diff --git a/supabase/apply-migration.md b/supabase/apply-migration.md
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+++ b/supabase/apply-migration.md
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+# Applying the Design Thinking Schema Migration
+
+## Option 1: Supabase Studio (Recommended)
+1. Go to https://supabase.mylder.io
+2. Login with dashboard credentials:
+   - User: `5f7DODtzYzoXKusR`
+   - Password: `VHmrbh9a6QVcXE2b2hMblhPoRsqsd2Gj`
+3. Navigate to SQL Editor
+4. Copy contents of `migrations/20251214_design_thinking_schema.sql`
+5. Execute
+
+## Option 2: Via psql on VPS
+```bash
+# SSH to VPS
+ssh root@149.102.155.84
+
+# Find the PostgreSQL container
+docker ps | grep postgres
+
+# Execute migration
+docker exec -i <postgres_container> psql -U supabase -d postgres < /path/to/migration.sql
+```
+
+## Option 3: Via docker exec with heredoc
+```bash
+docker exec -i supabase-db psql -U supabase postgres <<'SQL'
+-- Paste contents of 20251214_design_thinking_schema.sql here
+SQL
+```
+
+## Verification
+After applying, verify tables exist:
+```sql
+SELECT table_name FROM information_schema.tables
+WHERE table_schema = 'public'
+ORDER BY table_name;
+```
+
+Expected tables:
+- projects
+- project_phases
+- backlog_items
+- ai_recommendations
+- project_health_snapshots
+- project_activities
diff --git a/supabase/migrations/20251214_design_thinking_schema.sql b/supabase/migrations/20251214_design_thinking_schema.sql
new file mode 100644
index 0000000..b4e250b
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+-- Design Thinking Schema for Mylder Platform
+-- Migration: 20251214_design_thinking_schema.sql
+
+-- Enable UUID extension
+CREATE EXTENSION IF NOT EXISTS "uuid-ossp";
+
+-- Design phases enum
+CREATE TYPE design_phase AS ENUM ('empathize', 'define', 'ideate', 'prototype', 'test');
+CREATE TYPE phase_status AS ENUM ('not_started', 'in_progress', 'completed', 'blocked', 'needs_review');
+CREATE TYPE backlog_status AS ENUM ('backlog', 'ready', 'in_progress', 'done', 'blocked');
+CREATE TYPE recommendation_type AS ENUM ('action', 'warning', 'insight', 'optimization');
+CREATE TYPE recommendation_priority AS ENUM ('low', 'medium', 'high');
+
+-- Projects table (extend or create)
+CREATE TABLE IF NOT EXISTS projects (
+  id UUID PRIMARY KEY DEFAULT uuid_generate_v4(),
+  user_id UUID NOT NULL REFERENCES auth.users(id) ON DELETE CASCADE,
+  name TEXT NOT NULL,
+  description TEXT,
+  current_phase design_phase DEFAULT 'empathize',
+  health_score INTEGER DEFAULT 100 CHECK (health_score >= 0 AND health_score <= 100),
+  created_at TIMESTAMPTZ DEFAULT NOW(),
+  updated_at TIMESTAMPTZ DEFAULT NOW()
+);
+
+-- Project phase tracking
+CREATE TABLE project_phases (
+  id UUID PRIMARY KEY DEFAULT uuid_generate_v4(),
+  project_id UUID NOT NULL REFERENCES projects(id) ON DELETE CASCADE,
+  phase design_phase NOT NULL,
+  status phase_status DEFAULT 'not_started',
+  started_at TIMESTAMPTZ,
+  completed_at TIMESTAMPTZ,
+  notes TEXT,
+  iteration INTEGER DEFAULT 1,
+  created_at TIMESTAMPTZ DEFAULT NOW(),
+  updated_at TIMESTAMPTZ DEFAULT NOW(),
