diff --git a/src/generic/FormikControl.jsx b/src/generic/FormikControl.tsx
similarity index 62%
rename from src/generic/FormikControl.jsx
rename to src/generic/FormikControl.tsx
index 048ad991ab..e3d56af966 100644
--- a/src/generic/FormikControl.jsx
+++ b/src/generic/FormikControl.tsx
@@ -1,16 +1,25 @@
-/* eslint-disable react/jsx-no-useless-fragment */
+import React from 'react';
 import { Form } from '@openedx/paragon';
 import { getIn, useFormikContext } from 'formik';
-import PropTypes from 'prop-types';
-import React from 'react';
 import FormikErrorFeedback from './FormikErrorFeedback';
 
-const FormikControl = ({
+interface Props {
+  name: string;
+  label?: React.ReactElement;
+  help?: React.ReactElement;
+  className?: string;
+  controlClasses?: string;
+  value: string | number;
+}
+
+const FormikControl: React.FC<Props & React.ComponentProps<typeof Form.Control>> = ({
   name,
-  label,
-  help,
-  className,
-  controlClasses,
+  // eslint-disable-next-line react/jsx-no-useless-fragment
+  label = <></>,
+  // eslint-disable-next-line react/jsx-no-useless-fragment
+  help = <></>,
+  className = '',
+  controlClasses = 'pb-2',
   ...params
 }) => {
   const {
@@ -39,23 +48,4 @@ const FormikControl = ({
   );
 };
 
-FormikControl.propTypes = {
-  name: PropTypes.string.isRequired,
-  label: PropTypes.element,
-  help: PropTypes.element,
-  className: PropTypes.string,
-  controlClasses: PropTypes.string,
-  value: PropTypes.oneOfType([
-    PropTypes.string,
-    PropTypes.number,
-  ]).isRequired,
-};
-
-FormikControl.defaultProps = {
-  help: <></>,
-  label: <></>,
-  className: '',
-  controlClasses: 'pb-2',
-};
-
 export default FormikControl;
diff --git a/src/library-authoring/EmptyStates.tsx b/src/library-authoring/EmptyStates.tsx
index 7fa0d51900..39e43ed1ed 100644
--- a/src/library-authoring/EmptyStates.tsx
+++ b/src/library-authoring/EmptyStates.tsx
@@ -1,4 +1,4 @@
-import React, { useContext } from 'react';
+import React, { useContext, useCallback } from 'react';
 import { useParams } from 'react-router';
 import { FormattedMessage } from '@edx/frontend-platform/i18n';
 import {
@@ -15,18 +15,26 @@ type NoSearchResultsProps = {
 };
 
 export const NoComponents = ({ searchType = 'component' }: NoSearchResultsProps) => {
-  const { openAddContentSidebar } = useContext(LibraryContext);
+  const { openAddContentSidebar, openCreateCollectionModal } = useContext(LibraryContext);
   const { libraryId } = useParams();
   const { data: libraryData } = useContentLibrary(libraryId);
   const canEditLibrary = libraryData?.canEditLibrary ?? false;
 
+  const handleOnClickButton = useCallback(() => {
+    if (searchType === 'collection') {
+      openCreateCollectionModal();
+    } else {
+      openAddContentSidebar();
+    }
+  }, [searchType]);
+
   return (
     <Stack direction="horizontal" gap={3} className="mt-6 justify-content-center">
       {searchType === 'collection'
         ? <FormattedMessage {...messages.noCollections} />
         : <FormattedMessage {...messages.noComponents} />}
       {canEditLibrary && (
-        <Button iconBefore={Add} onClick={() => openAddContentSidebar()}>
+        <Button iconBefore={Add} onClick={handleOnClickButton}>
           {searchType === 'collection'
             ? <FormattedMessage {...messages.addCollection} />
             : <FormattedMessage {...messages.addComponent} />}
diff --git a/src/library-authoring/LibraryAuthoringPage.test.tsx b/src/library-authoring/LibraryAuthoringPage.test.tsx
index a848db358b..33a89a3efb 100644
--- a/src/library-authoring/LibraryAuthoringPage.test.tsx
+++ b/src/library-authoring/LibraryAuthoringPage.test.tsx
@@ -13,6 +13,7 @@ import { mockContentLibrary, mockLibraryBlockTypes, mockXBlockFields } from './d
 import { mockContentSearchConfig } from '../search-manager/data/api.mock';
 import { mockBroadcastChannel } from '../generic/data/api.mock';
 import { LibraryLayout } from '.';
+import { getLibraryCollectionsApiUrl } from './data/api';
 
