diff --git a/dbal/README.md b/dbal/README.md
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@@ -19,6 +19,7 @@ dbal/
 - 🏗️ **[Architecture](docs/PROJECT.md)** - System architecture and design
 - 🤖 **[Agent Guide](docs/AGENTS.md)** - AI development guidelines
 - 📋 **[Restructure Info](docs/RESTRUCTURE_SUMMARY.md)** - Recent organizational changes
+- ☁️ **[S3 Configuration](docs/S3_CONFIGURATION.md)** - S3 blob storage setup
 
 ## Development
 
diff --git a/dbal/docs/S3_CONFIGURATION.md b/dbal/docs/S3_CONFIGURATION.md
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+# S3 Blob Storage Configuration
+
+This document describes how to configure and use S3-compatible blob storage with the DBAL.
+
+## Overview
+
+The DBAL supports multiple blob storage backends:
+- **Filesystem** - Local file storage (default for development)
+- **Memory** - In-memory storage (for testing)
+- **S3** - AWS S3 or S3-compatible storage (for production)
+- **Tenant-aware** - Multi-tenant wrapper for any backend
+
+## Installing S3 Support
+
+The AWS SDK is an **optional dependency** to keep the bundle size small when S3 is not needed.
+
+### Installation
+
+```bash
+cd dbal/development
+npm install @aws-sdk/client-s3
+```
+
+### Why Optional?
+
+- Reduces bundle size for projects not using S3
+- Prevents unnecessary dependency downloads
+- Allows frontend builds without AWS SDK installed
+- Runtime error if S3 is configured but SDK not installed
+
+## S3 Configuration
+
+### Environment Variables
+
+```bash
+# AWS S3 Configuration
+AWS_REGION=us-east-1
+AWS_ACCESS_KEY_ID=your-access-key
+AWS_SECRET_ACCESS_KEY=your-secret-key
+S3_BUCKET=your-bucket-name
+
+# For S3-compatible services (MinIO, DigitalOcean Spaces, etc.)
+S3_ENDPOINT=https://your-endpoint.com
+S3_FORCE_PATH_STYLE=true
+```
+
+### DBAL Configuration
+
+```typescript
+import { DBALClient } from '@/dbal'
+
+const client = new DBALClient({
+  mode: 'production',
+  adapter: 'prisma',
+  database: {
+    url: process.env.DATABASE_URL,
+  },
+  blob: {
+    provider: 's3',
+    s3: {
+      region: process.env.AWS_REGION || 'us-east-1',
+      bucket: process.env.S3_BUCKET!,
+      accessKeyId: process.env.AWS_ACCESS_KEY_ID,
+      secretAccessKey: process.env.AWS_SECRET_ACCESS_KEY,
+      endpoint: process.env.S3_ENDPOINT,
+      forcePathStyle: process.env.S3_FORCE_PATH_STYLE === 'true',
+    },
+  },
+})
+```
+
+## S3-Compatible Services
+
+### MinIO (Self-Hosted)
+
+```bash
+S3_ENDPOINT=http://localhost:9000
+S3_FORCE_PATH_STYLE=true
+AWS_ACCESS_KEY_ID=minioadmin
+AWS_SECRET_ACCESS_KEY=minioadmin
+S3_BUCKET=dbal-blobs
+```
+
+### DigitalOcean Spaces
+
+```bash
+AWS_REGION=nyc3
+S3_ENDPOINT=https://nyc3.digitaloceanspaces.com
+AWS_ACCESS_KEY_ID=your-spaces-key
+AWS_SECRET_ACCESS_KEY=your-spaces-secret
+S3_BUCKET=your-space-name
+```
+
+### Cloudflare R2
+
+```bash
+AWS_REGION=auto
+S3_ENDPOINT=https://your-account.r2.cloudflarestorage.com
+AWS_ACCESS_KEY_ID=your-r2-access-key
+AWS_SECRET_ACCESS_KEY=your-r2-secret-key
+S3_BUCKET=your-bucket-name
+```
+
+## Usage Example
+
+```typescript
+import { getDBAL } from '@/lib/dbal/database-dbal/core/get-dbal.server'
+
+// Initialize DBAL with S3 configuration
+await initializeDBAL()
+const dbal = await getDBAL()
+
+// Upload a file
+await dbal.blob.upload({
+  key: 'uploads/document.pdf',
+  data: fileBuffer,
+  metadata: {
+    contentType: 'application/pdf',
+    uploadedBy: userId,
+  },
+})
+
+// Download a file
+const fileData = await dbal.blob.download('uploads/document.pdf')
+
+// List files
+const files = await dbal.blob.list({ prefix: 'uploads/' })
+
+// Delete a file
+await dbal.blob.delete('uploads/document.pdf')
+```
+
+## Tenant-Aware Storage
+
+For multi-tenant applications, use tenant-aware storage:
+
+```typescript
+const client = new DBALClient({
+  // ... other config
+  blob: {
+    provider: 'tenant-aware',
+    tenantAware: {
+      baseProvider: 's3',
+      s3: {
+        region: 'us-east-1',
+        bucket: 'tenant-blobs',
+        // ... other S3 config
+      },
+    },
+  },
+})
+```
+
+All blob operations will be automatically scoped to the tenant:
+- Keys prefixed with `tenants/{tenantId}/`
+- Prevents cross-tenant access
+- Simplifies multi-tenant blob management
+
+## Troubleshooting
+
+### Error: `@aws-sdk/client-s3 is not installed`
+
+**Solution**: Install the AWS SDK:
+```bash
+cd dbal/development
+npm install @aws-sdk/client-s3
+```
+
+### Error: `Access Denied`
+
+**Solution**: Check IAM permissions for your AWS credentials. Required permissions:
+- `s3:PutObject`
+- `s3:GetObject`
+- `s3:DeleteObject`
+- `s3:ListBucket`
+
+### Error: `Bucket not found`
+
+**Solution**: 
+1. Verify bucket name is correct
+2. Ensure bucket exists in the specified region
+3. Check access key has permission to access the bucket
+
+### Connection timeout with custom endpoint
+
+**Solution**: Verify `S3_FORCE_PATH_STYLE=true` for S3-compatible services like MinIO.
+
+## Security Best Practices
+
+1. **Never commit credentials** - Use environment variables
+2. **Use IAM roles** - When running on AWS (EC2, ECS, Lambda)
+3. **Restrict bucket policies** - Limit access to specific prefixes
+4. **Enable versioning** - For audit trails and recovery
+5. **Use encryption** - Enable S3 server-side encryption
+6. **Implement lifecycle policies** - Auto-delete old files
+
+## Performance Tips
+
+1. **Use CloudFront** - CDN for frequently accessed files
+2. **Implement caching** - Cache blob metadata and URLs
+3. **Batch operations** - Upload/delete multiple files at once
+4. **Use multipart upload** - For large files (>5GB)
+5. **Configure CORS** - For browser-based uploads
+
+## See Also
+
+- [DBAL Blob Storage API](../api/blob-storage.md)
+- [AWS S3 Documentation](https://docs.aws.amazon.com/s3/)
+- [MinIO Documentation](https://min.io/docs/minio/linux/index.html)