diff --git a/ee/tabby-ui/app/(dashboard)/profile/components/avatar.tsx b/ee/tabby-ui/app/(dashboard)/profile/components/avatar.tsx
index afff226acda8..4f637b4aa6f0 100644
--- a/ee/tabby-ui/app/(dashboard)/profile/components/avatar.tsx
+++ b/ee/tabby-ui/app/(dashboard)/profile/components/avatar.tsx
@@ -1,17 +1,64 @@
-import NiceAvatar, { genConfig } from 'react-nice-avatar'
+'use client'
 
+import { ChangeEvent  } from 'react'
+
+import { cn } from '@/lib/utils'
 import { useMe } from '@/lib/hooks/use-me'
+import { graphql } from '@/lib/gql/generates'
+import { useMutation } from '@/lib/tabby/gql'
+import { toast } from 'sonner'
+
+import { buttonVariants } from "@/components/ui/button"
+import { UserAvatar, mutateAvatar } from '@/components/user-avatar'
+
+const uploadUserAvatarMutation = graphql(/* GraphQL */ `
+  mutation uploadUserAvatarBase64($id: ID!, $avatarBase64: String!) {
+    uploadUserAvatarBase64(id: $id, avatarBase64: $avatarBase64)
+  }
+`)
 
 export const Avatar = () => {
   const [{ data }] = useMe()
-
+  const uploadUserAvatar = useMutation(uploadUserAvatarMutation)
   if (!data?.me?.email) return null
 
-  const config = genConfig(data?.me?.email)
+  const onUploadAvatar = (e: ChangeEvent<HTMLInputElement>) => {
+    const file = e.target.files ? e.target.files[0] : null;
+    if (file) {
+      const reader = new FileReader();
+
+      reader.onloadend = async () => {
+        try {
+          const imageString = reader.result as string;
+          const mimeHeaderMatcher = new RegExp("^data:image/.+;base64,")
+          const avatarBase64 = imageString.replace(mimeHeaderMatcher, "")
+
+          const response = await uploadUserAvatar({
+            avatarBase64,
+            id: data.me.id
+          })
+          if (response?.error) throw response.error
+          if (response?.data?.uploadUserAvatarBase64 === false) throw new Error('Upload failed')
+          mutateAvatar(data.me.id)
+          toast.success('Avatar uploaded successfully.')
+        } catch (err: any) {
+          toast.error(err.message || 'Upload failed')
+        }
+      };
+
+      reader.readAsDataURL(file);
+    }
+  }
 
