diff --git a/doc/nvim-tree-lua.txt b/doc/nvim-tree-lua.txt
index 8efcb0f5ee2..e72b998b8ec 100644
--- a/doc/nvim-tree-lua.txt
+++ b/doc/nvim-tree-lua.txt
@@ -223,6 +223,7 @@ Subsequent calls to setup will replace the previous configuration.
         highlight_git = false,
         full_name = false,
         highlight_opened_files = "none",
+        highlight_modified = "none",
         root_folder_label = ":~:s?$?/..?",
         indent_width = 2,
         indent_markers = {
@@ -239,6 +240,7 @@ Subsequent calls to setup will replace the previous configuration.
         icons = {
           webdev_colors = true,
           git_placement = "before",
+          modified_placement = "after",
           padding = " ",
           symlink_arrow = " ➛ ",
           show = {
@@ -246,11 +248,13 @@ Subsequent calls to setup will replace the previous configuration.
             folder = true,
             folder_arrow = true,
             git = true,
+            modified = true,
           },
           glyphs = {
             default = "",
             symlink = "",
             bookmark = "",
+            modified = "●",
             folder = {
               arrow_closed = "",
               arrow_open = "",
@@ -325,6 +329,11 @@ Subsequent calls to setup will replace the previous configuration.
         show_on_open_dirs = true,
         timeout = 400,
       },
+      modified = {
+        enable = false,
+        show_on_dirs = true,
+        show_on_open_dirs = true,
+      },
       actions = {
         use_system_clipboard = true,
         change_dir = {
@@ -543,6 +552,7 @@ Configuration options for the system open command.
 
 *nvim-tree.diagnostics*
 Show LSP and COC diagnostics in the signcolumn
+Note that the modified sign will take precedence over the diagnostics signs.
 
     `NOTE`: it will use the default diagnostic color groups to highlight the signs.
     If you wish to customize, you can override these groups:
@@ -618,6 +628,26 @@ Git integration with icons and colors.
   milliseconds but a few seconds), it will not render anything until the git
   process returned the data.
 
+*nvim-tree.modified*
+Indicate which file have unsaved modification.
+
+    *nvim-tree.modified.enable*
+    Enable / disable the feature.
+      Type: `boolean`, Default: `false`
+
+    *nvim-tree.modified.show_on_dirs*
+    Show modified indication on directory whose children are modified.
+      Type: `boolean`, Default: `true`
+
+    *nvim-tree.modified.show_on_open_dirs*
+    Show modified indication on open directories.
+    Only relevant when |modified.show_on_dirs| is `true`.
+      Type: `boolean`, Default: `true`
+
+  You will still need to set |renderer.icons.show.modified| `= true` or
+  |renderer.highlight_modified| `= true` to be able to see things in the
+  tree.
+
 *nvim-tree.filesystem_watchers*
 Will use file system watcher (libuv fs_event) to watch the filesystem for
 changes.
@@ -774,6 +804,13 @@ UI rendering setup
     Value can be `"none"`, `"icon"`, `"name"` or `"all"`.
       Type: `string`, Default: `"none"`
 
+    *nvim-tree.renderer.highlight_modified*
+    Highlight icons and/or names for modified files using `NvimTreeModified`
+    highlight groups.
+    Value can be `"none"`, `"icon"`, `"name"` or `"all"`
+    This can be used with or without the icons.
+      Type: `string`, Default `"none"`
+
     *nvim-tree.renderer.root_folder_label*  (previously `renderer.root_folder_modifier`)
     In what format to show root folder. See `:help filename-modifiers` for
     available `string` options.
@@ -816,12 +853,17 @@ UI rendering setup
         Place where the git icons will be rendered.
         Can be `"after"` or `"before"` filename (after the file/folders icons)
         or `"signcolumn"` (requires |nvim-tree.view.signcolumn| enabled).
-        Note that the diagnostic signs will take precedence over the git signs.
+        Note that the diagnostic signs and the modified sign will take precedence over the git signs.
           Type: `string`, Default: `before`
 
+        *nvim-tree.renderer.icons.modified_placement*
+        Place where the modified icon will be rendered.
+        Can be `"after"` or `"before"` filename (after the file/folders icons)
+        or `"signcolumn"` (requires |nvim-tree.view.signcolumn| enabled).
+          Type: `string`, Default: `after`
+
         *nvim-tree.renderer.icons.padding*
         Inserted between icon and filename.
-        Use with caution, it could break rendering if you set an empty string depending on your font.
           Type: `string`, Default: `" "`
 
         *nvim-tree.renderer.icons.symlink_arrow*
@@ -849,8 +891,15 @@ UI rendering setup
             Requires |git.enable| `= true`
               Type: `boolean`, Default: `true`
 
+            *nvim-tree.renderer.icons.show.modified*
+            Show a modified icon, see |renderer.icons.modified_placement|
+            Requires |modified.enable| `= true`
+              Type: `boolean`, Default: `true`
+
         *nvim-tree.renderer.icons.glyphs*
         Configuration options for icon glyphs.
+        NOTE: Do not set any glyphs to more than two characters if it's going
+        to appear in the signcolumn.
 
