diff --git a/pages/api/setup-database.js b/pages/api/setup-database.js
new file mode 100644
index 0000000..c5af2bb
--- /dev/null
+++ b/pages/api/setup-database.js
@@ -0,0 +1,150 @@
+import { sql } from '@vercel/postgres';
+
+export default async function handler(req, res) {
+  // Set CORS headers
+  res.setHeader('Access-Control-Allow-Origin', '*');
+  res.setHeader('Access-Control-Allow-Methods', 'GET, POST, PUT, DELETE, OPTIONS');
+  res.setHeader('Access-Control-Allow-Headers', 'Content-Type, Authorization');
+
+  // Handle preflight requests
+  if (req.method === 'OPTIONS') {
+    res.status(200).end();
+    return;
+  }
+
+  if (req.method !== 'POST') {
+    return res.status(405).json({ error: 'Method not allowed' });
+  }
+
+  try {
+    // Create users table
+    await sql`
+      CREATE TABLE IF NOT EXISTS users (
+        id SERIAL PRIMARY KEY,
+        email VARCHAR(255) UNIQUE NOT NULL,
+        password VARCHAR(255) NOT NULL,
+        role VARCHAR(50) DEFAULT 'user',
+        created_at TIMESTAMP DEFAULT CURRENT_TIMESTAMP,
+        updated_at TIMESTAMP DEFAULT CURRENT_TIMESTAMP
+      )
+    `;
+
+    // Create cards table
+    await sql`
+      CREATE TABLE IF NOT EXISTS cards (
+        id SERIAL PRIMARY KEY,
+        name VARCHAR(255) NOT NULL,
+        set_name VARCHAR(255),
+        set_code VARCHAR(50),
+        card_number VARCHAR(50),
+        rarity VARCHAR(50),
+        game VARCHAR(50) NOT NULL,
+        mana_cost VARCHAR(50),
+        cmc INTEGER,
+        card_type VARCHAR(255),
+        colors JSONB,
+        oracle_text TEXT,
+        power VARCHAR(10),
+        toughness VARCHAR(10),
+        image_url TEXT,
+        stock_image_url TEXT,
+        current_price DECIMAL(10,2),
+        market_price DECIMAL(10,2),
+        scryfall_id VARCHAR(255) UNIQUE,
+        verified BOOLEAN DEFAULT false,
+        created_at TIMESTAMP DEFAULT CURRENT_TIMESTAMP,
+        updated_at TIMESTAMP DEFAULT CURRENT_TIMESTAMP
+      )
+    `;
+
+    // Create user_cards table (collections)
+    await sql`
+      CREATE TABLE IF NOT EXISTS user_cards (
+        id SERIAL PRIMARY KEY,
+        user_id INTEGER REFERENCES users(id) ON DELETE CASCADE,
+        card_id INTEGER REFERENCES cards(id) ON DELETE CASCADE,
+        quantity INTEGER DEFAULT 1,
+        condition VARCHAR(50) DEFAULT 'NM',
+        is_foil BOOLEAN DEFAULT false,
+        notes TEXT,
+        created_at TIMESTAMP DEFAULT CURRENT_TIMESTAMP,
+        updated_at TIMESTAMP DEFAULT CURRENT_TIMESTAMP,
+        UNIQUE(user_id, card_id, is_foil)
+      )
+    `;
+
+    // Create collections table
+    await sql`
+      CREATE TABLE IF NOT EXISTS collections (
+        id SERIAL PRIMARY KEY,
+        user_id INTEGER REFERENCES users(id) ON DELETE CASCADE,
+        name VARCHAR(255) NOT NULL,
+        description TEXT,
+        is_public BOOLEAN DEFAULT false,
+        created_at TIMESTAMP DEFAULT CURRENT_TIMESTAMP,
+        updated_at TIMESTAMP DEFAULT CURRENT_TIMESTAMP
+      )
+    `;
+
+    // Create collection_cards table
+    await sql`
+      CREATE TABLE IF NOT EXISTS collection_cards (
+        id SERIAL PRIMARY KEY,
+        collection_id INTEGER REFERENCES collections(id) ON DELETE CASCADE,
+        card_id INTEGER REFERENCES cards(id) ON DELETE CASCADE,
+        quantity INTEGER DEFAULT 1,
+        created_at TIMESTAMP DEFAULT CURRENT_TIMESTAMP,
+        UNIQUE(collection_id, card_id)
+      )
+    `;
+
+    // Create decks table
+    await sql`
+      CREATE TABLE IF NOT EXISTS decks (
+        id SERIAL PRIMARY KEY,
+        user_id INTEGER REFERENCES users(id) ON DELETE CASCADE,
+        name VARCHAR(255) NOT NULL,
+        description TEXT,
+        game VARCHAR(50),
+        is_public BOOLEAN DEFAULT false,
+        created_at TIMESTAMP DEFAULT CURRENT_TIMESTAMP,
+        updated_at TIMESTAMP DEFAULT CURRENT_TIMESTAMP
+      )
+    `;
+
+    // Create deck_cards table
+    await sql`
+      CREATE TABLE IF NOT EXISTS deck_cards (
+        id SERIAL PRIMARY KEY,
+        deck_id INTEGER REFERENCES decks(id) ON DELETE CASCADE,
+        card_id INTEGER REFERENCES cards(id) ON DELETE CASCADE,
+        quantity INTEGER DEFAULT 1,
+        created_at TIMESTAMP DEFAULT CURRENT_TIMESTAMP,
+        UNIQUE(deck_id, card_id)
+      )
+    `;
+
+    // Create a default admin user
+    const bcrypt = require('bcryptjs');
+    const hashedPassword = await bcrypt.hash('admin123', 12);
+    
+    await sql`
+      INSERT INTO users (email, password, role) 
+      VALUES ('admin@tcgvault.com', ${hashedPassword}, 'admin')
+      ON CONFLICT (email) DO NOTHING
+    `;
+
+    res.status(200).json({
+      success: true,
+      message: 'Database setup completed successfully!',
+      tables: ['users', 'cards', 'user_cards', 'collections', 'collection_cards', 'decks', 'deck_cards']
+    });
+
+  } catch (error) {
+    console.error('Database setup error:', error);
+    res.status(500).json({ 
+      error: 'Database setup failed', 
+      details: error.message 
+    });
+  }
+} 
\ No newline at end of file