diff --git a/pyproject.toml b/pyproject.toml
index 478daf51..cbec6045 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -35,6 +35,7 @@ reasoner = "goose.toolkit.reasoner:Reasoner"
 repo_context = "goose.toolkit.repo_context.repo_context:RepoContext"
 synopsis = "goose.synopsis.toolkit:SynopsisDeveloper"
 browser = "goose.toolkit.web_browser:BrowserToolkit"
+memory = "goose.toolkit.memory:Memory"
 
 [project.entry-points."goose.profile"]
 default = "goose.profile:default_profile"
@@ -74,7 +75,8 @@ dev-dependencies = [
     "mkdocstrings-python>=1.11.1",
     "mkdocstrings>=0.26.1",
     "pytest-mock>=3.14.0",
-    "pytest>=8.3.2"
+    "pytest>=8.3.2",
+    "tomli>=2.0.1",
 ]
 
 [tool.uv.sources]
diff --git a/src/goose/toolkit/memory.py b/src/goose/toolkit/memory.py
new file mode 100644
index 00000000..d1ee615b
--- /dev/null
+++ b/src/goose/toolkit/memory.py
@@ -0,0 +1,207 @@
+from pathlib import Path
+from typing import Optional, List, Dict
+import re
+
+from jinja2 import Environment, FileSystemLoader
+
+from goose.toolkit.base import Toolkit, tool
+
+
+class Memory(Toolkit):
+    """Memory toolkit for storing and retrieving natural
+    language memories with categories and tags"""
+
+    def __init__(self, *args: object, **kwargs: dict[str, object]) -> None:
+        super().__init__(*args, **kwargs)
+        # Setup memory directories
+        self.local_memory_dir = Path(".goose/memory")
+        self.global_memory_dir = Path.home() / ".config/goose/memory"
+        self._ensure_memory_dirs()
+
+    def _get_memories_data(self) -> dict:
+        """Get memory data in a format suitable for template rendering"""
+        data = {"global": {}, "local": {}, "has_memories": False}
+
+        # Get global memories
+        if self.global_memory_dir.exists():
+            global_cats = [f.stem for f in self.global_memory_dir.glob("*.txt")]
+            for cat in sorted(global_cats):
+                memories = self._load_memories(cat, "global")
+                if memories:
+                    data["global"][cat] = memories
+                    data["has_memories"] = True
+
+        # Get local memories
+        if self.local_memory_dir.exists():
+            local_cats = [f.stem for f in self.local_memory_dir.glob("*.txt")]
+            for cat in sorted(local_cats):
+                memories = self._load_memories(cat, "local")
+                if memories:
+                    data["local"][cat] = memories
+                    data["has_memories"] = True
+
+        return data
+
+    def system(self) -> str:
+        """Get the memory-specific additions to the system prompt"""
+        # Get the template directly since we need to render with our own variables
+        base_path = Path(__file__).parent / "prompts"
+        env = Environment(loader=FileSystemLoader(base_path))
+        template = env.get_template("memory.jinja")
+        return template.render(memories=self._get_memories_data())
+
+    def _ensure_memory_dirs(self) -> None:
+        """Ensure memory directories exist"""
+        self.local_memory_dir.parent.mkdir(parents=True, exist_ok=True)
+        self.local_memory_dir.mkdir(exist_ok=True)
+        self.global_memory_dir.parent.mkdir(parents=True, exist_ok=True)
+        self.global_memory_dir.mkdir(exist_ok=True)
+
+    def _get_memory_file(self, category: str, scope: str = "global") -> Path:
+        """Get the path to a memory category file"""
+        base_dir = self.global_memory_dir if scope == "global" else self.local_memory_dir
+        return base_dir / f"{category}.txt"
+
+    def _load_memories(self, category: str, scope: str = "global") -> List[Dict[str, str]]:
+        """Load memories from a category file"""
+        memory_file = self._get_memory_file(category, scope)
+        if not memory_file.exists():
+            return []
+
+        memories = []
+        content = memory_file.read_text().strip()
+        if content:
+            for block in content.split("\n\n"):
+                if not block.strip():
+                    continue
+                memory_lines = block.strip().split("\n")
+                tags = []
+                text = []
+                for line in memory_lines:
+                    if line.startswith("#"):
+                        tags.extend(tag.strip() for tag in line[1:].split())
+                    else:
+                        text.append(line)
+                memories.append({"text": "\n".join(text).strip(), "tags": tags})
+        return memories
+
+    def _save_memories(self, memories: List[Dict[str, str]], category: str, scope: str = "global") -> None:
+        """Save memories to a category file"""
+        memory_file = self._get_memory_file(category, scope)
+        content = []
+        for memory in memories:
+            if memory["tags"]:
+                content.append(f"#{' '.join(memory['tags'])}")
+            content.append(memory["text"])
+            content.append("")  # Empty line between memories
