diff --git a/domain-model.md b/domain-model.md
new file mode 100644
index 00000000..c2fe76cf
--- /dev/null
+++ b/domain-model.md
@@ -0,0 +1,56 @@
+# Domain model
+
+## User stories
+### User story 1
+```
+As a member of the public,
+So I can order a bagel before work,
+I'd like to add a specific type of bagel to my basket.
+```
+
+### User story 2
+```
+As a member of the public,
+So I can change my order,
+I'd like to remove a bagel from my basket.
+```
+
+### User story 3
+```
+As a member of the public,
+So that I can not overfill my small bagel basket
+I'd like to know when my basket is full when I try adding an item beyond my basket capacity.
+```
+
+### User story 4
+```
+As a Bob's Bagels manager,
+So that I can expand my business,
+I’d like to change the capacity of baskets.
+```
+
+### User story 5
+```
+As a member of the public
+So that I can maintain my sanity
+I'd like to know if I try to remove an item that doesn't exist in my basket.
+```
+
+
+## Shopping Basket Class
+
+### Variables 
+| Variables                   | Description                                                          |
+|-----------------------------|----------------------------------------------------------------------|
+| `List<String bagle> basket` | Container containing the bagels the customer has added to basket.    | 
+| `Integer basketSize`        | Size of the basket.                                                  |
+
+### Methods
+| Methods                              | Scenario                                                         | Outputs                                   |
+|--------------------------------------|------------------------------------------------------------------|-------------------------------------------|
+| `String addBagel(String bagle)`      | Customer successfully adds bagel to basket                       | `Bagel added successfully.`               |
+|                                      | Customer fails to add bagel to basket as basket is full          | `Basket is full.`                         |
+| `String removeBagel(String bagle)`   | Customer successfully removes bagel from basket                  | `Bagel successfully removed from basket.` |
+|                                      | Customer tries to remove bagel not in the basket from the basket | `This bagel is not in your basket.`       |
+| `Void changeBasketSize(int newSize)` | Manager changes the size of the basket                           | -                                         |
+
diff --git a/src/main/java/com/booleanuk/core/Basket.java b/src/main/java/com/booleanuk/core/Basket.java
index df7a20aa..2590f421 100644
--- a/src/main/java/com/booleanuk/core/Basket.java
+++ b/src/main/java/com/booleanuk/core/Basket.java
@@ -1,5 +1,33 @@
 package com.booleanuk.core;
 
+import java.util.ArrayList;
+
 public class Basket {
+    ArrayList<String> basket = new ArrayList<>();
+    Integer basketSize = 1;
+
+    public String addBagel(String bagel) {
+
+        // If the size of the basket is equal to or larger
+        if (basket.size() == this.basketSize)
+            return "Basket is full.";
+
+        basket.add(bagel);
+        return "Bagel added successfully.";
+    }
 
+    public String removeBagel(String bagel) {
+
+        if (!basket.contains(bagel)) {
+            return "This bagel is not in your basket.";
+        }
+
+        basket.remove(bagel);
+        return "Bagel successfully removed from basket.";
+    }
+
+    public void changeBasketSize(Integer newBasketSize) {
+        this.basketSize = newBasketSize;
+    }
 }
+
diff --git a/src/test/java/com/booleanuk/core/BasketTest.java b/src/test/java/com/booleanuk/core/BasketTest.java
index e35771b3..78fc0c09 100644
--- a/src/test/java/com/booleanuk/core/BasketTest.java
+++ b/src/test/java/com/booleanuk/core/BasketTest.java
@@ -4,5 +4,62 @@
 import org.junit.jupiter.api.Test;
 
 class BasketTest {
+    @Test
+    public void addBagelTest(){
+        Basket b = new Basket();
+        b.basketSize = 1;
 
+        // Expected return strings
+        String expectedSuccess = "Bagel added successfully.";
+        String expectedFail = "Basket is full.";
+
+        // Resulting strings from addBagel execution
+        String testSuccess = b.addBagel("Cream");
+        String testFail = b.addBagel("Chocolate");
+
+        Assertions.assertEquals(expectedSuccess, testSuccess);
+        Assertions.assertEquals(expectedFail, testFail);
+    }
+
+    @Test
+    public void removeBagelTest(){
+        Basket b = new Basket();
+        b.addBagel("Chocolate");
+
+        // Expected return strings
+        String expectedSuccess = "Bagel successfully removed from basket.";
+        String expectedFail = "This bagel is not in your basket.";
+
+        // Resulting strings from removeBagel execution
+        String testSuccess = b.removeBagel("Chocolate");
+        String testFail = b.removeBagel("Cream");
+
+        Assertions.assertEquals(expectedSuccess, testSuccess);
+        Assertions.assertEquals(expectedFail, testFail);
+    }
+
+    @Test
+    public void changeBasketSizeTest(){
+        Basket b = new Basket();
+        b.basketSize = 1;
+
+        String basketIsNotFull = "Bagel added successfully.";
+        String basketIsFull = "Basket is full.";
+
+        // Triggers basket is full error
+        b.addBagel("Cheese");
+        String failString = b.addBagel("Chocolate");
+
+        // Verifies basket is full error
+        Assertions.assertEquals(basketIsFull, failString);
+
+        // Changes size of basketSize and verifies equality
+        int newBasketSize = 2;
+        b.changeBasketSize(newBasketSize);
+        Assertions.assertEquals(newBasketSize, b.basketSize);
+
+        // Repeat first test to demonstrate that the basket has increased
+        String successString = b.addBagel("Chocolate");
+        Assertions.assertEquals(basketIsNotFull, successString);
+    }
 }