diff --git a/bookmarks/services/favicon_loader.py b/bookmarks/services/favicon_loader.py
index ac77b1c..6534880 100644
--- a/bookmarks/services/favicon_loader.py
+++ b/bookmarks/services/favicon_loader.py
@@ -1,6 +1,7 @@
+import logging
+import mimetypes
 import os.path
 import re
-import shutil
 import time
 from pathlib import Path
 from urllib.parse import urlparse
@@ -10,25 +11,46 @@ from django.conf import settings
 
 max_file_age = 60 * 60 * 24  # 1 day
 
+logger = logging.getLogger(__name__)
+
+# register mime type for .ico files, which is not included in the default
+# mimetypes of the Docker image
+mimetypes.add_type('image/x-icon', '.ico')
+
 
 def _ensure_favicon_folder():
     Path(settings.LD_FAVICON_FOLDER).mkdir(parents=True, exist_ok=True)
 
 
 def _url_to_filename(url: str) -> str:
-    name = re.sub(r'\W+', '_', url)
-    return f'{name}.png'
+    return re.sub(r'\W+', '_', url)
 
 
-def _get_base_url(url: str) -> str:
+def _get_url_parameters(url: str) -> dict:
     parsed_uri = urlparse(url)
-    return f'{parsed_uri.scheme}://{parsed_uri.hostname}'
+    return {
+        # https://example.com/foo?bar -> https://example.com
+        'url': f'{parsed_uri.scheme}://{parsed_uri.hostname}',
+        # https://example.com/foo?bar -> example.com
+        'domain': parsed_uri.hostname,
+    }
 
 
 def _get_favicon_path(favicon_file: str) -> Path:
     return Path(os.path.join(settings.LD_FAVICON_FOLDER, favicon_file))
 
 
+def _check_existing_favicon(favicon_name: str):
+    # return existing file if a file with the same name, ignoring extension,
+    # exists and is not stale
+    for filename in os.listdir(settings.LD_FAVICON_FOLDER):
+        file_base_name, _ = os.path.splitext(filename)
+        if file_base_name == favicon_name:
+            favicon_path = _get_favicon_path(filename)
+            return filename if not _is_stale(favicon_path) else None
+    return None
+
+
 def _is_stale(path: Path) -> bool:
     stat = path.stat()
     file_age = time.time() - stat.st_mtime
@@ -36,22 +58,26 @@ def _is_stale(path: Path) -> bool:
 
 
 def load_favicon(url: str) -> str:
-    # Get base URL so that we can reuse favicons for multiple bookmarks with the same host
-    base_url = _get_base_url(url)
-    favicon_name = _url_to_filename(base_url)
-    favicon_path = _get_favicon_path(favicon_name)
+    url_parameters = _get_url_parameters(url)
 
-    # Load icon if it doesn't exist yet or has become stale
-    if not favicon_path.exists() or _is_stale(favicon_path):
-        # Create favicon folder if not exists
-        _ensure_favicon_folder()
+    # Create favicon folder if not exists
+    _ensure_favicon_folder()
+    # Use scheme+hostname as favicon filename to reuse icon for all pages on the same domain
+    favicon_name = _url_to_filename(url_parameters['url'])
+    favicon_file = _check_existing_favicon(favicon_name)
+
+    if not favicon_file:
         # Load favicon from provider, save to file
-        favicon_url = settings.LD_FAVICON_PROVIDER.format(url=base_url)
-        response = requests.get(favicon_url, stream=True)
+        favicon_url = settings.LD_FAVICON_PROVIDER.format(**url_parameters)
+        logger.debug(f'Loading favicon from: {favicon_url}')
+        with requests.get(favicon_url, stream=True) as response:
+            content_type = response.headers['Content-Type']
+            file_extension = mimetypes.guess_extension(content_type)
+            favicon_file = f'{favicon_name}{file_extension}'
+            favicon_path = _get_favicon_path(favicon_file)
+            with open(favicon_path, 'wb') as file:
+                for chunk in response.iter_content(chunk_size=8192):
+                    file.write(chunk)
+        logger.debug(f'Saved favicon as: {favicon_path}')
 
-        with open(favicon_path, 'wb') as file:
-            shutil.copyfileobj(response.raw, file)
-
-        del response
-
-    return favicon_name
+    return favicon_file
diff --git a/bookmarks/services/tasks.py b/bookmarks/services/tasks.py
index 06b8566..3a57bf0 100644
--- a/bookmarks/services/tasks.py
+++ b/bookmarks/services/tasks.py
@@ -130,12 +130,12 @@ def _load_favicon_task(bookmark_id: int):
 
     logger.info(f'Load favicon for bookmark. url={bookmark.url}')
 
