diff --git a/frontend/e2e/workflows/7-ai-extraction-autosave.spec.ts b/frontend/e2e/workflows/7-ai-extraction-autosave.spec.ts
new file mode 100644
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+++ b/frontend/e2e/workflows/7-ai-extraction-autosave.spec.ts
@@ -0,0 +1,327 @@
+import { test, expect } from '@playwright/test';
+import * as auth from '../fixtures/auth';
+import * as assertions from '../utils/assertions';
+import * as helpers from '../utils/helpers';
+import { LOCAL_USERS } from '../fixtures/test-data';
+
+test.describe('AI Extraction + Auto-Photo-Save Flow', () => {
+  const BASE_URL = process.env.BASE_URL || 'http://localhost:8917';
+
+  test.beforeEach(async ({ page }) => {
+    // Navigate to app and login
+    await page.goto(BASE_URL);
+    await auth.loginWithLocalUser(page, LOCAL_USERS.admin, BASE_URL);
+    await assertions.assertUserAuthenticated(page, BASE_URL);
+
+    // Navigate to new item creation (AI extraction)
+    await page.goto(`${BASE_URL}/inventory/new`);
+
+    // Wait for AI wizard to be ready
+    const aiWizard = page.locator('[data-testid="ai-onboarding-wizard"]');
+    await expect(aiWizard).toBeVisible({ timeout: 5000 });
+  });
+
+  test('should auto-save photo after successful AI identification and item creation', async ({
+    page,
+  }) => {
+    // 1. Click capture button to trigger AI extraction
+    const captureButton = page.locator('[data-testid="capture-button"]');
+    await expect(captureButton).toBeVisible();
+    await captureButton.click();
+
+    // 2. Wait for AI extraction to complete and show results
+    const resultsForm = page.locator('[data-testid="extraction-results-form"]');
+    await expect(resultsForm).toBeVisible({ timeout: 15000 });
+
+    // 3. Verify extracted data is shown
+    const nameField = page.locator('[data-testid="extracted-name"]');
+    await expect(nameField).toBeVisible();
+    const extractedName = await nameField.inputValue();
+    expect(extractedName).toBeTruthy();
+    expect(extractedName.length).toBeGreaterThan(0);
+
+    // 4. Confirm extraction to create item
+    const confirmButton = page.locator('[data-testid="confirm-extraction"]');
+    await confirmButton.click();
+
+    // 5. Wait for success toast and item creation
+    const successToast = page.locator('[data-testid="toast-success"]');
+    await expect(successToast).toBeVisible({ timeout: 10000 });
+
+    // Verify toast contains success message about item creation
+    const toastText = await successToast.textContent();
+    expect(toastText?.toLowerCase()).toContain('created');
+
+    // 6. Wait for redirect to inventory
+    await page.waitForURL(/inventory|items/, { timeout: 10000 });
+
+    // 7. Navigate to inventory to verify photo appears
+    await page.goto(`${BASE_URL}/inventory`);
+    const inventoryTable = page.locator('[data-testid="inventory-table"]');
+    await expect(inventoryTable).toBeVisible({ timeout: 5000 });
+
+    // 8. Get the first item row (should be the newly created item)
+    const firstItemRow = inventoryTable.locator('tbody tr').first();
+    await expect(firstItemRow).toBeVisible();
+
+    // 9. Verify photo thumbnail is present
+    const photoThumbnail = firstItemRow.locator('[data-testid="item-photo-thumbnail"]');
+    await expect(photoThumbnail).toBeVisible({ timeout: 5000 });
+
+    // 10. Click photo to open modal and verify full-res photo
+    await photoThumbnail.click();
+
+    const photoModal = page.locator('[data-testid="photo-modal"]');
+    await expect(photoModal).toBeVisible({ timeout: 5000 });
+
+    const fullPhoto = photoModal.locator('img');
+    await expect(fullPhoto).toBeVisible();
+
+    // Verify the image has a valid src attribute (should contain /photos/ path)
+    const imgSrc = await fullPhoto.getAttribute('src');
+    expect(imgSrc).toBeTruthy();
+    expect(imgSrc).toMatch(/\/photos\/|\/images\/|data:image/);
+
+    // 11. Close modal by clicking outside or close button
+    const closeButton = photoModal.locator('[data-testid="modal-close"]');
+    if (await closeButton.isVisible()) {
+      await closeButton.click();
+    } else {
+      // Click outside the modal
+      await page.click('[data-testid="photo-modal-backdrop"]');
+    }
+
+    await expect(photoModal).not.toBeVisible({ timeout: 3000 });
+  });
+
+  test('should display photo metadata in inventory after auto-save', async ({ page }) => {
+    // 1. Capture and extract
+    const captureButton = page.locator('[data-testid="capture-button"]');
+    await captureButton.click();
+
+    const resultsForm = page.locator('[data-testid="extraction-results-form"]');
+    await expect(resultsForm).toBeVisible({ timeout: 15000 });
+
+    // 2. Confirm extraction
+    const confirmButton = page.locator('[data-testid="confirm-extraction"]');
