diff --git a/package-lock.json b/package-lock.json
index 5cb6ac6..fe43916 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -32,6 +32,7 @@
         "buffer": "6.0.3",
         "compressorjs": "^1.2.1",
         "dompurify": "^3.1.6",
+        "emoji-picker-react": "^4.12.0",
         "file-saver": "^2.0.5",
         "jssha": "3.3.1",
         "lodash": "^4.17.21",
@@ -4128,6 +4129,20 @@
       "integrity": "sha512-w+9yAVHoHhysCa+gln7AzbO9CdjFcL/wN/5dd+XW/Msl2d/4+WisEaCF1nty0xbAKaxdaJfgLB2296U7zZB7BA==",
       "dev": true
     },
+    "node_modules/emoji-picker-react": {
+      "version": "4.12.0",
+      "resolved": "https://registry.npmjs.org/emoji-picker-react/-/emoji-picker-react-4.12.0.tgz",
+      "integrity": "sha512-q2c8UcZH0eRIMj41bj0k1akTjk69tsu+E7EzkW7giN66iltF6H9LQvQvw6ugscsxdC+1lmt3WZpQkkY65J95tg==",
+      "dependencies": {
+        "flairup": "1.0.0"
+      },
+      "engines": {
+        "node": ">=10"
+      },
+      "peerDependencies": {
+        "react": ">=16"
+      }
+    },
     "node_modules/emoji-regex": {
       "version": "8.0.0",
       "resolved": "https://registry.npmjs.org/emoji-regex/-/emoji-regex-8.0.0.tgz",
@@ -4725,6 +4740,11 @@
         "url": "https://github.com/sponsors/sindresorhus"
       }
     },
+    "node_modules/flairup": {
+      "version": "1.0.0",
+      "resolved": "https://registry.npmjs.org/flairup/-/flairup-1.0.0.tgz",
+      "integrity": "sha512-IKlE+pNvL2R+kVL1kEhUYqRxVqeFnjiIvHWDMLFXNaqyUdFXQM2wte44EfMYJNHkW16X991t2Zg8apKkhv7OBA=="
+    },
     "node_modules/flat-cache": {
       "version": "3.2.0",
       "resolved": "https://registry.npmjs.org/flat-cache/-/flat-cache-3.2.0.tgz",
diff --git a/package.json b/package.json
index 915aa55..4d0fa0c 100644
--- a/package.json
+++ b/package.json
@@ -36,6 +36,7 @@
     "buffer": "6.0.3",
     "compressorjs": "^1.2.1",
     "dompurify": "^3.1.6",
+    "emoji-picker-react": "^4.12.0",
     "file-saver": "^2.0.5",
     "jssha": "3.3.1",
     "lodash": "^4.17.21",
diff --git a/src/background.ts b/src/background.ts
index 431fc98..bdb1862 100644
--- a/src/background.ts
+++ b/src/background.ts
@@ -1541,6 +1541,7 @@ async function sendChatGroup({
   chatReference,
   messageText,
 }) {
+  
   let _reference = new Uint8Array(64);
   self.crypto.getRandomValues(_reference);
 
@@ -1557,18 +1558,23 @@ async function sendChatGroup({
   // const hasEnoughBalance = +balance < 4 ? false : true;
   const difficulty = 8;
 
-  const tx = await createTransaction(181, keyPair, {
+  const txBody = {
     timestamp: Date.now(),
     groupID: Number(groupId),
     hasReceipient: 0,
-    hasChatReference: typeMessage === "edit" ? 1 : 0,
-    // chatReference: chatReference,
+    hasChatReference: chatReference ? 1 : 0,
     message: messageText,
     lastReference: reference,
     proofOfWorkNonce: 0,
     isEncrypted: 0, // Set default to not encrypted for groups
     isText: 1,
-  });
+  }
+
+  if(chatReference){
+    txBody['chatReference'] = chatReference
+  }
+
+  const tx = await createTransaction(181, keyPair, txBody);
 
