diff --git a/course_discovery/apps/tagging/admin.py b/course_discovery/apps/tagging/admin.py
index e69de29bb2..5a879490c6 100644
--- a/course_discovery/apps/tagging/admin.py
+++ b/course_discovery/apps/tagging/admin.py
@@ -0,0 +1,85 @@
+""" This module contains the admin classes for the tagging app models """
+from django.conf import settings
+from django.contrib import admin
+from django.core.exceptions import PermissionDenied
+
+from course_discovery.apps.tagging.models import CourseVertical, SubVertical, Vertical
+
+
+class SubVerticalInline(admin.TabularInline):
+    """
+    Inline form for SubVertical under VerticalAdmin.
+    """
+    model = SubVertical
+    extra = 0
+    fields = ('name', 'is_active', 'slug')
+    readonly_fields = ('slug',)
+    show_change_link = True
+
+
+@admin.register(Vertical)
+class VerticalAdmin(admin.ModelAdmin):
+    """
+    Admin class for Vertical model.
+    """
+    list_display = ('name', 'is_active', 'slug',)
+    search_fields = ('name',)
+    inlines = [SubVerticalInline]
+
+    def save_model(self, request, obj, form, change):
+        """
+        Override the save_model method to restrict non-superuser from saving the model
+        """
+        if not request.user.is_superuser:
+            raise PermissionDenied("You are not authorized to perform this action.")
+        super().save_model(request, obj, form, change)
+
+
+@admin.register(SubVertical)
+class SubVerticalAdmin(admin.ModelAdmin):
+    """
+    Admin class for SubVertical model.
+    """
+    list_display = ('name', 'is_active', 'slug', 'vertical')
+    list_filter = ('vertical', )
+    search_fields = ('name',)
+    ordering = ('name',)
+
+    def save_model(self, request, obj, form, change):
+        """
+        Override the save_model method to restrict non-superuser from saving the model
+        """
+        if not request.user.is_superuser:
+            raise PermissionDenied("You are not authorized to perform this action.")
+        super().save_model(request, obj, form, change)
+
+
+@admin.register(CourseVertical)
+class CourseVerticalAdmin(admin.ModelAdmin):
+    """
+    Admin class for CourseVertical model.
+    """
+    list_display = ('course', 'vertical', 'sub_vertical')
+    list_filter = ('vertical', 'sub_vertical')
+    search_fields = ('course__title', 'vertical__name', 'sub_vertical__name')
+    ordering = ('course__title',)
+
+    def formfield_for_foreignkey(self, db_field, request, **kwargs):
+        """
+        Override the formfield_for_foreignkey method to filter non-draft entry of courses and active vertical and
+        sub-vertical filters.
+        """
+        if db_field.name == 'vertical':
+            kwargs['queryset'] = Vertical.objects.filter(is_active=True)
+        elif db_field.name == 'sub_vertical':
+            kwargs['queryset'] = SubVertical.objects.filter(is_active=True)
+        return super().formfield_for_foreignkey(db_field, request, **kwargs)
+
+    def save_model(self, request, obj, form, change):
+        """
+        Override the save_model method to allow only superuser and users in allowed groups to save the model.
+        """
+        allowed_groups = getattr(settings, 'VERTICALS_MANAGEMENT_GROUPS', [])
+        if not (request.user.is_superuser or request.user.groups.filter(name__in=allowed_groups).exists()):
+            raise PermissionDenied("You are not authorized to perform this action.")
