A favicon.ico is a graphic image (icon) associated with a particular Web page and/or Web site. Many recent user agents such as graphical browsers and newsreaders display them as a visual reminder of the Web site identity in the address bar or in tabs.
You can create your image in any editor such Fireworks or Photoshop. Create a square image about 200 x 200 pixels. Keep it simple because the final generated favicon for your site will only be 16 x 16 pixels.
You can also create a Favicon (Favourite Icon) online using an online generator. The best we have found can be accessed at: http://www.favicon.cc/
To add a favicon to your Web site, you’ll need both the image and a method for specifying that the image is to be used as a favicon.
How To Install Your Favicon On Your Website
First, upload the tiny favicon.ico file to your website. In most cases you need to upload the .ico file to your website’s main root directory (the public_html folder). It will now appear along your other html files. Don’t put the file in your images folder.
Next, insert this code in every one of your html pages you wish to display the favicon:
<link rel=”shortcut icon” type=”image/x-icon” href=”/favicon.ico”>
Insert the code in every page between the <head> and </head> tags. I put mine immediately underneath the title tags. If you have a dynamic header you may need to insert the code only into the index page. Save and Upload your pages and test. Clear your browser cache to see the new favicons. That’s it!