   // if (!hasEnoughBalance) {
   //   throw new Error("Must have at least 4 QORT to send a chat message");
diff --git a/src/components/Chat/ChatGroup.tsx b/src/components/Chat/ChatGroup.tsx
index b2e477f..1022fa7 100644
--- a/src/components/Chat/ChatGroup.tsx
+++ b/src/components/Chat/ChatGroup.tsx
@@ -29,6 +29,7 @@ const uid = new ShortUniqueId({ length: 5 });
 
 export const ChatGroup = ({selectedGroup, secretKey, setSecretKey, getSecretKey, myAddress, handleNewEncryptionNotification, hide, handleSecretKeyCreationInProgress, triedToFetchSecretKey, myName, balance}) => {
   const [messages, setMessages] = useState([])
+  const [chatReferences, setChatReferences] = useState({})
   const [isSending, setIsSending] = useState(false)
   const [isLoading, setIsLoading] = useState(false)
   const [isMoved, setIsMoved] = useState(false);
@@ -56,7 +57,14 @@ export const ChatGroup = ({selectedGroup, secretKey, setSecretKey, getSecretKey,
   const tempMessages = useMemo(()=> {
     if(!selectedGroup) return []
     if(queueChats[selectedGroup]){
-      return queueChats[selectedGroup]
+      return queueChats[selectedGroup]?.filter((item)=> !item?.chatReference)
+    }
+    return []
+  }, [selectedGroup, queueChats])
+  const tempChatReferences = useMemo(()=> {
+    if(!selectedGroup) return []
+    if(queueChats[selectedGroup]){
+      return queueChats[selectedGroup]?.filter((item)=> !!item?.chatReference)
     }
     return []
   }, [selectedGroup, queueChats])
@@ -91,6 +99,7 @@ export const ChatGroup = ({selectedGroup, secretKey, setSecretKey, getSecretKey,
     })
    }
 
+
  
     const decryptMessages = (encryptedMessages: any[])=> {
       try {
@@ -113,7 +122,7 @@ export const ChatGroup = ({selectedGroup, secretKey, setSecretKey, getSecretKey,
               res(response)
               if(hasInitialized.current){
                
