diff --git a/README.md b/README.md
index e8acfba..c1e5a1a 100644
--- a/README.md
+++ b/README.md
@@ -1,3 +1,152 @@
-# FastAPI Application
+# FastAPI REST API
 
-This is a FastAPI application bootstrapped by BackendIM, the AI-powered backend generation platform.
+A modern, fast REST API built with FastAPI and SQLite.
+
+## Features
+
+- FastAPI framework with all its features
+- SQLAlchemy ORM
+- SQLite database
+- Alembic migrations
+- Pydantic data validation
+- Automatic API documentation with Swagger UI and ReDoc
+- CORS middleware
+- Health check endpoint
+
+## Project Structure
+
+```
+.
+├── alembic.ini                # Alembic configuration
+├── app                        # Main application package
+│   ├── api                    # API endpoints
+│   │   └── v1                 # API version 1
+│   │       ├── api.py         # API router
+│   │       └── endpoints      # API endpoint modules
+│   │           └── items.py   # Items API endpoints
+│   ├── core                   # Core modules
+│   │   └── config.py          # Application settings
+│   ├── db                     # Database modules
+│   │   └── database.py        # Database connection
+│   ├── models                 # SQLAlchemy models
+│   │   ├── base.py            # Base model
+│   │   └── item.py            # Item model
+│   ├── schemas                # Pydantic schemas
+│   │   └── item.py            # Item schemas
+│   └── services               # Business logic
+├── main.py                    # Application entry point
+├── migrations                 # Alembic migrations
+│   ├── env.py                 # Alembic environment
+│   ├── README                 # Alembic README
+│   ├── script.py.mako         # Migration script template
+│   └── versions               # Migration versions
+│       └── 01_initial_migration.py  # Initial migration
+└── requirements.txt           # Project dependencies
+```
+
+## Installation
+
+1. Clone the repository:
+
+```bash
+git clone https://your-repository-url.git
+cd fastapi-rest-api
+```
+
+2. Install dependencies:
+
+```bash
+pip install -r requirements.txt
+```
+
+3. Set up the database:
+
+```bash
+# The database will be automatically created at the configured location
+# Make sure the directory exists
+mkdir -p /app/storage/db
+```
+
+4. Run the migrations:
+
+```bash
+alembic upgrade head
+```
+
+## Running the API
+
+Start the server with:
+
+```bash
+uvicorn main:app --reload
+```
+
+The API will be available at [http://localhost:8000](http://localhost:8000).
+
+## API Documentation
+
+- Swagger UI: [http://localhost:8000/docs](http://localhost:8000/docs)
+- ReDoc: [http://localhost:8000/redoc](http://localhost:8000/redoc)
+
+## API Endpoints
+
+- `GET /api/v1/items`: Get a list of items
+- `POST /api/v1/items`: Create a new item
+- `GET /api/v1/items/{item_id}`: Get an item by ID
+- `PUT /api/v1/items/{item_id}`: Update an item
+- `DELETE /api/v1/items/{item_id}`: Delete an item
+- `GET /health`: Check API health
+
+## Usage Examples
+
+### Get list of items
+
+```bash
+curl -X 'GET' 'http://localhost:8000/api/v1/items' -H 'accept: application/json'
+```
+
+### Create a new item
+
+```bash
+curl -X 'POST' \
+  'http://localhost:8000/api/v1/items' \
+  -H 'accept: application/json' \
+  -H 'Content-Type: application/json' \
+  -d '{
+  "name": "Example Item",
+  "description": "This is an example item",
+  "is_active": true
+}'
+```
+
+### Get an item by ID
+
+```bash
+curl -X 'GET' 'http://localhost:8000/api/v1/items/1' -H 'accept: application/json'
+```
+
+### Update an item
+
+```bash
+curl -X 'PUT' \
+  'http://localhost:8000/api/v1/items/1' \
+  -H 'accept: application/json' \
+  -H 'Content-Type: application/json' \
+  -d '{
+  "name": "Updated Item",
+  "description": "This item has been updated",
+  "is_active": true
+}'
+```
+
+### Delete an item
+
+```bash
+curl -X 'DELETE' 'http://localhost:8000/api/v1/items/1' -H 'accept: application/json'
+```
+
+### Check API health
+
+```bash
+curl -X 'GET' 'http://localhost:8000/health' -H 'accept: application/json'
+```
\ No newline at end of file
diff --git a/alembic.ini b/alembic.ini
new file mode 100644
index 0000000..7f655cf
--- /dev/null
+++ b/alembic.ini
@@ -0,0 +1,86 @@
+# A generic, single database configuration.