+        memory_file.write_text("\n".join(content))
+
+    @tool
+    def remember(self, text: str, category: str, tags: Optional[str] = None, scope: str = "global") -> str:
+        """Save a memory with optional tags in a specific category
+
+        Args:
+            text (str): The memory text to store
+            category (str): The category to store the memory under (e.g., development, personal)
+            tags (str, optional): Space-separated tags to associate with the memory
+            scope (str): Where to store the memory - 'global' or 'local'
+        """
+        # Clean and validate category name
+        category = re.sub(r"[^a-zA-Z0-9_-]", "_", category.lower())
+
+        # Process tags - remove any existing # prefix and store clean tags
+        tag_list = []
+        if tags:
+            tag_list = [tag.strip().lstrip("#") for tag in tags.split() if tag.strip()]
+
+        # Load existing memories
+        memories = self._load_memories(category, scope)
+
+        # Add new memory
+        memories.append({"text": text, "tags": tag_list})
+
+        # Save updated memories
+        self._save_memories(memories, category, scope)
+
+        tag_msg = f" with tags: {', '.join(tag_list)}" if tag_list else ""
+        return f"I'll remember that in the {category} category{tag_msg} ({scope} scope)"
+
+    @tool
+    def search(self, query: str, category: Optional[str] = None, scope: Optional[str] = None) -> str:
+        """Search through memories by text and tags
+
+        Args:
+            query (str): Text to search for in memories and tags
+            category (str, optional): Specific category to search in
+            scope (str, optional): Which scope to search - 'global', 'local', or None (both)
+        """
+        results = []
+        scopes = ["global", "local"] if scope is None else [scope]
+
+        for current_scope in scopes:
+            base_dir = self.global_memory_dir if current_scope == "global" else self.local_memory_dir
+            if not base_dir.exists():
+                continue
+
+            # Get categories to search
+            if category:
+                categories = [category]
+            else:
+                categories = [f.stem for f in base_dir.glob("*.txt")]
+
+            # Search in each category
+            for cat in categories:
+                memories = self._load_memories(cat, current_scope)
+                for memory in memories:
+                    # Search in text and tags
+                    if query.lower() in memory["text"].lower() or any(
+                        query.lower() in tag.lower() for tag in memory["tags"]
+                    ):
+                        tag_str = f" [tags: {', '.join(memory['tags'])}]" if memory["tags"] else ""
+                        results.append(f"{current_scope}/{cat}: {memory['text']}{tag_str}")
+
+        if not results:
+            return "No matching memories found"
+
+        return "\n\n".join(results)
+
+    @tool
+    def list_categories(self, scope: Optional[str] = None) -> str:
+        """List all memory categories
+
+        Args:
+            scope (str, optional): Which scope to list - 'global', 'local', or None (both)
+        """
+        categories = []
+
+        if scope in (None, "local") and self.local_memory_dir.exists():
+            local_cats = [f.stem for f in self.local_memory_dir.glob("*.txt")]
+            if local_cats:
+                categories.append("Local categories:")
+                categories.extend(f"  - {cat}" for cat in sorted(local_cats))
+
+        if scope in (None, "global") and self.global_memory_dir.exists():
+            global_cats = [f.stem for f in self.global_memory_dir.glob("*.txt")]
+            if global_cats:
+                categories.append("Global categories:")
+                categories.extend(f"  - {cat}" for cat in sorted(global_cats))
+
+        if not categories:
+            return "No categories found in the specified scope(s)"
+
+        return "\n".join(categories)
+
+    @tool
+    def forget_category(self, category: str, scope: str = "global") -> str:
+        """Remove an entire category of memories
+
+        Args:
+            category (str): The category to remove
+            scope (str): Which scope to remove from - 'global' or 'local'
+        """
+        memory_file = self._get_memory_file(category, scope)
+        if not memory_file.exists():
+            return f"No {category} category found in {scope} scope"
+
+        memory_file.unlink()
+        return f"Successfully removed {category} category from {scope} scope"
diff --git a/src/goose/toolkit/prompts/memory.jinja b/src/goose/toolkit/prompts/memory.jinja
new file mode 100644
index 00000000..d5f21a24
--- /dev/null
+++ b/src/goose/toolkit/prompts/memory.jinja
@@ -0,0 +1,69 @@
+I have access to a memory system that helps me store and recall information across conversations. The memories are organized into categories and can be tagged for better searchability.
