diff --git a/backend/migrate_project_custom_departments.py b/backend/migrate_project_custom_departments.py
new file mode 100644
index 0000000..b470930
--- /dev/null
+++ b/backend/migrate_project_custom_departments.py
@@ -0,0 +1,111 @@
+#!/usr/bin/env python3
+"""
+Migration script to add the custom_departments column to the projects table.
+
+Usage:
+    python migrate_project_custom_departments.py
+"""
+
+import sqlite3
+import sys
+from pathlib import Path
+
+
+def get_database_path():
+    """Get the database path, trying multiple possible locations."""
+    possible_paths = [
+        "vfx_project_management.db",  # Primary database
+        "database.db",
+        "../vfx_project_management.db"
+    ]
+
+    for path in possible_paths:
+        if Path(path).exists():
+            return path
+
+    return "vfx_project_management.db"
+
+
+def check_column_exists(cursor, table_name, column_name):
+    """Check if a column exists in a table."""
+    cursor.execute(f"PRAGMA table_info({table_name})")
+    columns = [column[1] for column in cursor.fetchall()]
+    return column_name in columns
+
+
+def migrate_database():
+    """Add custom_departments column to the projects table."""
+    db_path = get_database_path()
+    print(f"Using database: {db_path}")
+
+    conn = None
+    try:
+        conn = sqlite3.connect(db_path)
+        cursor = conn.cursor()
+
+        cursor.execute("SELECT name FROM sqlite_master WHERE type='table' AND name='projects'")
+        if not cursor.fetchone():
+            print("Projects table not found. Creating new database schema...")
+            conn.close()
+            return
+
+        if check_column_exists(cursor, "projects", "custom_departments"):
+            print("Column custom_departments already exists, skipping...")
+        else:
+            print("Adding column: custom_departments")
+            cursor.execute("ALTER TABLE projects ADD COLUMN custom_departments TEXT")
+            cursor.execute("UPDATE projects SET custom_departments = '[]' WHERE custom_departments IS NULL")
+
+        # project_members.department_role was previously backed by SQLAlchemy's
+        # Enum(DepartmentRole) type, which stores the enum MEMBER NAME (e.g. "LAYOUT"),
+        # not its value ("layout"). The old Optional[DepartmentRole] schema silently
+        # normalized this back to lowercase on read. Now that the column is a plain
+        # string, normalize any existing uppercase values so they match the standard
+        # department strings used everywhere else.
+        cursor.execute("SELECT name FROM sqlite_master WHERE type='table' AND name='project_members'")
+        if cursor.fetchone():
+            department_name_to_value = {
+                'LAYOUT': 'layout',
+                'ANIMATION': 'animation',
+                'LIGHTING': 'lighting',
+                'COMPOSITE': 'composite',
+                'MODELING': 'modeling',
+                'RIGGING': 'rigging',
+                'SURFACING': 'surfacing',
+            }
+            for old_value, new_value in department_name_to_value.items():
+                cursor.execute(
+                    "UPDATE project_members SET department_role = ? WHERE department_role = ?",
+                    (new_value, old_value)
+                )
+                if cursor.rowcount > 0:
+                    print(f"Normalized {cursor.rowcount} project members from '{old_value}' to '{new_value}'")
+
+        conn.commit()
+
+        cursor.execute("SELECT COUNT(*) FROM projects")
+        project_count = cursor.fetchone()[0]
+        print(f"Migration completed successfully! {project_count} projects unaffected (column defaults to '[]').")
+
+    except sqlite3.Error as e:
+        print(f"Database error: {e}")
+        if conn:
+            conn.rollback()
+        sys.exit(1)
+    except Exception as e:
+        print(f"Unexpected error: {e}")
+        if conn:
+            conn.rollback()
+        sys.exit(1)
+    finally:
+        if conn:
+            conn.close()
+
+
+if __name__ == "__main__":
+    print("VFX Project Management - Project Custom Departments Migration")
+    print("=" * 60)
+
+    migrate_database()
+
+    print("\nMigration completed successfully!")
diff --git a/backend/migrate_task_department.py b/backend/migrate_task_department.py
new file mode 100644
index 0000000..fd1a74a
--- /dev/null
+++ b/backend/migrate_task_department.py
@@ -0,0 +1,85 @@
+#!/usr/bin/env python3
+"""
+Migration script to add the department column to the tasks table.
+
+Usage:
+    python migrate_task_department.py
+"""
+
+import sqlite3
+import sys
+from pathlib import Path
+
+
+def get_database_path():
+    """Get the database path, trying multiple possible locations."""
+    possible_paths = [
+        "vfx_project_management.db",  # Primary database
+        "database.db",
+        "../vfx_project_management.db"
+    ]
+
+    for path in possible_paths:
+        if Path(path).exists():
+            return path
+
+    return "vfx_project_management.db"
+
+
+def check_column_exists(cursor, table_name, column_name):
+    """Check if a column exists in a table."""
+    cursor.execute(f"PRAGMA table_info({table_name})")
+    columns = [column[1] for column in cursor.fetchall()]
+    return column_name in columns
+
+
+def migrate_database():
+    """Add department column to the tasks table."""
+    db_path = get_database_path()
+    print(f"Using database: {db_path}")
+
+    conn = None
+    try:
+        conn = sqlite3.connect(db_path)
+        cursor = conn.cursor()
+
+        cursor.execute("SELECT name FROM sqlite_master WHERE type='table' AND name='tasks'")
+        if not cursor.fetchone():
+            print("Tasks table not found. Creating new database schema...")
+            conn.close()
+            return
+
+        if check_column_exists(cursor, "tasks", "department"):
+            print("Column department already exists, skipping...")
+        else:
+            print("Adding column: department")
+            cursor.execute("ALTER TABLE tasks ADD COLUMN department VARCHAR")
+
+        conn.commit()
+
+        cursor.execute("SELECT COUNT(*) FROM tasks")
+        task_count = cursor.fetchone()[0]
+        print(f"Migration completed successfully! {task_count} tasks unaffected (column defaults to NULL).")
+
+    except sqlite3.Error as e:
+        print(f"Database error: {e}")
+        if conn:
+            conn.rollback()
+        sys.exit(1)
+    except Exception as e:
+        print(f"Unexpected error: {e}")
+        if conn:
+            conn.rollback()
+        sys.exit(1)
+    finally:
+        if conn:
+            conn.close()
+
+
+if __name__ == "__main__":
+    print("VFX Project Management - Task Department Migration")
+    print("=" * 60)
+
+    migrate_database()
+
+    print("\nMigration completed successfully!")
diff --git a/backend/models/__init__.py b/backend/models/__init__.py
index 2881687..992c300 100644
--- a/backend/models/__init__.py
+++ b/backend/models/__init__.py
@@ -1,5 +1,5 @@
 # Models package
-from .user import User, UserRole, DepartmentRole
+from .user import User, UserRole
 from .project import Project, ProjectMember, ProjectStatus
 from .episode import Episode, EpisodeStatus
 from .asset import Asset, AssetCategory, AssetStatus
@@ -17,7 +17,7 @@ from .role import Role, Permission, role_permissions, user_roles
 
