diff --git a/app/assets/img/icon-16-disabled.png b/app/assets/img/icon-16-disabled.png
new file mode 100644
index 0000000..414158d
Binary files /dev/null and b/app/assets/img/icon-16-disabled.png differ
diff --git a/app/background/api/badgeAPI.ts b/app/background/api/badgeAPI.ts
deleted file mode 100644
index abd01ff..0000000
--- a/app/background/api/badgeAPI.ts
+++ /dev/null
@@ -1,13 +0,0 @@
-/* This Source Code Form is subject to the terms of the Mozilla Public
- * License, v. 2.0. If a copy of the MPL was not distributed with this file,
- * You can obtain one at http://mozilla.org/MPL/2.0/. */
-
-/**
- * Sets the badge text
- * @param {string} text - The text to put on the badge
- */
-export const setBadgeText = (text: string) => {
-  if (chrome.browserAction) {
-    chrome.browserAction.setBadgeText({ text: String(text) })
-  }
-}
diff --git a/app/background/api/browserActionAPI.ts b/app/background/api/browserActionAPI.ts
new file mode 100644
index 0000000..e900fa6
--- /dev/null
+++ b/app/background/api/browserActionAPI.ts
@@ -0,0 +1,29 @@
+/* This Source Code Form is subject to the terms of the Mozilla Public
+ * License, v. 2.0. If a copy of the MPL was not distributed with this file,
+ * You can obtain one at http://mozilla.org/MPL/2.0/. */
+
+/**
+ * Sets the badge text
+ * @param {string} text - The text to put on the badge
+ */
+export const setBadgeText = (text: string) => {
+  if (chrome.browserAction) {
+    chrome.browserAction.setBadgeText({ text: String(text) })
+  }
+}
+
+/**
+ * Updates the shields icon based on shields state
+ */
+export const setIcon = (url: string, tabId: number, shieldsOn: boolean) => {
+  const shieldsEnabledIcon = '../../img/icon-16.png'
+  const shieldsDisabledIcon = '../../img/icon-16-disabled.png'
+  const isHttpOrHttps = url && /^http/.test(url)
+
+  if (chrome.browserAction) {
+    chrome.browserAction.setIcon({
+      path: shieldsOn && isHttpOrHttps ? shieldsEnabledIcon : shieldsDisabledIcon,
+      tabId
+    })
+  }
+}
diff --git a/app/background/reducers/shieldsPanelReducer.ts b/app/background/reducers/shieldsPanelReducer.ts
index 6cc454a..af5d3d9 100644
--- a/app/background/reducers/shieldsPanelReducer.ts
+++ b/app/background/reducers/shieldsPanelReducer.ts
@@ -18,7 +18,7 @@ import {
   requestShieldPanelData,
   setAllowScriptOriginsOnce
 } from '../api/shieldsAPI'
-import { setBadgeText } from '../api/badgeAPI'
+import { setBadgeText, setIcon } from '../api/browserActionAPI'
 import { reloadTab } from '../api/tabsAPI'
 import * as shieldsPanelState from '../../state/shieldsPanelState'
 import { State, Tab } from '../../types/state/shieldsPannelState'
@@ -33,12 +33,23 @@ const updateBadgeText = (state: State) => {
   }
 }
 
+const updateShieldsIcon = (state: State) => {
+  const tabId: number = shieldsPanelState.getActiveTabId(state)
+  const tab: Tab = state.tabs[tabId]
+  if (tab) {
+    const url: string = tab.url
+    const isShieldsActive: boolean = state.tabs[tabId].braveShields === 'allow'
+    setIcon(url, tabId, isShieldsActive)
+  }
+}
+
 const focusedWindowChanged = (state: State, windowId: number): State => {
   if (windowId !== -1) {
     state = shieldsPanelState.updateFocusedWindow(state, windowId)
     if (shieldsPanelState.getActiveTabId(state)) {
       requestShieldPanelData(shieldsPanelState.getActiveTabId(state))
       updateBadgeText(state)
+      updateShieldsIcon(state)
     } else {
       console.warn('no tab id so cannot request shield data from window focus change!')
