diff --git a/app/assets/javascripts/notifications.coffee b/app/assets/javascripts/notifications.coffee
new file mode 100644
index 0000000..24f83d1
--- /dev/null
+++ b/app/assets/javascripts/notifications.coffee
@@ -0,0 +1,3 @@
+# Place all the behaviors and hooks related to the matching controller here.
+# All this logic will automatically be available in application.js.
+# You can use CoffeeScript in this file: http://coffeescript.org/
diff --git a/app/assets/stylesheets/notifications.scss b/app/assets/stylesheets/notifications.scss
new file mode 100644
index 0000000..c7ddf91
--- /dev/null
+++ b/app/assets/stylesheets/notifications.scss
@@ -0,0 +1,3 @@
+// Place all the styles related to the notifications controller here.
+// They will automatically be included in application.css.
+// You can use Sass (SCSS) here: http://sass-lang.com/
diff --git a/app/controllers/notifications_controller.rb b/app/controllers/notifications_controller.rb
new file mode 100644
index 0000000..9f86424
--- /dev/null
+++ b/app/controllers/notifications_controller.rb
@@ -0,0 +1,21 @@
+class NotificationsController < ApplicationController
+  load_and_authorize_resource :user, only: :index
+
+  before_action :load_notification, only: :read
+  authorize_resource :notification, only: :read
+
+  def index
+    @notifications = @user.notifications.group_by(&:read)
+  end
+
+  def read
+    @notification.read!
+    redirect_to user_notifications_path(@notification.user)
+  end
+
+  private
+
+  def load_notification
+    @notification = Notification.find params[:notification_id]
+  end
+end
diff --git a/app/controllers/requests_controller.rb b/app/controllers/requests_controller.rb
index 3c606b2..57d68ad 100644
--- a/app/controllers/requests_controller.rb
+++ b/app/controllers/requests_controller.rb
@@ -1,11 +1,11 @@
 class RequestsController < ApplicationController
-  load_and_authorize_resource :user,    only: :index
+  load_and_authorize_resource :user, only: :index
 
   before_action :load_request, only: [:confirm, :decline]
   authorize_resource :request, only: [:confirm, :decline]
 
   def index
-    @requests = User.find(params[:user_id]).incoming_requests.group_by(&:status)
+    @requests = @user.incoming_requests.group_by(&:status)
   end
 
   def confirm
diff --git a/app/helpers/notifications_helper.rb b/app/helpers/notifications_helper.rb
new file mode 100644
index 0000000..7342393
--- /dev/null
+++ b/app/helpers/notifications_helper.rb
@@ -0,0 +1,2 @@
+module NotificationsHelper
+end
diff --git a/app/models/notification.rb b/app/models/notification.rb
new file mode 100644
index 0000000..ddad234
--- /dev/null
+++ b/app/models/notification.rb
@@ -0,0 +1,7 @@
+class Notification < ActiveRecord::Base
+  belongs_to :user
+
+  def read!
+    update_attributes read: true
+  end
+end
diff --git a/app/models/request.rb b/app/models/request.rb
index f6c33d7..5132b3d 100644
--- a/app/models/request.rb
+++ b/app/models/request.rb
@@ -14,12 +14,16 @@ class Request < ActiveRecord::Base
     Transaction.create attributes.symbolize_keys.extract!(
       :debtor_id, :creditor_id, :issuer_id, :issuer_type, :amount, :message
     )
+
+    creditor.notifications.create message: "Your request for #{amount} for \"#{message}\" has been accepted by #{debtor.name}."
+
     update_attributes status: :confirmed
   end
 
   def decline!
     return unless open?
 
+    creditor.notifications.create message: "#{debtor.name} refuses to pay #{amount} for \"#{message}\"."
     update_attributes status: :declined
   end
 
diff --git a/app/models/user.rb b/app/models/user.rb
index 65afd6a..28dfa11 100644
--- a/app/models/user.rb
+++ b/app/models/user.rb
@@ -22,6 +22,7 @@ class User < ActiveRecord::Base
     class_name: 'Request', foreign_key: 'debtor_id'
   has_many :outgoing_requests,
     class_name: 'Request', foreign_key: 'debtor_id'
+  has_many :notifications
 
   has_many :issued_transactions, as: :issuer, class_name: 'Transaction'
 
diff --git a/app/models/user_ability.rb b/app/models/user_ability.rb
index 51fff98..49fe98b 100644
--- a/app/models/user_ability.rb
+++ b/app/models/user_ability.rb
@@ -6,7 +6,8 @@ class UserAbility
 
