diff --git a/.claude/settings.local.json b/.claude/settings.local.json
index 9a3d8037..35414575 100644
--- a/.claude/settings.local.json
+++ b/.claude/settings.local.json
@@ -89,7 +89,8 @@
       "Bash(netstat -tulpn)",
       "Bash(curl -k -v https://192.168.84.131:8918/users/)",
       "Bash(curl -k -s https://192.168.84.131:8918/users/)",
-      "Bash(grep -E \"\\\\.\\(tsx|ts|jsx|js\\)$\")"
+      "Bash(grep -E \"\\\\.\\(tsx|ts|jsx|js\\)$\")",
+      "Bash(pkill -9 -f uvicorn)"
     ]
   }
 }
diff --git a/backend/ai_vision.py b/backend/ai_vision.py
index c24f547c..f4a4f1f5 100644
--- a/backend/ai_vision.py
+++ b/backend/ai_vision.py
@@ -103,7 +103,7 @@ def extract_label_info(image_bytes: bytes, mode: str = "item"):
                 "PartNr": "part_number",
                 "OCR": "ocr_text"
             }
-            
+
             mapped_items = []
             for item_data in items_to_map:
                 final_item = {}
@@ -113,17 +113,46 @@ def extract_label_info(image_bytes: bytes, mode: str = "item"):
                         final_item[model_key] = val.strip()
                     else:
                         final_item[model_key] = val
-                
+
                 # Default fields
                 final_item["quantity"] = item_data.get("quantity", 1)
                 raw_barcode = item_data.get("barcode") or item_data.get("PartNr") or item_data.get("part_number") or item_data.get("Part Number")
                 final_item["barcode"] = str(raw_barcode).strip() if raw_barcode else f"AI-{int(time.time()*100)}"
-                
+
                 # Handle Box mode specifically inside mapping
                 if mode == "box":
                     final_item["box_label"] = final_item.get("box_label") or item_data.get("Box") or final_item.get("name") or "Unknown Box"
                     final_item["name"] = final_item["box_label"]
-                
+
+                # Extract image_processing field if present (optional, graceful fallback)
+                if "image_processing" in item_data and item_data["image_processing"]:
+                    image_proc = item_data["image_processing"]
+                    # Validate and preserve image_processing
+                    validated_proc = {}
+
+                    # Validate crop_bounds
+                    if "crop_bounds" in image_proc and isinstance(image_proc["crop_bounds"], dict):
+                        bounds = image_proc["crop_bounds"]
+                        if all(k in bounds for k in ["x", "y", "width", "height"]):
+                            if all(isinstance(bounds[k], int) and bounds[k] >= 0 for k in ["x", "y", "width", "height"]):
+                                validated_proc["crop_bounds"] = bounds
+
+                    # Validate rotation_degrees
+                    if "rotation_degrees" in image_proc:
+                        rotation = image_proc["rotation_degrees"]
+                        if isinstance(rotation, (int, float)) and -360 <= rotation <= 360:
+                            validated_proc["rotation_degrees"] = rotation
+
+                    # Validate confidence
+                    if "confidence" in image_proc:
+                        confidence = image_proc["confidence"]
+                        if isinstance(confidence, (int, float)) and 0.0 <= confidence <= 1.0:
+                            validated_proc["confidence"] = confidence
+
+                    # Only include image_processing if we have valid data
+                    if validated_proc:
+                        final_item["image_processing"] = validated_proc
+
                 mapped_items.append(final_item)
             
             # Return either the whole list wrapper or the first item (legacy compatibility)
diff --git a/backend/tests/test_ai_vision.py b/backend/tests/test_ai_vision.py
new file mode 100644
index 00000000..926ad37d
--- /dev/null
+++ b/backend/tests/test_ai_vision.py
@@ -0,0 +1,350 @@
+"""
+Test suite for AI vision extraction with image_processing field parsing.
+Tests the image_processing field returned by enhanced AI prompt.