+    await confirmButton.click();
+
+    const successToast = page.locator('[data-testid="toast-success"]');
+    await expect(successToast).toBeVisible({ timeout: 10000 });
+
+    await page.waitForURL(/inventory|items/, { timeout: 10000 });
+
+    // 3. Navigate to inventory
+    await page.goto(`${BASE_URL}/inventory`);
+    const inventoryTable = page.locator('[data-testid="inventory-table"]');
+    await expect(inventoryTable).toBeVisible({ timeout: 5000 });
+
+    // 4. Find the newly created item row
+    const firstItemRow = inventoryTable.locator('tbody tr').first();
+    await expect(firstItemRow).toBeVisible();
+
+    // 5. Verify photo column shows photo indicator or date
+    const photoCell = firstItemRow.locator('[data-testid="item-photo-cell"]');
+    if (await photoCell.isVisible()) {
+      const photoIndicator = photoCell.locator('[data-testid="item-photo-thumbnail"]');
+      await expect(photoIndicator).toBeVisible();
+
+      // Verify photo has visual indication (image or icon)
+      const hasImage = await photoIndicator.locator('img').isVisible();
+      const hasIcon = await photoIndicator.locator('[role="img"]').isVisible();
+      expect(hasImage || hasIcon).toBe(true);
+    }
+  });
+
+  test('should handle photo upload failure gracefully without blocking item creation', async ({
+    page,
+  }) => {
+    // Mock photo upload to fail
+    await page.route('**/items/*/photos', (route) => {
+      route.abort('failed');
+    });
+
+    // 1. Capture and extract
+    const captureButton = page.locator('[data-testid="capture-button"]');
+    await captureButton.click();
+
+    const resultsForm = page.locator('[data-testid="extraction-results-form"]');
+    await expect(resultsForm).toBeVisible({ timeout: 15000 });
+
+    // 2. Confirm extraction (photo upload will fail, but item should still be created)
+    const confirmButton = page.locator('[data-testid="confirm-extraction"]');
+    await confirmButton.click();
+
+    // 3. Should show success for item creation (despite photo save failure)
+    const successToast = page.locator('[data-testid="toast-success"]');
+    await expect(successToast).toBeVisible({ timeout: 10000 });
+
+    const toastText = await successToast.textContent();
+    expect(toastText?.toLowerCase()).toContain('created');
+
+    // 4. Should NOT show critical error blocking the operation
+    const errorToast = page.locator('[data-testid="toast-error"]');
+    const isErrorVisible = await errorToast.isVisible().catch(() => false);
+    // Error about photo might be shown as warning, not blocking error
+    expect(isErrorVisible).toBe(false);
+
+    await page.waitForURL(/inventory|items/, { timeout: 10000 });
+
+    // 5. Navigate to inventory
+    await page.goto(`${BASE_URL}/inventory`);
+    const inventoryTable = page.locator('[data-testid="inventory-table"]');
+    await expect(inventoryTable).toBeVisible({ timeout: 5000 });
+
+    // 6. Verify item still exists without photo
+    const firstItemRow = inventoryTable.locator('tbody tr').first();
+    await expect(firstItemRow).toBeVisible();
+
+    // Photo should be absent or show placeholder
+    const photoThumbnail = firstItemRow.locator('[data-testid="item-photo-thumbnail"]');
+    const photoVisible = await photoThumbnail.isVisible().catch(() => false);
+    // Photo might not be visible or might show placeholder
+    expect(photoVisible).toBe(false);
+  });
+
+  test('should preserve photo even when item data is edited post-save', async ({ page }) => {
+    // 1. Capture and extract
+    const captureButton = page.locator('[data-testid="capture-button"]');
+    await captureButton.click();
+
+    const resultsForm = page.locator('[data-testid="extraction-results-form"]');
+    await expect(resultsForm).toBeVisible({ timeout: 15000 });
+
+    // 2. Get the extracted name for later verification
+    const nameField = page.locator('[data-testid="extracted-name"]');
+    const originalName = await nameField.inputValue();
+
+    // 3. Confirm extraction
+    const confirmButton = page.locator('[data-testid="confirm-extraction"]');
+    await confirmButton.click();
+
+    const successToast = page.locator('[data-testid="toast-success"]');
+    await expect(successToast).toBeVisible({ timeout: 10000 });
+
+    await page.waitForURL(/inventory|items/, { timeout: 10000 });
+
+    // 4. Navigate to inventory
+    await page.goto(`${BASE_URL}/inventory`);
+    const inventoryTable = page.locator('[data-testid="inventory-table"]');
+    await expect(inventoryTable).toBeVisible({ timeout: 5000 });
+
+    // 5. Verify photo exists before editing
+    const firstItemRow = inventoryTable.locator('tbody tr').first();
+    const photoThumbnail = firstItemRow.locator('[data-testid="item-photo-thumbnail"]');