+
+[alembic]
+# path to migration scripts
+script_location = migrations
+
+# template used to generate migration files
+# file_template = %%(rev)s_%%(slug)s
+
+# timezone to use when rendering the date
+# within the migration file as well as the filename.
+# string value is passed to dateutil.tz.gettz()
+# leave blank for localtime
+# timezone =
+
+# max length of characters to apply to the
+# "slug" field
+# truncate_slug_length = 40
+
+# set to 'true' to run the environment during
+# the 'revision' command, regardless of autogenerate
+# revision_environment = false
+
+# set to 'true' to allow .pyc and .pyo files without
+# a source .py file to be detected as revisions in the
+# versions/ directory
+# sourceless = false
+
+# version location specification; this defaults
+# to migrations/versions.  When using multiple version
+# directories, initial revisions must be specified with --version-path
+# version_locations = %(here)s/bar %(here)s/bat migrations/versions
+
+# the output encoding used when revision files
+# are written from script.py.mako
+# output_encoding = utf-8
+
+# SQLite URL example
+sqlalchemy.url = sqlite:////app/storage/db/db.sqlite
+
+
+[post_write_hooks]
+# post_write_hooks defines scripts or Python functions that are run
+# on newly generated revision scripts.  See the documentation for further
+# detail and examples
+
+# format using "black" - use the console_scripts runner, against the "black" entrypoint
+# hooks=black
+# black.type=console_scripts
+# black.entrypoint=black
+# black.options=-l 79
+
+# Logging configuration
+[loggers]
+keys = root,sqlalchemy,alembic
+
+[handlers]
+keys = console
+
+[formatters]
+keys = generic
+
+[logger_root]
+level = WARN
+handlers = console
+qualname =
+
+[logger_sqlalchemy]
+level = WARN
+handlers =
+qualname = sqlalchemy.engine
+
+[logger_alembic]
+level = INFO
+handlers =
+qualname = alembic
+
+[handler_console]
+class = StreamHandler
+args = (sys.stderr,)
+level = NOTSET
+formatter = generic
+
+[formatter_generic]
+format = %(levelname)-5.5s [%(name)s] %(message)s
+datefmt = %H:%M:%S
\ No newline at end of file
diff --git a/app/__init__.py b/app/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/api/__init__.py b/app/api/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/api/v1/__init__.py b/app/api/v1/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/api/v1/api.py b/app/api/v1/api.py
new file mode 100644
index 0000000..d0b46fc
--- /dev/null
+++ b/app/api/v1/api.py
@@ -0,0 +1,6 @@
+from fastapi import APIRouter
+
+from app.api.v1.endpoints import items
+
+api_router = APIRouter()
+api_router.include_router(items.router, prefix="/items", tags=["items"])
\ No newline at end of file
diff --git a/app/api/v1/endpoints/__init__.py b/app/api/v1/endpoints/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/api/v1/endpoints/items.py b/app/api/v1/endpoints/items.py
new file mode 100644
index 0000000..337c699
--- /dev/null
+++ b/app/api/v1/endpoints/items.py
@@ -0,0 +1,109 @@
+from typing import Any, List, Optional
+
+from fastapi import APIRouter, Depends, HTTPException
+from sqlalchemy.orm import Session
+
+from app import models, schemas
+from app.db.database import get_db
+
+router = APIRouter()
+
+
+@router.get("/", response_model=List[schemas.Item])
+def read_items(
+    db: Session = Depends(get_db),
+    skip: int = 0,
+    limit: int = 100,
+    name: Optional[str] = None,
+) -> Any:
+    """
+    Retrieve items.
