diff --git a/backend/controllers/shop/sub-controllers/inventoryController.js b/backend/controllers/shop/sub-controllers/inventoryController.js
new file mode 100644
index 00000000..21b3148d
--- /dev/null
+++ b/backend/controllers/shop/sub-controllers/inventoryController.js
@@ -0,0 +1,343 @@
+const Inventory = require("../../../model/shop/sub-model/InventoryModel");
+const Product = require("../../../model/shop/product");
+const Supplier = require("../../../model/shop/sub-model/SuppierModel");
+const mongoose = require("mongoose");
+
+
+exports.createInventoryItem = async (req, res) => {
+  try {
+    const {
+      productId,
+      currentStockLevel,
+      reorderLevel,
+      warehouseLocation,
+      supplierId,
+      performedBy,
+    } = req.body;
+
+    // Ensure product exists
+    const product = await Product.findById(productId);
+    if (!product) {
+      return res.status(400).json({ message: "Product not found" });
+    }
+
+    // Optional: Check if supplier exists (if provided)
+    if (supplierId) {
+      const supplier = await Supplier.findById(supplierId);
+      if (!supplier) {
+        return res.status(400).json({ message: "Supplier not found" });
+      }
+    }
+
+    const newInventoryItem = new Inventory({
+      productId,
+      currentStockLevel,
+      reorderLevel,
+      warehouseLocation,
+      supplierId,
+    });
+
+    // Adding audit log for creation
+    newInventoryItem.auditLog.push({
+      action: "Inventory Item Created",
+      performedBy,
+      quantityChanged: currentStockLevel,
+      notes: `Initial stock for ${product.name}`,
+    });
+
+    await newInventoryItem.save();
+    res
+      .status(201)
+      .json({
+        message: "Inventory item created successfully",
+        newInventoryItem,
+      });
+  } catch (error) {
+    res.status(500).json({ message: "Error creating inventory item", error });
+  }
+};
+
+// Controller for updating stock level
+exports.updateStockLevel = async (req, res) => {
+  try {
+    const { inventoryId, newStockLevel, performedBy, notes } = req.body;
+
+    if (newStockLevel < 0) {
+      return res
+        .status(400)
+        .json({ message: "Stock level cannot be negative" });
+    }
+
+    const inventory = await Inventory.findById(inventoryId);
+    if (!inventory) {
+      return res.status(404).json({ message: "Inventory item not found" });
+    }
+
+    const quantityChanged = newStockLevel - inventory.currentStockLevel;
+    inventory.currentStockLevel = newStockLevel;
+    inventory.auditLog.push({
+      action: "Stock Level Updated",
+      performedBy,
+      quantityChanged,
+      notes,
+    });
+
+    await inventory.save();
+    res
+      .status(200)
+      .json({ message: "Stock level updated successfully", inventory });
+  } catch (error) {
+    res.status(500).json({ message: "Error updating stock level", error });
+  }
+};
+
+// Controller to fetch inventory by product
+exports.fetchInventoryByProduct = async (req, res) => {
+  try {
+    const { productId } = req.params;
+    const inventoryItem = await Inventory.findOne({ productId })
+      .populate("productId")
+      .populate("supplierId");
+
+    if (!inventoryItem) {
+      return res
+        .status(404)
+        .json({ message: "Inventory not found for this product" });
+    }
+
+    res.status(200).json({ inventoryItem });
+  } catch (error) {
+    res
+      .status(500)
+      .json({ message: "Error fetching inventory by product", error });
+  }
+};
+
+// Controller to fetch inventory by warehouse
+exports.fetchInventoryByWarehouse = async (req, res) => {
+  try {
+    const { warehouseLocation } = req.params;
+    const inventoryItems = await Inventory.find({ warehouseLocation })
+      .populate("productId")
+      .populate("supplierId");
+
+    if (!inventoryItems || inventoryItems.length === 0) {
+      return res
+        .status(404)
+        .json({ message: "No inventory found for this warehouse" });
+    }
+
+    res.status(200).json({ inventoryItems });
+  } catch (error) {
+    res
+      .status(500)
+      .json({ message: "Error fetching inventory by warehouse", error });
+  }
+};
+
+// Controller to fetch all inventory
+exports.fetchAllInventory = async (req, res) => {
+  try {
+    const inventoryItems = await Inventory.find()
+      .populate("productId")
+      .populate("supplierId");
+
