diff --git a/.env b/.env
index ce17454708..4235461134 100644
--- a/.env
+++ b/.env
@@ -43,3 +43,4 @@ AI_TRANSLATIONS_BASE_URL=''
 ENABLE_HOME_PAGE_COURSE_API_V2=false
 ENABLE_CHECKLIST_QUALITY=''
 ENABLE_GRADING_METHOD_IN_PROBLEMS=false
+LIBRARY_MODE="v1 only"
diff --git a/.env.development b/.env.development
index 983ce9674f..5547e8ffec 100644
--- a/.env.development
+++ b/.env.development
@@ -46,3 +46,4 @@ AI_TRANSLATIONS_BASE_URL='http://localhost:18760'
 ENABLE_HOME_PAGE_COURSE_API_V2=false
 ENABLE_CHECKLIST_QUALITY=true
 ENABLE_GRADING_METHOD_IN_PROBLEMS=false
+LIBRARY_MODE="mixed"
diff --git a/.env.test b/.env.test
index 28240ad2ff..0f73517968 100644
--- a/.env.test
+++ b/.env.test
@@ -37,3 +37,4 @@ INVITE_STUDENTS_EMAIL_TO="someone@domain.com"
 ENABLE_HOME_PAGE_COURSE_API_V2=true
 ENABLE_CHECKLIST_QUALITY=true
 ENABLE_GRADING_METHOD_IN_PROBLEMS=false
+LIBRARY_MODE="mixed"
diff --git a/README.rst b/README.rst
index 3847453ea3..6f1de194b4 100644
--- a/README.rst
+++ b/README.rst
@@ -264,6 +264,22 @@ In additional to the standard settings, the following local configuration items
 Tagging/Taxonomy functionality.
 
 
+Feature: Libraries V2/Legacy Tabs
+=================================
+
+.. image:: ./docs/readme-images/feature-v2-and-legacy-libs.png
+
+Configuration
+-------------
+
+In additional to the standard settings, the following local configurations can be set to switch between different library modes:
+
+* ``LIBRARY_MODE``: can be set to ``mixed`` (default for development), ``v1 only`` (default for production) and ``v2 only``.
+
+  * ``mixed``: Shows 2 tabs, "Libraries" that lists the v2 libraries and "Legacy Libraries" that lists the v1 libraries. When creating a new library in this mode it will create a new v2 library.
+  * ``v1 only``: Shows only 1 tab, "Libraries" that lists v1 libraries only. When creating a new library in this mode it will create a new v1 library.
+  * ``v2 only``: Shows only 1 tab, "Libraries" that lists v2 libraries only. When creating a new library in this mode it will create a new v2 library.
+
 Developing
 **********
 
diff --git a/docs/readme-images/feature-v2-and-legacy-libs.png b/docs/readme-images/feature-v2-and-legacy-libs.png
new file mode 100644
index 0000000000..c8fd363655
Binary files /dev/null and b/docs/readme-images/feature-v2-and-legacy-libs.png differ
diff --git a/src/index.jsx b/src/index.jsx
index 889063acd7..e3d21096a3 100755
--- a/src/index.jsx
+++ b/src/index.jsx
@@ -125,6 +125,7 @@ initialize({
         ENABLE_HOME_PAGE_COURSE_API_V2: process.env.ENABLE_HOME_PAGE_COURSE_API_V2 === 'true',
         ENABLE_CHECKLIST_QUALITY: process.env.ENABLE_CHECKLIST_QUALITY || 'true',
         ENABLE_GRADING_METHOD_IN_PROBLEMS: process.env.ENABLE_GRADING_METHOD_IN_PROBLEMS === 'true',
+        LIBRARY_MODE: process.env.LIBRARY_MODE || 'v1 only',
       }, 'CourseAuthoringConfig');
     },
   },
diff --git a/src/studio-home/StudioHome.jsx b/src/studio-home/StudioHome.jsx
index acc5cd1174..2d68af9c25 100644
--- a/src/studio-home/StudioHome.jsx
+++ b/src/studio-home/StudioHome.jsx
@@ -44,8 +44,7 @@ const StudioHome = ({ intl }) => {
     dispatch,
   } = useStudioHome(isPaginationCoursesEnabled);
 
-  // TODO: this should be a flag in the backend
-  const LIB_MODE = 'mixed';
+  const libMode = getConfig().LIBRARY_MODE;
 
   const {
     userIsActive,
@@ -82,7 +81,7 @@ const StudioHome = ({ intl }) => {
     }
 
     let libraryHref = `${getConfig().STUDIO_BASE_URL}/home_library`;
-    if (isMixedOrV2LibrariesMode(LIB_MODE)) {
+    if (isMixedOrV2LibrariesMode(libMode)) {
       libraryHref = `${libraryAuthoringMfeUrl}create`;
     }
 
diff --git a/src/studio-home/tabs-section/index.jsx b/src/studio-home/tabs-section/index.jsx
index 789bb2bea1..997796913f 100644
--- a/src/studio-home/tabs-section/index.jsx
+++ b/src/studio-home/tabs-section/index.jsx
@@ -25,10 +25,7 @@ const TabsSection = ({
   isPaginationCoursesEnabled,
 }) => {
   const navigate = useNavigate();
-
-  // TODO: this should be a flag in the backend
-  const LIB_MODE = 'mixed';
-
+  const libMode = getConfig().LIBRARY_MODE;
   const TABS_LIST = {
     courses: 'courses',
     libraries: 'libraries',
@@ -94,7 +91,7 @@ const TabsSection = ({
     }
 
     if (librariesEnabled) {
-      if (isMixedOrV2LibrariesMode(LIB_MODE)) {
+      if (isMixedOrV2LibrariesMode(libMode)) {
         tabs.push(
           <Tab
             key={TABS_LIST.libraries}
@@ -106,13 +103,13 @@ const TabsSection = ({
         );
       }
 
-      if (isMixedOrV1LibrariesMode(LIB_MODE)) {
+      if (isMixedOrV1LibrariesMode(libMode)) {
         tabs.push(
           <Tab
             key={TABS_LIST.legacyLibraries}
             eventKey={TABS_LIST.legacyLibraries}
             title={intl.formatMessage(
-              LIB_MODE === 'v1 only'
+              libMode === 'v1 only'
                 ? messages.librariesTabTitle
                 : messages.legacyLibrariesTabTitle,
             )}