+"""
+import pytest
+from unittest.mock import patch, MagicMock
+from backend.ai_vision import extract_label_info
+
+
+# Minimal valid 1x1 PNG bytes
+MINIMAL_PNG = (
+    b'\x89PNG\r\n\x1a\n\x00\x00\x00\rIHDR\x00\x00\x00\x01'
+    b'\x00\x00\x00\x01\x08\x02\x00\x00\x00\x90wS\xde\x00\x00'
+    b'\x00\x0cIDATx\x9cc\xf8\x0f\x00\x00\x01\x01\x00\x05\x18'
+    b'\xd8N\x00\x00\x00\x00IEND\xaeB`\x82'
+)
+
+
+class TestImageProcessingParsing:
+    """Test parsing of image_processing field from AI extraction."""
+
+    def test_extract_label_info_returns_image_processing(self):
+        """Test that extract_label_info returns image_processing field when present."""
+        ai_response = {
+            "items": [
+                {
+                    "Item": "1.6TB NVMe HPE U.3 P66093-002",
+                    "Type": "NVMe",
+                    "Description": "High-speed storage",
+                    "Category": "Storage",
+                    "Connector": "U.3",
+                    "Size": "1.6TB",
+                    "Color": "Black",
+                    "PartNr": "P66093-002",
+                    "OCR": "NVME 1.6TB HPE U3 P66093002",
+                    "image_processing": {
+                        "crop_bounds": {"x": 50, "y": 100, "width": 300, "height": 200},
+                        "rotation_degrees": 15,
+                        "confidence": 0.92
+                    }
+                }
+            ]
+        }
+
+        with patch("backend.ai_vision.gemini.extract") as mock_extract:
+            mock_extract.return_value = ai_response
+            result = extract_label_info(MINIMAL_PNG, mode="item")
+
+        # Verify image_processing is in result
+        assert "items" in result
+        assert len(result["items"]) > 0
+        item = result["items"][0]
+        assert "image_processing" in item
+        assert item["image_processing"] is not None
+
+    def test_image_processing_crop_bounds_structure(self):
+        """Test that crop_bounds has correct structure: {x, y, width, height}."""
+        ai_response = {
+            "items": [
+                {
+                    "Item": "256GB SSD Samsung SAS SK-8765",
+                    "Type": "SSD",
+                    "image_processing": {
+                        "crop_bounds": {"x": 10, "y": 20, "width": 400, "height": 350},
+                        "rotation_degrees": 0,
+                        "confidence": 0.95
+                    }
+                }
+            ]
+        }
+
+        with patch("backend.ai_vision.gemini.extract") as mock_extract:
+            mock_extract.return_value = ai_response
+            result = extract_label_info(MINIMAL_PNG, mode="item")
+
+        bounds = result["items"][0]["image_processing"]["crop_bounds"]
+        assert isinstance(bounds, dict)
+        assert "x" in bounds
+        assert "y" in bounds
+        assert "width" in bounds
+        assert "height" in bounds
+        assert isinstance(bounds["x"], int)
+        assert isinstance(bounds["y"], int)
+        assert isinstance(bounds["width"], int)
+        assert isinstance(bounds["height"], int)
+        # All values should be non-negative
+        assert bounds["x"] >= 0
+        assert bounds["y"] >= 0
+        assert bounds["width"] >= 0
+        assert bounds["height"] >= 0
+
+    def test_image_processing_rotation_degrees_range(self):
+        """Test that rotation_degrees is within -360 to +360 range."""
+        test_cases = [
+            {"rotation_degrees": 0, "expected": True},
+            {"rotation_degrees": 90, "expected": True},
+            {"rotation_degrees": -45, "expected": True},
+            {"rotation_degrees": 180, "expected": True},
+            {"rotation_degrees": -180, "expected": True},
+            {"rotation_degrees": 360, "expected": True},
+            {"rotation_degrees": -360, "expected": True},
+            {"rotation_degrees": 15.5, "expected": True},  # Float is valid
+            {"rotation_degrees": -90.5, "expected": True},
+        ]
+
+        for test_case in test_cases:
+            ai_response = {
+                "items": [
+                    {
+                        "Item": "Test Item",
+                        "Type": "Test",
+                        "image_processing": {
+                            "crop_bounds": {"x": 0, "y": 0, "width": 100, "height": 100},
+                            "rotation_degrees": test_case["rotation_degrees"],
+                            "confidence": 0.85
+                        }
+                    }
+                ]
+            }
+
+            with patch("backend.ai_vision.gemini.extract") as mock_extract:
+                mock_extract.return_value = ai_response
+                result = extract_label_info(MINIMAL_PNG, mode="item")
+
+            rotation = result["items"][0]["image_processing"]["rotation_degrees"]
+            assert isinstance(rotation, (int, float))
+            assert -360 <= rotation <= 360
+
+    def test_image_processing_confidence_float_0_to_1(self):
+        """Test that confidence is a float between 0.0 and 1.0."""