 __all__ = [
     # User models
-    "User", "UserRole", "DepartmentRole",
+    "User", "UserRole",
     # Project models
     "Project", "ProjectMember", "ProjectStatus",
     # Episode models
diff --git a/backend/models/project.py b/backend/models/project.py
index b302ceb..9fa3a8b 100644
--- a/backend/models/project.py
+++ b/backend/models/project.py
@@ -2,7 +2,6 @@ from sqlalchemy import Column, Integer, String, DateTime, Date, Enum, ForeignKey
 from sqlalchemy.orm import relationship
 from sqlalchemy.sql import func
 from database import Base
-from .user import DepartmentRole
 import enum
 
 
@@ -54,6 +53,9 @@ class Project(Base):
     # Custom task statuses
     custom_task_statuses = Column(JSON, nullable=True)  # Custom task statuses for project
 
+    # Custom departments
+    custom_departments = Column(JSON, nullable=True)  # Custom departments for project (in addition to standard ones)
+
     # Submission configuration per task type
     submission_config_by_task_type = Column(JSON, nullable=True)  # Allowed file types, naming pattern, required flag per task type
 
@@ -80,7 +82,7 @@ class ProjectMember(Base):
     id = Column(Integer, primary_key=True, index=True)
     user_id = Column(Integer, ForeignKey("users.id"), nullable=False)
     project_id = Column(Integer, ForeignKey("projects.id"), nullable=False)
-    department_role = Column(Enum(DepartmentRole), nullable=True)
+    department_role = Column(String, nullable=True)  # Free-form: standard department or a project's custom department
     joined_at = Column(DateTime(timezone=True), server_default=func.now())
 
     # Relationships
diff --git a/backend/models/task.py b/backend/models/task.py
index 4903bff..54dbfb2 100644
--- a/backend/models/task.py
+++ b/backend/models/task.py
@@ -56,6 +56,7 @@ class Task(Base):
     name = Column(String, nullable=False, index=True)
     description = Column(Text)
     status = Column(String, nullable=False, default="not_started")  # Changed from Enum to String to support custom statuses
+    department = Column(String, nullable=True)  # Standard or project-custom department, independent of assignee
     start_date = Column(Date)
     deadline = Column(Date)
     created_at = Column(DateTime(timezone=True), server_default=func.now())
diff --git a/backend/models/user.py b/backend/models/user.py
index 0fd1292..02bd5b5 100644
--- a/backend/models/user.py
+++ b/backend/models/user.py
@@ -12,16 +12,6 @@ class UserRole(str, enum.Enum):
     DEVELOPER = "developer"
 
 
-class DepartmentRole(str, enum.Enum):
-    LAYOUT = "layout"
-    ANIMATION = "animation"
-    LIGHTING = "lighting"
-    COMPOSITE = "composite"
-    MODELING = "modeling"
-    RIGGING = "rigging"
-    SURFACING = "surfacing"
-
-
 class User(Base):
     __tablename__ = "users"
 
diff --git a/backend/routers/projects.py b/backend/routers/projects.py
index e448a25..38cc05e 100644
--- a/backend/routers/projects.py
+++ b/backend/routers/projects.py
@@ -1078,6 +1078,264 @@ async def delete_custom_task_type(
     return _build_all_task_types_response(db_project)
 
 
+# Department Management Endpoints
+
+# Standard departments (read-only)
+STANDARD_DEPARTMENTS = ["layout", "animation", "lighting", "composite", "modeling", "rigging", "surfacing"]
+
+
+def _build_all_departments_response(db_project: Project):
+    """Helper function to build AllDepartmentsResponse"""
+    from schemas.department import AllDepartmentsResponse
+
+    custom_departments = db_project.custom_departments or []
+    all_departments = STANDARD_DEPARTMENTS + custom_departments
+
+    return AllDepartmentsResponse(
+        departments=all_departments,
+        standard_departments=STANDARD_DEPARTMENTS,
+        custom_departments=custom_departments
+    )
+
+
+@router.get("/{project_id}/departments")
+async def get_all_departments(
+    project_id: int,
+    db: Session = Depends(get_db),
+    current_user: User = Depends(get_current_user_with_db)
+):
+    """Get all departments (standard + custom) for a project"""
+    db_project = db.query(Project).filter(Project.id == project_id).first()
+
+    if not db_project:
+        raise HTTPException(
+            status_code=status.HTTP_404_NOT_FOUND,
+            detail="Project not found"
+        )
+
+    return _build_all_departments_response(db_project)
+
+
+@router.post("/{project_id}/departments", status_code=status.HTTP_201_CREATED)
+async def add_department(
+    project_id: int,
+    department_data: dict,
+    db: Session = Depends(get_db),
+    current_user: User = Depends(require_coordinator_or_admin)
+):
+    """Add a new custom department to a project"""
+    from schemas.department import CustomDepartmentCreate
+
+    try:
+        department_create = CustomDepartmentCreate(**department_data)
+    except Exception as e:
+        raise HTTPException(
+            status_code=status.HTTP_422_UNPROCESSABLE_ENTITY,
+            detail=str(e)
+        )
+
+    db_project = db.query(Project).filter(Project.id == project_id).first()
+
+    if not db_project:
+        raise HTTPException(
+            status_code=status.HTTP_404_NOT_FOUND,
+            detail="Project not found"
+        )
+
+    custom_departments = db_project.custom_departments or []
+
+    if department_create.department in STANDARD_DEPARTMENTS:
+        raise HTTPException(
+            status_code=status.HTTP_409_CONFLICT,
+            detail=f"Department '{department_create.department}' is a standard department and cannot be added as custom"
+        )
+
+    if department_create.department in custom_departments:
+        raise HTTPException(
+            status_code=status.HTTP_409_CONFLICT,
+            detail=f"Department '{department_create.department}' already exists"
+        )
+
+    custom_departments.append(department_create.department)
+
+    db_project.custom_departments = custom_departments
+    flag_modified(db_project, 'custom_departments')
+
+    try:
+        db.commit()
+        db.refresh(db_project)
+    except Exception as e:
+        db.rollback()
+        raise HTTPException(
+            status_code=status.HTTP_500_INTERNAL_SERVER_ERROR,
+            detail="Failed to add department"
+        )
+
+    return _build_all_departments_response(db_project)
+
+
+@router.put("/{project_id}/departments/{department}")
+async def update_department(
+    project_id: int,
+    department: str,
+    update_data: dict,
+    db: Session = Depends(get_db),
+    current_user: User = Depends(require_coordinator_or_admin)
+):
+    """Update a custom department name, cascading the rename to members and tasks using it"""
+    from schemas.department import CustomDepartmentUpdate
+    from models.task import Task
+
+    try:
+        department_update = CustomDepartmentUpdate(**update_data)
+    except Exception as e:
+        raise HTTPException(
+            status_code=status.HTTP_422_UNPROCESSABLE_ENTITY,
+            detail=str(e)
+        )
+
+    if department != department_update.old_name:
+        raise HTTPException(
+            status_code=status.HTTP_400_BAD_REQUEST,
+            detail="Department in URL does not match old_name in request body"
+        )
+
+    db_project = db.query(Project).filter(Project.id == project_id).first()
+
+    if not db_project:
+        raise HTTPException(
+            status_code=status.HTTP_404_NOT_FOUND,
+            detail="Project not found"
+        )
+
+    custom_departments = db_project.custom_departments or []
+
+    if department_update.old_name not in custom_departments:
+        raise HTTPException(
+            status_code=status.HTTP_404_NOT_FOUND,
+            detail=f"Custom department '{department_update.old_name}' not found"
+        )
+
+    if department_update.new_name in STANDARD_DEPARTMENTS:
+        raise HTTPException(
+            status_code=status.HTTP_409_CONFLICT,
+            detail=f"Department '{department_update.new_name}' is a standard department"
+        )
+
+    if department_update.new_name in custom_departments and department_update.new_name != department_update.old_name:
+        raise HTTPException(
+            status_code=status.HTTP_409_CONFLICT,
+            detail=f"Department '{department_update.new_name}' already exists"
+        )
+
+    custom_departments = [
+        department_update.new_name if d == department_update.old_name else d
+        for d in custom_departments
+    ]
+
+    db_project.custom_departments = custom_departments
+    flag_modified(db_project, 'custom_departments')
+
+    # Cascade rename to project members using this department
+    members_to_update = db.query(ProjectMember).filter(
+        ProjectMember.project_id == project_id,
+        ProjectMember.department_role == department_update.old_name
+    ).all()
+    for member in members_to_update:
+        member.department_role = department_update.new_name
+
+    # Cascade rename to tasks using this department
+    tasks_to_update = db.query(Task).filter(
+        Task.project_id == project_id,
+        Task.department == department_update.old_name
+    ).all()
+    for task in tasks_to_update:
+        task.department = department_update.new_name
+
+    try:
+        db.commit()
+        db.refresh(db_project)
+    except Exception as e:
+        db.rollback()
+        raise HTTPException(
+            status_code=status.HTTP_500_INTERNAL_SERVER_ERROR,
+            detail="Failed to update department"
+        )
+
+    return _build_all_departments_response(db_project)
+
+
+@router.delete("/{project_id}/departments/{department}")
+async def delete_department(
+    project_id: int,
+    department: str,
+    db: Session = Depends(get_db),
+    current_user: User = Depends(require_coordinator_or_admin)
+):
+    """Delete a custom department (blocked if any member or task is currently using it)"""
+    from models.task import Task
+
+    if department in STANDARD_DEPARTMENTS:
+        raise HTTPException(
+            status_code=status.HTTP_400_BAD_REQUEST,
+            detail="Standard departments cannot be deleted"
+        )
+
+    db_project = db.query(Project).filter(Project.id == project_id).first()
+
+    if not db_project:
+        raise HTTPException(
+            status_code=status.HTTP_404_NOT_FOUND,
+            detail="Project not found"
+        )
+
+    custom_departments = db_project.custom_departments or []
+
+    if department not in custom_departments:
+        raise HTTPException(
+            status_code=status.HTTP_404_NOT_FOUND,
+            detail=f"Custom department '{department}' not found"
+        )
+
+    members_using_department = db.query(ProjectMember).filter(
+        ProjectMember.project_id == project_id,
+        ProjectMember.department_role == department
+    ).all()
+
+    tasks_using_department = db.query(Task).filter(
+        Task.project_id == project_id,
+        Task.department == department
+    ).all()
+
+    if members_using_department or tasks_using_department:
+        raise HTTPException(
+            status_code=status.HTTP_422_UNPROCESSABLE_ENTITY,
+            detail={
+                "error": f"Cannot delete department '{department}' because it is currently in use",
+                "department": department,
+                "member_count": len(members_using_department),
+                "task_count": len(tasks_using_department)
+            }
+        )
+
+    custom_departments.remove(department)
+
+    db_project.custom_departments = custom_departments
+    flag_modified(db_project, 'custom_departments')
+
+    try:
+        db.commit()
+        db.refresh(db_project)
+    except Exception as e:
+        db.rollback()
+        raise HTTPException(
+            status_code=status.HTTP_500_INTERNAL_SERVER_ERROR,
+            detail="Failed to delete department"
+        )
+
+    return _build_all_departments_response(db_project)
+
+
 # Submission Configuration Endpoints
 
