Favicons are a simple and fun way to add some additional branding to your website. As shown below, a favicon appears next to the url in the address bar and next to a favorite in your list of favorites.
Creating a favicon and placing it on a SharePoint site is very easy and straightforward. Here are the steps:
Create the favicon from an image using a tool such as http://www.favicon.cc/
Upload the favicon.ico file created in step 1 to an image library in your SharePoint site. In my case I uploaded the .ico file to a library called SiteImages.
Edit the master page (typically default.master) in either SharePoint Designer or by downloading a copy from the master pages gallery and opening it in an editor such as EditPlus. (To download a copy of your master page, go to Site Actions/Site Settings. Under Galleries select Master pages. Find your master page from the list. Hover over the master page and select Send To/Download a Copy from the dropdown.)
Right before the closing head tag, add the following line :
<link rel=”shortcut icon” href=”/SiteImages /favicon.ico” />
If you downloaded and edited a copy of the master page, upload it back to the gallery.
Job Done. You will need to publish the image and the amended master page accordingly.