diff --git a/.claude/settings.local.json b/.claude/settings.local.json
index a85c9b69..45d71400 100644
--- a/.claude/settings.local.json
+++ b/.claude/settings.local.json
@@ -91,7 +91,8 @@
       "Bash(curl -k -s https://192.168.84.131:8918/users/)",
       "Bash(grep -E \"\\\\.\\(tsx|ts|jsx|js\\)$\")",
       "Bash(pkill -9 -f uvicorn)",
-      "Bash(grep -E \"\\\\.\\(py|txt\\)$\")"
+      "Bash(grep -E \"\\\\.\\(py|txt\\)$\")",
+      "Bash(npx vitest *)"
     ]
   }
 }
diff --git a/frontend/hooks/useItemCreate.ts b/frontend/hooks/useItemCreate.ts
index 4d2fc420..c418366e 100644
--- a/frontend/hooks/useItemCreate.ts
+++ b/frontend/hooks/useItemCreate.ts
@@ -1,4 +1,5 @@
 import { useState, useCallback } from 'react';
+import toast from 'react-hot-toast';
 import { inventoryApi } from '@/lib/api';
 import { CropBounds } from './useCropHandles';
 
@@ -10,6 +11,12 @@ interface ItemFormData {
   barcode?: string;
   part_number?: string;
   box_label?: string;
+  extractedImageBlob?: Blob;
+  imageProcessing?: {
+    crop_bounds?: { x: number; y: number; width: number; height: number };
+    rotation_degrees?: number;
+    confidence?: number;
+  };
 }
 
 interface UploadedPhoto {
@@ -151,8 +158,11 @@ export function useItemCreate(): UseItemCreateReturn {
           return undefined;
         }
 
+        // Extract image data if provided
+        const { extractedImageBlob, imageProcessing, ...itemData } = formData;
+
         // Create item first (without photo)
-        const createdItem = await inventoryApi.createItem(userId, formData);
+        const createdItem = await inventoryApi.createItem(userId, itemData);
 
         if (!createdItem.id) {
           const errorMsg = 'Failed to create item';
@@ -162,6 +172,33 @@ export function useItemCreate(): UseItemCreateReturn {
         }
 
         setItemId(createdItem.id);
+
+        // AUTO-UPLOAD PHOTO if we have both extractedImageBlob and imageProcessing
+        if (extractedImageBlob && imageProcessing && createdItem.id) {
+          try {
+            const formDataUpload = new FormData();
+            formDataUpload.append('file', extractedImageBlob);
+
+            // If crop bounds are set, add them to the request
+            if (imageProcessing.crop_bounds) {
+              const cropBoundsStr = JSON.stringify(imageProcessing.crop_bounds);
+              formDataUpload.append('crop_bounds', cropBoundsStr);
+            }
+
+            await inventoryApi.uploadItemPhoto(createdItem.id, formDataUpload);
+
+            toast.success('Item created + photo saved');
+          } catch (photoErr) {
+            console.warn('Photo upload failed, but item created:', photoErr);
+            toast.warning('Item created (photo upload skipped)');
+          }
+        } else if (extractedImageBlob || imageProcessing) {
+          // Only one of the two is provided, so skip photo upload
+          toast.success('Item created');
+        } else {
+          toast.success('Item created');
+        }
+
         setIsLoading(false);
 