             *nvim-tree.renderer.icons.glyphs.default*
             Glyph for files. Will be overridden by `nvim-web-devicons` if available.
@@ -860,6 +909,10 @@ UI rendering setup
             Glyph for symlinks to files.
               Type: `string`, Default: `""`
 
+            *nvim-tree.renderer.icons.glyphs.modified*
+            Icon to display for modified files.
+              Type: `string`, Default: `"●"`
+
             *nvim-tree.renderer.icons.glyphs.folder*
             Glyphs for directories.
               Type: `table`, Default:
@@ -1466,6 +1519,7 @@ NvimTreeEmptyFolderName     (Directory)
 NvimTreeOpenedFolderName    (Directory)
 NvimTreeExecFile
 NvimTreeOpenedFile
+NvimTreeModifiedFile
 NvimTreeSpecialFile
 NvimTreeImageFile
 NvimTreeIndentMarker
diff --git a/lua/nvim-tree.lua b/lua/nvim-tree.lua
index 63863a3dd90..9b0fe95a9dd 100644
--- a/lua/nvim-tree.lua
+++ b/lua/nvim-tree.lua
@@ -12,6 +12,7 @@ local copy_paste = require "nvim-tree.actions.fs.copy-paste"
 local collapse_all = require "nvim-tree.actions.tree-modifiers.collapse-all"
 local git = require "nvim-tree.git"
 local filters = require "nvim-tree.explorer.filters"
+local modified = require "nvim-tree.modified"
 
 local _config = {}
 
@@ -476,6 +477,15 @@ local function setup_autocommands(opts)
       end,
     })
   end
+
+  if opts.modified.enable then
+    create_nvim_tree_autocmd({ "BufModifiedSet", "BufWritePost" }, {
+      callback = function()
+        modified.reload()
+        reloaders.reload_explorer()
+      end,
+    })
+  end
 end
 
 local DEFAULT_OPTS = { -- BEGIN_DEFAULT_OPTS
@@ -531,6 +541,7 @@ local DEFAULT_OPTS = { -- BEGIN_DEFAULT_OPTS
     highlight_git = false,
     full_name = false,
     highlight_opened_files = "none",
+    highlight_modified = "none",
     root_folder_label = ":~:s?$?/..?",
     indent_width = 2,
     indent_markers = {
@@ -547,6 +558,7 @@ local DEFAULT_OPTS = { -- BEGIN_DEFAULT_OPTS
     icons = {
       webdev_colors = true,
       git_placement = "before",
+      modified_placement = "after",
       padding = " ",
       symlink_arrow = " ➛ ",
       show = {
@@ -554,11 +566,13 @@ local DEFAULT_OPTS = { -- BEGIN_DEFAULT_OPTS
         folder = true,
         folder_arrow = true,
         git = true,
+        modified = true,
       },
       glyphs = {
         default = "",
         symlink = "",
         bookmark = "",
+        modified = "●",
         folder = {
           arrow_closed = "",
           arrow_open = "",
@@ -633,6 +647,11 @@ local DEFAULT_OPTS = { -- BEGIN_DEFAULT_OPTS
     show_on_open_dirs = true,
     timeout = 400,
   },
+  modified = {
+    enable = false,
+    show_on_dirs = true,
+    show_on_open_dirs = true,
+  },
   actions = {
     use_system_clipboard = true,
     change_dir = {
@@ -809,6 +828,7 @@ function M.setup(conf)
   require("nvim-tree.renderer").setup(opts)
   require("nvim-tree.live-filter").setup(opts)
   require("nvim-tree.marks").setup(opts)
+  require("nvim-tree.modified").setup(opts)
   if M.config.renderer.icons.show.file and pcall(require, "nvim-web-devicons") then
     require("nvim-web-devicons").setup()
   end
diff --git a/lua/nvim-tree/colors.lua b/lua/nvim-tree/colors.lua
index d490661d86c..e10c7668a8d 100644
--- a/lua/nvim-tree/colors.lua
+++ b/lua/nvim-tree/colors.lua
@@ -40,6 +40,7 @@ local function get_hl_groups()
     SpecialFile = { gui = "bold,underline", fg = colors.yellow },
     ImageFile = { gui = "bold", fg = colors.purple },
     OpenedFile = { gui = "bold", fg = colors.green },
+    ModifiedFile = { fg = colors.green },
 