+    """
+    if name:
+        items = (
+            db.query(models.Item)
+            .filter(models.Item.name.contains(name))
+            .offset(skip)
+            .limit(limit)
+            .all()
+        )
+    else:
+        items = db.query(models.Item).offset(skip).limit(limit).all()
+    return items
+
+
+@router.post("/", response_model=schemas.Item)
+def create_item(
+    *,
+    db: Session = Depends(get_db),
+    item_in: schemas.ItemCreate,
+) -> Any:
+    """
+    Create new item.
+    """
+    item = models.Item(
+        name=item_in.name,
+        description=item_in.description,
+        is_active=item_in.is_active,
+    )
+    db.add(item)
+    db.commit()
+    db.refresh(item)
+    return item
+
+
+@router.get("/{item_id}", response_model=schemas.Item)
+def read_item(
+    *,
+    db: Session = Depends(get_db),
+    item_id: int,
+) -> Any:
+    """
+    Get item by ID.
+    """
+    item = db.query(models.Item).filter(models.Item.id == item_id).first()
+    if not item:
+        raise HTTPException(status_code=404, detail="Item not found")
+    return item
+
+
+@router.put("/{item_id}", response_model=schemas.Item)
+def update_item(
+    *,
+    db: Session = Depends(get_db),
+    item_id: int,
+    item_in: schemas.ItemUpdate,
+) -> Any:
+    """
+    Update an item.
+    """
+    item = db.query(models.Item).filter(models.Item.id == item_id).first()
+    if not item:
+        raise HTTPException(status_code=404, detail="Item not found")
+    
+    update_data = item_in.model_dump(exclude_unset=True)
+    for field, value in update_data.items():
+        setattr(item, field, value)
+    
+    db.add(item)
+    db.commit()
+    db.refresh(item)
+    return item
+
+
+@router.delete("/{item_id}", response_model=None, status_code=204)
+def delete_item(
+    *,
+    db: Session = Depends(get_db),
+    item_id: int,
+) -> Any:
+    """
+    Delete an item.
+    """
+    item = db.query(models.Item).filter(models.Item.id == item_id).first()
+    if not item:
+        raise HTTPException(status_code=404, detail="Item not found")
+    
+    db.delete(item)
+    db.commit()
+    return None
\ No newline at end of file
diff --git a/app/core/__init__.py b/app/core/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/core/config.py b/app/core/config.py
new file mode 100644
index 0000000..6b2ebe8
--- /dev/null
+++ b/app/core/config.py
@@ -0,0 +1,31 @@
+from pathlib import Path
+from typing import List, Union
+
+from pydantic import AnyHttpUrl, field_validator
+from pydantic_settings import BaseSettings
+
+
+class Settings(BaseSettings):
+    API_V1_STR: str = "/api/v1"
+    PROJECT_NAME: str = "FastAPI REST API"
+    
+    # CORS middleware configuration
+    BACKEND_CORS_ORIGINS: List[AnyHttpUrl] = []
+
+    @field_validator("BACKEND_CORS_ORIGINS", mode="before")
+    def assemble_cors_origins(cls, v: Union[str, List[str]]) -> Union[List[str], str]:
+        if isinstance(v, str) and not v.startswith("["):
+            return [i.strip() for i in v.split(",")]
+        elif isinstance(v, (list, str)):
+            return v
+        raise ValueError(v)
+
+    # SQLite database configuration
+    DB_DIR: Path = Path("/app/storage/db")
+    
+    class Config:
+        case_sensitive = True
+        env_file = ".env"
+
+
+settings = Settings()
\ No newline at end of file
diff --git a/app/db/__init__.py b/app/db/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/db/database.py b/app/db/database.py
new file mode 100644
index 0000000..46bbe1d
--- /dev/null
+++ b/app/db/database.py
@@ -0,0 +1,26 @@
+from sqlalchemy import create_engine
+from sqlalchemy.ext.declarative import declarative_base
+from sqlalchemy.orm import sessionmaker
+
+from app.core.config import settings
