diff --git a/domain-model.md b/domain-model.md
new file mode 100644
index 00000000..030e4ce1
--- /dev/null
+++ b/domain-model.md
@@ -0,0 +1,16 @@
+
+| Classes  | Variables                                    | Methods                     | Scenario                                             | Outcomes                                                                  |
+|----------|----------------------------------------------|-----------------------------|------------------------------------------------------|---------------------------------------------------------------------------|
+| `Basket` | `private List<String> basket`                | `add(String bagel)`         | Bagel is in the bagel list and the basket is not ful | Add bagel to basket, increment the currentBasketCapacity and return true  |
+|          | `private List<String> bagels`                |                             | Bagel is not the list                                | Return false                                                              |
+|          |                                              |                             | Basket is ful                                        | Return false                                                              |
+|          |                                              |                             |                                                      |                                                                           |
+|          | `private int maxBasketCapacity`              | `isBasketFull()`            | Basket is ful                                        | Write message to console and return true                                  |
+|          | `private final int SIZE_TO_INCREMENT_BASKET` |                             | Basket is not ful                                    | Return false                                                              |
+|          |                                              |                             |                                                      |                                                                           |
+|          |                                              | `remove(String bagel)`      | Bagel is in the bagel list                           | Remove bagel from basket, decrement currentBasketCapacity and return true |
+|          |                                              |                             | Bagel is not in the basket                           | Write rejection message to console and return false                       |
+|          |                                              |                             |                                                      |                                                                           |
+|          |                                              |                             |                                                      |                                                                           |
+|          |                                              | `ìncrementBasketCapacity()` | Increment the basket capacity                        | Write confirmation message to console                                     |
+|          |                                              |                             |                                                      |                                                                           |
diff --git a/src/main/java/com/booleanuk/core/Basket.java b/src/main/java/com/booleanuk/core/Basket.java
index df7a20aa..d27c2d49 100644
--- a/src/main/java/com/booleanuk/core/Basket.java
+++ b/src/main/java/com/booleanuk/core/Basket.java
@@ -1,5 +1,53 @@
 package com.booleanuk.core;
 
+import java.util.ArrayList;
+import java.util.List;
+
 public class Basket {
 
+    private final List<String> bagels;
+    private final List<String> basket;
+
+    private int maxBasketCapacity = 5;
+    private static final int SIZE_TO_INCREMENT_BASKET = 5;
+
+    public Basket() {
+        this.bagels = List.of("bagel1", "bagel2", "bagel3", "bagel4");
+        this.basket = new ArrayList<>();
+    }
+
+    public boolean addItem(String item) {
+        if (item.isEmpty() || !bagels.contains(item)) {
+            return false;
+        }
+        basket.add(item);
+        return true;
+    }
+
+    public boolean removeItem(String item) {
+        if (item.isEmpty() || !basket.contains(item)) {
+            System.out.println("Bagel is not in the basket");
+            return false;
+        }
+        basket.remove(item);
+        return true;
+    }
+
+    public boolean isBasketFull() {
+        if (basket.size() == maxBasketCapacity) {
+            System.out.println("Basket is full");
+            return true;
+        }
+        return false;
+    }
+
+    public void incrementBasketCapacity() {
+        System.out.println("Basket capacity increased");
+        maxBasketCapacity += SIZE_TO_INCREMENT_BASKET;
+    }
+
+    public List<String> getBasket() {
+        return basket;
+    }
+
 }
diff --git a/src/test/java/com/booleanuk/core/BasketTest.java b/src/test/java/com/booleanuk/core/BasketTest.java
index e35771b3..e9db9978 100644
--- a/src/test/java/com/booleanuk/core/BasketTest.java
+++ b/src/test/java/com/booleanuk/core/BasketTest.java
@@ -5,4 +5,41 @@
 
 class BasketTest {
 
-}
+    private final Basket basket = new Basket();
+
+    private void addBagelsToBasket(String... bagels) {
+        for (String bagel : bagels) {
+            basket.addItem(bagel);
+        }
+    }
+
+    @Test
+    void testAddItem() {
+        Assertions.assertFalse(basket.addItem(""));
+        Assertions.assertTrue(basket.addItem("bagel1"));
+        Assertions.assertFalse(basket.addItem("bagelThatNotExists"));
+        Assertions.assertTrue(basket.addItem("bagel4"));
+        Assertions.assertTrue(basket.getBasket().contains("bagel4"));
+    }
+
+    @Test
+    void testRemoveItem() {
+        Assertions.assertFalse(basket.removeItem(""));
+        addBagelsToBasket("bagel1");
+        Assertions.assertTrue(basket.removeItem("bagel1"));
+        Assertions.assertFalse(basket.removeItem("bagel1"));
+        Assertions.assertFalse(basket.getBasket().contains("bagel1"));
+    }
+
+    @Test
+    void testIsBasketFull() {
+        Assertions.assertFalse(basket.isBasketFull());
+        addBagelsToBasket("bagel1", "bagel2", "bagel3", "bagel4", "bagel4");
+        Assertions.assertTrue(basket.isBasketFull());
+    }
+
+    @Test
+    void testIncrementBasketCapacity() {
+        basket.incrementBasketCapacity();
+    }
+}
\ No newline at end of file