diff --git a/backend/src/asset-disposals/asset-disposals.controller.ts b/backend/src/asset-disposals/asset-disposals.controller.ts
new file mode 100644
index 0000000..22eea13
--- /dev/null
+++ b/backend/src/asset-disposals/asset-disposals.controller.ts
@@ -0,0 +1,24 @@
+import { Controller, Post, Body, Get, Param, UsePipes, ValidationPipe } from '@nestjs/common';
+import { AssetDisposalsService } from './asset-disposals.service';
+import { CreateAssetDisposalDto } from './dto/create-asset-disposal.dto';
+
+@Controller('asset-disposals')
+export class AssetDisposalsController {
+  constructor(private readonly disposalsService: AssetDisposalsService) {}
+
+  @Post()
+  @UsePipes(new ValidationPipe({ whitelist: true }))
+  markDisposed(@Body() dto: CreateAssetDisposalDto) {
+    return this.disposalsService.markDisposed(dto);
+  }
+
+  @Get()
+  findAll() {
+    return this.disposalsService.findAll();
+  }
+
+  @Get('asset/:assetId')
+  findByAsset(@Param('assetId') assetId: string) {
+    return this.disposalsService.findByAsset(assetId);
+  }
+}
\ No newline at end of file
diff --git a/backend/src/asset-disposals/asset-disposals.module.ts b/backend/src/asset-disposals/asset-disposals.module.ts
new file mode 100644
index 0000000..3caf92c
--- /dev/null
+++ b/backend/src/asset-disposals/asset-disposals.module.ts
@@ -0,0 +1,14 @@
+import { Module } from '@nestjs/common';
+import { TypeOrmModule } from '@nestjs/typeorm';
+import { AssetDisposalsService } from './asset-disposals.service';
+import { AssetDisposalsController } from './asset-disposals.controller';
+import { AssetDisposal } from './entities/asset-disposal.entity';
+import { InventoryItem } from '../inventory/entities/inventory-item.entity';
+
+@Module({
+  imports: [TypeOrmModule.forFeature([AssetDisposal, InventoryItem])],
+  controllers: [AssetDisposalsController],
+  providers: [AssetDisposalsService],
+  exports: [AssetDisposalsService],
+})
+export class AssetDisposalsModule {}
\ No newline at end of file
diff --git a/backend/src/asset-disposals/asset-disposals.service.ts b/backend/src/asset-disposals/asset-disposals.service.ts
new file mode 100644
index 0000000..15b273e
--- /dev/null
+++ b/backend/src/asset-disposals/asset-disposals.service.ts
@@ -0,0 +1,54 @@
+import { Injectable, NotFoundException, BadRequestException } from '@nestjs/common';
+import { InjectRepository } from '@nestjs/typeorm';
+import { Repository } from 'typeorm';
+import { AssetDisposal } from './entities/asset-disposal.entity';
+import { CreateAssetDisposalDto } from './dto/create-asset-disposal.dto';
+import { InventoryItem, InventoryStatus } from '../inventory/entities/inventory-item.entity';
+
+@Injectable()
+export class AssetDisposalsService {
+  constructor(
+    @InjectRepository(AssetDisposal)
+    private readonly disposalRepository: Repository<AssetDisposal>,
+    @InjectRepository(InventoryItem)
+    private readonly inventoryRepository: Repository<InventoryItem>,
+  ) {}
+
+  async markDisposed(dto: CreateAssetDisposalDto) {
+    const asset = await this.inventoryRepository.findOne({ where: { id: dto.assetId } });
+    if (!asset) {
+      throw new NotFoundException(`Asset with ID ${dto.assetId} not found`);
+    }
+
+    if (asset.status === InventoryStatus.DISPOSED) {
+      throw new BadRequestException('Asset is already disposed');
+    }
+
+    return await this.inventoryRepository.manager.transaction(async (manager) => {
