diff --git a/src/api/routes/agents.ts b/src/api/routes/agents.ts
new file mode 100644
index 0000000..ec84043
--- /dev/null
+++ b/src/api/routes/agents.ts
@@ -0,0 +1,303 @@
+/**
+ * Agents API Routes
+ * CRUD operations and status management for Claude Code agents
+ */
+
+import { db } from '../../db/client'
+import { agents, tasks } from '../../db/schema'
+import { eq } from 'drizzle-orm'
+import { randomUUID } from 'crypto'
+
+/**
+ * Handle all agent routes
+ */
+export async function handleAgentRoutes(req: Request, url: URL): Promise<Response> {
+  const method = req.method
+  const pathParts = url.pathname.split('/').filter(Boolean)
+
+  // GET /api/agents - List all agents
+  if (method === 'GET' && pathParts.length === 2) {
+    return await listAgents(url)
+  }
+
+  // GET /api/agents/:id - Get single agent
+  if (method === 'GET' && pathParts.length === 3) {
+    const agentId = pathParts[2]
+    return await getAgent(agentId)
+  }
+
+  // POST /api/agents - Register agent
+  if (method === 'POST' && pathParts.length === 2) {
+    return await registerAgent(req)
+  }
+
+  // PATCH /api/agents/:id - Update agent
+  if (method === 'PATCH' && pathParts.length === 3) {
+    const agentId = pathParts[2]
+    return await updateAgent(agentId, req)
+  }
+
+  // POST /api/agents/:id/heartbeat - Update heartbeat
+  if (method === 'POST' && pathParts.length === 4 && pathParts[3] === 'heartbeat') {
+    const agentId = pathParts[2]
+    return await updateHeartbeat(agentId)
+  }
+
+  // DELETE /api/agents/:id - Unregister agent
+  if (method === 'DELETE' && pathParts.length === 3) {
+    const agentId = pathParts[2]
+    return await unregisterAgent(agentId)
+  }
+
+  return new Response('Not Found', { status: 404 })
+}
+
+/**
+ * List agents with optional status filter
+ */
+async function listAgents(url: URL): Promise<Response> {
+  try {
+    const status = url.searchParams.get('status')
+
+    let query = db.select().from(agents)
+
+    if (status) {
+      query = query.where(eq(agents.status, status as any)) as any
+    }
+
+    const allAgents = await query
+
+    return Response.json({
+      success: true,
+      data: allAgents,
+      count: allAgents.length,
+    })
+  } catch (error) {
+    console.error('Error listing agents:', error)
+    return Response.json({
+      success: false,
+      error: 'Failed to list agents',
+    }, { status: 500 })
+  }
+}
+
+/**
+ * Get single agent
+ */
+async function getAgent(agentId: string): Promise<Response> {
+  try {
+    const agent = await db
+      .select()
+      .from(agents)
+      .where(eq(agents.id, agentId))
+      .limit(1)
+
+    if (agent.length === 0) {
+      return Response.json({
+        success: false,
+        error: 'Agent not found',
+      }, { status: 404 })
+    }
+
+    return Response.json({
+      success: true,
+      data: agent[0],
+    })
+  } catch (error) {
+    console.error('Error getting agent:', error)
+    return Response.json({
+      success: false,
+      error: 'Failed to get agent',
+    }, { status: 500 })
+  }
+}
+
+/**
+ * Register new agent (called when pod starts)
+ */
+async function registerAgent(req: Request): Promise<Response> {
+  try {
+    const body = await req.json()
+
+    // Validate required fields
+    if (!body.podName) {
+      return Response.json({
+        success: false,
+        error: 'podName is required',
+      }, { status: 400 })
+    }
+
+    // Check if agent with this podName already exists
+    const existing = await db
+      .select()
+      .from(agents)
+      .where(eq(agents.podName, body.podName))
+      .limit(1)
+
+    if (existing.length > 0) {
+      // Agent already exists, return existing
+      return Response.json({
+        success: true,
+        data: existing[0],
+        message: 'Agent already registered',
+      })
+    }
+
+    const newAgent = {
+      id: randomUUID(),
+      podName: body.podName,
+      k8sNamespace: body.k8sNamespace || 'agents',
+      status: 'idle' as const,
+      currentTaskId: null,
+      tasksCompleted: 0,
+      lastHeartbeat: new Date(),
+    }
+
+    await db.insert(agents).values(newAgent)
+
+    return Response.json({
+      success: true,
+      data: newAgent,
+    }, { status: 201 })
+  } catch (error) {
+    console.error('Error registering agent:', error)
+    return Response.json({
+      success: false,
+      error: 'Failed to register agent',
+    }, { status: 500 })
+  }
+}
+
+/**
+ * Update agent status and current task
+ */
+async function updateAgent(agentId: string, req: Request): Promise<Response> {
+  try {
+    const body = await req.json()
+
+    // Check if agent exists
+    const existing = await db
+      .select()
+      .from(agents)
+      .where(eq(agents.id, agentId))
+      .limit(1)
+
+    if (existing.length === 0) {
+      return Response.json({
+        success: false,
+        error: 'Agent not found',
+      }, { status: 404 })
+    }
+
+    // Build update object
+    const updateData: any = {}
+
+    if (body.status !== undefined) updateData.status = body.status
+    if (body.currentTaskId !== undefined) updateData.currentTaskId = body.currentTaskId
+    if (body.tasksCompleted !== undefined) updateData.tasksCompleted = body.tasksCompleted
+
+    await db
+      .update(agents)
+      .set(updateData)
+      .where(eq(agents.id, agentId))
+
+    // Get updated agent
+    const updated = await db
+      .select()
+      .from(agents)
+      .where(eq(agents.id, agentId))
+      .limit(1)
+
+    return Response.json({
+      success: true,
+      data: updated[0],
+    })
+  } catch (error) {
+    console.error('Error updating agent:', error)
