diff --git a/openedx/core/djangoapps/content/search/api.py b/openedx/core/djangoapps/content/search/api.py
index 49bf4be7687d..9b57a9c70938 100644
--- a/openedx/core/djangoapps/content/search/api.py
+++ b/openedx/core/djangoapps/content/search/api.py
@@ -17,37 +17,39 @@
 from meilisearch import Client as MeilisearchClient
 from meilisearch.errors import MeilisearchApiError, MeilisearchError
 from meilisearch.models.task import TaskInfo
-from opaque_keys.edx.keys import UsageKey, OpaqueKey
+from opaque_keys import OpaqueKey
+from opaque_keys.edx.keys import UsageKey
 from opaque_keys.edx.locator import (
     LibraryCollectionLocator,
     LibraryContainerLocator,
     LibraryLocatorV2,
 )
 from openedx_learning.api import authoring as authoring_api
-from common.djangoapps.student.roles import GlobalStaff
 from rest_framework.request import Request
+
 from common.djangoapps.student.role_helpers import get_course_roles
+from common.djangoapps.student.roles import GlobalStaff
 from openedx.core.djangoapps.content.course_overviews.models import CourseOverview
-from openedx.core.djangoapps.content.search.models import get_access_ids_for_request, IncrementalIndexCompleted
 from openedx.core.djangoapps.content.search.index_config import (
     INDEX_DISTINCT_ATTRIBUTE,
     INDEX_FILTERABLE_ATTRIBUTES,
-    INDEX_SEARCHABLE_ATTRIBUTES,
-    INDEX_SORTABLE_ATTRIBUTES,
     INDEX_RANKING_RULES,
+    INDEX_SEARCHABLE_ATTRIBUTES,
+    INDEX_SORTABLE_ATTRIBUTES
 )
+from openedx.core.djangoapps.content.search.models import IncrementalIndexCompleted, get_access_ids_for_request
 from openedx.core.djangoapps.content_libraries import api as lib_api
 from xmodule.modulestore.django import modulestore
 
 from .documents import (
     Fields,
     meili_id_from_opaque_key,
-    searchable_doc_for_course_block,
+    searchable_doc_collections,
     searchable_doc_for_collection,
     searchable_doc_for_container,
+    searchable_doc_for_course_block,
     searchable_doc_for_library_block,
     searchable_doc_for_key,
-    searchable_doc_collections,
     searchable_doc_tags,
     searchable_doc_tags_for_collection,
 )
@@ -492,6 +494,7 @@ def index_container_batch(batch, num_done, library_key) -> int:
                     )
                     doc = searchable_doc_for_container(container_key)
                     doc.update(searchable_doc_tags(container_key))
+                    doc.update(searchable_doc_collections(container_key))
                     docs.append(doc)
                 except Exception as err:  # pylint: disable=broad-except
                     status_cb(f"Error indexing container {container.key}: {err}")
@@ -722,7 +725,7 @@ def upsert_library_collection_index_doc(collection_key: LibraryCollectionLocator
 
         _delete_index_doc(doc[Fields.id])
 
-        update_components = True
+        update_items = True
 
     # Hard-deleted collections are also deleted from the index,
     # but their components are automatically updated as part of the deletion process, so we don't have to.
@@ -735,15 +738,17 @@ def upsert_library_collection_index_doc(collection_key: LibraryCollectionLocator
     else:
         already_indexed = _get_document_from_index(doc[Fields.id])
         if not already_indexed:
-            update_components = True
+            update_items = True
 
         _update_index_docs([doc])
 
     # Asynchronously update the collection's components "collections" field
-    if update_components:
-        from .tasks import update_library_components_collections as update_task
+    if update_items:
+        from .tasks import update_library_components_collections as update_components_task
+        from .tasks import update_library_containers_collections as update_containers_task
 
-        update_task.delay(str(collection_key))
+        update_components_task.delay(str(collection_key))
+        update_containers_task.delay(str(collection_key))
 
 
 def update_library_components_collections(
@@ -781,6 +786,41 @@ def update_library_components_collections(
         _update_index_docs(docs)
 
 
+def update_library_containers_collections(
+    collection_key: LibraryCollectionLocator,
+    batch_size: int = 1000,
+) -> None:
+    """
+    Updates the "collections" field for all containers associated with a given Library Collection.
+
+    Because there may be a lot of containers, we send these updates to Meilisearch in batches.
+    """
+    library_key = collection_key.library_key
+    library = lib_api.get_library(library_key)
+    containers = authoring_api.get_collection_containers(
+        library.learning_package_id,
+        collection_key.collection_id,
+    )
+
+    paginator = Paginator(containers, batch_size)
+    for page in paginator.page_range:
+        docs = []
+
+        for container in paginator.page(page).object_list:
+            container_key = lib_api.library_container_locator(
+                library_key,
+                container,
+            )
+            doc = searchable_doc_collections(container_key)
+            docs.append(doc)
+
+        log.info(
+            f"Updating document.collections for library {library_key} containers"
+            f" page {page} / {paginator.num_pages}"
+        )
+        _update_index_docs(docs)
+
+
 def upsert_library_container_index_doc(container_key: LibraryContainerLocator) -> None:
     """
     Creates, updates, or deletes the document for the given Library Container in the search index.
@@ -827,12 +867,12 @@ def upsert_content_object_tags_index_doc(key: OpaqueKey):
     _update_index_docs([doc])
 
 
-def upsert_block_collections_index_docs(usage_key: UsageKey):
+def upsert_item_collections_index_docs(opaque_key: OpaqueKey):
     """
-    Updates the collections data in documents for the given Course/Library block
+    Updates the collections data in documents for the given Course/Library block, or Container
     """
-    doc = {Fields.id: meili_id_from_opaque_key(usage_key)}
-    doc.update(searchable_doc_collections(usage_key))
+    doc = {Fields.id: meili_id_from_opaque_key(opaque_key)}
+    doc.update(searchable_doc_collections(opaque_key))
     _update_index_docs([doc])
 
 
diff --git a/openedx/core/djangoapps/content/search/documents.py b/openedx/core/djangoapps/content/search/documents.py
index 1c093034271d..c07048057a3f 100644
--- a/openedx/core/djangoapps/content/search/documents.py
+++ b/openedx/core/djangoapps/content/search/documents.py
@@ -309,7 +309,7 @@ def _tags_for_content_object(object_id: OpaqueKey) -> dict:
     return {Fields.tags: result}
 
 
-def _collections_for_content_object(object_id: UsageKey | LearningContextKey) -> dict:
+def _collections_for_content_object(object_id: OpaqueKey) -> dict:
     """
     Given an XBlock, course, library, etc., get the collections for its index doc.
 
@@ -340,13 +340,23 @@ def _collections_for_content_object(object_id: UsageKey | LearningContextKey) ->
     # Gather the collections associated with this object
     collections = None
     try:
-        component = lib_api.get_component_from_usage_key(object_id)
-        collections = authoring_api.get_entity_collections(
-            component.learning_package_id,
-            component.key,
-        )
+        if isinstance(object_id, UsageKey):
+            component = lib_api.get_component_from_usage_key(object_id)
+            collections = authoring_api.get_entity_collections(
+                component.learning_package_id,
+                component.key,
+            )
+        elif isinstance(object_id, LibraryContainerLocator):
+            container = lib_api.get_container_from_key(object_id)
+            collections = authoring_api.get_entity_collections(
+                container.publishable_entity.learning_package_id,
+                container.key,
+            )
+        else:
+            log.warning(f"Unexpected key type for {object_id}")
+
     except ObjectDoesNotExist:
-        log.warning(f"No component found for {object_id}")
+        log.warning(f"No library item found for {object_id}")
 
     if not collections:
         return result
@@ -438,13 +448,13 @@ def searchable_doc_tags(key: OpaqueKey) -> dict:
     return doc
 
