diff --git a/osu.Game/Overlays/Chat/DrawableChannel.cs b/osu.Game/Overlays/Chat/DrawableChannel.cs
index f831266b1b..8c5a2e68ef 100644
--- a/osu.Game/Overlays/Chat/DrawableChannel.cs
+++ b/osu.Game/Overlays/Chat/DrawableChannel.cs
@@ -12,6 +12,14 @@ using osu.Framework.Graphics.Containers;
 using osu.Game.Graphics.Containers;
 using osu.Game.Graphics.Cursor;
 using osu.Game.Online.Chat;
+using osu.Game.Overlays.Notifications;
+using osu.Game.Graphics;
+using osu.Framework.Graphics.Sprites;
+using osu.Framework.Graphics.Colour;
+using osu.Game.Online.API;
+using osu.Game.Configuration;
+using osu.Framework.Bindables;
+using osu.Game.Users;
 
 namespace osu.Game.Overlays.Chat
 {
@@ -20,6 +28,22 @@ namespace osu.Game.Overlays.Chat
         public readonly Channel Channel;
         protected ChatLineContainer ChatLineFlow;
         private OsuScrollContainer scroll;
+        public ColourInfo HighlightColour { get; set; }
+
+        [Resolved(CanBeNull = true)]
+        private NotificationOverlay notificationOverlay { get; set; }
+
+        [Resolved(CanBeNull = true)]
+        private ChatOverlay chatOverlay { get; set; }
+
+        [Resolved(CanBeNull = true)]
+        private ChannelManager channelManager { get; set; }
+
+        private Bindable<bool> notifyOnMention;
+        private Bindable<bool> notifyOnChat;
+        private Bindable<string> highlightWords;
+        private Bindable<string> ignoreList;
+        private Bindable<User> localUser;
 
         public DrawableChannel(Channel channel)
         {
@@ -28,8 +52,15 @@ namespace osu.Game.Overlays.Chat
         }
 
         [BackgroundDependencyLoader]
-        private void load()
+        private void load(OsuColour colours, OsuConfigManager config, IAPIProvider api)
         {
+            notifyOnMention = config.GetBindable<bool>(OsuSetting.ChatHighlightName);
+            notifyOnChat = config.GetBindable<bool>(OsuSetting.ChatMessageNotification);
+            highlightWords = config.GetBindable<string>(OsuSetting.HighlightWords);
+            ignoreList = config.GetBindable<string>(OsuSetting.IgnoreList);
+            localUser = api.LocalUser;
+            HighlightColour = colours.Blue;
+
             Child = new OsuContextMenuContainer
             {
                 RelativeSizeAxes = Axes.Both,
@@ -77,10 +108,14 @@ namespace osu.Game.Overlays.Chat
         private void newMessagesArrived(IEnumerable<Message> newMessages)
         {
             // Add up to last Channel.MAX_HISTORY messages
-            var displayMessages = newMessages.Skip(Math.Max(0, newMessages.Count() - Channel.MaxHistory));
+            var ignoredWords = getWords(ignoreList.Value);
+            var displayMessages = newMessages.Where(m => hasCaseInsensitive(getWords(m.Content), ignoredWords) == null);
+            displayMessages = displayMessages.Skip(Math.Max(0, newMessages.Count() - Channel.MaxHistory));
 
             ChatLineFlow.AddRange(displayMessages.Select(CreateChatLine));
 
+            checkForMentions(displayMessages);
+
             if (scroll.IsScrolledToEnd(10) || !ChatLineFlow.Children.Any() || newMessages.Any(m => m is LocalMessage))
                 scrollToEnd();
 
