: ProjectRelation) => ({
-					userId: r.id,
-					role: r.role,
-				})),
-			});
-			sendTelemetry(diff);
-			isDirty.value = false;
-			toast.showMessage({
-				title: i18n.baseText('projects.settings.save.successful.title', {
-					interpolate: { projectName: formData.value.name ?? '' },
-				}),
-				type: 'success',
-			});
-		}
+		await projectsStore.updateProject({
+			id: projectsStore.currentProject.id,
+			name: formData.value.name,
+			icon: projectIcon.value,
+			relations: formData.value.relations.map((r: ProjectRelation) => ({
+				userId: r.id,
+				role: r.role,
+			})),
+		});
+		isDirty.value = false;
 	} catch (error) {
 		toast.showError(error, i18n.baseText('projects.settings.save.error.title'));
 	}
 };
 
+const onSubmit = async () => {
+	if (!isDirty.value) {
+		return;
+	}
+	await updateProject();
+	const diff = makeFormDataDiff();
+	sendTelemetry(diff);
+	toast.showMessage({
+		title: i18n.baseText('projects.settings.save.successful.title', {
+			interpolate: { projectName: formData.value.name ?? '' },
+		}),
+		type: 'success',
+	});
+};
+
 const onDelete = async () => {
 	await projectsStore.getAvailableProjects();
 	dialogVisible.value = true;
@@ -235,6 +253,14 @@ const selectProjectNameIfMatchesDefault = () => {
 	}
 };
 
+const onIconUpdated = async () => {
+	await updateProject();
+	toast.showMessage({
+		title: i18n.baseText('projects.settings.icon.update.successful.title'),
+		type: 'success',
+	});
+};
+
 watch(
 	() => projectsStore.currentProject,
 	async () => {
@@ -244,6 +270,9 @@ watch(
 			: [];
 		await nextTick();
 		selectProjectNameIfMatchesDefault();
+		if (projectsStore.currentProject?.icon) {
+			projectIcon.value = projectsStore.currentProject.icon;
+		}
 	},
 	{ immediate: true },
 );
@@ -266,18 +295,27 @@ onMounted(() => {
 		<form @submit.prevent="onSubmit">
 			<fieldset>
 				<label for="projectName">{{ i18n.baseText('projects.settings.name') }}</label>
-				<N8nFormInput
-					id="projectName"
-					ref="nameInput"
-					v-model="formData.name"
-					label=""
-					type="text"
-					name="name"
-					required
-					data-test-id="project-settings-name-input"
-					@input="onNameInput"
-					@validate="isValid = $event"
-				/>
+				<div :class="$style['project-name']">
+					<N8nIconPicker
+						v-model="projectIcon"
+						:button-tooltip="i18n.baseText('projects.settings.iconPicker.button.tooltip')"
+						:available-icons="availableProjectIcons"
+						@update:model-value="onIconUpdated"
+					/>
+					<N8nFormInput
+						id="projectName"
+						ref="nameInput"
+						v-model="formData.name"
+						label=""
+						type="text"
+						name="name"
+						required
+						data-test-id="project-settings-name-input"
+						:class="$style['project-name-input']"
+						@input="onNameInput"
+						@validate="isValid = $event"
+					/>
+				</div>
 			</fieldset>
 			<fieldset>
 				<label for="projectMembers">{{ i18n.baseText('projects.settings.projectMembers') }}</label>
@@ -429,4 +467,14 @@ onMounted(() => {
 	justify-content: flex-end;
 	align-items: center;
 }
+
+.project-name {
+	display: flex;
+	gap: var(--spacing-2xs);
+	align-items: center;
+
+	.project-name-input {
+		flex: 1;
+	}
+}
 </style>
diff --git a/packages/workflow/src/Interfaces.ts b/packages/workflow/src/Interfaces.ts
index 4ab59ac433..bf2c6b6872 100644
--- a/packages/workflow/src/Interfaces.ts
+++ b/packages/workflow/src/Interfaces.ts
@@ -125,6 +125,7 @@ export interface IUser {
 export type ProjectSharingData = {
 	id: string;
 	name: string | null;
+	icon: { type: 'emoji' | 'icon'; value: string } | null;
 	type: 'personal' | 'team' | 'public';
 	createdAt: string;
 	updatedAt: string;
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index b361ef7b13..ffd1970137 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -1242,9 +1242,15 @@ importers:
       '@fortawesome/vue-fontawesome':
         specifier: ^3.0.3
         version: 3.0.3(@fortawesome/fontawesome-svg-core@1.2.36)(vue@3.5.13(typescript@5.7.2))
+      '@vueuse/core':
+        specifier: '*'
+        version: 10.11.0(vue@3.5.13(typescript@5.7.2))
       element-plus:
         specifier: 2.4.3
         version: 2.4.3(vue@3.5.13(typescript@5.7.2))
+      is-emoji-supported:
+        specifier: ^0.0.5
+        version: 0.0.5
       markdown-it:
         specifier: ^13.0.2
         version: 13.0.2
@@ -8954,6 +8960,9 @@ packages:
     engines: {node: '>=8'}
     hasBin: true
 
