diff --git a/package-lock.json b/package-lock.json
index 4002698b..c5d5721b 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -11,6 +11,7 @@
                 "node-api-dotnet": "^0.9.19"
             },
             "devDependencies": {
+                "@dnd-kit/vue": "^0.3.2",
                 "@electron/rebuild": "^4.0.3",
                 "@eslint/js": "^9.39.2",
                 "@fontsource-variable/inter": "^5.2.8",
@@ -741,6 +742,124 @@
                 "url": "https://opencollective.com/webpack"
             }
         },
+        "node_modules/@dnd-kit/abstract": {
+            "version": "0.3.2",
+            "resolved": "https://registry.npmjs.org/@dnd-kit/abstract/-/abstract-0.3.2.tgz",
+            "integrity": "sha512-uvPVK+SZYD6Viddn9M0K0JQdXknuVSxA/EbMlFRanve3P/XTc18oLa5zGftKSGjfQGmuzkZ34E26DSbly1zi3Q==",
+            "dev": true,
+            "license": "MIT",
+            "dependencies": {
+                "@dnd-kit/geometry": "^0.3.2",
+                "@dnd-kit/state": "^0.3.2",
+                "tslib": "^2.6.2"
+            }
+        },
+        "node_modules/@dnd-kit/abstract/node_modules/tslib": {
+            "version": "2.8.1",
+            "resolved": "https://registry.npmjs.org/tslib/-/tslib-2.8.1.tgz",
+            "integrity": "sha512-oJFu94HQb+KVduSUQL7wnpmqnfmLsOA/nAh6b6EH0wCEoK0/mPeXU6c3wKDV83MkOuHPRHtSXKKU99IBazS/2w==",
+            "dev": true,
+            "license": "0BSD"
+        },
+        "node_modules/@dnd-kit/collision": {
+            "version": "0.3.2",
+            "resolved": "https://registry.npmjs.org/@dnd-kit/collision/-/collision-0.3.2.tgz",
+            "integrity": "sha512-pNmNSLCI8S9fNQ7QJ3fBCDjiT0sqBhUFcKgmyYaGvGCAU+kq0AP8OWlh0JSisc9k5mFyxmRpmFQcnJpILz/RPA==",
+            "dev": true,
+            "license": "MIT",
+            "dependencies": {
+                "@dnd-kit/abstract": "^0.3.2",
+                "@dnd-kit/geometry": "^0.3.2",
+                "tslib": "^2.6.2"
+            }
+        },
+        "node_modules/@dnd-kit/collision/node_modules/tslib": {
+            "version": "2.8.1",
+            "resolved": "https://registry.npmjs.org/tslib/-/tslib-2.8.1.tgz",
+            "integrity": "sha512-oJFu94HQb+KVduSUQL7wnpmqnfmLsOA/nAh6b6EH0wCEoK0/mPeXU6c3wKDV83MkOuHPRHtSXKKU99IBazS/2w==",
+            "dev": true,
+            "license": "0BSD"
+        },
+        "node_modules/@dnd-kit/dom": {
+            "version": "0.3.2",
+            "resolved": "https://registry.npmjs.org/@dnd-kit/dom/-/dom-0.3.2.tgz",
+            "integrity": "sha512-cIUAVgt2szQyz6JRy7I+0r+xeyOAGH21Y15hb5bIyHoDEaZBvIDH+OOlD9eoLjCbsxDLN9WloU2CBi3OE6LYDg==",
+            "dev": true,
+            "license": "MIT",
+            "dependencies": {
+                "@dnd-kit/abstract": "^0.3.2",
+                "@dnd-kit/collision": "^0.3.2",
+                "@dnd-kit/geometry": "^0.3.2",
+                "@dnd-kit/state": "^0.3.2",
+                "tslib": "^2.6.2"
+            }
+        },
+        "node_modules/@dnd-kit/dom/node_modules/tslib": {
+            "version": "2.8.1",
+            "resolved": "https://registry.npmjs.org/tslib/-/tslib-2.8.1.tgz",
+            "integrity": "sha512-oJFu94HQb+KVduSUQL7wnpmqnfmLsOA/nAh6b6EH0wCEoK0/mPeXU6c3wKDV83MkOuHPRHtSXKKU99IBazS/2w==",
+            "dev": true,
+            "license": "0BSD"
+        },
+        "node_modules/@dnd-kit/geometry": {
+            "version": "0.3.2",
+            "resolved": "https://registry.npmjs.org/@dnd-kit/geometry/-/geometry-0.3.2.tgz",
+            "integrity": "sha512-3UBPuIS7E3oGiHxOE8h810QA+0pnrnCtGxl4Os1z3yy5YkC/BEYGY+TxWPTQaY1/OMV7GCX7ZNMlama2QN3n3w==",