+        super().save_model(request, obj, form, change)
diff --git a/course_discovery/apps/tagging/migrations/0001_initial.py b/course_discovery/apps/tagging/migrations/0001_initial.py
new file mode 100644
index 0000000000..35c4eefed0
--- /dev/null
+++ b/course_discovery/apps/tagging/migrations/0001_initial.py
@@ -0,0 +1,113 @@
+# Generated by Django 4.2.14 on 2025-01-20 07:40
+
+from django.conf import settings
+from django.db import migrations, models
+import django.db.models.deletion
+import django.utils.timezone
+import django_extensions.db.fields
+import model_utils.fields
+import simple_history.models
+
+
+class Migration(migrations.Migration):
+
+    initial = True
+
+    dependencies = [
+        migrations.swappable_dependency(settings.AUTH_USER_MODEL),
+        ('course_metadata', '0346_archivecoursesconfig'),
+    ]
+
+    operations = [
+        migrations.CreateModel(
+            name='Vertical',
+            fields=[
+                ('id', models.BigAutoField(auto_created=True, primary_key=True, serialize=False, verbose_name='ID')),
+                ('created', model_utils.fields.AutoCreatedField(default=django.utils.timezone.now, editable=False, verbose_name='created')),
+                ('modified', model_utils.fields.AutoLastModifiedField(default=django.utils.timezone.now, editable=False, verbose_name='modified')),
+                ('name', models.CharField(max_length=255, unique=True)),
+                ('slug', django_extensions.db.fields.AutoSlugField(blank=True, editable=False, max_length=255, populate_from='name', unique=True)),
+                ('is_active', models.BooleanField(default=True)),
+            ],
+            options={
+                'ordering': ['name'],
+            },
+        ),
+        migrations.CreateModel(
+            name='SubVertical',
+            fields=[
+                ('id', models.BigAutoField(auto_created=True, primary_key=True, serialize=False, verbose_name='ID')),
+                ('created', model_utils.fields.AutoCreatedField(default=django.utils.timezone.now, editable=False, verbose_name='created')),
+                ('modified', model_utils.fields.AutoLastModifiedField(default=django.utils.timezone.now, editable=False, verbose_name='modified')),
+                ('name', models.CharField(max_length=255, unique=True)),
+                ('slug', django_extensions.db.fields.AutoSlugField(blank=True, editable=False, max_length=255, populate_from='name', unique=True)),
+                ('is_active', models.BooleanField(default=True)),
+                ('vertical', models.ForeignKey(on_delete=django.db.models.deletion.CASCADE, related_name='sub_verticals', to='tagging.vertical')),
+            ],
+            options={
+                'abstract': False,
+            },
+        ),
+        migrations.CreateModel(
+            name='HistoricalVertical',
+            fields=[
+                ('id', models.BigIntegerField(auto_created=True, blank=True, db_index=True, verbose_name='ID')),
+                ('created', model_utils.fields.AutoCreatedField(default=django.utils.timezone.now, editable=False, verbose_name='created')),
+                ('modified', model_utils.fields.AutoLastModifiedField(default=django.utils.timezone.now, editable=False, verbose_name='modified')),
+                ('name', models.CharField(db_index=True, max_length=255)),
+                ('slug', django_extensions.db.fields.AutoSlugField(blank=True, editable=False, max_length=255, populate_from='name')),
+                ('is_active', models.BooleanField(default=True)),
+                ('history_id', models.AutoField(primary_key=True, serialize=False)),
+                ('history_date', models.DateTimeField()),
+                ('history_change_reason', models.CharField(max_length=100, null=True)),
+                ('history_type', models.CharField(choices=[('+', 'Created'), ('~', 'Changed'), ('-', 'Deleted')], max_length=1)),
+                ('history_user', models.ForeignKey(null=True, on_delete=django.db.models.deletion.SET_NULL, related_name='+', to=settings.AUTH_USER_MODEL)),
+            ],
+            options={
+                'verbose_name': 'historical vertical',
+                'verbose_name_plural': 'historical verticals',
+                'ordering': ('-history_date', '-history_id'),
+                'get_latest_by': ('history_date', 'history_id'),
+            },
+            bases=(simple_history.models.HistoricalChanges, models.Model),
+        ),
+        migrations.CreateModel(
+            name='HistoricalSubVertical',
+            fields=[
+                ('id', models.BigIntegerField(auto_created=True, blank=True, db_index=True, verbose_name='ID')),
+                ('created', model_utils.fields.AutoCreatedField(default=django.utils.timezone.now, editable=False, verbose_name='created')),
