diff --git a/shared/actions/chat.js b/shared/actions/chat.js
index add9027b1a42..3df585cbccbf 100644
--- a/shared/actions/chat.js
+++ b/shared/actions/chat.js
@@ -118,7 +118,7 @@ function _inboxToConversations (inbox: GetInboxAndUnboxLocalRes, author: ?string
       info: convo.info,
       conversationIDKey: conversationIDToKey(convo.info.id),
       participants,
-      muted: false, // TODO
+      muted: false, // TODO integrate this when it's available
       time: convo.readerInfo.mtime,
       snippet,
       unreadCount: convo.readerInfo.maxMsgid - convo.readerInfo.readMsgid, // TODO likely get this from the notifications payload miles is working on
diff --git a/shared/chat/conversations-list/index.desktop.js b/shared/chat/conversations-list/index.desktop.js
index 02c9c9cb97e6..45fde4e545f4 100644
--- a/shared/chat/conversations-list/index.desktop.js
+++ b/shared/chat/conversations-list/index.desktop.js
@@ -1,62 +1,129 @@
 // @flow
 import React from 'react'
-import {Box, Text, Avatar, Icon, Usernames} from '../../common-adapters'
+import {Box, Text, MultiAvatar, Icon, Usernames} from '../../common-adapters'
 import {globalStyles, globalColors} from '../../styles'
 import {participantFilter} from '../../constants/chat'
 import {formatTimeForConversationList} from '../../util/timestamp'
 
 import type {Props} from './'
+import type {InboxState} from '../../constants/chat'
 
