diff --git a/backend/src/app.module.ts b/backend/src/app.module.ts
index 27fcdb8..cab74ce 100644
--- a/backend/src/app.module.ts
+++ b/backend/src/app.module.ts
@@ -37,7 +37,7 @@ import { SearchModule } from './search/search.module';
     UsersModule,
     SearchModule,
   ],
-  controllers: [AppController],
-  providers: [AppService],
+  controllers: [AppController, NotificationsController],
+  providers: [AppService, NotificationsService],
 })
 export class AppModule {}
diff --git a/backend/src/notifications/dto/create-notification.dto.ts b/backend/src/notifications/dto/create-notification.dto.ts
new file mode 100644
index 0000000..1e6fcc3
--- /dev/null
+++ b/backend/src/notifications/dto/create-notification.dto.ts
@@ -0,0 +1,19 @@
+import { IsString, IsNotEmpty, IsOptional, IsObject } from 'class-validator';
+
+export class CreateNotificationDto {
+  @IsString()
+  @IsNotEmpty()
+  userId: string;
+
+  @IsString()
+  @IsNotEmpty()
+  message: string;
+
+  @IsString()
+  @IsOptional()
+  type?: string;
+
+  @IsObject()
+  @IsOptional()
+  metadata?: Record<string, any>;
+}
diff --git a/backend/src/notifications/dto/query-notification.dto.ts b/backend/src/notifications/dto/query-notification.dto.ts
new file mode 100644
index 0000000..fdcce4b
--- /dev/null
+++ b/backend/src/notifications/dto/query-notification.dto.ts
@@ -0,0 +1,17 @@
+import { IsOptional, IsString, IsBoolean } from 'class-validator';
+import { Transform } from 'class-transformer';
+
+export class QueryNotificationDto {
+  @IsOptional()
+  @IsString()
+  userId?: string;
+
+  @IsOptional()
+  @IsBoolean()
+  @Transform(({ value }) => value === 'true' || value === true)
+  isRead?: boolean;
+
+  @IsOptional()
+  @IsString()
+  type?: string;
+}
diff --git a/backend/src/notifications/dto/update-notification.dto.ts b/backend/src/notifications/dto/update-notification.dto.ts
new file mode 100644
index 0000000..a79056c
--- /dev/null
+++ b/backend/src/notifications/dto/update-notification.dto.ts
@@ -0,0 +1,7 @@
+import { IsBoolean, IsOptional } from 'class-validator';
+
+export class UpdateNotificationDto {
+  @IsBoolean()
+  @IsOptional()
+  isRead?: boolean;
+}
diff --git a/backend/src/notifications/entities/notification.entity.ts b/backend/src/notifications/entities/notification.entity.ts
new file mode 100644
index 0000000..f119547
--- /dev/null
+++ b/backend/src/notifications/entities/notification.entity.ts
@@ -0,0 +1,34 @@
+import {
+  Entity,
+  Column,
+  PrimaryGeneratedColumn,
+  CreateDateColumn,
+  UpdateDateColumn,
+} from 'typeorm';
+
+@Entity('notifications')
+export class Notification {
+  @PrimaryGeneratedColumn('uuid')
+  id: string;
+
+  @Column()
+  userId: string;
+
+  @Column('text')
+  message: string;
+
+  @Column({ default: false })
+  isRead: boolean;
+
+  @Column({ nullable: true })
+  type: string; // 'asset_transfer', 'low_stock', 'maintenance_due'
+
+  @Column('json', { nullable: true })
+  metadata: Record<string, any>; // Additional data for the notification
+
+  @CreateDateColumn()
+  createdAt: Date;
+
+  @UpdateDateColumn()
+  updatedAt: Date;
+}
diff --git a/backend/src/notifications/notifications.controller.ts b/backend/src/notifications/notifications.controller.ts
new file mode 100644
index 0000000..594251a
--- /dev/null
+++ b/backend/src/notifications/notifications.controller.ts
@@ -0,0 +1,115 @@
+import {
+  Controller,
+  Get,
+  Post,
+  Patch,
+  Delete,
+  HttpCode,
+  HttpStatus,
+} from '@nestjs/common';
+import type { NotificationsService } from './notifications.service';
+import type { CreateNotificationDto } from './dto/create-notification.dto';
+import type { UpdateNotificationDto } from './dto/update-notification.dto';
+import type { QueryNotificationDto } from './dto/query-notification.dto';
+
+@Controller('notifications')
+export class NotificationsController {