     GitDirty = { fg = colors.dark_red },
     GitDeleted = { fg = colors.dark_red },
diff --git a/lua/nvim-tree/modified.lua b/lua/nvim-tree/modified.lua
new file mode 100644
index 00000000000..eff1a18e9ed
--- /dev/null
+++ b/lua/nvim-tree/modified.lua
@@ -0,0 +1,34 @@
+local M = {}
+
+---@type table<string, boolean> record of which file is modified
+M._record = {}
+
+---refresh M.record
+function M.reload()
+  M._record = {}
+  local bufs = vim.fn.getbufinfo { bufmodified = true, buflisted = true }
+  for _, buf in pairs(bufs) do
+    local path = buf.name
+    M._record[path] = true
+    while path ~= vim.fn.getcwd() and path ~= "/" do
+      path = vim.fn.fnamemodify(path, ":h")
+      M._record[path] = true
+    end
+  end
+end
+
+---@param node table
+---@return boolean
+function M.is_modified(node)
+  return M.config.enable
+    and M._record[node.absolute_path]
+    and (not node.nodes or M.config.show_on_dirs)
+    and (not node.open or M.config.show_on_open_dirs)
+end
+
+---@param opts table
+function M.setup(opts)
+  M.config = opts.modified
+end
+
+return M
diff --git a/lua/nvim-tree/renderer/builder.lua b/lua/nvim-tree/renderer/builder.lua
index bcffeb377d1..03ce3585cb2 100644
--- a/lua/nvim-tree/renderer/builder.lua
+++ b/lua/nvim-tree/renderer/builder.lua
@@ -4,6 +4,7 @@ local core = require "nvim-tree.core"
 local git = require "nvim-tree.renderer.components.git"
 local pad = require "nvim-tree.renderer.components.padding"
 local icons = require "nvim-tree.renderer.components.icons"
+local modified = require "nvim-tree.renderer.components.modified"
 
 local Builder = {}
 Builder.__index = Builder
@@ -50,21 +51,32 @@ end
 
 function Builder:configure_opened_file_highlighting(highlight_opened_files)
   self.highlight_opened_files = highlight_opened_files
+  return self
+end
 
+function Builder:configure_modified_highlighting(highlight_modified)
+  self.highlight_modified = highlight_modified
   return self
 end
 
-function Builder:configure_git_icons_padding(padding)
-  self.git_icon_padding = padding or " "
+function Builder:configure_icon_padding(padding)
+  self.icon_padding = padding or " "
   return self
 end
 
 function Builder:configure_git_icons_placement(where)
-  if where == "signcolumn" then
-    vim.fn.sign_unplace(git.SIGN_GROUP)
-    self.is_git_sign = true
+  if where ~= "after" and where ~= "before" and where ~= "signcolumn" then
+    where = "before" -- default before
+  end
+  self.git_placement = where
+  return self
+end
+
+function Builder:configure_modified_placement(where)
+  if where ~= "after" and where ~= "before" and where ~= "signcolumn" then
+    where = "after" -- default after
   end
-  self.is_git_after = where == "after" and not self.is_git_sign
+  self.modified_placement = where
   return self
 end
 
@@ -91,46 +103,48 @@ local function get_folder_name(node)
   return name
 end
 
-function Builder:_unwrap_git_data(git_icons_and_hl_groups, offset)
-  if not git_icons_and_hl_groups then
+---@class HighlightedString
+---@field str string
+---@field hl string|nil
+
+---@param highlighted_strings HighlightedString[]
+---@return string
+function Builder:_unwrap_highlighted_strings(highlighted_strings)
+  if not highlighted_strings then
     return ""
   end
 
-  local icon = ""
-  for i, v in ipairs(git_icons_and_hl_groups) do
-    if #v.icon > 0 then
-      self:_insert_highlight(v.hl, offset + #icon, offset + #icon + #v.icon)
-      local remove_padding = self.is_git_after and i == #git_icons_and_hl_groups
-      icon = icon .. v.icon .. (remove_padding and "" or self.git_icon_padding)
+  local string = ""
+  for _, v in ipairs(highlighted_strings) do
+    if #v.str > 0 then
+      if v.hl then
+        self:_insert_highlight(v.hl, #string, #string + #v.str)
+      end
+      string = string .. v.str
     end
   end
-  return icon
+  return string
 end
 