-    new_favicon = favicon_loader.load_favicon(bookmark.url)
+    new_favicon_file = favicon_loader.load_favicon(bookmark.url)
 
-    if new_favicon != bookmark.favicon_file:
-        bookmark.favicon_file = new_favicon
+    if new_favicon_file != bookmark.favicon_file:
+        bookmark.favicon_file = new_favicon_file
         bookmark.save(update_fields=['favicon_file'])
-        logger.info(f'Successfully updated favicon for bookmark. url={bookmark.url} icon={new_favicon}')
+        logger.info(f'Successfully updated favicon for bookmark. url={bookmark.url} icon={new_favicon_file}')
 
 
 def schedule_bookmarks_without_favicons(user: User):
diff --git a/bookmarks/templates/settings/general.html b/bookmarks/templates/settings/general.html
index e7f517e..7070b3b 100644
--- a/bookmarks/templates/settings/general.html
+++ b/bookmarks/templates/settings/general.html
@@ -74,8 +74,8 @@
             Automatically loads favicons for bookmarked websites and displays them next to each bookmark.
             By default, this feature uses a <b>Google service</b> to download favicons.
             If you don't want to use this service, check the <a
-              href="https://github.com/sissbruecker/linkding/blob/master/docs/Options.md" target="_blank">options
-            documentation</a> on how to configure a custom favicon provider.
+              href="https://github.com/sissbruecker/linkding/blob/master/docs/Options.md#ld_favicon_provider"
+              target="_blank">options documentation</a> on how to configure a custom favicon provider.
             Icons are downloaded in the background, and it may take a while for them to show up.
           </div>
           {% if request.user_profile.enable_favicons and enable_refresh_favicons %}
diff --git a/bookmarks/tests/test_favicon_loader.py b/bookmarks/tests/test_favicon_loader.py
index cdffff9..6dec983 100644
--- a/bookmarks/tests/test_favicon_loader.py
+++ b/bookmarks/tests/test_favicon_loader.py
@@ -2,25 +2,40 @@ import io
 import os.path
 import time
 from pathlib import Path
-from unittest import mock
+from unittest import mock, skip
 
 from django.conf import settings
-from django.test import TestCase
+from django.test import TestCase, override_settings
 
 from bookmarks.services import favicon_loader
 
 mock_icon_data = b'mock_icon'
 
 
+class MockStreamingResponse:
+    def __init__(self, data=mock_icon_data, content_type='image/png'):
+        self.chunks = [data]
+        self.headers = {'Content-Type': content_type}
+
+    def iter_content(self, **kwargs):
+        return self.chunks
+
+    def __enter__(self):
+        return self
+
+    def __exit__(self, exc_type, exc_value, traceback):
+        pass
+
+
 class FaviconLoaderTestCase(TestCase):
     def setUp(self) -> None:
         self.ensure_favicon_folder()
         self.clear_favicon_folder()
 
-    def create_mock_response(self, icon_data=mock_icon_data):
+    def create_mock_response(self, icon_data=mock_icon_data, content_type='image/png'):
         mock_response = mock.Mock()
         mock_response.raw = io.BytesIO(icon_data)
-        return mock_response
+        return MockStreamingResponse(icon_data, content_type)
 
     def ensure_favicon_folder(self):
         Path(settings.LD_FAVICON_FOLDER).mkdir(parents=True, exist_ok=True)
@@ -93,12 +108,14 @@ class FaviconLoaderTestCase(TestCase):
         with mock.patch('requests.get') as mock_get:
             mock_get.return_value = self.create_mock_response()
 
-            favicon_loader.load_favicon('https://example.com')
+            favicon_file = favicon_loader.load_favicon('https://example.com')
             mock_get.assert_called()
+            self.assertEqual(favicon_file, 'https_example_com.png')
 
             mock_get.reset_mock()
-            favicon_loader.load_favicon('https://example.com')
+            updated_favicon_file = favicon_loader.load_favicon('https://example.com')
             mock_get.assert_not_called()
+            self.assertEqual(favicon_file, updated_favicon_file)
 