 mockContentSearchConfig.applyMock();
 mockContentLibrary.applyMock();
@@ -164,8 +165,23 @@ describe('<LibraryAuthoringPage />', () => {
     fireEvent.click(screen.getByRole('tab', { name: 'Collections' }));
     expect(screen.getByText('You have not added any collection to this library yet.')).toBeInTheDocument();
 
+    // Open Create collection modal
+    const addCollectionButton = screen.getByRole('button', { name: /add collection/i });
+    fireEvent.click(addCollectionButton);
+    const collectionModalHeading = await screen.findByRole('heading', { name: /new collection/i });
+    expect(collectionModalHeading).toBeInTheDocument();
+
+    // Click on Cancel button
+    const cancelButton = screen.getByRole('button', { name: /cancel/i });
+    fireEvent.click(cancelButton);
+    expect(collectionModalHeading).not.toBeInTheDocument();
+
     fireEvent.click(screen.getByRole('tab', { name: 'Home' }));
     expect(screen.getByText('You have not added any content to this library yet.')).toBeInTheDocument();
+
+    const addComponentButton = screen.getByRole('button', { name: /add component/i });
+    fireEvent.click(addComponentButton);
+    expect(screen.getByText(/add content/i)).toBeInTheDocument();
   });
 
   it('shows the new content button', async () => {
@@ -535,6 +551,120 @@ describe('<LibraryAuthoringPage />', () => {
     expect(screen.getByText(/no matching components/i)).toBeInTheDocument();
   });
 