-function Builder:_build_folder(node, padding, git_hl, git_icons_tbl)
-  local offset = string.len(padding)
-
-  local name = get_folder_name(node)
+---@param node table
+---@return HighlightedString icon, HighlightedString name
+function Builder:_build_folder(node)
   local has_children = #node.nodes ~= 0 or node.has_children
   local icon = icons.get_folder_icon(node.open, node.link_to ~= nil, has_children)
 
-  local foldername = name .. self.trailing_slash
+  local foldername = get_folder_name(node) .. self.trailing_slash
   if node.link_to and self.symlink_destination then
     local arrow = icons.i.symlink_arrow
     local link_to = utils.path_relative(node.link_to, core.get_cwd())
     foldername = foldername .. arrow .. link_to
   end
 
-  local git_icons = self:_unwrap_git_data(git_icons_tbl, offset + #icon + (self.is_git_after and #foldername + 1 or 0))
-  local fname_starts_at = offset + #icon + (self.is_git_after and 0 or #git_icons)
-  local line = self:_format_line(padding .. icon, foldername, git_icons)
-  self:_insert_line(line)
-
+  local icon_hl
   if #icon > 0 then
     if node.open then
-      self:_insert_highlight("NvimTreeOpenedFolderIcon", offset, offset + #icon)
+      icon_hl = "NvimTreeOpenedFolderIcon"
     else
-      self:_insert_highlight("NvimTreeClosedFolderIcon", offset, offset + #icon)
+      icon_hl = "NvimTreeClosedFolderIcon"
     end
   end
 
@@ -143,27 +157,12 @@ function Builder:_build_folder(node, padding, git_hl, git_icons_tbl)
     foldername_hl = "NvimTreeEmptyFolderName"
   end
 
-  self:_insert_highlight(foldername_hl, fname_starts_at, fname_starts_at + #foldername)
-
-  if git_hl then
-    self:_insert_highlight(git_hl, fname_starts_at, fname_starts_at + #foldername)
-  end
+  return { str = icon, hl = icon_hl }, { str = foldername, hl = foldername_hl }
 end
 
-function Builder:_format_line(before, after, git_icons)
-  git_icons = self.is_git_after and git_icons and " " .. git_icons or git_icons
-  return string.format(
-    "%s%s%s%s",
-    before,
-    self.is_git_after and "" or git_icons,
-    after,
-    self.is_git_after and git_icons or ""
-  )
-end
-
-function Builder:_build_symlink(node, padding, git_highlight, git_icons_tbl)
-  local offset = string.len(padding)
-
+---@param node table
+---@return HighlightedString icon, HighlightedString name
+function Builder:_build_symlink(node)
   local icon = icons.i.symlink
   local arrow = icons.i.symlink_arrow
   local symlink_formatted = node.name
@@ -172,107 +171,173 @@ function Builder:_build_symlink(node, padding, git_highlight, git_icons_tbl)
     symlink_formatted = symlink_formatted .. arrow .. link_to
   end
 
-  local link_highlight = git_highlight or "NvimTreeSymlink"
-
-  local git_icons_starts_at = offset + #icon + (self.is_git_after and #symlink_formatted + 1 or 0)
-  local git_icons = self:_unwrap_git_data(git_icons_tbl, git_icons_starts_at)
-  local line = self:_format_line(padding .. icon, symlink_formatted, git_icons)
+  local link_highlight = "NvimTreeSymlink"
 
-  self:_insert_highlight(link_highlight, offset + (self.is_git_after and 0 or #git_icons), string.len(line))
-  self:_insert_line(line)
+  return { str = icon }, { str = symlink_formatted, hl = link_highlight }
 end
 
-function Builder:_build_file_icon(node, offset)
+---@param node table
+---@return HighlightedString icon
+function Builder:_build_file_icon(node)
   local icon, hl_group = icons.get_file_icon(node.name, node.extension)
-  if hl_group then
-    self:_insert_highlight(hl_group, offset, offset + #icon)
-  end
-  return icon, false
+  return { str = icon, hl = hl_group }
 end
 
