diff --git a/src/components/Bookmarks.tsx b/src/components/Bookmarks.tsx
index a09df8ce..2f1c2410 100644
--- a/src/components/Bookmarks.tsx
+++ b/src/components/Bookmarks.tsx
@@ -8,6 +8,7 @@ import { Highlight } from '../types/highlights'
 import { BookmarkList } from './BookmarkList'
 import { fetchBookmarks } from '../services/bookmarkService'
 import { fetchHighlights, fetchHighlightsForArticle } from '../services/highlightService'
+import { fetchContacts } from '../services/contactService'
 import ContentPanel from './ContentPanel'
 import { HighlightsPanel } from './HighlightsPanel'
 import { ReadableContent } from '../services/readerService'
@@ -16,7 +17,7 @@ import Toast from './Toast'
 import { useSettings } from '../hooks/useSettings'
 import { useArticleLoader } from '../hooks/useArticleLoader'
 import { loadContent, BookmarkReference } from '../utils/contentLoader'
-import { HighlightMode } from './HighlightsPanel'
+import { HighlightVisibility } from './HighlightsPanel'
 export type ViewMode = 'compact' | 'cards' | 'large'
 
 interface BookmarksProps {
@@ -40,7 +41,12 @@ const Bookmarks: React.FC<BookmarksProps> = ({ relayPool, onLogout }) => {
   const [showSettings, setShowSettings] = useState(false)
   const [currentArticleCoordinate, setCurrentArticleCoordinate] = useState<string | undefined>(undefined)
   const [currentArticleEventId, setCurrentArticleEventId] = useState<string | undefined>(undefined)
-  const [highlightMode, setHighlightMode] = useState<HighlightMode>('others')
+  const [highlightVisibility, setHighlightVisibility] = useState<HighlightVisibility>({
+    nostrverse: true,
+    friends: true,
+    mine: true
+  })
+  const [followedPubkeys, setFollowedPubkeys] = useState<Set<string>>(new Set())
   const activeAccount = Hooks.useActiveAccount()
   const accountManager = Hooks.useAccountManager()
   const eventStore = useEventStore()
@@ -72,8 +78,15 @@ const Bookmarks: React.FC<BookmarksProps> = ({ relayPool, onLogout }) => {
     if (!relayPool || !activeAccount) return
     handleFetchBookmarks()
     handleFetchHighlights()
+    handleFetchContacts()
   }, [relayPool, activeAccount?.pubkey])
 
+  const handleFetchContacts = async () => {
+    if (!relayPool || !activeAccount) return
+    const contacts = await fetchContacts(relayPool, activeAccount.pubkey)
+    setFollowedPubkeys(contacts)
+  }
+
   // Apply UI settings
   useEffect(() => {
     if (settings.defaultViewMode) setViewMode(settings.defaultViewMode)
@@ -194,8 +207,9 @@ const Bookmarks: React.FC<BookmarksProps> = ({ relayPool, onLogout }) => {
             onRefresh={handleFetchHighlights}
             onHighlightClick={setSelectedHighlightId}
             currentUserPubkey={activeAccount?.pubkey}
-            highlightMode={highlightMode}
-            onHighlightModeChange={setHighlightMode}
+            highlightVisibility={highlightVisibility}
+            onHighlightVisibilityChange={setHighlightVisibility}
+            followedPubkeys={followedPubkeys}
           />
         </div>
       </div>
diff --git a/src/components/HighlightsPanel.tsx b/src/components/HighlightsPanel.tsx
index 0902ed9f..9e6ea6c7 100644
--- a/src/components/HighlightsPanel.tsx
+++ b/src/components/HighlightsPanel.tsx
@@ -1,10 +1,14 @@
 import React, { useMemo, useState } from 'react'
 import { FontAwesomeIcon } from '@fortawesome/react-fontawesome'
-import { faChevronRight, faHighlighter, faEye, faEyeSlash, faRotate, faUser, faUserGroup } from '@fortawesome/free-solid-svg-icons'
+import { faChevronRight, faHighlighter, faEye, faEyeSlash, faRotate, faUser, faUserGroup, faGlobe } from '@fortawesome/free-solid-svg-icons'
 import { Highlight } from '../types/highlights'
 import { HighlightItem } from './HighlightItem'
 