+                ('modified', model_utils.fields.AutoLastModifiedField(default=django.utils.timezone.now, editable=False, verbose_name='modified')),
+                ('name', models.CharField(db_index=True, max_length=255)),
+                ('slug', django_extensions.db.fields.AutoSlugField(blank=True, editable=False, max_length=255, populate_from='name')),
+                ('is_active', models.BooleanField(default=True)),
+                ('history_id', models.AutoField(primary_key=True, serialize=False)),
+                ('history_date', models.DateTimeField()),
+                ('history_change_reason', models.CharField(max_length=100, null=True)),
+                ('history_type', models.CharField(choices=[('+', 'Created'), ('~', 'Changed'), ('-', 'Deleted')], max_length=1)),
+                ('history_user', models.ForeignKey(null=True, on_delete=django.db.models.deletion.SET_NULL, related_name='+', to=settings.AUTH_USER_MODEL)),
+                ('vertical', models.ForeignKey(blank=True, db_constraint=False, null=True, on_delete=django.db.models.deletion.DO_NOTHING, related_name='+', to='tagging.vertical')),
+            ],
+            options={
+                'verbose_name': 'historical sub vertical',
+                'verbose_name_plural': 'historical sub verticals',
+                'ordering': ('-history_date', '-history_id'),
+                'get_latest_by': ('history_date', 'history_id'),
+            },
+            bases=(simple_history.models.HistoricalChanges, models.Model),
+        ),
+        migrations.CreateModel(
+            name='CourseVertical',
+            fields=[
+                ('id', models.BigAutoField(auto_created=True, primary_key=True, serialize=False, verbose_name='ID')),
+                ('created', model_utils.fields.AutoCreatedField(default=django.utils.timezone.now, editable=False, verbose_name='created')),
+                ('modified', model_utils.fields.AutoLastModifiedField(default=django.utils.timezone.now, editable=False, verbose_name='modified')),
+                ('course', models.OneToOneField(limit_choices_to={'draft': False}, on_delete=django.db.models.deletion.CASCADE, related_name='verticals', to='course_metadata.course')),
+                ('sub_vertical', models.ForeignKey(blank=True, null=True, on_delete=django.db.models.deletion.CASCADE, related_name='%(class)s_sub_verticals', to='tagging.subvertical')),
+                ('vertical', models.ForeignKey(blank=True, null=True, on_delete=django.db.models.deletion.CASCADE, related_name='%(class)s_verticals', to='tagging.vertical')),
+            ],
+            options={
+                'abstract': False,
+                'unique_together': {('course',)},
+            },
+        ),
+    ]
diff --git a/course_discovery/apps/tagging/models.py b/course_discovery/apps/tagging/models.py
index e69de29bb2..181499bdc0 100644
--- a/course_discovery/apps/tagging/models.py
+++ b/course_discovery/apps/tagging/models.py
@@ -0,0 +1,116 @@
+from django.core.exceptions import ValidationError
+from django.db import models
+from django_extensions.db.fields import AutoSlugField
+from model_utils.models import TimeStampedModel
+from simple_history.models import HistoricalRecords
+
+from course_discovery.apps.course_metadata.models import Course
+
+
+class Vertical(TimeStampedModel):
+    """
+    Model for defining verticals used to categorize product types
+    """
+    name = models.CharField(max_length=255, unique=True)
+    slug = AutoSlugField(populate_from='name', max_length=255, unique=True, db_index=True)
+    is_active = models.BooleanField(default=True)
+    history = HistoricalRecords()
+
+    def __str__(self):
+        return self.name
+
+    class Meta:
+        ordering = ['name']
+
+    def save(self, *args, **kwargs):
+        """
+        Override the save method to deactivate related sub-verticals when `is_active` is set to False.
+        """
+        if self.pk:
+            cur_instance = Vertical.objects.get(pk=self.pk)
+            if cur_instance.is_active and not self.is_active:
+                self.sub_verticals.update(is_active=False)
+
+        super().save(*args, **kwargs)
+
+
+class SubVertical(TimeStampedModel):
+    """
+    Model for defining sub-verticals used to categorize product types under specific verticals.
+    """
+    name = models.CharField(max_length=255, unique=True)
+    slug = AutoSlugField(populate_from='name', max_length=255, unique=True, db_index=True)
+    is_active = models.BooleanField(default=True)
+    vertical = models.ForeignKey(Vertical, on_delete=models.CASCADE, related_name='sub_verticals')
+    history = HistoricalRecords()
+
+    def __str__(self):
+        return self.name
+
+
+class ProductVertical(TimeStampedModel):
+    """
+    Abstract base model for assigning vertical and sub verticals to product types.
