diff --git a/README.md b/README.md
index e8acfba..f859f98 100644
--- a/README.md
+++ b/README.md
@@ -1,3 +1,109 @@
-# FastAPI Application
+# REST API Service
 
-This is a FastAPI application bootstrapped by BackendIM, the AI-powered backend generation platform.
+A comprehensive REST API built with FastAPI, SQLAlchemy, and SQLite.
+
+## Features
+
+- **FastAPI**: Modern, fast web framework for building APIs
+- **SQLAlchemy**: SQL toolkit and Object-Relational Mapping (ORM) library
+- **SQLite**: Lightweight database for data persistence
+- **Alembic**: Database migration tool
+- **CORS**: Cross-Origin Resource Sharing enabled for all origins
+- **Health Check**: Built-in health monitoring endpoint
+- **API Documentation**: Automatic interactive API docs via OpenAPI/Swagger
+
+## Project Structure
+
+```
+.
+├── main.py                 # Application entry point
+├── requirements.txt        # Python dependencies
+├── alembic.ini            # Alembic configuration
+├── alembic/               # Database migrations
+│   ├── env.py
+│   ├── script.py.mako
+│   └── versions/
+└── app/
+    ├── api/               # API routes
+    │   ├── items.py       # Items CRUD endpoints
+    │   └── routes.py      # Main router
+    ├── db/                # Database configuration
+    │   ├── base.py        # SQLAlchemy Base
+    │   └── session.py     # Database session
+    ├── models/            # SQLAlchemy models
+    │   └── item.py        # Item model
+    └── schemas/           # Pydantic schemas
+        └── item.py        # Item schemas
+```
+
+## Installation
+
+1. Install dependencies:
+```bash
+pip install -r requirements.txt
+```
+
+2. Run database migrations:
+```bash
+alembic upgrade head
+```
+
+## Running the Application
+
+Start the server with uvicorn:
+```bash
+uvicorn main:app --host 0.0.0.0 --port 8000 --reload
+```
+
+The API will be available at:
+- **API Base**: http://localhost:8000
+- **Interactive Docs**: http://localhost:8000/docs
+- **ReDoc**: http://localhost:8000/redoc
+- **OpenAPI Schema**: http://localhost:8000/openapi.json
+
+## API Endpoints
+
+### Core Endpoints
+- `GET /` - Service information
+- `GET /health` - Health check
+
+### Items API (`/api/v1/items`)
+- `POST /` - Create a new item
+- `GET /` - List all items (with pagination)
+- `GET /{item_id}` - Get item by ID
+- `PUT /{item_id}` - Update item by ID
+- `DELETE /{item_id}` - Delete item by ID
+
+## Database
+
+The application uses SQLite with the database file stored at `/app/storage/db/db.sqlite`.
+
+### Running Migrations
+
+Create a new migration:
+```bash
+alembic revision --autogenerate -m "Description of changes"
+```
+
+Apply migrations:
+```bash
+alembic upgrade head
+```
+
+## Development
+
+### Code Quality
+
+The project uses Ruff for code formatting and linting:
+```bash
+ruff check .
+ruff format .
+```
+
+### Environment Variables
+
+No environment variables are required for basic operation. The application uses SQLite with a default file path.
+
+## License
+
+This project is open source and available under the MIT License.
diff --git a/alembic.ini b/alembic.ini
new file mode 100644
index 0000000..a8e82d9
--- /dev/null
+++ b/alembic.ini
@@ -0,0 +1,41 @@
+[alembic]
+script_location = alembic
+file_template = %%(year)d%%(month).2d%%(day).2d_%%(hour).2d%%(minute).2d%%(second).2d_%%(slug)s
+
+sqlalchemy.url = sqlite:////app/storage/db/db.sqlite
+
+[post_write_hooks]
+
+[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/alembic/env.py b/alembic/env.py
new file mode 100644
index 0000000..8bb8b3c
--- /dev/null
+++ b/alembic/env.py
@@ -0,0 +1,52 @@
+from logging.config import fileConfig
+from sqlalchemy import engine_from_config
+from sqlalchemy import pool
+from alembic import context
+import sys
+from pathlib import Path
+
+# Add the project root to sys.path
+sys.path.insert(0, str(Path(__file__).parent.parent))
+
+from app.db.base import Base
+
+config = context.config
+
+if config.config_file_name is not None:
+    fileConfig(config.config_file_name)
+
+target_metadata = Base.metadata
+
+def run_migrations_offline() -> None:
+    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:
+    connectable = engine_from_config(
+        config.get_section(config.config_ini_section, {}),
+        prefix="sqlalchemy.",
+        poolclass=pool.NullPool,
+    )
+
+    with connectable.connect() as connection:
+        context.configure(
+            connection=connection, target_metadata=target_metadata
+        )
+
+        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/alembic/script.py.mako b/alembic/script.py.mako
new file mode 100644
index 0000000..37d0cac
--- /dev/null
+++ b/alembic/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/alembic/versions/20241219_120000_initial_migration.py b/alembic/versions/20241219_120000_initial_migration.py
new file mode 100644
index 0000000..af8e67c
--- /dev/null
+++ b/alembic/versions/20241219_120000_initial_migration.py
@@ -0,0 +1,35 @@
+"""Initial migration
+
+Revision ID: 001
+Revises: 
+Create Date: 2024-12-19 12:00:00.000000
+
+"""
+from alembic import op
+import sqlalchemy as sa
+
+# revision identifiers, used by Alembic.