+    return Response.json({
+      success: false,
+      error: 'Failed to update agent',
+    }, { status: 500 })
+  }
+}
+
+/**
+ * Update agent heartbeat (keep-alive)
+ */
+async function updateHeartbeat(agentId: string): Promise<Response> {
+  try {
+    // Check if agent exists
+    const existing = await db
+      .select()
+      .from(agents)
+      .where(eq(agents.id, agentId))
+      .limit(1)
+
+    if (existing.length === 0) {
+      return Response.json({
+        success: false,
+        error: 'Agent not found',
+      }, { status: 404 })
+    }
+
+    // Update heartbeat timestamp
+    await db
+      .update(agents)
+      .set({ lastHeartbeat: new Date() })
+      .where(eq(agents.id, agentId))
+
+    return Response.json({
+      success: true,
+      message: 'Heartbeat updated',
+    })
+  } catch (error) {
+    console.error('Error updating heartbeat:', error)
+    return Response.json({
+      success: false,
+      error: 'Failed to update heartbeat',
+    }, { status: 500 })
+  }
+}
+
+/**
+ * Unregister agent (called when pod terminates)
+ */
+async function unregisterAgent(agentId: string): Promise<Response> {
+  try {
+    // Check if agent exists
+    const existing = await db
+      .select()
+      .from(agents)
+      .where(eq(agents.id, agentId))
+      .limit(1)
+
+    if (existing.length === 0) {
+      return Response.json({
+        success: false,
+        error: 'Agent not found',
+      }, { status: 404 })
+    }
+
+    // If agent has a current task, set it to null
+    if (existing[0].currentTaskId) {
+      await db
+        .update(tasks)
+        .set({ assignedAgentId: null })
+        .where(eq(tasks.id, existing[0].currentTaskId))
+    }
+
+    // Delete agent
+    await db.delete(agents).where(eq(agents.id, agentId))
+
+    return Response.json({
+      success: true,
+      message: 'Agent unregistered',
+    })
+  } catch (error) {
+    console.error('Error unregistering agent:', error)
+    return Response.json({
+      success: false,
+      error: 'Failed to unregister agent',
+    }, { status: 500 })
+  }
+}
diff --git a/src/api/routes/index.ts b/src/api/routes/index.ts
new file mode 100644
index 0000000..ba2703a
--- /dev/null
+++ b/src/api/routes/index.ts
@@ -0,0 +1,8 @@
+/**
+ * API Routes Index
+ * Exports all route handlers
+ */
+
+export { handleProjectRoutes } from './projects'
+export { handleTaskRoutes } from './tasks'
+export { handleAgentRoutes } from './agents'
diff --git a/src/api/routes/projects.ts b/src/api/routes/projects.ts
new file mode 100644
index 0000000..95e60b3
--- /dev/null
+++ b/src/api/routes/projects.ts
@@ -0,0 +1,247 @@
+/**
+ * Projects API Routes
+ * CRUD operations for projects
+ */
+
+import { db } from '../../db/client'
+import { projects } from '../../db/schema'
+import { eq } from 'drizzle-orm'
+import { randomUUID } from 'crypto'
+
+/**
+ * Handle all project routes
+ */
+export async function handleProjectRoutes(req: Request, url: URL): Promise<Response> {
+  const method = req.method
+  const pathParts = url.pathname.split('/').filter(Boolean)
+
+  // GET /api/projects - List all projects
+  if (method === 'GET' && pathParts.length === 2) {
+    return await listProjects()
+  }
+
+  // GET /api/projects/:id - Get single project
+  if (method === 'GET' && pathParts.length === 3) {
+    const projectId = pathParts[2]
+    return await getProject(projectId)
+  }
+
+  // POST /api/projects - Create project
+  if (method === 'POST' && pathParts.length === 2) {
+    return await createProject(req)
+  }
+
+  // PATCH /api/projects/:id - Update project
+  if (method === 'PATCH' && pathParts.length === 3) {
+    const projectId = pathParts[2]
+    return await updateProject(projectId, req)
+  }
+
+  // DELETE /api/projects/:id - Delete project
+  if (method === 'DELETE' && pathParts.length === 3) {
+    const projectId = pathParts[2]
+    return await deleteProject(projectId)
+  }
+
+  return new Response('Not Found', { status: 404 })
+}
+
+/**
+ * List all projects
+ */
+async function listProjects(): Promise<Response> {
+  try {
+    const allProjects = await db.select().from(projects)
+
+    return Response.json({
+      success: true,
+      data: allProjects,
+      count: allProjects.length,
+    })
+  } catch (error) {
+    console.error('Error listing projects:', error)
+    return Response.json({
+      success: false,
+      error: 'Failed to list projects',
+    }, { status: 500 })
+  }
+}
+
+/**
+ * Get single project
+ */
+async function getProject(projectId: string): Promise<Response> {
+  try {
+    const project = await db
+      .select()
+      .from(projects)
+      .where(eq(projects.id, projectId))
+      .limit(1)
+
+    if (project.length === 0) {
+      return Response.json({
+        success: false,
+        error: 'Project not found',
+      }, { status: 404 })
+    }
+
+    return Response.json({
+      success: true,
+      data: project[0],
+    })
+  } catch (error) {
+    console.error('Error getting project:', error)
+    return Response.json({
+      success: false,
+      error: 'Failed to get project',
+    }, { status: 500 })
+  }
+}
+
+/**
+ * Create project
+ */
+async function createProject(req: Request): Promise<Response> {
+  try {
+    const body = await req.json()
+
+    // Validate required fields
+    if (!body.name) {
+      return Response.json({
+        success: false,
+        error: 'Name is required',
+      }, { status: 400 })
+    }
+
+    // Generate k8s namespace name from project name
+    const k8sNamespace = `proj-${body.name.toLowerCase().replace(/[^a-z0-9-]/g, '-')}`
+
+    const newProject = {
+      id: randomUUID(),
+      name: body.name,
