diff --git a/app/assets/images/no_project_icon.png b/app/assets/images/no_project_icon.png
new file mode 100644
index 0000000000000..8e9529c67ec3a
Binary files /dev/null and b/app/assets/images/no_project_icon.png differ
diff --git a/app/assets/javascripts/project.js.coffee b/app/assets/javascripts/project.js.coffee
index aba40742e5f0c..9d477dc42dc53 100644
--- a/app/assets/javascripts/project.js.coffee
+++ b/app/assets/javascripts/project.js.coffee
@@ -57,3 +57,13 @@ $ ->
       $("a[href=" + defaultView + "]").tab "show"
     else
       $("a[data-toggle='tab']:first").tab "show"
+
+  # avatar
+  $('.js-choose-project-avatar-button').bind "click", ->
+    form = $(this).closest("form")
+    form.find(".js-project-avatar-input").click()
+
+  $('.js-project-avatar-input').bind "change", ->
+    form = $(this).closest("form")
+    filename = $(this).val().replace(/^.*[\\\/]/, '')
+    form.find(".js-avatar-filename").text(filename)
diff --git a/app/assets/stylesheets/generic/avatar.scss b/app/assets/stylesheets/generic/avatar.scss
index 4f038b977e2c6..661dc4805e1ef 100644
--- a/app/assets/stylesheets/generic/avatar.scss
+++ b/app/assets/stylesheets/generic/avatar.scss
@@ -21,3 +21,16 @@
   &.s90 { width: 90px; height: 90px; margin-right: 15px; }
   &.s160 { width: 160px; height: 160px; margin-right: 20px; }
 }
+
+.identicon {
+  text-align: center;
+  vertical-align: top;
+
+  &.s16 { font-size: 12px; line-height: 1.33; }
+  &.s24 { font-size: 18px; line-height: 1.33; }
+  &.s26 { font-size: 20px; line-height: 1.33; }
+  &.s32 { font-size: 24px; line-height: 1.33; }
+  &.s60 { font-size: 45px; line-height: 1.33; }
+  &.s90 { font-size: 68px; line-height: 1.33; }
+  &.s160 { font-size: 120px; line-height: 1.33; }
+}
\ No newline at end of file
diff --git a/app/assets/stylesheets/sections/dashboard.scss b/app/assets/stylesheets/sections/dashboard.scss
index d181d83e857d6..c0ea4852672c1 100644
--- a/app/assets/stylesheets/sections/dashboard.scss
+++ b/app/assets/stylesheets/sections/dashboard.scss
@@ -94,20 +94,33 @@
   overflow: hidden;
 }
 
+.project-avatar {
+  float: left;
+}
+
 .project-access-icon {
-  margin-left: 10px;
   float: left;
-  margin-right: 15px;
   font-size: 20px;
   margin-bottom: 15px;
-
+  border: 1px solid #EEE;
+  padding: 8px 12px;
+  border-radius: 20px;
+  background: #f5f5f5;
+  text-align: center;
+  position: relative;
+  left: -32px;
+  top: 38px;
   i {
     color: #888;
   }
 }
 
+.dash-project-avatar {
+  float: left;
+}
 .dash-project-access-icon {
   float: left;
   margin-right: 3px;
+  color: #999;
   width: 16px;
 }
diff --git a/app/controllers/projects/avatars_controller.rb b/app/controllers/projects/avatars_controller.rb
new file mode 100644
index 0000000000000..a482b90880da9
--- /dev/null
+++ b/app/controllers/projects/avatars_controller.rb
@@ -0,0 +1,29 @@
+class Projects::AvatarsController < Projects::ApplicationController
+  layout 'project'
+
+  before_filter :project
+
+  def show
+    @blob = @project.repository.blob_at_branch('master', @project.avatar_in_git)
+    if @blob
+      headers['X-Content-Type-Options'] = 'nosniff'
+      send_data(
+        @blob.data,
+        type: @blob.mime_type,
+        disposition: 'inline',
+        filename: @blob.name
+      )
+    else
+      not_found!
+    end
+  end
+
+  def destroy
+    @project.remove_avatar!
+
+    @project.save
+    @project.reset_events_cache
+
+    redirect_to edit_project_path(@project)
+  end
+end
diff --git a/app/helpers/application_helper.rb b/app/helpers/application_helper.rb
index 021bd0a494c74..95d8219795f17 100644
--- a/app/helpers/application_helper.rb
+++ b/app/helpers/application_helper.rb
@@ -49,6 +49,33 @@ def current_action?(*args)
     args.any? { |v| v.to_s.downcase == action_name }
   end
 
