diff --git a/DB_MIGRATION_PLAN.md b/DB_MIGRATION_PLAN.md
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+# Database Operations Migration Plan
+
+## Overview
+Move all database operations from `frontends/nextjs/src/lib/db/` to DBAL (`dbal/development/src/`).
+
+## Current State
+- **Frontend DB**: 235 files (1.3MB) in `frontends/nextjs/src/lib/db/`
+- **DBAL**: Core entity operations in `dbal/development/src/core/entities/`
+- **Seed System**: DBAL has proper seed orchestration in `dbal/development/src/seeds/`
+
+## Migration Status
+
+### ✅ Completed
+1. **Seed Operations** - `api/setup/route.ts` now uses DBAL's `seedDatabase()` instead of frontend `Database.seedDefaultData()`
+
+### 🚧 In Progress
+
+#### Priority 1: Core Entity Operations
+These operations exist in DBAL and should be migrated first:
+- [ ] User operations (`frontends/nextjs/src/lib/db/users/` → `dbal/development/src/core/entities/user/`)
+- [ ] Session operations (`frontends/nextjs/src/lib/db/sessions/` → `dbal/development/src/core/entities/session/`)
+- [ ] Workflow operations (`frontends/nextjs/src/lib/db/workflows/` → `dbal/development/src/core/entities/workflow/`)
+- [ ] Package operations (`frontends/nextjs/src/lib/db/packages/` → `dbal/development/src/core/entities/package/`)
+- [ ] Page operations (`frontends/nextjs/src/lib/db/pages/` → `dbal/development/src/core/entities/page/`)
+
+#### Priority 2: Extended Operations
+Operations that need entity definitions added to DBAL:
+- [ ] Comments (`frontends/nextjs/src/lib/db/comments/`)
+- [ ] Components (`frontends/nextjs/src/lib/db/components/`)
+- [ ] CSS Classes (`frontends/nextjs/src/lib/db/css-classes/`)
+- [ ] Dropdown Configs (`frontends/nextjs/src/lib/db/dropdown-configs/`)
+- [ ] Error Logs (`frontends/nextjs/src/lib/db/error-logs/`)
+- [ ] Tenants (`frontends/nextjs/src/lib/db/tenants/`)
+- [ ] SMTP Config (`frontends/nextjs/src/lib/db/smtp-config/`)
+- [ ] God Credentials (`frontends/nextjs/src/lib/db/god-credentials/`)
+- [ ] Power Transfers (`frontends/nextjs/src/lib/db/power-transfers/`)
+
+#### Priority 3: Utility Functions
+- [ ] Password operations (`hash-password.ts`, `verify-password.ts`) → Move to `dbal/development/src/core/auth/`
+- [ ] Schema operations (`frontends/nextjs/src/lib/db/schemas/`)
+- [ ] App Config (`frontends/nextjs/src/lib/db/app-config/`)
+- [ ] System Config (`frontends/nextjs/src/lib/db/system-config/`)
+
+### 📋 Migration Process
+
+For each entity type:
+
+1. **Check if entity exists in DBAL**
+   - Look in `dbal/shared/api/schema/entities/` for YAML definition
+   - Look in `dbal/development/src/core/entities/` for TypeScript operations
+
+2. **If entity exists in DBAL:**
+   - Update frontend API routes to use `getDBALClient()` instead of direct imports
+   - Example: Replace `import { getUser } from '@/lib/db/users/get-user'` with `const dbal = getDBALClient(); await dbal.users.read(id)`
+   - Remove frontend implementation files once all usages are migrated
+
+3. **If entity doesn't exist in DBAL:**
+   - Create YAML entity definition in `dbal/shared/api/schema/entities/`
+   - Run code generation: `npm --prefix dbal/development run codegen`
+   - Implement operations in `dbal/development/src/core/entities/{entity}/`
+   - Then follow step 2 above
+
+4. **Update imports across frontend:**
+   - Replace `@/lib/db/*` imports with `@/dbal` imports
+   - Use DBALClient entity operations instead of direct function calls
+
+## Testing Strategy
+
+1. **Unit Tests**: Ensure DBAL operations have test coverage
+2. **Integration Tests**: Test DBAL operations with actual database
+3. **E2E Tests**: Verify frontend still works with DBAL operations
+4. **Incremental Migration**: Migrate one entity type at a time, test before moving to next
+
+## Benefits
+
+1. **Single Source of Truth**: All database logic in one place (DBAL)
+2. **Better Security**: DBAL enforces ACL and tenant isolation
+3. **Type Safety**: Generated types from YAML schemas
+4. **Easier Testing**: DBAL operations isolated from frontend
+5. **Future C++ Daemon**: Path to Phase 3 architecture with C++ DBAL daemon
+
+## Architecture Alignment
+
+### Before (Current State)
+```
+Frontend (Next.js)
+  └── lib/db/
+       ├── users/
+       ├── sessions/
+       ├── workflows/
+       └── ... (235 files)
+           └── Direct Prisma access
+```
+
+### After (Target State)
+```
+Frontend (Next.js)
+  └── Uses getDBALClient() only
+
+DBAL (TypeScript/Future C++)
+  └── dbal/development/src/
+       ├── core/entities/
+       │    ├── user/
+       │    ├── session/
+       │    ├── workflow/
+       │    └── ...
+       └── seeds/
+            └── Seed orchestration
+```
+
+## Next Steps
+
+1. ✅ Update `/api/setup` route to use DBAL seed system (DONE)
+2. Create migration scripts to help automate the refactoring
+3. Migrate Priority 1 entities one by one
+4. Update all API routes to use DBAL
+5. Remove `frontends/nextjs/src/lib/db/` once migration complete
+
+## Notes
+
+- This is a large refactoring (235 files)
+- Incremental approach recommended
+- Test thoroughly at each step
+- Consider creating a feature flag to toggle between old/new implementations during transition
diff --git a/frontends/nextjs/src/app/api/setup/route.ts b/frontends/nextjs/src/app/api/setup/route.ts
index 725671e1f..0c8a7f2c6 100644
--- a/frontends/nextjs/src/app/api/setup/route.ts
+++ b/frontends/nextjs/src/app/api/setup/route.ts
@@ -1,14 +1,19 @@
 import { NextResponse } from 'next/server'
-import { Database } from '@/lib/db/core/operations'
+import { getDBALClient, seedDatabase } from '@/dbal'
 
 /**
  * POST /api/setup
  * One-time setup endpoint to seed database with default data
  * Database schema should already be created via `npm run db:push`
+ * 
+ * Uses DBAL seed system which loads data from:
+ * - /dbal/shared/seeds/database/*.yaml - Base system data
+ * - /packages/*/page-config/*.json - Package-specific routes
  */
 export async function POST() {
   try {
-    await Database.seedDefaultData()
+    const dbal = getDBALClient()
+    await seedDatabase(dbal)
     return NextResponse.json({
       status: 'ok',
       message: 'Database seeded with default data',