+  constructor(private readonly notificationsService: NotificationsService) {}
+
+  @Post()
+  @HttpCode(HttpStatus.CREATED)
+  create(createNotificationDto: CreateNotificationDto) {
+    return this.notificationsService.create(createNotificationDto);
+  }
+
+  @Get()
+  findAll(query: QueryNotificationDto) {
+    return this.notificationsService.findAll(query);
+  }
+
+  @Get('user/:userId')
+  findByUserId(userId: string) {
+    return this.notificationsService.findByUserId(userId);
+  }
+
+  @Get('user/:userId/unread-count')
+  getUnreadCount(userId: string) {
+    return this.notificationsService.getUnreadCount(userId);
+  }
+
+  @Get(':id')
+  findOne(id: string) {
+    return this.notificationsService.findOne(id);
+  }
+
+  @Patch(':id')
+  update(id: string, updateNotificationDto: UpdateNotificationDto) {
+    return this.notificationsService.update(id, updateNotificationDto);
+  }
+
+  @Patch(':id/mark-read')
+  @HttpCode(HttpStatus.OK)
+  markAsRead(id: string) {
+    return this.notificationsService.markAsRead(id);
+  }
+
+  @Patch('user/:userId/mark-all-read')
+  @HttpCode(HttpStatus.OK)
+  async markAllAsRead(userId: string) {
+    await this.notificationsService.markAllAsRead(userId);
+    return { message: 'All notifications marked as read' };
+  }
+
+  @Delete(':id')
+  @HttpCode(HttpStatus.NO_CONTENT)
+  remove(id: string) {
+    return this.notificationsService.remove(id);
+  }
+
+  // Specific notification creation endpoints
+  @Post('asset-transfer')
+  @HttpCode(HttpStatus.CREATED)
+  createAssetTransfer(body: {
+    userId: string;
+    assetName: string;
+    from: string;
+    to: string;
+  }) {
+    return this.notificationsService.createAssetTransferNotification(
+      body.userId,
+      body.assetName,
+      body.from,
+      body.to,
+    );
+  }
+
+  @Post('low-stock')
+  @HttpCode(HttpStatus.CREATED)
+  createLowStock(body: {
+    userId: string;
+    itemName: string;
+    currentStock: number;
+    threshold: number;
+  }) {
+    return this.notificationsService.createLowStockNotification(
+      body.userId,
+      body.itemName,
+      body.currentStock,
+      body.threshold,
+    );
+  }
+
+  @Post('maintenance-due')
+  @HttpCode(HttpStatus.CREATED)
+  createMaintenanceDue(body: {
+    userId: string;
+    assetName: string;
+    dueDate: string;
+  }) {
+    return this.notificationsService.createMaintenanceDueNotification(
+      body.userId,
+      body.assetName,
+      new Date(body.dueDate),
+    );
+  }
+}
diff --git a/backend/src/notifications/notifications.module.ts b/backend/src/notifications/notifications.module.ts
new file mode 100644
index 0000000..7a91cf3
--- /dev/null
+++ b/backend/src/notifications/notifications.module.ts
@@ -0,0 +1,13 @@
+import { Module } from '@nestjs/common';
+import { TypeOrmModule } from '@nestjs/typeorm';
+import { NotificationsService } from './notifications.service';
+import { NotificationsController } from './notifications.controller';
+import { Notification } from './entities/notification.entity';
+
+@Module({
+  imports: [TypeOrmModule.forFeature([Notification])],
+  controllers: [NotificationsController],
+  providers: [NotificationsService],
+  exports: [NotificationsService], // Export for use in other modules
+})
+export class NotificationsModule {}
diff --git a/backend/src/notifications/notifications.service.ts b/backend/src/notifications/notifications.service.ts
new file mode 100644
index 0000000..20ea97f
--- /dev/null
+++ b/backend/src/notifications/notifications.service.ts
@@ -0,0 +1,139 @@
+import { Injectable, NotFoundException } from '@nestjs/common';
+import type { Repository } from 'typeorm';
+import type { Notification } from './entities/notification.entity';
+import type { CreateNotificationDto } from './dto/create-notification.dto';