 
-def searchable_doc_collections(usage_key: UsageKey) -> dict:
+def searchable_doc_collections(opaque_key: OpaqueKey) -> dict:
     """
     Generate a dictionary document suitable for ingestion into a search engine
     like Meilisearch or Elasticsearch, with the collections data for the given content object.
     """
-    doc = searchable_doc_for_key(usage_key)
-    doc.update(_collections_for_content_object(usage_key))
+    doc = searchable_doc_for_key(opaque_key)
+    doc.update(_collections_for_content_object(opaque_key))
 
     return doc
 
diff --git a/openedx/core/djangoapps/content/search/handlers.py b/openedx/core/djangoapps/content/search/handlers.py
index d817de1519bd..998b2ef870ab 100644
--- a/openedx/core/djangoapps/content/search/handlers.py
+++ b/openedx/core/djangoapps/content/search/handlers.py
@@ -40,9 +40,9 @@
 
 from .api import (
     only_if_meilisearch_enabled,
-    upsert_block_collections_index_docs,
     upsert_content_object_tags_index_doc,
     upsert_collection_tags_index_docs,
+    upsert_item_collections_index_docs,
 )
 from .tasks import (
     delete_library_block_index_doc,
@@ -211,15 +211,15 @@ def content_object_associations_changed_handler(**kwargs) -> None:
 
     try:
         # Check if valid course or library block
-        usage_key = UsageKey.from_string(str(content_object.object_id))
+        opaque_key = UsageKey.from_string(str(content_object.object_id))
     except InvalidKeyError:
         try:
             # Check if valid library collection
-            usage_key = LibraryCollectionLocator.from_string(str(content_object.object_id))
+            opaque_key = LibraryCollectionLocator.from_string(str(content_object.object_id))
         except InvalidKeyError:
             try:
                 # Check if valid library container
-                usage_key = LibraryContainerLocator.from_string(str(content_object.object_id))
+                opaque_key = LibraryContainerLocator.from_string(str(content_object.object_id))
             except InvalidKeyError:
                 # Invalid content object id
                 log.error("Received invalid content object id")
@@ -228,12 +228,12 @@ def content_object_associations_changed_handler(**kwargs) -> None:
     # This event's changes may contain both "tags" and "collections", but this will happen rarely, if ever.
     # So we allow a potential double "upsert" here.
     if not content_object.changes or "tags" in content_object.changes:
-        if isinstance(usage_key, LibraryCollectionLocator):
-            upsert_collection_tags_index_docs(usage_key)
+        if isinstance(opaque_key, LibraryCollectionLocator):
+            upsert_collection_tags_index_docs(opaque_key)
         else:
-            upsert_content_object_tags_index_doc(usage_key)
+            upsert_content_object_tags_index_doc(opaque_key)
     if not content_object.changes or "collections" in content_object.changes:
-        upsert_block_collections_index_docs(usage_key)
+        upsert_item_collections_index_docs(opaque_key)
 
 
 @receiver(LIBRARY_CONTAINER_CREATED)
diff --git a/openedx/core/djangoapps/content/search/tasks.py b/openedx/core/djangoapps/content/search/tasks.py
index 48fc6b327c0a..a1d47fc6f92a 100644
--- a/openedx/core/djangoapps/content/search/tasks.py
+++ b/openedx/core/djangoapps/content/search/tasks.py
@@ -119,6 +119,20 @@ def update_library_components_collections(collection_key_str: str) -> None:
     api.update_library_components_collections(collection_key)
 
 
+@shared_task(base=LoggedTask, autoretry_for=(MeilisearchError, ConnectionError))
+@set_code_owner_attribute
+def update_library_containers_collections(collection_key_str: str) -> None:
+    """
+    Celery task to update the "collections" field for containers in the given content library collection.
+    """
+    collection_key = LibraryCollectionLocator.from_string(collection_key_str)
+    library_key = collection_key.library_key
+
+    log.info("Updating document.collections for library %s collection %s containers", library_key, collection_key)
+
+    api.update_library_containers_collections(collection_key)
+
+
 @shared_task(base=LoggedTask, autoretry_for=(MeilisearchError, ConnectionError))
 @set_code_owner_attribute
 def update_library_container_index_doc(container_key_str: str) -> None:
diff --git a/openedx/core/djangoapps/content/search/tests/test_api.py b/openedx/core/djangoapps/content/search/tests/test_api.py
index bd9fb803c1aa..8a486aa99c60 100644
--- a/openedx/core/djangoapps/content/search/tests/test_api.py
+++ b/openedx/core/djangoapps/content/search/tests/test_api.py
@@ -265,6 +265,7 @@ def test_reindex_meilisearch(self, mock_meilisearch):
         doc_collection["tags"] = {}
         doc_unit = copy.deepcopy(self.unit_dict)
         doc_unit["tags"] = {}
+        doc_unit["collections"] = {'display_name': [], 'key': []}
 
         api.rebuild_index()
         assert mock_meilisearch.return_value.index.return_value.add_documents.call_count == 4
@@ -296,6 +297,7 @@ def test_reindex_meilisearch_incremental(self, mock_meilisearch):
         doc_collection["tags"] = {}
         doc_unit = copy.deepcopy(self.unit_dict)
         doc_unit["tags"] = {}
+        doc_unit["collections"] = {"display_name": [], "key": []}
 
         api.rebuild_index(incremental=True)
         assert mock_meilisearch.return_value.index.return_value.add_documents.call_count == 4
@@ -584,16 +586,16 @@ def test_index_library_block_and_collections(self, mock_meilisearch):
                 description="Second Collection",
             )
 
-        # Add Problem1 to both Collections (these internally call `upsert_block_collections_index_docs` and
+        # Add Problem1 to both Collections (these internally call `upsert_item_collections_index_docs` and
         # `upsert_library_collection_index_doc`)
         # (adding in reverse order to test sorting of collection tag)
         updated_date = datetime(2023, 6, 7, 8, 9, 10, tzinfo=timezone.utc)
         with freeze_time(updated_date):
             for collection in (collection2, collection1):
-                library_api.update_library_collection_components(
+                library_api.update_library_collection_items(
                     self.library.key,
                     collection_key=collection.key,
-                    usage_keys=[
+                    opaque_keys=[
                         self.problem1.usage_key,
                     ],
                 )
@@ -776,16 +778,17 @@ def test_delete_collection(self, mock_meilisearch):
         # Add a component to the collection
         updated_date = datetime(2023, 6, 7, 8, 9, 10, tzinfo=timezone.utc)
         with freeze_time(updated_date):
-            library_api.update_library_collection_components(
+            library_api.update_library_collection_items(
                 self.library.key,
                 collection_key=self.collection.key,
-                usage_keys=[
+                opaque_keys=[
                     self.problem1.usage_key,
+                    self.unit.container_key
                 ],
             )
 
         doc_collection = copy.deepcopy(self.collection_dict)
-        doc_collection["num_children"] = 1
+        doc_collection["num_children"] = 2
         doc_collection["modified"] = updated_date.timestamp()
         doc_problem_with_collection = {
             "id": self.doc_problem1["id"],
@@ -794,13 +797,21 @@ def test_delete_collection(self, mock_meilisearch):
                 "key": [self.collection.key],
             },
         }
+        doc_unit_with_collection = {
+            "id": self.unit_dict["id"],
+            "collections": {
+                "display_name": [self.collection.title],
+                "key": [self.collection.key],
+            },
+        }
 
         # Should update the collection and its component
-        assert mock_meilisearch.return_value.index.return_value.update_documents.call_count == 2
+        assert mock_meilisearch.return_value.index.return_value.update_documents.call_count == 3
         mock_meilisearch.return_value.index.return_value.update_documents.assert_has_calls(
             [
                 call([doc_collection]),
                 call([doc_problem_with_collection]),
+                call([doc_unit_with_collection]),
             ],
             any_order=True,
         )
@@ -816,15 +827,23 @@ def test_delete_collection(self, mock_meilisearch):
             "id": self.doc_problem1["id"],
             "collections": {'display_name': [], 'key': []},
         }
+        doc_unit_without_collection = {
+            "id": self.unit_dict["id"],
+            "collections": {'display_name': [], 'key': []},
+        }
 
         # Should delete the collection document
         mock_meilisearch.return_value.index.return_value.delete_document.assert_called_once_with(
             self.collection_dict["id"],
         )
         # ...and update the component's "collections" field
-        mock_meilisearch.return_value.index.return_value.update_documents.assert_called_once_with([
-            doc_problem_without_collection,
-        ])
+        mock_meilisearch.return_value.index.return_value.update_documents.assert_has_calls(
+            [
+                call([doc_problem_without_collection]),
+                call([doc_unit_without_collection]),
+            ],
+            any_order=True,
+        )
         mock_meilisearch.return_value.index.reset_mock()
 
         # We need to mock get_document here so that when we restore the collection below, meilisearch knows the
@@ -840,15 +859,16 @@ def test_delete_collection(self, mock_meilisearch):
             )
 
         doc_collection = copy.deepcopy(self.collection_dict)
-        doc_collection["num_children"] = 1
+        doc_collection["num_children"] = 2
         doc_collection["modified"] = restored_date.timestamp()
 