+  def project_icon(project_id, options = {})
+    project = Project.find_with_namespace(project_id)
+    if project.avatar.present?
+      image_tag project.avatar.url, options
+    elsif options[:only_uploaded]
+      image_tag '/assets/no_project_icon.png', options
+    elsif project.avatar_in_git
+      image_tag project_avatar_path(project), options
+    else # generated icon
+      project_identicon(project, options)
+    end
+  end
+
+  def project_identicon(project, options = {})
+    options[:class] ||= ''
+    options[:class] << ' identicon'
+    bg_color = Digest::MD5.hexdigest(project.name)[0, 6]
+    brightness = bg_color[0, 2].hex + bg_color[2, 2].hex + bg_color[4, 2].hex
+    text_color = (brightness > 375) ? '#000' : '#fff'
+    content_tag(:div,
+                class: options[:class],
+                style: "background-color: ##{bg_color}; "\
+                       "color: #{text_color}") do
+        project.name[0, 1].upcase
+    end
+  end
+
   def group_icon(group_path)
     group = Group.find_by(path: group_path)
     if group && group.avatar.present?
diff --git a/app/models/project.rb b/app/models/project.rb
index 613f98ba44bdf..a43a8779b28f0 100644
--- a/app/models/project.rb
+++ b/app/models/project.rb
@@ -24,6 +24,7 @@
 #  import_status          :string(255)
 #  repository_size        :float            default(0.0)
 #  star_count             :integer          default(0), not null
+#  avatar                 :string(255)
 #
 
 class Project < ActiveRecord::Base
@@ -116,6 +117,12 @@ class Project < ActiveRecord::Base
   validates :star_count, numericality: { greater_than_or_equal_to: 0 }
   validate :check_limit, on: :create
 
+  validate :avatar_type,
+           if: ->(project) { project.avatar && project.avatar_changed? }
+  validates :avatar, file_size: { maximum: 100.kilobytes.to_i }
+
+  mount_uploader :avatar, AttachmentUploader
+
   # Scopes
   scope :without_user, ->(user)  { where("projects.id NOT IN (:ids)", ids: user.authorized_projects.map(&:id) ) }
   scope :without_team, ->(team) { team.projects.present? ? where("projects.id NOT IN (:ids)", ids: team.projects.map(&:id)) : scoped  }
@@ -328,6 +335,19 @@ def ci_service
     @ci_service ||= ci_services.select(&:activated?).first
   end
 
+  def avatar_type
+    unless avatar.image?
+      errors.add :avatar, 'only images allowed'
+    end
+  end
+
+  def avatar_in_git
+    @avatar_file ||= 'logo.png' if repository.blob_at_branch('master', 'logo.png')
+    @avatar_file ||= 'logo.jpg' if repository.blob_at_branch('master', 'logo.jpg')
+    @avatar_file ||= 'logo.gif' if repository.blob_at_branch('master', 'logo.gif')
+    @avatar_file
+  end
+
   # For compatibility with old code
   def code
     path
@@ -561,6 +581,7 @@ def hook_attrs
   # Since we do cache @event we need to reset cache in special cases:
   # * when project was moved
   # * when project was renamed
+  # * when the project avatar changes
   # Events cache stored like  events/23-20130109142513.
   # The cache key includes updated_at timestamp.
   # Thus it will automatically generate a new fragment
diff --git a/app/services/projects/fork_service.rb b/app/services/projects/fork_service.rb
index a59311bf942da..91f141cff6fa2 100644
--- a/app/services/projects/fork_service.rb
+++ b/app/services/projects/fork_service.rb
@@ -17,6 +17,9 @@ def execute
       project.path = @from_project.path
       project.namespace = current_user.namespace
       project.creator = current_user
+      if @from_project.avatar && @from_project.avatar.image?
+        project.avatar = @from_project.avatar
+      end
 