-function Builder:_highlight_opened_files(node, offset, icon_length, git_icons_length)
-  local from = offset
-  local to = offset
-
-  if self.highlight_opened_files == "icon" then
-    to = from + icon_length
-  elseif self.highlight_opened_files == "name" then
-    from = offset + icon_length + git_icons_length
-    to = from + #node.name
-  elseif self.highlight_opened_files == "all" then
-    to = from + icon_length + git_icons_length + #node.name
+---@param node table
+---@return HighlightedString icon, HighlightedString name
+function Builder:_build_file(node)
+  local icon = self:_build_file_icon(node)
+
+  local hl
+  if vim.tbl_contains(self.special_files, node.absolute_path) or vim.tbl_contains(self.special_files, node.name) then
+    hl = "NvimTreeSpecialFile"
+  elseif node.executable then
+    hl = "NvimTreeExecFile"
+  elseif self.picture_map[node.extension] then
+    hl = "NvimTreeImageFile"
   end
 
-  self:_insert_highlight("NvimTreeOpenedFile", from, to)
+  return icon, { str = node.name, hl = hl }
 end
 
-function Builder:_build_file(node, padding, git_highlight, git_icons_tbl, unloaded_bufnr)
-  local offset = string.len(padding)
-
-  local icon = self:_build_file_icon(node, offset)
-
-  local git_icons_starts_at = offset + #icon + (self.is_git_after and #node.name + 1 or 0)
-  local git_icons = self:_unwrap_git_data(git_icons_tbl, git_icons_starts_at)
+---@param node table
+---@return HighlightedString[]|nil icon
+function Builder:_get_git_icons(node)
+  local git_icons = git.get_icons(node)
+  if git_icons and #git_icons > 0 and self.git_placement == "signcolumn" then
+    local sign = git_icons[1]
+    table.insert(self.signs, { sign = sign.hl, lnum = self.index + 1, priority = 1 })
+    git_icons = nil
+  end
+  return git_icons
+end
 
-  self:_insert_line(self:_format_line(padding .. icon, node.name, git_icons))
+---@param node table
+---@return HighlightedString|nil icon
+function Builder:_get_modified_icon(node)
+  local modified_icon = modified.get_icon(node)
+  if modified_icon and self.modified_placement == "signcolumn" then
+    local sign = modified_icon
+    table.insert(self.signs, { sign = sign.hl, lnum = self.index + 1, priority = 3 })
+    modified_icon = nil
+  end
+  return modified_icon
+end
 
-  local git_icons_length = self.is_git_after and 0 or #git_icons
-  local col_start = offset + #icon + git_icons_length
-  local col_end = col_start + #node.name
+---@param node table
+---@return string icon_highlight, string name_highlight
+function Builder:_get_highlight_override(node, unloaded_bufnr)
+  -- highlights precedence:
+  -- original < git < opened_file < modified
+  local name_hl, icon_hl
 
-  if vim.tbl_contains(self.special_files, node.absolute_path) or vim.tbl_contains(self.special_files, node.name) then
-    self:_insert_highlight("NvimTreeSpecialFile", col_start, col_end)
-  elseif node.executable then
-    self:_insert_highlight("NvimTreeExecFile", col_start, col_end)
-  elseif self.picture_map[node.extension] then
-    self:_insert_highlight("NvimTreeImageFile", col_start, col_end)
+  -- git
+  local git_highlight = git.get_highlight(node)
+  if git_highlight then
+    name_hl = git_highlight
   end
 
-  local should_highlight_opened_files = self.highlight_opened_files
+  -- opened file
+  if
+    self.highlight_opened_files
     and vim.fn.bufloaded(node.absolute_path) > 0
     and vim.fn.bufnr(node.absolute_path) ~= unloaded_bufnr
-  if should_highlight_opened_files then
-    self:_highlight_opened_files(node, offset, #icon, git_icons_length)
+  then
+    if self.highlight_opened_files == "all" or self.highlight_opened_files == "name" then
+      name_hl = "NvimTreeOpenedFile"
+    end
+    if self.highlight_opened_files == "all" or self.highlight_opened_files == "icon" then
+      icon_hl = "NvimTreeOpenedFile"
+    end
   end
 
-  if git_highlight then
-    self:_insert_highlight(git_highlight, col_start, col_end)
+  -- modified file
+  local modified_highlight = modified.get_highlight(node)
+  if modified_highlight then
+    if self.highlight_modified == "all" or self.highlight_modified == "name" then
+      name_hl = modified_highlight
+    end
+    if self.highlight_modified == "all" or self.highlight_modified == "icon" then
+      icon_hl = modified_highlight
+    end
   end
+
+  return icon_hl, name_hl
 end
 