         # Should update the collection and its component's "collections" field
-        assert mock_meilisearch.return_value.index.return_value.update_documents.call_count == 2
+        assert mock_meilisearch.return_value.index.return_value.update_documents.call_count == 3
         mock_meilisearch.return_value.index.return_value.update_documents.assert_has_calls(
             [
                 call([doc_collection]),
                 call([doc_problem_with_collection]),
+                call([doc_unit_with_collection]),
             ],
             any_order=True,
         )
@@ -866,9 +886,13 @@ def test_delete_collection(self, mock_meilisearch):
             self.collection_dict["id"],
         )
         # ...and cascade delete updates the "collections" field for the associated components
-        mock_meilisearch.return_value.index.return_value.update_documents.assert_called_once_with([
-            doc_problem_without_collection,
-        ])
+        mock_meilisearch.return_value.index.return_value.update_documents.assert_has_calls(
+            [
+                call([doc_problem_without_collection]),
+                call([doc_unit_without_collection]),
+            ],
+            any_order=True,
+        )
 
     @override_settings(MEILISEARCH_ENABLED=True)
     def test_delete_index_container(self, mock_meilisearch):
diff --git a/openedx/core/djangoapps/content/search/tests/test_documents.py b/openedx/core/djangoapps/content/search/tests/test_documents.py
index 1f6c56f7d691..c4c3213ce33d 100644
--- a/openedx/core/djangoapps/content/search/tests/test_documents.py
+++ b/openedx/core/djangoapps/content/search/tests/test_documents.py
@@ -102,10 +102,10 @@ def setUpClass(cls):
             )
 
             # Add the problem block to the collection
-            library_api.update_library_collection_components(
+            library_api.update_library_collection_items(
                 cls.library.key,
                 collection_key="TOY_COLLECTION",
-                usage_keys=[
+                opaque_keys=[
                     cls.library_block.usage_key,
                 ]
             )
diff --git a/openedx/core/djangoapps/content_libraries/api/blocks.py b/openedx/core/djangoapps/content_libraries/api/blocks.py
index 04649a83503f..5a328594cc21 100644
--- a/openedx/core/djangoapps/content_libraries/api/blocks.py
+++ b/openedx/core/djangoapps/content_libraries/api/blocks.py
@@ -3,52 +3,46 @@
 
 These methods don't enforce permissions (only the REST APIs do).
 """
-from dataclasses import dataclass
-from datetime import datetime, timezone
 import logging
 import mimetypes
+from dataclasses import dataclass
+from datetime import datetime, timezone
 
 from django.conf import settings
 from django.core.exceptions import ObjectDoesNotExist
 from django.core.validators import validate_unicode_slug
-from django.db.models import QuerySet
 from django.db import transaction
-from django.utils.translation import gettext as _
+from django.db.models import QuerySet
 from django.urls import reverse
+from django.utils.translation import gettext as _
 from lxml import etree
-from opaque_keys.edx.locator import LibraryLocatorV2, LibraryUsageLocatorV2
 from opaque_keys.edx.keys import UsageKeyV2
+from opaque_keys.edx.locator import LibraryLocatorV2, LibraryUsageLocatorV2
 from openedx_events.content_authoring.data import (
+    ContentObjectChangedData,
     LibraryBlockData,
     LibraryCollectionData,
-    LibraryContainerData,
-    ContentObjectChangedData,
+    LibraryContainerData
 )
 from openedx_events.content_authoring.signals import (
+    CONTENT_OBJECT_ASSOCIATIONS_CHANGED,
     LIBRARY_BLOCK_CREATED,
     LIBRARY_BLOCK_DELETED,
     LIBRARY_BLOCK_UPDATED,
     LIBRARY_COLLECTION_UPDATED,
-    LIBRARY_CONTAINER_UPDATED,
-    CONTENT_OBJECT_ASSOCIATIONS_CHANGED,
+    LIBRARY_CONTAINER_UPDATED
 )
-from xblock.core import XBlock
-
 from openedx_learning.api import authoring as authoring_api
-from openedx_learning.api.authoring_models import (
-    Component,
-    ComponentVersion,
-    LearningPackage,
-    MediaType,
-)
+from openedx_learning.api.authoring_models import Component, ComponentVersion, LearningPackage, MediaType
+from xblock.core import XBlock
 
+from openedx.core.djangoapps.content_libraries import api as lib_api
 from openedx.core.djangoapps.xblock.api import (
     get_component_from_usage_key,
     get_xblock_app_config,
-    xblock_type_display_name,
+    xblock_type_display_name
 )
 from openedx.core.types import User as UserType
-from openedx.core.djangoapps.content_libraries import api as lib_api
 
 from ..models import ContentLibrary
 from ..permissions import CAN_EDIT_THIS_CONTENT_LIBRARY
diff --git a/openedx/core/djangoapps/content_libraries/api/collections.py b/openedx/core/djangoapps/content_libraries/api/collections.py
index f94c9e5401a1..8e20710ab86a 100644
--- a/openedx/core/djangoapps/content_libraries/api/collections.py
+++ b/openedx/core/djangoapps/content_libraries/api/collections.py
@@ -3,35 +3,28 @@
 ==================================
 """
 from django.db import IntegrityError
+from opaque_keys import OpaqueKey
 from opaque_keys.edx.keys import BlockTypeKey, UsageKeyV2
-from opaque_keys.edx.locator import (
-    LibraryLocatorV2,
-    LibraryCollectionLocator,
-)
-
+from opaque_keys.edx.locator import LibraryCollectionLocator, LibraryContainerLocator, LibraryLocatorV2
 from openedx_events.content_authoring.data import LibraryCollectionData
 from openedx_events.content_authoring.signals import LIBRARY_COLLECTION_UPDATED
-
 from openedx_learning.api import authoring as authoring_api
-from openedx_learning.api.authoring_models import (
-    Collection,
-    Component,
-    PublishableEntity,
-)
+from openedx_learning.api.authoring_models import Collection, Component, PublishableEntity
 
+from ..models import ContentLibrary
 from .exceptions import (
     ContentLibraryBlockNotFound,
     ContentLibraryCollectionNotFound,
+    ContentLibraryContainerNotFound,
     LibraryCollectionAlreadyExists,
 )
-from ..models import ContentLibrary
 
 # The public API is only the following symbols:
 __all__ = [
     "create_library_collection",
     "update_library_collection",
-    "update_library_collection_components",
-    "set_library_component_collections",
+    "update_library_collection_items",
+    "set_library_item_collections",
     "library_collection_locator",
     "get_library_collection_from_locator",
 ]
@@ -103,27 +96,28 @@ def update_library_collection(
     return collection
 
 
-def update_library_collection_components(
+def update_library_collection_items(
     library_key: LibraryLocatorV2,
     collection_key: str,
     *,
-    usage_keys: list[UsageKeyV2],
+    opaque_keys: list[OpaqueKey],
     created_by: int | None = None,
     remove=False,
     # As an optimization, callers may pass in a pre-fetched ContentLibrary instance
     content_library: ContentLibrary | None = None,
 ) -> Collection:
     """
-    Associates the Collection with Components for the given UsageKeys.
+    Associates the Collection with items (XBlocks, Containers) for the given OpaqueKeys.
 
-    By default the Components are added to the Collection.
-    If remove=True, the Components are removed from the Collection.
+    By default the items are added to the Collection.
+    If remove=True, the items are removed from the Collection.
 
     If you've already fetched the ContentLibrary, pass it in to avoid refetching.
 
     Raises:
     * ContentLibraryCollectionNotFound if no Collection with the given pk is found in the given library.
-    * ContentLibraryBlockNotFound if any of the given usage_keys don't match Components in the given library.
+    * ContentLibraryBlockNotFound if any of the given opaque_keys don't match Components in the given library.
+    * ContentLibraryContainerNotFound if any of the given opaque_keys don't match Containers in the given library.
 
