Create a Featured Attribute in Magento Backend first Create an attribute featured with yes/no property from Catalog Input Type for Store Owner drop down, then include it in attribute set and assign one product as Featured “yes” from Catalog->Manage Products. Create a Custom Module Create custom module and block file “app/code/local/FeaturedProduct/Catalog/Block/Product/Featured.php” with following code in it.
class FeaturedProduct_Catalog_Block_Product_Featured extends Mage_Catalog_Block_Product_List
{
    protected $_productCollection;
    public function fetchProducts()
    {
       $this->productCollection =Mage::getModel('catalog/product')->getCollection()
        ->addAttributeToSelect('*')
        ->addFieldToFilter('featured_products', array('eq' => '1'));
      return $this->productCollection;
    }
}
Create a configuration file in app/code/local/FeaturedProduct/Catalog/etc/config.xml You have to specify a configuration file to tell magento about which XML is going to declare the block need to display featured products in homepage and which is located in app/code/local/FeaturedProduct/Catalog/etc/config.xml as:



        
            1.0.0                        
        


        
            
                FeaturedProduct_Catalog_Block
            
        


        
            
                
                    featuredproduct.xml
                
            
        


Create featuredproducts.xml in location app/design/frontend/mytheme/default/layout/featuredproduct.xml as follows:


    
        
            
                
                    4
                
            
        
    

Finally , create a view file to display featured products in a Grid layout as : Create view file “app/design/frontend/mytheme/default/template/catalog/product/featured.phtml” with following code in it :
fetchProducts();
    $_helper = $this->helper('catalog/output');
?>
count()): ?>

__('There are no products in the featured product list!!') ?>

count() ?> getColumnCount(); ?>