+  it('should create a collection', async () => {
+    await renderLibraryPage();
+    const title = 'This is a Test';
+    const description = 'This is the description of the Test';
+    const url = getLibraryCollectionsApiUrl(mockContentLibrary.libraryId);
+    const { axiosMock } = initializeMocks();
+    axiosMock.onPost(url).reply(200, {
+      id: '1',
+      slug: 'this-is-a-test',
+      title,
+      description,
+    });
+
+    expect(await screen.findByRole('heading')).toBeInTheDocument();
+    expect(screen.queryByText(/add content/i)).not.toBeInTheDocument();
+
+    // Open Add content sidebar
+    const newButton = screen.getByRole('button', { name: /new/i });
+    fireEvent.click(newButton);
+    expect(screen.getByText(/add content/i)).toBeInTheDocument();
+
+    // Open New collection Modal
+    const newCollectionButton = screen.getAllByRole('button', { name: /collection/i })[4];
+    fireEvent.click(newCollectionButton);
+    const collectionModalHeading = await screen.findByRole('heading', { name: /new collection/i });
+    expect(collectionModalHeading).toBeInTheDocument();
+
+    // Click on Cancel button
+    const cancelButton = screen.getByRole('button', { name: /cancel/i });
+    fireEvent.click(cancelButton);
+    expect(collectionModalHeading).not.toBeInTheDocument();
+
+    // Open new collection modal again and create a collection
+    fireEvent.click(newCollectionButton);
+    const createButton = screen.getByRole('button', { name: /create/i });
+    const nameField = screen.getByRole('textbox', { name: /name your collection/i });
+    const descriptionField = screen.getByRole('textbox', { name: /add a description \(optional\)/i });
+
+    fireEvent.change(nameField, { target: { value: title } });
+    fireEvent.change(descriptionField, { target: { value: description } });
+    fireEvent.click(createButton);
+  });
+
+  it('should show validations in create collection', async () => {
+    await renderLibraryPage();
+
+    const title = 'This is a Test';
+    const description = 'This is the description of the Test';
+    const url = getLibraryCollectionsApiUrl(mockContentLibrary.libraryId);
+    const { axiosMock } = initializeMocks();
+    axiosMock.onPost(url).reply(200, {
+      id: '1',
+      slug: 'this-is-a-test',
+      title,
+      description,
+    });
+
+    expect(await screen.findByRole('heading')).toBeInTheDocument();
+    expect(screen.queryByText(/add content/i)).not.toBeInTheDocument();
+
+    // Open Add content sidebar
+    const newButton = screen.getByRole('button', { name: /new/i });
+    fireEvent.click(newButton);
+    expect(screen.getByText(/add content/i)).toBeInTheDocument();
+
+    // Open New collection Modal
+    const newCollectionButton = screen.getAllByRole('button', { name: /collection/i })[4];
+    fireEvent.click(newCollectionButton);
+    const collectionModalHeading = await screen.findByRole('heading', { name: /new collection/i });
+    expect(collectionModalHeading).toBeInTheDocument();
+
+    const nameField = screen.getByRole('textbox', { name: /name your collection/i });
+    fireEvent.focus(nameField);
+    fireEvent.blur(nameField);
+
+    // Click on create with an empty name
+    const createButton = screen.getByRole('button', { name: /create/i });
+    fireEvent.click(createButton);
+
+    expect(await screen.findByText(/collection name is required/i)).toBeInTheDocument();
+  });
+
+  it('should show error on create collection', async () => {
+    await renderLibraryPage();
+    const title = 'This is a Test';
+    const description = 'This is the description of the Test';
+    const url = getLibraryCollectionsApiUrl(mockContentLibrary.libraryId);
+    const { axiosMock } = initializeMocks();
+    axiosMock.onPost(url).reply(500);
+
+    expect(await screen.findByRole('heading')).toBeInTheDocument();
+    expect(screen.queryByText(/add content/i)).not.toBeInTheDocument();
+
+    // Open Add content sidebar
+    const newButton = screen.getByRole('button', { name: /new/i });
+    fireEvent.click(newButton);
+    expect(screen.getByText(/add content/i)).toBeInTheDocument();
+
+    // Open New collection Modal
+    const newCollectionButton = screen.getAllByRole('button', { name: /collection/i })[4];
+    fireEvent.click(newCollectionButton);
+    const collectionModalHeading = await screen.findByRole('heading', { name: /new collection/i });
+    expect(collectionModalHeading).toBeInTheDocument();
+
+    // Create a normal collection
+    const createButton = screen.getByRole('button', { name: /create/i });
+    const nameField = screen.getByRole('textbox', { name: /name your collection/i });
+    const descriptionField = screen.getByRole('textbox', { name: /add a description \(optional\)/i });
+
+    fireEvent.change(nameField, { target: { value: title } });
+    fireEvent.change(descriptionField, { target: { value: description } });
+    fireEvent.click(createButton);
+  });
+
   it('shows both components and collections in recently modified section', async () => {
     await renderLibraryPage();
 
diff --git a/src/library-authoring/LibraryLayout.tsx b/src/library-authoring/LibraryLayout.tsx
index 960f8814f1..5d316a4aa6 100644
--- a/src/library-authoring/LibraryLayout.tsx
+++ b/src/library-authoring/LibraryLayout.tsx
@@ -11,6 +11,7 @@ import { useQueryClient } from '@tanstack/react-query';
 import EditorContainer from '../editors/EditorContainer';
 import LibraryAuthoringPage from './LibraryAuthoringPage';
 import { LibraryProvider } from './common/context';
+import { CreateCollectionModal } from './create-collection';
 import { invalidateComponentData } from './data/apiHooks';
 
 const LibraryLayout = () => {
@@ -49,6 +50,7 @@ const LibraryLayout = () => {
           element={<LibraryAuthoringPage />}
         />
       </Routes>
+      <CreateCollectionModal />
     </LibraryProvider>
   );
 };
diff --git a/src/library-authoring/add-content/AddContentContainer.tsx b/src/library-authoring/add-content/AddContentContainer.tsx
index f13023dac3..0ba42b2d04 100644
--- a/src/library-authoring/add-content/AddContentContainer.tsx
+++ b/src/library-authoring/add-content/AddContentContainer.tsx
@@ -25,6 +25,39 @@ import { useCreateLibraryBlock, useLibraryPasteClipboard } from '../data/apiHook
 import { getEditUrl } from '../components/utils';
 