+            "dev": true,
+            "license": "MIT",
+            "dependencies": {
+                "@dnd-kit/state": "^0.3.2",
+                "tslib": "^2.6.2"
+            }
+        },
+        "node_modules/@dnd-kit/geometry/node_modules/tslib": {
+            "version": "2.8.1",
+            "resolved": "https://registry.npmjs.org/tslib/-/tslib-2.8.1.tgz",
+            "integrity": "sha512-oJFu94HQb+KVduSUQL7wnpmqnfmLsOA/nAh6b6EH0wCEoK0/mPeXU6c3wKDV83MkOuHPRHtSXKKU99IBazS/2w==",
+            "dev": true,
+            "license": "0BSD"
+        },
+        "node_modules/@dnd-kit/state": {
+            "version": "0.3.2",
+            "resolved": "https://registry.npmjs.org/@dnd-kit/state/-/state-0.3.2.tgz",
+            "integrity": "sha512-dLUIkoYrIJhGXfF2wGLTfb46vUokEsO/OoE21TSfmahYrx7ysTmnwbePsznFaHlwgZhQEh6AlLvthLCeY21b1A==",
+            "dev": true,
+            "license": "MIT",
+            "dependencies": {
+                "@preact/signals-core": "^1.10.0",
+                "tslib": "^2.6.2"
+            }
+        },
+        "node_modules/@dnd-kit/state/node_modules/tslib": {
+            "version": "2.8.1",
+            "resolved": "https://registry.npmjs.org/tslib/-/tslib-2.8.1.tgz",
+            "integrity": "sha512-oJFu94HQb+KVduSUQL7wnpmqnfmLsOA/nAh6b6EH0wCEoK0/mPeXU6c3wKDV83MkOuHPRHtSXKKU99IBazS/2w==",
+            "dev": true,
+            "license": "0BSD"
+        },
+        "node_modules/@dnd-kit/vue": {
+            "version": "0.3.2",
+            "resolved": "https://registry.npmjs.org/@dnd-kit/vue/-/vue-0.3.2.tgz",
+            "integrity": "sha512-tYX0YzylmkPyjTM8Kv//o90sWNVRCFBtzSu7/Ung2aFMJhfEEUKJoEYRL2V4Cz+fLkOPQFaFqNxSDpNKTeWNxQ==",
+            "dev": true,
+            "license": "MIT",
+            "dependencies": {
+                "@dnd-kit/abstract": "^0.3.2",
+                "@dnd-kit/dom": "^0.3.2",
+                "@dnd-kit/state": "^0.3.2",
+                "tslib": "^2.6.2"
+            },
+            "peerDependencies": {
+                "vue": "^3.5.0"
+            }
+        },
+        "node_modules/@dnd-kit/vue/node_modules/tslib": {
+            "version": "2.8.1",
+            "resolved": "https://registry.npmjs.org/tslib/-/tslib-2.8.1.tgz",
+            "integrity": "sha512-oJFu94HQb+KVduSUQL7wnpmqnfmLsOA/nAh6b6EH0wCEoK0/mPeXU6c3wKDV83MkOuHPRHtSXKKU99IBazS/2w==",
+            "dev": true,
+            "license": "0BSD"
+        },
         "node_modules/@electron/asar": {
             "version": "3.4.1",
             "resolved": "https://registry.npmjs.org/@electron/asar/-/asar-3.4.1.tgz",
@@ -2874,6 +2993,17 @@
                 "url": "https://opencollective.com/pkgr"
             }
         },
+        "node_modules/@preact/signals-core": {
+            "version": "1.13.0",
+            "resolved": "https://registry.npmjs.org/@preact/signals-core/-/signals-core-1.13.0.tgz",
+            "integrity": "sha512-slT6XeTCAbdql61GVLlGU4x7XHI7kCZV5Um5uhE4zLX4ApgiiXc0UYFvVOKq06xcovzp7p+61l68oPi563ARKg==",
+            "dev": true,
+            "license": "MIT",
+            "funding": {
+                "type": "opencollective",
+                "url": "https://opencollective.com/preact"
+            }
+        },
         "node_modules/@rolldown/pluginutils": {
             "version": "1.0.0-rc.2",
             "resolved": "https://registry.npmjs.org/@rolldown/pluginutils/-/pluginutils-1.0.0-rc.2.tgz",
diff --git a/package.json b/package.json
index 0ed9ecdd..a72ee15e 100644
--- a/package.json
+++ b/package.json
@@ -31,6 +31,7 @@
     },
     "homepage": "https://github.com/vrcx-team/VRCX#readme",