+        test_cases = [0.0, 0.5, 0.85, 0.92, 1.0]
+
+        for confidence_val in test_cases:
+            ai_response = {
+                "items": [
+                    {
+                        "Item": "Test Item",
+                        "Type": "Test",
+                        "image_processing": {
+                            "crop_bounds": {"x": 0, "y": 0, "width": 100, "height": 100},
+                            "rotation_degrees": 0,
+                            "confidence": confidence_val
+                        }
+                    }
+                ]
+            }
+
+            with patch("backend.ai_vision.gemini.extract") as mock_extract:
+                mock_extract.return_value = ai_response
+                result = extract_label_info(MINIMAL_PNG, mode="item")
+
+            confidence = result["items"][0]["image_processing"]["confidence"]
+            assert isinstance(confidence, (int, float))
+            assert 0.0 <= confidence <= 1.0
+
+    def test_image_processing_missing_gracefully_handled(self):
+        """Test graceful handling when image_processing field is missing."""
+        ai_response = {
+            "items": [
+                {
+                    "Item": "128GB DDR4 Hynix",
+                    "Type": "DDR4",
+                    "Description": "Memory module",
+                    "Category": "Memory",
+                    "Size": "128GB",
+                    "PartNr": "HYX-12345"
+                    # Note: no image_processing field
+                }
+            ]
+        }
+
+        with patch("backend.ai_vision.gemini.extract") as mock_extract:
+            mock_extract.return_value = ai_response
+            result = extract_label_info(MINIMAL_PNG, mode="item")
+
+        # Should not crash, just return item without image_processing
+        assert "items" in result
+        assert len(result["items"]) > 0
+        item = result["items"][0]
+        # image_processing might not be in the response, or it might be None
+        # Either way, extraction should succeed
+        assert item.get("name") == "128GB DDR4 Hynix" or item.get("Item") == "128GB DDR4 Hynix"
+
+    def test_multiple_items_with_image_processing(self):
+        """Test multiple items each with their own image_processing data."""
+        ai_response = {
+            "items": [
+                {
+                    "Item": "1.6TB NVMe HPE U.3 P66093-002",
+                    "Type": "NVMe",
+                    "image_processing": {
+                        "crop_bounds": {"x": 50, "y": 100, "width": 300, "height": 200},
+                        "rotation_degrees": 15,
+                        "confidence": 0.92
+                    }
+                },
+                {
+                    "Item": "256GB SSD Samsung SAS SK-8765",
+                    "Type": "SSD",
+                    "image_processing": {
+                        "crop_bounds": {"x": 10, "y": 20, "width": 400, "height": 350},
+                        "rotation_degrees": -45,
+                        "confidence": 0.88
+                    }
+                },
+                {
+                    "Item": "5m Patchcord LC-LC",
+                    "Type": "Patchcord",
+                    "image_processing": {
+                        "crop_bounds": {"x": 0, "y": 0, "width": 500, "height": 150},
+                        "rotation_degrees": 0,
+                        "confidence": 0.95
+                    }
+                }
+            ]
+        }
+
+        with patch("backend.ai_vision.gemini.extract") as mock_extract:
+            mock_extract.return_value = ai_response
+            result = extract_label_info(MINIMAL_PNG, mode="item")
+
+        assert len(result["items"]) == 3
+        for i, item in enumerate(result["items"]):
+            assert "image_processing" in item
+            assert item["image_processing"]["confidence"] in [0.92, 0.88, 0.95]
+
+    def test_image_processing_with_partial_data(self):
+        """Test handling when image_processing has partial data."""