+    """
+    vertical = models.ForeignKey(
+        Vertical, on_delete=models.CASCADE, null=True, blank=True, related_name="%(class)s_verticals"
+    )
+    sub_vertical = models.ForeignKey(
+        SubVertical, on_delete=models.CASCADE, null=True, blank=True, related_name="%(class)s_sub_verticals"
+    )
+    history = HistoricalRecords()
+
+    class Meta:
+        abstract = True
+
+    def __str__(self):
+        """
+        Returns a string representing the object.
+        """
+        vertical = self.vertical.name if self.vertical else "None"
+        sub_vertical = self.sub_vertical.name if self.sub_vertical else "None"
+        return f'{self.get_object_title()} - {vertical} - {sub_vertical}'
+
+    def get_object_title(self):
+        """
+        Returns a string representing the title of the object.
+        """
+        raise NotImplementedError("Subclasses must implement `get_object_title`.")
+
+
+class CourseVertical(ProductVertical):
+    """
+    Model for assigning vertical and sub verticals to courses
+    """
+    course = models.OneToOneField(
+        Course, on_delete=models.CASCADE, related_name="verticals", limit_choices_to={'draft': False}
+    )
+
+    class Meta:
+        unique_together = ["course"]
+
+    def clean(self):
+        """
+        Validate that the sub_vertical belongs to the selected vertical.
+        Automatically set the vertical if only sub_vertical is set.
+        """
+        super().clean()
+        if hasattr(self, 'sub_vertical') and self.sub_vertical:
+            if not self.vertical:
+                self.vertical = self.sub_vertical.vertical  # Auto-assign vertical if it's not set
+
+            if self.sub_vertical.vertical and self.sub_vertical.vertical != self.vertical:
+                raise ValidationError({
+                    'sub_vertical': f'Sub-vertical "{self.sub_vertical.name}" does not belong to '
+                                    f'vertical "{self.vertical.name}".'
+                })
+
+    def save(self, *args, **kwargs):
+        """
+        Call full_clean before saving to ensure validation is always run
+        """
+        self.full_clean()
+        super().save(*args, **kwargs)
+
+    def get_object_title(self):
+        return self.course.title
diff --git a/course_discovery/apps/tagging/tests.py b/course_discovery/apps/tagging/tests/__init__.py
similarity index 100%
rename from course_discovery/apps/tagging/tests.py
rename to course_discovery/apps/tagging/tests/__init__.py
diff --git a/course_discovery/apps/tagging/tests/factories.py b/course_discovery/apps/tagging/tests/factories.py
new file mode 100644
index 0000000000..0fe0a7a800
--- /dev/null
+++ b/course_discovery/apps/tagging/tests/factories.py
@@ -0,0 +1,42 @@
+""" Factories for tagging app models """
+import factory
+from factory.django import DjangoModelFactory
+from factory.fuzzy import FuzzyText
+
+from course_discovery.apps.course_metadata.tests.factories import CourseFactory
+from course_discovery.apps.tagging.models import CourseVertical, SubVertical, Vertical
+
+
+class VerticalFactory(DjangoModelFactory):
+    """
+    Factory for Vertical model
+    """
+    class Meta:
+        model = Vertical
+
+    name = FuzzyText()
+    is_active = True
+
+
+class SubVerticalFactory(DjangoModelFactory):
+    """
+    Factory for SubVertical model
+    """
+    class Meta:
+        model = SubVertical
+
+    name = FuzzyText()
+    vertical = factory.SubFactory(VerticalFactory)
+    is_active = True
+
+
+class CourseVerticalFactory(DjangoModelFactory):
+    """
+    Factory for CourseVertical model
+    """
+    class Meta:
+        model = CourseVertical
+
+    course = factory.SubFactory(CourseFactory)
+    vertical = factory.SubFactory(VerticalFactory)
+    sub_vertical = factory.SubFactory(SubVerticalFactory)
diff --git a/course_discovery/apps/tagging/tests/test_admin.py b/course_discovery/apps/tagging/tests/test_admin.py
new file mode 100644
index 0000000000..28646b5ac2
--- /dev/null
+++ b/course_discovery/apps/tagging/tests/test_admin.py
@@ -0,0 +1,153 @@
+"""
+Test the admin interface for the tagging app.