-                const formatted = response.map((item: any)=> {
+                const formatted = response.filter((rawItem)=> !rawItem?.chatReference).map((item: any)=> {
                   return {
                     ...item,
                     id: item.signature,
@@ -123,8 +132,66 @@ export const ChatGroup = ({selectedGroup, secretKey, setSecretKey, getSecretKey,
                   }
                 } )
                 setMessages((prev)=> [...prev, ...formatted])
+
+               
+                setChatReferences((prev) => {
+                  let organizedChatReferences = { ...prev };
+                
+                  response
+                    .filter((rawItem) => rawItem && rawItem.chatReference && rawItem.decryptedData?.type === 'reaction')
+                    .forEach((item) => {
+                      try {
+                        const content = item.decryptedData?.content;
+                        const sender = item.sender;
+                        const newTimestamp = item.timestamp;
+                        const contentState = item.decryptedData?.contentState;
+                
+                        if (!content || typeof content !== 'string' || !sender || typeof sender !== 'string' || !newTimestamp) {
+                          console.warn("Invalid content, sender, or timestamp in reaction data", item);
+                          return;
+                        }
+                
+                        // Initialize chat reference and reactions if not present
+                        organizedChatReferences[item.chatReference] = {
+                          ...(organizedChatReferences[item.chatReference] || {}),
+                          reactions: organizedChatReferences[item.chatReference]?.reactions || {}
+                        };
+                
+                        organizedChatReferences[item.chatReference].reactions[content] =
+                          organizedChatReferences[item.chatReference].reactions[content] || [];
+                
+                        const existingReactionIndex = organizedChatReferences[item.chatReference].reactions[content]
+                          .findIndex(reaction => reaction.sender === sender);
+                
+                        // Handle contentState: if false, remove the reaction
+                        if (contentState === false) {
+                          if (existingReactionIndex !== -1) {
+                            organizedChatReferences[item.chatReference].reactions[content].splice(existingReactionIndex, 1);
+                          }
+                        } else {
+                          // Add or update reaction
+                          if (existingReactionIndex !== -1) {
+                            const existingReaction = organizedChatReferences[item.chatReference].reactions[content][existingReactionIndex];
+                            const existingTimestamp = existingReaction.timestamp;
+                
+                            if (newTimestamp > existingTimestamp) {
+                              organizedChatReferences[item.chatReference].reactions[content][existingReactionIndex] = item;
+                            }
+                          } else {
+                            organizedChatReferences[item.chatReference].reactions[content].push(item);
+                          }
+                        }
+                      } catch (error) {
+                        console.error("Error processing reaction item:", error, item);
+                      }
+                    });
+                
+                  return organizedChatReferences;
+                });
+                
+                
               } else {
-                const formatted = response.map((item: any)=> {
+                const formatted = response.filter((rawItem)=> !rawItem?.chatReference).map((item: any)=> {
                   return {
                     ...item,
                     id: item.signature,
@@ -135,7 +202,64 @@ export const ChatGroup = ({selectedGroup, secretKey, setSecretKey, getSecretKey,
                 } )
                 setMessages(formatted)
                 hasInitialized.current = true
-
+                setChatReferences((prev) => {
+                  let organizedChatReferences = { ...prev };
+                
+                  response
+                    .filter((rawItem) => rawItem && rawItem.chatReference && rawItem.decryptedData?.type === 'reaction')
+                    .forEach((item) => {
+                      try {
+                        const content = item.decryptedData?.content;
+                        const sender = item.sender;
+                        const newTimestamp = item.timestamp;
+                        const contentState = item.decryptedData?.contentState;
+                
+                        if (!content || typeof content !== 'string' || !sender || typeof sender !== 'string' || !newTimestamp) {
+                          console.warn("Invalid content, sender, or timestamp in reaction data", item);
+                          return;
+                        }
+                
+                        // Initialize chat reference and reactions if not present
+                        organizedChatReferences[item.chatReference] = {
+                          ...(organizedChatReferences[item.chatReference] || {}),
+                          reactions: organizedChatReferences[item.chatReference]?.reactions || {}
+                        };
+                
+                        organizedChatReferences[item.chatReference].reactions[content] =
+                          organizedChatReferences[item.chatReference].reactions[content] || [];
+                
+                        const existingReactionIndex = organizedChatReferences[item.chatReference].reactions[content]
+                          .findIndex(reaction => reaction.sender === sender);
+                
+                        // Handle contentState: if false, remove the reaction
+                        if (contentState === false) {
+                          if (existingReactionIndex !== -1) {
+                            organizedChatReferences[item.chatReference].reactions[content].splice(existingReactionIndex, 1);
+                          }
+                        } else {
+                          // Add or update reaction
+                          if (existingReactionIndex !== -1) {
+                            const existingReaction = organizedChatReferences[item.chatReference].reactions[content][existingReactionIndex];
+                            const existingTimestamp = existingReaction.timestamp;
+                
+                            if (newTimestamp > existingTimestamp) {
+                              organizedChatReferences[item.chatReference].reactions[content][existingReactionIndex] = item;
+                            }
+                          } else {
+                            organizedChatReferences[item.chatReference].reactions[content].push(item);
+                          }
+                        }
+                      } catch (error) {
+                        console.error("Error processing reaction item:", error, item);
+                      }
+                    });
+                
+                  return organizedChatReferences;
+                });
+                
+                
+                
+                
               }
             }
             rej(response.error)
@@ -386,6 +510,73 @@ const clearEditorContent = () => {
   const onReply = useCallback((message)=> {
     setReplyMessage(message)
   }, [])
+
+  const handleReaction = useCallback(async (reaction, chatMessage, reactionState = true)=> {
+    try {
+      
+      if(isSending) return
+      if(+balance < 4) throw new Error('You need at least 4 QORT to send a message')
+      pauseAllQueues()
+   
+     
+        setIsSending(true)
+      const message = ''
+      const secretKeyObject = await getSecretKey(false, true)
+
+     
+      const otherData = {
+        specialId: uid.rnd(),
+        type: 'reaction',
+        content: reaction,
+        contentState: reactionState
+      }
+      const objectMessage = {
+        message,
+        ...(otherData || {})
+      }
+      const message64: any = await objectToBase64(objectMessage)
+   
+      const encryptSingle = await encryptChatMessage(message64, secretKeyObject)
+      // const res = await sendChatGroup({groupId: selectedGroup,messageText: encryptSingle})
+     
+      const sendMessageFunc = async () => {
+        await sendChatGroup({groupId: selectedGroup,messageText: encryptSingle, chatReference: chatMessage.signature})
+      };
+
+      // Add the function to the queue
+      const messageObj = {
+        message: {
+          text: message,
+          timestamp: Date.now(),
+        senderName: myName,
+        sender: myAddress,
+           ...(otherData || {})
+        },
+       chatReference: chatMessage.signature
+      }
+      addToQueue(sendMessageFunc, messageObj, 'chat-reaction',
+      selectedGroup );
+      // setTimeout(() => {
+      //   executeEvent("sent-new-message-group", {})
+      // }, 150);
+      // clearEditorContent()
+      // setReplyMessage(null)
+
+      // send chat message
+    } catch (error) {
+      const errorMsg = error?.message || error
+      setInfoSnack({
+        type: "error",
+        message: errorMsg,
+      });
+      setOpenSnack(true);
+      console.error(error)
+    } finally {
+      setIsSending(false)
+      resumeAllQueues()
+    }
+  }, [])
+  
   