-export type HighlightMode = 'mine' | 'others'
+export interface HighlightVisibility {
+  nostrverse: boolean
+  friends: boolean
+  mine: boolean
+}
 
 interface HighlightsPanelProps {
   highlights: Highlight[]
@@ -18,8 +22,9 @@ interface HighlightsPanelProps {
   onRefresh?: () => void
   onHighlightClick?: (highlightId: string) => void
   currentUserPubkey?: string
-  highlightMode?: HighlightMode
-  onHighlightModeChange?: (mode: HighlightMode) => void
+  highlightVisibility?: HighlightVisibility
+  onHighlightVisibilityChange?: (visibility: HighlightVisibility) => void
+  followedPubkeys?: Set<string>
 }
 
 export const HighlightsPanel: React.FC<HighlightsPanelProps> = ({
@@ -34,8 +39,9 @@ export const HighlightsPanel: React.FC<HighlightsPanelProps> = ({
   onRefresh,
   onHighlightClick,
   currentUserPubkey,
-  highlightMode = 'others',
-  onHighlightModeChange
+  highlightVisibility = { nostrverse: true, friends: true, mine: true },
+  onHighlightVisibilityChange,
+  followedPubkeys = new Set()
 }) => {
   const [showUnderlines, setShowUnderlines] = useState(true)
   
@@ -45,7 +51,7 @@ export const HighlightsPanel: React.FC<HighlightsPanelProps> = ({
     onToggleUnderlines?.(newValue)
   }
   
-  // Filter highlights based on mode and URL
+  // Filter highlights based on visibility levels and URL
   const filteredHighlights = useMemo(() => {
     if (!selectedUrl) return highlights
     
@@ -75,18 +81,25 @@ export const HighlightsPanel: React.FC<HighlightsPanelProps> = ({
       })
     }
     
-    // Filter by mode (mine vs others)
-    if (!currentUserPubkey) {
-      // If no user is logged in, show all highlights (others mode only makes sense)
-      return urlFiltered
-    }
-    
-    if (highlightMode === 'mine') {
-      return urlFiltered.filter(h => h.pubkey === currentUserPubkey)
-    } else {
-      return urlFiltered.filter(h => h.pubkey !== currentUserPubkey)
-    }
-  }, [highlights, selectedUrl, highlightMode, currentUserPubkey])
+    // Classify and filter by visibility levels
+    return urlFiltered
+      .map(h => {
+        // Classify highlight level
+        let level: 'mine' | 'friends' | 'nostrverse' = 'nostrverse'
+        if (h.pubkey === currentUserPubkey) {
+          level = 'mine'
+        } else if (followedPubkeys.has(h.pubkey)) {
+          level = 'friends'
+        }
+        return { ...h, level }
+      })
+      .filter(h => {
+        // Filter by visibility settings
+        if (h.level === 'mine') return highlightVisibility.mine
+        if (h.level === 'friends') return highlightVisibility.friends
+        return highlightVisibility.nostrverse
+      })
+  }, [highlights, selectedUrl, highlightVisibility, currentUserPubkey, followedPubkeys])
   