+"""
+from django.conf import settings
+from django.contrib.admin.sites import AdminSite
+from django.contrib.auth import get_user_model
+from django.contrib.auth.models import Group
+from django.core.exceptions import PermissionDenied
+from django.test import TestCase
+
+from course_discovery.apps.course_metadata.tests.factories import CourseFactory
+from course_discovery.apps.tagging.admin import CourseVerticalAdmin, SubVerticalAdmin, VerticalAdmin
+from course_discovery.apps.tagging.models import CourseVertical, SubVertical, Vertical
+from course_discovery.apps.tagging.tests.factories import CourseVerticalFactory, SubVerticalFactory, VerticalFactory
+
+User = get_user_model()
+
+
+class MockRequest:
+    def __init__(self, user=None):
+        self.user = user
+
+
+class BaseAdminTestCase(TestCase):
+    """ Base test class for admin tests """
+
+    @classmethod
+    def setUpClass(cls):
+        super().setUpClass()
+        cls.site = AdminSite()
+
+        # Create users and groups
+        cls.superuser = User.objects.create_superuser(
+            username='admin',
+            email='admin@example.com',
+            password='password'
+        )
+        cls.regular_user = User.objects.create_user(
+            username='user',
+            email='user@example.com',
+            password='password'
+        )
+
+        cls.allowed_group = Group.objects.create(name='allowed_group')
+
+
+class VerticalAdminTests(BaseAdminTestCase):
+    """ Tests for VerticalAdmin """
+
+    def setUp(self):
+        super().setUp()
+        self.vertical_admin = VerticalAdmin(Vertical, self.site)
+        self.vertical = VerticalFactory()
+
+    def test_save_model_as_superuser(self):
+        """ Verify that superuser can save vertical. """
+        request = MockRequest(self.superuser)
+        self.vertical_admin.save_model(request, self.vertical, None, False)
+
+    def test_save_model_as_regular_user(self):
+        """Verify that regular user cannot save vertical."""
+        request = MockRequest(self.regular_user)
+        with self.assertRaises(PermissionDenied):
+            self.vertical_admin.save_model(request, self.vertical, None, False)
+
+
+class SubVerticalAdminTests(BaseAdminTestCase):
+    """Tests for SubVerticalAdmin."""
+
+    def setUp(self):
+        super().setUp()
+        self.subvertical_admin = SubVerticalAdmin(SubVertical, self.site)
+        self.subvertical = SubVerticalFactory()
+
+    def test_save_model_as_superuser(self):
+        """Verify that superuser can save subvertical."""
+        request = MockRequest(self.superuser)
+        try:
+            self.subvertical_admin.save_model(request, self.subvertical, None, False)
+        except PermissionDenied:
+            self.fail("Superuser should be able to save subvertical")
+
+    def test_save_model_as_regular_user(self):
+        """Verify that regular user cannot save subvertical."""
+        request = MockRequest(self.regular_user)
+        with self.assertRaises(PermissionDenied):
+            self.subvertical_admin.save_model(request, self.subvertical, None, False)
+
+    def test_list_display(self):
+        """Verify the correct list display fields."""
+        self.assertEqual(
+            self.subvertical_admin.list_display,
+            ('name', 'is_active', 'slug', 'vertical')
+        )
+
+
+class CourseVerticalAdminTests(BaseAdminTestCase):
+    """Tests for CourseVerticalAdmin."""
+
+    def setUp(self):
+        super().setUp()
+        self.coursevertical_admin = CourseVerticalAdmin(CourseVertical, self.site)
+        self.course = CourseFactory(draft=False)
+        self.vertical = VerticalFactory(is_active=True)
+        self.subvertical = SubVerticalFactory(is_active=True, vertical=self.vertical)
+        self.coursevertical = CourseVerticalFactory(
+            course=self.course,
+            vertical=self.vertical,
+            sub_vertical=self.subvertical
+        )
+
+    def test_save_model_as_superuser(self):
+        """Verify that superuser can save course vertical."""
+        request = MockRequest(self.superuser)
+        self.coursevertical_admin.save_model(request, self.coursevertical, None, False)
+
+    def test_save_model_as_allowed_group_user(self):
+        """Verify that user in allowed group can save course vertical."""
+        self.regular_user.groups.add(self.allowed_group)
+        request = MockRequest(self.regular_user)
+        self.coursevertical_admin.save_model(request, self.coursevertical, None, False)
+
+    def test_save_model_as_regular_user(self):
+        """Verify that regular user cannot save course vertical."""