+      const itemRepo = manager.getRepository(InventoryItem);
+      const disposalRepo = manager.getRepository(AssetDisposal);
+
+      asset.status = InventoryStatus.DISPOSED;
+      await itemRepo.save(asset);
+
+      const disposal = disposalRepo.create({
+        assetId: dto.assetId,
+        disposalDate: new Date(dto.disposalDate),
+        method: dto.method,
+        reason: dto.reason,
+        approvedBy: dto.approvedBy,
+      });
+      const saved = await disposalRepo.save(disposal);
+
+      return { message: 'Asset marked as disposed', disposal: saved };
+    });
+  }
+
+  async findAll() {
+    return this.disposalRepository.find({ order: { disposalDate: 'DESC' } });
+  }
+
+  async findByAsset(assetId: string) {
+    return this.disposalRepository.find({ where: { assetId }, order: { disposalDate: 'DESC' } });
+  }
+}
\ No newline at end of file
diff --git a/backend/src/asset-disposals/dto/create-asset-disposal.dto.ts b/backend/src/asset-disposals/dto/create-asset-disposal.dto.ts
new file mode 100644
index 0000000..b343f33
--- /dev/null
+++ b/backend/src/asset-disposals/dto/create-asset-disposal.dto.ts
@@ -0,0 +1,21 @@
+import { IsUUID, IsDateString, IsEnum, IsString, IsNotEmpty, IsOptional } from 'class-validator';
+import { DisposalMethod } from '../entities/asset-disposal.entity';
+
+export class CreateAssetDisposalDto {
+  @IsUUID()
+  assetId: string;
+
+  @IsDateString()
+  disposalDate: string;
+
+  @IsEnum(DisposalMethod)
+  method: DisposalMethod;
+
+  @IsString()
+  @IsOptional()
+  reason?: string;
+
+  @IsString()
+  @IsNotEmpty()
+  approvedBy: string;
+}
\ No newline at end of file
diff --git a/backend/src/asset-disposals/entities/asset-disposal.entity.ts b/backend/src/asset-disposals/entities/asset-disposal.entity.ts
new file mode 100644
index 0000000..f4e7ab5
--- /dev/null
+++ b/backend/src/asset-disposals/entities/asset-disposal.entity.ts
@@ -0,0 +1,37 @@
+import { Entity, PrimaryGeneratedColumn, Column, CreateDateColumn, UpdateDateColumn, Index } from 'typeorm';
+
+export enum DisposalMethod {
+  SALE = 'sale',
+  DONATION = 'donation',
+  SCRAP = 'scrap',
+  OTHER = 'other',
+}
+
+@Entity('asset_disposals')
+@Index(['assetId', 'disposalDate'])
+export class AssetDisposal {
+  @PrimaryGeneratedColumn('uuid')
+  id: string;
+
+  @Column('uuid')
+  @Index()
+  assetId: string;
+
+  @Column({ type: 'timestamp' })
+  disposalDate: Date;
+
+  @Column({ type: 'enum', enum: DisposalMethod })
+  method: DisposalMethod;
+
+  @Column({ type: 'text', nullable: true })
+  reason: string;
+
+  @Column()
+  approvedBy: string;
+
+  @CreateDateColumn()
+  createdAt: Date;
+
+  @UpdateDateColumn()
+  updatedAt: Date;
+}
\ No newline at end of file
diff --git a/backend/src/asset-maintenance/asset-maintenance.controller.ts b/backend/src/asset-maintenance/asset-maintenance.controller.ts
new file mode 100644
index 0000000..38376d8
--- /dev/null
+++ b/backend/src/asset-maintenance/asset-maintenance.controller.ts
@@ -0,0 +1,31 @@
+import { Controller, Post, Body, Get, Param, Patch, UsePipes, ValidationPipe } from '@nestjs/common';
+import { AssetMaintenanceService } from './asset-maintenance.service';
+import { ScheduleMaintenanceDto } from './dto/schedule-maintenance.dto';
+import { CompleteMaintenanceDto } from './dto/complete-maintenance.dto';
+
+@Controller('asset-maintenance')
+export class AssetMaintenanceController {
+  constructor(private readonly maintenanceService: AssetMaintenanceService) {}