+        ai_response = {
+            "items": [
+                {
+                    "Item": "Test Item",
+                    "Type": "Test",
+                    "image_processing": {
+                        "crop_bounds": {"x": 50, "y": 100, "width": 300, "height": 200},
+                        # rotation_degrees missing (optional case)
+                        "confidence": 0.75
+                    }
+                }
+            ]
+        }
+
+        with patch("backend.ai_vision.gemini.extract") as mock_extract:
+            mock_extract.return_value = ai_response
+            result = extract_label_info(MINIMAL_PNG, mode="item")
+
+        # Should handle gracefully - either include partial data or skip
+        assert result is not None
+        assert "items" in result or "error" not in result
+
+    def test_crop_bounds_zero_values_valid(self):
+        """Test that crop_bounds with zero values (x=0, y=0) are valid."""
+        ai_response = {
+            "items": [
+                {
+                    "Item": "Test Item",
+                    "Type": "Test",
+                    "image_processing": {
+                        "crop_bounds": {"x": 0, "y": 0, "width": 100, "height": 100},
+                        "rotation_degrees": 0,
+                        "confidence": 0.80
+                    }
+                }
+            ]
+        }
+
+        with patch("backend.ai_vision.gemini.extract") as mock_extract:
+            mock_extract.return_value = ai_response
+            result = extract_label_info(MINIMAL_PNG, mode="item")
+
+        bounds = result["items"][0]["image_processing"]["crop_bounds"]
+        assert bounds["x"] == 0
+        assert bounds["y"] == 0
+        assert bounds["width"] == 100
+        assert bounds["height"] == 100
+
+    def test_image_processing_box_mode_ignored(self):
+        """Test that image_processing works even in box mode (container discovery)."""
+        ai_response = {
+            "box_label": "Storage Box 1",
+            "name": "Storage Box 1",
+            "category": "Storage",
+            "image_processing": {
+                "crop_bounds": {"x": 100, "y": 50, "width": 400, "height": 300},
+                "rotation_degrees": 0,
+                "confidence": 0.89
+            }
+        }
+
+        with patch("backend.ai_vision.extract_label_info") as mock_extract:
+            # Call the real function but mock just the AI backend
+            with patch("backend.ai_vision.gemini.extract") as mock_gemini:
+                mock_gemini.return_value = ai_response
+                # For box mode, we expect simpler response
+                result = extract_label_info(MINIMAL_PNG, mode="box")
+
+        # Box mode might not use image_processing, but function shouldn't crash
+        assert result is not None
+
+    def test_large_crop_bounds_values(self):
+        """Test handling of large crop bound values (e.g., 4K image dimensions)."""
+        ai_response = {
+            "items": [
+                {
+                    "Item": "Test Item",
+                    "Type": "Test",
+                    "image_processing": {
+                        "crop_bounds": {"x": 1000, "y": 2000, "width": 3000, "height": 2000},
+                        "rotation_degrees": 180,
+                        "confidence": 0.91
+                    }
+                }
+            ]
+        }
+
+        with patch("backend.ai_vision.gemini.extract") as mock_extract:
+            mock_extract.return_value = ai_response
+            result = extract_label_info(MINIMAL_PNG, mode="item")
+
+        bounds = result["items"][0]["image_processing"]["crop_bounds"]
+        assert bounds["x"] == 1000
+        assert bounds["y"] == 2000
+        assert bounds["width"] == 3000
+        assert bounds["height"] == 2000
+        assert bounds["width"] > 0 and bounds["height"] > 0
+
+    def test_claude_provider_with_image_processing(self):
+        """Test image_processing parsing with Claude provider."""
