diff --git a/.gitignore b/.gitignore
new file mode 100644
index 0000000..e6f6704
--- /dev/null
+++ b/.gitignore
@@ -0,0 +1,2 @@
+!.env.example
+.env
diff --git a/Dockerfile b/Dockerfile
index 0e7f45b..992d426 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -6,5 +6,6 @@ COPY requirements.txt ./
 RUN pip install --no-cache-dir -r requirements.txt
 
 COPY ./app /code/app
+COPY alembic.ini ./
 
 CMD ["uvicorn", "app.main:app", "--host", "0.0.0.0", "--port", "8000"]
diff --git a/README.md b/README.md
index 65e623f..54b5e28 100644
--- a/README.md
+++ b/README.md
@@ -1,17 +1,65 @@
 # Book API
 
-## Installation
-1. Clone the repository: `git clone https://github.com/yourusername/bookapi.git`
-2. Navigate to the project directory: `cd bookapi`
-3. Copy and configure environment variables: `cp .env.example .env`
-4. Build docker-compose: `docker-compose build`
-5. Run the application: `docker-compose up`
+This project is a test web application built using FastAPI, a modern web framework for creating APIs in Python. It showcases the use of Pydantic for data validation, SQLModel for database interactions, Alembic for migration management, PostgreSQL as the database system, and Docker Compose for easy deployment.
 
-## Usage
+### **Key Components:**
 
-## TODO
-* Usage instructions
-* Split models for api and db
-* Add documentation for API endpoints
-* Add alembic migrations
-* Add tests
+1. FastAPI: Provides high performance and simplicity for developing RESTful APIs, supporting asynchronous operations and automatic documentation generation.
+2. Pydantic: Used for data validation and serialization, allowing easy definition of data schemas.
+3. SQLModel: Combines SQLAlchemy and Pydantic, enabling database operations with Python classes.
+4. Alembic: A tool for managing database migrations, making it easy to track and apply changes to the database schema.
+5. PostgreSQL: A reliable relational database used for data storage.
+6. Docker Compose: Simplifies the deployment of the application and its dependencies in containers.
+
+
+### **Installation Instructions**
+
+1. Clone the repository:
+   ```bash
+   git clone https://github.com/yourusername/bookapi.git
+   ```
+
+2. Navigate to the project directory:
+   ```bash
+   cd bookapi
+   ```
+
+3. Copy and configure environment variables:
+   ```bash
+   cp .env.example .env
+   ```
+
+4. Build the Docker containers:
+   ```bash
+   docker-compose build
+   ```
+
+5. Run the application:
+   ```bash
+   docker-compose up
+   ```
+
+
+### **API Endpoints**
+
+**Authors**
+| Method | Endpoint          | Description                          |
+|--------|-------------------|--------------------------------------|
+| POST   | `/author`         | Create a new author                  |
+| GET    | `/author`         | Retrieve a list of all authors       |
+| PUT    | `/author/{id}`    | Update a specific author by ID       |
+| DELETE | `/author/{id}`    | Delete a specific author by ID       |
+
+**Books**
+| Method | Endpoint          | Description                          |
+|--------|-------------------|--------------------------------------|
+| POST   | `/books`          | Create a new book                    |
+| GET    | `/books`          | Retrieve a list of all books         |
+| PUT    | `/books/{id}`     | Update a specific book by ID         |
+| DELETE | `/books/{id}`     | Delete a specific book by ID         |
+
+
+### **TODO List**
+
+- Split models for API and database
+- Implement tests
diff --git a/alembic.ini b/alembic.ini
new file mode 100644
index 0000000..e63faa7
--- /dev/null
+++ b/alembic.ini
@@ -0,0 +1,116 @@
+# A generic, single database configuration.
+
+[alembic]
+# path to migration scripts
+script_location = app/migrations
+
+# template used to generate migration file names; The default value is %%(rev)s_%%(slug)s
+# Uncomment the line below if you want the files to be prepended with date and time
+# see https://alembic.sqlalchemy.org/en/latest/tutorial.html#editing-the-ini-file
+# for all available tokens
+# file_template = %%(year)d_%%(month).2d_%%(day).2d_%%(hour).2d%%(minute).2d-%%(rev)s_%%(slug)s
+
+# sys.path path, will be prepended to sys.path if present.
+# defaults to the current working directory.
+prepend_sys_path = .
+
+# timezone to use when rendering the date within the migration file
+# as well as the filename.
+# If specified, requires the python>=3.9 or backports.zoneinfo library.
+# Any required deps can installed by adding `alembic[tz]` to the pip requirements
+# string value is passed to ZoneInfo()
+# leave blank for localtime
+# timezone =
+
+# max length of characters to apply to the
+# "slug" field
+# truncate_slug_length = 40
+
+# set to 'true' to run the environment during
+# the 'revision' command, regardless of autogenerate
+# revision_environment = false
+
+# set to 'true' to allow .pyc and .pyo files without
+# a source .py file to be detected as revisions in the
+# versions/ directory
+# sourceless = false
+
+# version location specification; This defaults
+# to migrations/versions.  When using multiple version
+# directories, initial revisions must be specified with --version-path.
+# The path separator used here should be the separator specified by "version_path_separator" below.
+# version_locations = %(here)s/bar:%(here)s/bat:migrations/versions
+
+# version path separator; As mentioned above, this is the character used to split
+# version_locations. The default within new alembic.ini files is "os", which uses os.pathsep.
+# If this key is omitted entirely, it falls back to the legacy behavior of splitting on spaces and/or commas.
+# Valid values for version_path_separator are:
+#
+# version_path_separator = :
+# version_path_separator = ;
+# version_path_separator = space
+version_path_separator = os  # Use os.pathsep. Default configuration used for new projects.
+
+# set to 'true' to search source files recursively
+# in each "version_locations" directory
+# new in Alembic version 1.10
+# recursive_version_locations = false
+
+# the output encoding used when revision files
+# are written from script.py.mako
+# output_encoding = utf-8
+
+sqlalchemy.url = driver://user:pass@localhost/dbname
+
+
+[post_write_hooks]
+# post_write_hooks defines scripts or Python functions that are run
+# on newly generated revision scripts.  See the documentation for further
+# detail and examples
+
+# format using "black" - use the console_scripts runner, against the "black" entrypoint
+# hooks = black
+# black.type = console_scripts
+# black.entrypoint = black
+# black.options = -l 79 REVISION_SCRIPT_FILENAME
+
+# lint with attempts to fix using "ruff" - use the exec runner, execute a binary
+# hooks = ruff
+# ruff.type = exec
+# ruff.executable = %(here)s/.venv/bin/ruff
+# ruff.options = --fix REVISION_SCRIPT_FILENAME
+
+# Logging configuration
+[loggers]
+keys = root,sqlalchemy,alembic
+
+[handlers]
+keys = console
+
+[formatters]
+keys = generic
+
+[logger_root]
+level = WARN
+handlers = console
+qualname =
+
+[logger_sqlalchemy]
+level = WARN
+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/app/database.py b/app/database.py
index 93a25b5..0199d4a 100644
--- a/app/database.py
+++ b/app/database.py
@@ -1,15 +1,11 @@
 from sqlmodel import create_engine, SQLModel, Session
-from dotenv import load_dotenv
-import os
+from decouple import config
 