+      description: body.description || null,
+      k8sNamespace,
+      giteaRepoId: body.giteaRepoId || null,
+      giteaRepoUrl: body.giteaRepoUrl || null,
+      giteaOwner: body.giteaOwner || null,
+      giteaRepoName: body.giteaRepoName || null,
+      defaultBranch: body.defaultBranch || 'main',
+      dockerImage: body.dockerImage || null,
+      envVars: body.envVars || null,
+      replicas: body.replicas || 1,
+      cpuLimit: body.cpuLimit || '500m',
+      memoryLimit: body.memoryLimit || '512Mi',
+      status: body.status || 'active',
+    }
+
+    await db.insert(projects).values(newProject)
+
+    return Response.json({
+      success: true,
+      data: newProject,
+    }, { status: 201 })
+  } catch (error) {
+    console.error('Error creating project:', error)
+    return Response.json({
+      success: false,
+      error: 'Failed to create project',
+    }, { status: 500 })
+  }
+}
+
+/**
+ * Update project
+ */
+async function updateProject(projectId: string, req: Request): Promise<Response> {
+  try {
+    const body = await req.json()
+
+    // Check if project exists
+    const existing = await db
+      .select()
+      .from(projects)
+      .where(eq(projects.id, projectId))
+      .limit(1)
+
+    if (existing.length === 0) {
+      return Response.json({
+        success: false,
+        error: 'Project not found',
+      }, { status: 404 })
+    }
+
+    // Update only provided fields
+    const updateData: any = {}
+
+    if (body.name !== undefined) updateData.name = body.name
+    if (body.description !== undefined) updateData.description = body.description
+    if (body.giteaRepoId !== undefined) updateData.giteaRepoId = body.giteaRepoId
+    if (body.giteaRepoUrl !== undefined) updateData.giteaRepoUrl = body.giteaRepoUrl
+    if (body.giteaOwner !== undefined) updateData.giteaOwner = body.giteaOwner
+    if (body.giteaRepoName !== undefined) updateData.giteaRepoName = body.giteaRepoName
+    if (body.defaultBranch !== undefined) updateData.defaultBranch = body.defaultBranch
+    if (body.dockerImage !== undefined) updateData.dockerImage = body.dockerImage
+    if (body.envVars !== undefined) updateData.envVars = body.envVars
+    if (body.replicas !== undefined) updateData.replicas = body.replicas
+    if (body.cpuLimit !== undefined) updateData.cpuLimit = body.cpuLimit
+    if (body.memoryLimit !== undefined) updateData.memoryLimit = body.memoryLimit
+    if (body.status !== undefined) updateData.status = body.status
+
+    await db
+      .update(projects)
+      .set(updateData)
+      .where(eq(projects.id, projectId))
+
+    // Get updated project
+    const updated = await db
+      .select()
+      .from(projects)
+      .where(eq(projects.id, projectId))
+      .limit(1)
+
+    return Response.json({
+      success: true,
+      data: updated[0],
+    })
+  } catch (error) {
+    console.error('Error updating project:', error)
+    return Response.json({
+      success: false,
+      error: 'Failed to update project',
+    }, { status: 500 })
+  }
+}
+
+/**
+ * Delete project
+ */
+async function deleteProject(projectId: string): Promise<Response> {
+  try {
+    // Check if project exists
+    const existing = await db
+      .select()
+      .from(projects)
+      .where(eq(projects.id, projectId))
+      .limit(1)
+
+    if (existing.length === 0) {
+      return Response.json({
+        success: false,
+        error: 'Project not found',
+      }, { status: 404 })
+    }
+
+    await db.delete(projects).where(eq(projects.id, projectId))
+
+    return Response.json({
+      success: true,
+      message: 'Project deleted',
+    })
+  } catch (error) {
+    console.error('Error deleting project:', error)
+    return Response.json({
+      success: false,
+      error: 'Failed to delete project',
+    }, { status: 500 })
+  }
+}
diff --git a/src/api/routes/tasks.ts b/src/api/routes/tasks.ts
new file mode 100644
index 0000000..c69a4ae
--- /dev/null
+++ b/src/api/routes/tasks.ts
@@ -0,0 +1,328 @@
+/**
+ * Tasks API Routes
+ * CRUD operations and state management for tasks
+ */
+
+import { db } from '../../db/client'
+import { tasks, projects, agents } from '../../db/schema'
+import { eq, and, or } from 'drizzle-orm'
+import { randomUUID } from 'crypto'
+
+/**
+ * Handle all task routes
+ */
+export async function handleTaskRoutes(req: Request, url: URL): Promise<Response> {
+  const method = req.method
+  const pathParts = url.pathname.split('/').filter(Boolean)
+
+  // GET /api/tasks - List tasks (with filters)
+  if (method === 'GET' && pathParts.length === 2) {
+    return await listTasks(url)
+  }
+
+  // GET /api/tasks/:id - Get single task
+  if (method === 'GET' && pathParts.length === 3) {
+    const taskId = pathParts[2]
+    return await getTask(taskId)
+  }
+
+  // POST /api/tasks - Create task
+  if (method === 'POST' && pathParts.length === 2) {
+    return await createTask(req)
+  }
+
+  // PATCH /api/tasks/:id - Update task
+  if (method === 'PATCH' && pathParts.length === 3) {
+    const taskId = pathParts[2]
+    return await updateTask(taskId, req)
+  }
+
+  // POST /api/tasks/:id/respond - Respond to task question
+  if (method === 'POST' && pathParts.length === 4 && pathParts[3] === 'respond') {
+    const taskId = pathParts[2]
+    return await respondToTask(taskId, req)
+  }
+
+  // DELETE /api/tasks/:id - Delete task
+  if (method === 'DELETE' && pathParts.length === 3) {
+    const taskId = pathParts[2]
+    return await deleteTask(taskId)
+  }
+
+  return new Response('Not Found', { status: 404 })
+}
+
+/**
+ * List tasks with optional filters
+ */
+async function listTasks(url: URL): Promise<Response> {