   return (
-    <div className="flex h-16 w-16 rounded-full border">
-      <NiceAvatar className="w-full" {...config} />
+    <div className="flex items-center">
+      <UserAvatar className="h-16 w-16 border" />
+
+      <div className="ml-3">
+        <label htmlFor="avatar-file" className={cn("relative cursor-pointer", buttonVariants({ variant: 'outline' }))}>Upload new picture</label>
+        <input id="avatar-file" type="file" accept='image/*' className="hidden" onChange={onUploadAvatar} />
+        <p className="mt-1.5 text-xs text-muted-foreground">Recommended: Square JPG, PNG, at least 1,000 pixels per side.</p>
+      </div>
     </div>
   )
 }
diff --git a/ee/tabby-ui/app/(dashboard)/profile/components/profile.tsx b/ee/tabby-ui/app/(dashboard)/profile/components/profile.tsx
index 445fa1b1c5f0..5f9567003b50 100644
--- a/ee/tabby-ui/app/(dashboard)/profile/components/profile.tsx
+++ b/ee/tabby-ui/app/(dashboard)/profile/components/profile.tsx
@@ -20,7 +20,7 @@ export default function Profile() {
       <ProfileCard
         title="Your Avatar"
         description="This is your avatar image."
-        footer="The avatar customization feature will be available in a future release."
+        footerClassname="pb-0"
       >
         <Avatar />
       </ProfileCard>
diff --git a/ee/tabby-ui/components/ui/avatar.tsx b/ee/tabby-ui/components/ui/avatar.tsx
new file mode 100644
index 000000000000..51e507ba9d08
--- /dev/null
+++ b/ee/tabby-ui/components/ui/avatar.tsx
@@ -0,0 +1,50 @@
+"use client"
+
+import * as React from "react"
+import * as AvatarPrimitive from "@radix-ui/react-avatar"
+
+import { cn } from "@/lib/utils"
+
+const Avatar = React.forwardRef<
+  React.ElementRef<typeof AvatarPrimitive.Root>,
+  React.ComponentPropsWithoutRef<typeof AvatarPrimitive.Root>
+>(({ className, ...props }, ref) => (
+  <AvatarPrimitive.Root
+    ref={ref}
+    className={cn(
+      "relative flex h-10 w-10 shrink-0 overflow-hidden rounded-full",
+      className
+    )}
+    {...props}
+  />
+))
+Avatar.displayName = AvatarPrimitive.Root.displayName
+
+const AvatarImage = React.forwardRef<
+  React.ElementRef<typeof AvatarPrimitive.Image>,
+  React.ComponentPropsWithoutRef<typeof AvatarPrimitive.Image>
+>(({ className, ...props }, ref) => (
+  <AvatarPrimitive.Image
+    ref={ref}
+    className={cn("aspect-square h-full w-full", className)}
+    {...props}
+  />
+))
+AvatarImage.displayName = AvatarPrimitive.Image.displayName
+
+const AvatarFallback = React.forwardRef<
+  React.ElementRef<typeof AvatarPrimitive.Fallback>,
+  React.ComponentPropsWithoutRef<typeof AvatarPrimitive.Fallback>
+>(({ className, ...props }, ref) => (
+  <AvatarPrimitive.Fallback
+    ref={ref}
+    className={cn(
+      "flex h-full w-full items-center justify-center rounded-full bg-muted",
+      className
+    )}
+    {...props}
+  />
+))
+AvatarFallback.displayName = AvatarPrimitive.Fallback.displayName
+
+export { Avatar, AvatarImage, AvatarFallback }
diff --git a/ee/tabby-ui/components/user-avatar.tsx b/ee/tabby-ui/components/user-avatar.tsx
new file mode 100644
index 000000000000..2f8c1531fd4f
--- /dev/null
+++ b/ee/tabby-ui/components/user-avatar.tsx
@@ -0,0 +1,64 @@
+'use client'
+
+import NiceAvatar, { genConfig } from 'react-nice-avatar'
+import { mutate } from 'swr';
+import useSWRImmutable from 'swr/immutable'
+
+import { useMe } from '@/lib/hooks/use-me'
+import fetcher from '@/lib/tabby/fetcher'
+import { cn } from '@/lib/utils';
+
+import {
+  Avatar as AvatarComponent,
+  AvatarFallback,
+  AvatarImage,
+} from "@/components/ui/avatar"
+import { Skeleton } from '@/components/ui/skeleton'
+
+export function UserAvatar ({
+  className
+}: {
+  className?: string;
+}) {
+  const [{ data }] = useMe()
+  const avatarUrl = !data?.me?.email ? null : `/avatar/${data.me.id}`
+  const {
+    data: avatarImageSrc,
+    isLoading
+  } = useSWRImmutable(avatarUrl, (url: string) => {
+    return fetcher(url, {
+      responseFormatter: async response => {
+        if (!response.ok) return undefined
+        const blob = await response.blob()
+        const buffer = Buffer.from(await blob.arrayBuffer())
+        return `data:image/png;base64,${buffer.toString('base64')}`
+      }
+    })
+  })
+
+  if (!data?.me?.email) return null
+
+  if (isLoading) {
+    return (
+      <Skeleton className={cn('h-16 w-16 rounded-full', className)} />
+    )
+  }
+  
+  if (!avatarImageSrc) {
+    const config = genConfig(data.me.email)
+    return (
+      <NiceAvatar className={cn("h-16 w-16", className)} {...config} />
+    )
+  }
+
+  return (
+    <AvatarComponent className={cn("h-16 w-16", className)}>
+      <AvatarImage src={avatarImageSrc} alt={data.me.email} className="object-cover" />
+      <AvatarFallback>{data.me?.email.substring(0, 2)}</AvatarFallback>
+    </AvatarComponent>
+  )
+}
+
+export const mutateAvatar = (userId: string) => {
+  mutate(`/avatar/${userId}`)
+}
\ No newline at end of file
diff --git a/ee/tabby-ui/components/user-panel.tsx b/ee/tabby-ui/components/user-panel.tsx
index 3a38cf8af6cf..78400d2f608b 100644
--- a/ee/tabby-ui/components/user-panel.tsx
+++ b/ee/tabby-ui/components/user-panel.tsx
@@ -1,5 +1,4 @@
 import React from 'react'
-import NiceAvatar, { genConfig } from 'react-nice-avatar'
 
