diff --git a/src/resource/tiers.py b/src/resource/tiers.py
new file mode 100644
index 0000000..c7cc53d
--- /dev/null
+++ b/src/resource/tiers.py
@@ -0,0 +1,324 @@
+"""Hardware tier detection and management system."""
+
+import os
+import yaml
+import logging
+from typing import Dict, List, Optional, Any, Tuple
+from pathlib import Path
+
+from ..models.resource_monitor import ResourceMonitor
+
+
+class HardwareTierDetector:
+    """Detects and classifies hardware capabilities into performance tiers.
+
+    This class loads configurable tier definitions and uses system resource
+    monitoring to classify the current system into appropriate tiers for
+    intelligent model selection.
+    """
+
+    def __init__(self, config_path: Optional[str] = None):
+        """Initialize hardware tier detector.
+
+        Args:
+            config_path: Path to tier configuration file. If None, uses default.
+        """
+        self.logger = logging.getLogger(__name__)
+
+        # Set default config path relative to this file
+        if config_path is None:
+            config_path = (
+                Path(__file__).parent.parent / "config" / "resource_tiers.yaml"
+            )
+
+        self.config_path = Path(config_path)
+        self.tier_config: Optional[Dict[str, Any]] = None
+        self.resource_monitor = ResourceMonitor()
+
+        # Cache tier detection result
+        self._cached_tier: Optional[str] = None
+        self._cache_time: float = 0
+        self._cache_duration: float = 60.0  # Cache for 1 minute
+
+        # Load configuration
+        self._load_tier_config()
+
+    def _load_tier_config(self) -> None:
+        """Load tier definitions from YAML configuration file.
+
+        Raises:
+            FileNotFoundError: If config file doesn't exist
+            yaml.YAMLError: If config file is invalid
+        """
+        try:
+            with open(self.config_path, "r", encoding="utf-8") as f:
+                self.tier_config = yaml.safe_load(f)
+            self.logger.info(f"Loaded tier configuration from {self.config_path}")
+        except FileNotFoundError:
+            self.logger.error(f"Tier configuration file not found: {self.config_path}")
+            raise
+        except yaml.YAMLError as e:
+            self.logger.error(f"Invalid YAML in tier configuration: {e}")
+            raise
+
+    def detect_current_tier(self) -> str:
+        """Determine system tier based on current resources.
+
+        Returns:
+            Tier name: 'low_end', 'mid_range', or 'high_end'
+        """
+        # Check cache first
+        import time
+
+        current_time = time.time()
+        if (
+            self._cached_tier is not None
+            and current_time - self._cache_time < self._cache_duration
+        ):
+            return self._cached_tier
+
+        try:
+            resources = self.resource_monitor.get_current_resources()
+            tier = self._classify_resources(resources)
+
+            # Cache result
+            self._cached_tier = tier
+            self._cache_time = current_time
+
+            self.logger.info(f"Detected hardware tier: {tier}")
+            return tier
+
+        except Exception as e:
+            self.logger.error(f"Failed to detect tier: {e}")
+            return "low_end"  # Conservative fallback
+
+    def _classify_resources(self, resources: Dict[str, float]) -> str:
+        """Classify system resources into tier based on configuration.
+
+        Args:
+            resources: Current system resources from ResourceMonitor
+
+        Returns:
+            Tier classification
+        """
+        if not self.tier_config or "tiers" not in self.tier_config:
+            self.logger.error("No tier configuration loaded")
+            return "low_end"
+
+        tiers = self.tier_config["tiers"]
+
+        # Extract key metrics
+        ram_gb = resources.get("available_memory_gb", 0)
+        cpu_cores = os.cpu_count() or 1
+        gpu_vram_gb = resources.get("gpu_free_vram_gb", 0)
+        gpu_total_vram_gb = resources.get("gpu_total_vram_gb", 0)
+
+        self.logger.debug(
+            f"Resources: RAM={ram_gb:.1f}GB, CPU={cpu_cores}, GPU={gpu_total_vram_gb:.1f}GB"
+        )
+
+        # Check tiers in order: high_end -> mid_range -> low_end
+        for tier_name in ["high_end", "mid_range", "low_end"]:
+            if tier_name not in tiers:
+                continue
+
+            tier_config = tiers[tier_name]
+
+            if self._meets_tier_requirements(
+                tier_config, ram_gb, cpu_cores, gpu_vram_gb, gpu_total_vram_gb
+            ):
+                return tier_name
+
+        return "low_end"  # Conservative fallback
+
+    def _meets_tier_requirements(
+        self,
+        tier_config: Dict[str, Any],
+        ram_gb: float,
+        cpu_cores: int,
+        gpu_vram_gb: float,
+        gpu_total_vram_gb: float,
+    ) -> bool:
+        """Check if system meets tier requirements.