+    await expect(photoThumbnail).toBeVisible({ timeout: 5000 });
+
+    // 6. Click on item to open details/edit page
+    const itemName = firstItemRow.locator('[data-testid="item-name"]');
+    await itemName.click();
+
+    await page.waitForURL(/items\/\d+|inventory\/edit/, { timeout: 10000 });
+
+    // 7. Find and verify photo is still visible on detail page
+    const detailPhotoThumbnail = page.locator('[data-testid="item-photo-thumbnail"]');
+    await expect(detailPhotoThumbnail).toBeVisible({ timeout: 5000 });
+
+    // 8. Edit a field (e.g., quantity)
+    const quantityField = page.locator('[data-testid="item-quantity"]');
+    if (await quantityField.isVisible()) {
+      await quantityField.fill('100');
+
+      // Save changes
+      const saveButton = page.locator('[data-testid="save-item-button"]');
+      if (await saveButton.isVisible()) {
+        await saveButton.click();
+
+        const updateToast = page.locator('[data-testid="toast-success"]');
+        await expect(updateToast).toBeVisible({ timeout: 5000 });
+      }
+    }
+
+    // 9. Verify photo still exists after edit
+    const photoAfterEdit = page.locator('[data-testid="item-photo-thumbnail"]');
+    await expect(photoAfterEdit).toBeVisible({ timeout: 5000 });
+  });
+
+  test('should display photo with correct dimensions in modal', async ({ page }) => {
+    // 1. Capture and extract
+    const captureButton = page.locator('[data-testid="capture-button"]');
+    await captureButton.click();
+
+    const resultsForm = page.locator('[data-testid="extraction-results-form"]');
+    await expect(resultsForm).toBeVisible({ timeout: 15000 });
+
+    // 2. Confirm extraction
+    const confirmButton = page.locator('[data-testid="confirm-extraction"]');
+    await confirmButton.click();
+
+    const successToast = page.locator('[data-testid="toast-success"]');
+    await expect(successToast).toBeVisible({ timeout: 10000 });
+
+    await page.waitForURL(/inventory|items/, { timeout: 10000 });
+
+    // 3. Navigate to inventory
+    await page.goto(`${BASE_URL}/inventory`);
+    const inventoryTable = page.locator('[data-testid="inventory-table"]');
+    await expect(inventoryTable).toBeVisible({ timeout: 5000 });
+
+    // 4. Click photo to open modal
+    const firstItemRow = inventoryTable.locator('tbody tr').first();
+    const photoThumbnail = firstItemRow.locator('[data-testid="item-photo-thumbnail"]');
+    await photoThumbnail.click();
+
+    const photoModal = page.locator('[data-testid="photo-modal"]');
+    await expect(photoModal).toBeVisible({ timeout: 5000 });
+
+    // 5. Verify image is properly rendered
+    const fullPhoto = photoModal.locator('img');
+    await expect(fullPhoto).toBeVisible();
+
+    // 6. Check image dimensions (should be reasonable)
+    const boundingBox = await fullPhoto.boundingBox();
+    expect(boundingBox).toBeTruthy();
+    expect(boundingBox!.width).toBeGreaterThan(0);
+    expect(boundingBox!.height).toBeGreaterThan(0);
+
+    // 7. Verify modal has proper layout (image shouldn't be distorted)
+    const photoContainer = photoModal.locator('[data-testid="photo-container"]');
+    if (await photoContainer.isVisible()) {
+      const containerBox = await photoContainer.boundingBox();
+      expect(containerBox).toBeTruthy();
+      // Image should fit within reasonable bounds
+      expect(containerBox!.width).toBeLessThan(1000);
+      expect(containerBox!.height).toBeLessThan(1000);
+    }
+  });
+
+  test('should not show duplicate photos for same item', async ({ page }) => {
+    // 1. Create item with photo
+    const captureButton = page.locator('[data-testid="capture-button"]');
+    await captureButton.click();
+
+    const resultsForm = page.locator('[data-testid="extraction-results-form"]');
+    await expect(resultsForm).toBeVisible({ timeout: 15000 });
+
+    const confirmButton = page.locator('[data-testid="confirm-extraction"]');
+    await confirmButton.click();
+
+    const successToast = page.locator('[data-testid="toast-success"]');
+    await expect(successToast).toBeVisible({ timeout: 10000 });
+
+    await page.waitForURL(/inventory|items/, { timeout: 10000 });
+
+    // 2. Navigate to inventory
+    await page.goto(`${BASE_URL}/inventory`);
+    const inventoryTable = page.locator('[data-testid="inventory-table"]');
+    await expect(inventoryTable).toBeVisible({ timeout: 5000 });
+
+    // 3. Verify only one photo thumbnail per item
+    const firstItemRow = inventoryTable.locator('tbody tr').first();
+    const photoThumbnails = firstItemRow.locator('[data-testid="item-photo-thumbnail"]');
+    const photoCount = await photoThumbnails.count();
+
+    // Should have exactly 1 photo (or 0 if photo save failed)
+    expect(photoCount).toBeLessThanOrEqual(1);
+  });
+});