     can :manage, :all if user.penning?
     can :read,   user, id: user.id
-    can :manage, Request, user_id: user.id
+    can :manage, Request,      user_id: user.id
+    can :manage, Notification, user_id: user.id
     can :create, Transaction do |t|
       t.debtor == user && t.amount <= Rails.application.config.maximum_amount
     end
diff --git a/app/views/layouts/application.html.haml b/app/views/layouts/application.html.haml
index 249bd97..47a812d 100644
--- a/app/views/layouts/application.html.haml
+++ b/app/views/layouts/application.html.haml
@@ -19,6 +19,8 @@
                   =link_to "Zeus", User.zeus, class: "pure-menu-link"
               %li.pure-menu-item
                 = link_to 'Requests', user_requests_path(current_user), class: 'pure-menu-link'
+              %li.pure-menu-item
+                = link_to 'Notifications', user_notifications_path(current_user), class: 'pure-menu-link'
       .pure-u-1
         = render 'partials/flash'
         = yield
diff --git a/app/views/notifications/_index.html.haml b/app/views/notifications/_index.html.haml
new file mode 100644
index 0000000..7d52c26
--- /dev/null
+++ b/app/views/notifications/_index.html.haml
@@ -0,0 +1,15 @@
+%h4= title
+%table.pure-table
+  %thead
+    %tr
+      %th Message
+      - if actions
+        %th Mark as read
+  %tbody
+    - (notifications || []).each do |n|
+      %tr
+        %td= n.message
+        - if actions
+          %td
+            = link_to notification_read_path(n), method: :post do
+              %span.glyphicon.glyphicon-ok
diff --git a/app/views/notifications/index.html.haml b/app/views/notifications/index.html.haml
new file mode 100644
index 0000000..15012ea
--- /dev/null
+++ b/app/views/notifications/index.html.haml
@@ -0,0 +1,2 @@
+= render 'index', actions: true, title: 'Unread Notifications', notifications: @notifications[false]
+= render 'index', actions: false, title: 'Read Notifications', notifications: @notifications[true]
diff --git a/config/routes.rb b/config/routes.rb
index 9c68f28..bf9a17a 100644
--- a/config/routes.rb
+++ b/config/routes.rb
@@ -7,10 +7,13 @@ Rails.application.routes.draw do
 
   resources :transactions, only: [:index, :create]
   resources :users,        only: [:index, :show] do
-    resources :requests,     only: [:index], shallow: true do
+    resources :requests, only: [:index], shallow: true do
       post :confirm
       post :decline
     end
+    resources :notifications, only: [:index], shallow: true do
+      post :read
+    end
   end
 
   get 'datatables/:id' => 'datatables#transactions_for_user', as: "user_transactions"
diff --git a/db/migrate/20170109150245_create_notifications.rb b/db/migrate/20170109150245_create_notifications.rb
new file mode 100644
index 0000000..b8b3717
--- /dev/null
+++ b/db/migrate/20170109150245_create_notifications.rb
@@ -0,0 +1,11 @@
+class CreateNotifications < ActiveRecord::Migration
+  def change
+    create_table :notifications do |t|
+      t.references :user, index: true, null: false
+      t.string :message
+      t.boolean :read,    default: false
+
+      t.timestamps null: false
+    end
+  end
+end
diff --git a/db/schema.rb b/db/schema.rb
index 7bbf575..3441a84 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -11,7 +11,7 @@
 #
 # It's strongly recommended that you check this file into your version control system.
 
-ActiveRecord::Schema.define(version: 20170109123717) do
+ActiveRecord::Schema.define(version: 20170109150245) do
 
   create_table "clients", force: :cascade do |t|
     t.string   "name",       null: false
@@ -23,6 +23,16 @@ ActiveRecord::Schema.define(version: 20170109123717) do
   add_index "clients", ["key"], name: "index_clients_on_key"
   add_index "clients", ["name"], name: "index_clients_on_name"
 
+  create_table "notifications", force: :cascade do |t|
+    t.integer  "user_id",                    null: false
+    t.string   "message"
+    t.boolean  "read",       default: false
+    t.datetime "created_at",                 null: false
+    t.datetime "updated_at",                 null: false
+  end
+
+  add_index "notifications", ["user_id"], name: "index_notifications_on_user_id"
+
   create_table "requests", force: :cascade do |t|
     t.integer  "debtor_id",               null: false
     t.integer  "creditor_id",             null: false
diff --git a/spec/controllers/notifications_controller_spec.rb b/spec/controllers/notifications_controller_spec.rb
new file mode 100644
index 0000000..4212687
--- /dev/null
+++ b/spec/controllers/notifications_controller_spec.rb
@@ -0,0 +1,5 @@
+require 'rails_helper'
+
+RSpec.describe NotificationsController, type: :controller do
+
+end
diff --git a/spec/factories/notifications.rb b/spec/factories/notifications.rb
new file mode 100644
index 0000000..23b8f71
--- /dev/null
+++ b/spec/factories/notifications.rb
@@ -0,0 +1,6 @@
+FactoryGirl.define do
+  factory :notification do
+    
+  end
+
+end
diff --git a/spec/helpers/notifications_helper_spec.rb b/spec/helpers/notifications_helper_spec.rb
new file mode 100644
index 0000000..1473b13
--- /dev/null
+++ b/spec/helpers/notifications_helper_spec.rb
@@ -0,0 +1,15 @@
+require 'rails_helper'
+
+# Specs in this file have access to a helper object that includes
+# the NotificationsHelper. For example:
+#
+# describe NotificationsHelper do
+#   describe "string concat" do
+#     it "concats two strings with spaces" do
+#       expect(helper.concat_strings("this","that")).to eq("this that")
+#     end
+#   end
+# end
+RSpec.describe NotificationsHelper, type: :helper do
+  pending "add some examples to (or delete) #{__FILE__}"
+end
diff --git a/spec/models/notification_spec.rb b/spec/models/notification_spec.rb
new file mode 100644
index 0000000..bbdc6e0
--- /dev/null
+++ b/spec/models/notification_spec.rb
@@ -0,0 +1,5 @@
+require 'rails_helper'
+
+RSpec.describe Notification, type: :model do
+  pending "add some examples to (or delete) #{__FILE__}"
+end