+
+# Create database directory if it doesn't exist
+settings.DB_DIR.mkdir(parents=True, exist_ok=True)
+
+SQLALCHEMY_DATABASE_URL = f"sqlite:///{settings.DB_DIR}/db.sqlite"
+
+engine = create_engine(
+    SQLALCHEMY_DATABASE_URL,
+    connect_args={"check_same_thread": False}
+)
+SessionLocal = sessionmaker(autocommit=False, autoflush=False, bind=engine)
+
+Base = declarative_base()
+
+# Dependency to get DB session
+def get_db():
+    db = SessionLocal()
+    try:
+        yield db
+    finally:
+        db.close()
\ No newline at end of file
diff --git a/app/models/__init__.py b/app/models/__init__.py
new file mode 100644
index 0000000..033ef5d
--- /dev/null
+++ b/app/models/__init__.py
@@ -0,0 +1 @@
+from app.models.item import Item  # noqa: F401
\ No newline at end of file
diff --git a/app/models/base.py b/app/models/base.py
new file mode 100644
index 0000000..7a90c0d
--- /dev/null
+++ b/app/models/base.py
@@ -0,0 +1,19 @@
+from datetime import datetime
+
+from sqlalchemy import Column, DateTime, Integer
+from sqlalchemy.ext.declarative import declared_attr
+
+from app.db.database import Base
+
+
+class BaseModel(Base):
+    """Base model for all database models"""
+    __abstract__ = True
+
+    id = Column(Integer, primary_key=True, index=True)
+    created_at = Column(DateTime, default=datetime.utcnow)
+    updated_at = Column(DateTime, default=datetime.utcnow, onupdate=datetime.utcnow)
+
+    @declared_attr
+    def __tablename__(cls):
+        return cls.__name__.lower()
\ No newline at end of file
diff --git a/app/models/item.py b/app/models/item.py
new file mode 100644
index 0000000..a4c38dd
--- /dev/null
+++ b/app/models/item.py
@@ -0,0 +1,10 @@
+from sqlalchemy import Boolean, Column, String, Text
+
+from app.models.base import BaseModel
+
+
+class Item(BaseModel):
+    """Item model for database"""
+    name = Column(String(255), nullable=False, index=True)
+    description = Column(Text, nullable=True)
+    is_active = Column(Boolean, default=True)
\ No newline at end of file
diff --git a/app/schemas/__init__.py b/app/schemas/__init__.py
new file mode 100644
index 0000000..f6895fc
--- /dev/null
+++ b/app/schemas/__init__.py
@@ -0,0 +1 @@
+from app.schemas.item import Item, ItemCreate, ItemInDB, ItemUpdate  # noqa: F401
diff --git a/app/schemas/item.py b/app/schemas/item.py
new file mode 100644
index 0000000..2c72d56
--- /dev/null
+++ b/app/schemas/item.py
@@ -0,0 +1,42 @@
+from datetime import datetime
+from typing import Optional
+
+from pydantic import BaseModel
+
+
+class ItemBase(BaseModel):
+    """Base schema for Item"""
+    name: str
+    description: Optional[str] = None
+    is_active: bool = True
+
+
+class ItemCreate(ItemBase):
+    """Schema for creating an Item"""
+    pass
+
+
+class ItemUpdate(ItemBase):
+    """Schema for updating an Item"""
+    name: Optional[str] = None
+    is_active: Optional[bool] = None
+
+
+class ItemInDBBase(ItemBase):
+    """Base schema for Item in DB"""
+    id: int
+    created_at: datetime
+    updated_at: datetime
+
+    class Config:
+        from_attributes = True
+
+
+class Item(ItemInDBBase):
+    """Schema for Item response"""
+    pass
+
+
+class ItemInDB(ItemInDBBase):
+    """Schema for Item in DB (for internal use)"""
+    pass
\ No newline at end of file
diff --git a/app/services/__init__.py b/app/services/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/main.py b/main.py
new file mode 100644
index 0000000..4cbe28e
--- /dev/null
+++ b/main.py
@@ -0,0 +1,31 @@
+from fastapi import FastAPI
+from starlette.middleware.cors import CORSMiddleware
+
+from app.api.v1.api import api_router
+from app.core.config import settings
+
+app = FastAPI(
+    title=settings.PROJECT_NAME,
