Favicon is a small icon shown next to site URL in the address bar. In Blogger, by default orange colored blogger icon is shown as favicon. You can make your blog stand out by using your own customized icon. Before you implement the code, you can grab or make your own favicons: Make Favicons – Browse Favicons
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To get started, first you need to backup your Blogger template: Click on ‘Layout’ > ‘Edit HTML’ and then click on ‘download full template’ to save it on your computer. Now perform following steps to a change favicon in your Blogger blog:
1. Click on ‘Layout’ > ‘Edit HTML’
2. Then add following code after <head>
<link href=’http://www.URL.com/favicon.ico’ rel=’shortcut icon’/>
<link href=’http://www.URL.com/favicon.ico’ rel=’icon’/>
Above http://www.URL.com is the web address or location where your favicon is stored (hosted). You can upload favicon to Googlepages (now Closed) or on any free image hosting websites that support favicons upload.
‘favicon.ico’ is the name of your favicon file. You can use any name like myfavicon.ico and so on. After adding above code, update the http://www.URL.com and favicon.ico in the code.
Then click on save template button. Open your blog and your new favicon should be visible in the address bar!

Maravish95 and SHane
Just delete the ‘ sign in the code and retype them in their original place. Then try to save again. I think ur problem will be solved.
Thnx
Salaaam. if this hack is not working for some of you guys. search for instead of and paste below it. and change the that favicon.ico to your favicon url.
hopw this will solve some of your problem.
look it doesntt work at all it says this
Your template could not be parsed as it is not well-formed. Please make sure all XML elements are closed properly.
XML error message: Open quote is expected for attribute “{1}” associated with an element type “href”.
works very well for me. thanks for posting this. really helpful.
It worked on firefox, but not on IE 8?
I am not a programmer and when I tried this on Blogger, I got
Your template could not be parsed as it is not well-formed. Please make sure all XML elements are closed properly.
XML error message: Open quote is expected for attribute “{1}” associated with an element type “href”.
Any ideas?
It will work now.. the quotes used are not recognized by blogger
nice post, I get icons to create favicon at http://freeicon7.net
a simple Tool for favicon is http://www.favinator.de simple image upload, create animeted favicons
@Kanak
Unlike wordpress.com & Blogger blogs, this is only possible in self hosted Wordpress blogs.
I have also noticed that even if you dont add code , but just keep the favicon.ico file in root directory .. it works… I mean it automatically gets picked up as your blog’s favicon.