diff --git a/components/spinner/index.js b/components/spinner/index.js
new file mode 100644
index 0000000000000..4e3c00b7845c1
--- /dev/null
+++ b/components/spinner/index.js
@@ -0,0 +1,3 @@
+const spinner = <span className="spinner is-active" />;
+
+export default () => spinner;
diff --git a/editor/sidebar/featured-image/index.js b/editor/sidebar/featured-image/index.js
new file mode 100644
index 0000000000000..288de6a6d6094
--- /dev/null
+++ b/editor/sidebar/featured-image/index.js
@@ -0,0 +1,146 @@
+/**
+ * External dependencies
+ */
+import { connect } from 'react-redux';
+
+/**
+ * WordPress dependencies
+ */
+import { Component } from 'element';
+import { __ } from 'i18n';
+import Button from 'components/button';
+import PanelBody from 'components/panel/body';
+import MediaUploadButton from 'blocks/media-upload-button';
+import Spinner from 'components/spinner';
+
+/**
+ * Internal dependencies
+ */
+import './style.scss';
+import { getEditedPostAttribute } from '../../selectors';
+import { editPost } from '../../actions';
+
+class FeaturedImage extends Component {
+	constructor() {
+		super( ...arguments );
+		this.state = {
+			media: null,
+			loading: false,
+		};
+
+		// This boolean should be removed when we provide QueryComponents
+		this.mounted = true;
+	}
+
+	componentDidMount() {
+		this.fetchMedia();
+	}
+
+	componentDidUpdate( prevProps ) {
+		if ( prevProps.featuredImageId !== this.props.featuredImageId ) {
+			this.fetchMedia();
+		}
+	}
+
+	componentWillUnmount() {
+		this.mounted = false;
+	}
+
+	fetchMedia() {
+		if ( ! this.props.featuredImageId ) {
+			this.setState( {
+				media: null,
+				loading: false,
+			} );
+			return;
+		}
+		this.setState( {
+			media: null,
+			loading: true,
+		} );
+		const mediaIdToLoad = this.props.featuredImageId;
+		new wp.api.models.Media( { id: mediaIdToLoad } ).fetch()
+			.done( ( media ) => {
+				if ( ! this.mounted || this.props.featuredImageId !== mediaIdToLoad ) {
+					return;
+				}
+				this.setState( {
+					loading: false,
+					media,
+				} );
+			} )
+			.fail( () => {
+				if ( ! this.mounted || this.props.featuredImageId !== mediaIdToLoad ) {
+					return;
+				}
+				this.setState( {
+					loading: false,
+				} );
+			} );
+	}
+
+	render() {
+		const { featuredImageId, onUpdateImage, onRemoveImage } = this.props;
+		const { media, loading } = this.state;
+
+		return (
+			<PanelBody title={ __( 'Featured image' ) } initialOpen={ false }>
+				<div className="editor-featured-image__content">
+					{ !! featuredImageId &&
+						<MediaUploadButton
+							buttonProps={ { className: 'button-link' } }
+							onSelect={ onUpdateImage }
+							type="image"
+						>
+							{ media &&
+								<img
+									className="editor-featured-image__preview"
+									src={ media.source_url }
+									alt={ __( 'Featured image' ) }
+								/>
+							}
+							{ loading && <Spinner /> }
+						</MediaUploadButton>
+					}
+					{ !! featuredImageId && media &&
+						<p className="editor-featured-image__howto">
+							{ __( 'Click the image to edit or update' ) }
+						</p>
+					}
+					{ ! featuredImageId &&
+						<MediaUploadButton
+							buttonProps={ { className: 'editor-featured-image__toggle button-link' } }
+							onSelect={ onUpdateImage }
+							type="image"
+						>
+							{ wp.i18n.__( 'Set featured image' ) }
+						</MediaUploadButton>
+					}
+					{ !! featuredImageId &&
+						<Button className="editor-featured-image__toggle button-link" onClick={ onRemoveImage }>
+							{ wp.i18n.__( 'Remove featured image' ) }
+						</Button>
+					}
+				</div>
+			</PanelBody>
+		);
+	}
+}
+
+export default connect(
+	( state ) => {
+		return {
+			featuredImageId: getEditedPostAttribute( state, 'featured_media' ),
+		};
+	},
+	( dispatch ) => {
+		return {
+			onUpdateImage( image ) {
+				dispatch( editPost( { featured_media: image.id } ) );
+			},
+			onRemoveImage() {
+				dispatch( editPost( { featured_media: null } ) );
+			},
+		};
+	}
+)( FeaturedImage );
diff --git a/editor/sidebar/featured-image/style.scss b/editor/sidebar/featured-image/style.scss
new file mode 100644
index 0000000000000..9f28c4f6ee305
--- /dev/null
+++ b/editor/sidebar/featured-image/style.scss
@@ -0,0 +1,32 @@
+.editor-featured-image__content {
+	padding: 10px 0 0;
+
+	.spinner {
+		margin: 0;
+	}
+}
+
+.editor-featured-image__toggle {
+	text-decoration: underline;
+	color: $blue-wordpress;
+
+	&:focus {
+		box-shadow: none;
+		outline: none;
+	}
+
+	&:hover {
+		color: $blue-medium;
+	}
+}
+
+.editor-featured-image__preview {
+	display: block;
+	max-width: 100%;
+}
+
+.editor-featured-image__howto {
+	color: $dark-gray-300;
+	font-style: italic;
+	margin: 10px 0;
+}
diff --git a/editor/sidebar/post-settings/index.js b/editor/sidebar/post-settings/index.js
index ce23efe639559..5f53e92928ec4 100644
--- a/editor/sidebar/post-settings/index.js
+++ b/editor/sidebar/post-settings/index.js
@@ -17,6 +17,7 @@ import IconButton from 'components/icon-button';
 import './style.scss';
 import PostStatus from '../post-status';
 import PostExcerpt from '../post-excerpt';
+import FeaturedImage from '../featured-image';
 
 const PostSettings = ( { toggleSidebar } ) => {
 	return (
@@ -32,6 +33,7 @@ const PostSettings = ( { toggleSidebar } ) => {
 			</PanelHeader>
 			<PostStatus />
 			<PostExcerpt />
+			<FeaturedImage />
 		</Panel>
 	);
 };