diff --git a/backend/src/controllers/auction.controller.ts b/backend/src/controllers/auction.controller.ts
new file mode 100644
index 0000000..e69de29
diff --git a/backend/src/models/auction.model.ts b/backend/src/models/auction.model.ts
new file mode 100644
index 0000000..ce56b61
--- /dev/null
+++ b/backend/src/models/auction.model.ts
@@ -0,0 +1,56 @@
+import mongoose from "mongoose";
+
+const auctionSchema = new mongoose.Schema({
+  itemName: {
+    type: String,
+    required: true,
+    trim: true,
+  },
+  itemDescription: {
+    type: String,
+    trim: true,
+  },
+  startPrice: {
+    type: Number,
+    required: true,
+    min: 0,
+  },
+  currentHighestBid: {
+    type: Number,
+    default: function () { return this.startPrice; },
+  },
+  highestBidder: {
+    type: mongoose.Schema.Types.ObjectId,
+    ref: "User",
+    default: null,
+  },
+  seller: {
+    type: mongoose.Schema.Types.ObjectId,
+    ref: "User",
+    required: true,
+  },
+  createdAt: {
+    type: Date,
+    default: Date.now,
+  },
+  expiresAt: {
+    type: Date,
+    required: true,
+  },
+  status: {
+    type: String,
+    enum: ["active", "expired", "sold"],
+    default: "active",
+  },
+  soldTo: {
+    type: mongoose.Schema.Types.ObjectId,
+    ref: "User",
+    default: null,
+  },
+  soldPrice: {
+    type: Number,
+    default: 0,
+  },
+});
+
+export default mongoose.model("Auction", auctionSchema);
diff --git a/backend/src/models/bid.model.ts b/backend/src/models/bid.model.ts
new file mode 100644
index 0000000..b4f3c5c
--- /dev/null
+++ b/backend/src/models/bid.model.ts
@@ -0,0 +1,25 @@
+import mongoose from "mongoose";
+
+const bidSchema = new mongoose.Schema({
+  auctionId: {
+    type: mongoose.Schema.Types.ObjectId,
+    ref: "Auction",
+    required: true,
+  },
+  bidder: {
+    type: mongoose.Schema.Types.ObjectId,
+    ref: "User",
+    required: true,
+  },
+  amount: {
+    type: Number,
+    required: true,
+    min: 1,
+  },
+  createdAt: {
+    type: Date,
+    default: Date.now,
+  },
+});
+
+export default mongoose.model("Bid", bidSchema);
diff --git a/backend/src/routes/auctionRoutes.ts b/backend/src/routes/auctionRoutes.ts
new file mode 100644
index 0000000..5f4f908
--- /dev/null
+++ b/backend/src/routes/auctionRoutes.ts
@@ -0,0 +1,20 @@
+import express from "express";
+import {
+  createAuction,
+  placeBid,
+  acceptHighestBid,
+} from "../controllers/auction.controller";
+import { authenticate, authorizeRole } from "../middleware/authMiddleware";
+
+const router = express.Router();
+
+//  Create a new auction (only sellers)
+router.post("/", authenticate, authorizeRole("seller"), createAuction);
+
+//  Place a bid (only buyers)
+router.post("/:id/bid", authenticate, authorizeRole("buyer"), placeBid);
+
+//  Seller accepts the highest bid (only sellers)
+router.post("/:id/accept", authenticate, authorizeRole("seller"), acceptHighestBid);
+
+export default router;