     Returns the updated Collection.
     """
@@ -134,26 +128,38 @@ def update_library_collection_components(
     assert content_library.library_key == library_key
 
     # Fetch the Component.key values for the provided UsageKeys.
-    component_keys = []
-    for usage_key in usage_keys:
-        # Parse the block_family from the key to use as namespace.
-        block_type = BlockTypeKey.from_string(str(usage_key))
-
-        try:
-            component = authoring_api.get_component_by_key(
-                content_library.learning_package_id,
-                namespace=block_type.block_family,
-                type_name=usage_key.block_type,
-                local_key=usage_key.block_id,
-            )
-        except Component.DoesNotExist as exc:
-            raise ContentLibraryBlockNotFound(usage_key) from exc
+    item_keys = []
+    for opaque_key in opaque_keys:
+        if isinstance(opaque_key, LibraryContainerLocator):
+            try:
+                container = authoring_api.get_container_by_key(
+                    content_library.learning_package_id,
+                    key=opaque_key.container_id,
+                )
+            except Collection.DoesNotExist as exc:
+                raise ContentLibraryContainerNotFound(opaque_key) from exc
+
+            item_keys.append(container.key)
+        elif isinstance(opaque_key, UsageKeyV2):
+            # Parse the block_family from the key to use as namespace.
+            block_type = BlockTypeKey.from_string(str(opaque_key))
+            try:
+                component = authoring_api.get_component_by_key(
+                    content_library.learning_package_id,
+                    namespace=block_type.block_family,
+                    type_name=opaque_key.block_type,
+                    local_key=opaque_key.block_id,
+                )
+            except Component.DoesNotExist as exc:
+                raise ContentLibraryBlockNotFound(opaque_key) from exc
+
+            item_keys.append(component.key)
+        else:
+            # This should never happen, but just in case.
+            raise ValueError(f"Invalid opaque_key: {opaque_key}")
 
-        component_keys.append(component.key)
-
-    # Note: Component.key matches its PublishableEntity.key
     entities_qset = PublishableEntity.objects.filter(
-        key__in=component_keys,
+        key__in=item_keys,
     )
 
     if remove:
@@ -173,19 +179,19 @@ def update_library_collection_components(
     return collection
 
 
-def set_library_component_collections(
+def set_library_item_collections(
     library_key: LibraryLocatorV2,
-    component: Component,
+    publishable_entity: PublishableEntity,
     *,
     collection_keys: list[str],
     created_by: int | None = None,
     # As an optimization, callers may pass in a pre-fetched ContentLibrary instance
     content_library: ContentLibrary | None = None,
-) -> Component:
+) -> PublishableEntity:
     """
-    It Associates the component with collections for the given collection keys.
+    It Associates the publishable_entity with collections for the given collection keys.
 
-    Only collections in queryset are associated with component, all previous component-collections
+    Only collections in queryset are associated with publishable_entity, all previous publishable_entity-collections
     associations are removed.
 
     If you've already fetched the ContentLibrary, pass it in to avoid refetching.
@@ -193,7 +199,7 @@ def set_library_component_collections(
     Raises:
     * ContentLibraryCollectionNotFound if any of the given collection_keys don't match Collections in the given library.
 
-    Returns the updated Component.
+    Returns the updated PublishableEntity.
     """
     if not content_library:
         content_library = ContentLibrary.objects.get_by_key(library_key)  # type: ignore[attr-defined]
@@ -207,8 +213,7 @@ def set_library_component_collections(
     )
 
     affected_collections = authoring_api.set_collections(
-        content_library.learning_package_id,
-        component,
+        publishable_entity,
         collection_qs,
         created_by=created_by,
     )
@@ -226,7 +231,7 @@ def set_library_component_collections(
             )
         )
 
-    return component
+    return publishable_entity
 
 
 def library_collection_locator(
diff --git a/openedx/core/djangoapps/content_libraries/api/containers.py b/openedx/core/djangoapps/content_libraries/api/containers.py
index 31eae20e7fa6..526a556a8ef0 100644
--- a/openedx/core/djangoapps/content_libraries/api/containers.py
+++ b/openedx/core/djangoapps/content_libraries/api/containers.py
@@ -9,20 +9,19 @@
 from uuid import uuid4
 
 from django.utils.text import slugify
-from opaque_keys.edx.locator import (
-    LibraryContainerLocator,
-    LibraryLocatorV2,
-    UsageKeyV2,
-    LibraryUsageLocatorV2,
-)
-from openedx_events.content_authoring.data import LibraryContainerData
+from opaque_keys.edx.keys import UsageKeyV2
+from opaque_keys.edx.locator import LibraryContainerLocator, LibraryLocatorV2, LibraryUsageLocatorV2
+from openedx_events.content_authoring.data import ContentObjectChangedData, LibraryCollectionData, LibraryContainerData
 from openedx_events.content_authoring.signals import (
+    CONTENT_OBJECT_ASSOCIATIONS_CHANGED,
+    LIBRARY_COLLECTION_UPDATED,
     LIBRARY_CONTAINER_CREATED,
     LIBRARY_CONTAINER_DELETED,
     LIBRARY_CONTAINER_UPDATED,
 )
 from openedx_learning.api import authoring as authoring_api
 from openedx_learning.api.authoring_models import Container
+from openedx.core.djangoapps.content_libraries.api.collections import library_collection_locator
 
 from openedx.core.djangoapps.xblock.api import get_component_from_usage_key
 
@@ -30,13 +29,13 @@
 from .exceptions import ContentLibraryContainerNotFound
 from .libraries import LibraryXBlockMetadata, PublishableItem
 
-
 # The public API is only the following symbols:
 __all__ = [
     # Models
     "ContainerMetadata",
     "ContainerType",
     # API methods
+    "get_container_from_key",
     "get_container",
     "create_container",
     "get_container_children",
@@ -122,7 +121,7 @@ def library_container_locator(
     )
 
 
-def _get_container(container_key: LibraryContainerLocator, isDeleted=False) -> Container:
+def get_container_from_key(container_key: LibraryContainerLocator, isDeleted=False) -> Container:
     """
     Internal method to fetch the Container object from its LibraryContainerLocator
 
@@ -141,12 +140,23 @@ def _get_container(container_key: LibraryContainerLocator, isDeleted=False) -> C
     raise ContentLibraryContainerNotFound
 
 
-def get_container(container_key: LibraryContainerLocator) -> ContainerMetadata:
+def get_container(container_key: LibraryContainerLocator, include_collections=False) -> ContainerMetadata:
     """
     Get a container (a Section, Subsection, or Unit).
     """
-    container = _get_container(container_key)
-    container_meta = ContainerMetadata.from_container(container_key.library_key, container)
+    container = get_container_from_key(container_key)
+    if include_collections:
+        associated_collections = authoring_api.get_entity_collections(
+            container.publishable_entity.learning_package_id,
+            container_key.container_id,
+        ).values('key', 'title')
+    else:
+        associated_collections = None
+    container_meta = ContainerMetadata.from_container(
+        container_key.library_key,
+        container,
+        associated_collections=associated_collections,
+    )
     assert container_meta.container_type.value == container_key.container_type
     return container_meta
 
@@ -205,7 +215,7 @@ def update_container(
     """
     Update a container (e.g. a Unit) title.
     """
-    container = _get_container(container_key)
+    container = get_container_from_key(container_key)
     library_key = container_key.library_key
 
     assert container.unit
@@ -233,8 +243,13 @@ def delete_container(
 
     No-op if container doesn't exist or has already been soft-deleted.
     """
-    container = _get_container(container_key)
+    library_key = container_key.library_key
+    container = get_container_from_key(container_key)
 
+    affected_collections = authoring_api.get_entity_collections(
+        container.publishable_entity.learning_package_id,
+        container.key,
+    )
     authoring_api.soft_delete_draft(container.pk)
 
     LIBRARY_CONTAINER_DELETED.send_event(
@@ -243,14 +258,33 @@ def delete_container(
         )
     )
 
-    # TODO: trigger a LIBRARY_COLLECTION_UPDATED for each collection the container was in
+    # For each collection, trigger LIBRARY_COLLECTION_UPDATED signal and set background=True to trigger
+    # collection indexing asynchronously.
+    #
+    # To delete the container on collections
+    for collection in affected_collections:
+        LIBRARY_COLLECTION_UPDATED.send_event(
+            library_collection=LibraryCollectionData(
+                collection_key=library_collection_locator(
+                    library_key=library_key,
+                    collection_key=collection.key,
+                ),
+                background=True,
+            )
+        )
 
 
 def restore_container(container_key: LibraryContainerLocator) -> None:
     """
     Restore the specified library container.
     """
-    container = _get_container(container_key, isDeleted=True)
+    library_key = container_key.library_key
+    container = get_container_from_key(container_key, isDeleted=True)
+
+    affected_collections = authoring_api.get_entity_collections(
+        container.publishable_entity.learning_package_id,
+        container.key,
+    )
 
     authoring_api.set_draft_version(container.pk, container.versioning.latest.pk)
 
@@ -260,6 +294,28 @@ def restore_container(container_key: LibraryContainerLocator) -> None:
         )
     )
 