+  try {
+    const projectId = url.searchParams.get('projectId')
+    const state = url.searchParams.get('state')
+    const assignedAgentId = url.searchParams.get('assignedAgentId')
+
+    let query = db.select().from(tasks)
+
+    // Apply filters
+    const conditions = []
+    if (projectId) conditions.push(eq(tasks.projectId, projectId))
+    if (state) conditions.push(eq(tasks.state, state as any))
+    if (assignedAgentId) conditions.push(eq(tasks.assignedAgentId, assignedAgentId))
+
+    if (conditions.length > 0) {
+      query = query.where(and(...conditions)) as any
+    }
+
+    const allTasks = await query
+
+    return Response.json({
+      success: true,
+      data: allTasks,
+      count: allTasks.length,
+    })
+  } catch (error) {
+    console.error('Error listing tasks:', error)
+    return Response.json({
+      success: false,
+      error: 'Failed to list tasks',
+    }, { status: 500 })
+  }
+}
+
+/**
+ * Get single task with project and agent details
+ */
+async function getTask(taskId: string): Promise<Response> {
+  try {
+    const task = await db
+      .select()
+      .from(tasks)
+      .where(eq(tasks.id, taskId))
+      .limit(1)
+
+    if (task.length === 0) {
+      return Response.json({
+        success: false,
+        error: 'Task not found',
+      }, { status: 404 })
+    }
+
+    return Response.json({
+      success: true,
+      data: task[0],
+    })
+  } catch (error) {
+    console.error('Error getting task:', error)
+    return Response.json({
+      success: false,
+      error: 'Failed to get task',
+    }, { status: 500 })
+  }
+}
+
+/**
+ * Create task
+ */
+async function createTask(req: Request): Promise<Response> {
+  try {
+    const body = await req.json()
+
+    // Validate required fields
+    if (!body.projectId) {
+      return Response.json({
+        success: false,
+        error: 'projectId is required',
+      }, { status: 400 })
+    }
+
+    if (!body.title) {
+      return Response.json({
+        success: false,
+        error: 'title is required',
+      }, { status: 400 })
+    }
+
+    // Verify project exists
+    const project = await db
+      .select()
+      .from(projects)
+      .where(eq(projects.id, body.projectId))
+      .limit(1)
+
+    if (project.length === 0) {
+      return Response.json({
+        success: false,
+        error: 'Project not found',
+      }, { status: 404 })
+    }
+
+    const newTask = {
+      id: randomUUID(),
+      projectId: body.projectId,
+      title: body.title,
+      description: body.description || null,
+      priority: body.priority || 'medium',
+      state: body.state || 'backlog',
+      assignedAgentId: body.assignedAgentId || null,
+      branchName: body.branchName || null,
+      prUrl: body.prUrl || null,
+      previewUrl: body.previewUrl || null,
+    }
+
+    await db.insert(tasks).values(newTask)
+
+    return Response.json({
+      success: true,
+      data: newTask,
+    }, { status: 201 })
+  } catch (error) {
+    console.error('Error creating task:', error)
+    return Response.json({
+      success: false,
+      error: 'Failed to create task',
+    }, { status: 500 })
+  }
+}
+
+/**
+ * Update task (including state transitions)
+ */
+async function updateTask(taskId: string, req: Request): Promise<Response> {
+  try {
+    const body = await req.json()
+
+    // Check if task exists
+    const existing = await db
+      .select()
+      .from(tasks)
+      .where(eq(tasks.id, taskId))
+      .limit(1)
+
+    if (existing.length === 0) {
+      return Response.json({
+        success: false,
+        error: 'Task not found',
+      }, { status: 404 })
+    }
+
+    // Build update object
+    const updateData: any = {}
+
+    if (body.title !== undefined) updateData.title = body.title
+    if (body.description !== undefined) updateData.description = body.description
+    if (body.priority !== undefined) updateData.priority = body.priority
+    if (body.state !== undefined) updateData.state = body.state
+    if (body.assignedAgentId !== undefined) updateData.assignedAgentId = body.assignedAgentId
+    if (body.branchName !== undefined) updateData.branchName = body.branchName
+    if (body.prUrl !== undefined) updateData.prUrl = body.prUrl
+    if (body.previewUrl !== undefined) updateData.previewUrl = body.previewUrl
+
+    await db
+      .update(tasks)
+      .set(updateData)
+      .where(eq(tasks.id, taskId))
+
+    // Get updated task
+    const updated = await db
+      .select()
+      .from(tasks)
+      .where(eq(tasks.id, taskId))
+      .limit(1)
+
+    return Response.json({
+      success: true,
+      data: updated[0],
+    })
+  } catch (error) {
+    console.error('Error updating task:', error)
+    return Response.json({
+      success: false,
+      error: 'Failed to update task',
+    }, { status: 500 })
+  }
+}
+
+/**
+ * Respond to task (used when task is in needs_input state)
+ */
+async function respondToTask(taskId: string, req: Request): Promise<Response> {
+  try {
+    const body = await req.json()
+
+    // Check if task exists and is in needs_input state
+    const existing = await db
+      .select()
+      .from(tasks)
+      .where(eq(tasks.id, taskId))
+      .limit(1)
+
+    if (existing.length === 0) {
+      return Response.json({
+        success: false,
+        error: 'Task not found',
+      }, { status: 404 })
+    }
+
+    if (existing[0].state !== 'needs_input') {
+      return Response.json({
+        success: false,
+        error: 'Task is not waiting for input',
+      }, { status: 400 })
+    }
+
+    // Update state to in_progress
+    await db
+      .update(tasks)