-const ConversationList = ({inbox, onSelectConversation, selectedConversation, onNewChat, nowOverride}: Props) => (
-  <Box style={{...globalStyles.flexBoxColumn, backgroundColor: globalColors.darkBlue4, width: 240}}>
+const AddNewRow = ({onNewChat}: Props) => (
+  <Box
+    style={{...globalStyles.flexBoxRow, ...globalStyles.clickable, minHeight: 48, justifyContent: 'center', alignItems: 'center', flexShrink: 0}}
+    onClick={() => onNewChat()}>
+    <Icon type='iconfont-new' style={{color: globalColors.blue, marginRight: 9}} />
+    <Text type='BodyBigLink'>New chat</Text>
+  </Box>
+)
+
+const rowBorderColor = (idx: number, lastParticipantIndex: number, hasUnread: boolean, isSelected: boolean) => {
+  if (idx === lastParticipantIndex) {
+    if (lastParticipantIndex === 1) {
+      if (hasUnread) {
+        return globalColors.orange
+      }
+      return isSelected ? globalColors.darkBlue2 : globalColors.darkBlue4
+    }
+    return hasUnread ? globalColors.orange : undefined
+  }
+
+  return undefined
+}
+
+const Row = ({onSelectConversation, selectedConversation, onNewChat, nowOverride, conversation}: Props & {conversation: InboxState}) => {
+  const participants = participantFilter(conversation.get('participants'))
+  const isSelected = selectedConversation === conversation.get('conversationIDKey')
+  const isMuted = conversation.get('muted')
+  // $FlowIssue
+  const avatarProps = participants.slice(0, 2).map((p, idx) => ({
+    backgroundColor: globalColors.darkBlue4,
+    username: p.username,
+    borderColor: rowBorderColor(idx, Math.min(2, participants.count()) - 1, !!conversation.get('unreadCount'), isSelected),
+  })).toArray()
+  const snippet = conversation.get('snippet')
+  const subColor = isSelected ? globalColors.white : globalColors.blue3_40
+  return (
     <Box
-      style={{...globalStyles.flexBoxRow, ...globalStyles.clickable, height: 48, justifyContent: 'center', alignItems: 'center'}}
-      onClick={() => onNewChat()}>
-      <Icon type='iconfont-new' style={{color: globalColors.blue, marginRight: 9}} />
-      <Text type='BodyBigLink'>New chat</Text>
-    </Box>
-    {inbox.map(conversation => {
-      const participants = participantFilter(conversation.get('participants'))
-
-      return (<Box
-        onClick={() => onSelectConversation(conversation.get('conversationIDKey'))}
-        title={`${conversation.get('unreadCount')} unread`}
-        style={{
-          ...containerStyle,
-          backgroundColor: selectedConversation === conversation.get('conversationIDKey') ? globalColors.darkBlue2 : globalColors.transparent,
-        }}
-        key={conversation.get('conversationIDKey')}>
-        <Avatar
-          size={32}
-          backgroundColor={globalColors.darkBlue4}
-          username={participants.first().username}
-          borderColor={conversation.get('unreadCount') ? globalColors.orange : undefined}
-        />
-        <Box style={{...globalStyles.flexBoxColumn, flex: 1, marginLeft: 12, position: 'relative'}}>
-          <Box style={{...globalStyles.flexBoxColumn, position: 'absolute', top: 0, bottom: 0, left: 0, right: 0}}>
-            <Usernames inline={true} type='Body' backgroundMode='Terminal' users={participants.toArray()} title={participants.map(p => p.username).join(', ')} />
-            <Text backgroundMode='Terminal' type='BodySmall' style={noWrapStyle}>{conversation.get('snippet')}</Text>
+      onClick={() => onSelectConversation(conversation.get('conversationIDKey'))}
+      title={`${conversation.get('unreadCount')} unread`}
+      style={{...rowContainerStyle, backgroundColor: isSelected ? globalColors.darkBlue2 : globalColors.transparent}}>
+      <Box style={{...globalStyles.flexBoxRow, flex: 1, maxWidth: 48, alignItems: 'center', justifyContent: 'flex-start', paddingLeft: 4}}>
+        <MultiAvatar singleSize={32} multiSize={24} avatarProps={avatarProps} />
+        {isMuted && <Icon type='iconfont-shh' style={shhStyle} />}
+      </Box>
+      <Box style={{...globalStyles.flexBoxRow, flex: 1, borderBottom: `solid 1px ${globalColors.black_10}`, paddingRight: 8, paddingTop: 4, paddingBottom: 4}}>
+        <Box style={{...globalStyles.flexBoxColumn, flex: 1, position: 'relative'}}>
+          <Box style={{...globalStyles.flexBoxColumn, position: 'absolute', top: 0, bottom: 0, left: 0, right: 0, alignItems: 'center', justifyContent: 'center'}}>
+            <Usernames
+              inline={true}
+              type='BodySemibold'
+              style={{color: isMuted ? globalColors.blue3_40 : globalColors.white}}
+              containerStyle={{color: isMuted ? globalColors.blue3_40 : globalColors.white, paddingRight: 7}}
+              users={participants.toArray()}
+              title={participants.map(p => p.username).join(', ')} />
+            {snippet && !isMuted && <Text type='BodySmall' style={{...noWrapStyle, color: subColor}}>{snippet}</Text>}
           </Box>
         </Box>
-        <Text backgroundMode='Terminal' type='BodySmall' style={{marginRight: 4}}>{formatTimeForConversationList(conversation.get('time'), nowOverride)}</Text>
-      </Box>)
-    })}
+        <Text type='BodySmall' style={{marginRight: 4, alignSelf: isMuted ? 'center' : 'flex-start', color: subColor}}>{formatTimeForConversationList(conversation.get('time'), nowOverride)}</Text>
+      </Box>
+    </Box>
+  )
+}
+
+const shhStyle = {
+  color: globalColors.darkBlue2,
+  alignSelf: 'flex-end',
+  marginLeft: -5,
+  marginTop: 5,
+  // TODO remove this when we get the updated icon w/ the stroke
+  textShadow: `
+    -1px -1px 0 ${globalColors.darkBlue4},
+     1px -1px 0 ${globalColors.darkBlue4},
+    -1px  1px 0 ${globalColors.darkBlue4},
+     1px  1px 0 ${globalColors.darkBlue4},
+    -2px -2px 0 ${globalColors.darkBlue4},
+     2px -2px 0 ${globalColors.darkBlue4},
+    -2px  2px 0 ${globalColors.darkBlue4},
+     2px  2px 0 ${globalColors.darkBlue4}`,
+}
+
+const ConversationList = (props: Props) => (
+  <Box style={containerStyle}>
+    <AddNewRow {...props} />
+    <Box style={scrollableStyle}>
+      {props.inbox.map(conversation => <Row {...props} key={conversation.get('conversationIDKey')} conversation={conversation} />)}
+    </Box>
   </Box>
 )
 
+const containerStyle = {
+  ...globalStyles.flexBoxColumn,
+  backgroundColor: globalColors.darkBlue4,
+  maxWidth: 240,
+  flex: 1,
+}
+
+const scrollableStyle = {
+  ...globalStyles.flexBoxColumn,
+  flex: 1,
+  overflowY: 'auto',
+}
+
 const noWrapStyle = {
-  whiteSpace: 'nowrap',
   display: 'block',
-  width: '100%',
-  textOverflow: 'ellipsis',
   overflow: 'hidden',
+  textOverflow: 'ellipsis',
+  whiteSpace: 'nowrap',
+  width: '100%',
 }
 
