diff --git a/rails_application/app/controllers/refunds_controller.rb b/rails_application/app/controllers/refunds_controller.rb
new file mode 100644
index 00000000..6eb8a7f0
--- /dev/null
+++ b/rails_application/app/controllers/refunds_controller.rb
@@ -0,0 +1,20 @@
+class RefundsController < ApplicationController
+  def new
+    @order_id = params[:order_uid]
+    @order = Orders::Order.find_by_uid(params[:order_id])
+    @refund = Refunds::Refund.new
+    @order_lines = Orders::OrderLine.where(order_uid: params[:order_id])
+  end
+
+  def create
+
+  end
+
+  def add_item
+
+  end
+
+  def remove_item
+
+  end
+end
diff --git a/rails_application/app/read_models/refunds/configuration.rb b/rails_application/app/read_models/refunds/configuration.rb
new file mode 100644
index 00000000..271a8405
--- /dev/null
+++ b/rails_application/app/read_models/refunds/configuration.rb
@@ -0,0 +1,20 @@
+module Refunds
+  class Refund < ApplicationRecord
+    self.table_name = "refunds"
+
+    has_many :refund_items,
+             class_name: "Refunds::RefundItem",
+             foreign_key: :order_uid,
+             primary_key: :uid
+  end
+
+  class RefundItem < ApplicationRecord
+    self.table_name = "refund_items"
+  end
+
+  class Configuration
+    def call(event_store)
+      @event_store = event_store
+    end
+  end
+end
diff --git a/rails_application/app/views/orders/show.html.erb b/rails_application/app/views/orders/show.html.erb
index cf0ccd3b..979967ca 100644
--- a/rails_application/app/views/orders/show.html.erb
+++ b/rails_application/app/views/orders/show.html.erb
@@ -23,6 +23,10 @@
     <%= button_to("Pay", pay_order_path(@order.uid), class: "mr-3 ml-3 inline-flex items-center px-4 py-2 border rounded-md shadow-sm text-sm font-medium focus:outline-none focus:ring-2 focus:ring-offset-2 focus:ring-blue-500 border-transparent text-white bg-blue-600 hover:bg-blue-700") %>
   <% end %>
 
+  <% if @order.state == "Submitted" %>
+    <%= link_to("Refund", new_order_refund_path(order_id: @order.uid), class: "mr-3 inline-flex items-center px-4 py-2 border rounded-md shadow-sm text-sm font-medium focus:outline-none focus:ring-2 focus:ring-offset-2 focus:ring-blue-50 border-gray-300 text-gray-700 bg-white hover:bg-gray-50") %>
+  <% end %>
+
   <% if (@order.state == "Submitted") %>
     <%= button_to("Cancel Order", cancel_order_path(@order.uid), class: "inline-flex items-center px-4 py-2 border rounded-md shadow-sm text-sm font-medium focus:outline-none focus:ring-2 focus:ring-offset-2 focus:ring-blue-50 border-gray-300 text-gray-700 bg-white hover:bg-gray-50") %>
   <% end %>
diff --git a/rails_application/app/views/refunds/new.html.erb b/rails_application/app/views/refunds/new.html.erb
new file mode 100644
index 00000000..3a2d5b42
--- /dev/null
+++ b/rails_application/app/views/refunds/new.html.erb
@@ -0,0 +1,43 @@
+<% content_for(:header) do %>
+  Refund for Order <%= @order.number %>
+<% end %>
+
+<% content_for(:actions) do %>
+  <%= secondary_action_button do %>
+    <%= link_to 'Back', orders_path %>
+  <% end %>
+
+  <%= primary_form_action_button do %>
+    Submit Refund
+  <% end %>
+<% end %>
+
+<table class="w-full">
+  <thead>
+    <tr class="border-b">
+      <th class="text-left py-2">Product</th>
+      <th class="text-left py-2">Quantity</th>
+      <th class="text-left py-2">Price</th>
+      <th class="text-left py-2" colspan="3">Value</th>
+    </tr>
+  </thead>
+
+  <tbody>
+  <% @order_lines.each do |order_line| %>
+    <tr class="border-b">
+      <td class="py-2"><%= order_line.product_name %></td>
+      <td class="py-2">0 / <%= order_line.quantity %></td>
+      <td class="py-2"><%= number_to_currency(order_line.price) %></td>
+      <td class="py-2"><%= number_to_currency(order_line.value) %></td>
+      <td class="py-2"><%= button_to "Add", "#", class: "hover:underline text-blue-500" %></td>
+      <td class="py-2 text-right"><%= button_to("Remove", "#", class: "hover:underline text-blue-500") %></td>
+    </tr>
+  <% end %>
+  </tbody>
+  <tfoot class="border-t-4">
+    <tr class="border-t">
+      <td class="py-2" colspan="3">Total</td>
+      <td class="py-2 font-bold"></td></td>
+    </tr>
+  </tfoot>
+</table>
diff --git a/rails_application/config/routes.rb b/rails_application/config/routes.rb
index e52f6d35..8dd46f89 100644
--- a/rails_application/config/routes.rb
+++ b/rails_application/config/routes.rb
@@ -17,6 +17,12 @@
     resource :shipping_address, only: [:edit, :update]
     resource :billing_address, only: [:edit, :update]
     resource :invoice, only: [:create]
+    resources :refunds, only: [:new, :create] do
+      member do
+        post :add_item
+        post :remove_item
+      end
+    end
   end
 
