diff --git a/packages/backend/app/db/schema.sql b/packages/backend/app/db/schema.sql
index 410189de..29e3dbe0 100644
--- a/packages/backend/app/db/schema.sql
+++ b/packages/backend/app/db/schema.sql
@@ -123,3 +123,39 @@ CREATE TABLE IF NOT EXISTS audit_logs (
   action VARCHAR(100) NOT NULL,
   created_at TIMESTAMP NOT NULL DEFAULT NOW()
 );
+
+-- Savings Goals tables
+
+DO $$ BEGIN
+  CREATE TYPE goal_status AS ENUM ('ACTIVE', 'COMPLETED', 'CANCELLED');
+EXCEPTION
+  WHEN duplicate_object THEN NULL;
+END $$;
+
+CREATE TABLE IF NOT EXISTS savings_goals (
+  id SERIAL PRIMARY KEY,
+  user_id INT NOT NULL REFERENCES users(id) ON DELETE CASCADE,
+  name VARCHAR(200) NOT NULL,
+  target_amount NUMERIC(12,2) NOT NULL,
+  current_amount NUMERIC(12,2) NOT NULL DEFAULT 0,
+  currency VARCHAR(10) NOT NULL DEFAULT 'INR',
+  target_date DATE,
+  status goal_status NOT NULL DEFAULT 'ACTIVE',
+  notes VARCHAR(500),
+  created_at TIMESTAMP NOT NULL DEFAULT NOW(),
+  updated_at TIMESTAMP NOT NULL DEFAULT NOW()
+);
+
+CREATE TABLE IF NOT EXISTS goal_contributions (
+  id SERIAL PRIMARY KEY,
+  user_id INT NOT NULL REFERENCES users(id) ON DELETE CASCADE,
+  goal_id INT NOT NULL REFERENCES savings_goals(id) ON DELETE CASCADE,
+  amount NUMERIC(12,2) NOT NULL,
+  currency VARCHAR(10) NOT NULL DEFAULT 'INR',
+  note VARCHAR(500),
+  contributed_at TIMESTAMP NOT NULL DEFAULT NOW(),
+  created_at TIMESTAMP NOT NULL DEFAULT NOW()
+);
+
+CREATE INDEX IF NOT EXISTS idx_savings_goals_user ON savings_goals(user_id);
+CREATE INDEX IF NOT EXISTS idx_goal_contributions_goal ON goal_contributions(goal_id);
diff --git a/packages/backend/app/models.py b/packages/backend/app/models.py
index 64d44810..44ed6fbd 100644
--- a/packages/backend/app/models.py
+++ b/packages/backend/app/models.py
@@ -127,6 +127,39 @@ class UserSubscription(db.Model):
     started_at = db.Column(db.DateTime, default=datetime.utcnow, nullable=False)
 
 
+class GoalStatus(str, Enum):
+    ACTIVE = "ACTIVE"
+    COMPLETED = "COMPLETED"
+    CANCELLED = "CANCELLED"
+
+
+class SavingsGoal(db.Model):
+    __tablename__ = "savings_goals"
+    id = db.Column(db.Integer, primary_key=True)
+    user_id = db.Column(db.Integer, db.ForeignKey("users.id"), nullable=False)
+    name = db.Column(db.String(200), nullable=False)
+    target_amount = db.Column(db.Numeric(12, 2), nullable=False)
+    current_amount = db.Column(db.Numeric(12, 2), default=0, nullable=False)
+    currency = db.Column(db.String(10), default="INR", nullable=False)
+    target_date = db.Column(db.Date, nullable=True)
+    status = db.Column(SAEnum(GoalStatus), default=GoalStatus.ACTIVE, nullable=False)
+    notes = db.Column(db.String(500), nullable=True)
+    created_at = db.Column(db.DateTime, default=datetime.utcnow, nullable=False)
+    updated_at = db.Column(db.DateTime, default=datetime.utcnow, onupdate=datetime.utcnow, nullable=False)
+
+
+class GoalContribution(db.Model):
+    __tablename__ = "goal_contributions"
+    id = db.Column(db.Integer, primary_key=True)
+    user_id = db.Column(db.Integer, db.ForeignKey("users.id"), nullable=False)
+    goal_id = db.Column(db.Integer, db.ForeignKey("savings_goals.id"), nullable=False)
+    amount = db.Column(db.Numeric(12, 2), nullable=False)
+    currency = db.Column(db.String(10), default="INR", nullable=False)
+    note = db.Column(db.String(500), nullable=True)
+    contributed_at = db.Column(db.DateTime, default=datetime.utcnow, nullable=False)
+    created_at = db.Column(db.DateTime, default=datetime.utcnow, nullable=False)
+
+
 class AuditLog(db.Model):
     __tablename__ = "audit_logs"
     id = db.Column(db.Integer, primary_key=True)
diff --git a/packages/backend/app/routes/__init__.py b/packages/backend/app/routes/__init__.py
index f13b0f89..857ff855 100644
--- a/packages/backend/app/routes/__init__.py
+++ b/packages/backend/app/routes/__init__.py
@@ -7,6 +7,7 @@
 from .categories import bp as categories_bp
 from .docs import bp as docs_bp
 from .dashboard import bp as dashboard_bp
+from .savings_goals import bp as savings_goals_bp
 
 
 def register_routes(app: Flask):
@@ -18,3 +19,4 @@ def register_routes(app: Flask):
     app.register_blueprint(categories_bp, url_prefix="/categories")
     app.register_blueprint(docs_bp, url_prefix="/docs")
     app.register_blueprint(dashboard_bp, url_prefix="/dashboard")
+    app.register_blueprint(savings_goals_bp, url_prefix="/savings-goals")
diff --git a/packages/backend/app/routes/savings_goals.py b/packages/backend/app/routes/savings_goals.py
new file mode 100644
index 00000000..e4c50d99
--- /dev/null
+++ b/packages/backend/app/routes/savings_goals.py
@@ -0,0 +1,263 @@
+"""
+API routes for savings goals and milestones.
