diff --git a/README.md b/README.md
index 18a19fd..9088f7c 100644
--- a/README.md
+++ b/README.md
@@ -2,7 +2,7 @@
 
 Ticket-API is a backend API for a portfolio-oriented ticketing and incident management system. It is designed for junior backend, cloud, and platform engineering roles.
 
-This project provides a clean FastAPI foundation with versioned routes, a health check endpoint, basic error handling, automated testing with `pytest`, SQLAlchemy models, PostgreSQL-ready configuration, Docker-based local development, and a GitHub Actions CI workflow.
+This project provides a clean FastAPI foundation with versioned routes, a health check endpoint, basic error handling, automated testing with `pytest`, SQLAlchemy models, Alembic migrations, PostgreSQL-ready configuration, Docker-based local development, and a GitHub Actions CI workflow.
 
 ## Project Goals
 
@@ -15,6 +15,7 @@ This project is being built to demonstrate practical backend and cloud-readiness
 - Automated testing with `pytest`
 - Continuous Integration with GitHub Actions
 - PostgreSQL persistence readiness with SQLAlchemy
+- Database migrations with Alembic
 - Docker-based local development
 - Preparation for future cloud deployment
 
@@ -95,7 +96,29 @@ Docker Compose passes this database URL to the API container:
 postgresql+psycopg://ticket_user:ticket_password@db:5432/ticket_api
 ```
 
-The application is not creating tables or running migrations yet. Alembic and database migrations are planned for a later phase.
+The application does not create tables automatically. Use Alembic to apply database migrations.
+
+## Database Migrations
+
+Start the PostgreSQL container:
+
+```bash
+docker compose up -d db
+```
+
+Apply migrations:
+
+```bash
+.venv\Scripts\alembic.exe upgrade head
+```
+
+Create a new migration after changing SQLAlchemy models:
+
+```bash
+.venv\Scripts\alembic.exe revision --autogenerate -m "describe change"
+```
+
+Alembic reads `DATABASE_URL` from the application settings. For Docker Compose, use the internal database host `db`. For local commands from Windows, use `localhost`.
 
 ## Available Endpoint
 
@@ -182,12 +205,16 @@ app/
   schemas/
   main.py
 
+alembic/
+  versions/
+
 tests/
   test_health.py
   test_models.py
   test_database_config.py
 
 Dockerfile
+alembic.ini
 docker-compose.yml
 
 .github/
@@ -217,10 +244,12 @@ Completed:
 - SQLAlchemy domain models
 - Database configuration
 - SQLAlchemy engine and session setup
+- Alembic migration setup
+- Initial database migration for users, tickets, and incidents
 - Dockerfile and Docker Compose local development setup
 
 ## Next Phase
 
-The next phase will add database migrations without breaking the current project structure.
+The next phase will add API behavior on top of the database layer without breaking the current project structure.
 
 Future phases will include CRUD endpoints, authentication, role-based access control, CI/CD improvements, and cloud deployment.
diff --git a/alembic.ini b/alembic.ini
new file mode 100644
index 0000000..0420adc
--- /dev/null
+++ b/alembic.ini
@@ -0,0 +1,40 @@
+[alembic]
+script_location = alembic
+prepend_sys_path = .
+sqlalchemy.url = postgresql+psycopg://ticket_user:ticket_password@localhost:5432/ticket_api
+
+[post_write_hooks]
+
+[loggers]
+keys = root,sqlalchemy,alembic
+
+[handlers]
+keys = console
+
+[formatters]
+keys = generic
+
+[logger_root]
+level = WARNING
+handlers = console
+qualname =
+
+[logger_sqlalchemy]
+level = WARNING
+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