+    # Add tags and collections back to index
+    CONTENT_OBJECT_ASSOCIATIONS_CHANGED.send_event(
+        content_object=ContentObjectChangedData(
+            object_id=str(container_key),
+            changes=["collections", "tags"],
+        ),
+    )
+
+    # For each collection, trigger LIBRARY_COLLECTION_UPDATED signal and set background=True to trigger
+    # collection indexing asynchronously.
+    #
+    # To restore the container on collections
+    for collection in affected_collections:
+        LIBRARY_COLLECTION_UPDATED.send_event(
+            library_collection=LibraryCollectionData(
+                collection_key=library_collection_locator(
+                    library_key=library_key,
+                    collection_key=collection.key,
+                ),
+            )
+        )
+
 
 def get_container_children(
     container_key: LibraryContainerLocator,
@@ -268,7 +324,7 @@ def get_container_children(
     """
     Get the entities contained in the given container (e.g. the components/xblocks in a unit)
     """
-    container = _get_container(container_key)
+    container = get_container_from_key(container_key)
     if container_key.container_type == ContainerType.Unit.value:
         child_components = authoring_api.get_components_in_unit(container.unit, published=published)
         return [LibraryXBlockMetadata.from_component(
@@ -290,7 +346,7 @@ def get_container_children_count(
     """
     Get the count of entities contained in the given container (e.g. the components/xblocks in a unit)
     """
-    container = _get_container(container_key)
+    container = get_container_from_key(container_key)
     return authoring_api.get_container_children_count(container, published=published)
 
 
@@ -305,7 +361,7 @@ def update_container_children(
     """
     library_key = container_key.library_key
     container_type = container_key.container_type
-    container = _get_container(container_key)
+    container = get_container_from_key(container_key)
     match container_type:
         case ContainerType.Unit.value:
             components = [get_component_from_usage_key(key) for key in children_ids]  # type: ignore[arg-type]
diff --git a/openedx/core/djangoapps/content_libraries/rest_api/blocks.py b/openedx/core/djangoapps/content_libraries/rest_api/blocks.py
index 192b90964c0d..cf49f8068c02 100644
--- a/openedx/core/djangoapps/content_libraries/rest_api/blocks.py
+++ b/openedx/core/djangoapps/content_libraries/rest_api/blocks.py
@@ -1,12 +1,15 @@
 """
 Content Library REST APIs related to XBlocks/Components and their static assets
 """
+import edx_api_doc_tools as apidocs
 from django.core.exceptions import ObjectDoesNotExist
 from django.db.transaction import non_atomic_requests
 from django.http import Http404, HttpResponse, StreamingHttpResponse
 from django.urls import reverse
 from django.utils.decorators import method_decorator
 from drf_yasg.utils import swagger_auto_schema
+from opaque_keys.edx.locator import LibraryLocatorV2, LibraryUsageLocatorV2
+from openedx_learning.api import authoring as authoring_api
 from rest_framework import status
 from rest_framework.exceptions import NotFound, ValidationError
 from rest_framework.generics import GenericAPIView
@@ -14,22 +17,18 @@
 from rest_framework.response import Response
 from rest_framework.views import APIView
 
-import edx_api_doc_tools as apidocs
-from opaque_keys.edx.locator import LibraryLocatorV2, LibraryUsageLocatorV2
-from openedx_learning.api import authoring as authoring_api
-
 from openedx.core.djangoapps.content_libraries import api, permissions
 from openedx.core.djangoapps.content_libraries.rest_api.serializers import (
-    ContentLibraryComponentCollectionsUpdateSerializer,
+    ContentLibraryItemCollectionsUpdateSerializer,
     LibraryXBlockCreationSerializer,
     LibraryXBlockMetadataSerializer,
     LibraryXBlockOlxSerializer,
     LibraryXBlockStaticFileSerializer,
     LibraryXBlockStaticFilesSerializer,
 )
+from openedx.core.djangoapps.xblock import api as xblock_api
 from openedx.core.lib.api.view_utils import view_auth_classes
 from openedx.core.types.http import RestRequest
-from openedx.core.djangoapps.xblock import api as xblock_api
 
 from .libraries import LibraryApiPaginationDocs
 from .utils import convert_exceptions
@@ -259,13 +258,13 @@ def patch(self, request: RestRequest, usage_key_str) -> Response:
             permissions.CAN_EDIT_THIS_CONTENT_LIBRARY
         )
         component = api.get_component_from_usage_key(key)
-        serializer = ContentLibraryComponentCollectionsUpdateSerializer(data=request.data)
+        serializer = ContentLibraryItemCollectionsUpdateSerializer(data=request.data)
         serializer.is_valid(raise_exception=True)
 
         collection_keys = serializer.validated_data['collection_keys']
-        api.set_library_component_collections(
+        api.set_library_item_collections(
             library_key=key.lib_key,
-            component=component,
+            publishable_entity=component.publishable_entity,
             collection_keys=collection_keys,
             created_by=request.user.id,
             content_library=content_library,
diff --git a/openedx/core/djangoapps/content_libraries/rest_api/collections.py b/openedx/core/djangoapps/content_libraries/rest_api/collections.py
index c49822ae2f0f..d893d766d80f 100644
--- a/openedx/core/djangoapps/content_libraries/rest_api/collections.py
+++ b/openedx/core/djangoapps/content_libraries/rest_api/collections.py
@@ -22,7 +22,7 @@
 from .serializers import (
     ContentLibraryCollectionSerializer,
     ContentLibraryCollectionUpdateSerializer,
-    ContentLibraryComponentKeysSerializer,
+    ContentLibraryItemKeysSerializer,
 )
 from openedx.core.types.http import RestRequest
 
@@ -190,27 +190,27 @@ def restore(self, request: RestRequest, *args, **kwargs) -> Response:
         return Response(None, status=HTTP_204_NO_CONTENT)
 
     @convert_exceptions
-    @action(detail=True, methods=['delete', 'patch'], url_path='components', url_name='components-update')
-    def update_components(self, request: RestRequest, *args, **kwargs) -> Response:
+    @action(detail=True, methods=['delete', 'patch'], url_path='items', url_name='items-update')
+    def update_items(self, request: RestRequest, *args, **kwargs) -> Response:
         """
-        Adds (PATCH) or removes (DELETE) Components to/from a Collection.
+        Adds (PATCH) or removes (DELETE) items to/from a Collection.
 
-        Collection and Components must all be part of the given library/learning package.
+        Collection and items must all be part of the given library/learning package.
         """
         content_library = self.get_content_library()
         collection_key = kwargs["key"]
 
-        serializer = ContentLibraryComponentKeysSerializer(data=request.data)
+        serializer = ContentLibraryItemKeysSerializer(data=request.data)
         serializer.is_valid(raise_exception=True)
 
-        usage_keys = serializer.validated_data["usage_keys"]
-        api.update_library_collection_components(
+        opaque_keys = serializer.validated_data["usage_keys"]
+        api.update_library_collection_items(
             library_key=content_library.library_key,
             content_library=content_library,
             collection_key=collection_key,
-            usage_keys=usage_keys,
+            opaque_keys=opaque_keys,
             created_by=request.user.id,
             remove=(request.method == "DELETE"),
         )
 
-        return Response({'count': len(usage_keys)})
+        return Response({'count': len(opaque_keys)})
diff --git a/openedx/core/djangoapps/content_libraries/rest_api/containers.py b/openedx/core/djangoapps/content_libraries/rest_api/containers.py
index 3c65fc006bf6..6c76bf3a2dc6 100644
--- a/openedx/core/djangoapps/content_libraries/rest_api/containers.py
+++ b/openedx/core/djangoapps/content_libraries/rest_api/containers.py
@@ -18,6 +18,7 @@
 
 from openedx.core.djangoapps.content_libraries import api, permissions
 from openedx.core.lib.api.view_utils import view_auth_classes
+from openedx.core.types.http import RestRequest
 from . import serializers
 from .utils import convert_exceptions
 
@@ -80,7 +81,7 @@ def get(self, request, container_key: LibraryContainerLocator):
             request.user,
             permissions.CAN_VIEW_THIS_CONTENT_LIBRARY,
         )
-        container = api.get_container(container_key)
+        container = api.get_container(container_key, include_collections=True)
         return Response(serializers.LibraryContainerMetadataSerializer(container).data)
 