+      .set({ state: 'in_progress' })
+      .where(eq(tasks.id, taskId))
+
+    // TODO: Notify agent via MCP about the response
+    // This will be implemented in the MCP server
+
+    return Response.json({
+      success: true,
+      message: 'Response sent to agent',
+      response: body.response,
+    })
+  } catch (error) {
+    console.error('Error responding to task:', error)
+    return Response.json({
+      success: false,
+      error: 'Failed to respond to task',
+    }, { status: 500 })
+  }
+}
+
+/**
+ * Delete task
+ */
+async function deleteTask(taskId: string): Promise<Response> {
+  try {
+    // Check if task exists
+    const existing = await db
+      .select()
+      .from(tasks)
+      .where(eq(tasks.id, taskId))
+      .limit(1)
+
+    if (existing.length === 0) {
+      return Response.json({
+        success: false,
+        error: 'Task not found',
+      }, { status: 404 })
+    }
+
+    await db.delete(tasks).where(eq(tasks.id, taskId))
+
+    return Response.json({
+      success: true,
+      message: 'Task deleted',
+    })
+  } catch (error) {
+    console.error('Error deleting task:', error)
+    return Response.json({
+      success: false,
+      error: 'Failed to delete task',
+    }, { status: 500 })
+  }
+}
diff --git a/src/db/migrate.ts b/src/db/migrate.ts
index b3eae69..d7f03d5 100644
--- a/src/db/migrate.ts
+++ b/src/db/migrate.ts
@@ -25,7 +25,22 @@ export async function runMigrations() {
     console.log('✅ Migrations completed successfully')
     await connection.end()
     return true
-  } catch (error) {
+  } catch (error: any) {
+    // If table already exists, it's not a fatal error
+    const errorMessage = error?.message || String(error)
+    const errorCode = error?.code || error?.cause?.code
+    const errorErrno = error?.errno || error?.cause?.errno
+
+    if (
+      errorCode === 'ER_TABLE_EXISTS_ERROR' ||
+      errorErrno === 1050 ||
+      errorMessage.includes('already exists')
+    ) {
+      console.log('⚠️  Tables already exist, skipping migrations')
+      await connection.end()
+      return true
+    }
+
     console.error('❌ Migration failed:', error)
     await connection.end()
     throw error
diff --git a/src/index.ts b/src/index.ts
index 1bf848e..208d489 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -5,6 +5,7 @@
 
 import { runMigrations } from './db/migrate'
 import { testConnection } from './db/client'
+import { handleProjectRoutes, handleTaskRoutes, handleAgentRoutes } from './api/routes'
 
 console.log('🚀 Starting AiWorker Backend...')
 console.log(`Bun version: ${Bun.version}`)
@@ -41,11 +42,43 @@ const server = Bun.serve({
     }
 
     // API routes
+    if (url.pathname.startsWith('/api/projects')) {
+      return handleProjectRoutes(req, url)
+    }
+
+    if (url.pathname.startsWith('/api/tasks')) {
+      return handleTaskRoutes(req, url)
+    }
+
+    if (url.pathname.startsWith('/api/agents')) {
+      return handleAgentRoutes(req, url)
+    }
+
+    // Generic API info
     if (url.pathname.startsWith('/api/')) {
       return Response.json({
         message: 'AiWorker API',
-        path: url.pathname,
-        method: req.method,
+        version: '1.0.0',
+        endpoints: [
+          'GET /api/health',
+          'GET /api/projects',
+          'GET /api/projects/:id',
+          'POST /api/projects',
+          'PATCH /api/projects/:id',
+          'DELETE /api/projects/:id',
+          'GET /api/tasks',
+          'GET /api/tasks/:id',
+          'POST /api/tasks',
+          'PATCH /api/tasks/:id',
+          'POST /api/tasks/:id/respond',
+          'DELETE /api/tasks/:id',
+          'GET /api/agents',
+          'GET /api/agents/:id',
+          'POST /api/agents',
+          'PATCH /api/agents/:id',
+          'POST /api/agents/:id/heartbeat',
+          'DELETE /api/agents/:id',
+        ],
       })
     }
 
diff --git a/src/services/gitea/client.ts b/src/services/gitea/client.ts
new file mode 100644
index 0000000..7973ff6
--- /dev/null
+++ b/src/services/gitea/client.ts
@@ -0,0 +1,169 @@
+/**
+ * Gitea API Client
+ * Handles interactions with Gitea API
+ */
+
+const GITEA_URL = process.env.GITEA_URL || 'https://git.fuq.tv'
+const GITEA_TOKEN = process.env.GITEA_TOKEN || ''
+
+interface GiteaBranchOptions {
+  owner: string
+  repo: string
+  branchName: string
+  fromBranch: string
+}
+
+interface GiteaPullRequestOptions {
+  owner: string
+  repo: string
+  title: string
+  body: string
+  head: string
+  base: string
+}
+
+/**
+ * Make authenticated request to Gitea API
+ */
+async function giteaRequest(path: string, options: RequestInit = {}) {
+  const url = `${GITEA_URL}/api/v1${path}`
+
+  const response = await fetch(url, {
+    ...options,
+    headers: {
+      'Authorization': `token ${GITEA_TOKEN}`,
+      'Content-Type': 'application/json',
+      ...options.headers,
+    },
+  })
+
+  if (!response.ok) {
+    const error = await response.text()
+    throw new Error(`Gitea API error: ${response.status} - ${error}`)
+  }
+
+  return response.json()
+}
+
+/**
+ * Create a new branch in Gitea
+ */
+export async function createGiteaBranch(options: GiteaBranchOptions) {
+  const { owner, repo, branchName, fromBranch } = options
+
+  try {
+    // Get the ref of the source branch
+    const refData = await giteaRequest(
+      `/repos/${owner}/${repo}/git/refs/heads/${fromBranch}`
+    )
+
+    // Create new branch from the ref
+    const result = await giteaRequest(
+      `/repos/${owner}/${repo}/branches`,
+      {
+        method: 'POST',
+        body: JSON.stringify({
+          new_branch_name: branchName,
+          old_ref_name: fromBranch,
+        }),