+        request = MockRequest(self.regular_user)
+        with self.assertRaises(PermissionDenied):
+            self.coursevertical_admin.save_model(request, self.coursevertical, None, False)
+
+    def test_formfield_for_foreignkey_vertical(self):
+        """ Verify that only active verticals are available """
+        inactive_vertical = VerticalFactory(is_active=False)
+        request = MockRequest(self.superuser)
+
+        formfield = self.coursevertical_admin.formfield_for_foreignkey(
+            CourseVertical._meta.get_field('vertical'),
+            request
+        )
+
+        self.assertIn(self.vertical, formfield.queryset)
+        self.assertNotIn(inactive_vertical, formfield.queryset)
+
+    def test_formfield_for_foreignkey_subvertical(self):
+        """Verify that only active subverticals are available."""
+        inactive_subvertical = SubVerticalFactory(is_active=False)
+        request = MockRequest(self.superuser)
+
+        formfield = self.coursevertical_admin.formfield_for_foreignkey(
+            CourseVertical._meta.get_field('sub_vertical'),
+            request
+        )
+
+        self.assertIn(self.subvertical, formfield.queryset)
+        self.assertNotIn(inactive_subvertical, formfield.queryset)
diff --git a/course_discovery/apps/tagging/tests/test_models.py b/course_discovery/apps/tagging/tests/test_models.py
new file mode 100644
index 0000000000..70ff5d4bc2
--- /dev/null
+++ b/course_discovery/apps/tagging/tests/test_models.py
@@ -0,0 +1,136 @@
+"""
+Tests for the models registered in tagging app
+"""
+from django.core.exceptions import ValidationError
+from django.test import TestCase
+
+from course_discovery.apps.course_metadata.tests.factories import CourseFactory
+from course_discovery.apps.tagging.models import CourseVertical, SubVertical
+from course_discovery.apps.tagging.tests.factories import CourseVerticalFactory, SubVerticalFactory, VerticalFactory
+
+
+class VerticalModelTests(TestCase):
+    def setUp(self):
+        super().setUp()
+        self.vertical = VerticalFactory(name="Test Vertical", is_active=True)
+
+    def test_str(self):
+        """ Verify the string representation of a vertical """
+        self.assertEqual(str(self.vertical), self.vertical.name)
+
+    def test_unique_name(self):
+        """ Verify that vertical names must be unique """
+        with self.assertRaises(Exception):
+            VerticalFactory(name="Test Vertical")
+
+    def test_vertical_filter_creation(self):
+        """ Verify that vertical filter is created correctly """
+        self.assertEqual(self.vertical.name, "Test Vertical")
+        self.assertTrue(self.vertical.is_active)
+        self.assertEqual(self.vertical.slug, "test-vertical")
+        self.assertEqual(str(self.vertical), "Test Vertical")
+
+    def test_deactivate_sub_verticals(self):
+        """ Verify that deactivating a vertical also deactivates its sub-verticals """
+        sub_vertical = SubVerticalFactory(vertical=self.vertical)
+        self.assertTrue(sub_vertical.is_active)
+
+        self.vertical.is_active = False
+        self.vertical.save()
+
+        sub_vertical.refresh_from_db()
+        self.assertFalse(sub_vertical.is_active)
+
+
+class SubVerticalModelTests(TestCase):
+
+    def setUp(self):
+        super().setUp()
+        self.vertical = VerticalFactory(name="Technology")
+        self.sub_vertical = SubVerticalFactory(
+            name="Software Engineering", vertical=self.vertical
+        )
+
+    def test_str(self):
+        """ Verify the string representation of a sub-vertical """
+        self.assertEqual(str(self.sub_vertical), self.sub_vertical.name)
+
+    def test_sub_vertical_filter_creation(self):
+        """ Verify that sub-vertical filter is created correctly """
+        self.assertEqual(self.sub_vertical.name, "Software Engineering")
+        self.assertEqual(self.sub_vertical.vertical, self.vertical)
+        self.assertEqual(self.sub_vertical.slug, "software-engineering")
+        self.assertTrue(self.sub_vertical.is_active)
+