+
+  @Post('schedule')
+  @UsePipes(new ValidationPipe({ whitelist: true }))
+  schedule(@Body() dto: ScheduleMaintenanceDto) {
+    return this.maintenanceService.schedule(dto);
+  }
+
+  @Patch(':id/complete')
+  @UsePipes(new ValidationPipe({ whitelist: true }))
+  complete(@Param('id') id: string, @Body() dto: CompleteMaintenanceDto) {
+    return this.maintenanceService.complete(id, dto);
+  }
+
+  @Get()
+  findAll() {
+    return this.maintenanceService.findAll();
+  }
+
+  @Get('asset/:assetId')
+  findByAsset(@Param('assetId') assetId: string) {
+    return this.maintenanceService.findByAsset(assetId);
+  }
+}
\ No newline at end of file
diff --git a/backend/src/asset-maintenance/asset-maintenance.module.ts b/backend/src/asset-maintenance/asset-maintenance.module.ts
new file mode 100644
index 0000000..16e67cb
--- /dev/null
+++ b/backend/src/asset-maintenance/asset-maintenance.module.ts
@@ -0,0 +1,14 @@
+import { Module } from '@nestjs/common';
+import { TypeOrmModule } from '@nestjs/typeorm';
+import { AssetMaintenanceService } from './asset-maintenance.service';
+import { AssetMaintenanceController } from './asset-maintenance.controller';
+import { AssetMaintenance } from './entities/asset-maintenance.entity';
+import { InventoryItem } from '../inventory/entities/inventory-item.entity';
+
+@Module({
+  imports: [TypeOrmModule.forFeature([AssetMaintenance, InventoryItem])],
+  controllers: [AssetMaintenanceController],
+  providers: [AssetMaintenanceService],
+  exports: [AssetMaintenanceService],
+})
+export class AssetMaintenanceModule {}
\ No newline at end of file
diff --git a/backend/src/asset-maintenance/asset-maintenance.service.ts b/backend/src/asset-maintenance/asset-maintenance.service.ts
new file mode 100644
index 0000000..4d0a8d7
--- /dev/null
+++ b/backend/src/asset-maintenance/asset-maintenance.service.ts
@@ -0,0 +1,63 @@
+import { Injectable, NotFoundException, BadRequestException } from '@nestjs/common';
+import { InjectRepository } from '@nestjs/typeorm';
+import { Repository } from 'typeorm';
+import { AssetMaintenance } from './entities/asset-maintenance.entity';
+import { ScheduleMaintenanceDto } from './dto/schedule-maintenance.dto';
+import { CompleteMaintenanceDto } from './dto/complete-maintenance.dto';
+import { InventoryItem, InventoryStatus } from '../inventory/entities/inventory-item.entity';
+
+@Injectable()
+export class AssetMaintenanceService {
+  constructor(
+    @InjectRepository(AssetMaintenance)
+    private readonly maintenanceRepository: Repository<AssetMaintenance>,
+    @InjectRepository(InventoryItem)
+    private readonly inventoryRepository: Repository<InventoryItem>,
+  ) {}
+
+  async schedule(dto: ScheduleMaintenanceDto) {
+    const asset = await this.inventoryRepository.findOne({ where: { id: dto.assetId } });
+    if (!asset) {
+      throw new NotFoundException(`Asset with ID ${dto.assetId} not found`);
+    }
+
+    // Prevent scheduling maintenance for disposed assets
+    if (asset.status === InventoryStatus.DISPOSED) {
+      throw new BadRequestException('Cannot schedule maintenance for disposed asset');
+    }
+
+    const record = this.maintenanceRepository.create({
+      assetId: dto.assetId,
+      scheduledDate: new Date(dto.scheduledDate),
+      completedDate: null,
+      maintenanceType: dto.maintenanceType,
+      notes: dto.notes,
+    });
+