-function Builder:_build_line(node, idx, num_children, unloaded_bufnr)
-  local padding = pad.get_padding(self.depth, idx, num_children, node, self.markers)
+---@param padding HighlightedString
+---@param icon HighlightedString
+---@param name HighlightedString
+---@param git_icons HighlightedString[]|nil
+---@param modified_icon HighlightedString|nil
+---@return HighlightedString[]
+function Builder:_format_line(padding, icon, name, git_icons, modified_icon)
+  local added_len = 0
+  local function add_to_end(t1, t2)
+    for _, v in ipairs(t2) do
+      if added_len > 0 then
+        table.insert(t1, { str = self.icon_padding })
+      end
+      table.insert(t1, v)
+    end
 
-  if string.len(padding) > 0 then
-    self:_insert_highlight("NvimTreeIndentMarker", 0, string.len(padding))
+    -- first add_to_end don't need padding
+    -- hence added_len is calculated at the end to be used next time
+    added_len = 0
+    for _, v in ipairs(t2) do
+      added_len = added_len + #v.str
+    end
   end
 
-  local git_highlight = git.get_highlight(node)
-  local git_icons_tbl = git.get_icons(node)
-
-  if git_icons_tbl and #git_icons_tbl > 0 then
-    if self.is_git_sign then
-      local git_info = git_icons_tbl[1]
-      table.insert(self.signs, { sign = git_info.hl, lnum = self.index + 1 })
-      git_icons_tbl = {}
-    else
-      -- sort icons so it looks slightly better
-      table.sort(git_icons_tbl, function(a, b)
-        return a.ord < b.ord
-      end)
-    end
+  local line = { padding }
+  add_to_end(line, { icon })
+  if git_icons and self.git_placement == "before" then
+    add_to_end(line, git_icons)
   end
+  if modified_icon and self.modified_placement == "before" then
+    add_to_end(line, { modified_icon })
+  end
+  add_to_end(line, { name })
+  if git_icons and self.git_placement == "after" then
+    add_to_end(line, git_icons)
+  end
+  if modified_icon and self.modified_placement == "after" then
+    add_to_end(line, { modified_icon })
+  end
+
+  return line
+end
+
+function Builder:_build_line(node, idx, num_children, unloaded_bufnr)
+  -- various components
+  local padding = pad.get_padding(self.depth, idx, num_children, node, self.markers)
+  local git_icons = self:_get_git_icons(node)
+  local modified_icon = self:_get_modified_icon(node)
 
+  -- main components
   local is_folder = node.nodes ~= nil
   local is_symlink = node.link_to ~= nil
-
+  local icon, name
   if is_folder then
-    self:_build_folder(node, padding, git_highlight, git_icons_tbl)
+    icon, name = self:_build_folder(node)
   elseif is_symlink then
-    self:_build_symlink(node, padding, git_highlight, git_icons_tbl)
+    icon, name = self:_build_symlink(node)
   else
-    self:_build_file(node, padding, git_highlight, git_icons_tbl, unloaded_bufnr)
+    icon, name = self:_build_file(node)
+  end
+
+  -- highlight override
+  local icon_hl, name_hl = self:_get_highlight_override(node, unloaded_bufnr)
+  if icon_hl then
+    icon.hl = icon_hl
   end
+  if name_hl then
+    name.hl = name_hl
+  end
+
+  local line = self:_format_line(padding, icon, name, git_icons, modified_icon)
+  self:_insert_line(self:_unwrap_highlighted_strings(line))
+
   self.index = self.index + 1
 
   if node.open then
diff --git a/lua/nvim-tree/renderer/components/git.lua b/lua/nvim-tree/renderer/components/git.lua
index 1c51eb1d3ea..31dfa049cef 100644
--- a/lua/nvim-tree/renderer/components/git.lua
+++ b/lua/nvim-tree/renderer/components/git.lua
@@ -1,19 +1,17 @@
 local notify = require "nvim-tree.notify"
 local explorer_node = require "nvim-tree.explorer.node"
 