+"""
+
+from datetime import date
+from decimal import Decimal, InvalidOperation
+
+from flask import Blueprint, jsonify, request
+from flask_jwt_extended import get_jwt_identity, jwt_required
+
+from ..extensions import db
+from ..models import GoalContribution, GoalStatus, SavingsGoal, User
+
+bp = Blueprint("savings_goals", __name__)
+
+
+@bp.get("")
+@jwt_required()
+def list_goals():
+    """List all savings goals for the current user."""
+    uid = int(get_jwt_identity())
+    status_filter = request.args.get("status")
+
+    q = db.session.query(SavingsGoal).filter_by(user_id=uid)
+
+    if status_filter:
+        try:
+            q = q.filter_by(status=GoalStatus(status_filter.upper()))
+        except ValueError:
+            pass  # Ignore invalid status filter
+
+    goals = q.order_by(SavingsGoal.created_at.desc()).all()
+    return jsonify([_goal_to_dict(g) for g in goals])
+
+
+@bp.post("")
+@jwt_required()
+def create_goal():
+    """Create a new savings goal."""
+    uid = int(get_jwt_identity())
+    user = db.session.get(User, uid)
+    data = request.get_json() or {}
+
+    name = (data.get("name") or "").strip()
+    if not name:
+        return jsonify(error="name is required"), 400
+
+    target_amount = _parse_amount(data.get("target_amount"))
+    if target_amount is None or target_amount <= 0:
+        return jsonify(error="valid target_amount is required"), 400
+
+    target_date = None
+    if data.get("target_date"):
+        try:
+            target_date = date.fromisoformat(data.get("target_date"))
+        except ValueError:
+            return jsonify(error="invalid target_date format (use YYYY-MM-DD)"), 400
+
+    goal = SavingsGoal(
+        user_id=uid,
+        name=name,
+        target_amount=target_amount,
+        current_amount=Decimal("0"),
+        currency=data.get("currency") or (user.preferred_currency if user else "INR"),
+        target_date=target_date,
+        notes=data.get("notes"),
+        status=GoalStatus.ACTIVE,
+    )
+    db.session.add(goal)
+    db.session.commit()
+    return jsonify(_goal_to_dict(goal)), 201
+
+
+@bp.get("/<int:goal_id>")
+@jwt_required()
+def get_goal(goal_id: int):
+    """Get a specific savings goal with contributions."""
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+
+    if not goal or goal.user_id != uid:
+        return jsonify(error="not found"), 404
+
+    contributions = (
+        db.session.query(GoalContribution)
+        .filter_by(goal_id=goal_id)
+        .order_by(GoalContribution.contributed_at.desc())
+        .all()
+    )
+
+    result = _goal_to_dict(goal)
+    result["contributions"] = [_contribution_to_dict(c) for c in contributions]
+    return jsonify(result)
+
+
+@bp.patch("/<int:goal_id>")
+@jwt_required()
+def update_goal(goal_id: int):
+    """Update a savings goal."""