   if (isCollapsed) {
     const hasHighlights = filteredHighlights.length > 0
@@ -115,24 +128,46 @@ export const HighlightsPanel: React.FC<HighlightsPanelProps> = ({
           {!loading && <span className="count">({filteredHighlights.length})</span>}
         </div>
         <div className="highlights-actions">
-          {currentUserPubkey && onHighlightModeChange && (
-            <div className="highlight-mode-toggle">
+          {onHighlightVisibilityChange && (
+            <div className="highlight-level-toggles">
               <button
-                onClick={() => onHighlightModeChange('mine')}
-                className={`mode-btn ${highlightMode === 'mine' ? 'active' : ''}`}
-                title="My highlights"
-                aria-label="Show my highlights"
+                onClick={() => onHighlightVisibilityChange({ 
+                  ...highlightVisibility, 
+                  nostrverse: !highlightVisibility.nostrverse 
+                })}
+                className={`level-toggle-btn ${highlightVisibility.nostrverse ? 'active' : ''}`}
+                title="Toggle nostrverse highlights"
+                aria-label="Toggle nostrverse highlights"
+                style={{ color: highlightVisibility.nostrverse ? 'var(--highlight-color-nostrverse, #9333ea)' : undefined }}
               >
-                <FontAwesomeIcon icon={faUser} />
+                <FontAwesomeIcon icon={faGlobe} />
               </button>
               <button
-                onClick={() => onHighlightModeChange('others')}
-                className={`mode-btn ${highlightMode === 'others' ? 'active' : ''}`}
-                title="Other highlights"
-                aria-label="Show highlights from others"
+                onClick={() => onHighlightVisibilityChange({ 
+                  ...highlightVisibility, 
+                  friends: !highlightVisibility.friends 
+                })}
+                className={`level-toggle-btn ${highlightVisibility.friends ? 'active' : ''}`}
+                title="Toggle friends highlights"
+                aria-label="Toggle friends highlights"
+                style={{ color: highlightVisibility.friends ? 'var(--highlight-color-friends, #f97316)' : undefined }}
               >
                 <FontAwesomeIcon icon={faUserGroup} />
               </button>
+              {currentUserPubkey && (
+                <button
+                  onClick={() => onHighlightVisibilityChange({ 
+                    ...highlightVisibility, 
+                    mine: !highlightVisibility.mine 
+                  })}
+                  className={`level-toggle-btn ${highlightVisibility.mine ? 'active' : ''}`}
+                  title="Toggle my highlights"
+                  aria-label="Toggle my highlights"
+                  style={{ color: highlightVisibility.mine ? 'var(--highlight-color-mine, #eab308)' : undefined }}
+                >
+                  <FontAwesomeIcon icon={faUser} />
+                </button>
+              )}
             </div>
           )}
           {onRefresh && (
diff --git a/src/components/Settings.tsx b/src/components/Settings.tsx
index becd51b5..3ded4754 100644
--- a/src/components/Settings.tsx
+++ b/src/components/Settings.tsx
@@ -122,13 +122,37 @@ const Settings: React.FC<SettingsProps> = ({ settings, onSave, onClose }) => {
             </div>
 
             <div className="setting-group setting-inline">
-              <label>Highlight Color</label>
+              <label>Highlight Color (Legacy)</label>
               <ColorPicker
                 selectedColor={localSettings.highlightColor || '#ffff00'}
                 onColorChange={(color) => setLocalSettings({ ...localSettings, highlightColor: color })}
               />
             </div>
 
+            <div className="setting-group setting-inline">
+              <label>My Highlights Color</label>
+              <ColorPicker
+                selectedColor={localSettings.highlightColorMine || '#eab308'}
+                onColorChange={(color) => setLocalSettings({ ...localSettings, highlightColorMine: color })}
+              />
+            </div>
+
+            <div className="setting-group setting-inline">
+              <label>Friends Highlights Color</label>
+              <ColorPicker
+                selectedColor={localSettings.highlightColorFriends || '#f97316'}
+                onColorChange={(color) => setLocalSettings({ ...localSettings, highlightColorFriends: color })}
+              />
+            </div>
+
+            <div className="setting-group setting-inline">
+              <label>Nostrverse Highlights Color</label>
+              <ColorPicker
+                selectedColor={localSettings.highlightColorNostrverse || '#9333ea'}
+                onColorChange={(color) => setLocalSettings({ ...localSettings, highlightColorNostrverse: color })}
+              />
+            </div>
+
             <div className="setting-preview">
               <div className="preview-label">Preview</div>
               <div 
diff --git a/src/hooks/useSettings.ts b/src/hooks/useSettings.ts
index 219fb7c2..e236565b 100644
--- a/src/hooks/useSettings.ts
+++ b/src/hooks/useSettings.ts
@@ -52,6 +52,11 @@ export function useSettings({ relayPool, eventStore, pubkey, accountManager }: U
     if (fontKey !== 'system') loadFont(fontKey)
     root.setProperty('--reading-font', getFontFamily(fontKey))
     root.setProperty('--reading-font-size', `${settings.fontSize || 16}px`)
+    
+    // Set highlight colors for three levels
+    root.setProperty('--highlight-color-mine', settings.highlightColorMine || '#eab308')
+    root.setProperty('--highlight-color-friends', settings.highlightColorFriends || '#f97316')
+    root.setProperty('--highlight-color-nostrverse', settings.highlightColorNostrverse || '#9333ea')
   }, [settings])
 
   const saveSettingsWithToast = useCallback(async (newSettings: UserSettings) => {
diff --git a/src/index.css b/src/index.css
index e7a2f2b0..cea0dd7a 100644
--- a/src/index.css
+++ b/src/index.css
@@ -1293,6 +1293,39 @@ body {
   color: #fff;
 }
 