+    const saved = await this.maintenanceRepository.save(record);
+    return { message: 'Maintenance scheduled', maintenance: saved };
+  }
+
+  async complete(id: string, dto: CompleteMaintenanceDto) {
+    const record = await this.maintenanceRepository.findOne({ where: { id } });
+    if (!record) {
+      throw new NotFoundException(`Maintenance record with ID ${id} not found`);
+    }
+
+    record.completedDate = new Date(dto.completedDate);
+    if (dto.notes) {
+      record.notes = dto.notes;
+    }
+
+    const saved = await this.maintenanceRepository.save(record);
+    return { message: 'Maintenance completed', maintenance: saved };
+  }
+
+  async findAll() {
+    return this.maintenanceRepository.find({ order: { scheduledDate: 'DESC' } });
+  }
+
+  async findByAsset(assetId: string) {
+    return this.maintenanceRepository.find({ where: { assetId }, order: { scheduledDate: 'DESC' } });
+  }
+}
\ No newline at end of file
diff --git a/backend/src/asset-maintenance/dto/complete-maintenance.dto.ts b/backend/src/asset-maintenance/dto/complete-maintenance.dto.ts
new file mode 100644
index 0000000..ce9e9db
--- /dev/null
+++ b/backend/src/asset-maintenance/dto/complete-maintenance.dto.ts
@@ -0,0 +1,10 @@
+import { IsDateString, IsString, IsOptional } from 'class-validator';
+
+export class CompleteMaintenanceDto {
+  @IsDateString()
+  completedDate: string;
+
+  @IsString()
+  @IsOptional()
+  notes?: string;
+}
\ No newline at end of file
diff --git a/backend/src/asset-maintenance/dto/schedule-maintenance.dto.ts b/backend/src/asset-maintenance/dto/schedule-maintenance.dto.ts
new file mode 100644
index 0000000..9e7a613
--- /dev/null
+++ b/backend/src/asset-maintenance/dto/schedule-maintenance.dto.ts
@@ -0,0 +1,17 @@
+import { IsUUID, IsDateString, IsEnum, IsString, IsOptional } from 'class-validator';
+import { MaintenanceType } from '../entities/asset-maintenance.entity';
+
+export class ScheduleMaintenanceDto {
+  @IsUUID()
+  assetId: string;
+
+  @IsDateString()
+  scheduledDate: string;
+
+  @IsEnum(MaintenanceType)
+  maintenanceType: MaintenanceType;
+
+  @IsString()
+  @IsOptional()
+  notes?: string;
+}
\ No newline at end of file
diff --git a/backend/src/asset-maintenance/entities/asset-maintenance.entity.ts b/backend/src/asset-maintenance/entities/asset-maintenance.entity.ts
new file mode 100644
index 0000000..6d9f3e5
--- /dev/null
+++ b/backend/src/asset-maintenance/entities/asset-maintenance.entity.ts
@@ -0,0 +1,39 @@
+import { Entity, PrimaryGeneratedColumn, Column, CreateDateColumn, UpdateDateColumn, Index } from 'typeorm';
+
+export enum MaintenanceType {
+  PREVENTIVE = 'preventive',
+  CORRECTIVE = 'corrective',
+  INSPECTION = 'inspection',
+  REPLACEMENT = 'replacement',
+  SERVICE = 'service',
+  OTHER = 'other',
+}
+
+@Entity('asset_maintenance')
+@Index(['assetId', 'scheduledDate'])
+export class AssetMaintenance {
+  @PrimaryGeneratedColumn('uuid')
+  id: string;
+
+  @Column('uuid')
+  @Index()
+  assetId: string;
+
+  @Column({ type: 'timestamp' })
+  scheduledDate: Date;
+
+  @Column({ type: 'timestamp', nullable: true })
+  completedDate: Date | null;
+
+  @Column({ type: 'enum', enum: MaintenanceType })
+  maintenanceType: MaintenanceType;
+
+  @Column({ type: 'text', nullable: true })
+  notes?: string;
+
+  @CreateDateColumn()
+  createdAt: Date;
+
+  @UpdateDateColumn()
+  updatedAt: Date;
+}
\ No newline at end of file