+
+I can:
+1. Remember information in categories (like "development", "preferences", "personal") with optional tags
+2. Search through memories by text or tags
+3. List all memory categories
+4. Remove entire categories of memories
+
+When users share important information like:
+- Their name or personal details
+- Project preferences
+- Common tasks or workflows
+- Configuration settings
+
+I should:
+1. Identify the key piece of information
+2. Ask if they'd like me to remember it for future reference
+3. If they agree:
+   - Suggest an appropriate category (e.g., "personal" for preferences, "development" for coding practices)
+   - Ask if they want any specific tags for easier searching
+   - Ask whether to store it:
+     - Locally (.goose/memory) for project-specific information
+     - Globally (~/.config/goose/memory) for user-wide preferences
+4. Use the remember tool with the chosen category, tags, and scope
+
+Example:
+User: "For this project, we use black for code formatting"
+Assistant: "I notice you mentioned a development preference. Would you like me to remember this for future conversations?"
+User: "Yes please"
+Assistant: "I'll store this in the 'development' category. Would you like me to add any specific tags? For example: #formatting #tools"
+User: "Yes, those tags work"
+Assistant: "And should I store this locally for just this project, or globally for all projects?"
+User: "Locally please"
+Assistant: *uses remember tool with category="development", tags="formatting tools", scope="local"*
+
+{% if memories.has_memories %}
+Here are the existing memories I have access to:
+
+{% if memories.global %}
+Global memories:
+{% for category, category_memories in memories.global.items() %}
+
+Category: {{ category }}
+{% for memory in category_memories %}
+- {{ memory.text }}{% if memory.tags %} [tags: {{ memory.tags|join(' ') }}]{% endif %}
+{% endfor %}
+{% endfor %}
+{% endif %}
+
+{% if memories.local %}
+Local memories:
+{% for category, category_memories in memories.local.items() %}
+
+Category: {{ category }}
+{% for memory in category_memories %}
+- {{ memory.text }}{% if memory.tags %} [tags: {{ memory.tags|join(' ') }}]{% endif %}
+{% endfor %}
+{% endfor %}
+{% endif %}
+
+{% else %}
+No existing memories found.
+{% endif %}
+
+I should always:
+- Ask before storing information
+- Suggest relevant categories and tags
+- Clarify the storage scope
+- Provide feedback about what was stored
\ No newline at end of file
diff --git a/tests/toolkit/test_memory.py b/tests/toolkit/test_memory.py
new file mode 100644
index 00000000..b9c2a647
--- /dev/null
+++ b/tests/toolkit/test_memory.py
@@ -0,0 +1,143 @@
+from unittest.mock import MagicMock
+import pytest
+from goose.toolkit.memory import Memory
+
+
+@pytest.fixture
+def memory_toolkit(tmp_path):
+    """Create a memory toolkit instance with temporary directories"""
+    mock_notifier = MagicMock()
+    toolkit = Memory(notifier=mock_notifier)
+    # Override memory directories for testing
+    toolkit.local_memory_dir = tmp_path / ".goose/memory"
+    toolkit.global_memory_dir = tmp_path / ".config/goose/memory"
+    toolkit._ensure_memory_dirs()
+    return toolkit
+
+
+def test_remember_global(memory_toolkit):
+    """Test storing a memory in global scope"""
+    result = memory_toolkit.remember("Test memory", "test_category", tags="tag1 tag2", scope="global")
+    assert "test_category" in result
+    assert "tag1" in result
+    assert "tag2" in result
+    assert "global" in result
+
+    # Verify file content
+    memory_file = memory_toolkit.global_memory_dir / "test_category.txt"
+    content = memory_file.read_text()
+    assert "#tag1 tag2" in content
+    assert "Test memory" in content
+
+
+def test_remember_local(memory_toolkit):
+    """Test storing a memory in local scope"""
+    result = memory_toolkit.remember("Local test", "local_category", tags="local", scope="local")
+    assert "local_category" in result
+    assert "local" in result
+
+    # Verify file content
