diff --git a/apps/files/css/files.scss b/apps/files/css/files.scss
index 7c2d3b0bb1..4a59502bc6 100644
--- a/apps/files/css/files.scss
+++ b/apps/files/css/files.scss
@@ -502,7 +502,7 @@ table td.filename .uploadtext {
 	display: inline-block;
 	float: left;
 }
-#fileList tr td.filename .action-favorite {
+#fileList tr td.filename .action-favorite:not(.menuitem) {
 	display: block;
 	float: left;
 	width: 30px;
diff --git a/apps/files/js/tagsplugin.js b/apps/files/js/tagsplugin.js
index 9bd20be4bf..22d04e9f19 100644
--- a/apps/files/js/tagsplugin.js
+++ b/apps/files/js/tagsplugin.js
@@ -86,7 +86,7 @@
 			var self = this;
 			// register "star" action
 			fileActions.registerAction({
-				name: 'Favorite',
+				name: 'FavoriteInline',
 				displayName: t('files', 'Favorite'),
 				mime: 'all',
 				permissions: OC.PERMISSION_READ,
@@ -141,6 +141,79 @@
 					});
 				}
 			});
+
+			fileActions.registerAction({
+				name: 'Favorite',
+				displayName: function(context) {
+					var $file = context.$file;
+					var isFavorite = $file.data('favorite') === true;
+
+					if (isFavorite) {
+						return t('files', 'Remove from favorites');
+					}
+
+					// As it is currently not possible to provide a context for
+					// the i18n strings "Add to favorites" was used instead of
+					// "Favorite" to remove the ambiguity between verb and noun
+					// when it is translated.
+					return t('files', 'Add to favorites');
+				},
+				mime: 'all',
+				order: -23,
+				permissions: OC.PERMISSION_READ,
+				iconClass: function(fileName, context) {
+					var $file = context.$file;
+					var isFavorite = $file.data('favorite') === true;
+
+					if (isFavorite) {
+						return 'icon-starred';
+					}
+
+					return 'icon-star';
+				},
+				actionHandler: function(fileName, context) {
+					var $actionEl = context.$file.find('.action-favorite');
+					var $file = context.$file;
+					var fileInfo = context.fileList.files[$file.index()];
+					var dir = context.dir || context.fileList.getCurrentDirectory();
+					var tags = $file.attr('data-tags');
+					if (_.isUndefined(tags)) {
+						tags = '';
+					}
+					tags = tags.split('|');
+					tags = _.without(tags, '');
+					var isFavorite = tags.indexOf(OC.TAG_FAVORITE) >= 0;
+					if (isFavorite) {
+						// remove tag from list
+						tags = _.without(tags, OC.TAG_FAVORITE);
+					} else {
+						tags.push(OC.TAG_FAVORITE);
+					}
+
+					// pre-toggle the star
+					toggleStar($actionEl, !isFavorite);
+
+					context.fileInfoModel.trigger('busy', context.fileInfoModel, true);
+
+					self.applyFileTags(
+						dir + '/' + fileName,
+						tags,
+						$actionEl,
+						isFavorite
+					).then(function(result) {
+						context.fileInfoModel.trigger('busy', context.fileInfoModel, false);
+						// response from server should contain updated tags
+						var newTags = result.tags;
+						if (_.isUndefined(newTags)) {
+							newTags = tags;
+						}
+						context.fileInfoModel.set({
+							'tags': newTags,
+							'favorite': !isFavorite
+						});
+					});
+				}
+			});
 		},
 
 		_extendFileList: function(fileList) {
diff --git a/apps/files/tests/js/tagspluginspec.js b/apps/files/tests/js/tagspluginspec.js
index a4efc08aa5..e2cbaa2c4d 100644
--- a/apps/files/tests/js/tagspluginspec.js
+++ b/apps/files/tests/js/tagspluginspec.js
@@ -117,6 +117,62 @@ describe('OCA.Files.TagsPlugin tests', function() {
 			$tr = fileList.findFileEl('One.txt');
 			$action = $tr.find('.action-favorite');
 
+			expect($tr.attr('data-favorite')).toBeFalsy();
+			expect($tr.attr('data-tags').split('|')).toEqual(['tag1', 'tag2', 'tag3']);
+			expect(fileList.files[0].tags).toEqual(['tag1', 'tag2', 'tag3']);
+			expect($action.find('.icon').hasClass('icon-star')).toEqual(true);
+			expect($action.find('.icon').hasClass('icon-starred')).toEqual(false);
+		});
+		it('through FileActionsMenu sends request to server and updates icon', function() {
+			var request;
+			fileList.setFiles(testFiles);
+			var $tr = fileList.findFileEl('One.txt');
+			var $action = $tr.find('.action-favorite');
+			var $showMenuAction = $tr.find('.action-menu');
+			$showMenuAction.click();
+			var $favoriteActionInMenu = $tr.find('.fileActionsMenu .action-favorite');
+			$favoriteActionInMenu.click();
+
+			expect(fakeServer.requests.length).toEqual(1);
+			request = fakeServer.requests[0];
+			expect(JSON.parse(request.requestBody)).toEqual({
+				tags: ['tag1', 'tag2', OC.TAG_FAVORITE]
+			});
+			request.respond(200, {'Content-Type': 'application/json'}, JSON.stringify({
+				tags: ['tag1', 'tag2', 'tag3', OC.TAG_FAVORITE]
+			}));
+
+			// re-read the element as it was re-inserted
+			$tr = fileList.findFileEl('One.txt');
+			$action = $tr.find('.action-favorite');
+			$showMenuAction = $tr.find('.action-menu');
+
+			expect($tr.attr('data-favorite')).toEqual('true');
+			expect($tr.attr('data-tags').split('|')).toEqual(['tag1', 'tag2', 'tag3', OC.TAG_FAVORITE]);
+			expect(fileList.files[0].tags).toEqual(['tag1', 'tag2', 'tag3', OC.TAG_FAVORITE]);
+			expect($action.find('.icon').hasClass('icon-star')).toEqual(false);
+			expect($action.find('.icon').hasClass('icon-starred')).toEqual(true);
+
+			// show again the menu and get the new action, as the menu was
+			// closed and removed (and with it, the previous action) when that
+			// action was clicked
+			$showMenuAction.click();
+			$favoriteActionInMenu = $tr.find('.fileActionsMenu .action-favorite');
+			$favoriteActionInMenu.click();
+
+			expect(fakeServer.requests.length).toEqual(2);
+			request = fakeServer.requests[1];
+			expect(JSON.parse(request.requestBody)).toEqual({
+				tags: ['tag1', 'tag2', 'tag3']
+			});
+			request.respond(200, {'Content-Type': 'application/json'}, JSON.stringify({
+				tags: ['tag1', 'tag2', 'tag3']
+			}));
+
+			// re-read the element as it was re-inserted
+			$tr = fileList.findFileEl('One.txt');
+			$action = $tr.find('.action-favorite');
+
 			expect($tr.attr('data-favorite')).toBeFalsy();
 			expect($tr.attr('data-tags').split('|')).toEqual(['tag1', 'tag2', 'tag3']);
 			expect(fileList.files[0].tags).toEqual(['tag1', 'tag2', 'tag3']);