     @convert_exceptions
@@ -293,3 +294,37 @@ def post(self, request, container_key: LibraryContainerLocator) -> Response:
         )
         api.restore_container(container_key)
         return Response(None, status=HTTP_204_NO_CONTENT)
+
+
+@method_decorator(non_atomic_requests, name="dispatch")
+@view_auth_classes()
+class LibraryContainerCollectionsView(GenericAPIView):
+    """
+    View to set collections for a container.
+    """
+    @convert_exceptions
+    def patch(self, request: RestRequest, container_key: LibraryContainerLocator) -> Response:
+        """
+        Sets Collections for a Component.
+
+        Collection and Components must all be part of the given library/learning package.
+        """
+        content_library = api.require_permission_for_library_key(
+            container_key.library_key,
+            request.user,
+            permissions.CAN_EDIT_THIS_CONTENT_LIBRARY
+        )
+        container = api.get_container_from_key(container_key)
+        serializer = serializers.ContentLibraryItemCollectionsUpdateSerializer(data=request.data)
+        serializer.is_valid(raise_exception=True)
+
+        collection_keys = serializer.validated_data['collection_keys']
+        api.set_library_item_collections(
+            library_key=container_key.library_key,
+            publishable_entity=container.publishable_entity,
+            collection_keys=collection_keys,
+            created_by=request.user.id,
+            content_library=content_library,
+        )
+
+        return Response({'count': len(collection_keys)})
diff --git a/openedx/core/djangoapps/content_libraries/rest_api/serializers.py b/openedx/core/djangoapps/content_libraries/rest_api/serializers.py
index 46bec36e3c94..d171afe6ca0b 100644
--- a/openedx/core/djangoapps/content_libraries/rest_api/serializers.py
+++ b/openedx/core/djangoapps/content_libraries/rest_api/serializers.py
@@ -6,7 +6,9 @@
 from rest_framework import serializers
 from rest_framework.exceptions import ValidationError
 
+from opaque_keys import OpaqueKey
 from opaque_keys.edx.keys import UsageKeyV2
+from opaque_keys.edx.locator import LibraryContainerLocator
 from opaque_keys import InvalidKeyError
 
 from openedx_learning.api.authoring_models import Collection
@@ -357,9 +359,42 @@ class ContentLibraryComponentKeysSerializer(serializers.Serializer):
     usage_keys = serializers.ListField(child=UsageKeyV2Serializer(), allow_empty=False)
 
 
-class ContentLibraryComponentCollectionsUpdateSerializer(serializers.Serializer):
+class OpaqueKeySerializer(serializers.BaseSerializer):
     """
-    Serializer for adding/removing Collections to/from a Component.
+    Serializes a OpaqueKey with the correct class.
+    """
+    def to_representation(self, value: OpaqueKey) -> str:
+        """
+        Returns the OpaqueKey value as a string.
+        """
+        return str(value)
+
+    def to_internal_value(self, value: str) -> OpaqueKey:
+        """
+        Returns a UsageKeyV2 or a LibraryContainerLocator from the string value.
+
+        Raises ValidationError if invalid UsageKeyV2 or LibraryContainerLocator.
+        """
+        try:
+            return UsageKeyV2.from_string(value)
+        except InvalidKeyError:
+            try:
+                return LibraryContainerLocator.from_string(value)
+            except InvalidKeyError as err:
+                raise ValidationError from err
+
+
+class ContentLibraryItemKeysSerializer(serializers.Serializer):
+    """
+    Serializer for adding/removing items to/from a Collection.
+    """
+
+    usage_keys = serializers.ListField(child=OpaqueKeySerializer(), allow_empty=False)
+
+
+class ContentLibraryItemCollectionsUpdateSerializer(serializers.Serializer):
+    """
+    Serializer for adding/removing Collections to/from a Library Item (component, unit, etc..).
     """
 
     collection_keys = serializers.ListField(child=serializers.CharField(), allow_empty=True)
diff --git a/openedx/core/djangoapps/content_libraries/signal_handlers.py b/openedx/core/djangoapps/content_libraries/signal_handlers.py
index 08b30b10bba6..fe5489493641 100644
--- a/openedx/core/djangoapps/content_libraries/signal_handlers.py
+++ b/openedx/core/djangoapps/content_libraries/signal_handlers.py
@@ -7,25 +7,21 @@
 from django.conf import settings
 from django.db.models.signals import m2m_changed, post_delete, post_save
 from django.dispatch import receiver
-
-from opaque_keys import InvalidKeyError
+from opaque_keys import InvalidKeyError, OpaqueKey
 from opaque_keys.edx.locator import LibraryLocatorV2, LibraryUsageLocatorV2
-from openedx_events.content_authoring.data import (
-    ContentObjectChangedData,
-    LibraryCollectionData,
-)
+from openedx_events.content_authoring.data import ContentObjectChangedData, LibraryCollectionData
 from openedx_events.content_authoring.signals import (
     CONTENT_OBJECT_ASSOCIATIONS_CHANGED,
     LIBRARY_COLLECTION_CREATED,
     LIBRARY_COLLECTION_DELETED,
-    LIBRARY_COLLECTION_UPDATED,
+    LIBRARY_COLLECTION_UPDATED
 )
-from openedx_learning.api.authoring import get_component, get_components
-from openedx_learning.api.authoring_models import Collection, CollectionPublishableEntity, Component, PublishableEntity
+from openedx_learning.api.authoring import get_components, get_containers
+from openedx_learning.api.authoring_models import Collection, CollectionPublishableEntity, PublishableEntity
 
 from lms.djangoapps.grades.api import signals as grades_signals
 
-from .api import library_collection_locator, library_component_usage_key
+from .api import library_collection_locator, library_component_usage_key, library_container_locator
 from .models import ContentLibrary, LtiGradedResource
 
 log = logging.getLogger(__name__)
@@ -124,33 +120,45 @@ def library_collection_deleted(sender, instance, **kwargs):
     )
 
 
-def _library_collection_component_changed(
-    component: Component,
+def _library_collection_entity_changed(
+    publishable_entity: PublishableEntity,
     library_key: LibraryLocatorV2 | None = None,
 ) -> None:
     """
-    Sends a CONTENT_OBJECT_ASSOCIATIONS_CHANGED event for the component.
+    Sends a CONTENT_OBJECT_ASSOCIATIONS_CHANGED event for the entity.
     """
     if not library_key:
         try:
             library = ContentLibrary.objects.get(
-                learning_package_id=component.learning_package_id,
+                learning_package_id=publishable_entity.learning_package_id,
             )
         except ContentLibrary.DoesNotExist:
-            log.error("{component} is not associated with a content library.")
+            log.error("{publishable_entity} is not associated with a content library.")
             return
 
         library_key = library.library_key
 
     assert library_key
 
-    usage_key = library_component_usage_key(
-        library_key,
-        component,
-    )
+    opaque_key: OpaqueKey
+
+    if hasattr(publishable_entity, 'component'):
+        opaque_key = library_component_usage_key(
+            library_key,
+            publishable_entity.component,
+        )
+    elif hasattr(publishable_entity, 'container'):
+        opaque_key = library_container_locator(
+            library_key,
+            publishable_entity.container,
+        )
+    else:
+        log.error("Unknown publishable entity type: %s", publishable_entity)
+        return
+
     CONTENT_OBJECT_ASSOCIATIONS_CHANGED.send_event(
         content_object=ContentObjectChangedData(
-            object_id=str(usage_key),
+            object_id=str(opaque_key),
             changes=["collections"],
         ),
     )
@@ -162,9 +170,7 @@ def library_collection_entity_saved(sender, instance, created, **kwargs):
     Sends a CONTENT_OBJECT_ASSOCIATIONS_CHANGED event for components added to a collection.
     """
     if created:
-        # Component.pk matches its entity.pk
-        component = get_component(instance.entity_id)
-        _library_collection_component_changed(component)
+        _library_collection_entity_changed(instance.entity)
 
 
 @receiver(post_delete, sender=CollectionPublishableEntity, dispatch_uid="library_collection_entity_deleted")
@@ -174,9 +180,7 @@ def library_collection_entity_deleted(sender, instance, **kwargs):
     """
     # Only trigger component updates if CollectionPublishableEntity was cascade deleted due to deletion of a collection.
     if isinstance(kwargs.get('origin'), Collection):
-        # Component.pk matches its entity.pk
-        component = get_component(instance.entity_id)
-        _library_collection_component_changed(component)
+        _library_collection_entity_changed(instance.entity)
 
 
 @receiver(m2m_changed, sender=CollectionPublishableEntity, dispatch_uid="library_collection_entities_changed")
@@ -196,15 +200,18 @@ def library_collection_entities_changed(sender, instance, action, pk_set, **kwar
         return
 
     if isinstance(instance, PublishableEntity):
-        _library_collection_component_changed(instance.component, library.library_key)
+        _library_collection_entity_changed(instance, library.library_key)
         return
 
     # When action=="post_clear", pk_set==None
     # Since the collection instance now has an empty entities set,
-    # we don't know which ones were removed, so we need to update associations for all library components.
+    # we don't know which ones were removed, so we need to update associations for all library
+    # components and containers.
     components = get_components(instance.learning_package_id)
+    containers = get_containers(instance.learning_package_id)
     if pk_set:
         components = components.filter(pk__in=pk_set)
+        containers = containers.filter(pk__in=pk_set)
 