+    def test_unique_name_constraint(self):
+        """ Verify that sub-vertical names must be unique """
+        with self.assertRaises(Exception):
+            SubVerticalFactory(name="Software Engineering", vertical=self.vertical)
+
+    def test_cascade_delete(self):
+        """ Verify that sub-verticals are deleted when their vertical is deleted """
+        sub_vertical_id = self.sub_vertical.id
+        self.vertical.delete()
+
+        with self.assertRaises(SubVertical.DoesNotExist):
+            SubVertical.objects.get(id=sub_vertical_id)
+
+
+class CourseVerticalModelTests(TestCase):
+    def setUp(self):
+        self.course_draft = CourseFactory(title="Test Course", draft=True)
+        self.course = CourseFactory(title="Test Course", draft=False, draft_version_id=self.course_draft.id)
+        self.vertical = VerticalFactory(name="Test Vertical")
+        self.sub_vertical = SubVerticalFactory(
+            name="Test Sub Vertical", vertical=self.vertical
+        )
+        self.course_vertical = CourseVerticalFactory(
+            course=self.course, vertical=self.vertical, sub_vertical=self.sub_vertical
+        )
+
+    def test_course_vertical_filter_creation(self):
+        self.assertEqual(self.course_vertical.course, self.course)
+        self.assertEqual(self.course_vertical.vertical, self.vertical)
+        self.assertEqual(self.course_vertical.sub_vertical, self.sub_vertical)
+        self.assertEqual(str(self.course_vertical), "Test Course - Test Vertical - Test Sub Vertical")
+
+    def test_unique_course(self):
+        """ Verify that a course can only have one vertical assignment """
+        with self.assertRaises(Exception):
+            CourseVerticalFactory(
+                course=self.course,
+                vertical=self.vertical,
+                sub_vertical=self.sub_vertical
+            )
+
+    def test_cascade_delete_vertical(self):
+        """Verify that course verticals are deleted when their vertical is deleted."""
+        course_vertical_id = self.course_vertical.id
+        self.vertical.delete()
+
+        with self.assertRaises(CourseVertical.DoesNotExist):
+            CourseVertical.objects.get(id=course_vertical_id)
+
+    def test_cascade_delete_sub_vertical(self):
+        """ Verify that course verticals are deleted when their sub-vertical is deleted """
+        course_vertical_id = self.course_vertical.id
+        self.sub_vertical.delete()
+
+        with self.assertRaises(CourseVertical.DoesNotExist):
+            CourseVertical.objects.get(id=course_vertical_id)
+
+    def test_get_object_title(self):
+        """ Verify that get_object_title returns the course title """
+        self.assertEqual(self.course_vertical.get_object_title(), self.course.title)
+
+    def test_mismatched_sub_vertical(self):
+        """Verify that a sub-vertical must belong to the selected vertical."""
+        different_vertical = VerticalFactory()
+        mismatched_sub_vertical = SubVerticalFactory(vertical=different_vertical)
+
+        with self.assertRaises(ValidationError):
+            CourseVertical.objects.create(
+                course=CourseFactory(),
+                vertical=self.vertical,
+                sub_vertical=mismatched_sub_vertical
+            )
diff --git a/course_discovery/settings/base.py b/course_discovery/settings/base.py
index bae2abbffc..f88fad3170 100644
--- a/course_discovery/settings/base.py
+++ b/course_discovery/settings/base.py
@@ -801,3 +801,6 @@
 RETIRED_RUN_TYPES = []
 RETIRED_COURSE_TYPES = []
 COURSE_ARCHIVAL_MAIL_RECIPIENTS = ['phoenix@edx.org']
+
+# The list of user groups that have access to assign verticals and sub-verticals to courses
+VERTICALS_MANAGEMENT_GROUPS = []
diff --git a/course_discovery/settings/test.py b/course_discovery/settings/test.py
index e2246610be..99ee575d73 100644
--- a/course_discovery/settings/test.py
+++ b/course_discovery/settings/test.py
@@ -166,3 +166,5 @@
 
 RETIRED_RUN_TYPES = ['paid-bootcamp', 'unpaid-bootcamp']
 RETIRED_COURSE_TYPES = ['bootcamp-2u']
+
+VERTICALS_MANAGEMENT_GROUPS = ['allowed_group']