diff --git a/.env.example b/.env.example
index 2495e25..90b39a9 100644
--- a/.env.example
+++ b/.env.example
@@ -7,7 +7,7 @@ TZ=UTC
 # Copy this file to .env and customize
 
 # Image version to run (set by build.sh, or use 'latest')
-JAMA_VERSION=0.6.8
+JAMA_VERSION=0.6.9
 
 # Default admin credentials (used on FIRST RUN only)
 ADMIN_NAME=Admin User
diff --git a/backend/package.json b/backend/package.json
index 414eb0a..6c8795f 100644
--- a/backend/package.json
+++ b/backend/package.json
@@ -1,6 +1,6 @@
 {
   "name": "jama-backend",
-  "version": "0.6.8",
+  "version": "0.6.9",
   "description": "TeamChat backend server",
   "main": "src/index.js",
   "scripts": {
diff --git a/backend/src/routes/groups.js b/backend/src/routes/groups.js
index 49ccc1e..1151725 100644
--- a/backend/src/routes/groups.js
+++ b/backend/src/routes/groups.js
@@ -89,9 +89,10 @@ router.get('/', authMiddleware, (req, res) => {
       }
       const otherUserId = g.direct_peer1_id === userId ? g.direct_peer2_id : g.direct_peer1_id;
       if (otherUserId) {
-        const other = db.prepare('SELECT display_name, name FROM users WHERE id = ?').get(otherUserId);
+        const other = db.prepare('SELECT display_name, name, avatar FROM users WHERE id = ?').get(otherUserId);
         if (other) {
           g.peer_real_name = other.name;
+          g.peer_avatar = other.avatar || null;
           g.name = other.display_name || other.name;
         }
       }
diff --git a/build.sh b/build.sh
index 0f9077d..b50e187 100644
--- a/build.sh
+++ b/build.sh
@@ -13,7 +13,7 @@
 # ─────────────────────────────────────────────────────────────
 set -euo pipefail
 
-VERSION="${1:-0.6.8}"
+VERSION="${1:-0.6.9}"
 ACTION="${2:-}"
 REGISTRY="${REGISTRY:-}"
 IMAGE_NAME="jama"
diff --git a/frontend/package.json b/frontend/package.json
index d73f567..c6d2863 100644
--- a/frontend/package.json
+++ b/frontend/package.json
@@ -1,6 +1,6 @@
 {
   "name": "jama-frontend",
-  "version": "0.6.8",
+  "version": "0.6.9",
   "private": true,
   "scripts": {
     "dev": "vite",
diff --git a/frontend/src/components/Sidebar.jsx b/frontend/src/components/Sidebar.jsx
index dba58fa..2f74165 100644
--- a/frontend/src/components/Sidebar.jsx
+++ b/frontend/src/components/Sidebar.jsx
@@ -96,9 +96,18 @@ export default function Sidebar({ groups, activeGroupId, onSelectGroup, notifica
 
     return (
       <div className={`group-item ${isActive ? 'active' : ''} ${hasUnread ? 'has-unread' : ''}`} onClick={() => onSelectGroup(group.id)}>
-        <div className="group-icon" style={{ background: group.type === 'public' ? '#1a73e8' : '#a142f4' }}>
-          {group.type === 'public' ? '#' : group.name[0]?.toUpperCase()}
-        </div>
+        {group.is_direct && group.peer_avatar ? (
+          <img
+            src={group.peer_avatar}
+            alt={group.name}
+            className="group-icon"
+            style={{ objectFit: 'cover', padding: 0 }}
+          />
+        ) : (
+          <div className="group-icon" style={{ background: group.type === 'public' ? '#1a73e8' : '#a142f4' }}>
+            {group.type === 'public' ? '#' : group.is_direct ? (group.peer_real_name || group.name)[0]?.toUpperCase() : group.name[0]?.toUpperCase()}
+          </div>
+        )}
         <div className="group-info flex-1 overflow-hidden">
           <div className="flex items-center justify-between">
             <span className={`group-name truncate ${hasUnread ? 'unread-name' : ''}`}>{group.is_direct && group.peer_real_name ? group.peer_real_name : group.name}</span>