diff --git a/prisma/schema.prisma b/prisma/schema.prisma
index df9aa53..f3e43f7 100644
--- a/prisma/schema.prisma
+++ b/prisma/schema.prisma
@@ -488,6 +488,12 @@ model Conversation {
   userUnreadCount  Int       @default(0)  // Unread count for the user
   agentUnreadCount Int       @default(0)  // Unread count for the agent
 
+  // Mute & Favorite (per-user)
+  userMuted        Boolean   @default(false)
+  agentMuted       Boolean   @default(false)
+  userFavorited    Boolean   @default(false)
+  agentFavorited   Boolean   @default(false)
+
   // Timestamps
   createdAt        DateTime  @default(now())
   updatedAt        DateTime  @updatedAt
diff --git a/src/messages/messages.controller.ts b/src/messages/messages.controller.ts
index fb3f208..a387b96 100644
--- a/src/messages/messages.controller.ts
+++ b/src/messages/messages.controller.ts
@@ -218,6 +218,36 @@ export class MessagesController {
     return this.messagesService.markMessagesAsRead(conversationId, userId);
   }
 
+  // ==========================================
+  // TOGGLE MUTE
+  // ==========================================
+  @Patch('conversations/:id/mute')
+  @HttpCode(HttpStatus.OK)
+  @ApiOperation({ summary: 'Mute or unmute conversation notifications' })
+  @ApiParam({ name: 'id', description: 'Conversation ID' })
+  async toggleMute(
+    @Param('id') conversationId: string,
+    @CurrentUser('id') userId: string,
+    @Body() dto: { muted: boolean },
+  ) {
+    return this.messagesService.toggleMute(conversationId, userId, dto.muted);
+  }
+
+  // ==========================================
+  // TOGGLE FAVORITE
+  // ==========================================
+  @Patch('conversations/:id/favorite')
+  @HttpCode(HttpStatus.OK)
+  @ApiOperation({ summary: 'Star or unstar a conversation' })
+  @ApiParam({ name: 'id', description: 'Conversation ID' })
+  async toggleFavorite(
+    @Param('id') conversationId: string,
+    @CurrentUser('id') userId: string,
+    @Body() dto: { favorited: boolean },
+  ) {
+    return this.messagesService.toggleFavorite(conversationId, userId, dto.favorited);
+  }
+
   // ==========================================
   // CLEAR CHAT (delete messages, keep conversation)
   // ==========================================
diff --git a/src/messages/messages.service.ts b/src/messages/messages.service.ts
index 048b613..e73bc70 100644
--- a/src/messages/messages.service.ts
+++ b/src/messages/messages.service.ts
@@ -722,4 +722,64 @@ export class MessagesService {
       return result._sum.userUnreadCount || 0;
     }
   }
+
+  /**
+   * Toggle mute status for a conversation
+   */
+  async toggleMute(conversationId: string, userId: string, muted: boolean) {
+    const conversation = await this.prisma.conversation.findUnique({
+      where: { id: conversationId },
+      include: { agentProfile: { select: { userId: true } } },
+    });
+
+    if (!conversation) throw new NotFoundException('Conversation not found');
+
+    const isUser = conversation.userId === userId;
+    const isAgent = conversation.agentProfile.userId === userId;
+    if (!isUser && !isAgent) throw new ForbiddenException('You are not part of this conversation');
+
+    const updated = await this.prisma.conversation.update({
+      where: { id: conversationId },
+      data: isUser ? { userMuted: muted } : { agentMuted: muted },
+    });
+
+    return { id: updated.id, muted: isUser ? updated.userMuted : updated.agentMuted };
+  }
+
+  /**
+   * Toggle favorite status for a conversation
+   */
+  async toggleFavorite(conversationId: string, userId: string, favorited: boolean) {
+    const conversation = await this.prisma.conversation.findUnique({
+      where: { id: conversationId },
+      include: { agentProfile: { select: { userId: true } } },
+    });
+
+    if (!conversation) throw new NotFoundException('Conversation not found');
+
+    const isUser = conversation.userId === userId;
+    const isAgent = conversation.agentProfile.userId === userId;
+    if (!isUser && !isAgent) throw new ForbiddenException('You are not part of this conversation');
+
+    const updated = await this.prisma.conversation.update({
+      where: { id: conversationId },
+      data: isUser ? { userFavorited: favorited } : { agentFavorited: favorited },
+    });
+
+    return { id: updated.id, favorited: isUser ? updated.userFavorited : updated.agentFavorited };
+  }
+
+  /**
+   * Check if a conversation is muted for a specific user
+   */
+  async isConversationMuted(conversationId: string, userId: string): Promise<boolean> {
+    const conversation = await this.prisma.conversation.findUnique({
+      where: { id: conversationId },
+      include: { agentProfile: { select: { userId: true } } },
+    });
+    if (!conversation) return false;
+
+    const isUser = conversation.userId === userId;
+    return isUser ? conversation.userMuted : conversation.agentMuted;
+  }
 }
diff --git a/src/notifications/notifications.service.ts b/src/notifications/notifications.service.ts
index 1e1b3e6..17f588d 100644
--- a/src/notifications/notifications.service.ts
+++ b/src/notifications/notifications.service.ts
@@ -347,6 +347,18 @@ export class NotificationsService implements OnModuleInit {
     messagePreview: string;
     conversationId: string;
   }) {
+    // Check if the recipient has muted this conversation
+    const conversation = await this.prisma.conversation.findUnique({
+      where: { id: event.conversationId },
+      include: { agentProfile: { select: { userId: true } } },
+    });
+
+    if (conversation) {
+      const isUser = conversation.userId === event.recipientUserId;
+      const isMuted = isUser ? conversation.userMuted : conversation.agentMuted;
+      if (isMuted) return; // Skip notification for muted conversations
+    }
+
     const prefix = await this.getRoutePrefix(event.recipientUserId);
     const actionUrl = `${prefix}/message?conversationId=${event.conversationId}`;