     }
@@ -84,6 +95,7 @@ export default function shieldsPanelReducer (state: State = { tabs: {}, windows:
         const tabId: number = action.tabId
         state = updateActiveTab(state, windowId, tabId)
         updateBadgeText(state)
+        updateShieldsIcon(state)
         break
       }
     case tabTypes.TAB_DATA_CHANGED:
@@ -92,6 +104,7 @@ export default function shieldsPanelReducer (state: State = { tabs: {}, windows:
         if (tab.active && tab.id) {
           state = updateActiveTab(state, tab.windowId, tab.id)
           updateBadgeText(state)
+          updateShieldsIcon(state)
         }
         break
       }
@@ -105,6 +118,7 @@ export default function shieldsPanelReducer (state: State = { tabs: {}, windows:
         if (tab.active && tab.id) {
           state = updateActiveTab(state, tab.windowId, tab.id)
           updateBadgeText(state)
+          updateShieldsIcon(state)
         }
         break
       }
diff --git a/test/app/background/api/badgeAPITest.ts b/test/app/background/api/badgeAPITest.ts
deleted file mode 100644
index 72d8556..0000000
--- a/test/app/background/api/badgeAPITest.ts
+++ /dev/null
@@ -1,28 +0,0 @@
-/* global describe, it, before, after */
-/* This Source Code Form is subject to the terms of the Mozilla Public
- * License, v. 2.0. If a copy of the MPL was not distributed with this file,
- * You can obtain one at http://mozilla.org/MPL/2.0/. */
-
-import 'mocha'
-import * as sinon from 'sinon'
-import * as assert from 'assert'
-import * as badgeAPI from '../../../../app/background/api/badgeAPI'
-
-describe('Badge API', () => {
-  describe('setBadgeText', function () {
-    before(function () {
-      this.spy = sinon.spy(chrome.browserAction, 'setBadgeText')
-      this.text = '42'
-      badgeAPI.setBadgeText(this.text)
-    })
-    after(function () {
-      this.spy.restore()
-    })
-    it('calls chrome.browserAction.setBadgeText with the text', function () {
-      assert(this.spy.calledOnce)
-      assert.deepEqual(this.spy.getCall(0).args[0], {
-        text: this.text
-      })
-    })
-  })
-})
diff --git a/test/app/background/api/browserActionAPITest.ts b/test/app/background/api/browserActionAPITest.ts
new file mode 100644
index 0000000..61b01d7
--- /dev/null
+++ b/test/app/background/api/browserActionAPITest.ts
@@ -0,0 +1,86 @@
+/* global describe, it, before, after */
+/* This Source Code Form is subject to the terms of the Mozilla Public
+ * License, v. 2.0. If a copy of the MPL was not distributed with this file,
+ * You can obtain one at http://mozilla.org/MPL/2.0/. */
+
+import 'mocha'
+import * as sinon from 'sinon'
+import * as assert from 'assert'
+import * as browserActionAPI from '../../../../app/background/api/browserActionAPI'
+
+describe('BrowserAction API', () => {
+  describe('setBadgeText', function () {
+    before(function () {
+      this.spy = sinon.spy(chrome.browserAction, 'setBadgeText')
+      this.text = '42'
+      browserActionAPI.setBadgeText(this.text)
+    })
+    after(function () {
+      this.spy.restore()
+    }) 
+    it('calls chrome.browserAction.setBadgeText with the text', function () {
+      assert(this.spy.calledOnce)
+      assert.deepEqual(this.spy.getCall(0).args[0], {
+        text: this.text
+      })
+    })
+  })
+  describe('setIcon', function () {
+    const enabledIconPath = '../../img/icon-16.png'
+    const disabledIconPath = '../../img/icon-16-disabled.png'
+    before(function () {
+      this.spy = sinon.spy(chrome.browserAction, 'setIcon')
+      this.url = 'https://brave.com'
+      this.tabId = 1
+      this.shieldsEnabled = true
+    })
+    after(function () {
+      this.spy.restore()
+    })
+    afterEach(function () {
+      this.spy.reset()
+    })
+    it('sets the enabled icon when protocol is http', function () {
