diff --git a/backend/app/models/gift.py b/backend/app/models/gift.py
new file mode 100644
index 0000000..7cf2f59
--- /dev/null
+++ b/backend/app/models/gift.py
@@ -0,0 +1,121 @@
+from datetime import datetime, timezone
+from enum import Enum
+from sqlalchemy import (
+    Column, String, Boolean, ForeignKey, UniqueConstraint,
+    Integer, DateTime, Enum as SQLEnum, Table, Float
+)
+from sqlalchemy.orm import relationship
+from sqlalchemy.dialects.postgresql import UUID, JSONB
+from .base import Base, TimestampMixin, UUIDMixin
+
+
+class GiftStatus(str, Enum):
+    AVAILABLE = "available"
+    RESERVED = "reserved"
+    PURCHASED = "purchased"
+    RECEIVED = "received"
+    REMOVED = "removed"
+
+
+class GiftPriority(str, Enum):
+    LOW = "low"
+    MEDIUM = "medium"
+    HIGH = "high"
+    MUST_HAVE = "must_have"
+
+
+class GiftItem(Base, UUIDMixin, TimestampMixin):
+    __tablename__ = 'gift_items'
+
+    # Foreign Keys
+    event_id = Column(UUID(as_uuid=True), ForeignKey('events.id'), nullable=False)
+    added_by = Column(UUID(as_uuid=True), ForeignKey('users.id'), nullable=False)
+    category_id = Column(UUID(as_uuid=True), ForeignKey('gift_categories.id'))
+
+    # Gift Details
+    name = Column(String, nullable=False)
+    description = Column(String)
+    price = Column(Float)
+    currency = Column(String, default='USD')
+    quantity_requested = Column(Integer, default=1)
+    quantity_received = Column(Integer, default=0)
+
+    # Status and Priority
+    status = Column(SQLEnum(GiftStatus), nullable=False, default=GiftStatus.AVAILABLE)
+    priority = Column(SQLEnum(GiftPriority), default=GiftPriority.MEDIUM)
+
+    # Purchase Information
+    purchase_url = Column(String)
+    store_name = Column(String)
+    brand = Column(String)
+    model = Column(String)
+
+    # Display
+    image_url = Column(String)
+    display_order = Column(Integer)
+    is_visible = Column(Boolean, default=True)
+
+    # Additional Information
+    notes = Column(String)
+    custom_fields = Column(JSONB)
+
+    # Tracking
+    last_status_change = Column(DateTime(timezone=True))
+
+    # Relationships
+    event = relationship("Event", back_populates="gifts")
+    added_by_user = relationship("User", foreign_keys=[added_by])
+    category = relationship("GiftCategory", back_populates="gifts")
+    reserved_by = relationship("Guest",
+                               secondary="guest_gifts",
+                               back_populates="gifts")
+    purchase_history = relationship("GiftPurchase",
+                                    back_populates="gift_item",
+                                    order_by="desc(GiftPurchase.purchased_at)")
+
+    def __repr__(self):
+        return f"<GiftItem {self.name} ({self.status.value})>"
+
+    def update_status(self, new_status: GiftStatus):
+        """Update gift status and record the change time"""
+        self.status = new_status
+        self.last_status_change = datetime.now(timezone.utc)
+
+    @property
+    def remaining_quantity(self) -> int:
+        """Calculate remaining quantity needed"""
+        return max(0, self.quantity_requested - self.quantity_received)
+
+    @property
+    def is_fully_received(self) -> bool:
+        """Check if all requested quantities have been received"""
+        return self.quantity_received >= self.quantity_requested
+
+    @property
+    def formatted_price(self) -> str:
+        """Return formatted price with currency"""
+        if self.price is None:
+            return "Price not set"
+        return f"{self.price:.2f} {self.currency}"
+
+
+# Association table for tracking gift purchases
+class GiftPurchase(Base, UUIDMixin):
+    __tablename__ = 'gift_purchases'
+
+    gift_id = Column(UUID(as_uuid=True), ForeignKey('gift_items.id'), nullable=False)
+    guest_id = Column(UUID(as_uuid=True), ForeignKey('guests.id'), nullable=False)
+    quantity = Column(Integer, default=1, nullable=False)
+    purchased_at = Column(DateTime(timezone=True),
+                          default=lambda: datetime.now(timezone.utc),
+                          nullable=False)
+    purchase_price = Column(Float)
+    purchase_currency = Column(String)
+    notes = Column(String)
+
+    # Relationships
+    gift_item = relationship("GiftItem", back_populates="purchase_history")
+    guest = relationship("Guest")
+
+    def __repr__(self):
+        return f"<GiftPurchase gift_id={self.gift_id} guest_id={self.guest_id}>"
\ No newline at end of file