+/* Three-level highlight toggles */
+.highlight-level-toggles {
+  display: flex;
+  gap: 0.25rem;
+  padding: 0.25rem;
+  background: rgba(255, 255, 255, 0.05);
+  border-radius: 4px;
+}
+
+.highlight-level-toggles .level-toggle-btn {
+  background: none;
+  border: none;
+  color: #888;
+  cursor: pointer;
+  padding: 0.375rem 0.5rem;
+  border-radius: 3px;
+  transition: all 0.2s;
+  font-size: 0.9rem;
+}
+
+.highlight-level-toggles .level-toggle-btn:hover {
+  background: rgba(255, 255, 255, 0.1);
+}
+
+.highlight-level-toggles .level-toggle-btn.active {
+  background: rgba(255, 255, 255, 0.1);
+  opacity: 1;
+}
+
+.highlight-level-toggles .level-toggle-btn:not(.active) {
+  opacity: 0.4;
+}
+
 .refresh-highlights-btn,
 .toggle-underlines-btn,
 .toggle-highlights-btn {
@@ -1555,6 +1588,68 @@ body {
   text-decoration: none;
 }
 
+/* Three-level highlight colors */
+.content-highlight-marker.level-mine,
+.content-highlight.level-mine {
+  background: color-mix(in srgb, var(--highlight-color-mine, #eab308) 35%, transparent);
+  box-shadow: 0 0 8px color-mix(in srgb, var(--highlight-color-mine, #eab308) 20%, transparent);
+}
+
+.content-highlight-marker.level-mine:hover,
+.content-highlight.level-mine:hover {
+  background: color-mix(in srgb, var(--highlight-color-mine, #eab308) 50%, transparent);
+  box-shadow: 0 0 12px color-mix(in srgb, var(--highlight-color-mine, #eab308) 30%, transparent);
+}
+
+.content-highlight-marker.level-friends,
+.content-highlight.level-friends {
+  background: color-mix(in srgb, var(--highlight-color-friends, #f97316) 35%, transparent);
+  box-shadow: 0 0 8px color-mix(in srgb, var(--highlight-color-friends, #f97316) 20%, transparent);
+}
+
+.content-highlight-marker.level-friends:hover,
+.content-highlight.level-friends:hover {
+  background: color-mix(in srgb, var(--highlight-color-friends, #f97316) 50%, transparent);
+  box-shadow: 0 0 12px color-mix(in srgb, var(--highlight-color-friends, #f97316) 30%, transparent);
+}
+
+.content-highlight-marker.level-nostrverse,
+.content-highlight.level-nostrverse {
+  background: color-mix(in srgb, var(--highlight-color-nostrverse, #9333ea) 35%, transparent);
+  box-shadow: 0 0 8px color-mix(in srgb, var(--highlight-color-nostrverse, #9333ea) 20%, transparent);
+}
+
+.content-highlight-marker.level-nostrverse:hover,
+.content-highlight.level-nostrverse:hover {
+  background: color-mix(in srgb, var(--highlight-color-nostrverse, #9333ea) 50%, transparent);
+  box-shadow: 0 0 12px color-mix(in srgb, var(--highlight-color-nostrverse, #9333ea) 30%, transparent);
+}
+
+/* Underline styles for three levels */
+.content-highlight-underline.level-mine {
+  text-decoration-color: color-mix(in srgb, var(--highlight-color-mine, #eab308) 80%, transparent);
+}
+
+.content-highlight-underline.level-mine:hover {
+  text-decoration-color: var(--highlight-color-mine, #eab308);
+}
+
+.content-highlight-underline.level-friends {
+  text-decoration-color: color-mix(in srgb, var(--highlight-color-friends, #f97316) 80%, transparent);
+}
+
+.content-highlight-underline.level-friends:hover {
+  text-decoration-color: var(--highlight-color-friends, #f97316);
+}
+
+.content-highlight-underline.level-nostrverse {
+  text-decoration-color: color-mix(in srgb, var(--highlight-color-nostrverse, #9333ea) 80%, transparent);
+}
+
+.content-highlight-underline.level-nostrverse:hover {
+  text-decoration-color: var(--highlight-color-nostrverse, #9333ea);
+}
+
 /* Ensure highlights work in both light and dark mode */
 @media (prefers-color-scheme: light) {
   .content-highlight,
@@ -1577,6 +1672,55 @@ body {
     text-decoration-color: rgba(var(--highlight-rgb, 255, 255, 0), 1);
   }
   