       # If the project cannot save, we do not want to trigger the project destroy
       # as this can have the side effect of deleting a repo attached to an existing
diff --git a/app/views/dashboard/_project.html.haml b/app/views/dashboard/_project.html.haml
index 89ed510275431..7f19fb5a81c92 100644
--- a/app/views/dashboard/_project.html.haml
+++ b/app/views/dashboard/_project.html.haml
@@ -1,4 +1,6 @@
 = link_to project_path(project), class: dom_class(project) do
+  .dash-project-avatar
+    = project_icon(project.to_param, alt: '', class: 'avatar s24')
   .dash-project-access-icon
     = visibility_level_icon(project.visibility_level)
   %span.str-truncated
diff --git a/app/views/dashboard/projects.html.haml b/app/views/dashboard/projects.html.haml
index f124c688be19a..9e894472c85b3 100644
--- a/app/views/dashboard/projects.html.haml
+++ b/app/views/dashboard/projects.html.haml
@@ -32,6 +32,8 @@
       - @projects.each do |project|
         %li.my-project-row
           %h4.project-title
+            .project-avatar
+              = project_icon(project.to_param, alt: '', class: 'avatar s60')
             .project-access-icon
               = visibility_level_icon(project.visibility_level)
             = link_to project_path(project), class: dom_class(project) do
@@ -70,4 +72,3 @@
             .nothing-here-block There are no projects here.
     .bottom
       = paginate @projects, theme: "gitlab"
-
diff --git a/app/views/projects/_home_panel.html.haml b/app/views/projects/_home_panel.html.haml
index 672a91e0eef02..0353d491348dc 100644
--- a/app/views/projects/_home_panel.html.haml
+++ b/app/views/projects/_home_panel.html.haml
@@ -1,6 +1,8 @@
 - empty_repo = @project.empty_repo?
 .project-home-panel{:class => ("empty-project" if empty_repo)}
   .project-home-row
+    .project-avtatar
+      = project_icon(@project.to_param, alt: '', class: 'avatar s32')
     .project-home-desc
       - if @project.description.present?
         = escaped_autolink(@project.description)
@@ -22,7 +24,6 @@
             - else
               = link_to fork_project_path(@project), title: "Fork project", method: "POST" do
                 = link_to_toggle_fork
-
       .star-buttons
         %span.star.js-toggler-container{class: @show_star ? 'on' : ''}
           - if current_user
diff --git a/app/views/projects/edit.html.haml b/app/views/projects/edit.html.haml
index f48f4bb295370..25e1124ca6992 100644
--- a/app/views/projects/edit.html.haml
+++ b/app/views/projects/edit.html.haml
@@ -7,7 +7,8 @@
       %p.light Some settings, such as "Transfer Project", are hidden inside the danger area below.
       %hr
       .panel-body
-        = form_for @project, remote: true, html: { class: "edit_project form-horizontal" } do |f|
+        = form_for @project, remote: true, html: { multipart: true, class: "edit_project form-horizontal" }, authenticity_token: true do |f|
+
           %fieldset
             .form-group.project_name_holder
               = f.label :name, class: 'control-label' do
@@ -80,6 +81,31 @@
                   = f.check_box :snippets_enabled
                   %span.descr Share code pastes with others out of git repository
 