     "devDependencies": {
+        "@dnd-kit/vue": "^0.3.2",
         "@electron/rebuild": "^4.0.3",
         "@eslint/js": "^9.39.2",
         "@fontsource-variable/inter": "^5.2.8",
diff --git a/src/localization/en.json b/src/localization/en.json
index b2fdacd0..f169bac0 100644
--- a/src/localization/en.json
+++ b/src/localization/en.json
@@ -7,7 +7,8 @@
         "actions": {
             "open": "Open",
             "confirm": "Confirm",
-            "clear": "Clear"
+            "clear": "Clear",
+            "reset": "Reset"
         },
         "time_units": {
             "y": "y",
@@ -93,7 +94,8 @@
             "sort_secondary": "Then by",
             "sort_tertiary": "Then by",
             "favorite_groups": "Favorite Groups",
-            "favorite_groups_placeholder": "All Groups"
+            "favorite_groups_placeholder": "All Groups",
+            "edit_group_order": "Edit Group Order"
         },
         "notifications": "Notifications",
         "notification_center": {
diff --git a/src/stores/settings/appearance.js b/src/stores/settings/appearance.js
index 7ae2d7ea..70a1ab3b 100644
--- a/src/stores/settings/appearance.js
+++ b/src/stores/settings/appearance.js
@@ -78,6 +78,7 @@ export const useAppearanceSettingsStore = defineStore(
         const isHideFriendsInSameInstance = ref(false);
         const isSidebarDivideByFriendGroup = ref(false);
         const sidebarFavoriteGroups = ref([]);
+        const sidebarFavoriteGroupOrder = ref([]);
         const hideUserNotes = ref(false);
         const hideUserMemos = ref(false);
         const hideUnfriends = ref(false);
@@ -152,6 +153,7 @@ export const useAppearanceSettingsStore = defineStore(
                 isHideFriendsInSameInstanceConfig,
                 isSidebarDivideByFriendGroupConfig,
                 sidebarFavoriteGroupsConfig,
+                sidebarFavoriteGroupOrderConfig,
                 hideUserNotesConfig,
                 hideUserMemosConfig,
                 hideUnfriendsConfig,
@@ -208,6 +210,10 @@ export const useAppearanceSettingsStore = defineStore(
                     true
                 ),
                 configRepository.getString('VRCX_sidebarFavoriteGroups', '[]'),
+                configRepository.getString(
+                    'VRCX_sidebarFavoriteGroupOrder',
+                    '[]'
+                ),
                 configRepository.getBool('VRCX_hideUserNotes', false),
                 configRepository.getBool('VRCX_hideUserMemos', false),
                 configRepository.getBool('VRCX_hideUnfriends', false),
@@ -299,6 +305,9 @@ export const useAppearanceSettingsStore = defineStore(
             sidebarFavoriteGroups.value = JSON.parse(
                 sidebarFavoriteGroupsConfig
             );
+            sidebarFavoriteGroupOrder.value = JSON.parse(
+                sidebarFavoriteGroupOrderConfig
+            );
             hideUserNotes.value = hideUserNotesConfig;
             hideUserMemos.value = hideUserMemosConfig;
             hideUnfriends.value = hideUnfriendsConfig;
@@ -717,6 +726,16 @@ export const useAppearanceSettingsStore = defineStore(
                 JSON.stringify(value)
             );
         }
+        /**
+         * @param {string[]} value
+         */
+        function setSidebarFavoriteGroupOrder(value) {
+            sidebarFavoriteGroupOrder.value = value;
+            configRepository.setString(
+                'VRCX_sidebarFavoriteGroupOrder',
+                JSON.stringify(value)
+            );
+        }
         function setHideUserNotes() {
             hideUserNotes.value = !hideUserNotes.value;
