One of the areas where Microsoft’s Internet Explorer is lagging behind is favorites management. Favorite is just another term for bookmarks in Internet Explorer. Even the latest beta of Internet Explorer 8 does not come with effective tools to manage the favorites in the web browser.
One of the main functions missing is a favorites search. Internet Explorer does not offer a way to search in the favorites which is one of the most fundamental functions for many users. Imagine having to scroll through thousands of favorites to find the one you are looking for.
Internet Explorer Favorites Search is a small plugin for Internet Explorer that adds the functionality to search Internet Explorer Favorites to the browser. It should automatically add a icon to the Internet Explorer toolbar which will open a sidebar when pressed.
If the icon does not appear after installation do the following: Right-click a toolbar in Internet Explorer and select the Customize > Add Or Remove Commands option from the menu.
Locate the entry Favorites Search and move it to the list of Current Toolbar buttons.

You only need to press the button and enter a search term to search the favorites in Internet Explorer from then on. The plugin will check both the urls as well as the names of the websites for matches.
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If you have a desktop search app, then you can use that for favorites search and avoid adding YAA (Yet Another App).
I use the last free version of X1. I created a link to my Favorites file which appears as a tab. I click that tab, enter what I am searching for and voila!
I also use the FF add-on Plain Old Favorites so that I have one store of favorites that work in both IE & FF.