 @router.get("/{project_id}/submission-config", response_model=ProjectSubmissionConfig)
diff --git a/backend/routers/tasks.py b/backend/routers/tasks.py
index 42ee6df..20b1d95 100644
--- a/backend/routers/tasks.py
+++ b/backend/routers/tasks.py
@@ -9,7 +9,7 @@ from datetime import datetime
 
 from database import get_db
 from models.task import Task, ProductionNote, TaskAttachment, Submission, Review, NoteType
-from models.user import User, UserRole, DepartmentRole
+from models.user import User, UserRole
 from models.project import Project, ProjectMember
 from models.asset import Asset
 from models.shot import Shot
@@ -248,6 +248,7 @@ async def get_tasks(
                 "name": task.name,
                 "task_type": task.task_type,
                 "status": task.status,
+                "department": task.department,
                 "start_date": task.start_date,
                 "deadline": task.deadline,
                 "project_id": task.project_id,
@@ -330,6 +331,7 @@ async def get_my_tasks(
                 name=task.name,
                 task_type=task.task_type,
                 status=task.status,
+                department=task.department,
                 start_date=task.start_date,
                 deadline=task.deadline,
                 project_id=task.project_id,
@@ -740,6 +742,7 @@ async def get_task(
         "description": task.description,
         "task_type": task.task_type,
         "status": task.status,
+        "department": task.department,
         "start_date": task.start_date,
         "deadline": task.deadline,
         "project_id": task.project_id,
@@ -866,6 +869,7 @@ async def update_task(
         "description": task.description,
         "task_type": task.task_type,
         "status": task.status,
+        "department": task.department,
         "start_date": task.start_date,
         "deadline": task.deadline,
         "project_id": task.project_id,
@@ -958,6 +962,7 @@ async def update_task_status(
         "description": task.description,
         "task_type": task.task_type,
         "status": task.status,
+        "department": task.department,
         "start_date": task.start_date,
         "deadline": task.deadline,
         "project_id": task.project_id,
@@ -1024,13 +1029,13 @@ async def assign_task(
     
     # Check if user's department role matches task type (optional validation)
     task_to_department_mapping = {
-        "layout": DepartmentRole.LAYOUT,
-        "animation": DepartmentRole.ANIMATION,
-        "lighting": DepartmentRole.LIGHTING,
-        "compositing": DepartmentRole.COMPOSITE,
-        "modeling": DepartmentRole.MODELING,
-        "rigging": DepartmentRole.RIGGING,
-        "surfacing": DepartmentRole.SURFACING,
+        "layout": "layout",
+        "animation": "animation",
+        "lighting": "lighting",
+        "compositing": "composite",
+        "modeling": "modeling",
+        "rigging": "rigging",
+        "surfacing": "surfacing",
         "simulation": None  # Simulation can be handled by multiple departments
     }
     