+      }
+    )
+
+    return result
+  } catch (error: any) {
+    console.error('Error creating Gitea branch:', error)
+    throw error
+  }
+}
+
+/**
+ * Create a Pull Request in Gitea
+ */
+export async function createGiteaPullRequest(options: GiteaPullRequestOptions) {
+  const { owner, repo, title, body, head, base } = options
+
+  try {
+    const result = await giteaRequest(
+      `/repos/${owner}/${repo}/pulls`,
+      {
+        method: 'POST',
+        body: JSON.stringify({
+          title,
+          body,
+          head,
+          base,
+        }),
+      }
+    )
+
+    return result
+  } catch (error: any) {
+    console.error('Error creating Gitea PR:', error)
+    throw error
+  }
+}
+
+/**
+ * Get repository information
+ */
+export async function getGiteaRepo(owner: string, repo: string) {
+  try {
+    return await giteaRequest(`/repos/${owner}/${repo}`)
+  } catch (error: any) {
+    console.error('Error getting Gitea repo:', error)
+    throw error
+  }
+}
+
+/**
+ * Create a new repository
+ */
+export async function createGiteaRepo(name: string, description: string, isPrivate = false) {
+  try {
+    const result = await giteaRequest(
+      `/user/repos`,
+      {
+        method: 'POST',
+        body: JSON.stringify({
+          name,
+          description,
+          private: isPrivate,
+          auto_init: true,
+          default_branch: 'main',
+        }),
+      }
+    )
+
+    return result
+  } catch (error: any) {
+    console.error('Error creating Gitea repo:', error)
+    throw error
+  }
+}
+
+/**
+ * Merge a Pull Request
+ */
+export async function mergeGiteaPullRequest(
+  owner: string,
+  repo: string,
+  prNumber: number,
+  method: 'merge' | 'rebase' | 'squash' = 'merge'
+) {
+  try {
+    const result = await giteaRequest(
+      `/repos/${owner}/${repo}/pulls/${prNumber}/merge`,
+      {
+        method: 'POST',
+        body: JSON.stringify({
+          Do: method,
+        }),
+      }
+    )
+
+    return result
+  } catch (error: any) {
+    console.error('Error merging Gitea PR:', error)
+    throw error
+  }
+}
diff --git a/src/services/mcp/server.ts b/src/services/mcp/server.ts
new file mode 100644
index 0000000..9ada2c6
--- /dev/null
+++ b/src/services/mcp/server.ts
@@ -0,0 +1,178 @@
+/**
+ * MCP Server - Model Context Protocol
+ * Handles communication with Claude Code agents
+ */
+
+import { Server } from '@modelcontextprotocol/sdk/server/index.js'
+import { StdioServerTransport } from '@modelcontextprotocol/sdk/server/stdio.js'
+import {
+  CallToolRequestSchema,
+  ListToolsRequestSchema,
+} from '@modelcontextprotocol/sdk/types.js'
+
+import { handleGetNextTask } from './tools/get-next-task'
+import { handleUpdateTaskStatus } from './tools/update-task-status'
+import { handleCreateBranch } from './tools/create-branch'
+import { handleCreatePullRequest } from './tools/create-pull-request'
+
+/**
+ * MCP Server for agent communication
+ */
+export class MCPServer {
+  private server: Server
+
+  constructor() {
+    this.server = new Server(
+      {
+        name: 'aiworker-mcp',
+        version: '1.0.0',
+      },
+      {
+        capabilities: {
+          tools: {},
+        },
+      }
+    )
+
+    this.setupHandlers()
+  }
+
+  private setupHandlers() {
+    // List available tools
+    this.server.setRequestHandler(ListToolsRequestSchema, async () => ({
+      tools: [
+        {
+          name: 'get_next_task',
+          description: 'Get the next available task from the queue and assign it to the agent',
+          inputSchema: {
+            type: 'object',
+            properties: {
+              agentId: {
+                type: 'string',
+                description: 'UUID of the agent requesting a task',
+              },
+              capabilities: {
+                type: 'array',
+                items: { type: 'string' },
+                description: 'List of agent capabilities (optional)',
+              },
+            },
+            required: ['agentId'],
+          },
+        },
+        {
+          name: 'update_task_status',
+          description: 'Update the status of a task',
+          inputSchema: {
+            type: 'object',
+            properties: {
+              taskId: {
+                type: 'string',
+                description: 'UUID of the task',
+              },
+              status: {
+                type: 'string',
+                enum: ['in_progress', 'needs_input', 'ready_to_test', 'approved', 'staging', 'production'],
+                description: 'New status for the task',
+              },
+              metadata: {
+                type: 'object',
+                description: 'Additional metadata about the update (optional)',
+              },
+            },
+            required: ['taskId', 'status'],
+          },
+        },
+        {
+          name: 'create_branch',
+          description: 'Create a new branch in Gitea for the task',
+          inputSchema: {
+            type: 'object',
+            properties: {
+              taskId: {
+                type: 'string',
+                description: 'UUID of the task',
+              },
+              branchName: {
+                type: 'string',
+                description: 'Name for the branch (optional, auto-generated if not provided)',
+              },
+            },
+            required: ['taskId'],
+          },
+        },
+        {
+          name: 'create_pull_request',
+          description: 'Create a Pull Request in Gitea with the task changes',
+          inputSchema: {
+            type: 'object',
+            properties: {
+              taskId: {
