A method and system of managing a user's friends in a virtual environment are presented. The method includes interacting a virtual character with a plurality of additional virtual characters in response to commands input from the user entered via the user computer. A subset of the additional users, the additional virtual characters, or a combination of the additional users and the additional virtual characters are designated as friends of the user in the virtual environment, and the friends are added to a list of friends associated with the user. The friends on the list displayed to the user can be ranked in an order based at least in part on the interacting of the virtual character controlled by the user with the plurality of additional virtual characters in the virtual environment.