@@ -1064,6 +1069,7 @@ async def assign_task(
         "description": task.description,
         "task_type": task.task_type,
         "status": task.status,
+        "department": task.department,
         "start_date": task.start_date,
         "deadline": task.deadline,
         "project_id": task.project_id,
diff --git a/backend/schemas/department.py b/backend/schemas/department.py
new file mode 100644
index 0000000..46fd6d2
--- /dev/null
+++ b/backend/schemas/department.py
@@ -0,0 +1,50 @@
+"""
+Pydantic schemas for department management
+"""
+from pydantic import BaseModel, Field, validator
+from typing import List
+import re
+
+
+class CustomDepartmentCreate(BaseModel):
+    """Schema for creating a new custom department"""
+    department: str = Field(..., min_length=2, max_length=50, description="Department name")
+
+    @validator('department')
+    def validate_department_name(cls, v):
+        """Validate department name format"""
+        if not re.match(r'^[a-z0-9_]{2,50}$', v):
+            raise ValueError(
+                'Department name must be 2-50 characters, lowercase alphanumeric with underscores only'
+            )
+        return v
+
+
+class CustomDepartmentUpdate(BaseModel):
+    """Schema for updating a custom department name"""
+    old_name: str = Field(..., description="Current department name")
+    new_name: str = Field(..., min_length=2, max_length=50, description="New department name")
+
+    @validator('new_name')
+    def validate_department_name(cls, v):
+        """Validate department name format"""
+        if not re.match(r'^[a-z0-9_]{2,50}$', v):
+            raise ValueError(
+                'Department name must be 2-50 characters, lowercase alphanumeric with underscores only'
+            )
+        return v
+
+
+class AllDepartmentsResponse(BaseModel):
+    """Schema for response containing all departments (standard + custom)"""
+    departments: List[str] = Field(..., description="All departments")
+    standard_departments: List[str] = Field(..., description="Standard departments (read-only)")
+    custom_departments: List[str] = Field(..., description="Custom departments")
+
+
+class DepartmentInUseError(BaseModel):
+    """Schema for error when trying to delete a department in use"""
+    error: str = Field(..., description="Error message")
+    department: str = Field(..., description="Department that is in use")
+    member_count: int = Field(..., description="Number of project members using this department")
+    task_count: int = Field(..., description="Number of tasks using this department")
diff --git a/backend/schemas/project.py b/backend/schemas/project.py
index 7e13eb5..69756cf 100644
--- a/backend/schemas/project.py
+++ b/backend/schemas/project.py
@@ -5,7 +5,6 @@ from enum import Enum
 import re
 
 from models.project import ProjectStatus, ProjectType
-from models.user import DepartmentRole
 
 
 # Technical Specifications Schemas
@@ -67,16 +66,6 @@ class ProjectTechnicalSpecs(BaseModel):
             raise ValueError('Delivery image resolution must be in format "WIDTHxHEIGHT" (e.g., "1920x1080")')
         return v
 
-    @validator('delivery_movie_specs_by_department')
-    def validate_delivery_movie_specs_by_department(cls, v):
-        if v is None:
-            return {}
-        allowed_departments = ['layout', 'animation', 'lighting', 'composite', 'modeling', 'rigging', 'surfacing']
-        for dept in v.keys():
-            if dept not in allowed_departments:
-                raise ValueError(f'Department must be one of: {", ".join(allowed_departments)}')
-        return v
-
 
 # Default delivery movie specifications per department
 DEFAULT_DELIVERY_MOVIE_SPECS = {
@@ -135,17 +124,6 @@ class ProjectBase(BaseModel):
             raise ValueError('Delivery image resolution must be in format "WIDTHxHEIGHT" (e.g., "1920x1080")')
         return v
 
-    @validator('delivery_movie_specs_by_department')
-    def validate_delivery_movie_specs_by_department(cls, v):
-        if v is None:
-            return {}
-        allowed_departments = ['layout', 'animation', 'lighting', 'composite', 'modeling', 'rigging', 'surfacing']
-        for dept in v.keys():
-            if dept not in allowed_departments:
-                raise ValueError(f'Department must be one of: {", ".join(allowed_departments)}')
-        return v
-
-
 class ProjectCreate(ProjectBase):
     pass
 
@@ -178,20 +156,9 @@ class ProjectUpdate(BaseModel):
             raise ValueError('Delivery image resolution must be in format "WIDTHxHEIGHT" (e.g., "1920x1080")')
         return v
 
-    @validator('delivery_movie_specs_by_department')
-    def validate_delivery_movie_specs_by_department(cls, v):
-        if v is None:
-            return v
-        allowed_departments = ['layout', 'animation', 'lighting', 'composite', 'modeling', 'rigging', 'surfacing']
-        for dept in v.keys():
-            if dept not in allowed_departments:
-                raise ValueError(f'Department must be one of: {", ".join(allowed_departments)}')
-        return v
-
-
 class ProjectMemberBase(BaseModel):
     user_id: int
-    department_role: Optional[DepartmentRole] = None
+    department_role: Optional[str] = None
 
 
 class ProjectMemberCreate(ProjectMemberBase):
@@ -199,7 +166,7 @@ class ProjectMemberCreate(ProjectMemberBase):
 
 
 class ProjectMemberUpdate(BaseModel):
-    department_role: Optional[DepartmentRole] = None
+    department_role: Optional[str] = None
 
 
 class ProjectMemberResponse(ProjectMemberBase):
diff --git a/backend/schemas/task.py b/backend/schemas/task.py
index 54bab00..ce4c3c9 100644
--- a/backend/schemas/task.py
+++ b/backend/schemas/task.py
@@ -4,7 +4,6 @@ from datetime import date, datetime
 from enum import Enum
 
 from models.task import TaskType, TaskStatus, ReviewDecision, AttachmentType, NoteType
-from models.user import DepartmentRole
 
 
 class TaskBase(BaseModel):
@@ -14,6 +13,7 @@ class TaskBase(BaseModel):
     start_date: Optional[date] = None
     deadline: Optional[date] = None
     status: str = "not_started"  # Changed from TaskStatus enum to str to support custom statuses
+    department: Optional[str] = None  # Standard or project-custom department, independent of assignee
 
 
 class TaskCreate(TaskBase):
@@ -31,6 +31,7 @@ class TaskUpdate(BaseModel):
     start_date: Optional[date] = None
     deadline: Optional[date] = None
     status: Optional[str] = None  # Changed from TaskStatus enum to str to support custom statuses
+    department: Optional[str] = None  # Standard or project-custom department, independent of assignee
     assigned_user_id: Optional[int] = None
 
 
@@ -70,6 +71,7 @@ class TaskListResponse(BaseModel):
     name: str
     task_type: str  # Changed from TaskType enum to str to support custom task types
     status: str  # Changed from TaskStatus enum to str to support custom statuses
+    department: Optional[str] = None  # Standard or project-custom department, independent of assignee
     start_date: Optional[date] = None
     deadline: Optional[date] = None
     project_id: int
diff --git a/frontend/src/components/project/DepartmentSpecsPanel.vue b/frontend/src/components/project/DepartmentSpecsPanel.vue
index 4605a57..f33dcae 100644
--- a/frontend/src/components/project/DepartmentSpecsPanel.vue
+++ b/frontend/src/components/project/DepartmentSpecsPanel.vue
@@ -104,7 +104,7 @@
 import { computed } from 'vue'
 import { 
   Monitor, FileVideo, Settings, Star, Clock, Image, Copy, FolderOpen, AlertCircle,
-  Palette, Zap, Lightbulb, Layers, Box, Wrench, Paintbrush
+  Palette, Zap, Lightbulb, Layers, Box, Wrench, Paintbrush, Tag
 } from 'lucide-vue-next'
 import { Button } from '@/components/ui/button'
 import { Label } from '@/components/ui/label'
@@ -144,7 +144,8 @@ const getDepartmentIcon = (department: string) => {
     rigging: Wrench,
     surfacing: Paintbrush
   }
-  return icons[department] || Box
+  // Fallback for project-custom departments not in the standard icon map above
+  return icons[department] || Tag
 }
 
 const getFrameRateLabel = (frameRate: number) => {
diff --git a/frontend/src/components/project/ProjectMemberManagement.vue b/frontend/src/components/project/ProjectMemberManagement.vue
index f89fbfb..8fa44b6 100644
--- a/frontend/src/components/project/ProjectMemberManagement.vue
+++ b/frontend/src/components/project/ProjectMemberManagement.vue
@@ -235,6 +235,7 @@ import { useAvatarUrl } from '@/composables/useAvatarUrl'
 import { useToast } from '@/components/ui/toast/use-toast'
 import { projectService, type ProjectMember } from '@/services/project'
 import { userService } from '@/services/user'
+import { useDepartmentsStore } from '@/stores/departments'
 import type { User } from '@/types/auth'
 
 interface Props {
@@ -248,16 +249,14 @@ const emit = defineEmits<{
 
 const { toast } = useToast()
 const { getAvatarUrl } = useAvatarUrl()
+const departmentsStore = useDepartmentsStore()
 