 import messages from './messages';
+import { LibraryContext } from '../common/context';
+
+type ContentType = {
+  name: string,
+  disabled: boolean,
+  icon: React.ComponentType,
+  blockType: string,
+};
+
+type AddContentButtonProps = {
+  contentType: ContentType,
+  onCreateContent: (blockType: string) => void,
+};
+
+const AddContentButton = ({ contentType, onCreateContent } : AddContentButtonProps) => {
+  const {
+    name,
+    disabled,
+    icon,
+    blockType,
+  } = contentType;
+  return (
+    <Button
+      variant="outline-primary"
+      disabled={disabled}
+      className="m-2"
+      iconBefore={icon}
+      onClick={() => onCreateContent(blockType)}
+    >
+      {name}
+    </Button>
+  );
+};
 
 const AddContentContainer = () => {
   const intl = useIntl();
@@ -35,7 +68,16 @@ const AddContentContainer = () => {
   const { showToast } = useContext(ToastContext);
   const canEdit = useSelector(getCanEdit);
   const { showPasteXBlock } = useCopyToClipboard(canEdit);
+  const {
+    openCreateCollectionModal,
+  } = React.useContext(LibraryContext);
 
+  const collectionButtonData = {
+    name: intl.formatMessage(messages.collectionButton),
+    disabled: false,
+    icon: BookOpen,
+    blockType: 'collection',
+  };
   const contentTypes = [
     {
       name: intl.formatMessage(messages.textTypeButton),
@@ -98,6 +140,8 @@ const AddContentContainer = () => {
         }).catch(() => {
           showToast(intl.formatMessage(messages.errorPasteClipboardMessage));
         });
+      } else if (blockType === 'collection') {
+        openCreateCollectionModal();
       } else {
         createBlockMutation.mutateAsync({
           libraryId,
@@ -124,26 +168,14 @@ const AddContentContainer = () => {
 
   return (
     <Stack direction="vertical">
-      <Button
-        variant="outline-primary"
-        disabled
-        className="m-2 rounded-0"
-        iconBefore={BookOpen}
-      >
-        {intl.formatMessage(messages.collectionButton)}
-      </Button>
+      <AddContentButton contentType={collectionButtonData} onCreateContent={onCreateContent} />
       <hr className="w-100 bg-gray-500" />
       {contentTypes.map((contentType) => (
-        <Button
+        <AddContentButton
           key={`add-content-${contentType.blockType}`}
-          variant="outline-primary"
-          disabled={contentType.disabled}
-          className="m-2 rounded-0"
-          iconBefore={contentType.icon}
-          onClick={() => onCreateContent(contentType.blockType)}
-        >
-          {contentType.name}
-        </Button>
+          contentType={contentType}
+          onCreateContent={onCreateContent}
+        />
       ))}
     </Stack>
   );
diff --git a/src/library-authoring/common/context.tsx b/src/library-authoring/common/context.tsx
index 8b11d61d1b..6ad0f29b58 100644
--- a/src/library-authoring/common/context.tsx
+++ b/src/library-authoring/common/context.tsx
@@ -1,3 +1,4 @@
+import { useToggle } from '@openedx/paragon';
 import React from 'react';
 
 export enum SidebarBodyComponentId {
@@ -13,6 +14,9 @@ export interface LibraryContextData {
   openInfoSidebar: () => void;
   openComponentInfoSidebar: (usageKey: string) => void;
   currentComponentUsageKey?: string;
+  isCreateCollectionModalOpen: boolean;
+  openCreateCollectionModal: () => void;
+  closeCreateCollectionModal: () => void;
 }
 
 export const LibraryContext = React.createContext({
@@ -21,6 +25,9 @@ export const LibraryContext = React.createContext({
   openAddContentSidebar: () => {},
   openInfoSidebar: () => {},
   openComponentInfoSidebar: (_usageKey: string) => {}, // eslint-disable-line @typescript-eslint/no-unused-vars
+  isCreateCollectionModalOpen: false,
+  openCreateCollectionModal: () => {},
+  closeCreateCollectionModal: () => {},
 } as LibraryContextData);
 