+    memory_file = memory_toolkit.local_memory_dir / "local_category.txt"
+    content = memory_file.read_text()
+    assert "#local" in content
+    assert "Local test" in content
+
+
+def test_search_by_text(memory_toolkit):
+    """Test searching memories by text"""
+    memory_toolkit.remember("Test memory one", "category1", scope="global")
+    memory_toolkit.remember("Test memory two", "category2", scope="global")
+
+    result = memory_toolkit.search("memory")
+    assert "Test memory one" in result
+    assert "Test memory two" in result
+
+
+def test_search_by_tag(memory_toolkit):
+    """Test searching memories by tag"""
+    memory_toolkit.remember("Tagged memory", "tagged", tags="findme test", scope="global")
+    memory_toolkit.remember("Another tagged", "tagged", tags="findme other", scope="global")
+
+    result = memory_toolkit.search("findme")
+    assert "Tagged memory" in result
+    assert "Another tagged" in result
+
+
+def test_search_specific_category(memory_toolkit):
+    """Test searching in a specific category"""
+    memory_toolkit.remember("Memory in cat1", "cat1", scope="global")
+    memory_toolkit.remember("Memory in cat2", "cat2", scope="global")
+
+    result = memory_toolkit.search("Memory", category="cat1")
+    assert "Memory in cat1" in result
+    assert "Memory in cat2" not in result
+
+
+def test_list_categories(memory_toolkit):
+    """Test listing memory categories"""
+    memory_toolkit.remember("Global memory", "global_cat", scope="global")
+    memory_toolkit.remember("Local memory", "local_cat", scope="local")
+
+    result = memory_toolkit.list_categories()
+    assert "global_cat" in result
+    assert "local_cat" in result
+
+    # Test scope filtering
+    global_only = memory_toolkit.list_categories(scope="global")
+    assert "global_cat" in global_only
+    assert "local_cat" not in global_only
+
+
+def test_forget_category(memory_toolkit):
+    """Test removing a category"""
+    memory_toolkit.remember("Memory to forget", "forget_me", scope="global")
+    assert (memory_toolkit.global_memory_dir / "forget_me.txt").exists()
+
+    result = memory_toolkit.forget_category("forget_me", scope="global")
+    assert "Successfully removed" in result
+    assert not (memory_toolkit.global_memory_dir / "forget_me.txt").exists()
+
+
+def test_invalid_category_name(memory_toolkit):
+    """Test that invalid category names are sanitized"""
+    result = memory_toolkit.remember("Test memory", "test/category!", tags="tag", scope="global")
+    assert "test_category_" in result
+
+    # Verify file was created with sanitized name
+    files = list(memory_toolkit.global_memory_dir.glob("*.txt"))
+    assert len(files) == 1
+    assert "test_category_" in files[0].name
+
+
+def test_system_prompt_includes_memories(memory_toolkit):
+    """Test that the system prompt includes existing memories"""
+    # Add some test memories
+    memory_toolkit.remember("Global test memory", "global_cat", tags="tag1 tag2", scope="global")
+    memory_toolkit.remember("Local test memory", "local_cat", tags="tag3", scope="local")
+
+    system_prompt = memory_toolkit.system()
+
+    # Check that the base prompt is included
+    assert "I have access to a memory system" in system_prompt
+
+    # Check that memories are included
+    assert "Global memories:" in system_prompt
+    assert "Category: global_cat" in system_prompt
+    assert "Global test memory" in system_prompt
+    assert "[tags: tag1 tag2]" in system_prompt
+
+    assert "Local memories:" in system_prompt
+    assert "Category: local_cat" in system_prompt
+    assert "Local test memory" in system_prompt
+    assert "[tags: tag3]" in system_prompt
+
+
+def test_system_prompt_empty_memories(memory_toolkit):
+    """Test that the system prompt handles no existing memories gracefully"""
+    system_prompt = memory_toolkit.system()
+
+    # Check that the base prompt is included
+    assert "I have access to a memory system" in system_prompt
+
+    # Check that empty memory state is handled
+    assert "No existing memories found" in system_prompt