+    openapi_url=f"{settings.API_V1_STR}/openapi.json",
+    version="0.1.0",
+)
+
+# Set all CORS enabled origins
+if settings.BACKEND_CORS_ORIGINS:
+    app.add_middleware(
+        CORSMiddleware,
+        allow_origins=[str(origin) for origin in settings.BACKEND_CORS_ORIGINS],
+        allow_credentials=True,
+        allow_methods=["*"],
+        allow_headers=["*"],
+    )
+
+app.include_router(api_router, prefix=settings.API_V1_STR)
+
+@app.get("/health", tags=["Health"])
+async def health():
+    return {"status": "ok"}
+
+if __name__ == "__main__":
+    import uvicorn
+    uvicorn.run(app, host="0.0.0.0", port=8000)
\ No newline at end of file
diff --git a/migrations/README b/migrations/README
new file mode 100644
index 0000000..98e4f9c
--- /dev/null
+++ b/migrations/README
@@ -0,0 +1 @@
+Generic single-database configuration.
\ No newline at end of file
diff --git a/migrations/env.py b/migrations/env.py
new file mode 100644
index 0000000..188e278
--- /dev/null
+++ b/migrations/env.py
@@ -0,0 +1,79 @@
+from logging.config import fileConfig
+
+from alembic import context
+from sqlalchemy import engine_from_config, pool
+
+# this is the Alembic Config object, which provides
+# access to the values within the .ini file in use.
+config = context.config
+
+# Interpret the config file for Python logging.
+# This line sets up loggers basically.
+if config.config_file_name is not None:
+    fileConfig(config.config_file_name)
+
+# add your model's MetaData object here
+# for 'autogenerate' support
+from app.db.database import Base  # noqa: E402
+
+target_metadata = Base.metadata
+
+# other values from the config, defined by the needs of env.py,
+# can be acquired:
+# my_important_option = config.get_main_option("my_important_option")
+# ... etc.
+
+
+def run_migrations_offline() -> None:
+    """Run migrations in 'offline' mode.
+
+    This configures the context with just a URL
+    and not an Engine, though an Engine is acceptable
+    here as well.  By skipping the Engine creation
+    we don't even need a DBAPI to be available.
+
+    Calls to context.execute() here emit the given string to the
+    script output.
+
+    """
+    url = config.get_main_option("sqlalchemy.url")
+    context.configure(
+        url=url,
+        target_metadata=target_metadata,
+        literal_binds=True,
+        dialect_opts={"paramstyle": "named"},
+    )
+
+    with context.begin_transaction():
+        context.run_migrations()
+
+
+def run_migrations_online() -> None:
+    """Run migrations in 'online' mode.
+
+    In this scenario we need to create an Engine
+    and associate a connection with the context.
+
+    """
+    connectable = engine_from_config(
+        config.get_section(config.config_ini_section),
+        prefix="sqlalchemy.",
+        poolclass=pool.NullPool,
+    )
+
+    with connectable.connect() as connection:
+        is_sqlite = connection.dialect.name == 'sqlite'
+        context.configure(
+            connection=connection,
+            target_metadata=target_metadata,
+            render_as_batch=is_sqlite  # Key configuration for SQLite
+        )
+
+        with context.begin_transaction():
+            context.run_migrations()
+
+
+if context.is_offline_mode():
+    run_migrations_offline()
+else:
+    run_migrations_online()
\ No newline at end of file
diff --git a/migrations/script.py.mako b/migrations/script.py.mako
new file mode 100644
index 0000000..37d0cac
--- /dev/null
+++ b/migrations/script.py.mako
@@ -0,0 +1,24 @@
+"""${message}
+
+Revision ID: ${up_revision}
+Revises: ${down_revision | comma,n}
+Create Date: ${create_date}
+
+"""
+from alembic import op
+import sqlalchemy as sa
+${imports if imports else ""}
+
+# revision identifiers, used by Alembic.
