diff --git a/app/api/entities/project_entity.rb b/app/api/entities/project_entity.rb
index 0f3672f66..c95d6df4e 100644
--- a/app/api/entities/project_entity.rb
+++ b/app/api/entities/project_entity.rb
@@ -28,5 +28,7 @@ class ProjectEntity < Grape::Entity
 
     expose :grade, if: :for_staff
     expose :grade_rationale, if: :for_staff
+
+    expose :target_grade_histories, using: Entities::TargetGradeHistoryEntity, if: ->(project, options) { options[:in_project] }
   end
 end
diff --git a/app/api/entities/target_grade_history_entity.rb b/app/api/entities/target_grade_history_entity.rb
new file mode 100644
index 000000000..a3c1a0d74
--- /dev/null
+++ b/app/api/entities/target_grade_history_entity.rb
@@ -0,0 +1,8 @@
+module Entities
+  class TargetGradeHistoryEntity < Grape::Entity
+    expose :previous_grade
+    expose :new_grade
+    expose :changed_at
+    expose :changed_by, using: Entities::Minimal::MinimalUserEntity
+  end
+end
diff --git a/app/api/projects_api.rb b/app/api/projects_api.rb
index dc3cbafc6..3fe4e0683 100644
--- a/app/api/projects_api.rb
+++ b/app/api/projects_api.rb
@@ -20,12 +20,12 @@ class ProjectsApi < Grape::API
     present projects, with: Entities::ProjectEntity, for_student: true, summary_only: true, user: current_user
   end
 
-  desc 'Get project'
+  desc 'Get project with target grade history'
   params do
     requires :id, type: Integer, desc: 'The id of the project to get'
   end
   get '/projects/:id' do
-    project = Project.eager_load(:unit, :user).find(params[:id])
+    project = Project.includes(:unit, :user, target_grade_histories: :changed_by).find(params[:id])
 
     if authorise? current_user, project, :get
       present project, with: Entities::ProjectEntity, user: current_user, for_student: true, in_project: true
@@ -81,8 +81,25 @@ class ProjectsApi < Grape::API
         error!({ error: "You do not have permissions to change this student" }, 403)
       end
 
-      project.target_grade = params[:target_grade]
-      project.save
+      previous_grade = project.target_grade
+      new_grade = params[:target_grade]
+
+      project.target_grade = new_grade
+
+      if project.save
+        # Record the grade change history
+        TargetGradeHistory.create(
+          project_id: project.id,
+          user_id: project.user_id,
+          previous_grade: previous_grade,
+          new_grade: new_grade,
+          changed_by_id: current_user.id,
+          changed_at: Time.current
+        )
+      else
+        error!({ error: "Failed to update target grade: #{project.errors.full_messages.join(', ')}" }, 422)
+      end
+
     elsif !params[:submitted_grade].nil?
       unless authorise? current_user, project, :change
         error!({ error: "You do not have permissions to change this student" }, 403)
diff --git a/app/models/project.rb b/app/models/project.rb
index c0770cf87..af03662b5 100644
--- a/app/models/project.rb
+++ b/app/models/project.rb
@@ -31,6 +31,8 @@ class Project < ApplicationRecord
 
   has_many :learning_outcome_task_links, through: :tasks
 
+  has_many :target_grade_histories, dependent: :destroy
+
   # Callbacks - methods called are private
   before_destroy :can_destroy?
 
diff --git a/app/models/target_grade_history.rb b/app/models/target_grade_history.rb
new file mode 100644
index 000000000..8de7489a1
--- /dev/null
+++ b/app/models/target_grade_history.rb
@@ -0,0 +1,7 @@
+class TargetGradeHistory < ApplicationRecord
+  belongs_to :project
+  belongs_to :user
+  belongs_to :changed_by, class_name: 'User', foreign_key: 'changed_by_id'
+
+  validates :project_id, :user_id, :previous_grade, :new_grade, :changed_at, presence: true
+end
diff --git a/db/migrate/20241113065336_create_target_grade_history.rb b/db/migrate/20241113065336_create_target_grade_history.rb
new file mode 100644
index 000000000..650c12eab
--- /dev/null
+++ b/db/migrate/20241113065336_create_target_grade_history.rb
@@ -0,0 +1,14 @@
+class CreateTargetGradeHistory < ActiveRecord::Migration[7.1]
+  def change
+    create_table :target_grade_histories do |t|
+      t.integer :project_id, null: false #reference to the unit project
+      t.integer :user_id, null: false #This is where we refer to the student by the ID
+      t.string :previous_grade #Previous grade of the user before we update it
+      t.string :new_grade #Updated grade
+      t.integer :changed_by_id #Referene to the user who changed the grade
+      t.datetime :changed_at, null: false #The date time when the grade was changed
+
+      t.timestamps
+    end
+  end
+end
diff --git a/db/schema.rb b/db/schema.rb
index 6daa71ebf..656ea8cbf 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -10,7 +10,7 @@
 #
 # It's strongly recommended that you check this file into your version control system.
 