   return (
     <div style={{
@@ -398,7 +589,7 @@ const clearEditorContent = () => {
     left: hide && '-100000px',
     }}>
  
-              <ChatList onReply={onReply} chatId={selectedGroup} initialMessages={messages} myAddress={myAddress} tempMessages={tempMessages}/>
+              <ChatList onReply={onReply} chatId={selectedGroup} initialMessages={messages} myAddress={myAddress} tempMessages={tempMessages} handleReaction={handleReaction} chatReferences={chatReferences} tempChatReferences={tempChatReferences}/>
 
    
       <div style={{
diff --git a/src/components/Chat/ChatList.tsx b/src/components/Chat/ChatList.tsx
index 2791593..9704073 100644
--- a/src/components/Chat/ChatList.tsx
+++ b/src/components/Chat/ChatList.tsx
@@ -3,7 +3,7 @@ import { Virtuoso } from 'react-virtuoso';
 import { MessageItem } from './MessageItem';
 import { subscribeToEvent, unsubscribeFromEvent } from '../../utils/events';
 
-export const ChatList = ({ initialMessages, myAddress, tempMessages, chatId, onReply }) => {
+export const ChatList = ({ initialMessages, myAddress, tempMessages, chatId, onReply, handleReaction, chatReferences, tempChatReferences }) => {
   const virtuosoRef = useRef();
   const [messages, setMessages] = useState(initialMessages);
   const [showScrollButton, setShowScrollButton] = useState(false);
@@ -70,10 +70,7 @@ export const ChatList = ({ initialMessages, myAddress, tempMessages, chatId, onR
   }, []);
 
   const scrollToBottom = (initialMsgs) => {
-    console.log('initialMsgs', {
-      initialMsgs,
-      messages
-    })
+    
     const index = initialMsgs ? initialMsgs.length - 1 : messages.length - 1
     if (virtuosoRef.current) {
       virtuosoRef.current.scrollToIndex({ index});
@@ -109,6 +106,7 @@ export const ChatList = ({ initialMessages, myAddress, tempMessages, chatId, onR
   
     let replyIndex = messages.findIndex((msg)=> msg?.signature === message?.repliedTo)
     let reply
+    let reactions = null
     if(message?.repliedTo && replyIndex !== -1){
       reply = messages[replyIndex]
     }
@@ -125,6 +123,16 @@ export const ChatList = ({ initialMessages, myAddress, tempMessages, chatId, onR
       }
     }
 