-const departmentRoles = [
-  { value: 'layout', label: 'Layout' },
-  { value: 'animation', label: 'Animation' },
-  { value: 'lighting', label: 'Lighting' },
-  { value: 'composite', label: 'Composite' },
-  { value: 'modeling', label: 'Modeling' },
-  { value: 'rigging', label: 'Rigging' },
-  { value: 'surfacing', label: 'Surfacing' },
-]
+const departmentRoles = computed(() => {
+  return departmentsStore.getAllDepartmentOptions(props.projectId).map(department => ({
+    value: department,
+    label: department.replace(/_/g, ' ').replace(/^\w/, c => c.toUpperCase())
+  }))
+})
 
 // State
 const members = ref<ProjectMember[]>([])
@@ -425,5 +424,6 @@ const closeAddDialog = () => {
 // Lifecycle
 onMounted(() => {
   loadMembers()
+  departmentsStore.fetchProjectDepartments(props.projectId)
 })
 </script>
diff --git a/frontend/src/components/settings/DepartmentManager.vue b/frontend/src/components/settings/DepartmentManager.vue
new file mode 100644
index 0000000..0e91912
--- /dev/null
+++ b/frontend/src/components/settings/DepartmentManager.vue
@@ -0,0 +1,410 @@
+<template>
+  <div class="space-y-6">
+    <!-- Header -->
+    <div>
+      <h3 class="text-lg font-semibold">Departments</h3>
+      <p class="text-sm text-muted-foreground mt-1">
+        Add custom departments beyond the standard ones. Departments are used on tasks and team member assignments.
+      </p>
+    </div>
+
+    <!-- Loading State -->
+    <div v-if="isLoading" class="flex items-center justify-center py-8">
+      <div class="animate-spin rounded-full h-8 w-8 border-b-2 border-primary"></div>
+    </div>
+
+    <!-- Content -->
+    <div v-else class="space-y-4">
+      <div class="flex items-center justify-between">
+        <div class="flex items-center gap-2">
+          <Users class="h-5 w-5 text-muted-foreground" />
+          <h4 class="font-semibold">All Departments</h4>
+        </div>
+        <Button size="sm" @click="openAddDialog">
+          <Plus class="h-4 w-4 mr-2" />
+          Add Department
+        </Button>
+      </div>
+
+      <div class="border rounded-lg divide-y">
+        <template v-if="allDepartments.length > 0">
+          <div
+            v-for="department in allDepartments"
+            :key="department"
+            class="flex items-center justify-between p-3 hover:bg-muted/50 transition-colors"
+          >
+            <div class="flex items-center gap-3">
+              <span class="font-medium capitalize">{{ formatDepartmentName(department) }}</span>
+              <Badge v-if="isStandardDepartment(department)" variant="secondary">
+                Standard
+              </Badge>
+              <Badge v-else variant="outline">
+                Custom
+              </Badge>
+            </div>
+            <div v-if="!isStandardDepartment(department)" class="flex items-center gap-2">
+              <Button
+                size="sm"
+                variant="ghost"
+                @click="openEditDialog(department)"
+              >
+                <Pencil class="h-4 w-4" />
+              </Button>
+              <Button
+                size="sm"
+                variant="ghost"
+                @click="handleDelete(department)"
+              >
+                <Trash2 class="h-4 w-4 text-destructive" />
+              </Button>
+            </div>
+          </div>
+        </template>
+        <div v-else class="p-4 text-center text-sm text-muted-foreground">
+          No departments defined
+        </div>
+      </div>
+    </div>
+
+    <!-- Add/Edit Dialog -->
+    <Dialog :open="isDialogOpen" @update:open="closeDialog">
+      <DialogContent>
+        <DialogHeader>
+          <DialogTitle>
+            {{ dialogMode === 'add' ? 'Add' : 'Edit' }} Department
+          </DialogTitle>
+          <DialogDescription>
+            {{ dialogMode === 'add'
+              ? 'Enter a name for the new department. Use lowercase letters, numbers, and underscores only.'
+              : 'Update the department name. This will update all team members and tasks using this department.'
+            }}
+          </DialogDescription>
+        </DialogHeader>
+
+        <div class="space-y-4 py-4">
+          <div class="space-y-2">
+            <Label for="departmentName">Department Name</Label>
+            <Input
+              id="departmentName"
+              v-model="departmentName"
+              placeholder="e.g., fx, previz, matchmove"
+              :class="{ 'border-destructive': validationError }"
+              @input="validateDepartmentName"
+            />
+            <p v-if="validationError" class="text-sm text-destructive">
+              {{ validationError }}
+            </p>
+            <p v-else class="text-sm text-muted-foreground">
+              2-50 characters, lowercase alphanumeric with underscores only
+            </p>
+          </div>
+        </div>
+
+        <DialogFooter>
+          <Button variant="outline" @click="closeDialog">
+            Cancel
+          </Button>
+          <Button @click="handleDialogSave" :disabled="!isDepartmentNameValid || isSaving">
+            <div v-if="isSaving" class="animate-spin rounded-full h-4 w-4 border-b-2 border-white mr-2"></div>
+            {{ dialogMode === 'add' ? 'Add' : 'Update' }}
+          </Button>
+        </DialogFooter>
+      </DialogContent>
+    </Dialog>
+
+    <!-- Delete Confirmation Dialog -->
+    <AlertDialog
+      :open="isDeleteDialogOpen"
+      @update:open="(open) => {
+        isDeleteDialogOpen = open
+        if (!open && !isDeleting) {
+          departmentToDelete = ''
+          deleteError = ''
+        }
+      }"
+    >
+      <AlertDialogContent>
+        <AlertDialogHeader>
+          <AlertDialogTitle>Delete Department</AlertDialogTitle>
+          <AlertDialogDescription>
+            Are you sure you want to delete the department "{{ departmentToDelete }}"?
+            <span v-if="deleteError" class="block mt-2 text-destructive font-medium">
+              {{ deleteError }}
+            </span>
+          </AlertDialogDescription>
+        </AlertDialogHeader>
+        <AlertDialogFooter>
+          <AlertDialogCancel>Cancel</AlertDialogCancel>
+          <Button
+            @click="confirmDelete"
+            :disabled="isDeleting"
+            class="bg-destructive hover:bg-destructive/90"
+          >
+            <div v-if="isDeleting" class="animate-spin rounded-full h-4 w-4 border-b-2 border-white mr-2"></div>
+            Delete
+          </Button>
+        </AlertDialogFooter>
+      </AlertDialogContent>
+    </AlertDialog>
+  </div>
+</template>
+
+<script setup lang="ts">
+import { ref, computed, onMounted } from 'vue'
+import { Users, Plus, Pencil, Trash2 } from 'lucide-vue-next'
+import { Button } from '@/components/ui/button'
+import { Badge } from '@/components/ui/badge'
+import { Input } from '@/components/ui/input'
+import { Label } from '@/components/ui/label'
+import {
+  Dialog,
+  DialogContent,
+  DialogDescription,
+  DialogFooter,
+  DialogHeader,
+  DialogTitle,
+} from '@/components/ui/dialog'
+import {
+  AlertDialog,
+  AlertDialogCancel,
+  AlertDialogContent,
+  AlertDialogDescription,
+  AlertDialogFooter,
+  AlertDialogHeader,
+  AlertDialogTitle,
+} from '@/components/ui/alert-dialog'
+import { useDepartmentsStore } from '@/stores/departments'
+import { departmentService } from '@/services/department'
+import { useToast } from '@/components/ui/toast/use-toast'
+
+interface Props {
+  projectId: number
+}
+
+const props = defineProps<Props>()
+
+const emit = defineEmits<{
+  updated: []
+}>()
+
+const { toast } = useToast()
+const departmentsStore = useDepartmentsStore()
+
+// State
+const isLoading = ref(true)
+
+// Dialog state
+const isDialogOpen = ref(false)
+const dialogMode = ref<'add' | 'edit'>('add')
+const departmentName = ref('')
+const originalDepartmentName = ref('')
