diff --git a/api/server/controllers/FavoritesController.js b/api/server/controllers/FavoritesController.js
index bca08035cf..cc34cb1e56 100644
--- a/api/server/controllers/FavoritesController.js
+++ b/api/server/controllers/FavoritesController.js
@@ -9,6 +9,28 @@ const updateFavoritesController = async (req, res) => {
       return res.status(400).json({ message: 'Favorites data is required' });
     }
 
+    // Validate favorites structure
+    if (!Array.isArray(favorites)) {
+      return res.status(400).json({ message: 'Favorites must be an array' });
+    }
+
+    for (const fav of favorites) {
+      const hasAgent = !!fav.agentId;
+      const hasModel = !!(fav.model && fav.endpoint);
+
+      if (!hasAgent && !hasModel) {
+        return res.status(400).json({
+          message: 'Each favorite must have either agentId or model+endpoint',
+        });
+      }
+
+      if (hasAgent && hasModel) {
+        return res.status(400).json({
+          message: 'Favorite cannot have both agentId and model/endpoint',
+        });
+      }
+    }
+
     const user = await User.findByIdAndUpdate(
       userId,
       { $set: { favorites } },
diff --git a/client/src/components/Agents/AgentCard.tsx b/client/src/components/Agents/AgentCard.tsx
index 751cab9b65..6a81a1645e 100644
--- a/client/src/components/Agents/AgentCard.tsx
+++ b/client/src/components/Agents/AgentCard.tsx
@@ -48,6 +48,12 @@ const AgentCard: React.FC<AgentCardProps> = ({ agent, onClick, className = '' })
       aria-describedby={`agent-${agent.id}-description`}
       tabIndex={0}
       role="button"
+      onKeyDown={(e) => {
+        if (e.key === 'Enter' || e.key === ' ') {
+          e.preventDefault();
+          onClick();
+        }
+      }}
     >
       <div className="flex items-start justify-between">
         <div className="flex items-center gap-3">
diff --git a/client/src/components/Conversations/Conversations.tsx b/client/src/components/Conversations/Conversations.tsx
index 57dd8fcd47..4af0119475 100644
--- a/client/src/components/Conversations/Conversations.tsx
+++ b/client/src/components/Conversations/Conversations.tsx
@@ -175,7 +175,7 @@ const Conversations: FC<ConversationsProps> = ({
       }
       let rendering: JSX.Element;
       if (item.type === 'favorites') {
-        rendering = <FavoritesList />;
+        rendering = <FavoritesList isSmallScreen={isSmallScreen} toggleNav={toggleNav} />;
       } else if (item.type === 'chats-header') {
         rendering = (
           <button
diff --git a/client/src/components/Nav/Favorites/FavoriteItem.tsx b/client/src/components/Nav/Favorites/FavoriteItem.tsx
index e24466aadf..74418e71fb 100644
--- a/client/src/components/Nav/Favorites/FavoriteItem.tsx
+++ b/client/src/components/Nav/Favorites/FavoriteItem.tsx
@@ -77,7 +77,7 @@ export default function FavoriteItem({ item, type }: FavoriteItemProps) {
     return (
       <div className="mr-2 h-5 w-5">
         <EndpointIcon
-          conversation={{ endpoint: model.endpoint, model: model.model } as any}
+          conversation={{ endpoint: model.endpoint, model: model.model } as t.TConversation}
           endpoint={model.endpoint}
           model={model.model}
           size={20}
diff --git a/client/src/components/Nav/Favorites/FavoritesList.tsx b/client/src/components/Nav/Favorites/FavoritesList.tsx
index 034bb36794..e995a3bd5f 100644
--- a/client/src/components/Nav/Favorites/FavoritesList.tsx
+++ b/client/src/components/Nav/Favorites/FavoritesList.tsx
@@ -1,10 +1,12 @@
-import React, { useRef, useCallback, useMemo } from 'react';
+import React, { useRef, useCallback, useMemo, useContext } from 'react';
+import { LayoutGrid } from 'lucide-react';
+import { useNavigate } from 'react-router-dom';
 import { useDrag, useDrop } from 'react-dnd';
-import { QueryKeys, dataService } from 'librechat-data-provider';
+import { QueryKeys, dataService, PermissionTypes, Permissions } from 'librechat-data-provider';
 import { useQueries, useQueryClient } from '@tanstack/react-query';
 import type { InfiniteData } from '@tanstack/react-query';
 import type t from 'librechat-data-provider';
-import { useFavorites } from '~/hooks';
+import { useFavorites, useLocalize, useHasAccess, AuthContext } from '~/hooks';
 import FavoriteItem from './FavoriteItem';
 
 interface DraggableFavoriteItemProps {
@@ -45,7 +47,10 @@ const DraggableFavoriteItem = ({
         const hoverBoundingRect = ref.current?.getBoundingClientRect();
         const hoverMiddleY = (hoverBoundingRect.bottom - hoverBoundingRect.top) / 2;
         const clientOffset = monitor.getClientOffset();
-        const hoverClientY = (clientOffset as any).y - hoverBoundingRect.top;
+        if (!clientOffset) {
+          return;
+        }
+        const hoverClientY = clientOffset.y - hoverBoundingRect.top;
 
         if (dragIndex < hoverIndex && hoverClientY < hoverMiddleY) {
           return;
@@ -84,10 +89,44 @@ const DraggableFavoriteItem = ({
   );
 };
 