             configRepository.setBool('VRCX_hideUserNotes', hideUserNotes.value);
@@ -975,6 +994,7 @@ export const useAppearanceSettingsStore = defineStore(
             isHideFriendsInSameInstance,
             isSidebarDivideByFriendGroup,
             sidebarFavoriteGroups,
+            sidebarFavoriteGroupOrder,
             hideUserNotes,
             hideUserMemos,
             hideUnfriends,
@@ -1013,6 +1033,7 @@ export const useAppearanceSettingsStore = defineStore(
             setIsHideFriendsInSameInstance,
             setIsSidebarDivideByFriendGroup,
             setSidebarFavoriteGroups,
+            setSidebarFavoriteGroupOrder,
             setHideUserNotes,
             setHideUserMemos,
             setHideUnfriends,
diff --git a/src/views/Sidebar/Sidebar.vue b/src/views/Sidebar/Sidebar.vue
index 514104b9..c47da93a 100644
--- a/src/views/Sidebar/Sidebar.vue
+++ b/src/views/Sidebar/Sidebar.vue
@@ -86,7 +86,7 @@
                             class="absolute top-1 right-1.25 size-1.5 rounded-full bg-red-500" />
                     </Button>
                 </TooltipWrapper>
-                <Popover>
+                <Popover v-model:open="isSettingsPopoverOpen">
                     <PopoverTrigger as-child>
                         <Button class="rounded-full" variant="ghost" size="icon-sm">
                             <Settings />
@@ -112,6 +112,17 @@
                                     :model-value="isSidebarDivideByFriendGroup"
                                     @update:modelValue="setIsSidebarDivideByFriendGroup" />
                             </div>
+                            <Button
+                                v-if="isSidebarDivideByFriendGroup"
+                                variant="outline"
+                                size="sm"
+                                class="w-full text-xs"
+                                @click="
+                                    isSettingsPopoverOpen = false;
+                                    isGroupOrderSheetOpen = true;
+                                ">
+                                {{ t('side_panel.settings.edit_group_order') }}
+                            </Button>
                             <div class="flex flex-col gap-1.5">
                                 <span>{{ t('side_panel.settings.favorite_groups') }}</span>
                                 <Select
@@ -248,6 +259,7 @@
             </template>
         </TabsUnderline>
         <NotificationCenterSheet />
+        <GroupOrderSheet v-model:open="isGroupOrderSheetOpen" />
     </div>
 </template>
 
@@ -285,6 +297,7 @@
     import { debounce, userImage } from '../../shared/utils';
 
     import FriendsSidebar from './components/FriendsSidebar.vue';
+    import GroupOrderSheet from './components/GroupOrderSheet.vue';
     import GroupsSidebar from './components/GroupsSidebar.vue';
     import NotificationCenterSheet from './components/NotificationCenterSheet.vue';
 
@@ -357,6 +370,8 @@
     });
 
     const CLEAR_VALUE = '__clear__';
+    const isGroupOrderSheetOpen = ref(false);
+    const isSettingsPopoverOpen = ref(false);
 
     const sortOptions = computed(() => [
         { value: 'Sort Alphabetically', label: t('view.settings.appearance.side_panel.sorting.alphabetical') },
diff --git a/src/views/Sidebar/components/FriendsSidebar.vue b/src/views/Sidebar/components/FriendsSidebar.vue
index d338c98c..fe0058b2 100644
--- a/src/views/Sidebar/components/FriendsSidebar.vue
+++ b/src/views/Sidebar/components/FriendsSidebar.vue
@@ -120,7 +120,8 @@
         isSidebarGroupByInstance,