+  UNIQUE(project_id, phase, iteration)
+);
+
+-- Backlog items with WSJF prioritization
+CREATE TABLE backlog_items (
+  id UUID PRIMARY KEY DEFAULT uuid_generate_v4(),
+  project_id UUID NOT NULL REFERENCES projects(id) ON DELETE CASCADE,
+  title TEXT NOT NULL,
+  description TEXT,
+  phase design_phase NOT NULL,
+  status backlog_status DEFAULT 'backlog',
+
+  -- WSJF scoring (1-10 scale)
+  user_value INTEGER DEFAULT 5 CHECK (user_value >= 1 AND user_value <= 10),
+  time_criticality INTEGER DEFAULT 5 CHECK (time_criticality >= 1 AND time_criticality <= 10),
+  risk_reduction INTEGER DEFAULT 5 CHECK (risk_reduction >= 1 AND risk_reduction <= 10),
+  effort INTEGER DEFAULT 5 CHECK (effort >= 1 AND effort <= 10),
+
+  -- Computed priority score: (user_value + time_criticality + risk_reduction) / effort
+  priority_score DECIMAL(4,2) GENERATED ALWAYS AS (
+    (user_value + time_criticality + risk_reduction)::DECIMAL / GREATEST(effort, 1)
+  ) STORED,
+
+  -- Dependencies
+  depends_on UUID[] DEFAULT '{}',
+
+  -- Assignment
+  assigned_to UUID REFERENCES auth.users(id),
+  due_date DATE,
+
+  created_at TIMESTAMPTZ DEFAULT NOW(),
+  updated_at TIMESTAMPTZ DEFAULT NOW()
+);
+
+-- AI recommendations
+CREATE TABLE ai_recommendations (
+  id UUID PRIMARY KEY DEFAULT uuid_generate_v4(),
+  project_id UUID NOT NULL REFERENCES projects(id) ON DELETE CASCADE,
+  type recommendation_type NOT NULL,
+  priority recommendation_priority DEFAULT 'medium',
+  title TEXT NOT NULL,
+  description TEXT NOT NULL,
+  action_command TEXT,
+  related_items UUID[] DEFAULT '{}',
+  dismissed BOOLEAN DEFAULT FALSE,
+  dismissed_at TIMESTAMPTZ,
+  created_at TIMESTAMPTZ DEFAULT NOW()
+);
+
+-- Project health metrics (historical tracking)
+CREATE TABLE project_health_snapshots (
+  id UUID PRIMARY KEY DEFAULT uuid_generate_v4(),
+  project_id UUID NOT NULL REFERENCES projects(id) ON DELETE CASCADE,
+  overall_score INTEGER NOT NULL CHECK (overall_score >= 0 AND overall_score <= 100),
+  velocity INTEGER DEFAULT 0,
+  blockers INTEGER DEFAULT 0,
+  overdue INTEGER DEFAULT 0,
+  completion_rate INTEGER DEFAULT 0,
+  snapshot_date DATE DEFAULT CURRENT_DATE,
+  created_at TIMESTAMPTZ DEFAULT NOW(),
+  UNIQUE(project_id, snapshot_date)
+);
+
+-- Activity feed for projects
+CREATE TABLE project_activities (
+  id UUID PRIMARY KEY DEFAULT uuid_generate_v4(),
+  project_id UUID NOT NULL REFERENCES projects(id) ON DELETE CASCADE,
+  user_id UUID REFERENCES auth.users(id),
+  activity_type TEXT NOT NULL,
+  message TEXT NOT NULL,
+  metadata JSONB DEFAULT '{}',
+  created_at TIMESTAMPTZ DEFAULT NOW()
+);
+
+-- Indexes for performance
+CREATE INDEX idx_projects_user_id ON projects(user_id);
+CREATE INDEX idx_project_phases_project_id ON project_phases(project_id);
+CREATE INDEX idx_backlog_items_project_id ON backlog_items(project_id);
+CREATE INDEX idx_backlog_items_status ON backlog_items(status);
+CREATE INDEX idx_backlog_items_priority ON backlog_items(priority_score DESC);
+CREATE INDEX idx_ai_recommendations_project_id ON ai_recommendations(project_id);
+CREATE INDEX idx_ai_recommendations_dismissed ON ai_recommendations(dismissed) WHERE dismissed = FALSE;