 /**
@@ -29,6 +36,7 @@ export const LibraryContext = React.createContext({
 export const LibraryProvider = (props: { children?: React.ReactNode }) => {
   const [sidebarBodyComponent, setSidebarBodyComponent] = React.useState<SidebarBodyComponentId | null>(null);
   const [currentComponentUsageKey, setCurrentComponentUsageKey] = React.useState<string>();
+  const [isCreateCollectionModalOpen, openCreateCollectionModal, closeCreateCollectionModal] = useToggle(false);
 
   const closeLibrarySidebar = React.useCallback(() => {
     setSidebarBodyComponent(null);
@@ -57,6 +65,9 @@ export const LibraryProvider = (props: { children?: React.ReactNode }) => {
     openInfoSidebar,
     openComponentInfoSidebar,
     currentComponentUsageKey,
+    isCreateCollectionModalOpen,
+    openCreateCollectionModal,
+    closeCreateCollectionModal,
   }), [
     sidebarBodyComponent,
     closeLibrarySidebar,
@@ -64,6 +75,9 @@ export const LibraryProvider = (props: { children?: React.ReactNode }) => {
     openInfoSidebar,
     openComponentInfoSidebar,
     currentComponentUsageKey,
+    isCreateCollectionModalOpen,
+    openCreateCollectionModal,
+    closeCreateCollectionModal,
   ]);
 