+revision = ${repr(up_revision)}
+down_revision = ${repr(down_revision)}
+branch_labels = ${repr(branch_labels)}
+depends_on = ${repr(depends_on)}
+
+
+def upgrade() -> None:
+    ${upgrades if upgrades else "pass"}
+
+
+def downgrade() -> None:
+    ${downgrades if downgrades else "pass"}
\ No newline at end of file
diff --git a/migrations/versions/01_initial_migration.py b/migrations/versions/01_initial_migration.py
new file mode 100644
index 0000000..1c1b8f8
--- /dev/null
+++ b/migrations/versions/01_initial_migration.py
@@ -0,0 +1,38 @@
+"""initial migration
+
+Revision ID: 01_initial_migration
+Revises: 
+Create Date: 2023-10-15
+
+"""
+import sqlalchemy as sa
+from alembic import op
+
+# revision identifiers, used by Alembic.
+revision = '01_initial_migration'
+down_revision = None
+branch_labels = None
+depends_on = None
+
+
+def upgrade() -> None:
+    # Create item table
+    op.create_table(
+        'item',
+        sa.Column('id', sa.Integer(), nullable=False),
+        sa.Column('created_at', sa.DateTime(), nullable=True),
+        sa.Column('updated_at', sa.DateTime(), nullable=True),
+        sa.Column('name', sa.String(length=255), nullable=False),
+        sa.Column('description', sa.Text(), nullable=True),
+        sa.Column('is_active', sa.Boolean(), nullable=True),
+        sa.PrimaryKeyConstraint('id')
+    )
+    op.create_index(op.f('ix_item_id'), 'item', ['id'], unique=False)
+    op.create_index(op.f('ix_item_name'), 'item', ['name'], unique=False)
+
+
+def downgrade() -> None:
+    # Drop item table
+    op.drop_index(op.f('ix_item_name'), table_name='item')
+    op.drop_index(op.f('ix_item_id'), table_name='item')
+    op.drop_table('item')
\ No newline at end of file
diff --git a/pyproject.toml b/pyproject.toml
new file mode 100644
index 0000000..bad0625
--- /dev/null
+++ b/pyproject.toml
@@ -0,0 +1,33 @@
+[tool.ruff]
+line-length = 88
+target-version = "py39"
+exclude = [
+    ".bzr",
+    ".direnv",
+    ".eggs",
+    ".git",
+    ".git-rewrite",
+    ".hg",
+    ".mypy_cache",
+    ".nox",
+    ".pants.d",
+    ".pytype",
+    ".ruff_cache",
+    ".svn",
+    ".tox",
+    ".venv",
+    "__pypackages__",
+    "_build",
+    "buck-out",
+    "build",
+    "dist",
+    "node_modules",
+    "venv",
+]
+
+[tool.ruff.lint]
+select = ["E", "F", "I"]
+ignore = []
+
+[tool.ruff.lint.isort]
+known-third-party = []
\ No newline at end of file
diff --git a/requirements.txt b/requirements.txt
new file mode 100644
index 0000000..29876b5
--- /dev/null
+++ b/requirements.txt
@@ -0,0 +1,9 @@
+fastapi>=0.103.1
+uvicorn>=0.23.2
+sqlalchemy>=2.0.20
+alembic>=1.12.0
+pydantic>=2.3.0
+pydantic-settings>=2.0.3
+python-dotenv>=1.0.0
+ruff>=0.0.287
+email-validator>=2.0.0
\ No newline at end of file