+  is-emoji-supported@0.0.5:
+    resolution: {integrity: sha512-WOlXUhDDHxYqcSmFZis+xWhhqXiK2SU0iYiqmth5Ip0FHLZQAt9rKL5ahnilE8/86WH8tZ3bmNNNC+bTzamqlw==}
+
   is-expression@4.0.0:
     resolution: {integrity: sha512-zMIXX63sxzG3XrkHkrAPvm/OVZVSCPNkwMHU8oTX7/U3AL78I0QXCEICXUM13BIa8TYGZ68PiTKfQz3yaTNr4A==}
 
@@ -21182,7 +21191,7 @@ snapshots:
 
   eslint-import-resolver-node@0.3.9:
     dependencies:
-      debug: 3.2.7(supports-color@5.5.0)
+      debug: 3.2.7(supports-color@8.1.1)
       is-core-module: 2.13.1
       resolve: 1.22.8
     transitivePeerDependencies:
@@ -21207,7 +21216,7 @@ snapshots:
 
   eslint-module-utils@2.8.0(@typescript-eslint/parser@7.2.0(eslint@8.57.0)(typescript@5.7.2))(eslint-import-resolver-node@0.3.9)(eslint-import-resolver-typescript@3.6.1)(eslint@8.57.0):
     dependencies:
-      debug: 3.2.7(supports-color@5.5.0)
+      debug: 3.2.7(supports-color@8.1.1)
     optionalDependencies:
       '@typescript-eslint/parser': 7.2.0(eslint@8.57.0)(typescript@5.7.2)
       eslint: 8.57.0
@@ -21227,7 +21236,7 @@ snapshots:
       array.prototype.findlastindex: 1.2.3
       array.prototype.flat: 1.3.2
       array.prototype.flatmap: 1.3.2
-      debug: 3.2.7(supports-color@5.5.0)
+      debug: 3.2.7(supports-color@8.1.1)
       doctrine: 2.1.0
       eslint: 8.57.0
       eslint-import-resolver-node: 0.3.9
@@ -22006,7 +22015,7 @@ snapshots:
       array-parallel: 0.1.3
       array-series: 0.1.5
       cross-spawn: 4.0.2
-      debug: 3.2.7(supports-color@5.5.0)
+      debug: 3.2.7(supports-color@8.1.1)
     transitivePeerDependencies:
       - supports-color
 
@@ -22524,6 +22533,8 @@ snapshots:
 
   is-docker@2.2.1: {}
 
+  is-emoji-supported@0.0.5: {}
+
   is-expression@4.0.0:
     dependencies:
       acorn: 7.4.1
@@ -24876,7 +24887,7 @@ snapshots:
 
   pdf-parse@1.1.1:
     dependencies:
-      debug: 3.2.7(supports-color@5.5.0)
+      debug: 3.2.7(supports-color@8.1.1)
       node-ensure: 0.0.0
     transitivePeerDependencies:
       - supports-color
@@ -25718,7 +25729,7 @@ snapshots:
 
   rhea@1.0.24:
     dependencies:
-      debug: 3.2.7(supports-color@5.5.0)
+      debug: 3.2.7(supports-color@8.1.1)
     transitivePeerDependencies:
       - supports-color