+revision = '001'
+down_revision = None
+branch_labels = None
+depends_on = None
+
+
+def upgrade() -> None:
+    op.create_table('items',
+    sa.Column('id', sa.Integer(), nullable=False),
+    sa.Column('name', sa.String(), nullable=False),
+    sa.Column('description', sa.String(), nullable=True),
+    sa.Column('is_active', sa.Boolean(), nullable=True),
+    sa.Column('created_at', sa.DateTime(timezone=True), server_default=sa.text('(CURRENT_TIMESTAMP)'), nullable=True),
+    sa.Column('updated_at', sa.DateTime(timezone=True), nullable=True),
+    sa.PrimaryKeyConstraint('id')
+    )
+    op.create_index(op.f('ix_items_id'), 'items', ['id'], unique=False)
+    op.create_index(op.f('ix_items_name'), 'items', ['name'], unique=False)
+
+
+def downgrade() -> None:
+    op.drop_index(op.f('ix_items_name'), table_name='items')
+    op.drop_index(op.f('ix_items_id'), table_name='items')
+    op.drop_table('items')
\ 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/items.py b/app/api/items.py
new file mode 100644
index 0000000..9e42742
--- /dev/null
+++ b/app/api/items.py
@@ -0,0 +1,53 @@
+from fastapi import APIRouter, Depends, HTTPException
+from sqlalchemy.orm import Session
+from typing import List
+
+from app.db.session import get_db
+from app.models.item import Item
+from app.schemas.item import Item as ItemSchema, ItemCreate, ItemUpdate
+
+router = APIRouter()
+
+@router.post("/", response_model=ItemSchema)
+def create_item(item: ItemCreate, db: Session = Depends(get_db)):
+    db_item = Item(**item.dict())
+    db.add(db_item)
+    db.commit()
+    db.refresh(db_item)
+    return db_item
+
+@router.get("/", response_model=List[ItemSchema])
+def read_items(skip: int = 0, limit: int = 100, db: Session = Depends(get_db)):
+    items = db.query(Item).offset(skip).limit(limit).all()
+    return items
+
+@router.get("/{item_id}", response_model=ItemSchema)
+def read_item(item_id: int, db: Session = Depends(get_db)):
+    item = db.query(Item).filter(Item.id == item_id).first()
+    if item is None:
+        raise HTTPException(status_code=404, detail="Item not found")
+    return item
+
+@router.put("/{item_id}", response_model=ItemSchema)
+def update_item(item_id: int, item_update: ItemUpdate, db: Session = Depends(get_db)):
+    db_item = db.query(Item).filter(Item.id == item_id).first()
+    if db_item is None:
+        raise HTTPException(status_code=404, detail="Item not found")
+    
+    update_data = item_update.dict(exclude_unset=True)
+    for field, value in update_data.items():
+        setattr(db_item, field, value)
+    
+    db.commit()
+    db.refresh(db_item)
+    return db_item
+
+@router.delete("/{item_id}")
+def delete_item(item_id: int, db: Session = Depends(get_db)):
+    db_item = db.query(Item).filter(Item.id == item_id).first()
+    if db_item is None:
+        raise HTTPException(status_code=404, detail="Item not found")
+    
+    db.delete(db_item)
+    db.commit()
+    return {"message": "Item deleted successfully"}
\ No newline at end of file
diff --git a/app/api/routes.py b/app/api/routes.py
new file mode 100644
index 0000000..ef40ea7
--- /dev/null
+++ b/app/api/routes.py
@@ -0,0 +1,6 @@
+from fastapi import APIRouter
+from app.api 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/db/__init__.py b/app/db/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/db/base.py b/app/db/base.py
new file mode 100644
index 0000000..7c2377a
--- /dev/null
+++ b/app/db/base.py
@@ -0,0 +1,3 @@
+from sqlalchemy.ext.declarative import declarative_base
+
+Base = declarative_base()
\ No newline at end of file
diff --git a/app/db/session.py b/app/db/session.py