         isHideFriendsInSameInstance,
         isSidebarDivideByFriendGroup,
-        sidebarFavoriteGroups
+        sidebarFavoriteGroups,
+        sidebarFavoriteGroupOrder
     } = storeToRefs(useAppearanceSettingsStore());
     const { gameLogDisabled } = storeToRefs(useAdvancedSettingsStore());
     const { showUserDialog } = useUserStore();
@@ -228,7 +229,15 @@
             }
         }
 
-        return result.sort((a, b) => a[0].key.localeCompare(b[0].key));
+        const order = sidebarFavoriteGroupOrder.value;
+        return result.sort((a, b) => {
+            const idxA = order.indexOf(a[0]?.key);
+            const idxB = order.indexOf(b[0]?.key);
+            if (idxA !== -1 && idxB !== -1) return idxA - idxB;
+            if (idxA !== -1) return -1;
+            if (idxB !== -1) return 1;
+            return (a[0]?.key ?? '').localeCompare(b[0]?.key ?? '');
+        });
     });
 
     const buildToggleRow = ({
diff --git a/src/views/Sidebar/components/GroupOrderSheet.vue b/src/views/Sidebar/components/GroupOrderSheet.vue
new file mode 100644
index 00000000..830d06e9
--- /dev/null
+++ b/src/views/Sidebar/components/GroupOrderSheet.vue
@@ -0,0 +1,132 @@
+<template>
+    <Sheet v-model:open="isOpen">
+        <SheetContent side="right" class="w-80 flex flex-col" @open-auto-focus.prevent>
+            <SheetHeader>
+                <SheetTitle>{{ t('side_panel.settings.edit_group_order') }}</SheetTitle>
+            </SheetHeader>
+            <div class="flex-1 overflow-auto p-3">
+                <DragDropProvider @dragEnd="onDragEnd">
+                    <div class="flex flex-col gap-1.5">
+                        <SortableGroupItem
+                            v-for="(item, index) in localOrder"
+                            :key="item.key"
+                            :id="item.key"
+                            :index="index"
+                            :label="item.displayName" />
+                    </div>
+                </DragDropProvider>
+            </div>
+            <div class="flex justify-end gap-2 border-t p-3">
+                <Button variant="secondary" size="sm" @click="resetOrder">
+                    {{ t('common.actions.reset') }}
+                </Button>
+                <Button size="sm" @click="confirmOrder">
+                    {{ t('common.actions.confirm') }}
+                </Button>
+            </div>
+        </SheetContent>
+    </Sheet>
+</template>
+
+<script setup>
+    import { Sheet, SheetContent, SheetHeader, SheetTitle } from '@/components/ui/sheet';
+    import { computed, ref, watch } from 'vue';
+    import { Button } from '@/components/ui/button';
+    import { DragDropProvider } from '@dnd-kit/vue';
+    import { isSortable } from '@dnd-kit/vue/sortable';
+    import { storeToRefs } from 'pinia';
+    import { useI18n } from 'vue-i18n';
+
+    import { useAppearanceSettingsStore, useFavoriteStore } from '../../../stores';
+
+    import SortableGroupItem from './SortableGroupItem.vue';
+
+    const isOpen = defineModel('open', { type: Boolean, default: false });
+
+    const { t } = useI18n();
+
+    const appearanceStore = useAppearanceSettingsStore();
+    const { sidebarFavoriteGroups, sidebarFavoriteGroupOrder } = storeToRefs(appearanceStore);
+    const { setSidebarFavoriteGroupOrder } = appearanceStore;
+
+    const favoriteStore = useFavoriteStore();
+    const { favoriteFriendGroups, localFriendFavoriteGroups } = storeToRefs(favoriteStore);
+
+    const allGroupItems = computed(() => {
+        const items = [];
+        for (const group of favoriteFriendGroups.value) {