diff --git a/alembic/env.py b/alembic/env.py
new file mode 100644
index 0000000..c50d7b6
--- /dev/null
+++ b/alembic/env.py
@@ -0,0 +1,53 @@
+from logging.config import fileConfig
+
+from alembic import context
+from sqlalchemy import engine_from_config, pool
+
+from app.core.config import settings
+from app.db.base import Base
+import app.models  # noqa: F401
+
+
+config = context.config
+config.set_main_option("sqlalchemy.url", settings.database_url)
+
+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()
diff --git a/alembic/script.py.mako b/alembic/script.py.mako
new file mode 100644
index 0000000..b74f24c
--- /dev/null
+++ b/alembic/script.py.mako
@@ -0,0 +1,26 @@
+"""${message}
+
+Revision ID: ${up_revision}
+Revises: ${down_revision | comma,n}
+Create Date: ${create_date}
+
+"""
+from collections.abc import Sequence
+
+from alembic import op
+import sqlalchemy as sa
+${imports if imports else ""}
+
+
+revision: str = ${repr(up_revision)}
+down_revision: str | Sequence[str] | None = ${repr(down_revision)}
+branch_labels: str | Sequence[str] | None = ${repr(branch_labels)}
+depends_on: str | Sequence[str] | None = ${repr(depends_on)}
+
+
+def upgrade() -> None:
+    ${upgrades if upgrades else "pass"}
+
+
+def downgrade() -> None:
+    ${downgrades if downgrades else "pass"}
diff --git a/alembic/versions/20260523_0001_create_initial_tables.py b/alembic/versions/20260523_0001_create_initial_tables.py
new file mode 100644
index 0000000..a7f5810
--- /dev/null
+++ b/alembic/versions/20260523_0001_create_initial_tables.py
@@ -0,0 +1,84 @@
+"""Create initial tables.
+
+Revision ID: 20260523_0001
+Revises:
+Create Date: 2026-05-23
+
+"""
+from collections.abc import Sequence
+
+from alembic import op
+import sqlalchemy as sa
+
+
+revision: str = "20260523_0001"
+down_revision: str | Sequence[str] | None = None
+branch_labels: str | Sequence[str] | None = None
+depends_on: str | Sequence[str] | None = None
+
+
+def upgrade() -> None:
+    op.create_table(
+        "users",
+        sa.Column("id", sa.Integer(), nullable=False),
+        sa.Column("email", sa.String(length=255), nullable=False),
+        sa.Column("full_name", sa.String(length=255), nullable=False),
+        sa.Column("hashed_password", sa.String(length=255), nullable=False),
+        sa.Column("role", sa.String(length=50), nullable=False),
+        sa.Column("is_active", sa.Boolean(), nullable=False),
+        sa.Column(
+            "created_at",
+            sa.DateTime(timezone=True),
+            server_default=sa.text("now()"),
+            nullable=False,
+        ),
+        sa.PrimaryKeyConstraint("id"),
+    )
+    op.create_index(op.f("ix_users_email"), "users", ["email"], unique=True)
+
+    op.create_table(
+        "incidents",
+        sa.Column("id", sa.Integer(), nullable=False),
+        sa.Column("title", sa.String(length=200), nullable=False),
+        sa.Column("description", sa.Text(), nullable=True),
+        sa.Column("severity", sa.String(length=50), nullable=False),
+        sa.Column("status", sa.String(length=50), nullable=False),
+        sa.Column("reported_by_id", sa.Integer(), nullable=False),
+        sa.Column(
+            "created_at",
+            sa.DateTime(timezone=True),
+            server_default=sa.text("now()"),
+            nullable=False,
+        ),
+        sa.Column("updated_at", sa.DateTime(timezone=True), nullable=True),
+        sa.ForeignKeyConstraint(["reported_by_id"], ["users.id"]),
+        sa.PrimaryKeyConstraint("id"),
+    )
+