-export default function FavoritesList() {
+export default function FavoritesList({
+  isSmallScreen,
+  toggleNav,
+}: {
+  isSmallScreen?: boolean;
+  toggleNav?: () => void;
+}) {
+  const navigate = useNavigate();
+  const localize = useLocalize();
   const queryClient = useQueryClient();
+  const authContext = useContext(AuthContext);
   const { favorites, reorderFavorites, persistFavorites } = useFavorites();
 
+  const hasAccessToAgents = useHasAccess({
+    permissionType: PermissionTypes.AGENTS,
+    permission: Permissions.USE,
+  });
+
+  const hasAccessToMarketplace = useHasAccess({
+    permissionType: PermissionTypes.MARKETPLACE,
+    permission: Permissions.USE,
+  });
+
+  // Check if auth is ready (avoid race conditions)
+  const authReady =
+    authContext?.isAuthenticated !== undefined &&
+    (authContext?.isAuthenticated === false || authContext?.user !== undefined);
+
+  // Show agent marketplace when marketplace permission is enabled, auth is ready, and user has access to agents
+  const showAgentMarketplace = authReady && hasAccessToAgents && hasAccessToMarketplace;
+
+  const handleAgentMarketplace = useCallback(() => {
+    navigate('/agents');
+    if (isSmallScreen && toggleNav) {
+      toggleNav();
+    }
+  }, [navigate, isSmallScreen, toggleNav]);
+
   const agentIds = favorites.map((f) => f.agentId).filter(Boolean) as string[];
 
   const agentQueries = useQueries({
@@ -146,13 +185,29 @@ export default function FavoritesList() {
     persistFavorites(favorites);
   }, [favorites, persistFavorites]);
 
-  if (favorites.length === 0) {
+  // If no favorites and no marketplace to show, return null
+  if (favorites.length === 0 && !showAgentMarketplace) {
     return null;
   }
 
   return (
     <div className="mb-2 flex flex-col pb-2">
       <div className="mt-1 flex flex-col gap-1">
+        {/* Agent Marketplace button - identical styling to favorite items */}
+        {showAgentMarketplace && (
+          <div
+            className="group relative flex w-full cursor-pointer items-center justify-between rounded-lg px-3 py-2 text-sm text-text-primary hover:bg-surface-active-alt"
+            onClick={handleAgentMarketplace}
+            data-testid="nav-agents-marketplace-button"
+          >
+            <div className="flex flex-1 items-center truncate pr-6">
+              <div className="mr-2 h-5 w-5">
+                <LayoutGrid className="h-5 w-5 text-text-primary" />
+              </div>
+              <span className="truncate">{localize('com_agents_marketplace')}</span>
+            </div>
+          </div>
+        )}
         {favorites.map((fav, index) => {
           if (fav.agentId) {
             const agent = agentsMap[fav.agentId];
@@ -177,7 +232,7 @@ export default function FavoritesList() {
                 moveItem={moveItem}
                 onDrop={handleDrop}
               >
-                <FavoriteItem item={fav as any} type="model" />
+                <FavoriteItem item={{ model: fav.model, endpoint: fav.endpoint }} type="model" />
               </DraggableFavoriteItem>
             );
           }
diff --git a/client/src/components/Nav/Nav.tsx b/client/src/components/Nav/Nav.tsx
index 078d6f4b26..afdd60f797 100644
--- a/client/src/components/Nav/Nav.tsx
+++ b/client/src/components/Nav/Nav.tsx
@@ -21,7 +21,6 @@ import store from '~/store';
 
 const BookmarkNav = lazy(() => import('./Bookmarks/BookmarkNav'));
 const AccountSettings = lazy(() => import('./AccountSettings'));
-const AgentMarketplaceButton = lazy(() => import('./AgentMarketplaceButton'));
 