+const validationError = ref('')
+const isSaving = ref(false)
+
+// Delete dialog state
+const isDeleteDialogOpen = ref(false)
+const departmentToDelete = ref('')
+const deleteError = ref('')
+const isDeleting = ref(false)
+
+// Computed
+const allDepartments = computed(() => departmentsStore.getAllDepartmentOptions(props.projectId))
+const standardDepartments = computed(() => departmentsStore.getProjectDepartments(props.projectId)?.standard_departments || [])
+
+const isDepartmentNameValid = computed(() => {
+  return departmentName.value.length >= 2 && !validationError.value
+})
+
+// Methods
+const loadDepartments = async () => {
+  try {
+    isLoading.value = true
+    await departmentsStore.fetchProjectDepartments(props.projectId, true)
+  } catch (error: any) {
+    console.error('Failed to load departments:', error)
+    toast({
+      title: 'Error',
+      description: error.response?.data?.detail || 'Failed to load departments',
+      variant: 'destructive'
+    })
+  } finally {
+    isLoading.value = false
+  }
+}
+
+const isStandardDepartment = (department: string): boolean => {
+  return standardDepartments.value.includes(department)
+}
+
+const formatDepartmentName = (department: string): string => {
+  return department.replace(/_/g, ' ')
+}
+
+const validateDepartmentName = () => {
+  const name = departmentName.value.trim()
+
+  if (name.length === 0) {
+    validationError.value = ''
+    return
+  }
+
+  if (name.length < 2) {
+    validationError.value = 'Department name must be at least 2 characters'
+    return
+  }
+
+  if (name.length > 50) {
+    validationError.value = 'Department name must be at most 50 characters'
+    return
+  }
+
+  if (!/^[a-z0-9_]+$/.test(name)) {
+    validationError.value = 'Department name must be lowercase alphanumeric with underscores only'
+    return
+  }
+
+  if (dialogMode.value === 'add' || name !== originalDepartmentName.value) {
+    if (allDepartments.value.includes(name)) {
+      validationError.value = 'A department with this name already exists'
+      return
+    }
+  }
+
+  validationError.value = ''
+}
+
+const openAddDialog = () => {
+  dialogMode.value = 'add'
+  departmentName.value = ''
+  originalDepartmentName.value = ''
+  validationError.value = ''
+  isDialogOpen.value = true
+}
+
+const openEditDialog = (department: string) => {
+  dialogMode.value = 'edit'
+  departmentName.value = department
+  originalDepartmentName.value = department
+  validationError.value = ''
+  isDialogOpen.value = true
+}
+
+const closeDialog = () => {
+  isDialogOpen.value = false
+  departmentName.value = ''
+  originalDepartmentName.value = ''
+  validationError.value = ''
+}
+
+const handleDialogSave = async () => {
+  validateDepartmentName()
+
+  if (!isDepartmentNameValid.value) {
+    return
+  }
+
+  try {
+    isSaving.value = true
+
+    if (dialogMode.value === 'add') {
+      const response = await departmentService.addDepartment(props.projectId, { department: departmentName.value.trim() })
+      departmentsStore.updateProjectDepartments(props.projectId, response)
+
+      toast({
+        title: 'Success',
+        description: `Department "${departmentName.value}" added successfully`
+      })
+    } else {
+      const response = await departmentService.updateDepartment(
+        props.projectId,
+        originalDepartmentName.value,
+        {
+          old_name: originalDepartmentName.value,
+          new_name: departmentName.value.trim()
+        }
+      )
+      departmentsStore.updateProjectDepartments(props.projectId, response)
+
+      toast({
+        title: 'Success',
+        description: `Department updated successfully`
+      })
+    }
+
+    emit('updated')
+    closeDialog()
+  } catch (error: any) {
+    console.error('Failed to save department:', error)
+    const errorMessage = error.response?.data?.detail || 'Failed to save department'
+    validationError.value = errorMessage
+    toast({
+      title: 'Error',
+      description: errorMessage,
+      variant: 'destructive'
+    })
+  } finally {
+    isSaving.value = false
+  }
+}
+
+const handleDelete = (department: string) => {
+  departmentToDelete.value = department
+  deleteError.value = ''
+  isDeleteDialogOpen.value = true
+}
+
+const confirmDelete = async () => {
+  const departmentToDeleteLocal = departmentToDelete.value
+
+  try {
+    isDeleting.value = true
+    deleteError.value = ''
+
+    if (!departmentToDeleteLocal) {
+      deleteError.value = 'Department name is missing. Please try again.'
+      isDeleting.value = false
+      return
+    }
+
+    const response = await departmentService.deleteDepartment(props.projectId, departmentToDeleteLocal)
+    departmentsStore.updateProjectDepartments(props.projectId, response)
+
+    toast({
+      title: 'Success',
+      description: `Department "${departmentToDeleteLocal}" deleted successfully`
+    })
+
+    emit('updated')
+
+    isDeleteDialogOpen.value = false
+    departmentToDelete.value = ''
+    deleteError.value = ''
+  } catch (error: any) {
+    console.error('Failed to delete department:', error)
+    const errorData = error.response?.data
+
+    if (errorData?.detail?.task_count !== undefined || errorData?.detail?.member_count !== undefined) {
+      const { task_count, member_count } = errorData.detail
+      const parts = []
+      if (member_count) parts.push(`${member_count} team member(s)`)
+      if (task_count) parts.push(`${task_count} task(s)`)
+      deleteError.value = `Cannot delete: ${parts.join(' and ')} are using this department`
+    } else {
+      deleteError.value = errorData?.detail || 'Failed to delete department'
+    }
+
+    toast({
+      title: 'Error',
+      description: deleteError.value,
+      variant: 'destructive'
+    })
+  } finally {
+    isDeleting.value = false
+  }
+}
+
+// Lifecycle
+onMounted(() => {
+  loadDepartments()
+})
+</script>
diff --git a/frontend/src/components/task/TaskDetailPanel.vue b/frontend/src/components/task/TaskDetailPanel.vue
index aa6ea1b..d88606f 100644
--- a/frontend/src/components/task/TaskDetailPanel.vue
+++ b/frontend/src/components/task/TaskDetailPanel.vue
@@ -123,7 +123,22 @@
                     <Badge variant="outline">{{ formatTaskType(task.task_type) }}</Badge>
                   </p>
                 </div>
-                <div></div>
+                <div>
+                  <Label class="text-muted-foreground">Department</Label>
+                  <div class="mt-1">
+                    <Select :model-value="localDepartment || 'none'" @update:model-value="(value) => handleDepartmentChange(value === 'none' ? '' : (value as string))">
+                      <SelectTrigger class="h-8">
+                        <SelectValue placeholder="None" />
+                      </SelectTrigger>
+                      <SelectContent>
+                        <SelectItem value="none">None</SelectItem>
+                        <SelectItem v-for="department in departmentOptions" :key="department" :value="department">
+                          {{ formatDepartment(department) }}
+                        </SelectItem>
+                      </SelectContent>
+                    </Select>
+                  </div>
+                </div>
                 <div>
                   <Label class="text-muted-foreground">Start Date</Label>
                   <div class="mt-1">
@@ -341,6 +356,7 @@ import TaskAttachments from './TaskAttachments.vue'
 import TaskSubmissions from './TaskSubmissions.vue'
 import { taskService, type Task, type ProductionNote, type TaskAttachment, type Submission } from '@/services/task'
 import { projectService, type ProjectMember } from '@/services/project'
+import { useDepartmentsStore } from '@/stores/departments'
 import { useAuthStore } from '@/stores/auth'
 import { useToast } from '@/components/ui/toast/use-toast'
 