     def test_load_favicon_updates_stale_icon(self):
         with mock.patch('requests.get') as mock_get:
@@ -125,3 +142,35 @@ class FaviconLoaderTestCase(TestCase):
             favicon_loader.load_favicon('https://example.com')
             mock_get.assert_called()
             self.assertEqual(updated_mock_icon_data, self.get_icon_data('https_example_com.png'))
+
+    @override_settings(LD_FAVICON_PROVIDER='https://custom.icons.com/?url={url}')
+    def test_custom_provider_with_url_param(self):
+        with mock.patch('requests.get') as mock_get:
+            mock_get.return_value = self.create_mock_response()
+
+            favicon_loader.load_favicon('https://example.com/foo?bar=baz')
+            mock_get.assert_called_with('https://custom.icons.com/?url=https://example.com', stream=True)
+
+    @override_settings(LD_FAVICON_PROVIDER='https://custom.icons.com/?url={domain}')
+    def test_custom_provider_with_domain_param(self):
+        with mock.patch('requests.get') as mock_get:
+            mock_get.return_value = self.create_mock_response()
+
+            favicon_loader.load_favicon('https://example.com/foo?bar=baz')
+            mock_get.assert_called_with('https://custom.icons.com/?url=example.com', stream=True)
+
+    def test_guess_file_extension(self):
+        with mock.patch('requests.get') as mock_get:
+            mock_get.return_value = self.create_mock_response(content_type='image/png')
+            favicon_loader.load_favicon('https://example.com')
+
+            self.assertTrue(self.icon_exists('https_example_com.png'))
+
+        self.clear_favicon_folder()
+        self.ensure_favicon_folder()
+
+        with mock.patch('requests.get') as mock_get:
+            mock_get.return_value = self.create_mock_response(content_type='image/x-icon')
+            favicon_loader.load_favicon('https://example.com')
+
+            self.assertTrue(self.icon_exists('https_example_com.ico'))
diff --git a/docs/Options.md b/docs/Options.md
index 278b9e8..a018c41 100644
--- a/docs/Options.md
+++ b/docs/Options.md
@@ -164,12 +164,20 @@ A json string with additional options for the database. Passed directly to OPTIO
 
 ### `LD_FAVICON_PROVIDER`
 
-Values: `String` | Default =  `https://t1.gstatic.com/faviconV2?url={url}&client=SOCIAL&type=FAVICON`
+Values: `String` | Default =  `https://t1.gstatic.com/faviconV2?client=SOCIAL&type=FAVICON&fallback_opts=TYPE,SIZE,URL&url={url}&size=32`
 
 The favicon provider used for downloading icons if they are enabled in the user profile settings.
 The default provider is a Google service that automatically detects the correct favicon for a website, and provides icons in consistent image format (PNG) and in a consistent image size.
 
 This setting allows to configure a custom provider in form of a URL.
 When calling the provider with the URL of a website, it must return the image data for the favicon of that website.
-The configured favicon provider URL must contain a `{url}` placeholder that will be replaced with the URL of the website for which to download the favicon.
-See the default URL for an example.
+The configured favicon provider URL must contain a placeholder that will be replaced with the URL of the website for which to download the favicon.
+The available placeholders are:
+- `{url}` - Includes the scheme and hostname of the website, for example `https://example.com`
+- `{domain}` - Includes only the hostname of the website, for example `example.com`
+
+Which placeholder you need to use depends on the respective favicon provider, please check their documentation or usage examples.
+See the default URL for how to insert the placeholder to the favicon provider URL.
+
+Alternative favicon providers:
+- DuckDuckGo: `https://icons.duckduckgo.com/ip3/{domain}.ico`
diff --git a/siteroot/settings/base.py b/siteroot/settings/base.py
index d032b87..9dc94f5 100644
--- a/siteroot/settings/base.py
+++ b/siteroot/settings/base.py
@@ -231,7 +231,7 @@ DATABASES = {
 }
 
 # Favicons
-LD_DEFAULT_FAVICON_PROVIDER = 'https://t1.gstatic.com/faviconV2?url={url}&client=SOCIAL&type=FAVICON'
+LD_DEFAULT_FAVICON_PROVIDER = 'https://t1.gstatic.com/faviconV2?client=SOCIAL&type=FAVICON&fallback_opts=TYPE,SIZE,URL&url={url}&size=32'
 LD_FAVICON_PROVIDER = os.getenv('LD_FAVICON_PROVIDER', LD_DEFAULT_FAVICON_PROVIDER)
 LD_FAVICON_FOLDER = os.path.join(BASE_DIR, 'data', 'favicons')
 LD_ENABLE_REFRESH_FAVICONS = os.getenv('LD_ENABLE_REFRESH_FAVICONS', True) in (True, 'True', '1')