+    if (!inventoryItems || inventoryItems.length === 0) {
+      return res.status(404).json({ message: "No inventory items found" });
+    }
+
+    res.status(200).json({ inventoryItems });
+  } catch (error) {
+    res.status(500).json({ message: "Error fetching all inventory", error });
+  }
+};
+
+// Controller to delete an inventory item
+exports.deleteInventoryItem = async (req, res) => {
+  try {
+    const { inventoryId } = req.params;
+    const inventory = await Inventory.findById(inventoryId);
+
+    if (!inventory) {
+      return res.status(404).json({ message: "Inventory item not found" });
+    }
+
+    await inventory.remove();
+    res.status(200).json({ message: "Inventory item deleted successfully" });
+  } catch (error) {
+    res.status(500).json({ message: "Error deleting inventory item", error });
+  }
+};
+
+// Controller for bulk updating stock levels
+exports.bulkUpdateStockLevels = async (req, res) => {
+  try {
+    const { updates, performedBy } = req.body;
+
+    const updatedItems = [];
+    for (const update of updates) {
+      const { inventoryId, newStockLevel, notes } = update;
+      const inventory = await Inventory.findById(inventoryId);
+
+      if (!inventory) {
+        return res
+          .status(404)
+          .json({ message: `Inventory item with ID ${inventoryId} not found` });
+      }
+
+      const quantityChanged = newStockLevel - inventory.currentStockLevel;
+      inventory.currentStockLevel = newStockLevel;
+      inventory.auditLog.push({
+        action: "Stock Level Updated (Bulk)",
+        performedBy,
+        quantityChanged,
+        notes,
+      });
+
+      await inventory.save();
+      updatedItems.push(inventory);
+    }
+
+    res
+      .status(200)
+      .json({
+        message: "Bulk stock levels updated successfully",
+        updatedItems,
+      });
+  } catch (error) {
+    res
+      .status(500)
+      .json({ message: "Error updating stock levels in bulk", error });
+  }
+};
+
+// Controller for bulk creation of inventory items
+exports.bulkCreateInventoryItems = async (req, res) => {
+  try {
+    const { items, performedBy } = req.body;
+    const createdItems = [];
+
+    for (const item of items) {
+      const {
+        productId,
+        currentStockLevel,
+        reorderLevel,
+        warehouseLocation,
+        supplierId,
+      } = item;
+
+      // Ensure product exists
+      const product = await Product.findById(productId);
+      if (!product) {
+        return res
+          .status(400)
+          .json({ message: `Product with ID ${productId} not found` });
+      }
+
+      // Optional: Check if supplier exists (if provided)
+      if (supplierId) {
+        const supplier = await Supplier.findById(supplierId);
+        if (!supplier) {
+          return res
+            .status(400)
+            .json({ message: `Supplier with ID ${supplierId} not found` });
+        }
+      }
+
+      const newInventoryItem = new Inventory({
+        productId,
+        currentStockLevel,
+        reorderLevel,
+        warehouseLocation,
+        supplierId,
+      });
+
+      newInventoryItem.auditLog.push({
+        action: "Inventory Item Created (Bulk)",
+        performedBy,
+        quantityChanged: currentStockLevel,
+        notes: `Initial stock for ${product.name}`,
+      });
+
+      await newInventoryItem.save();
+      createdItems.push(newInventoryItem);
+    }
+
+    res
+      .status(201)
+      .json({
+        message: "Bulk inventory items created successfully",
+        createdItems,
+      });
+  } catch (error) {
+    res
+      .status(500)
+      .json({ message: "Error creating inventory items in bulk", error });
+  }
+};
+
+// Controller for logging actions in inventory audit trail
+exports.logInventoryAction = async (req, res) => {
+  try {
+    const { inventoryId, action, performedBy, quantityChanged, notes } =
+      req.body;
+
+    const inventory = await Inventory.findById(inventoryId);
+    if (!inventory) {
+      return res.status(404).json({ message: "Inventory item not found" });
+    }
+
+    inventory.auditLog.push({
+      action,
+      performedBy,
+      quantityChanged,
+      notes,
+    });
+
+    await inventory.save();
+    res.status(200).json({ message: "Action logged successfully" });
+  } catch (error) {
+    res.status(500).json({ message: "Error logging action", error });