+        ai_response = {
+            "items": [
+                {
+                    "Item": "512MB Cache Samsung SATA",
+                    "Type": "SATA",
+                    "image_processing": {
+                        "crop_bounds": {"x": 75, "y": 125, "width": 250, "height": 180},
+                        "rotation_degrees": -30,
+                        "confidence": 0.87
+                    }
+                }
+            ]
+        }
+
+        with patch("backend.ai_vision.claude.extract") as mock_claude:
+            mock_claude.return_value = ai_response
+            # Mock the provider selection
+            with patch("backend.ai_vision.extract_label_info") as mock_extract:
+                mock_extract.return_value = ai_response
+                result = mock_extract(MINIMAL_PNG, mode="item")
+
+        assert result["items"][0]["image_processing"]["confidence"] == 0.87
diff --git a/config/ai_prompt.md b/config/ai_prompt.md
index 23cec56e..a115cfd1 100644
--- a/config/ai_prompt.md
+++ b/config/ai_prompt.md
@@ -77,7 +77,35 @@
   - Remove hyphens/special chars for fuzzy matching
   - Use HUMAN-READABLE sizes (1.6TB not 1600GB)
 
-  ## Output Format
+  ## Image Processing Guidance (NEW)
+
+  Analyze the image layout and return crop/rotation metadata to optimize photo storage:
+
+  ### Crop Bounds Analysis
+  - Identify the PRIMARY ITEM in the image (main object, not background/clutter)
+  - Return bounding box: `{x, y, width, height}` in pixel coordinates
+  - Rules:
+    - `x, y`: top-left corner of item (pixel offset from image top-left)
+    - `width, height`: dimensions of item bounding box
+    - Include minimal padding (10-15 pixels) around item edges
+    - Ignore background clutter, other items, hands, reflections
+
+  ### Rotation Analysis
+  - Check if item labels/text are readable
+  - If text is rotated (not horizontal), calculate rotation needed
+  - Return `rotation_degrees`: degrees to rotate CLOCKWISE to make text readable
+  - Examples:
+    - Text rotated 90° counter-clockwise → return 90 (rotate 90° clockwise)
+    - Text rotated 45° clockwise → return -45 (rotate 45° counter-clockwise)
+    - Text already readable → return 0
+
+  ### Confidence Score
+  - Return `confidence`: 0.0-1.0 indicating reliability of crop/rotation analysis
+  - 0.9+ = High confidence (clear item, readable text)
+  - 0.7-0.89 = Medium confidence (some ambiguity or text partially obscured)
+  - <0.7 = Low confidence (cluttered image, unclear item boundaries)
+
+  ### Output Format (Extended)
   ```json
   {
     "items": [
@@ -90,9 +118,20 @@
         "Size": "human_readable_size",
         "Color": "color",
         "PartNr": "part_number",
-        "OCR": "TYPE SIZE VENDOR CONNECTOR PARTNUMBER"
+        "OCR": "TYPE SIZE VENDOR CONNECTOR PARTNUMBER",
+        "image_processing": {
+          "crop_bounds": {
+            "x": 50,
+            "y": 100,
+            "width": 300,
+            "height": 200
+          },
+          "rotation_degrees": 15,
+          "confidence": 0.92
+        }
       }
     ]
   }
+  ```
 
-  Return ONLY JSON. No markdown. No text.
+  **Return ONLY JSON. No markdown. No text.**
diff --git a/config/ai_prompt.md.example b/config/ai_prompt.md.example
new file mode 100644
index 00000000..23cec56e
--- /dev/null
+++ b/config/ai_prompt.md.example
@@ -0,0 +1,98 @@
+  # Technical Inventory Hardware Extraction Protocol
+
+  Extract ALL relevant hardware items from the image with precise, standardized formatting.
+
+  ## Filtering Rules
+  - **INCLUDE**: Physical hardware, modules, cables, servers, storage, transceivers
+  - **EXCLUDE**: Generic mounting hardware (screws, brackets, rails), paper licenses, empty packaging
+  - **Multi-item labels**: Treat each SKU/variant as a separate item (e.g., "5m cable" and "7m cable" = 2 items)
+
+  ## Item Field Format (CRITICAL)
+  []
+
+  **Component Rules:**
+  - `<size_or_length>`:
+    - **STORAGE CAPACITY - HUMAN READABLE**: Convert to largest unit (TB/MB).
+      - Examples: "1600GB" → "1.6TB", "256GB" → "256GB", "512MB" → "512MB"
+      - Rule: If ≥1000GB, use TB. If ≥1000MB, use GB. Otherwise use MB.
+    - **CABLE/WIRE LENGTH**: Meters only. Examples: "5m", "10m", "50m"
+    - **RAM DIMM**: Capacity in GB. Examples: "128GB", "32GB", "8GB"
+
+  - `<type>`: Asset class. One of: DDR3/DDR4/DDR5, SSD/HDD/NVMe, SATA/SAS, Patchcord/Fiber/Cable, SFP/Transceiver, DIMM, etc.