   return (
diff --git a/src/library-authoring/create-collection/CreateCollectionModal.tsx b/src/library-authoring/create-collection/CreateCollectionModal.tsx
new file mode 100644
index 0000000000..905272b181
--- /dev/null
+++ b/src/library-authoring/create-collection/CreateCollectionModal.tsx
@@ -0,0 +1,125 @@
+import React from 'react';
+import {
+  ActionRow,
+  Button,
+  Form,
+  ModalDialog,
+} from '@openedx/paragon';
+import { useParams } from 'react-router-dom';
+import { useIntl } from '@edx/frontend-platform/i18n';
+import { Formik } from 'formik';
+import * as Yup from 'yup';
+import FormikControl from '../../generic/FormikControl';
+import { LibraryContext } from '../common/context';
+import messages from './messages';
+import { useCreateLibraryCollection } from '../data/apiHooks';
+import { ToastContext } from '../../generic/toast-context';
+
+const CreateCollectionModal = () => {
+  const intl = useIntl();
+  const { libraryId } = useParams();
+  if (!libraryId) {
+    throw new Error('Rendered without libraryId URL parameter');
+  }
+  const create = useCreateLibraryCollection(libraryId!);
+  const {
+    isCreateCollectionModalOpen,
+    closeCreateCollectionModal,
+  } = React.useContext(LibraryContext);
+  const { showToast } = React.useContext(ToastContext);
+
+  const handleCreate = React.useCallback((values) => {
+    create.mutateAsync(values).then(() => {
+      closeCreateCollectionModal();
+      showToast(intl.formatMessage(messages.createCollectionSuccess));
+    }).catch(() => {
+      showToast(intl.formatMessage(messages.createCollectionError));
+    });
+  }, []);
+
+  return (
+    <ModalDialog
+      title={intl.formatMessage(messages.createCollectionModalTitle)}
+      isOpen={isCreateCollectionModalOpen}
+      onClose={closeCreateCollectionModal}
+      size="xl"
+      hasCloseButton
+      isFullscreenOnMobile
+    >
+      <ModalDialog.Header>
+        <ModalDialog.Title>
+          {intl.formatMessage(messages.createCollectionModalTitle)}
+        </ModalDialog.Title>
+      </ModalDialog.Header>
+
+      <Formik
+        initialValues={{
+          title: '',
+          description: '',
+        }}
+        validationSchema={
+          Yup.object().shape({
+            title: Yup.string()
+              .required(intl.formatMessage(messages.createCollectionModalNameInvalid)),
+            description: Yup.string(),
+          })
+        }
+        onSubmit={handleCreate}
+      >
+        {(formikProps) => (
+          <>
+            <ModalDialog.Body className="mw-sm">
+              <Form onSubmit={formikProps.handleSubmit}>
+                <FormikControl
+                  name="title"
+                  label={(
+                    <Form.Label className="font-weight-bold h3">
+                      {intl.formatMessage(messages.createCollectionModalNameLabel)}
+                    </Form.Label>
+                  )}
+                  value={formikProps.values.title}
+                  placeholder={intl.formatMessage(messages.createCollectionModalNamePlaceholder)}
+                  controlClasses="pb-2"
+                />
+                <FormikControl
+                  name="description"
+                  as="textarea"
+                  label={(
+                    <Form.Label className="font-weight-bold h3">
+                      {intl.formatMessage(messages.createCollectionModalDescriptionLabel)}
+                    </Form.Label>
+                  )}
+                  value={formikProps.values.description}
+                  placeholder={intl.formatMessage(messages.createCollectionModalDescriptionPlaceholder)}
+                  help={(
+                    <Form.Text>
+                      {intl.formatMessage(messages.createCollectionModalDescriptionDetails)}
+                    </Form.Text>
+                  )}
+                  controlClasses="pb-2"
+                  rows="5"
+                />
+              </Form>
+            </ModalDialog.Body>
+            <ModalDialog.Footer>
+              <ActionRow>
+                <ModalDialog.CloseButton variant="tertiary">
+                  {intl.formatMessage(messages.createCollectionModalCancel)}
+                </ModalDialog.CloseButton>
+                <Button
+                  variant="primary"
+                  onClick={formikProps.submitForm}
+                  disabled={formikProps.isSubmitting || !formikProps.isValid || !formikProps.dirty}
+                >
+                  {intl.formatMessage(messages.createCollectionModalCreate)}
+                </Button>
+              </ActionRow>
+            </ModalDialog.Footer>
+          </>
+        )}
+      </Formik>
+    </ModalDialog>
+  );
+};
+
+export default CreateCollectionModal;
diff --git a/src/library-authoring/create-collection/index.tsx b/src/library-authoring/create-collection/index.tsx
new file mode 100644
index 0000000000..56813a7aed
--- /dev/null
+++ b/src/library-authoring/create-collection/index.tsx
@@ -0,0 +1,2 @@
+// eslint-disable-next-line import/prefer-default-export