+          %fieldset.features
+            %legend
+              Project avatar:
+            .form-group
+              .col-sm-2
+              .col-sm-10
+                = project_icon(@project.to_param, alt: '', class: 'avatar s160', only_uploaded: true)
+                %p.light
+                  - if @project.avatar_in_git
+                    Project avatar in repository: #{ @project.avatar_in_git }
+                %p.light
+                  - if @project.avatar?
+                    You can change your project avatar here
+                  - else
+                    You can upload an project avatar here
+                %a.choose-btn.btn.btn-small.js-choose-project-avatar-button
+                  %i.icon-paper-clip
+                  %span Choose File ...
+                &nbsp;
+                %span.file_name.js-avatar-filename File name...
+                = f.file_field :avatar, class: "js-project-avatar-input hidden"
+                .light The maximum file size allowed is 100KB.
+                - if @project.avatar?
+                  %hr
+                  = link_to 'Remove avatar', project_avatar_path(@project), data: { confirm: "Project avatar will be removed. Are you sure?"}, method: :delete, class: "btn btn-remove btn-small remove-avatar"
 
           .form-actions
             = f.submit 'Save changes', class: "btn btn-save"
diff --git a/config/routes.rb b/config/routes.rb
index 2534153758bd9..ac4ae1d37a741 100644
--- a/config/routes.rb
+++ b/config/routes.rb
@@ -333,6 +333,8 @@
           post :preview
         end
       end
+
+      resource :avatar, only: [:show, :destroy]
     end
   end
 
diff --git a/db/migrate/20141025111418_add_avatar_to_projects.rb b/db/migrate/20141025111418_add_avatar_to_projects.rb
new file mode 100644
index 0000000000000..9523ac722f2fa
--- /dev/null
+++ b/db/migrate/20141025111418_add_avatar_to_projects.rb
@@ -0,0 +1,5 @@
+class AddAvatarToProjects < ActiveRecord::Migration
+  def change
+    add_column :projects, :avatar, :string
+  end
+end
diff --git a/db/schema.rb b/db/schema.rb
index 8ddebc5132a2b..89298bd783258 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -11,7 +11,7 @@
 #
 # It's strongly recommended that you check this file into your version control system.
 
-ActiveRecord::Schema.define(version: 20141007100818) do
+ActiveRecord::Schema.define(version: 20141025111418) do
 
   # These are extensions that must be enabled in order to support this database
   enable_extension "plpgsql"
@@ -262,6 +262,7 @@
     t.string   "import_status"
     t.float    "repository_size",        default: 0.0
     t.integer  "star_count",             default: 0,        null: false
+    t.string   "avatar"
   end
 
   add_index "projects", ["creator_id"], name: "index_projects_on_creator_id", using: :btree
diff --git a/features/project/project.feature b/features/project/project.feature
index 7bb24e013a979..3e1fd54bee84c 100644
--- a/features/project/project.feature
+++ b/features/project/project.feature
@@ -5,6 +5,19 @@ Feature: Project
     And project "Shop" has push event
     And I visit project "Shop" page
 
+  Scenario: I edit the project avatar
+    Given I visit edit project "Shop" page
+    When I change the project avatar
+    And I should see new project avatar
+    And I should see the "Remove avatar" button
+
+  Scenario: I remove the project avatar
+    Given I visit edit project "Shop" page
+    And I have an project avatar
+    When I remove my project avatar
+    Then I should see the default project avatar
+    And I should not see the "Remove avatar" button
+
   @javascript
   Scenario: I should see project activity
     When I visit project "Shop" page
diff --git a/features/steps/project/project.rb b/features/steps/project/project.rb
index f7fff8e64f9d4..dc663a857c61b 100644
--- a/features/steps/project/project.rb
+++ b/features/steps/project/project.rb
@@ -17,12 +17,53 @@ class Spinach::Features::Project < Spinach::FeatureSteps
   end
 
   step 'change project path settings' do
-    fill_in "project_path", with: "new-path"
-    click_button "Rename"
+    fill_in 'project_path', with: 'new-path'
+    click_button 'Rename'
   end
 