+  /* Three-level overrides for light mode */
+  .content-highlight-marker.level-mine,
+  .content-highlight.level-mine {
+    background: color-mix(in srgb, var(--highlight-color-mine, #eab308) 40%, transparent);
+    box-shadow: 0 0 6px color-mix(in srgb, var(--highlight-color-mine, #eab308) 15%, transparent);
+  }
+
+  .content-highlight-marker.level-mine:hover,
+  .content-highlight.level-mine:hover {
+    background: color-mix(in srgb, var(--highlight-color-mine, #eab308) 55%, transparent);
+    box-shadow: 0 0 10px color-mix(in srgb, var(--highlight-color-mine, #eab308) 25%, transparent);
+  }
+
+  .content-highlight-marker.level-friends,
+  .content-highlight.level-friends {
+    background: color-mix(in srgb, var(--highlight-color-friends, #f97316) 40%, transparent);
+    box-shadow: 0 0 6px color-mix(in srgb, var(--highlight-color-friends, #f97316) 15%, transparent);
+  }
+
+  .content-highlight-marker.level-friends:hover,
+  .content-highlight.level-friends:hover {
+    background: color-mix(in srgb, var(--highlight-color-friends, #f97316) 55%, transparent);
+    box-shadow: 0 0 10px color-mix(in srgb, var(--highlight-color-friends, #f97316) 25%, transparent);
+  }
+
+  .content-highlight-marker.level-nostrverse,
+  .content-highlight.level-nostrverse {
+    background: color-mix(in srgb, var(--highlight-color-nostrverse, #9333ea) 40%, transparent);
+    box-shadow: 0 0 6px color-mix(in srgb, var(--highlight-color-nostrverse, #9333ea) 15%, transparent);
+  }
+
+  .content-highlight-marker.level-nostrverse:hover,
+  .content-highlight.level-nostrverse:hover {
+    background: color-mix(in srgb, var(--highlight-color-nostrverse, #9333ea) 55%, transparent);
+    box-shadow: 0 0 10px color-mix(in srgb, var(--highlight-color-nostrverse, #9333ea) 25%, transparent);
+  }
+
+  .content-highlight-underline.level-mine {
+    text-decoration-color: color-mix(in srgb, var(--highlight-color-mine, #eab308) 90%, transparent);
+  }
+
+  .content-highlight-underline.level-friends {
+    text-decoration-color: color-mix(in srgb, var(--highlight-color-friends, #f97316) 90%, transparent);
+  }
+
+  .content-highlight-underline.level-nostrverse {
+    text-decoration-color: color-mix(in srgb, var(--highlight-color-nostrverse, #9333ea) 90%, transparent);
+  }
+  
   .highlight-indicator {
     background: rgba(100, 108, 255, 0.15);
     border-color: rgba(100, 108, 255, 0.4);
diff --git a/src/services/contactService.ts b/src/services/contactService.ts
new file mode 100644
index 00000000..f3a9cc77
--- /dev/null
+++ b/src/services/contactService.ts
@@ -0,0 +1,51 @@
+import { RelayPool, completeOnEose } from 'applesauce-relay'
+import { lastValueFrom, takeUntil, timer, toArray } from 'rxjs'
+import { NostrEvent } from 'nostr-tools'
+
+/**
+ * Fetches the contact list (follows) for a specific user
+ * @param relayPool - The relay pool to query
+ * @param pubkey - The user's public key
+ * @returns Set of pubkeys that the user follows
+ */
+export const fetchContacts = async (
+  relayPool: RelayPool,
+  pubkey: string
+): Promise<Set<string>> => {
+  try {
+    const relayUrls = Array.from(relayPool.relays.values()).map(relay => relay.url)
+    
+    console.log('🔍 Fetching contacts (kind 3) for user:', pubkey)
+    
+    const events = await lastValueFrom(
+      relayPool
+        .req(relayUrls, { kinds: [3], authors: [pubkey] })
+        .pipe(completeOnEose(), takeUntil(timer(10000)), toArray())
+    )
+    
+    console.log('📊 Contact events fetched:', events.length)
+    
+    if (events.length === 0) {
+      return new Set()
+    }
+    
+    // Get the most recent contact list
+    const sortedEvents = events.sort((a, b) => b.created_at - a.created_at)
+    const contactList = sortedEvents[0]
+    
+    // Extract pubkeys from 'p' tags
+    const followedPubkeys = new Set<string>()
+    for (const tag of contactList.tags) {
+      if (tag[0] === 'p' && tag[1]) {
+        followedPubkeys.add(tag[1])
+      }
+    }
+    
+    console.log('👥 Followed contacts:', followedPubkeys.size)
+    
+    return followedPubkeys
+  } catch (error) {
+    console.error('Failed to fetch contacts:', error)
+    return new Set()
+  }
+}
diff --git a/src/services/settingsService.ts b/src/services/settingsService.ts
index 3e7c1317..d0b3f778 100644
--- a/src/services/settingsService.ts
+++ b/src/services/settingsService.ts
@@ -18,6 +18,10 @@ export interface UserSettings {
   fontSize?: number
   highlightStyle?: 'marker' | 'underline'
   highlightColor?: string
+  // Three-level highlight colors
+  highlightColorNostrverse?: string
+  highlightColorFriends?: string
+  highlightColorMine?: string
 }
 
