Hierarchical classification is a significant challenge in computer vision due to the logical order and interconnectedness of multiple labels. This paper presents HD-CapsNet, a novel neural network architecture based on deep capsule networks, specifically designed for hierarchical multi-label classification(HMC). By incorporating a tree-like hierarchical structure, HD-CapsNet is designed to leverage the inherent ontological order within the hierarchical label tree, thereby ensuring classification consistency across different levels. Additionally, we introduce a specialized loss function that promotes accurate hierarchical relationships while penalizing inconsistencies. This not only enhances classification performance but also strengthens the network’s robustness. We rigorously evaluate HD-CapsNet’s efficacy by benchmarking it against existing HMC methods across six diverse datasets: Fashion-MNIST, Marine-Tree, CIFAR-10, CIFAR-100, Caltech-UCSD Birds-200-2011, and Stanford Cars. Our results conclusively demonstrate that HD-CapsNet excels in learning hierarchical relationships and significantly outperforms the competition in various image classification tasks. Our implementation is available at https://github.com/tasrif-khondaker/HD-CapsNet.