+            items.push({ key: group.key, displayName: group.displayName });
+        }
+        for (const name of localFriendFavoriteGroups.value) {
+            items.push({ key: `local:${name}`, displayName: name });
+        }
+        return items;
+    });
+
+    const selectedGroupKeys = computed(() => {
+        if (sidebarFavoriteGroups.value.length === 0) {
+            return allGroupItems.value.map((g) => g.key);
+        }
+        return sidebarFavoriteGroups.value;
+    });
+
+    const localOrder = ref([]);
+
+    function buildOrderedList() {
+        const selected = new Set(selectedGroupKeys.value);
+        const persistedOrder = sidebarFavoriteGroupOrder.value;
+        const itemMap = new Map(allGroupItems.value.map((g) => [g.key, g]));
+
+        const ordered = [];
+        for (const key of persistedOrder) {
+            if (selected.has(key) && itemMap.has(key)) {
+                ordered.push(itemMap.get(key));
+                selected.delete(key);
+            }
+        }
+        for (const key of selectedGroupKeys.value) {
+            if (selected.has(key) && itemMap.has(key)) {
+                ordered.push(itemMap.get(key));
+            }
+        }
+        return ordered;
+    }
+
+    watch(isOpen, (open) => {
+        if (open) {
+            localOrder.value = buildOrderedList();
+        }
+    });
+
+    function onDragEnd(event) {
+        if (event.canceled) return;
+        const { source } = event.operation;
+        if (isSortable(source)) {
+            const { initialIndex, index } = source;
+            if (initialIndex !== index) {
+                const newOrder = [...localOrder.value];
+                const [removed] = newOrder.splice(initialIndex, 1);
+                newOrder.splice(index, 0, removed);
+                localOrder.value = newOrder;
+            }
+        }
+    }
+
+    function confirmOrder() {
+        const currentKeys = localOrder.value.map((g) => g.key);
+        const persistedOrder = sidebarFavoriteGroupOrder.value;
+        const merged = [...currentKeys];
+        for (const key of persistedOrder) {
+            if (!merged.includes(key)) {
+                merged.push(key);
+            }
+        }
+        setSidebarFavoriteGroupOrder(merged);
+        isOpen.value = false;
+    }
+
+    function resetOrder() {
+        setSidebarFavoriteGroupOrder([]);
+        localOrder.value = buildOrderedList();
+    }
+</script>
diff --git a/src/views/Sidebar/components/SortableGroupItem.vue b/src/views/Sidebar/components/SortableGroupItem.vue
new file mode 100644
index 00000000..43868a6a
--- /dev/null
+++ b/src/views/Sidebar/components/SortableGroupItem.vue
@@ -0,0 +1,29 @@
+<script setup>
+    import { computed, ref } from 'vue';
+    import { GripVertical } from 'lucide-vue-next';
+    import { useSortable } from '@dnd-kit/vue/sortable';
+
+    const props = defineProps({
+        id: { type: String, required: true },
+        index: { type: Number, required: true },
+        label: { type: String, required: true }
+    });
+
+    const element = ref(null);
+
+    const { isDragSource } = useSortable({
+        id: computed(() => props.id),
+        index: computed(() => props.index),
+        element
+    });
+</script>
+
+<template>
+    <div
+        ref="element"
+        class="flex items-center gap-2 rounded-md border bg-background px-3 py-2 text-sm select-none cursor-grab active:cursor-grabbing"
+        :class="{ 'opacity-50': isDragSource }">
+        <GripVertical class="size-4 shrink-0 text-muted-foreground" />
+        <span class="truncate">{{ label }}</span>
+    </div>
+</template>