-    for component in components.all():
-        _library_collection_component_changed(component, library.library_key)
+    for entity in list(components.all()) + list(containers.all()):
+        _library_collection_entity_changed(entity.publishable_entity, library.library_key)
diff --git a/openedx/core/djangoapps/content_libraries/tests/base.py b/openedx/core/djangoapps/content_libraries/tests/base.py
index 3c07aabe06c4..c015886af70e 100644
--- a/openedx/core/djangoapps/content_libraries/tests/base.py
+++ b/openedx/core/djangoapps/content_libraries/tests/base.py
@@ -35,6 +35,7 @@
 URL_LIB_CONTAINER = URL_PREFIX + 'containers/{container_key}/'  # Get a container in this library
 URL_LIB_CONTAINER_COMPONENTS = URL_LIB_CONTAINER + 'children/'  # Get, add or delete a component in this container
 URL_LIB_CONTAINER_RESTORE = URL_LIB_CONTAINER + 'restore/'  # Restore a deleted container
+URL_LIB_CONTAINER_COLLECTIONS = URL_LIB_CONTAINER + 'collections/'  # Handle associated collections
 
 URL_LIB_LTI_PREFIX = URL_PREFIX + 'lti/1.3/'
 URL_LIB_LTI_JWKS = URL_LIB_LTI_PREFIX + 'pub/jwks/'
@@ -441,3 +442,17 @@ def _patch_container_components(
             {'usage_keys': children_ids},
             expect_response
         )
+
+    def _patch_container_collections(
+        self,
+        container_key: str,
+        collection_keys: list[str],
+        expect_response=200,
+    ):
+        """ Update container collections"""
+        return self._api(
+            'patch',
+            URL_LIB_CONTAINER_COLLECTIONS.format(container_key=container_key),
+            {'collection_keys': collection_keys},
+            expect_response
+        )
diff --git a/openedx/core/djangoapps/content_libraries/tests/test_api.py b/openedx/core/djangoapps/content_libraries/tests/test_api.py
index b0934768b794..7a20f75f8574 100644
--- a/openedx/core/djangoapps/content_libraries/tests/test_api.py
+++ b/openedx/core/djangoapps/content_libraries/tests/test_api.py
@@ -12,7 +12,7 @@
     CourseKey,
     UsageKey,
 )
-from opaque_keys.edx.locator import LibraryLocatorV2
+from opaque_keys.edx.locator import LibraryContainerLocator, LibraryLocatorV2
 from openedx_events.content_authoring.data import (
     ContentObjectChangedData,
     LibraryCollectionData,
@@ -325,6 +325,12 @@ def setUp(self):
         self.lib1_html_block = self._add_block_to_library(
             self.lib1.library_key, "html", "html1",
         )
+        # Create a container in lib1
+        self.unit1 = self._create_container(
+            str(self.lib1.library_key),
+            "unit", 'unit-1', 'Unit 1'
+        )
+
         # Create some library blocks in lib2
         self.lib2_problem_block = self._add_block_to_library(
             self.lib2.library_key, "problem", "problem2",
@@ -431,28 +437,29 @@ def test_delete_library_collection(self):
             event_receiver.call_args_list[0].kwargs,
         )
 
-    def test_update_library_collection_components(self):
+    def test_update_library_collection_items(self):
         assert not list(self.col1.entities.all())
 
-        self.col1 = api.update_library_collection_components(
+        self.col1 = api.update_library_collection_items(
             self.lib1.library_key,
             self.col1.key,
-            usage_keys=[
+            opaque_keys=[
                 UsageKey.from_string(self.lib1_problem_block["id"]),
                 UsageKey.from_string(self.lib1_html_block["id"]),
+                LibraryContainerLocator.from_string(self.unit1["container_key"]),
             ],
         )
-        assert len(self.col1.entities.all()) == 2
+        assert len(self.col1.entities.all()) == 3
 
-        self.col1 = api.update_library_collection_components(
+        self.col1 = api.update_library_collection_items(
             self.lib1.library_key,
             self.col1.key,
-            usage_keys=[
+            opaque_keys=[
                 UsageKey.from_string(self.lib1_html_block["id"]),
             ],
             remove=True,
         )
-        assert len(self.col1.entities.all()) == 1
+        assert len(self.col1.entities.all()) == 2
 
     def test_update_library_collection_components_event(self):
         """
@@ -462,16 +469,17 @@ def test_update_library_collection_components_event(self):
         CONTENT_OBJECT_ASSOCIATIONS_CHANGED.connect(event_receiver)
         LIBRARY_COLLECTION_UPDATED.connect(event_receiver)
 
-        api.update_library_collection_components(
+        api.update_library_collection_items(
             self.lib1.library_key,
             self.col1.key,
-            usage_keys=[
+            opaque_keys=[
                 UsageKey.from_string(self.lib1_problem_block["id"]),
                 UsageKey.from_string(self.lib1_html_block["id"]),
+                LibraryContainerLocator.from_string(self.unit1["container_key"]),
             ],
         )
 
-        assert event_receiver.call_count == 3
+        assert event_receiver.call_count == 4
         self.assertDictContainsSubset(
             {
                 "signal": CONTENT_OBJECT_ASSOCIATIONS_CHANGED,
@@ -494,6 +502,17 @@ def test_update_library_collection_components_event(self):
             },
             event_receiver.call_args_list[1].kwargs,
         )
+        self.assertDictContainsSubset(
+            {
+                "signal": CONTENT_OBJECT_ASSOCIATIONS_CHANGED,
+                "sender": None,
+                "content_object": ContentObjectChangedData(
+                    object_id=self.unit1["container_key"],
+                    changes=["collections"],
+                ),
+            },
+            event_receiver.call_args_list[2].kwargs,
+        )
         self.assertDictContainsSubset(
             {
                 "signal": LIBRARY_COLLECTION_UPDATED,
@@ -505,17 +524,18 @@ def test_update_library_collection_components_event(self):
                     ),
                 ),
             },
-            event_receiver.call_args_list[2].kwargs,
+            event_receiver.call_args_list[3].kwargs,
         )
 
     def test_update_collection_components_from_wrong_library(self):
         with self.assertRaises(api.ContentLibraryBlockNotFound) as exc:
-            api.update_library_collection_components(
+            api.update_library_collection_items(
                 self.lib2.library_key,
                 self.col2.key,
-                usage_keys=[
+                opaque_keys=[
                     UsageKey.from_string(self.lib1_problem_block["id"]),
                     UsageKey.from_string(self.lib1_html_block["id"]),
+                    LibraryContainerLocator.from_string(self.unit1["container_key"]),
                 ],
             )
             assert self.lib1_problem_block["id"] in str(exc.exception)
@@ -528,9 +548,9 @@ def test_set_library_component_collections(self):
         assert not list(self.col2.entities.all())
         component = api.get_component_from_usage_key(UsageKey.from_string(self.lib2_problem_block["id"]))
 
-        api.set_library_component_collections(
+        api.set_library_item_collections(
             self.lib2.library_key,
-            component,
+            component.publishable_entity,
             collection_keys=[self.col2.key, self.col3.key],
         )
 
@@ -577,10 +597,10 @@ def test_set_library_component_collections(self):
         )
 
     def test_delete_library_block(self):
-        api.update_library_collection_components(
+        api.update_library_collection_items(
             self.lib1.library_key,
             self.col1.key,
-            usage_keys=[
+            opaque_keys=[
                 UsageKey.from_string(self.lib1_problem_block["id"]),
                 UsageKey.from_string(self.lib1_html_block["id"]),
             ],
@@ -607,11 +627,43 @@ def test_delete_library_block(self):
             event_receiver.call_args_list[0].kwargs,
         )
 