+export { default as CreateCollectionModal } from './CreateCollectionModal';
diff --git a/src/library-authoring/create-collection/messages.ts b/src/library-authoring/create-collection/messages.ts
new file mode 100644
index 0000000000..36a11138e8
--- /dev/null
+++ b/src/library-authoring/create-collection/messages.ts
@@ -0,0 +1,65 @@
+import { defineMessages as _defineMessages } from '@edx/frontend-platform/i18n';
+import type { defineMessages as defineMessagesType } from 'react-intl';
+
+// frontend-platform currently doesn't provide types... do it ourselves.
+const defineMessages = _defineMessages as typeof defineMessagesType;
+
+const messages = defineMessages({
+  createCollectionModalTitle: {
+    id: 'course-authoring.library-authoring.modals.create-collection.title',
+    defaultMessage: 'New Collection',
+    description: 'Title of the Create Collection modal',
+  },
+  createCollectionModalCancel: {
+    id: 'course-authoring.library-authoring.modals.create-collection.cancel',
+    defaultMessage: 'Cancel',
+    description: 'Label of the Cancel button of the Create Collection modal',
+  },
+  createCollectionModalCreate: {
+    id: 'course-authoring.library-authoring.modals.create-collection.create',
+    defaultMessage: 'Create',
+    description: 'Label of the Create button of the Create Collection modal',
+  },
+  createCollectionModalNameLabel: {
+    id: 'course-authoring.library-authoring.modals.create-collection.form.name',
+    defaultMessage: 'Name your collection',
+    description: 'Label of the Name field of the Create Collection modal form',
+  },
+  createCollectionModalNamePlaceholder: {
+    id: 'course-authoring.library-authoring.modals.create-collection.form.name.placeholder',
+    defaultMessage: 'Give a descriptive title',
+    description: 'Placeholder of the Name field of the Create Collection modal form',
+  },
+  createCollectionModalNameInvalid: {
+    id: 'course-authoring.library-authoring.modals.create-collection.form.name.invalid',
+    defaultMessage: 'Collection name is required',
+    description: 'Message when the Name field of the Create Collection modal form is invalid',
+  },
+  createCollectionModalDescriptionLabel: {
+    id: 'course-authoring.library-authoring.modals.create-collection.form.description',
+    defaultMessage: 'Add a description (optional)',
+    description: 'Label of the Description field of the Create Collection modal form',
+  },
+  createCollectionModalDescriptionPlaceholder: {
+    id: 'course-authoring.library-authoring.modals.create-collection.form.description.placeholder',
+    defaultMessage: 'Add description',
+    description: 'Placeholder of the Description field of the Create Collection modal form',
+  },
+  createCollectionModalDescriptionDetails: {
+    id: 'course-authoring.library-authoring.modals.create-collection.form.description.details',
+    defaultMessage: 'Descriptions can help you and your team better organize and find what you are looking for',
+    description: 'Details of the Description field of the Create Collection modal form',
+  },
+  createCollectionSuccess: {
+    id: 'course-authoring.library-authoring.modals.create-collection.success',
+    defaultMessage: 'Collection created successfully',
+    description: 'Success message when creating a library collection',
+  },
+  createCollectionError: {
+    id: 'course-authoring.library-authoring.modals.create-collection.error',
+    defaultMessage: 'There is an error when creating the library collection',
+    description: 'Error message when creating a library collection',
+  },
+});
+
+export default messages;
diff --git a/src/library-authoring/data/api.test.ts b/src/library-authoring/data/api.test.ts
index 36200ff91c..c3e7831869 100644
--- a/src/library-authoring/data/api.test.ts
+++ b/src/library-authoring/data/api.test.ts
@@ -43,4 +43,19 @@ describe('library data API', () => {
       expect(axiosMock.history.delete[0].url).toEqual(url);
     });
   });
+
+  it('should create collection', async () => {
+    const { axiosMock } = initializeMocks();
+    const libraryId = 'lib:org:1';
+    const url = api.getLibraryCollectionsApiUrl(libraryId);
+
+    axiosMock.onPost(url).reply(200);
+
+    await api.createCollection(libraryId, {
+      title: 'This is a test',
+      description: 'This is only a test',
+    });
+
+    expect(axiosMock.history.post[0].url).toEqual(url);
+  });
 });
diff --git a/src/library-authoring/data/api.ts b/src/library-authoring/data/api.ts
index e5ca502c56..f8e6008827 100644
--- a/src/library-authoring/data/api.ts
+++ b/src/library-authoring/data/api.ts
@@ -32,6 +32,10 @@ export const getXBlockFieldsApiUrl = (usageKey: string) => `${getApiBaseUrl()}/a
   * Get the URL for the xblock OLX API
   */
 export const getXBlockOLXApiUrl = (usageKey: string) => `${getApiBaseUrl()}/api/libraries/v2/blocks/${usageKey}/olx/`;
+/**
+ * Get the URL for the Library Collections API.
+ */
+export const getLibraryCollectionsApiUrl = (libraryId: string) => `${getApiBaseUrl()}/api/libraries/v2/${libraryId}/collections/`;
 