+                type: 'string',
+                description: 'UUID of the task',
+              },
+              title: {
+                type: 'string',
+                description: 'Title for the PR',
+              },
+              description: {
+                type: 'string',
+                description: 'Description/body of the PR (supports markdown)',
+              },
+            },
+            required: ['taskId', 'title', 'description'],
+          },
+        },
+      ],
+    }))
+
+    // Handle tool calls
+    this.server.setRequestHandler(CallToolRequestSchema, async (request) => {
+      const { name, arguments: args } = request.params
+
+      try {
+        switch (name) {
+          case 'get_next_task':
+            return await handleGetNextTask(args)
+
+          case 'update_task_status':
+            return await handleUpdateTaskStatus(args)
+
+          case 'create_branch':
+            return await handleCreateBranch(args)
+
+          case 'create_pull_request':
+            return await handleCreatePullRequest(args)
+
+          default:
+            throw new Error(`Unknown tool: ${name}`)
+        }
+      } catch (error: any) {
+        return {
+          content: [
+            {
+              type: 'text',
+              text: `Error: ${error.message}`,
+            },
+          ],
+          isError: true,
+        }
+      }
+    })
+  }
+
+  /**
+   * Start the MCP server with stdio transport
+   */
+  async start() {
+    const transport = new StdioServerTransport()
+    await this.server.connect(transport)
+    console.log('🤖 MCP Server started (stdio transport)')
+  }
+}
+
+// Run if executed directly
+if (import.meta.main) {
+  const server = new MCPServer()
+  await server.start()
+}
diff --git a/src/services/mcp/tools/create-branch.ts b/src/services/mcp/tools/create-branch.ts
new file mode 100644
index 0000000..c518d49
--- /dev/null
+++ b/src/services/mcp/tools/create-branch.ts
@@ -0,0 +1,87 @@
+/**
+ * MCP Tool: create_branch
+ * Creates a new branch in Gitea for the task
+ */
+
+import { db } from '../../../db/client'
+import { tasks, projects } from '../../../db/schema'
+import { eq } from 'drizzle-orm'
+import { createGiteaBranch } from '../../gitea/client'
+
+interface CreateBranchArgs {
+  taskId: string
+  branchName?: string
+}
+
+/**
+ * Generate branch name from task
+ */
+function generateBranchName(task: any): string {
+  const shortId = task.id.substring(0, 8)
+  const slugified = task.title
+    .toLowerCase()
+    .replace(/[^a-z0-9]+/g, '-')
+    .replace(/^-|-$/g, '')
+    .substring(0, 40)
+
+  return `task-${shortId}-${slugified}`
+}
+
+export async function handleCreateBranch(args: any) {
+  const { taskId, branchName } = args as CreateBranchArgs
+
+  try {
+    // Get task and project
+    const task = await db
+      .select()
+      .from(tasks)
+      .where(eq(tasks.id, taskId))
+      .limit(1)
+
+    if (task.length === 0) {
+      throw new Error('Task not found')
+    }
+
+    const project = await db
+      .select()
+      .from(projects)
+      .where(eq(projects.id, task[0].projectId))
+      .limit(1)
+
+    if (project.length === 0) {
+      throw new Error('Project not found')
+    }
+
+    // Generate or use provided branch name
+    const finalBranchName = branchName || generateBranchName(task[0])
+
+    // Create branch in Gitea
+    const result = await createGiteaBranch({
+      owner: project[0].giteaOwner || 'admin',
+      repo: project[0].giteaRepoName || '',
+      branchName: finalBranchName,
+      fromBranch: project[0].defaultBranch || 'main',
+    })
+
+    // Update task with branch name
+    await db
+      .update(tasks)
+      .set({ branchName: finalBranchName })
+      .where(eq(tasks.id, taskId))
+
+    return {
+      content: [
+        {
+          type: 'text',
+          text: JSON.stringify({
+            success: true,
+            branchName: finalBranchName,
+            repoUrl: project[0].giteaRepoUrl,
+          }),
+        },
+      ],
+    }
+  } catch (error: any) {
+    throw new Error(`Failed to create branch: ${error.message}`)
+  }
+}
diff --git a/src/services/mcp/tools/create-pull-request.ts b/src/services/mcp/tools/create-pull-request.ts
new file mode 100644
index 0000000..d4bbacd
--- /dev/null
+++ b/src/services/mcp/tools/create-pull-request.ts
@@ -0,0 +1,80 @@
+/**
+ * MCP Tool: create_pull_request
+ * Creates a Pull Request in Gitea with the task changes
+ */
+
+import { db } from '../../../db/client'
+import { tasks, projects } from '../../../db/schema'
+import { eq } from 'drizzle-orm'
+import { createGiteaPullRequest } from '../../gitea/client'
+
+interface CreatePullRequestArgs {
+  taskId: string
+  title: string
+  description: string
+}
+
+export async function handleCreatePullRequest(args: any) {
+  const { taskId, title, description } = args as CreatePullRequestArgs
+
+  try {
+    // Get task and project
+    const task = await db
+      .select()
+      .from(tasks)
+      .where(eq(tasks.id, taskId))
+      .limit(1)
+
+    if (task.length === 0) {
+      throw new Error('Task not found')
+    }
+
+    if (!task[0].branchName) {
+      throw new Error('Task has no branch. Create a branch first with create_branch')
+    }
+
+    const project = await db
+      .select()
+      .from(projects)
+      .where(eq(projects.id, task[0].projectId))
+      .limit(1)
+
+    if (project.length === 0) {
+      throw new Error('Project not found')
+    }
+
+    // Create PR in Gitea
+    const result = await createGiteaPullRequest({
+      owner: project[0].giteaOwner || 'admin',
+      repo: project[0].giteaRepoName || '',
+      title,