+CREATE INDEX idx_project_health_snapshots_project_id ON project_health_snapshots(project_id);
+CREATE INDEX idx_project_activities_project_id ON project_activities(project_id);
+CREATE INDEX idx_project_activities_created_at ON project_activities(created_at DESC);
+
+-- Row Level Security
+ALTER TABLE projects ENABLE ROW LEVEL SECURITY;
+ALTER TABLE project_phases ENABLE ROW LEVEL SECURITY;
+ALTER TABLE backlog_items ENABLE ROW LEVEL SECURITY;
+ALTER TABLE ai_recommendations ENABLE ROW LEVEL SECURITY;
+ALTER TABLE project_health_snapshots ENABLE ROW LEVEL SECURITY;
+ALTER TABLE project_activities ENABLE ROW LEVEL SECURITY;
+
+-- RLS Policies: Users can only access their own projects
+CREATE POLICY "Users can view their own projects" ON projects
+  FOR SELECT USING (auth.uid() = user_id);
+
+CREATE POLICY "Users can create their own projects" ON projects
+  FOR INSERT WITH CHECK (auth.uid() = user_id);
+
+CREATE POLICY "Users can update their own projects" ON projects
+  FOR UPDATE USING (auth.uid() = user_id);
+
+CREATE POLICY "Users can delete their own projects" ON projects
+  FOR DELETE USING (auth.uid() = user_id);
+
+-- RLS for project_phases
+CREATE POLICY "Users can manage phases of their projects" ON project_phases
+  FOR ALL USING (
+    EXISTS (SELECT 1 FROM projects WHERE projects.id = project_phases.project_id AND projects.user_id = auth.uid())
+  );
+
+-- RLS for backlog_items
+CREATE POLICY "Users can manage backlog of their projects" ON backlog_items
+  FOR ALL USING (
+    EXISTS (SELECT 1 FROM projects WHERE projects.id = backlog_items.project_id AND projects.user_id = auth.uid())
+  );
+
+-- RLS for ai_recommendations
+CREATE POLICY "Users can view recommendations for their projects" ON ai_recommendations
+  FOR ALL USING (
+    EXISTS (SELECT 1 FROM projects WHERE projects.id = ai_recommendations.project_id AND projects.user_id = auth.uid())
+  );
+
+-- RLS for project_health_snapshots
+CREATE POLICY "Users can view health of their projects" ON project_health_snapshots
+  FOR ALL USING (
+    EXISTS (SELECT 1 FROM projects WHERE projects.id = project_health_snapshots.project_id AND projects.user_id = auth.uid())
+  );
+
+-- RLS for project_activities
+CREATE POLICY "Users can view activities of their projects" ON project_activities
+  FOR ALL USING (
+    EXISTS (SELECT 1 FROM projects WHERE projects.id = project_activities.project_id AND projects.user_id = auth.uid())
+  );
+
+-- Functions
+
+-- Update updated_at timestamp
+CREATE OR REPLACE FUNCTION update_updated_at()
+RETURNS TRIGGER AS $$
+BEGIN
+  NEW.updated_at = NOW();
+  RETURN NEW;
+END;
+$$ LANGUAGE plpgsql;
+
+-- Triggers for updated_at
+CREATE TRIGGER projects_updated_at BEFORE UPDATE ON projects
+  FOR EACH ROW EXECUTE FUNCTION update_updated_at();
+
+CREATE TRIGGER project_phases_updated_at BEFORE UPDATE ON project_phases
+  FOR EACH ROW EXECUTE FUNCTION update_updated_at();
+
+CREATE TRIGGER backlog_items_updated_at BEFORE UPDATE ON backlog_items
+  FOR EACH ROW EXECUTE FUNCTION update_updated_at();
+
+-- Function to calculate project health