 export interface ContentLibrary {
   id: string;
@@ -131,6 +135,11 @@ export interface UpdateXBlockFieldsRequest {
   };
 }
 
+export interface CreateLibraryCollectionDataRequest {
+  title: string;
+  description: string | null;
+}
+
 /**
  * Fetch the list of XBlock types that can be added to this library
  */
@@ -236,11 +245,21 @@ export async function getXBlockFields(usageKey: string): Promise<XBlockFields> {
 /**
  * Update xblock fields.
  */
-export async function updateXBlockFields(usageKey:string, xblockData: UpdateXBlockFieldsRequest) {
+export async function updateXBlockFields(usageKey: string, xblockData: UpdateXBlockFieldsRequest) {
   const client = getAuthenticatedHttpClient();
   await client.post(getXBlockFieldsApiUrl(usageKey), xblockData);
 }
 
+/**
+ * Create a library collection
+ */
+export async function createCollection(libraryId: string, collectionData: CreateLibraryCollectionDataRequest) {
+  const client = getAuthenticatedHttpClient();
+  const { data } = await client.post(getLibraryCollectionsApiUrl(libraryId), collectionData);
+
+  return camelCaseObject(data);
+}
+
 /**
  * Fetch the OLX for the given XBlock.
  */
diff --git a/src/library-authoring/data/apiHooks.test.tsx b/src/library-authoring/data/apiHooks.test.tsx
index 686e114018..a92546c10f 100644
--- a/src/library-authoring/data/apiHooks.test.tsx
+++ b/src/library-authoring/data/apiHooks.test.tsx
@@ -5,8 +5,13 @@ import { getAuthenticatedHttpClient } from '@edx/frontend-platform/auth';
 import { renderHook } from '@testing-library/react-hooks';
 import { QueryClient, QueryClientProvider } from '@tanstack/react-query';
 import MockAdapter from 'axios-mock-adapter';
-import { getCommitLibraryChangesUrl, getCreateLibraryBlockUrl } from './api';
-import { useCommitLibraryChanges, useCreateLibraryBlock, useRevertLibraryChanges } from './apiHooks';
+import { getCommitLibraryChangesUrl, getCreateLibraryBlockUrl, getLibraryCollectionsApiUrl } from './api';
+import {
+  useCommitLibraryChanges,
+  useCreateLibraryBlock,
+  useCreateLibraryCollection,
+  useRevertLibraryChanges,
+} from './apiHooks';
 
 let axiosMock;
 
@@ -70,4 +75,18 @@ describe('library api hooks', () => {
 
     expect(axiosMock.history.delete[0].url).toEqual(url);
   });
+
+  it('should create collection', async () => {
+    const libraryId = 'lib:org:1';
+    const url = getLibraryCollectionsApiUrl(libraryId);
+    axiosMock.onPost(url).reply(200);
+
+    const { result } = renderHook(() => useCreateLibraryCollection(libraryId), { wrapper });
+    await result.current.mutateAsync({
+      title: 'This is a test',
+      description: 'This is only a test',
+    });
+
+    expect(axiosMock.history.post[0].url).toEqual(url);
+  });
 });
diff --git a/src/library-authoring/data/apiHooks.ts b/src/library-authoring/data/apiHooks.ts
index 365bd8d1e6..656ac21f63 100644
--- a/src/library-authoring/data/apiHooks.ts
+++ b/src/library-authoring/data/apiHooks.ts
@@ -23,7 +23,9 @@ import {
   libraryPasteClipboard,
   getXBlockFields,
   updateXBlockFields,
+  createCollection,
   getXBlockOLX,
+  type CreateLibraryCollectionDataRequest,
 } from './api';
 
 const libraryQueryPredicate = (query: Query, libraryId: string): boolean => {
@@ -238,6 +240,19 @@ export const useUpdateXBlockFields = (usageKey: string) => {
   });
 };
 
+/**
+ * Use this mutation to create a library collection
+ */
+export const useCreateLibraryCollection = (libraryId: string) => {
+  const queryClient = useQueryClient();
+  return useMutation({
+    mutationFn: (data: CreateLibraryCollectionDataRequest) => createCollection(libraryId, data),
+    onSettled: () => {
+      queryClient.invalidateQueries({ predicate: (query) => libraryQueryPredicate(query, libraryId) });
+    },
+  });
+};
+
 /* istanbul ignore next */ // This is only used in developer builds, and the associated UI doesn't work in test or prod
 export const useXBlockOLX = (usageKey: string) => (
   useQuery({