 export async function loadSettings(
diff --git a/src/types/highlights.ts b/src/types/highlights.ts
index faec449c..7e0744ab 100644
--- a/src/types/highlights.ts
+++ b/src/types/highlights.ts
@@ -1,4 +1,6 @@
 // NIP-84 Highlight types
+export type HighlightLevel = 'nostrverse' | 'friends' | 'mine'
+
 export interface Highlight {
   id: string
   pubkey: string
@@ -11,5 +13,7 @@ export interface Highlight {
   author?: string // 'p' tag with 'author' role
   context?: string // surrounding text context
   comment?: string // optional comment about the highlight
+  // Level classification (computed based on user's context)
+  level?: HighlightLevel
 }
 
diff --git a/src/utils/highlightMatching.tsx b/src/utils/highlightMatching.tsx
index 31d70883..d6243836 100644
--- a/src/utils/highlightMatching.tsx
+++ b/src/utils/highlightMatching.tsx
@@ -73,11 +73,13 @@ export function applyHighlightsToText(
     
     // Add the highlighted text
     const highlightedText = text.substring(match.startIndex, match.endIndex)
+    const levelClass = match.highlight.level ? ` level-${match.highlight.level}` : ''
     result.push(
       <mark
         key={`highlight-${match.highlight.id}-${match.startIndex}`}
-        className="content-highlight"
+        className={`content-highlight${levelClass}`}
         data-highlight-id={match.highlight.id}
+        data-highlight-level={match.highlight.level || 'nostrverse'}
         title={`Highlighted ${new Date(match.highlight.created_at * 1000).toLocaleDateString()}`}
       >
         {highlightedText}
@@ -101,8 +103,10 @@ const normalizeWhitespace = (str: string) => str.replace(/\s+/g, ' ').trim()
 // Helper to create a mark element for a highlight
 function createMarkElement(highlight: Highlight, matchText: string, highlightStyle: 'marker' | 'underline' = 'marker'): HTMLElement {
   const mark = document.createElement('mark')
-  mark.className = `content-highlight-${highlightStyle}`
+  const levelClass = highlight.level ? ` level-${highlight.level}` : ''
+  mark.className = `content-highlight-${highlightStyle}${levelClass}`
   mark.setAttribute('data-highlight-id', highlight.id)
+  mark.setAttribute('data-highlight-level', highlight.level || 'nostrverse')
   mark.setAttribute('title', `Highlighted ${new Date(highlight.created_at * 1000).toLocaleDateString()}`)
   mark.textContent = matchText
   return mark