 const NAV_WIDTH_DESKTOP = '260px';
 const NAV_WIDTH_MOBILE = '320px';
@@ -160,9 +159,6 @@ const Nav = memo(
     const headerButtons = useMemo(
       () => (
         <>
-          <Suspense fallback={null}>
-            <AgentMarketplaceButton isSmallScreen={isSmallScreen} toggleNav={toggleNavVisible} />
-          </Suspense>
           {hasAccessToBookmarks && (
             <>
               <div className="mt-1.5" />
@@ -173,7 +169,7 @@ const Nav = memo(
           )}
         </>
       ),
-      [hasAccessToBookmarks, tags, isSmallScreen, toggleNavVisible],
+      [hasAccessToBookmarks, tags, isSmallScreen],
     );
 
     const [isSearchLoading, setIsSearchLoading] = useState(
diff --git a/client/src/hooks/useFavorites.ts b/client/src/hooks/useFavorites.ts
index d7024e70b6..2e81919be4 100644
--- a/client/src/hooks/useFavorites.ts
+++ b/client/src/hooks/useFavorites.ts
@@ -1,5 +1,6 @@
 import { useEffect } from 'react';
 import { useRecoilState } from 'recoil';
+import type { Favorite } from '~/store/favorites';
 import store from '~/store';
 import { useGetFavoritesQuery, useUpdateFavoritesMutation } from '~/data-provider';
 
@@ -11,13 +12,15 @@ export default function useFavorites() {
   useEffect(() => {
     if (getFavoritesQuery.data) {
       if (Array.isArray(getFavoritesQuery.data)) {
-        const mapped = getFavoritesQuery.data.map((f: any) => {
-          if (f.agentId || (f.model && f.endpoint)) return f;
-          if (f.type === 'agent' && f.id) return { agentId: f.id };
-          // Drop label and map legacy model format
-          if (f.type === 'model') return { model: f.model, endpoint: f.endpoint };
-          return f;
-        });
+        const mapped = getFavoritesQuery.data.map(
+          (f: Favorite & { type?: string; id?: string }) => {
+            if (f.agentId || (f.model && f.endpoint)) return f;
+            if (f.type === 'agent' && f.id) return { agentId: f.id };
+            // Drop label and map legacy model format
+            if (f.type === 'model') return { model: f.model, endpoint: f.endpoint };
+            return f;
+          },
+        );
         setFavorites(mapped);
       } else {
         // Handle legacy format or invalid data
diff --git a/client/src/locales/en/translation.json b/client/src/locales/en/translation.json
index 464d68f8e8..8a7ce3bfb5 100644
--- a/client/src/locales/en/translation.json
+++ b/client/src/locales/en/translation.json
@@ -71,7 +71,7 @@
   "com_agents_link_copy_failed": "Failed to copy link",
   "com_agents_load_more_label": "Load more agents from {{category}} category",
   "com_agents_loading": "Loading...",
-  "com_agents_marketplace": "Agent Marketplace",
+  "com_agents_marketplace": "Explore Agents",
   "com_agents_marketplace_subtitle": "Discover and use powerful AI agents to enhance your workflows and productivity",
   "com_agents_mcp_description_placeholder": "Explain what it does in a few words",
   "com_agents_mcp_icon_size": "Minimum size 128 x 128 px",
diff --git a/packages/data-provider/src/data-service.ts b/packages/data-provider/src/data-service.ts
index 01ce1d77b7..88ad31db0c 100644
--- a/packages/data-provider/src/data-service.ts
+++ b/packages/data-provider/src/data-service.ts
@@ -25,11 +25,17 @@ export function deleteUser(): Promise<s.TPreset> {
   return request.delete(endpoints.deleteUser());
 }
 
-export function getFavorites(): Promise<unknown> {
+export type FavoriteItem = {
+  agentId?: string;
+  model?: string;
+  endpoint?: string;
+};
+
+export function getFavorites(): Promise<FavoriteItem[]> {
   return request.get('/api/user/settings/favorites');
 }
 
-export function updateFavorites(favorites: unknown): Promise<unknown> {
+export function updateFavorites(favorites: FavoriteItem[]): Promise<FavoriteItem[]> {
   return request.post('/api/user/settings/favorites', { favorites });
 }
 
diff --git a/packages/data-schemas/src/types/user.ts b/packages/data-schemas/src/types/user.ts
index cd26026987..a78c4679f2 100644
--- a/packages/data-schemas/src/types/user.ts
+++ b/packages/data-schemas/src/types/user.ts
@@ -34,13 +34,11 @@ export interface IUser extends Document {
   personalization?: {
     memories?: boolean;
   };
-  favorites?: {
-    agents: string[];
-    models: Array<{
-      model: string;
-      endpoint: string;
-    }>;
-  };
+  favorites?: Array<{
+    agentId?: string;
+    model?: string;
+    endpoint?: string;
+  }>;
   createdAt?: Date;
   updatedAt?: Date;
   /** Field for external source identification (for consistency with TPrincipal schema) */