+    if(chatReferences && chatReferences[message?.signature]){
+      if(chatReferences[message.signature]?.reactions){
+        reactions = chatReferences[message.signature]?.reactions
+      }
+    }
+    let isUpdating = false
+    if(tempChatReferences && tempChatReferences?.find((item)=> item?.chatReference === message?.signature)){
+      isUpdating = true
+    }
+
     return (
       <div style={{ padding: '10px 0', display: 'flex', justifyContent: 'center', width: '100%', minHeight: '50px' ,  overscrollBehavior: "none"}}>
         <MessageItem
@@ -137,6 +145,9 @@ export const ChatList = ({ initialMessages, myAddress, tempMessages, chatId, onR
           reply={reply}
           replyIndex={replyIndex}
           scrollToItem={scrollToItem}
+          handleReaction={handleReaction}
+          reactions={reactions}
+          isUpdating={isUpdating}
         />
       </div>
     );
diff --git a/src/components/Chat/MessageItem.tsx b/src/components/Chat/MessageItem.tsx
index eabe671..20e6f77 100644
--- a/src/components/Chat/MessageItem.tsx
+++ b/src/components/Chat/MessageItem.tsx
@@ -14,6 +14,7 @@ import { executeEvent } from "../../utils/events";
 import { WrapperUserAction } from "../WrapperUserAction";
 import ReplyIcon from "@mui/icons-material/Reply";
 import { Spacer } from "../../common/Spacer";
+import { ReactionPicker } from "../ReactionPicker";
 