+      this.url = 'http://not-very-awesome-http-page.com'
+      browserActionAPI.setIcon(this.url, this.tabId, this.shieldsEnabled)
+      assert.deepEqual(this.spy.getCall(0).args[0], {
+        path: enabledIconPath,
+        tabId: this.tabId
+      })
+    })
+    it('sets the enabled icon when protocol is https', function () {
+      this.url = 'https://very-awesome-https-page.com'
+      browserActionAPI.setIcon(this.url, this.tabId, this.shieldsEnabled)
+      assert.deepEqual(this.spy.getCall(0).args[0], {
+        path: enabledIconPath,
+        tabId: this.tabId
+      })
+    })
+    it('sets the disabled icon when the protocol is neither https nor http', function () {
+      this.url = 'brave://welcome'
+      browserActionAPI.setIcon(this.url, this.tabId, this.shieldsEnabled)
+      assert.deepEqual(this.spy.getCall(0).args[0], {
+        path: disabledIconPath,
+        tabId: this.tabId
+      })
+    })
+    it('sets the disabled icon when the protocol is http and shield is off', function () {
+      this.url = 'http://not-very-awesome-http-page.com'
+      this.shieldsEnabled = false
+      browserActionAPI.setIcon(this.url, this.tabId, this.shieldsEnabled)
+      assert.deepEqual(this.spy.getCall(0).args[0], {
+        path: disabledIconPath,
+        tabId: this.tabId
+      })
+    })
+    it('sets the disabled icon when the protocol is https and shield is off', function () {
+      this.url = 'https://very-awesome-https-page.com'
+      this.shieldsEnabled = false
+      browserActionAPI.setIcon(this.url, this.tabId, this.shieldsEnabled)
+      assert.deepEqual(this.spy.getCall(0).args[0], {
+        path: disabledIconPath,
+        tabId: this.tabId
+      })
+    })
+  })
+})
diff --git a/test/app/background/reducers/shieldsPanelReducerTest.ts b/test/app/background/reducers/shieldsPanelReducerTest.ts
index 2c97542..2d73924 100644
--- a/test/app/background/reducers/shieldsPanelReducerTest.ts
+++ b/test/app/background/reducers/shieldsPanelReducerTest.ts
@@ -13,7 +13,7 @@ import * as webNavigationTypes from '../../../../app/constants/webNavigationType
 import shieldsPanelReducer from '../../../../app/background/reducers/shieldsPanelReducer'
 import * as shieldsAPI from '../../../../app/background/api/shieldsAPI'
 import * as tabsAPI from '../../../../app/background/api/tabsAPI'
-import * as badgeAPI from '../../../../app/background/api/badgeAPI'
+import * as browserActionAPI from '../../../../app/background/api/browserActionAPI'
 import * as shieldsPanelState from '../../../../app/state/shieldsPanelState'
 import { initialState } from '../../../testData'
 import * as deepFreeze from 'deep-freeze-node'
@@ -112,7 +112,9 @@ describe('braveShieldsPanelReducer', () => {
         windows: {
           1: this.tabId
         },
-        tabs: {}
+        tabs: {
+          [this.tabId]: { url: 'https://brave.com' }
+        }
       })
       shieldsPanelReducer(state, {
         type: windowTypes.WINDOW_FOCUS_CHANGED,
@@ -419,7 +421,7 @@ describe('braveShieldsPanelReducer', () => {
 
   describe('RESOURCE_BLOCKED', function () {
     before(function () {
-      this.spy = sinon.spy(badgeAPI, 'setBadgeText')
+      this.spy = sinon.spy(browserActionAPI, 'setBadgeText')
     })
     after(function () {
       this.spy.restore()
diff --git a/test/testData.ts b/test/testData.ts
index fe6553a..665186f 100644
--- a/test/testData.ts
+++ b/test/testData.ts
@@ -73,7 +73,8 @@ export const getMockChrome = () => {
       onStartup: new ChromeEvent()
     },
     browserAction: {
-      setBadgeText: function (text: string) { }
+      setBadgeText: function (text: string) { },
+      setIcon: function (icon: string, tabId: number) { }
     },
     tabs: {
       queryAsync: function () {