diff --git a/app/actions/views/channel.js b/app/actions/views/channel.js
index ce11e28e6..990e30482 100644
--- a/app/actions/views/channel.js
+++ b/app/actions/views/channel.js
@@ -7,6 +7,7 @@ import {ViewTypes} from 'app/constants';
 
 import {fetchMyChannelsAndMembers, getMyChannelMembers, selectChannel} from 'service/actions/channels';
 import {getPosts} from 'service/actions/posts';
+import {savePreferences, deletePreferences} from 'service/actions/preferences';
 import {getTeamMembersByIds} from 'service/actions/teams';
 import {Constants, UsersTypes} from 'service/constants';
 import {getChannelByName, getDirectChannelName} from 'service/utils/channel_utils';
@@ -114,3 +115,31 @@ export function handlePostDraftChanged(postDraft) {
         }, getState);
     };
 }
+
+export function closeDMChannel(channel) {
+    return async(dispatch, getState) => {
+        const state = getState();
+        const userId = state.entities.users.currentId;
+
+        const dm = [{
+            user_id: userId,
+            category: Constants.CATEGORY_DIRECT_CHANNEL_SHOW,
+            name: channel.teammate_id,
+            value: 'false'
+        }];
+
+        if (channel.isFavorite) {
+            const fav = [{
+                user_id: userId,
+                category: Constants.CATEGORY_FAVORITE_CHANNEL,
+                name: channel.id
+            }];
+            deletePreferences(fav)(dispatch, getState);
+        }
+        savePreferences(dm)(dispatch, getState).then(() => {
+            if (channel.isCurrent) {
+                selectInitialChannel(state.entities.teams.currentId)(dispatch, getState);
+            }
+        });
+    };
+}
diff --git a/app/components/channel_drawer/channel_drawer.js b/app/components/channel_drawer/channel_drawer.js
index 3b5f1d1a8..3cb2a1a48 100644
--- a/app/components/channel_drawer/channel_drawer.js
+++ b/app/components/channel_drawer/channel_drawer.js
@@ -14,6 +14,7 @@ export default class ChannelDrawer extends React.Component {
         actions: React.PropTypes.shape({
             selectChannel: React.PropTypes.func.isRequired,
             viewChannel: React.PropTypes.func.isRequired,
+            closeDMChannel: React.PropTypes.func.isRequired,
             closeChannelDrawer: React.PropTypes.func.isRequired
         }).isRequired,
         currentTeam: React.PropTypes.object,
@@ -93,6 +94,7 @@ export default class ChannelDrawer extends React.Component {
                         theme={theme}
                         onSelectChannel={this.props.actions.selectChannel}
                         onViewChannel={this.props.actions.viewChannel}
+                        handleCloseDM={this.props.actions.closeDMChannel}
                         closeChannelDrawer={this.props.actions.closeChannelDrawer}
                     />
                     }
diff --git a/app/components/channel_drawer/channel_drawer_container.js b/app/components/channel_drawer/channel_drawer_container.js
index 0893da2c5..bbcc094dc 100644
--- a/app/components/channel_drawer/channel_drawer_container.js
+++ b/app/components/channel_drawer/channel_drawer_container.js
@@ -5,6 +5,7 @@ import {bindActionCreators} from 'redux';
 import {connect} from 'react-redux';
 