+
+        Args:
+            tier_config: Configuration for the tier to check
+            ram_gb: Available system RAM in GB
+            cpu_cores: Number of CPU cores
+            gpu_vram_gb: Available GPU VRAM in GB
+            gpu_total_vram_gb: Total GPU VRAM in GB
+
+        Returns:
+            True if system meets all requirements for this tier
+        """
+        try:
+            # Check RAM requirements
+            ram_req = tier_config.get("ram_gb", {})
+            ram_min = ram_req.get("min", 0)
+            ram_max = ram_req.get("max")
+
+            if ram_gb < ram_min:
+                return False
+            if ram_max is not None and ram_gb > ram_max:
+                return False
+
+            # Check CPU core requirements
+            cpu_req = tier_config.get("cpu_cores", {})
+            cpu_min = cpu_req.get("min", 1)
+            cpu_max = cpu_req.get("max")
+
+            if cpu_cores < cpu_min:
+                return False
+            if cpu_max is not None and cpu_cores > cpu_max:
+                return False
+
+            # Check GPU requirements
+            gpu_required = tier_config.get("gpu_required", False)
+            if gpu_required:
+                gpu_vram_req = tier_config.get("gpu_vram_gb", {}).get("min", 0)
+                if gpu_total_vram_gb < gpu_vram_req:
+                    return False
+            elif gpu_total_vram_gb > 0:  # GPU present but not required
+                gpu_vram_max = tier_config.get("gpu_vram_gb", {}).get("max")
+                if gpu_vram_max is not None and gpu_total_vram_gb > gpu_vram_max:
+                    return False
+
+            return True
+
+        except Exception as e:
+            self.logger.error(f"Error checking tier requirements: {e}")
+            return False
+
+    def get_tier_config(self, tier_name: Optional[str] = None) -> Dict[str, Any]:
+        """Get configuration for a specific tier.
+
+        Args:
+            tier_name: Tier to get config for. If None, uses detected tier.
+
+        Returns:
+            Tier configuration dictionary
+        """
+        if tier_name is None:
+            tier_name = self.detect_current_tier()
+
+        if not self.tier_config or "tiers" not in self.tier_config:
+            return {}
+
+        return self.tier_config["tiers"].get(tier_name, {})
+
+    def get_preferred_models(self, tier_name: Optional[str] = None) -> List[str]:
+        """Get preferred model list for detected or specified tier.
+
+        Args:
+            tier_name: Tier to get models for. If None, uses detected tier.
+
+        Returns:
+            List of preferred model sizes for the tier
+        """
+        tier_config = self.get_tier_config(tier_name)
+        return tier_config.get("preferred_models", ["small"])
+
+    def get_scaling_thresholds(
+        self, tier_name: Optional[str] = None
+    ) -> Dict[str, float]:
+        """Get scaling thresholds for detected or specified tier.
+
+        Args:
+            tier_name: Tier to get thresholds for. If None, uses detected tier.
+
+        Returns:
+            Dictionary with memory_percent and cpu_percent thresholds
+        """
+        tier_config = self.get_tier_config(tier_name)
+        return tier_config.get(
+            "scaling_thresholds", {"memory_percent": 75.0, "cpu_percent": 80.0}
+        )
+
+    def is_gpu_required(self, tier_name: Optional[str] = None) -> bool:
+        """Check if detected or specified tier requires GPU.
+
+        Args:
+            tier_name: Tier to check. If None, uses detected tier.
+
+        Returns:
+            True if GPU is required for this tier
+        """
+        tier_config = self.get_tier_config(tier_name)
+        return tier_config.get("gpu_required", False)
+
+    def get_performance_characteristics(
+        self, tier_name: Optional[str] = None
+    ) -> Dict[str, Any]:
+        """Get performance characteristics for detected or specified tier.
+
+        Args:
+            tier_name: Tier to get characteristics for. If None, uses detected tier.
+
+        Returns:
+            Dictionary with performance characteristics
+        """
+        tier_config = self.get_tier_config(tier_name)
+        return tier_config.get("performance_characteristics", {})
+
+    def can_upgrade_model(
+        self, current_model_size: str, target_model_size: str
+    ) -> bool:
+        """Check if system can handle a larger model.
+
+        Args:
+            current_model_size: Current model size (e.g., 'small', 'medium')
+            target_model_size: Target model size (e.g., 'medium', 'large')
+
+        Returns:
+            True if system can handle the target model size
+        """
+        preferred_models = self.get_preferred_models()
+
+        # If target model is in preferred list, system should handle it
+        if target_model_size in preferred_models:
+            return True
+
+        # Check if target is larger than current but still within capabilities
+        size_order = ["small", "medium", "large"]
+        try:
+            current_idx = size_order.index(current_model_size)
+            target_idx = size_order.index(target_model_size)
+
+            # Only allow upgrade if target is in preferred models
+            return target_idx <= max(
+                [
+                    size_order.index(size)
+                    for size in preferred_models
+                    if size in size_order
+                ]
+            )
+
+        except ValueError:
+            return False
+
+    def get_model_recommendations(self) -> Dict[str, Any]:
+        """Get comprehensive model recommendations for current system.
+
+        Returns:
+            Dictionary with model recommendations and capabilities
+        """
+        tier = self.detect_current_tier()
+        tier_config = self.get_tier_config(tier)
+
+        return {
+            "detected_tier": tier,
+            "preferred_models": self.get_preferred_models(tier),
+            "model_size_range": tier_config.get("model_size_range", {}),
+            "performance_characteristics": self.get_performance_characteristics(tier),
+            "scaling_thresholds": self.get_scaling_thresholds(tier),
+            "gpu_required": self.is_gpu_required(tier),
+            "description": tier_config.get("description", ""),
+        }
+
+    def refresh_config(self) -> None:
+        """Reload tier configuration from file.
+
+        Useful for runtime configuration updates without restarting.
+        """
+        self._load_tier_config()
+        self._cached_tier = None  # Clear cache to force re-detection