@@ -358,6 +374,7 @@ const emit = defineEmits<{
 const { toast } = useToast()
 const authStore = useAuthStore()
 const { isCoordinatorOrAdmin } = usePermission()
+const departmentsStore = useDepartmentsStore()
 
 const task = ref<Task | null>(null)
 const loading = ref(false)
@@ -365,6 +382,7 @@ const error = ref<string | null>(null)
 const localStatus = ref('')
 const localStartDate = ref('')
 const localDeadline = ref('')
+const localDepartment = ref('')
 const notes = ref<ProductionNote[]>([])
 const attachments = ref<TaskAttachment[]>([])
 const submissions = ref<Submission[]>([])
@@ -392,6 +410,15 @@ const canSubmitWork = computed(() => {
 
 const canReassign = computed(() => isCoordinatorOrAdmin.value)
 
+const departmentOptions = computed(() => {
+  if (!task.value) return []
+  return departmentsStore.getAllDepartmentOptions(task.value.project_id)
+})
+
+function formatDepartment(department: string): string {
+  return department.replace(/_/g, ' ').replace(/^\w/, c => c.toUpperCase())
+}
+
 async function loadTask() {
   loading.value = true
   error.value = null
@@ -400,6 +427,8 @@ async function loadTask() {
     localStatus.value = task.value.status
     localStartDate.value = task.value.start_date || ''
     localDeadline.value = task.value.deadline || ''
+    localDepartment.value = task.value.department || ''
+    departmentsStore.fetchProjectDepartments(task.value.project_id)
   } catch (err: any) {
     console.error('Error loading task:', err)
     error.value = err.response?.data?.detail || 'Failed to load task'
@@ -483,6 +512,30 @@ async function handleDateChange(field: 'start_date' | 'deadline', value: string)
   }
 }
 
+async function handleDepartmentChange(value: string) {
+  if (!task.value) return
+
+  const previous = task.value.department
+  try {
+    const updated = await taskService.updateTask(props.taskId, { department: value || null } as any)
+    task.value.department = updated.department
+    localDepartment.value = updated.department || ''
+    emit('taskUpdated')
+    toast({
+      title: 'Success',
+      description: 'Task department updated successfully'
+    })
+  } catch (error: any) {
+    console.error('Error updating department:', error)
+    localDepartment.value = previous || ''
+    toast({
+      title: 'Error',
+      description: error.response?.data?.detail || 'Failed to update task department',
+      variant: 'destructive'
+    })
+  }
+}
+
 async function handleQuickAction(action: 'start' | 'submit') {
   if (!task.value) return
   
diff --git a/frontend/src/services/department.ts b/frontend/src/services/department.ts
new file mode 100644
index 0000000..c844cff
--- /dev/null
+++ b/frontend/src/services/department.ts
@@ -0,0 +1,47 @@
+import { apiClient } from './api'
+
+export interface AllDepartmentsResponse {
+  departments: string[]
+  standard_departments: string[]
+  custom_departments: string[]
+}
+
+export interface CustomDepartmentCreate {
+  department: string
+}
+
+export interface CustomDepartmentUpdate {
+  old_name: string
+  new_name: string
+}
+
+export interface DepartmentInUseError {
+  error: string
+  department: string
+  member_count: number
+  task_count: number
+}
+
+export const departmentService = {
+  async getAllDepartments(projectId: number): Promise<AllDepartmentsResponse> {
+    const response = await apiClient.get(`/projects/${projectId}/departments`)
+    return response.data
+  },
+
+  async addDepartment(projectId: number, data: CustomDepartmentCreate): Promise<AllDepartmentsResponse> {
+    const response = await apiClient.post(`/projects/${projectId}/departments`, data)
+    return response.data
+  },
+
+  async updateDepartment(projectId: number, department: string, data: CustomDepartmentUpdate): Promise<AllDepartmentsResponse> {
+    const encodedDepartment = encodeURIComponent(department)
+    const response = await apiClient.put(`/projects/${projectId}/departments/${encodedDepartment}`, data)
+    return response.data
+  },
+
+  async deleteDepartment(projectId: number, department: string): Promise<AllDepartmentsResponse> {
+    const encodedDepartment = encodeURIComponent(department)
+    const response = await apiClient.delete(`/projects/${projectId}/departments/${encodedDepartment}`)
+    return response.data
+  }
+}
diff --git a/frontend/src/services/project.ts b/frontend/src/services/project.ts
index 29bce11..558a209 100644
--- a/frontend/src/services/project.ts
+++ b/frontend/src/services/project.ts
@@ -26,7 +26,7 @@ export interface ProjectMember {
   id: number
   user_id: number
   project_id: number
-  department_role?: 'layout' | 'animation' | 'lighting' | 'composite' | 'modeling' | 'rigging' | 'surfacing'
+  department_role?: string
   joined_at: string
   user_email: string
   user_first_name: string
@@ -58,11 +58,11 @@ export interface ProjectUpdate {
 
 export interface ProjectMemberCreate {
   user_id: number
-  department_role?: 'layout' | 'animation' | 'lighting' | 'composite' | 'modeling' | 'rigging' | 'surfacing'
+  department_role?: string
 }
 
 export interface ProjectMemberUpdate {
-  department_role?: 'layout' | 'animation' | 'lighting' | 'composite' | 'modeling' | 'rigging' | 'surfacing'
+  department_role?: string
 }
 