+    op.create_table(
+        "tickets",
+        sa.Column("id", sa.Integer(), nullable=False),
+        sa.Column("title", sa.String(length=200), nullable=False),
+        sa.Column("description", sa.Text(), nullable=True),
+        sa.Column("status", sa.String(length=50), nullable=False),
+        sa.Column("priority", sa.String(length=50), nullable=False),
+        sa.Column("requester_id", sa.Integer(), nullable=False),
+        sa.Column("assignee_id", sa.Integer(), nullable=True),
+        sa.Column(
+            "created_at",
+            sa.DateTime(timezone=True),
+            server_default=sa.text("now()"),
+            nullable=False,
+        ),
+        sa.Column("updated_at", sa.DateTime(timezone=True), nullable=True),
+        sa.ForeignKeyConstraint(["assignee_id"], ["users.id"]),
+        sa.ForeignKeyConstraint(["requester_id"], ["users.id"]),
+        sa.PrimaryKeyConstraint("id"),
+    )
+
+
+def downgrade() -> None:
+    op.drop_table("tickets")
+    op.drop_table("incidents")
+    op.drop_index(op.f("ix_users_email"), table_name="users")
+    op.drop_table("users")
diff --git a/app/models/incident.py b/app/models/incident.py
index e8bd14c..68179dd 100644
--- a/app/models/incident.py
+++ b/app/models/incident.py
@@ -15,7 +15,7 @@
 class Incident(Base):
     __tablename__ = "incidents"
 
-    id: Mapped[int] = mapped_column(primary_key=True, index=True)
+    id: Mapped[int] = mapped_column(primary_key=True)
     title: Mapped[str] = mapped_column(String(200), nullable=False)
     description: Mapped[str | None] = mapped_column(Text, nullable=True)
 
@@ -38,4 +38,4 @@ class Incident(Base):
 
     reporter: Mapped["User"] = relationship(
         back_populates="reported_incidents",
-    )
\ No newline at end of file
+    )
diff --git a/app/models/ticket.py b/app/models/ticket.py
index 0a05bfe..dfc280c 100644
--- a/app/models/ticket.py
+++ b/app/models/ticket.py
@@ -15,7 +15,7 @@
 class Ticket(Base):
     __tablename__ = "tickets"
 
-    id: Mapped[int] = mapped_column(primary_key=True, index=True)
+    id: Mapped[int] = mapped_column(primary_key=True)
     title: Mapped[str] = mapped_column(String(200), nullable=False)
     description: Mapped[str | None] = mapped_column(Text, nullable=True)
 
@@ -45,4 +45,4 @@ class Ticket(Base):
     assignee: Mapped["User | None"] = relationship(
         back_populates="assigned_tickets",
         foreign_keys=[assignee_id],
-    )
\ No newline at end of file
+    )
diff --git a/app/models/user.py b/app/models/user.py
index 8f80c8e..6b4f1db 100644
--- a/app/models/user.py
+++ b/app/models/user.py
@@ -16,7 +16,7 @@
 class User(Base):
     __tablename__ = "users"
 
-    id: Mapped[int] = mapped_column(primary_key=True, index=True)
+    id: Mapped[int] = mapped_column(primary_key=True)
     email: Mapped[str] = mapped_column(String(255), unique=True, index=True, nullable=False)
     full_name: Mapped[str] = mapped_column(String(255), nullable=False)
     hashed_password: Mapped[str] = mapped_column(String(255), nullable=False)
@@ -42,4 +42,4 @@ class User(Base):
 
     reported_incidents: Mapped[list["Incident"]] = relationship(
         back_populates="reporter",
-    )
\ No newline at end of file
+    )
diff --git a/pyproject.toml b/pyproject.toml
index 5cbd0e3..6fa40f3 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -11,6 +11,7 @@ dependencies = [
     "uvicorn[standard]>=0.30.0,<1.0.0",
     "sqlalchemy>=2.0.0,<3.0.0",
     "psycopg[binary]>=3.2.0,<4.0.0",
+    "alembic>=1.13.0,<2.0.0",
 ]
 
 [build-system]