diff --git a/backend/src/inventory/entities/inventory-item.entity.ts b/backend/src/inventory/entities/inventory-item.entity.ts
index 79a4587..3355625 100644
--- a/backend/src/inventory/entities/inventory-item.entity.ts
+++ b/backend/src/inventory/entities/inventory-item.entity.ts
@@ -1,5 +1,10 @@
 import { Entity, PrimaryGeneratedColumn, Column } from 'typeorm';
 
+export enum InventoryStatus {
+  ACTIVE = 'active',
+  DISPOSED = 'disposed',
+}
+
 @Entity()
 export class InventoryItem {
   @PrimaryGeneratedColumn('uuid')
@@ -14,7 +19,10 @@ export class InventoryItem {
   @Column({ type: 'int' })
   quantity: number;
 
-  // --- ADD THIS NEW FIELD ---
-  @Column({ type: 'int', default: 10 }) // Default threshold of 10 units
+  // Default threshold of 10 units
+  @Column({ type: 'int', default: 10 })
   threshold: number;
+
+  @Column({ type: 'enum', enum: InventoryStatus, default: InventoryStatus.ACTIVE })
+  status: InventoryStatus;
 }
\ No newline at end of file
diff --git a/backend/src/inventory/inventory-alerts/inventory-alerts.module.ts b/backend/src/inventory/inventory-alerts/inventory-alerts.module.ts
index fef049f..1c50640 100644
--- a/backend/src/inventory/inventory-alerts/inventory-alerts.module.ts
+++ b/backend/src/inventory/inventory-alerts/inventory-alerts.module.ts
@@ -1,6 +1,6 @@
 import { Module } from '@nestjs/common';
 import { TypeOrmModule } from '@nestjs/typeorm';
-import { InventoryItem } from '../inventory/entities/inventory-item.entity';
+import { InventoryItem } from '../entities/inventory-item.entity';
 import { InventoryAlertsService } from './inventory-alerts.service';
 import { InventoryAlertsController } from './inventory-alerts.controller';
 import { InventoryEventListener } from './listeners/inventory.listener';
diff --git a/backend/src/inventory/inventory-alerts/inventory-alerts.service.ts b/backend/src/inventory/inventory-alerts/inventory-alerts.service.ts
index 8daee2c..6e955d5 100644
--- a/backend/src/inventory/inventory-alerts/inventory-alerts.service.ts
+++ b/backend/src/inventory/inventory-alerts/inventory-alerts.service.ts
@@ -1,7 +1,7 @@
 import { Injectable, Logger } from '@nestjs/common';
 import { InjectRepository } from '@nestjs/typeorm';
 import { Repository } from 'typeorm';
-import { InventoryItem } from '../inventory/entities/inventory-item.entity';
+import { InventoryItem, InventoryStatus } from '../entities/inventory-item.entity';
 
 export interface LowStockAlert {
   itemId: string;
@@ -38,6 +38,15 @@ export class InventoryAlertsService {
       return;
     }
 
+    // Ignore disposed items
+    if (item.status === InventoryStatus.DISPOSED) {
+      if (this.activeAlerts.has(item.id)) {
+        this.activeAlerts.delete(item.id);
+      }
+      this.logger.log(`Skipping threshold check for disposed item ${item.name} (SKU: ${item.sku}).`);
+      return;
+    }
+
     if (item.quantity <= item.threshold) {
       // Stock is low or has reached the threshold, create/update an alert.
       if (!this.activeAlerts.has(item.id)) {
@@ -51,8 +60,6 @@ export class InventoryAlertsService {
         };
         this.activeAlerts.set(item.id, newAlert);
         this.logger.log(`New low-stock alert generated for ${item.name} (SKU: ${item.sku})`);
-        // Here you could also emit an event to trigger notifications (email, etc.)
-        // this.eventEmitter.emit('alert.low_stock', newAlert);
       }
     } else {
       // Stock is sufficient, remove any existing alert.