@@ -96,6 +131,63 @@ namespace osu.Game.Overlays.Chat
             }
         }
 
+        private void checkForMentions(IEnumerable<Message> messages)
+        {
+            // only send notifications when chat overlay is **closed**
+            if (chatOverlay?.IsPresent == true && channelManager?.CurrentChannel.Value == Channel)
+                return;
+
+            foreach (var message in messages)
+            {
+                var words = getWords(message.Content);
+                var username = localUser.Value.Username;
+
+                if (message.Sender.Username == username)
+                    continue;
+
+                if (notifyOnChat.Value && Channel.Type == ChannelType.PM)
+                {
+                    var notification = new MentionNotification(Channel, message.Sender.Username, () =>
+                    {
+                        channelManager.CurrentChannel.Value = Channel;
+                        HighlightMessage(message);
+                    }, true);
+
+                    notificationOverlay?.Post(notification);
+                    continue;
+                }
+
+                if (notifyOnMention.Value && anyCaseInsensitive(words, username))
+                {
+                    var notification = new MentionNotification(Channel, message.Sender.Username, () =>
+                    {
+                        channelManager.CurrentChannel.Value = Channel;
+                        HighlightMessage(message);
+                    }, false);
+
+                    notificationOverlay?.Post(notification);
+                    continue;
+                }
+
+                if (!string.IsNullOrWhiteSpace(highlightWords.Value))
+                {
+                    var matchedWord = hasCaseInsensitive(words, getWords(highlightWords.Value));
+
+                    if (matchedWord != null)
+                    {
+                        var notification = new MentionNotification(Channel, message.Sender.Username, matchedWord, () =>
+                        {
+                            channelManager.CurrentChannel.Value = Channel;
+                            HighlightMessage(message);
+                        });
+
+                        notificationOverlay?.Post(notification);
+                        continue;
+                    }
+                }
+            }
+        }
+
         private void pendingMessageResolved(Message existing, Message updated)
         {
             var found = ChatLineFlow.Children.LastOrDefault(c => c.Message == existing);
@@ -110,13 +202,31 @@ namespace osu.Game.Overlays.Chat
             }
         }
 
-        private void messageRemoved(Message removed)
+        public void HighlightMessage(Message message)
         {
-            ChatLineFlow.Children.FirstOrDefault(c => c.Message == removed)?.FadeColour(Color4.Red, 400).FadeOut(600).Expire();
+            var chatLine = findChatLine(message);
+            scroll.ScrollTo(chatLine);
+            chatLine.FlashColour(HighlightColour, 5000, Easing.InExpo);
         }
 
+        private void messageRemoved(Message removed)
+        {
+            findChatLine(removed)?.FadeColour(Color4.Red, 400).FadeOut(600).Expire();
+        }
+
+        private ChatLine findChatLine(Message message) => ChatLineFlow.Children.FirstOrDefault(c => c.Message == message);
+
         private void scrollToEnd() => ScheduleAfterChildren(() => scroll.ScrollToEnd());
 
+        private string[] getWords(string input) => input.Split(new[] { ' ' }, StringSplitOptions.RemoveEmptyEntries);
+
+        /// <summary>
+        /// Finds the first matching string/word in both <paramref name="x"/> and <paramref name="y"/> (case-insensitive)
+        /// </summary>
+        private string hasCaseInsensitive(IEnumerable<string> x, IEnumerable<string> y) => x.FirstOrDefault(x2 => anyCaseInsensitive(y, x2));
+
+        private bool anyCaseInsensitive(IEnumerable<string> x, string y) => x.Any(x2 => x2.Equals(y, StringComparison.InvariantCultureIgnoreCase));
+
         protected class ChatLineContainer : FillFlowContainer<ChatLine>
         {
             protected override int Compare(Drawable x, Drawable y)
@@ -127,5 +237,54 @@ namespace osu.Game.Overlays.Chat
                 return xC.Message.CompareTo(yC.Message);
             }
         }
+
+        private class MentionNotification : SimpleNotification
+        {
+            public MentionNotification(Channel channel, string username, Action onClick, bool isPm) : this(channel, onClick)
+            {
+                if (isPm)
+                {
+                    Icon = FontAwesome.Solid.Envelope;
+                    Text = $"You received a private message from '{username}'. Click to read it!";
+                }
+                else
+                {
+                    Icon = FontAwesome.Solid.At;
+                    Text = $"Your name was mentioned in chat by '{username}'. Click to find out why!";
+                }
+            }
+
+            public MentionNotification(Channel channel, string highlighter, string word, Action onClick) : this(channel, onClick)
+            {
+                Icon = FontAwesome.Solid.Highlighter;
+                Text = $"'{word}' was mentioned in chat by '{highlighter}'. Click to find out why!";
+            }
+
+            private MentionNotification(Channel channel, Action onClick)
+            {
+                Channel = channel;
+                this.onClick = onClick;
+            }
+
+            private readonly Action onClick;
+
+            public Channel Channel { get; }
+
+            public override bool IsImportant => false;
+
+            [BackgroundDependencyLoader]
+            private void load(OsuColour colours, NotificationOverlay notificationOverlay, ChatOverlay chatOverlay)
+            {
+                IconBackgound.Colour = colours.PurpleDark;
+                Activated = delegate
+                {
+                    notificationOverlay.Hide();
+                    chatOverlay.Show();
+                    onClick?.Invoke();
+
+                    return true;
+                };
+            }
+        }
     }
 }