 import { useMe } from '@/lib/hooks/use-me'
 import { useIsChatEnabled } from '@/lib/hooks/use-server-info'
@@ -12,6 +11,7 @@ import {
   DropdownMenuSeparator,
   DropdownMenuTrigger
 } from '@/components/ui/dropdown-menu'
+import { UserAvatar } from '@/components/user-avatar'
 
 import {
   IconBackpack,
@@ -39,14 +39,10 @@ export default function UserPanel() {
     return
   }
 
-  const config = genConfig(user.email)
-
   return (
     <DropdownMenu>
       <DropdownMenuTrigger>
-        <span className="flex h-10 w-10 rounded-full border">
-          <NiceAvatar className="w-full" {...config} />
-        </span>
+        <UserAvatar className="h-10 w-10 border" />
       </DropdownMenuTrigger>
       <DropdownMenuContent collisionPadding={{ right: 16 }}>
         <DropdownMenuLabel>{user.email}</DropdownMenuLabel>
diff --git a/ee/tabby-ui/package.json b/ee/tabby-ui/package.json
index ad594ee0bb5d..66b883dbe776 100644
--- a/ee/tabby-ui/package.json
+++ b/ee/tabby-ui/package.json
@@ -26,6 +26,7 @@
     "@curvenote/ansi-to-react": "^7.0.0",
     "@hookform/resolvers": "^3.3.2",
     "@radix-ui/react-alert-dialog": "1.0.4",
+    "@radix-ui/react-avatar": "^1.0.4",
     "@radix-ui/react-checkbox": "^1.0.4",
     "@radix-ui/react-collapsible": "^1.0.3",
     "@radix-ui/react-dialog": "1.0.4",
diff --git a/ee/tabby-ui/yarn.lock b/ee/tabby-ui/yarn.lock
index 0f2e6ac5b026..8a712dda5500 100644
--- a/ee/tabby-ui/yarn.lock
+++ b/ee/tabby-ui/yarn.lock
@@ -1874,6 +1874,17 @@
     "@babel/runtime" "^7.13.10"
     "@radix-ui/react-primitive" "1.0.3"
 
+"@radix-ui/react-avatar@^1.0.4":
+  version "1.0.4"
+  resolved "https://registry.yarnpkg.com/@radix-ui/react-avatar/-/react-avatar-1.0.4.tgz#de9a5349d9e3de7bbe990334c4d2011acbbb9623"
+  integrity sha512-kVK2K7ZD3wwj3qhle0ElXhOjbezIgyl2hVvgwfIdexL3rN6zJmy5AqqIf+D31lxVppdzV8CjAfZ6PklkmInZLw==
+  dependencies:
+    "@babel/runtime" "^7.13.10"
+    "@radix-ui/react-context" "1.0.1"
+    "@radix-ui/react-primitive" "1.0.3"
+    "@radix-ui/react-use-callback-ref" "1.0.1"
+    "@radix-ui/react-use-layout-effect" "1.0.1"
+
 "@radix-ui/react-checkbox@^1.0.4":
   version "1.0.4"
   resolved "https://registry.yarnpkg.com/@radix-ui/react-checkbox/-/react-checkbox-1.0.4.tgz#98f22c38d5010dd6df4c5744cac74087e3275f4b"