-local M = {
-  SIGN_GROUP = "NvimTreeGitSigns",
-}
+local M = {}
 
 local function build_icons_table(i)
   local icons = {
-    staged = { icon = i.staged, hl = "NvimTreeGitStaged", ord = 1 },
-    unstaged = { icon = i.unstaged, hl = "NvimTreeGitDirty", ord = 2 },
-    renamed = { icon = i.renamed, hl = "NvimTreeGitRenamed", ord = 3 },
-    deleted = { icon = i.deleted, hl = "NvimTreeGitDeleted", ord = 4 },
-    unmerged = { icon = i.unmerged, hl = "NvimTreeGitMerge", ord = 5 },
-    untracked = { icon = i.untracked, hl = "NvimTreeGitNew", ord = 6 },
-    ignored = { icon = i.ignored, hl = "NvimTreeGitIgnored", ord = 7 },
+    staged = { str = i.staged, hl = "NvimTreeGitStaged", ord = 1 },
+    unstaged = { str = i.unstaged, hl = "NvimTreeGitDirty", ord = 2 },
+    renamed = { str = i.renamed, hl = "NvimTreeGitRenamed", ord = 3 },
+    deleted = { str = i.deleted, hl = "NvimTreeGitDeleted", ord = 4 },
+    unmerged = { str = i.unmerged, hl = "NvimTreeGitMerge", ord = 5 },
+    untracked = { str = i.untracked, hl = "NvimTreeGitNew", ord = 6 },
+    ignored = { str = i.ignored, hl = "NvimTreeGitIgnored", ord = 7 },
   }
   return {
     ["M "] = { icons.staged },
@@ -59,6 +57,8 @@ local function warn_status(git_status)
   )
 end
 
+---@param node table
+---@return HighlightedString[]|nil
 local function get_icons_(node)
   local git_status = explorer_node.get_git_status(node)
   if git_status == nil then
@@ -85,6 +85,11 @@ local function get_icons_(node)
     end
   end
 
+  -- sort icons so it looks slightly better
+  table.sort(iconss, function(a, b)
+    return a.ord < b.ord
+  end)
+
   return iconss
 end
 
@@ -145,7 +150,9 @@ function M.setup(opts)
 
   M.git_icons = build_icons_table(opts.renderer.icons.glyphs.git)
 
-  M.setup_signs(opts.renderer.icons.glyphs.git)
+  if opts.renderer.icons.git_placement == "signcolumn" then
+    M.setup_signs(opts.renderer.icons.glyphs.git)
+  end
 
   if opts.renderer.icons.show.git then
     M.get_icons = get_icons_
diff --git a/lua/nvim-tree/renderer/components/icons.lua b/lua/nvim-tree/renderer/components/icons.lua
index 3c5d27b82e1..5cf1940815a 100644
--- a/lua/nvim-tree/renderer/components/icons.lua
+++ b/lua/nvim-tree/renderer/components/icons.lua
@@ -1,7 +1,7 @@
 local M = { i = {} }
 
 local function config_symlinks()
-  M.i.symlink = #M.config.glyphs.symlink > 0 and M.config.glyphs.symlink .. M.config.padding or ""
+  M.i.symlink = #M.config.glyphs.symlink > 0 and M.config.glyphs.symlink or ""
   M.i.symlink_arrow = M.config.symlink_arrow
 end
 
@@ -28,14 +28,14 @@ local function get_folder_icon(open, is_symlink, has_children)
       n = M.config.glyphs.folder.empty
     end
   end
-  return n .. M.config.padding
+  return n
 end
 
 local function get_file_icon_default()
   local hl_group = "NvimTreeFileIcon"
   local icon = M.config.glyphs.default
   if #icon > 0 then
-    return icon .. M.config.padding, hl_group
+    return icon, hl_group
   else
     return ""
   end
@@ -47,7 +47,7 @@ local function get_file_icon_webdev(fname, extension)
     hl_group = "NvimTreeFileIcon"
   end
   if icon and hl_group ~= "DevIconDefault" then
-    return icon .. M.config.padding, hl_group
+    return icon, hl_group
   elseif string.match(extension, "%.(.*)") then
     -- If there are more extensions to the file, try to grab the icon for them recursively
     return get_file_icon_webdev(fname, string.match(extension, "%.(.*)"))
diff --git a/lua/nvim-tree/renderer/components/modified.lua b/lua/nvim-tree/renderer/components/modified.lua
new file mode 100644
index 00000000000..1ae9870b405
--- /dev/null
+++ b/lua/nvim-tree/renderer/components/modified.lua
@@ -0,0 +1,41 @@
+local modified = require "nvim-tree.modified"
+
+local M = {}
+
+local HIGHLIGHT = "NvimTreeModifiedFile"
+
+---return modified icon if node is modified, otherwise return empty string
+---@param node table
+---@return HighlightedString|nil modified icon
+function M.get_icon(node)
+  if not modified.is_modified(node) or not M.show_icon then
+    return nil
+  end
+
+  return { str = M.icon, hl = HIGHLIGHT }
+end
+
+function M.setup_signs()
+  vim.fn.sign_define(HIGHLIGHT, { text = M.icon, texthl = HIGHLIGHT })
+end
+
+---@param node table
+---@return string|nil
+function M.get_highlight(node)
+  if not modified.is_modified(node) then
+    return nil
+  end
+
+  return HIGHLIGHT
+end
+
+function M.setup(opts)
+  M.icon = opts.renderer.icons.glyphs.modified
+  M.show_icon = opts.renderer.icons.show.modified
+
+  if opts.renderer.icons.modified_placement == "signcolumn" then
+    M.setup_signs()
+  end
+end
+
+return M
diff --git a/lua/nvim-tree/renderer/components/padding.lua b/lua/nvim-tree/renderer/components/padding.lua
index e24bb84302c..3ab7a9880e2 100644
--- a/lua/nvim-tree/renderer/components/padding.lua
+++ b/lua/nvim-tree/renderer/components/padding.lua
@@ -68,6 +68,12 @@ local function get_padding_arrows(node, indent)
   end
 end
 