+import type { UpdateNotificationDto } from './dto/update-notification.dto';
+import type { QueryNotificationDto } from './dto/query-notification.dto';
+
+@Injectable()
+export class NotificationsService {
+  private notificationsRepository: Repository<Notification>;
+
+  constructor(notificationsRepository: Repository<Notification>) {
+    this.notificationsRepository = notificationsRepository;
+  }
+
+  async create(
+    createNotificationDto: CreateNotificationDto,
+  ): Promise<Notification> {
+    const notification = this.notificationsRepository.create(
+      createNotificationDto,
+    );
+    return await this.notificationsRepository.save(notification);
+  }
+
+  async findAll(query: QueryNotificationDto): Promise<Notification[]> {
+    const where: any = {};
+
+    if (query.userId) {
+      where.userId = query.userId;
+    }
+
+    if (query.isRead !== undefined) {
+      where.isRead = query.isRead;
+    }
+
+    if (query.type) {
+      where.type = query.type;
+    }
+
+    return await this.notificationsRepository.find({
+      where,
+      order: { createdAt: 'DESC' },
+    });
+  }
+
+  async findOne(id: string): Promise<Notification> {
+    const notification = await this.notificationsRepository.findOne({
+      where: { id },
+    });
+
+    if (!notification) {
+      throw new NotFoundException(`Notification with ID ${id} not found`);
+    }
+
+    return notification;
+  }
+
+  async findByUserId(userId: string): Promise<Notification[]> {
+    return await this.notificationsRepository.find({
+      where: { userId },
+      order: { createdAt: 'DESC' },
+    });
+  }
+
+  async getUnreadCount(userId: string): Promise<number> {
+    return await this.notificationsRepository.count({
+      where: { userId, isRead: false },
+    });
+  }
+
+  async markAsRead(id: string): Promise<Notification> {
+    const notification = await this.findOne(id);
+    notification.isRead = true;
+    return await this.notificationsRepository.save(notification);
+  }
+
+  async markAllAsRead(userId: string): Promise<void> {
+    await this.notificationsRepository.update(
+      { userId, isRead: false },
+      { isRead: true },
+    );
+  }
+
+  async update(
+    id: string,
+    updateNotificationDto: UpdateNotificationDto,
+  ): Promise<Notification> {
+    const notification = await this.findOne(id);
+    Object.assign(notification, updateNotificationDto);
+    return await this.notificationsRepository.save(notification);
+  }
+
+  async remove(id: string): Promise<void> {
+    const notification = await this.findOne(id);
+    await this.notificationsRepository.remove(notification);
+  }
+
+  // Helper methods for creating specific notification types
+  async createAssetTransferNotification(
+    userId: string,
+    assetName: string,
+    from: string,
+    to: string,
+  ): Promise<Notification> {
+    return this.create({
+      userId,
+      message: `Asset "${assetName}" has been transferred from ${from} to ${to}`,
+      type: 'asset_transfer',
+      metadata: { assetName, from, to },
+    });
+  }
+
+  async createLowStockNotification(
+    userId: string,
+    itemName: string,
+    currentStock: number,
+    threshold: number,
+  ): Promise<Notification> {
+    return this.create({
+      userId,
+      message: `Low stock alert: "${itemName}" has only ${currentStock} units remaining (threshold: ${threshold})`,
+      type: 'low_stock',
+      metadata: { itemName, currentStock, threshold },
+    });
+  }
+
+  async createMaintenanceDueNotification(
+    userId: string,
+    assetName: string,
+    dueDate: Date,
+  ): Promise<Notification> {
+    return this.create({
+      userId,
+      message: `Maintenance due for "${assetName}" on ${dueDate.toLocaleDateString()}`,
+      type: 'maintenance_due',
+      metadata: { assetName, dueDate },
+    });
+  }
+}