 # Get database configuration
-load_dotenv()
-DATABASE_URL = os.getenv("DATABASE_URL")
-if not DATABASE_URL:
-    raise ValueError("DATABASE_URL environment variable is not set")
+DATABASE_URL = config('DATABASE_URL', cast=str, default='sqlite:///./bookapi.db')
 
 # Create database engine
-engine = create_engine(DATABASE_URL, echo=True)
+engine = create_engine(str(DATABASE_URL), echo=True)
 SQLModel.metadata.create_all(engine)
 
 # Get database session
diff --git a/app/main.py b/app/main.py
index f45fe76..fd8615e 100644
--- a/app/main.py
+++ b/app/main.py
@@ -1,3 +1,5 @@
+from alembic import command
+from alembic.config import Config
 from fastapi import FastAPI, HTTPException
 from sqlmodel import SQLModel, Session, select
 from typing import List
@@ -5,11 +7,15 @@ from .database import engine
 from .models import Author, Book
 
 app = FastAPI()
+alembic_cfg = Config("alembic.ini")
 
 # Initialize the database
 @app.on_event("startup")
 def on_startup():
-    SQLModel.metadata.create_all(engine)
+    # Apply database migrations
+    with engine.begin() as connection:
+            alembic_cfg.attributes['connection'] = connection
+            command.upgrade(alembic_cfg, "head")
 