   resources :shipments, only: [:index, :show]
diff --git a/rails_application/db/migrate/20241209100544_create_refunds.rb b/rails_application/db/migrate/20241209100544_create_refunds.rb
new file mode 100644
index 00000000..5710d274
--- /dev/null
+++ b/rails_application/db/migrate/20241209100544_create_refunds.rb
@@ -0,0 +1,12 @@
+class CreateRefunds < ActiveRecord::Migration[7.2]
+  def change
+    create_table :refunds do |t|
+      t.uuid :uid
+      t.uuid :order_uid
+      t.string :status
+      t.decimal :total_value, precision: 8, scale: 2
+
+      t.timestamps
+    end
+  end
+end
diff --git a/rails_application/db/migrate/20241209102208_create_refund_items.rb b/rails_application/db/migrate/20241209102208_create_refund_items.rb
new file mode 100644
index 00000000..f75ce602
--- /dev/null
+++ b/rails_application/db/migrate/20241209102208_create_refund_items.rb
@@ -0,0 +1,12 @@
+class CreateRefundItems < ActiveRecord::Migration[7.2]
+  def change
+    create_table :refund_items do |t|
+      t.uuid :refund_uid
+      t.uuid :product_uid
+      t.integer :quantity
+      t.decimal :price, precision: 8, scale: 2
+
+      t.timestamps
+    end
+  end
+end
diff --git a/rails_application/db/schema.rb b/rails_application/db/schema.rb
index 939d0106..a80e1193 100644
--- a/rails_application/db/schema.rb
+++ b/rails_application/db/schema.rb
@@ -10,7 +10,7 @@
 #
 # It's strongly recommended that you check this file into your version control system.
 
-ActiveRecord::Schema[7.2].define(version: 2024_10_18_113912) do
+ActiveRecord::Schema[7.2].define(version: 2024_12_09_102208) do
   # These are extensions that must be enabled in order to support this database
   enable_extension "pgcrypto"
   enable_extension "plpgsql"
@@ -194,6 +194,24 @@
     t.decimal "lowest_recent_price", precision: 8, scale: 2
   end
 
+  create_table "refund_items", force: :cascade do |t|
+    t.uuid "refund_uid"
+    t.uuid "product_uid"
+    t.integer "quantity"
+    t.decimal "price", precision: 8, scale: 2
+    t.datetime "created_at", null: false
+    t.datetime "updated_at", null: false
+  end
+
+  create_table "refunds", force: :cascade do |t|
+    t.uuid "uid"
+    t.uuid "order_uid"
+    t.string "status"
+    t.decimal "total_value", precision: 8, scale: 2
+    t.datetime "created_at", null: false
+    t.datetime "updated_at", null: false
+  end
+
   create_table "shipment_items", force: :cascade do |t|
     t.bigint "shipment_id", null: false
     t.string "product_name", null: false
diff --git a/rails_application/lib/configuration.rb b/rails_application/lib/configuration.rb
index 512be070..60ed8722 100644
--- a/rails_application/lib/configuration.rb
+++ b/rails_application/lib/configuration.rb
@@ -17,6 +17,7 @@ def call(event_store, command_bus)
     enable_availability_read_model(event_store)
     enable_authentication_read_model(event_store)
     enable_vat_rates_read_model(event_store)
+    enable_refunds_read_model(event_store)
 
     Ecommerce::Configuration.new(
       number_generator: Rails.configuration.number_generator,
@@ -81,4 +82,8 @@ def enable_authentication_read_model(event_store)
   def enable_vat_rates_read_model(event_store)
     VatRates::Configuration.new.call(event_store)
   end
+
+  def enable_refunds_read_model(event_store)
+    Refunds::Configuration.new.call(event_store)
+  end
 end
diff --git a/rails_application/test/integration/refunds_test.rb b/rails_application/test/integration/refunds_test.rb
new file mode 100644
index 00000000..1e2e17f5
--- /dev/null
+++ b/rails_application/test/integration/refunds_test.rb
@@ -0,0 +1,31 @@
+require "test_helper"
+
+class RefundsTest < InMemoryRESIntegrationTestCase
+  def setup
+    super
+    add_available_vat_rate(10)
+  end
+
+  def test_happy_path
+    shopify_id = register_customer("Shopify")
+    order_id = SecureRandom.uuid
+    async_remote_id = register_product("Async Remote", 39, 10)
+    fearless_id = register_product("Fearless Refactoring", 49, 10)
+
+    post "/orders/#{order_id}/add_item?product_id=#{async_remote_id}"
+    post "/orders/#{order_id}/add_item?product_id=#{fearless_id}"
+    post "/orders/#{order_id}/add_item?product_id=#{fearless_id}"
+    submit_order(shopify_id, order_id)
+
+    show_order(order_id)
+
+    assert_select("a", "Refund")
+
+    get "/orders/#{order_id}/refunds/new"
+
+    assert_select("tr") do
+      assert_select("td", "Async Remote")
+      assert_select("td", "Fearless Refactoring")
+    end
+  end
+end
diff --git a/rails_application/test/test_helper.rb b/rails_application/test/test_helper.rb
index 1b30559f..fe4a61c7 100644
--- a/rails_application/test/test_helper.rb
+++ b/rails_application/test/test_helper.rb
@@ -123,10 +123,18 @@ def visit_client_orders
     get "/client_orders"
   end
 
+  def show_order(order_id)
+    get "/orders/#{order_id}"
+  end
+
   def add_product_to_basket(order_id, product_id)
     post "/orders/#{order_id}/add_item?product_id=#{product_id}"
   end
 
+  def add_product_to_refund(order_id, refund_id, product_id)
+    post "/orders/#{order_id}/refunds/#{refund_id}/add_item?product_id=#{product_id}"
+  end
+
   def run_command(command)
     Rails.configuration.command_bus.call(command)
   end