+    def test_delete_library_container(self):
+        api.update_library_collection_items(
+            self.lib1.library_key,
+            self.col1.key,
+            opaque_keys=[
+                UsageKey.from_string(self.lib1_problem_block["id"]),
+                UsageKey.from_string(self.lib1_html_block["id"]),
+                LibraryContainerLocator.from_string(self.unit1["container_key"]),
+            ],
+        )
+
+        event_receiver = mock.Mock()
+        LIBRARY_COLLECTION_UPDATED.connect(event_receiver)
+
+        api.delete_container(LibraryContainerLocator.from_string(self.unit1["container_key"]))
+
+        assert event_receiver.call_count == 1
+        self.assertDictContainsSubset(
+            {
+                "signal": LIBRARY_COLLECTION_UPDATED,
+                "sender": None,
+                "library_collection": LibraryCollectionData(
+                    collection_key=api.library_collection_locator(
+                        self.lib1.library_key,
+                        collection_key=self.col1.key,
+                    ),
+                    background=True,
+                ),
+            },
+            event_receiver.call_args_list[0].kwargs,
+        )
+
     def test_restore_library_block(self):
-        api.update_library_collection_components(
+        api.update_library_collection_items(
             self.lib1.library_key,
             self.col1.key,
-            usage_keys=[
+            opaque_keys=[
                 UsageKey.from_string(self.lib1_problem_block["id"]),
                 UsageKey.from_string(self.lib1_html_block["id"]),
             ],
@@ -640,20 +692,20 @@ def test_restore_library_block(self):
 
     def test_add_component_and_revert(self):
         # Add component and publish
-        api.update_library_collection_components(
+        api.update_library_collection_items(
             self.lib1.library_key,
             self.col1.key,
-            usage_keys=[
+            opaque_keys=[
                 UsageKey.from_string(self.lib1_problem_block["id"]),
             ],
         )
         api.publish_changes(self.lib1.library_key)
 
         # Add component and revert
-        api.update_library_collection_components(
+        api.update_library_collection_items(
             self.lib1.library_key,
             self.col1.key,
-            usage_keys=[
+            opaque_keys=[
                 UsageKey.from_string(self.lib1_html_block["id"]),
             ],
         )
@@ -706,10 +758,10 @@ def test_add_component_and_revert(self):
 
     def test_delete_component_and_revert(self):
         # Add components and publish
-        api.update_library_collection_components(
+        api.update_library_collection_items(
             self.lib1.library_key,
             self.col1.key,
-            usage_keys=[
+            opaque_keys=[
                 UsageKey.from_string(self.lib1_problem_block["id"]),
                 UsageKey.from_string(self.lib1_html_block["id"])
             ],
diff --git a/openedx/core/djangoapps/content_libraries/tests/test_containers.py b/openedx/core/djangoapps/content_libraries/tests/test_containers.py
index 85e04260cf52..41752eb41e17 100644
--- a/openedx/core/djangoapps/content_libraries/tests/test_containers.py
+++ b/openedx/core/djangoapps/content_libraries/tests/test_containers.py
@@ -17,6 +17,7 @@
 from openedx_events.tests.utils import OpenEdxEventsTestMixin
 
 from common.djangoapps.student.tests.factories import UserFactory
+from openedx.core.djangoapps.content_libraries import api
 from openedx.core.djangoapps.content_libraries.tests.base import ContentLibrariesRestApiTest
 from openedx.core.djangolib.testing.utils import skip_unless_cms
 
@@ -382,3 +383,33 @@ def test_restore_unit(self):
             },
             create_receiver.call_args_list[0].kwargs,
         )
+
+    def test_container_collections(self):
+        # Create a library
+        lib = self._create_library(slug="containers", title="Container Test Library", description="Units and more")
+        lib_key = LibraryLocatorV2.from_string(lib["id"])
+
+        # Create a unit
+        container_data = self._create_container(lib["id"], "unit", display_name="Alpha Bravo", slug=None)
+
+        # Create a collection
+        col1 = api.create_library_collection(
+            lib_key,
+            "COL1",
+            title="Collection 1",
+            created_by=self.user.id,
+            description="Description for Collection 1",
+        )
+
+        result = self._patch_container_collections(
+            container_data["container_key"],
+            collection_keys=[col1.key],
+        )
+
+        assert result['count'] == 1
+
+        # Fetch the unit
+        unit_as_read = self._get_container(container_data["container_key"])
+
+        # Verify the collections
+        assert unit_as_read['collections'] == [{"title": col1.title, "key": col1.key}]
diff --git a/openedx/core/djangoapps/content_libraries/tests/test_views_collections.py b/openedx/core/djangoapps/content_libraries/tests/test_views_collections.py
index 43c1627c2c76..283f5fbe97e5 100644
--- a/openedx/core/djangoapps/content_libraries/tests/test_views_collections.py
+++ b/openedx/core/djangoapps/content_libraries/tests/test_views_collections.py
@@ -18,7 +18,7 @@
 URL_LIB_COLLECTIONS = URL_PREFIX + 'collections/'
 URL_LIB_COLLECTION = URL_LIB_COLLECTIONS + '{collection_key}/'
 URL_LIB_COLLECTION_RESTORE = URL_LIB_COLLECTIONS + '{collection_key}/restore/'
-URL_LIB_COLLECTION_COMPONENTS = URL_LIB_COLLECTION + 'components/'
+URL_LIB_COLLECTION_COMPONENTS = URL_LIB_COLLECTION + 'items/'
 
 
 @ddt.ddt
diff --git a/openedx/core/djangoapps/content_libraries/urls.py b/openedx/core/djangoapps/content_libraries/urls.py
index c46cc8641cd8..adbc89b2cc9b 100644
--- a/openedx/core/djangoapps/content_libraries/urls.py
+++ b/openedx/core/djangoapps/content_libraries/urls.py
@@ -3,12 +3,10 @@
 """
 
 from django.urls import include, path, re_path, register_converter
-
 from rest_framework import routers
 
 from .rest_api import blocks, collections, containers, libraries, url_converters
 
-
 # Django application name.
 
 app_name = 'openedx.core.djangoapps.content_libraries'
@@ -85,7 +83,7 @@
             # Restore a soft-deleted container
             path('restore/', containers.LibraryContainerRestore.as_view()),
             # Update collections for a given container
-            # path('collections/', views.LibraryContainerCollectionsView.as_view(), name='update-collections-ct'),
+            path('collections/', containers.LibraryContainerCollectionsView.as_view(), name='update-collections-ct'),
             # path('publish/', views.LibraryContainerPublishView.as_view()),
         ])),
         re_path(r'^lti/1.3/', include([
diff --git a/requirements/constraints.txt b/requirements/constraints.txt
index 6633650f8440..bcba26a09bd8 100644
--- a/requirements/constraints.txt
+++ b/requirements/constraints.txt
@@ -112,7 +112,7 @@ numpy<2.0.0
 # Date: 2023-09-18
 # pinning this version to avoid updates while the library is being developed
 # Issue for unpinning: https://github.com/openedx/edx-platform/issues/35269
-openedx-learning==0.19.2
+openedx-learning==0.22.0
 
 # Date: 2023-11-29
 # Open AI version 1.0.0 dropped support for openai.ChatCompletion which is currently in use in enterprise.
diff --git a/requirements/edx/base.txt b/requirements/edx/base.txt
index f1ef8845df80..7d85b8ed360b 100644
--- a/requirements/edx/base.txt
+++ b/requirements/edx/base.txt
@@ -820,7 +820,7 @@ openedx-filters==2.0.1
     #   ora2
 openedx-forum==0.2.0
     # via -r requirements/edx/kernel.in
-openedx-learning==0.19.2
+openedx-learning==0.22.0
     # via
     #   -c requirements/edx/../constraints.txt
     #   -r requirements/edx/kernel.in
diff --git a/requirements/edx/development.txt b/requirements/edx/development.txt
index 5bfbca431f47..3c8230e19f0f 100644
--- a/requirements/edx/development.txt
+++ b/requirements/edx/development.txt
@@ -1383,7 +1383,7 @@ openedx-forum==0.2.0
     # via
     #   -r requirements/edx/doc.txt
     #   -r requirements/edx/testing.txt
-openedx-learning==0.19.2
+openedx-learning==0.22.0
     # via
     #   -c requirements/edx/../constraints.txt
     #   -r requirements/edx/doc.txt
diff --git a/requirements/edx/doc.txt b/requirements/edx/doc.txt
index 7b4fb5682a82..ef33c0f7c08e 100644
--- a/requirements/edx/doc.txt
+++ b/requirements/edx/doc.txt
@@ -992,7 +992,7 @@ openedx-filters==2.0.1
     #   ora2
 openedx-forum==0.2.0
     # via -r requirements/edx/base.txt
-openedx-learning==0.19.2
+openedx-learning==0.22.0
     # via
     #   -c requirements/edx/../constraints.txt
     #   -r requirements/edx/base.txt
diff --git a/requirements/edx/testing.txt b/requirements/edx/testing.txt
index 404104e9750d..7452cb3d53c0 100644
--- a/requirements/edx/testing.txt
+++ b/requirements/edx/testing.txt
@@ -1050,7 +1050,7 @@ openedx-filters==2.0.1
     #   ora2
 openedx-forum==0.2.0
     # via -r requirements/edx/base.txt
-openedx-learning==0.19.2
+openedx-learning==0.22.0
     # via
     #   -c requirements/edx/../constraints.txt
     #   -r requirements/edx/base.txt