 export const MessageItem = ({
   message,
@@ -25,7 +26,10 @@ export const MessageItem = ({
   isShowingAsReply,
   reply,
   replyIndex,
-  scrollToItem
+  scrollToItem,
+  handleReaction,
+  reactions,
+  isUpdating
 }) => {
   const { ref, inView } = useInView({
     threshold: 0.7, // Fully visible
@@ -48,7 +52,7 @@ export const MessageItem = ({
         width: "95%",
         display: "flex",
         gap: "7px",
-        opacity: isTemp ? 0.5 : 1,
+        opacity: (isTemp || isUpdating) ? 0.5 : 1,
       }}
       id={message?.signature}
     >
@@ -110,6 +114,11 @@ export const MessageItem = ({
               {message?.senderName || message?.sender}
             </Typography>
           </WrapperUserAction>
+          <Box sx={{
+            display: 'flex',
+            gap: '10px',
+            alignItems: 'center'
+          }}>
           {!isShowingAsReply && (
             <ButtonBase
               onClick={() => {
@@ -119,6 +128,18 @@ export const MessageItem = ({
               <ReplyIcon />
             </ButtonBase>
           )}
+          {!isShowingAsReply && handleReaction && (
+            <ReactionPicker onReaction={(val)=> {
+              
+              if(reactions && reactions[val] && reactions[val]?.find((item)=> item?.sender === myAddress)){
+                handleReaction(val, message, false)
+              } else {
+                handleReaction(val, message, true)
+              }
+              
+            }} />
+          )}
+          </Box>
         </Box>
         {reply && (
           <>
@@ -187,11 +208,49 @@ export const MessageItem = ({
         <Box
           sx={{
             display: "flex",
-            justifyContent: "flex-end",
+            justifyContent: "space-between",
             width: "100%",
           }}
         >
-          {isTemp ? (
+          <Box sx={{
+            display: 'flex',
+            alignItems: 'center',
+            gap: '5px'
+          }}>
+            {reactions && Object.keys(reactions).map((reaction)=> {
+              const numberOfReactions = reactions[reaction]?.length
+              // const myReaction = reactions
+              if(numberOfReactions === 0) return null
+              return (
+                <ButtonBase sx={{
+                  height: '30px',
+                  minWidth:  '45px',
+                  background: 'var(--bg-2)',
+                  borderRadius: '7px'
+                }} onClick={()=> {
+                  if(reactions[reaction] && reactions[reaction]?.find((item)=> item?.sender === myAddress)){
+                    handleReaction(reaction, message, false)
+                  } else {
+                    handleReaction(reaction, message, true)
+                  }
+                }}>
+               <div>{reaction}</div>
+                </ButtonBase>
+              )
+            })}
+          </Box>
+          
+          {isUpdating ? (
+            <Typography
+              sx={{
+                fontSize: "14px",
+                color: "gray",
+                fontFamily: "Inter",
+              }}
+            >
+              Updating...
+            </Typography>
+          ) : isTemp ? (
             <Typography
               sx={{
                 fontSize: "14px",
diff --git a/src/components/ReactionPicker.css b/src/components/ReactionPicker.css
new file mode 100644
index 0000000..a07eef3
--- /dev/null
+++ b/src/components/ReactionPicker.css
@@ -0,0 +1,14 @@
+.reaction-container {
+    position: relative; /* Parent must be positioned relatively */
+  }
+  
+  .emoji-picker {
+    position: absolute; /* Picker positioned absolutely relative to the parent */
+    right: 0;
+    z-index: 1000; /* Ensure picker appears above other content */
+  }
+  
+  .message-container {
+    overflow: visible; /* Ensure the message container doesn't cut off the picker */
+  }
+  
\ No newline at end of file
diff --git a/src/components/ReactionPicker.tsx b/src/components/ReactionPicker.tsx
new file mode 100644
index 0000000..c36f7b2
--- /dev/null
+++ b/src/components/ReactionPicker.tsx
@@ -0,0 +1,64 @@
+import React, { useState, useRef, useEffect } from 'react';
+import Picker, { Theme } from 'emoji-picker-react';
+import './ReactionPicker.css'; // CSS for proper positioning
+import { ButtonBase } from '@mui/material';
+
+export const ReactionPicker = ({ onReaction }) => {
+  const [showPicker, setShowPicker] = useState(false); // Manage picker visibility
+  const pickerRef = useRef(null); // Reference to the picker
+
+  const handleReaction = (emojiObject) => {
+    onReaction(emojiObject.emoji);  // Handle the selected emoji reaction
+    setShowPicker(false); // Close picker after selection
+  };
+  const handlePicker = (emojiObject) => {
+    
+    onReaction(emojiObject.emoji);  // Handle the selected emoji reaction
+    setShowPicker(false); // Close picker after selection
+  };
+
+  // Close picker if clicked outside
+  useEffect(() => {
+    const handleClickOutside = (event) => {
+      if (pickerRef.current && !pickerRef.current.contains(event.target)) {
+        setShowPicker(false); // Close picker
+      }
+    };
+
+    // Add event listener when picker is shown
+    if (showPicker) {
+      document.addEventListener('mousedown', handleClickOutside);
+    } else {
+      document.removeEventListener('mousedown', handleClickOutside);
+    }
+
+    // Clean up the event listener on unmount
+    return () => {
+      document.removeEventListener('mousedown', handleClickOutside);
+    };
+  }, [showPicker]);
+
+  return (
+    <div className="reaction-container">
+      {/* Emoji CTA */}
+      <ButtonBase sx={{
+        fontSize: '22px'
+      }} onClick={() => setShowPicker(!showPicker)}>
+        😃
+      </ButtonBase>
+
+      {/* Emoji Picker with dark theme */}
+      {showPicker && (
+        <div className="emoji-picker" ref={pickerRef}>
+          <Picker
+            reactionsDefaultOpen={true}
+            onReactionClick={handleReaction}
+            onEmojiClick={handlePicker}
+            allowExpandReactions={true}
+            theme={Theme.DARK} 
+          />
+        </div>
+      )}
+    </div>
+  );
+};