new file mode 100644
index 0000000..b6f41f1
--- /dev/null
+++ b/app/db/session.py
@@ -0,0 +1,22 @@
+from sqlalchemy import create_engine
+from sqlalchemy.orm import sessionmaker
+from pathlib import Path
+
+DB_DIR = Path("/app") / "storage" / "db"
+DB_DIR.mkdir(parents=True, exist_ok=True)
+
+SQLALCHEMY_DATABASE_URL = f"sqlite:///{DB_DIR}/db.sqlite"
+
+engine = create_engine(
+    SQLALCHEMY_DATABASE_URL,
+    connect_args={"check_same_thread": False}
+)
+
+SessionLocal = sessionmaker(autocommit=False, autoflush=False, bind=engine)
+
+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..e69de29
diff --git a/app/models/item.py b/app/models/item.py
new file mode 100644
index 0000000..c0ece9c
--- /dev/null
+++ b/app/models/item.py
@@ -0,0 +1,13 @@
+from sqlalchemy import Column, Integer, String, Boolean, DateTime
+from sqlalchemy.sql import func
+from app.db.base import Base
+
+class Item(Base):
+    __tablename__ = "items"
+
+    id = Column(Integer, primary_key=True, index=True)
+    name = Column(String, index=True, nullable=False)
+    description = Column(String, nullable=True)
+    is_active = Column(Boolean, default=True)
+    created_at = Column(DateTime(timezone=True), server_default=func.now())
+    updated_at = Column(DateTime(timezone=True), onupdate=func.now())
\ No newline at end of file
diff --git a/app/schemas/__init__.py b/app/schemas/__init__.py
new file mode 100644
index 0000000..e69de29
diff --git a/app/schemas/item.py b/app/schemas/item.py
new file mode 100644
index 0000000..0bd7fbf
--- /dev/null
+++ b/app/schemas/item.py
@@ -0,0 +1,24 @@
+from pydantic import BaseModel
+from datetime import datetime
+from typing import Optional
+
+class ItemBase(BaseModel):
+    name: str
+    description: Optional[str] = None
+    is_active: bool = True
+
+class ItemCreate(ItemBase):
+    pass
+
+class ItemUpdate(BaseModel):
+    name: Optional[str] = None
+    description: Optional[str] = None
+    is_active: Optional[bool] = None
+
+class Item(ItemBase):
+    id: int
+    created_at: datetime
+    updated_at: Optional[datetime] = None
+
+    class Config:
+        from_attributes = True
\ No newline at end of file
diff --git a/main.py b/main.py
new file mode 100644
index 0000000..29d4a1b
--- /dev/null
+++ b/main.py
@@ -0,0 +1,41 @@
+from fastapi import FastAPI
+from fastapi.middleware.cors import CORSMiddleware
+
+from app.api.routes import api_router
+from app.db.session import engine
+from app.db.base import Base
+
+app = FastAPI(
+    title="REST API Service",
+    description="A comprehensive REST API built with FastAPI",
+    version="1.0.0",
+    openapi_url="/openapi.json"
+)
+
+app.add_middleware(
+    CORSMiddleware,
+    allow_origins=["*"],
+    allow_credentials=True,
+    allow_methods=["*"],
+    allow_headers=["*"],
+)
+
+Base.metadata.create_all(bind=engine)
+
+app.include_router(api_router, prefix="/api/v1")
+
+@app.get("/")
+async def root():
+    return {
+        "title": "REST API Service",
+        "documentation": "/docs",
+        "health": "/health"
+    }
+
+@app.get("/health")
+async def health_check():
+    return {"status": "healthy", "service": "REST API Service"}
+
+if __name__ == "__main__":
+    import uvicorn
+    uvicorn.run(app, host="0.0.0.0", port=8000)
\ No newline at end of file
diff --git a/requirements.txt b/requirements.txt
new file mode 100644
index 0000000..9313193
--- /dev/null
+++ b/requirements.txt
@@ -0,0 +1,7 @@
+fastapi==0.104.1
+uvicorn[standard]==0.24.0
+sqlalchemy==2.0.23
+alembic==1.12.1
+python-multipart==0.0.6
+pydantic==2.5.0
+ruff==0.1.6
\ No newline at end of file