
You can chat with a contact who is in your Yahoo! Contacts, who has a Yahoo! ID, and who is signed into Yahoo! Mail or Yahoo! Messenger. Your chat appears in a conversation tab in the Yahoo! Mail window. You’ll know a contact is available to chat if you see the person’s name in your online contacts list.

Notes:
You can chat with several contacts at the same time, each in its own tab. It’s not possible for several people to chat together in a single conversation.
You cannot use the chat feature inside Yahoo! Mail and be logged into Yahoo! Messenger at the same time.

A conversation tab opens where you can begin your chat.
Your messages and your contact’s replies appear in the conversation area.