+      body: description,
+      head: task[0].branchName,
+      base: project[0].defaultBranch || 'main',
+    })
+
+    // Update task with PR info
+    await db
+      .update(tasks)
+      .set({
+        prUrl: result.html_url,
+        state: 'ready_to_test',
+      })
+      .where(eq(tasks.id, taskId))
+
+    return {
+      content: [
+        {
+          type: 'text',
+          text: JSON.stringify({
+            success: true,
+            prUrl: result.html_url,
+            prNumber: result.number,
+          }),
+        },
+      ],
+    }
+  } catch (error: any) {
+    throw new Error(`Failed to create pull request: ${error.message}`)
+  }
+}
diff --git a/src/services/mcp/tools/get-next-task.ts b/src/services/mcp/tools/get-next-task.ts
new file mode 100644
index 0000000..7763969
--- /dev/null
+++ b/src/services/mcp/tools/get-next-task.ts
@@ -0,0 +1,113 @@
+/**
+ * MCP Tool: get_next_task
+ * Gets the next available task from the queue and assigns it to the agent
+ */
+
+import { db } from '../../../db/client'
+import { tasks, projects, agents } from '../../../db/schema'
+import { eq, and } from 'drizzle-orm'
+
+interface GetNextTaskArgs {
+  agentId: string
+  capabilities?: string[]
+}
+
+export async function handleGetNextTask(args: any) {
+  const { agentId, capabilities } = args as GetNextTaskArgs
+
+  try {
+    // Verify agent exists
+    const agent = await db
+      .select()
+      .from(agents)
+      .where(eq(agents.id, agentId))
+      .limit(1)
+
+    if (agent.length === 0) {
+      throw new Error('Agent not found')
+    }
+
+    // Get next available task (state = 'backlog', priority descending)
+    const availableTasks = await db
+      .select()
+      .from(tasks)
+      .where(eq(tasks.state, 'backlog'))
+      .orderBy(tasks.priority)
+      .limit(1)
+
+    if (availableTasks.length === 0) {
+      return {
+        content: [
+          {
+            type: 'text',
+            text: JSON.stringify({
+              task: null,
+              message: 'No tasks available',
+            }),
+          },
+        ],
+      }
+    }
+
+    const task = availableTasks[0]
+
+    // Get project details
+    const project = await db
+      .select()
+      .from(projects)
+      .where(eq(projects.id, task.projectId))
+      .limit(1)
+
+    if (project.length === 0) {
+      throw new Error('Project not found for task')
+    }
+
+    // Assign task to agent
+    await db
+      .update(tasks)
+      .set({
+        state: 'in_progress',
+        assignedAgentId: agentId,
+      })
+      .where(eq(tasks.id, task.id))
+
+    // Update agent status
+    await db
+      .update(agents)
+      .set({
+        status: 'busy',
+        currentTaskId: task.id,
+      })
+      .where(eq(agents.id, agentId))
+
+    // Return task with project info
+    return {
+      content: [
+        {
+          type: 'text',
+          text: JSON.stringify({
+            task: {
+              id: task.id,
+              title: task.title,
+              description: task.description,
+              priority: task.priority,
+              state: 'in_progress',
+              project: {
+                id: project[0].id,
+                name: project[0].name,
+                giteaRepoUrl: project[0].giteaRepoUrl,
+                giteaOwner: project[0].giteaOwner,
+                giteaRepoName: project[0].giteaRepoName,
+                defaultBranch: project[0].defaultBranch,
+                dockerImage: project[0].dockerImage,
+                k8sNamespace: project[0].k8sNamespace,
+              },
+            },
+          }),
+        },
+      ],
+    }
+  } catch (error: any) {
+    throw new Error(`Failed to get next task: ${error.message}`)
+  }
+}
diff --git a/src/services/mcp/tools/update-task-status.ts b/src/services/mcp/tools/update-task-status.ts
new file mode 100644
index 0000000..bb14364
--- /dev/null
+++ b/src/services/mcp/tools/update-task-status.ts
@@ -0,0 +1,67 @@
+/**
+ * MCP Tool: update_task_status
+ * Updates the status of a task
+ */
+
+import { db } from '../../../db/client'
+import { tasks, agents } from '../../../db/schema'
+import { eq } from 'drizzle-orm'
+
+interface UpdateTaskStatusArgs {
+  taskId: string
+  status: 'in_progress' | 'needs_input' | 'ready_to_test' | 'approved' | 'staging' | 'production'
+  metadata?: Record<string, any>
+}
+
+export async function handleUpdateTaskStatus(args: any) {
+  const { taskId, status, metadata } = args as UpdateTaskStatusArgs
+
+  try {
+    // Verify task exists
+    const task = await db
+      .select()
+      .from(tasks)
+      .where(eq(tasks.id, taskId))
+      .limit(1)
+
+    if (task.length === 0) {
+      throw new Error('Task not found')
+    }
+
+    // Update task status
+    await db
+      .update(tasks)
+      .set({ state: status })
+      .where(eq(tasks.id, taskId))
+
+    // If task is completed or ready_to_test, update agent status to idle
+    if (status === 'ready_to_test' || status === 'approved') {
+      if (task[0].assignedAgentId) {
+        await db
+          .update(agents)
+          .set({
+            status: 'idle',
+            currentTaskId: null,
+            tasksCompleted: db.raw('tasks_completed + 1') as any,
+          })
+          .where(eq(agents.id, task[0].assignedAgentId))
+      }
+    }
+
+    return {
+      content: [
+        {
+          type: 'text',
+          text: JSON.stringify({
+            success: true,
+            taskId,
+            newStatus: status,
+            metadata,
+          }),
+        },
+      ],
+    }
+  } catch (error: any) {
+    throw new Error(`Failed to update task status: ${error.message}`)
+  }
+}