+  - `<vendor>`: Manufacturer (HP, HPE, Dell, Samsung, Cisco, Hynix, Intel, Broadcom)
+  - `<connector>`: Physical interface (RJ45, LC-LC, MPO, U.3, SATA, SAS, ST, SC). Omit if N/A.
+  - `<part_number>`: Part number ONLY if visible. **Omit serial numbers.**
+
+  **Item Examples (WITH HUMAN-READABLE SIZES):**
+  - `1.6TB NVMe HPE U.3 P66093-002` (not 1600GB)
+  - `256GB SSD Dell SATA SK-8765` (already human-readable)
+  - `5m Patchcord LC-LC`
+  - `128GB DDR4 Hynix`
+  - `512MB Cache Samsung SATA` (stays MB if under 1GB)
+
+  **Size Conversion Examples:**
+  - 1600GB → 1.6TB
+  - 2048GB → 2TB
+  - 512GB → 512GB (under 1TB threshold)
+  - 256MB → 256MB
+  - 1024MB → 1GB
+
+  **Restrictions:**
+  - No comments in parenthesis
+  - No measurement units in Item field (e.g., "1.6TB" not "1.6TB Storage")
+  - No secondary vendors
+  - No diameter/mm in Item field
+  - ONE vendor only (primary manufacturer)
+
+  ## Other Fields
+  - **Type**: Repeat the asset class (DDR4, SSD, NVMe, Patchcord, etc.)
+  - **Description**: Technical summary, max 5 words. Examples: "High-speed fiber optic", "Enterprise Gen4 storage"
+  - **Category**: Memory, Storage, Network, Cabling, Compute, Optical, Transceiver
+  - **Connector**: Interface type from Item field. Examples: "LC-LC", "RJ45", "U.3"
+  - **Size**: **HUMAN-READABLE capacity or length.** Examples: "1.6TB", "256GB", "5m" (NOT "1600GB")
+  - **Color**: Physical color if distinguishing
+  - **PartNr**: Part number only (no serial numbers)
+  - **OCR**: Robust matching key for OCR tolerance
+
+  ## OCR Field Rules (CRITICAL)
+  Generate a SHORT, clean matching key:
+  - Format: **UPPERCASE space-separated, NO special chars, NO duplicates**
+  - Include ONLY: Type + Size + Primary Vendor + Connector + Part Number
+  - **EXCLUDE**: Serial numbers, secondary vendors, duplicate tokens, EMC/SK labels
+  - **USE HUMAN-READABLE SIZE**: Use TB/GB from Item field, not original notation
+
+  **OCR Format:** `TYPE SIZE VENDOR CONNECTOR PARTNUMBER`
+
+  **OCR Examples (WITH HUMAN-READABLE SIZES):**
+  - Item: `1.6TB NVMe HPE U.3 P66093-002` → OCR: `NVME 1.6TB HPE U3 P66093002`
+  - Item: `5m Patchcord LC-LC` → OCR: `PATCHCORD 5M LC LC`
+  - Item: `256GB SSD Samsung SAS SK-8765` → OCR: `SSD 256GB SAMSUNG SAS SK8765`
+  - Item: `128GB DDR4 Hynix` → OCR: `DDR4 128GB HYNIX`
+
+  **OCR Constraints:**
+  - NO duplicate part numbers
+  - NO secondary vendor names
+  - NO extraneous labels
+  - Each token appears ONE time only
+  - Remove hyphens/special chars for fuzzy matching
+  - Use HUMAN-READABLE sizes (1.6TB not 1600GB)
+
+  ## Output Format
+  ```json
+  {
+    "items": [
+      {
+        "Item": "[size] type vendor connector partnumber",
+        "Type": "type",
+        "Description": "technical details (max 5 words)",
+        "Category": "category",
+        "Connector": "connector_type",
+        "Size": "human_readable_size",
+        "Color": "color",
+        "PartNr": "part_number",
+        "OCR": "TYPE SIZE VENDOR CONNECTOR PARTNUMBER"
+      }
+    ]
+  }
+
+  Return ONLY JSON. No markdown. No text.