diff --git a/.fides/db_dataset.yml b/.fides/db_dataset.yml
index 573599401e3..5659af9d491 100644
--- a/.fides/db_dataset.yml
+++ b/.fides/db_dataset.yml
@@ -697,6 +697,9 @@ dataset:
     - name: data_categories
       data_categories:
       - system.operations
+    - name: data_purposes
+      data_categories:
+      - system.operations
     - name: description
       data_categories:
       - system.operations
diff --git a/changelog/7674-dataset-data-purposes.yaml b/changelog/7674-dataset-data-purposes.yaml
new file mode 100644
index 00000000000..430a22e04ff
--- /dev/null
+++ b/changelog/7674-dataset-data-purposes.yaml
@@ -0,0 +1,4 @@
+type: Changed
+description: Updated fideslang to 3.1.3 to add `data_purposes` support at dataset, collection, field, and sub-field levels
+pr: 7674
+labels: []
diff --git a/pyproject.toml b/pyproject.toml
index 2b73ddf4594..7497dfd4a7e 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -55,7 +55,7 @@ dependencies = [
     "fastapi-cli~=0.0.16",
     "fastapi-pagination[sqlalchemy]==0.15.0",
     "fastapi[all]==0.123.3",
-    "fideslang==3.1.4a1",
+    "fideslang==3.1.3",
     "firebase-admin==5.3.0",
     "flower==2.0.1",
     "google-auth==2.48.0",
diff --git a/src/fides/api/alembic/migrations/versions/xx_2026_03_25_1500_c7e3a9b1d4f2_add_data_purposes_to_datasets.py b/src/fides/api/alembic/migrations/versions/xx_2026_03_25_1500_c7e3a9b1d4f2_add_data_purposes_to_datasets.py
new file mode 100644
index 00000000000..77b8bd3d6ed
--- /dev/null
+++ b/src/fides/api/alembic/migrations/versions/xx_2026_03_25_1500_c7e3a9b1d4f2_add_data_purposes_to_datasets.py
@@ -0,0 +1,27 @@
+"""add data_purposes column to ctl_datasets
+
+Revision ID: c7e3a9b1d4f2
+Revises: 25ffa8bf6a95
+Create Date: 2026-03-25 15:00:00.000000
+
+"""
+
+import sqlalchemy as sa
+from alembic import op
+
+# revision identifiers, used by Alembic.
+revision = "c7e3a9b1d4f2"
+down_revision = "25ffa8bf6a95"
+branch_labels = None
+depends_on = None
+
+
+def upgrade() -> None:
+    op.add_column(
+        "ctl_datasets",
+        sa.Column("data_purposes", sa.ARRAY(sa.String()), nullable=True),
+    )
+
+
+def downgrade() -> None:
+    op.drop_column("ctl_datasets", "data_purposes")
diff --git a/src/fides/api/models/sql_models.py b/src/fides/api/models/sql_models.py
index 316a845dddd..bc7e48eca0e 100644
--- a/src/fides/api/models/sql_models.py
+++ b/src/fides/api/models/sql_models.py
@@ -406,6 +406,7 @@ class Dataset(Base, FidesBase):
 
     meta = Column(JSON)
     data_categories = Column(ARRAY(String))
+    data_purposes = Column(ARRAY(String))
     collections = Column(JSON)
     fides_meta = Column(JSON)
 
diff --git a/src/fides/service/connection/merge_configs_util.py b/src/fides/service/connection/merge_configs_util.py
index 0649c2f4ae0..7815c5304b5 100644
--- a/src/fides/service/connection/merge_configs_util.py
+++ b/src/fides/service/connection/merge_configs_util.py
@@ -328,14 +328,17 @@ def merge_datasets(
     """
     stored_dataset_copy = copy.deepcopy(stored_dataset)
     upcoming_dataset_copy = copy.deepcopy(upcoming_dataset)
+    customer_dataset_copy = copy.deepcopy(customer_dataset)
 
     normalized_stored_dataset = normalize_dataset(stored_dataset_copy, "stored")
     normalized_upcoming_dataset = normalize_dataset(upcoming_dataset_copy, "upcoming")
+    normalized_customer_dataset = normalize_dataset(customer_dataset_copy, "customer")
     if normalized_stored_dataset is None or normalized_upcoming_dataset is None:
         return upcoming_dataset
 
     stored_dataset_copy = normalized_stored_dataset
     upcoming_dataset_copy = normalized_upcoming_dataset
+    customer_dataset = normalized_customer_dataset or customer_dataset
 
     # convert dataset to yaml string and then replace the instance key placeholder
     wrapped_dataset = {"dataset": [stored_dataset_copy]}
diff --git a/uv.lock b/uv.lock
index e004c27b013..f192dae6af3 100644
--- a/uv.lock
+++ b/uv.lock
@@ -1102,7 +1102,7 @@ requires-dist = [
     { name = "fastapi", extras = ["all"], specifier = "==0.123.3" },
     { name = "fastapi-cli", specifier = "~=0.0.16" },
     { name = "fastapi-pagination", extras = ["sqlalchemy"], specifier = "==0.15.0" },
-    { name = "fideslang", specifier = "==3.1.4a1" },
+    { name = "fideslang", specifier = "==3.1.3" },
     { name = "filelock", specifier = "~=3.20.0" },
     { name = "firebase-admin", specifier = "==5.3.0" },
     { name = "flower", specifier = "==2.0.1" },
@@ -1400,16 +1400,16 @@ wheels = [
 
 [[package]]
 name = "fideslang"
-version = "3.1.4a1"
+version = "3.1.3"
 source = { registry = "https://pypi.org/simple" }
 dependencies = [
     { name = "packaging" },
     { name = "pydantic" },
     { name = "pyyaml" },
 ]
-sdist = { url = "https://files.pythonhosted.org/packages/e6/25/f40b2357daf0ebefa234b301a0c33154ea3f76030b82dffa5b39f5e44067/fideslang-3.1.4a1.tar.gz", hash = "sha256:d03f07f4a83fa3ef733c17d2e4891611beec9598288a17e2371403240b5412c4", size = 201457, upload-time = "2025-12-18T02:01:27.318Z" }
+sdist = { url = "https://files.pythonhosted.org/packages/b0/b3/7f7867a074975af22b4f48f19fac52ef1eda362cef74ea00285bc73324d2/fideslang-3.1.3.tar.gz", hash = "sha256:e1a1b377da21b7521df3aeacaadd0c19c3f6367d65a5f97291f9aefcf498fed2", size = 201399, upload-time = "2026-03-25T17:36:28.501Z" }
 wheels = [
-    { url = "https://files.pythonhosted.org/packages/0a/12/9563420acabd163519bac3a735ea9776ed2c0e87463742c5a3626045509f/fideslang-3.1.4a1-py3-none-any.whl", hash = "sha256:0f82282593a6ebcef0965e66b9296fbf89a42b2177e77a8252ee755f18013813", size = 47723, upload-time = "2025-12-18T02:01:25.959Z" },
+    { url = "https://files.pythonhosted.org/packages/ee/3a/8882bada1bf5c65909e5db43bdebcf57db9bded8677a4129b4a1fe382a7a/fideslang-3.1.3-py3-none-any.whl", hash = "sha256:6741f88b05c924beb103a1a2cd742f64749145f5fe706dcd2b150fafa9cf6365", size = 47592, upload-time = "2026-03-25T17:36:27.121Z" },
 ]
 
 [[package]]