+---@param depth integer
+---@param idx integer
+---@param nodes_number integer
+---@param node table
+---@param markers table
+---@return HighlightedString
 function M.get_padding(depth, idx, nodes_number, node, markers)
   local padding = ""
 
@@ -86,7 +92,7 @@ function M.get_padding(depth, idx, nodes_number, node, markers)
     padding = padding .. get_padding_arrows(node, not show_markers)
   end
 
-  return padding
+  return { str = padding, hl = "NvimTreeIndentMarker" }
 end
 
 function M.setup(opts)
diff --git a/lua/nvim-tree/renderer/init.lua b/lua/nvim-tree/renderer/init.lua
index 132c5326ad7..e0520b7aeb0 100644
--- a/lua/nvim-tree/renderer/init.lua
+++ b/lua/nvim-tree/renderer/init.lua
@@ -2,6 +2,7 @@ local core = require "nvim-tree.core"
 local diagnostics = require "nvim-tree.diagnostics"
 local log = require "nvim-tree.log"
 local view = require "nvim-tree.view"
+local modified = require "nvim-tree.renderer.components.modified"
 
 local _padding = require "nvim-tree.renderer.components.padding"
 local icon_component = require "nvim-tree.renderer.components.icons"
@@ -16,6 +17,8 @@ local M = {
   last_highlights = {},
 }
 
+local SIGN_GROUP = "NvimTreeRendererSigns"
+
 local namespace_id = vim.api.nvim_create_namespace "NvimTreeHighlights"
 
 local function _draw(bufnr, lines, hl, signs)
@@ -23,9 +26,9 @@ local function _draw(bufnr, lines, hl, signs)
   vim.api.nvim_buf_set_lines(bufnr, 0, -1, false, lines)
   M.render_hl(bufnr, hl)
   vim.api.nvim_buf_set_option(bufnr, "modifiable", false)
-  vim.fn.sign_unplace(git.SIGN_GROUP)
+  vim.fn.sign_unplace(SIGN_GROUP)
   for _, sign in pairs(signs) do
-    vim.fn.sign_place(0, git.SIGN_GROUP, sign.sign, bufnr, { lnum = sign.lnum, priority = 1 })
+    vim.fn.sign_place(0, SIGN_GROUP, sign.sign, bufnr, { lnum = sign.lnum, priority = sign.priority })
   end
 end
 
@@ -68,8 +71,10 @@ function M.draw(unloaded_bufnr)
       :configure_special_files(M.config.special_files)
       :configure_picture_map(picture_map)
       :configure_opened_file_highlighting(M.config.highlight_opened_files)
-      :configure_git_icons_padding(M.config.icons.padding)
+      :configure_modified_highlighting(M.config.highlight_modified)
+      :configure_icon_padding(M.config.icons.padding)
       :configure_git_icons_placement(M.config.icons.git_placement)
+      :configure_modified_placement(M.config.icons.modified_placement)
       :configure_symlink_destination(M.config.symlink_destination)
       :configure_filter(live_filter.filter, live_filter.prefix)
       :build_header(view.is_root_folder_visible(core.get_cwd()))
@@ -100,10 +105,12 @@ end
 
 function M.setup(opts)
   M.config = opts.renderer
+  M.config.modified = opts.modified
 
   _padding.setup(opts)
   full_name.setup(opts)
   git.setup(opts)
+  modified.setup(opts)
   icon_component.setup(opts)
 end