 export interface DeliveryMovieSpec {
diff --git a/frontend/src/services/task.ts b/frontend/src/services/task.ts
index a6cc86b..f778e30 100644
--- a/frontend/src/services/task.ts
+++ b/frontend/src/services/task.ts
@@ -11,6 +11,7 @@ export interface Task {
   description?: string
   task_type: string
   status: TaskStatus
+  department?: string
   start_date?: string
   deadline?: string
   project_id: number
@@ -34,6 +35,7 @@ export interface TaskListItem {
   name: string
   task_type: string
   status: TaskStatus
+  department?: string
   start_date?: string
   deadline?: string
   project_id: number
diff --git a/frontend/src/stores/departments.ts b/frontend/src/stores/departments.ts
new file mode 100644
index 0000000..7527dbf
--- /dev/null
+++ b/frontend/src/stores/departments.ts
@@ -0,0 +1,138 @@
+import { defineStore } from 'pinia'
+import { ref, computed } from 'vue'
+import { departmentService, type AllDepartmentsResponse } from '@/services/department'
+
+interface ProjectDepartments {
+  projectId: number
+  data: AllDepartmentsResponse
+  lastFetched: number
+}
+
+export const useDepartmentsStore = defineStore('departments', () => {
+  // Cache departments by project ID
+  const projectDepartments = ref<Map<number, ProjectDepartments>>(new Map())
+  const loading = ref<Set<number>>(new Set())
+  const error = ref<string | null>(null)
+
+  // In-flight request de-dup: concurrent callers for the same project share one promise
+  const inFlightRequests = new Map<number, Promise<AllDepartmentsResponse>>()
+
+  // Cache duration: 5 minutes
+  const CACHE_DURATION = 5 * 60 * 1000
+
+  // Get cached departments for a project
+  const getProjectDepartments = computed(() => {
+    return (projectId: number): AllDepartmentsResponse | null => {
+      const cached = projectDepartments.value.get(projectId)
+      if (!cached) return null
+
+      // Check if cache is still valid
+      const now = Date.now()
+      if (now - cached.lastFetched > CACHE_DURATION) {
+        // Cache expired, remove it
+        projectDepartments.value.delete(projectId)
+        return null
+      }
+
+      return cached.data
+    }
+  })
+
+  // Check if departments are currently being loaded for a project
+  const isLoading = computed(() => {
+    return (projectId: number): boolean => {
+      return loading.value.has(projectId)
+    }
+  })
+
+  // Get all department options (standard + custom) for a project
+  const getAllDepartmentOptions = computed(() => {
+    return (projectId: number): string[] => {
+      const departments = getProjectDepartments.value(projectId)
+      if (!departments) return []
+      return departments.departments
+    }
+  })
+
+  // Fetch departments for a project
+  async function fetchProjectDepartments(projectId: number, force = false): Promise<AllDepartmentsResponse> {
+    // Return cached data if available and not forced
+    if (!force) {
+      const cached = getProjectDepartments.value(projectId)
+      if (cached) {
+        return cached
+      }
+    }
+
+    // Share the in-flight request with any concurrent callers instead of re-fetching
+    const existing = inFlightRequests.get(projectId)
+    if (existing) {
+      return existing
+    }
+
+    loading.value.add(projectId)
+    error.value = null
+
+    const request = (async () => {
+      try {
+        const data = await departmentService.getAllDepartments(projectId)
+
+        // Cache the result
+        projectDepartments.value.set(projectId, {
+          projectId,
+          data,
+          lastFetched: Date.now()
+        })
+
+        return data
+      } catch (err: any) {
+        error.value = err.response?.data?.detail || 'Failed to fetch departments'
+        console.error('Error fetching departments:', err)
+        throw err
+      } finally {
+        loading.value.delete(projectId)
+        inFlightRequests.delete(projectId)
+      }
+    })()
+
+    inFlightRequests.set(projectId, request)
+    return request
+  }
+
+  // Invalidate cache for a project (useful after creating/updating/deleting departments)
+  function invalidateProject(projectId: number) {
+    projectDepartments.value.delete(projectId)
+  }
+
+  // Clear all cached data
+  function clearCache() {
+    projectDepartments.value.clear()
+    loading.value.clear()
+    error.value = null
+  }
+
+  // Update cached departments after a change (to avoid refetch)
+  function updateProjectDepartments(projectId: number, data: AllDepartmentsResponse) {
+    projectDepartments.value.set(projectId, {
+      projectId,
+      data,
+      lastFetched: Date.now()
+    })
+  }
+
+  return {
+    // State
+    error,
+
+    // Computed
+    getProjectDepartments,
+    isLoading,
+    getAllDepartmentOptions,
+
+    // Actions
+    fetchProjectDepartments,
+    invalidateProject,
+    clearCache,
+    updateProjectDepartments
+  }
+})
diff --git a/frontend/src/views/ProjectSettingsView.vue b/frontend/src/views/ProjectSettingsView.vue
index 2b8cbeb..63c80dc 100644
--- a/frontend/src/views/ProjectSettingsView.vue
+++ b/frontend/src/views/ProjectSettingsView.vue
@@ -33,7 +33,7 @@
 
       <!-- Tabbed Interface -->
       <Tabs :default-value="activeTab" @update:model-value="(val) => activeTab = String(val)" class="w-full">
-        <TabsList class="grid w-full grid-cols-7">
+        <TabsList class="grid w-full grid-cols-8">
           <TabsTrigger value="general">
             <Settings class="h-4 w-4 mr-2" />
             General
@@ -46,6 +46,10 @@
             <Users class="h-4 w-4 mr-2" />
             Team
           </TabsTrigger>
+          <TabsTrigger value="departments">
+            <Building2 class="h-4 w-4 mr-2" />
+            Departments
+          </TabsTrigger>
           <TabsTrigger value="technical">
             <Cog class="h-4 w-4 mr-2" />
             Technical
@@ -109,6 +113,16 @@
           </div>
         </TabsContent>
 
+        <!-- Department Management Tab -->
+        <TabsContent value="departments" class="mt-6">
+          <div class="bg-card rounded-lg border p-6">
+            <DepartmentManager
+              :project-id="projectId"
+              @updated="handleDepartmentsUpdated"
+            />
+          </div>
+        </TabsContent>
+
         <!-- Technical Specifications Tab -->
         <TabsContent value="technical" class="mt-6">
           <div class="bg-card rounded-lg border p-6">
@@ -188,7 +202,7 @@ import { ref, computed, onMounted } from "vue";
 import { useRoute, useRouter } from "vue-router";
 import {
   AlertCircle, ArrowLeft, Settings, Cog, Users, Film,
-  ListChecks, FolderOpen, UploadCloud
+  ListChecks, FolderOpen, UploadCloud, Building2
 } from "lucide-vue-next";
 import { Button } from "@/components/ui/button";
 import { Separator } from "@/components/ui/separator";
@@ -204,6 +218,7 @@ import ProjectThumbnailUpload from "@/components/project/ProjectThumbnailUpload.
 import EpisodeManagementSection from "@/components/settings/EpisodeManagementSection.vue";
 import CustomTaskStatusManager from "@/components/settings/CustomTaskStatusManager.vue";
 import CustomTaskTypeManager from "@/components/settings/CustomTaskTypeManager.vue";
+import DepartmentManager from "@/components/settings/DepartmentManager.vue";
 import DefaultTaskTemplatesEditor from "@/components/settings/DefaultTaskTemplatesEditor.vue";
 import UploadLocationConfig from "@/components/settings/UploadLocationConfig.vue";
 import SubmissionConfigManager from "@/components/project/SubmissionConfigManager.vue";
@@ -390,6 +405,13 @@ const handleTaskStatusesUpdated = async () => {
   });
 };
 
+const handleDepartmentsUpdated = () => {
+  toast({
+    title: 'Departments updated',
+    description: 'Department changes have been saved successfully.'
+  });
+};
+
 const handleTaskTypesUpdated = async () => {
   // Refresh task types in the task templates editor
   if (taskTemplatesEditorRef.value) {