-const containerStyle = {
+const rowContainerStyle = {
   ...globalStyles.flexBoxRow,
   ...globalStyles.clickable,
-  padding: 4,
-  borderBottom: `solid 1px ${globalColors.black_10}`,
+  flexShrink: 0,
+  minHeight: 40,
+  maxHeight: 40,
 }
 
 export default ConversationList
diff --git a/shared/chat/dumb.js b/shared/chat/dumb.js
index 643c8c91a76f..dee6bf246ab7 100644
--- a/shared/chat/dumb.js
+++ b/shared/chat/dumb.js
@@ -150,6 +150,15 @@ const inbox = [
     snippet: 'long ago',
     unreadCount: 0,
   }),
+  new InboxStateRecord({
+    info: null,
+    participants: List(participants.slice(0, 2)),
+    conversationIDKey: 'convo6',
+    muted: false,
+    time: now - 1000 * 60 * 60 * 3,
+    snippet: '3 hours ago',
+    unreadCount: 1,
+  }),
 ]
 
 const commonConversationsProps = {
@@ -244,6 +253,14 @@ const conversationsList = {
     'Normal': {
       ...commonConversationsProps,
     },
+    'Selected Normal': {
+      ...commonConversationsProps,
+      selectedConversation: 'convo1',
+    },
+    'SelectedMuted': {
+      ...commonConversationsProps,
+      selectedConversation: 'convo3',
+    },
     'Empty': {
       ...emptyConversationsProps,
     },
diff --git a/shared/common-adapters/avatar.desktop.js b/shared/common-adapters/avatar.desktop.js
index f601df973cd2..f0abd5a08549 100644
--- a/shared/common-adapters/avatar.desktop.js
+++ b/shared/common-adapters/avatar.desktop.js
@@ -58,7 +58,7 @@ class Avatar extends PureComponent<void, Props, State> {
             ...avatarStyle,
             ...borderStyle,
             display: (!showNoAvatar && !showLoadingColor) ? 'block' : 'none',
-            backgroundColor: globalColors.white,
+            backgroundColor: this.props.backgroundColor || globalColors.white,
             opacity: this.props.hasOwnProperty('opacity') ? this.props.opacity : 1.0,
             backgroundClip: 'padding-box',
           }}
diff --git a/shared/common-adapters/index.js b/shared/common-adapters/index.js
index e14ce2e35b93..802a2a397571 100644
--- a/shared/common-adapters/index.js
+++ b/shared/common-adapters/index.js
@@ -22,6 +22,7 @@ export {default as Input} from './input'
 export {default as LinkWithIcon} from './link-with-icon'
 export {default as ListItem} from './list-item'
 export {default as Markdown} from './markdown.js'
+export {default as MultiAvatar} from './multi-avatar.js'
 export {default as Meta} from './meta'
 export {default as PlatformIcon} from './platform-icon'
 export {default as PopupMenu} from './popup-menu'
diff --git a/shared/common-adapters/multi-avatar.js b/shared/common-adapters/multi-avatar.js
new file mode 100644
index 000000000000..59c3d5ebd4b2
--- /dev/null
+++ b/shared/common-adapters/multi-avatar.js
@@ -0,0 +1,52 @@
+// @flow
+// Simple control to show multiple avatars. Just used in chat but could be expanded. Keeping this simple for now
+import Avatar from './avatar'
+import Box from './box'
+import React from 'react'
+
+import type {Props as AvatarProps, AvatarSize} from './avatar'
+
+export type Props = {
+  avatarProps: Array<AvatarProps>,
+  singleSize: AvatarSize,
+  multiSize: AvatarSize,
+  style?: ?Object,
+}
+
+const MultiAvatar = ({avatarProps, singleSize, multiSize, style}: Props) => {
+  if (avatarProps.length < 0) {
+    return null
+  }
+  if (avatarProps.length > 2) {
+    console.warn('MultiAvatar only handles up to 2 avatars')
+    return null
+  }
+
+  const leftProps: AvatarProps = avatarProps[0]
+  const rightProps: AvatarProps = avatarProps[1]
+
+  if (avatarProps.length === 1) {
+    return <Avatar {...leftProps} size={singleSize} />
+  }
+
+  return (
+    <Box style={{...containerStyle, ...style}}>
+      <Avatar {...leftProps} style={leftAvatar} size={multiSize} />
+      <Avatar {...rightProps} style={rightAvatar} size={multiSize} />
+    </Box>
+  )
+}
+
+const containerStyle = {
+  position: 'relative',
+}
+
+const leftAvatar = {
+}
+
+const rightAvatar = {
+  marginLeft: '34%',
+  marginTop: '-63%',
+}
+
+export default MultiAvatar