 import {selectChannel, viewChannel} from 'service/actions/channels';
+import {closeDMChannel} from 'app/actions/views/channel';
 import {getChannelsByCategory} from 'service/selectors/entities/channels';
 import {closeChannelDrawer} from 'app/actions/views/drawer';
 import ChannelDrawer from './channel_drawer';
@@ -25,6 +26,7 @@ function mapDispatchToProps(dispatch) {
         actions: bindActionCreators({
             selectChannel,
             viewChannel,
+            closeDMChannel,
             closeChannelDrawer
         }, dispatch)
     };
diff --git a/app/components/channel_drawer/channel_item.js b/app/components/channel_drawer/channel_item.js
index ef5a739b4..95642dc99 100644
--- a/app/components/channel_drawer/channel_item.js
+++ b/app/components/channel_drawer/channel_item.js
@@ -16,6 +16,7 @@ export default class ChannelItem extends React.Component {
     static propTypes = {
         channel: React.PropTypes.object.isRequired,
         onSelectChannel: React.PropTypes.func.isRequired,
+        handleClose: React.PropTypes.func,
         isActive: React.PropTypes.bool.isRequired,
         hasUnread: React.PropTypes.bool.isRequired,
         mentions: React.PropTypes.number.isRequired,
@@ -28,7 +29,8 @@ export default class ChannelItem extends React.Component {
             theme,
             mentions,
             hasUnread,
-            isActive
+            isActive,
+            handleClose
         } = this.props;
 
         let iconColor = changeOpacity(theme.centerChannelColor, 0.7);
@@ -39,7 +41,7 @@ export default class ChannelItem extends React.Component {
         if (mentions && !isActive) {
             const badgeStyle = {
                 position: 'absolute',
-                top: 10,
+                top: 12,
                 right: 10,
                 flexDirection: 'row',
                 backgroundColor: theme.mentionBj
@@ -63,7 +65,7 @@ export default class ChannelItem extends React.Component {
 
         const itemStyle = {
             alignItems: 'center',
-            height: 40,
+            height: 45,
             paddingLeft: 20,
             paddingRight: 10,
             flex: 1,
@@ -73,12 +75,13 @@ export default class ChannelItem extends React.Component {
         const style = {
             marginLeft: 5,
             opacity: 0.6,
+            fontSize: 15,
             color: theme.sidebarText
         };
 
         const activeStyle = {
             width: 5,
-            height: 40,
+            height: 45,
             backgroundColor: theme.sidebarTextActiveBorder,
             position: 'absolute'
         };
@@ -149,6 +152,33 @@ export default class ChannelItem extends React.Component {
             }
         }
 
+        let closeButton = null;
+        if (handleClose && !badge) {
+            const closeStyle = {
+                position: 'absolute',
+                justifyContent: 'center',
+                alignItems: 'center',
+                opacity: 0.4,
+                width: 50,
+                height: 50,
+                right: 0,
+                flexDirection: 'row'
+            };
+
+            closeButton = (
+                <TouchableHighlight
+                    style={closeStyle}
+                    onPress={() => handleClose(channel)}
+                >
+                    <Icon
+                        name='times'
+                        size={13}
+                        color={theme.sidebarText}
+                    />
+                </TouchableHighlight>
+            );
+        }
+
         return (
             <TouchableHighlight
                 underlayColor={changeOpacity(theme.sidebarTextHoverBg, 0.3)}
@@ -166,6 +196,7 @@ export default class ChannelItem extends React.Component {
                             {channel.display_name}
                         </Text>
                         {badge}
+                        {closeButton}
                     </View>
                 </View>
             </TouchableHighlight>
diff --git a/app/components/channel_drawer/channel_list.js b/app/components/channel_drawer/channel_list.js
index f13ee8c6c..78458aa10 100644
--- a/app/components/channel_drawer/channel_list.js
+++ b/app/components/channel_drawer/channel_list.js
@@ -3,8 +3,10 @@
 
 import React from 'react';
 
-import {StyleSheet, Text, View, ListView} from 'react-native';
+import {Alert, StyleSheet, Text, View, ListView} from 'react-native';
+import {injectIntl, intlShape} from 'react-intl';
 import {buildDisplayNameAndTypeComparable} from 'service/utils/channel_utils';
+import {Constants} from 'service/constants';
 import LineDivider from 'app/components/line_divider';
 import ChannelItem from './channel_item';
 import FormattedText from 'app/components/formatted_text';
@@ -48,8 +50,9 @@ const Styles = StyleSheet.create({
     }
 });
 