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+
+    if not goal or goal.user_id != uid:
+        return jsonify(error="not found"), 404
+
+    data = request.get_json() or {}
+
+    if "name" in data:
+        name = data["name"].strip()
+        if not name:
+            return jsonify(error="name cannot be empty"), 400
+        goal.name = name
+
+    if "target_amount" in data:
+        target_amount = _parse_amount(data["target_amount"])
+        if target_amount is None or target_amount <= 0:
+            return jsonify(error="invalid target_amount"), 400
+        goal.target_amount = target_amount
+
+    if "current_amount" in data:
+        current_amount = _parse_amount(data["current_amount"])
+        if current_amount is None or current_amount < 0:
+            return jsonify(error="invalid current_amount"), 400
+        goal.current_amount = current_amount
+        # Auto-complete if target reached
+        if goal.current_amount >= goal.target_amount:
+            goal.status = GoalStatus.COMPLETED
+
+    if "target_date" in data:
+        if data["target_date"]:
+            try:
+                goal.target_date = date.fromisoformat(data["target_date"])
+            except ValueError:
+                return jsonify(error="invalid target_date format"), 400
+        else:
+            goal.target_date = None
+
+    if "status" in data:
+        try:
+            goal.status = GoalStatus(data["status"].upper())
+        except ValueError:
+            return jsonify(error="invalid status (ACTIVE, COMPLETED, CANCELLED)"), 400
+
+    if "notes" in data:
+        goal.notes = data["notes"]
+
+    db.session.commit()
+    return jsonify(_goal_to_dict(goal))
+
+
+@bp.delete("/<int:goal_id>")
+@jwt_required()
+def delete_goal(goal_id: int):
+    """Delete a savings goal and its contributions."""
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+
+    if not goal or goal.user_id != uid:
+        return jsonify(error="not found"), 404
+
+    # Delete associated contributions
+    db.session.query(GoalContribution).filter_by(goal_id=goal_id).delete()
+    db.session.delete(goal)
+    db.session.commit()
+    return jsonify(message="deleted")
+
+
+# --- Contribution endpoints ---
+
+@bp.post("/<int:goal_id>/contributions")
+@jwt_required()
+def add_contribution(goal_id: int):
+    """Add a contribution to a savings goal."""
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+
+    if not goal or goal.user_id != uid:
+        return jsonify(error="goal not found"), 404
+
+    data = request.get_json() or {}
+
+    amount = _parse_amount(data.get("amount"))
+    if amount is None or amount <= 0:
+        return jsonify(error="valid amount is required"), 400
+
+    currency = data.get("currency") or goal.currency
+
+    contribution = GoalContribution(
+        user_id=uid,
+        goal_id=goal_id,
+        amount=amount,
+        currency=currency,
+        note=data.get("note"),
+    )
+    db.session.add(contribution)
+
+    # Update goal's current amount
+    goal.current_amount = (goal.current_amount or Decimal("0")) + amount
+
+    # Auto-complete if target reached
+    if goal.current_amount >= goal.target_amount:
+        goal.status = GoalStatus.COMPLETED
+
+    db.session.commit()
+    return jsonify(_goal_to_dict(goal)), 201
+
+
+@bp.get("/<int:goal_id>/contributions")
+@jwt_required()
+def list_contributions(goal_id: int):
+    """List all contributions for a goal."""
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+
+    if not goal or goal.user_id != uid:
+        return jsonify(error="goal not found"), 404
+
+    contributions = (
+        db.session.query(GoalContribution)
+        .filter_by(goal_id=goal_id)
+        .order_by(GoalContribution.contributed_at.desc())
+        .all()
+    )
+    return jsonify([_contribution_to_dict(c) for c in contributions])
+
+
+# --- Helper functions ---
+
+def _goal_to_dict(goal: SavingsGoal) -> dict:
+    progress = 0.0
+    if goal.target_amount and goal.target_amount > 0:
+        progress = float(goal.current_amount or 0) / float(goal.target_amount) * 100
+
+    return {
+        "id": goal.id,
+        "name": goal.name,
+        "target_amount": float(goal.target_amount),
+        "current_amount": float(goal.current_amount or 0),
+        "currency": goal.currency,
+        "target_date": goal.target_date.isoformat() if goal.target_date else None,
+        "status": goal.status.value if goal.status else GoalStatus.ACTIVE.value,
+        "notes": goal.notes,
+        "progress": round(progress, 2),
+        "created_at": goal.created_at.isoformat() if goal.created_at else None,
+        "updated_at": goal.updated_at.isoformat() if goal.updated_at else None,
+    }
+
+
+def _contribution_to_dict(contribution: GoalContribution) -> dict:
+    return {
+        "id": contribution.id,
+        "amount": float(contribution.amount),
+        "currency": contribution.currency,
+        "note": contribution.note,
+        "contributed_at": contribution.contributed_at.isoformat() if contribution.contributed_at else None,
+    }
+
+
+def _parse_amount(raw) -> Decimal | None:
+    try:
+        return Decimal(str(raw)).quantize(Decimal("0.01"))
+    except (InvalidOperation, ValueError, TypeError):
+        return None