+CREATE OR REPLACE FUNCTION calculate_project_health(p_project_id UUID)
+RETURNS INTEGER AS $$
+DECLARE
+  total_items INTEGER;
+  done_items INTEGER;
+  blocked_items INTEGER;
+  overdue_items INTEGER;
+  health INTEGER;
+BEGIN
+  SELECT COUNT(*),
+         COUNT(*) FILTER (WHERE status = 'done'),
+         COUNT(*) FILTER (WHERE status = 'blocked'),
+         COUNT(*) FILTER (WHERE due_date < CURRENT_DATE AND status NOT IN ('done', 'blocked'))
+  INTO total_items, done_items, blocked_items, overdue_items
+  FROM backlog_items WHERE project_id = p_project_id;
+
+  IF total_items = 0 THEN
+    RETURN 100;
+  END IF;
+
+  -- Health calculation: base 100, minus penalties
+  health := 100;
+  health := health - (blocked_items * 10);  -- -10 per blocker
+  health := health - (overdue_items * 5);   -- -5 per overdue
+  health := health + (done_items * 2);      -- +2 per completed
+
+  RETURN GREATEST(0, LEAST(100, health));
+END;
+$$ LANGUAGE plpgsql;
+
+-- Function to record daily health snapshot
+CREATE OR REPLACE FUNCTION record_health_snapshot(p_project_id UUID)
+RETURNS VOID AS $$
+DECLARE
+  v_health INTEGER;
+  v_velocity INTEGER;
+  v_blockers INTEGER;
+  v_overdue INTEGER;
+  v_completion_rate INTEGER;
+  v_total INTEGER;
+  v_done INTEGER;
+BEGIN
+  v_health := calculate_project_health(p_project_id);
+
+  SELECT COUNT(*) FILTER (WHERE status = 'blocked'),
+         COUNT(*) FILTER (WHERE due_date < CURRENT_DATE AND status NOT IN ('done', 'blocked')),
+         COUNT(*),
+         COUNT(*) FILTER (WHERE status = 'done')
+  INTO v_blockers, v_overdue, v_total, v_done
+  FROM backlog_items WHERE project_id = p_project_id;
+
+  v_completion_rate := CASE WHEN v_total > 0 THEN (v_done * 100 / v_total) ELSE 0 END;
+
+  -- Velocity: items completed in last 7 days
+  SELECT COUNT(*) INTO v_velocity
+  FROM backlog_items
+  WHERE project_id = p_project_id
+    AND status = 'done'
+    AND updated_at >= NOW() - INTERVAL '7 days';
+
+  INSERT INTO project_health_snapshots (project_id, overall_score, velocity, blockers, overdue, completion_rate)
+  VALUES (p_project_id, v_health, v_velocity, v_blockers, v_overdue, v_completion_rate)
+  ON CONFLICT (project_id, snapshot_date)
+  DO UPDATE SET
+    overall_score = EXCLUDED.overall_score,
+    velocity = EXCLUDED.velocity,
+    blockers = EXCLUDED.blockers,
+    overdue = EXCLUDED.overdue,
+    completion_rate = EXCLUDED.completion_rate;
+
+  -- Update project health_score
+  UPDATE projects SET health_score = v_health WHERE id = p_project_id;
+END;
+$$ LANGUAGE plpgsql;
+
+-- Comments for documentation
+COMMENT ON TABLE projects IS 'User projects with design thinking phases';
+COMMENT ON TABLE project_phases IS 'Track status of each design phase per project iteration';
+COMMENT ON TABLE backlog_items IS 'Prioritized backlog with WSJF scoring';
+COMMENT ON COLUMN backlog_items.priority_score IS 'WSJF: (user_value + time_criticality + risk_reduction) / effort';
+COMMENT ON TABLE ai_recommendations IS 'AI-generated insights and action recommendations';
+COMMENT ON TABLE project_health_snapshots IS 'Daily snapshots of project health metrics';