 # Root endpoint
 @app.get("/")
diff --git a/app/migrations/README b/app/migrations/README
new file mode 100644
index 0000000..98e4f9c
--- /dev/null
+++ b/app/migrations/README
@@ -0,0 +1 @@
+Generic single-database configuration.
\ No newline at end of file
diff --git a/app/migrations/env.py b/app/migrations/env.py
new file mode 100644
index 0000000..959e229
--- /dev/null
+++ b/app/migrations/env.py
@@ -0,0 +1,81 @@
+from logging.config import fileConfig
+from decouple import config as conf
+from alembic import context
+
+from sqlalchemy import engine_from_config
+from sqlalchemy import pool
+from sqlmodel import SQLModel
+
+DATABASE_URL = conf("DATABASE_URL")
+
+# this is the Alembic Config object, which provides
+# access to the values within the .ini file in use.
+config = context.config
+config.set_main_option("sqlalchemy.url", str(DATABASE_URL))
+
+# Interpret the config file for Python logging.
+# This line sets up loggers basically.
+if config.config_file_name is not None:
+    fileConfig(config.config_file_name)
+
+# add your model's MetaData object here
+# for 'autogenerate' support
+from app.models import Book, Author, AuthorBookLink
+target_metadata = SQLModel.metadata
+
+# other values from the config, defined by the needs of env.py,
+# can be acquired:
+# my_important_option = config.get_main_option("my_important_option")
+# ... etc.
+
+
+def run_migrations_offline() -> None:
+    """Run migrations in 'offline' mode.
+
+    This configures the context with just a URL
+    and not an Engine, though an Engine is acceptable
+    here as well.  By skipping the Engine creation
+    we don't even need a DBAPI to be available.
+
+    Calls to context.execute() here emit the given string to the
+    script output.
+
+    """
+    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:
+    """Run migrations in 'online' mode.
+
+    In this scenario we need to create an Engine
+    and associate a connection with the context.
+
+    """
+    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/app/migrations/script.py.mako b/app/migrations/script.py.mako
new file mode 100644
index 0000000..6ce3351
--- /dev/null
+++ b/app/migrations/script.py.mako
@@ -0,0 +1,27 @@
+"""${message}
+
+Revision ID: ${up_revision}
+Revises: ${down_revision | comma,n}
+Create Date: ${create_date}
+
+"""
+from typing import Sequence, Union
+
+from alembic import op
+import sqlalchemy as sa
+import sqlmodel
+${imports if imports else ""}
+
+# revision identifiers, used by Alembic.
+revision: str = ${repr(up_revision)}
+down_revision: Union[str, None] = ${repr(down_revision)}
+branch_labels: Union[str, Sequence[str], None] = ${repr(branch_labels)}
+depends_on: Union[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/app/migrations/versions/__pycache__/d266fdc61e99_init.cpython-311.pyc b/app/migrations/versions/__pycache__/d266fdc61e99_init.cpython-311.pyc
new file mode 100644
index 0000000..c54e06a
Binary files /dev/null and b/app/migrations/versions/__pycache__/d266fdc61e99_init.cpython-311.pyc differ
diff --git a/app/migrations/versions/d266fdc61e99_init.py b/app/migrations/versions/d266fdc61e99_init.py
new file mode 100644
index 0000000..42ca91d
--- /dev/null
+++ b/app/migrations/versions/d266fdc61e99_init.py
@@ -0,0 +1,54 @@
+"""init
+
+Revision ID: d266fdc61e99
+Revises: 
+Create Date: 2025-05-27 18:04:22.279035
+
+"""
+from typing import Sequence, Union
+
+from alembic import op
+import sqlalchemy as sa
+import sqlmodel
+
+
+# revision identifiers, used by Alembic.
+revision: str = 'd266fdc61e99'
+down_revision: Union[str, None] = None
+branch_labels: Union[str, Sequence[str], None] = None
+depends_on: Union[str, Sequence[str], None] = None
+
+
+def upgrade() -> None:
+    # ### commands auto generated by Alembic - please adjust! ###
+    op.create_table('author',
+    sa.Column('id', sa.Integer(), nullable=False),
+    sa.Column('name', sqlmodel.sql.sqltypes.AutoString(), nullable=False),
+    sa.PrimaryKeyConstraint('id')
+    )
+    op.create_index(op.f('ix_author_id'), 'author', ['id'], unique=False)
+    op.create_table('book',
+    sa.Column('id', sa.Integer(), nullable=False),
+    sa.Column('title', sqlmodel.sql.sqltypes.AutoString(), nullable=False),
+    sa.Column('description', sqlmodel.sql.sqltypes.AutoString(), nullable=False),
+    sa.PrimaryKeyConstraint('id')
+    )
+    op.create_index(op.f('ix_book_id'), 'book', ['id'], unique=False)
+    op.create_table('authorbooklink',
+    sa.Column('author_id', sa.Integer(), nullable=False),
+    sa.Column('book_id', sa.Integer(), nullable=False),
+    sa.ForeignKeyConstraint(['author_id'], ['author.id'], ),
+    sa.ForeignKeyConstraint(['book_id'], ['book.id'], ),
+    sa.PrimaryKeyConstraint('author_id', 'book_id')
+    )
+    # ### end Alembic commands ###
+
+
+def downgrade() -> None:
+    # ### commands auto generated by Alembic - please adjust! ###
+    op.drop_table('authorbooklink')
+    op.drop_index(op.f('ix_book_id'), table_name='book')
+    op.drop_table('book')
+    op.drop_index(op.f('ix_author_id'), table_name='author')
+    op.drop_table('author')
+    # ### end Alembic commands ###
diff --git a/docker-compose.yml b/docker-compose.yml
index ebfd929..e301d3b 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -12,10 +12,12 @@ services:
 
   api:
     build: .
-    ports:
-      - "8000:8000"
     environment:
       DATABASE_URL: postgresql://${POSTGRES_USER}:${POSTGRES_PASSWORD}@db:5432/${POSTGRES_DB}
+    ports:
+      - "8000:8000"
+    volumes:
+      - ./app/migrations/versions:/code/app/migrations/versions
     depends_on:
       - db
 
diff --git a/requirements.txt b/requirements.txt
index b7f81a5..b263068 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -2,4 +2,5 @@ fastapi
 uvicorn[standard]
 sqlmodel
 psycopg2-binary
-python-dotenv
+python-decouple
+alembic