-ActiveRecord::Schema[7.1].define(version: 2024_05_28_223908) do
+ActiveRecord::Schema[7.1].define(version: 2024_11_13_065336) do
   create_table "activity_types", charset: "utf8", collation: "utf8_unicode_ci", force: :cascade do |t|
     t.string "name", null: false
     t.string "abbreviation", null: false
@@ -194,6 +194,17 @@
     t.datetime "updated_at", null: false
   end
 
+  create_table "target_grade_histories", charset: "utf8mb4", collation: "utf8mb4_general_ci", force: :cascade do |t|
+    t.integer "project_id", null: false
+    t.integer "user_id", null: false
+    t.string "previous_grade"
+    t.string "new_grade"
+    t.integer "changed_by_id"
+    t.datetime "changed_at", null: false
+    t.datetime "created_at", null: false
+    t.datetime "updated_at", null: false
+  end
+
   create_table "task_comments", charset: "utf8", collation: "utf8_unicode_ci", force: :cascade do |t|
     t.bigint "task_id", null: false
     t.bigint "user_id", null: false
diff --git a/test/api/projects_api_test.rb b/test/api/projects_api_test.rb
index 6d4ab3087..a98d9529b 100644
--- a/test/api/projects_api_test.rb
+++ b/test/api/projects_api_test.rb
@@ -23,7 +23,8 @@ def test_can_get_projects
   end
 
   def test_get_projects_with_streams_match
-    unit = FactoryBot.create :unit, stream_count: 2, campus_count: 2, tutorials: 2, unenrolled_student_count: 0, part_enrolled_student_count: 0, inactive_student_count: 0
+    unit = FactoryBot.create :unit, stream_count: 2, campus_count: 2, tutorials: 2,
+                             unenrolled_student_count: 0, part_enrolled_student_count: 0, inactive_student_count: 0
     project = unit.projects.first
     assert_equal 2, project.tutorial_enrolments.count
 
@@ -76,7 +77,24 @@ def test_get_project_response_is_correct
     # Add username and auth_token to Header
     add_auth_header_for(user: user)
 
-    keys = %w(id unit unit_id user_id campus_id target_grade submitted_grade portfolio_files compile_portfolio portfolio_available uses_draft_learning_summary tasks tutorial_enrolments groups task_outcome_alignments)
+    keys = %w(
+      id
+      unit
+      unit_id
+      user_id
+      campus_id
+      target_grade
+      submitted_grade
+      portfolio_files
+      compile_portfolio
+      portfolio_available
+      uses_draft_learning_summary
+      tasks
+      tutorial_enrolments
+      groups
+      task_outcome_alignments
+      target_grade_histories
+    )
     key_test = keys - %w(unit user_id portfolio_available tasks tutorial_enrolments groups task_outcome_alignments)
 
     get "/api/projects/#{project.id}"
@@ -100,7 +118,6 @@ def test_projects_works_with_inactive_units
     assert_equal 1, last_response_body.count
 
     get '/api/projects?include_inactive=true'
-
     assert_equal 2, last_response_body.count
 
     last_response_body.each do |data|
@@ -192,4 +209,44 @@ def test_download_portfolio
   ensure
     FileUtils.rm_f(project.portfolio_path)
   end
-end
+
+  
+  
+  def test_get_project_includes_target_grade_histories
+    user = FactoryBot.create(:user, :student, enrol_in: 1)
+    project = user.projects.first
+    project.update!(target_grade: 1)
+
+    add_auth_header_for(user: user)
+
+    data_to_put = { target_grade: 2 }
+    put_json "/api/projects/#{project.id}", data_to_put
+    assert_equal 200, last_response.status, last_response.body
+
+    data_to_put = { target_grade: 3 }
+    put_json "/api/projects/#{project.id}", data_to_put
+    assert_equal 200, last_response.status, last_response.body
+
+    get "/api/projects/#{project.id}"
+    assert_equal 200, last_response.status, last_response.body
+    project_json = last_response_body
+
+    assert project_json.key?('target_grade_histories'), project_json
+    histories = project_json['target_grade_histories']
+    assert_equal 2, histories.size, "Expected 2 history entries after 2 updates"
+
+    first_history = histories.first
+    assert_equal '1', first_history['previous_grade']
+    assert_equal '2', first_history['new_grade']
+    assert first_history.key?('changed_at'), "Expected changed_at key"
+    assert first_history.key?('changed_by'), "Expected changed_by key"
+
+    second_history = histories.second
+    assert_equal '2', second_history['previous_grade']
+    assert_equal '3', second_history['new_grade']
+
+    changed_by_info = second_history['changed_by']
+    assert_equal user.id, changed_by_info['id']
+    assert_equal user.username, changed_by_info['username']
+  end
+end
\ No newline at end of file