-export default class ChannelList extends React.Component {
+class ChannelList extends React.Component {
     static propTypes = {
+        intl: intlShape.isRequired,
         currentTeam: React.PropTypes.object.isRequired,
         currentChannel: React.PropTypes.object,
         channels: React.PropTypes.object.isRequired,
@@ -57,6 +60,7 @@ export default class ChannelList extends React.Component {
         theme: React.PropTypes.object.isRequired,
         onSelectChannel: React.PropTypes.func.isRequired,
         onViewChannel: React.PropTypes.func.isRequired,
+        handleCloseDM: React.PropTypes.func.isRequired,
         closeChannelDrawer: React.PropTypes.func.isRequired
     };
 
@@ -140,6 +144,25 @@ export default class ChannelList extends React.Component {
         this.props.closeChannelDrawer();
     };
 
+    handleClose = (channel) => {
+        const {formatMessage} = this.props.intl;
+        Alert.alert(
+            formatMessage({id: 'mobile.channel_list.alertTitleCloseDM', defaultMessage: 'Close Direct Message'}),
+            formatMessage({
+                id: 'mobile.channel_list.alertMessageCloseDM',
+                defaultMessage: 'Are you sure you want to close the DM with {username}'
+            }, {
+                username: channel.display_name
+            }),
+            [
+                {text: formatMessage({id: 'mobile.channel_list.alertNo', defaultMessage: 'No'})},
+                {
+                    text: formatMessage({id: 'mobile.channel_list.alertYes', defaultMessage: 'Yes'}),
+                    onPress: () => this.props.handleCloseDM(channel)
+                }]
+        );
+    };
+
     getUnreadMessages = (channel) => {
         const member = this.props.channelMembers[channel.id];
         let mentions = 0;
@@ -186,6 +209,7 @@ export default class ChannelList extends React.Component {
                 hasUnread={unread}
                 mentions={mentions}
                 onSelectChannel={this.onSelectChannel}
+                handleClose={channel.type === Constants.DM_CHANNEL ? this.handleClose : null}
                 isActive={channel.isCurrent}
                 theme={this.props.theme}
             />
@@ -336,3 +360,5 @@ export default class ChannelList extends React.Component {
         );
     }
 }
+
+export default injectIntl(ChannelList);
diff --git a/assets/base/i18n/en.json b/assets/base/i18n/en.json
index 0709b14bf..e1e72238b 100644
--- a/assets/base/i18n/en.json
+++ b/assets/base/i18n/en.json
@@ -1480,6 +1480,10 @@
   "member_list.noUsersAdd": "No users to add.",
   "members_popover.msg": "Message",
   "members_popover.title": "Members",
+  "mobile.channel_list.alertTitleCloseDM": "Close Direct Message",
+  "mobile.channel_list.alertMessageCloseDM": "Are you sure you want to close the DM with {username}",
+  "mobile.channel_list.alertNo": "No",
+  "mobile.channel_list.alertYes": "Yes",
   "mobile.components.channels_list_view.yourChannels": "Your channels:",
   "mobile.components.select_server_view.enterServerUrl": "Enter Server URL",
   "mobile.components.select_server_view.continue": "Continue",
diff --git a/service/utils/channel_utils.js b/service/utils/channel_utils.js
index cc0e25d9b..0378a7733 100644
--- a/service/utils/channel_utils.js
+++ b/service/utils/channel_utils.js
@@ -98,7 +98,8 @@ function isDirectChannelVisible(userId, myPreferences, channel) {
 
 function isFavoriteChannel(myPreferences, channel) {
     const fav = myPreferences[`${Constants.CATEGORY_FAVORITE_CHANNEL}--${channel.id}`];
-    return fav && fav.value === 'true';
+    channel.isFavorite = fav && fav.value === 'true';
+    return channel.isFavorite;
 }
 
 function createMissingDirectChannels(currentUserId, allChannels, myPreferences) {