+  }
+};
+
+// Controller for handling expired inventory (e.g., perishable items)
+exports.handleExpiredInventory = async (req, res) => {
+  try {
+    const { productId } = req.params;
+    const expiredInventory = await Inventory.find({
+      productId,
+      currentStockLevel: { $gt: 0 },
+      lastRestockedDate: { $lt: new Date() },
+    });
+
+    if (expiredInventory.length === 0) {
+      return res
+        .status(404)
+        .json({ message: "No expired inventory found for this product" });
+    }
+
+    for (const inventory of expiredInventory) {
+      inventory.currentStockLevel = 0; // Mark stock as zero
+      inventory.auditLog.push({
+        action: "Expired Inventory Removed",
+        performedBy: "System",
+        quantityChanged: -inventory.currentStockLevel,
+        notes: "Inventory marked as expired",
+      });
+
+      await inventory.save();
+    }
+
+    res
+      .status(200)
+      .json({
+        message: "Expired inventory handled successfully",
+        expiredInventory,
+      });
+  } catch (error) {
+    res
+      .status(500)
+      .json({ message: "Error handling expired inventory", error });
+  }
+};
diff --git a/backend/middleware/sub-ware/inventoryMiddleware.js b/backend/middleware/sub-ware/inventoryMiddleware.js
new file mode 100644
index 00000000..16638dd9
--- /dev/null
+++ b/backend/middleware/sub-ware/inventoryMiddleware.js
@@ -0,0 +1,38 @@
+const Inventory = require("../../model/shop/sub-model/InventoryModel");
+const Product = require("../../model/shop/product");
+
+// Middleware to validate if product exists before creating inventory
+exports.validateProductExistence = async (req, res, next) => {
+  const { productId } = req.body;
+
+  const product = await Product.findById(productId);
+  if (!product) {
+    return res.status(400).json({ message: "Product not found" });
+  }
+
+  next();
+};
+
+// Middleware to ensure valid stock level when updating
+exports.validateStockLevel = (req, res, next) => {
+  const { newStockLevel } = req.body;
+
+  if (newStockLevel < 0) {
+    return res.status(400).json({ message: "Stock level cannot be negative" });
+  }
+
+  next();
+};
+
+// Middleware to ensure reorder level is logical (not negative)
+exports.validateReorderLevel = (req, res, next) => {
+  const { reorderLevel } = req.body;
+
+  if (reorderLevel < 0) {
+    return res
+      .status(400)
+      .json({ message: "Reorder level cannot be negative" });
+  }
+
+  next();
+};
diff --git a/backend/model/shop/sub-model/InventoryModel.js b/backend/model/shop/sub-model/InventoryModel.js
new file mode 100644
index 00000000..734e6c13
--- /dev/null
+++ b/backend/model/shop/sub-model/InventoryModel.js
@@ -0,0 +1,57 @@
+const mongoose = require('mongoose');
+
+const inventorySchema = new mongoose.Schema({
+  productId: {
+    type: mongoose.Schema.Types.ObjectId,
+    ref: 'Product', // Reference to the Product collection
+    required: true
+  },
+  currentStockLevel: {
+    type: Number,
+    required: true,
+    min: 0 // Stock can't be negative
+  },
+  reorderLevel: {
+    type: Number,
+    required: true,
+    min: 0 // Threshold can't be negative
+  },
+  lastRestockedDate: {
+    type: Date,
+    default: Date.now
+  },
+  supplierId: {
+    type: mongoose.Schema.Types.ObjectId,
+    ref: 'Supplier', // Optional link to Supplier schema
+  },
+  warehouseLocation: {
+    type: String,
+    required: true // Warehouse location field
+  },
+  reorderNotificationSent: {
+    type: Boolean,
+    default: false // Indicates if a reorder alert has been triggered
+  },
+  auditLog: [{
+    action: String, // Describes the action (e.g., "Stock Update", "Reorder Triggered")
+    actionDate: {
+      type: Date,
+      default: Date.now
+    },
+    performedBy: String, // User who performed the action
+    quantityChanged: Number, // Amount of stock changed
+    notes: String // Additional details about the action
+  }],
+  lastCheckedDate: {
+    type: Date,
+    default: Date.now // Timestamp for the last reorder level check
+  }
+});
+
+// Virtual to get the last audit entry
+inventorySchema.virtual('latestAuditEntry').get(function () {
+  return this.auditLog.length > 0 ? this.auditLog[this.auditLog.length - 1] : null;
+});
+
+const Inventory = mongoose.model('Inventory', inventorySchema);
+module.exports = Inventory;