   step 'I should see project with new path settings' do
-    project.path.should == "new-path"
+    project.path.should == 'new-path'
+  end
+
+  step 'I change the project avatar' do
+    attach_file(
+      :project_avatar,
+      File.join(Rails.root, 'public', 'gitlab_logo.png')
+    )
+    click_button 'Save changes'
+    @project.reload
+  end
+
+  step 'I should see new project avatar' do
+    @project.avatar.should be_instance_of AttachmentUploader
+    url = @project.avatar.url
+    url.should == "/uploads/project/avatar/#{ @project.id }/gitlab_logo.png"
+  end
+
+  step 'I should see the "Remove avatar" button' do
+    page.should have_link('Remove avatar')
+  end
+
+  step 'I have an project avatar' do
+    attach_file(
+      :project_avatar,
+      File.join(Rails.root, 'public', 'gitlab_logo.png')
+    )
+    click_button 'Save changes'
+    @project.reload
+  end
+
+  step 'I remove my project avatar' do
+    click_link 'Remove avatar'
+    @project.reload
+  end
+
+  step 'I should see the default project avatar' do
+    @project.avatar?.should be_false
+  end
+
+  step 'I should not see the "Remove avatar" button' do
+    page.should_not have_link('Remove avatar')
   end
 
   step 'I should see project "Shop" version' do
diff --git a/spec/helpers/application_helper_spec.rb b/spec/helpers/application_helper_spec.rb
index 2db67cfdf95e1..b578e7c91e80e 100644
--- a/spec/helpers/application_helper_spec.rb
+++ b/spec/helpers/application_helper_spec.rb
@@ -56,6 +56,28 @@
     end
   end
 
+  describe 'project_icon' do
+    avatar_file_path = File.join(Rails.root, 'public', 'gitlab_logo.png')
+
+    it 'should return an url for the avatar' do
+      project = create(:project)
+      project.avatar = File.open(avatar_file_path)
+      project.save!
+      project_icon(project.to_param).to_s.should ==
+        "/uploads/project/avatar/#{ project.id }/gitlab_logo.png"
+    end
+
+    it 'should give uploaded icon when present' do
+      project = create(:project)
+      project.save!
+
+      Project.any_instance.stub(:avatar_in_git).and_return(true)
+
+      project_icon(project.to_param).to_s.should match(
+        image_tag(project_avatar_path(project)))
+    end
+  end
+
   describe "avatar_icon" do
     avatar_file_path = File.join(Rails.root, 'public', 'gitlab_logo.png')
 
diff --git a/spec/models/project_spec.rb b/spec/models/project_spec.rb
index 48b58400a1ecf..44a3850b64c16 100644
--- a/spec/models/project_spec.rb
+++ b/spec/models/project_spec.rb
@@ -24,6 +24,7 @@
 #  import_status          :string(255)
 #  repository_size        :float            default(0.0)
 #  star_count             :integer          default(0), not null
+#  avatar                 :string(255)
 #
 
 require 'spec_helper'
@@ -365,4 +366,18 @@
       expect(project.star_count).to eq(0)
     end
   end
+
+  describe :avatar_type do
+    let(:project) { create(:project) }
+
+    it 'should be true if avatar is image' do
+      project.update_attribute(:avatar, 'uploads/avatar.png')
+      project.avatar_type.should be_true
+    end
+
+    it 'should be false if avatar is html page' do
+      project.update_attribute(:avatar, 'uploads/avatar.html')
+      project.avatar_type.should == ['only images allowed']
+    end
+  end
 end
diff --git a/spec/routing/project_routing_spec.rb b/spec/routing/project_routing_spec.rb
index 4b2eb42c709b1..41c51b3fbc259 100644
--- a/spec/routing/project_routing_spec.rb
+++ b/spec/routing/project_routing_spec.rb
@@ -462,3 +462,11 @@
     get("/gitlab/gitlabhq/graphs/master").should route_to('projects/graphs#show', project_id: 'gitlab/gitlabhq', id: 'master')
   end
 end
+
+# project_avatar DELETE /project/avatar(.:format) projects/avatars#destroy
+describe Projects::AvatarsController, 'routing' do
+  it 'to #destroy' do
+    delete('/gitlab/gitlabhq/avatar').should route_to(
+      'projects/avatars#destroy', project_id: 'gitlab/gitlabhq')
+  end
+end