         return createdItem;
diff --git a/frontend/tests/hooks/useItemCreate.test.ts b/frontend/tests/hooks/useItemCreate.test.ts
new file mode 100644
index 00000000..a5d2e004
--- /dev/null
+++ b/frontend/tests/hooks/useItemCreate.test.ts
@@ -0,0 +1,433 @@
+import { renderHook, act } from '@testing-library/react';
+import * as toast from 'react-hot-toast';
+import { useItemCreate } from '@/hooks/useItemCreate';
+import { inventoryApi } from '@/lib/api';
+
+vi.mock('react-hot-toast');
+vi.mock('@/lib/api');
+
+describe('useItemCreate - Auto-Upload Photo After Item Creation', () => {
+  beforeEach(() => {
+    vi.clearAllMocks();
+  });
+
+  describe('submitItem with auto-upload', () => {
+    it('should auto-upload photo after item creation if image_processing provided', async () => {
+      const { result } = renderHook(() => useItemCreate());
+
+      const mockBlob = new Blob(['test'], { type: 'image/jpeg' });
+      const mockImageProcessing = {
+        crop_bounds: { x: 10, y: 20, width: 100, height: 100 },
+        rotation_degrees: 0,
+        confidence: 0.95,
+      };
+
+      const mockCreatedItem = { id: 123, name: 'Test Item' };
+
+      (inventoryApi.createItem as any).mockResolvedValue(mockCreatedItem);
+      (inventoryApi.uploadItemPhoto as any).mockResolvedValue({
+        status: 'ok',
+        photo: {
+          thumbnail_url: 'https://example.com/thumb.jpg',
+          full_url: 'https://example.com/full.jpg',
+          uploaded_at: '2026-04-21T10:00:00Z',
+        },
+      });
+
+      // Set form data with image data
+      act(() => {
+        result.current.setFormData({
+          name: 'Test Item',
+          category: 'Electronics',
+          item_type: 'Widget',
+          quantity: 5,
+          extractedImageBlob: mockBlob,
+          imageProcessing: mockImageProcessing,
+        });
+      });
+
+      // Submit item
+      const createdItem = await act(async () => {
+        return result.current.submitItem(1);
+      });
+
+      // Verify item was created (without image fields)
+      const createCall = (inventoryApi.createItem as any).mock.calls[0];
+      expect(createCall[0]).toBe(1);
+      expect(createCall[1]).not.toHaveProperty('extractedImageBlob');
+      expect(createCall[1]).not.toHaveProperty('imageProcessing');
+      expect(createCall[1].name).toBe('Test Item');
+      expect(createCall[1].category).toBe('Electronics');
+      expect(createCall[1].item_type).toBe('Widget');
+      expect(createCall[1].quantity).toBe(5);
+
+      // Verify photo was uploaded with correct parameters
+      expect(inventoryApi.uploadItemPhoto).toHaveBeenCalled();
+      const uploadCall = (inventoryApi.uploadItemPhoto as any).mock.calls[0];
+      expect(uploadCall[0]).toBe(123); // itemId
+      expect(uploadCall[1]).toBeInstanceOf(FormData); // formData
+
+      // Check FormData contents (FormData.get returns File, not Blob)
+      const formDataUpload = uploadCall[1];
+      const uploadedFile = formDataUpload.get('file');
+      expect(uploadedFile).toBeInstanceOf(Blob);
+      expect(uploadedFile?.type).toBe('image/jpeg');
+      expect(formDataUpload.get('crop_bounds')).toBe(
+        JSON.stringify(mockImageProcessing.crop_bounds)
+      );
+
+      // Verify item was returned
+      expect(createdItem).toEqual(mockCreatedItem);
+    });
+
+    it('should skip photo upload if image_processing missing', async () => {
+      const { result } = renderHook(() => useItemCreate());
+
+      const mockBlob = new Blob(['test'], { type: 'image/jpeg' });
+      const mockCreatedItem = { id: 123, name: 'Test Item' };
+
+      (inventoryApi.createItem as any).mockResolvedValue(mockCreatedItem);
+
+      // Set form data with ONLY image blob (no imageProcessing)
+      act(() => {
+        result.current.setFormData({
+          name: 'Test Item',
+          category: 'Electronics',
+          item_type: 'Widget',
+          quantity: 5,
+          extractedImageBlob: mockBlob,
+          // imageProcessing NOT provided
+        });
+      });
+
+      // Submit item
+      const createdItem = await act(async () => {
+        return result.current.submitItem(1);
+      });
+
+      // Verify photo upload was NOT called
+      expect(inventoryApi.uploadItemPhoto).not.toHaveBeenCalled();
+
+      // Verify item was created
+      expect(createdItem).toEqual(mockCreatedItem);
+    });
+
+    it('should skip photo upload if extractedImageBlob missing', async () => {
+      const { result } = renderHook(() => useItemCreate());
+
+      const mockImageProcessing = {
+        crop_bounds: { x: 10, y: 20, width: 100, height: 100 },
+        rotation_degrees: 0,
+        confidence: 0.95,
+      };
+
+      const mockCreatedItem = { id: 123, name: 'Test Item' };
+
+      (inventoryApi.createItem as any).mockResolvedValue(mockCreatedItem);
+
+      // Set form data with ONLY imageProcessing (no blob)
+      act(() => {
+        result.current.setFormData({
+          name: 'Test Item',
+          category: 'Electronics',
+          item_type: 'Widget',
+          quantity: 5,
+          // extractedImageBlob NOT provided
+          imageProcessing: mockImageProcessing,
+        });
+      });
+
+      // Submit item
+      const createdItem = await act(async () => {
+        return result.current.submitItem(1);
+      });
+
+      // Verify photo upload was NOT called
+      expect(inventoryApi.uploadItemPhoto).not.toHaveBeenCalled();
+
+      // Verify item was created
+      expect(createdItem).toEqual(mockCreatedItem);
+    });
+
+    it('should handle photo upload failure gracefully (item already created)', async () => {
+      const { result } = renderHook(() => useItemCreate());
+
+      const mockBlob = new Blob(['test'], { type: 'image/jpeg' });
+      const mockImageProcessing = {
+        crop_bounds: { x: 10, y: 20, width: 100, height: 100 },
+        rotation_degrees: 0,
+        confidence: 0.95,
+      };
+
+      const mockCreatedItem = { id: 123, name: 'Test Item' };
+
+      (inventoryApi.createItem as any).mockResolvedValue(mockCreatedItem);
+      (inventoryApi.uploadItemPhoto as any).mockRejectedValue(
+        new Error('Network error')
+      );
+
+      // Set form data with image data
+      act(() => {
+        result.current.setFormData({
+          name: 'Test Item',
+          category: 'Electronics',
+          item_type: 'Widget',
+          quantity: 5,
+          extractedImageBlob: mockBlob,
+          imageProcessing: mockImageProcessing,
+        });
+      });
+
+      // Submit item
+      await act(async () => {
+        return result.current.submitItem(1);
+      });
+
+      // Verify item was created despite photo upload failure
+      expect(inventoryApi.createItem).toHaveBeenCalled();
+      expect(inventoryApi.uploadItemPhoto).toHaveBeenCalled();
+
+      // Photo upload error doesn't prevent item creation
+      // The key behavior is that both API calls happen:
+      // 1. createItem succeeds
+      // 2. uploadItemPhoto fails gracefully (doesn't throw)
+    });
+
+    it('should not auto-upload if neither blob nor imageProcessing provided', async () => {
+      const { result } = renderHook(() => useItemCreate());
+
+      const mockCreatedItem = { id: 123, name: 'Test Item' };
+
+      (inventoryApi.createItem as any).mockResolvedValue(mockCreatedItem);
+
+      // Set form data WITHOUT image data
+      act(() => {
+        result.current.setFormData({
+          name: 'Test Item',
+          category: 'Electronics',
+          item_type: 'Widget',
+          quantity: 5,
+        });
+      });
+
+      // Submit item
+      const createdItem = await act(async () => {
+        return result.current.submitItem(1);
+      });
+
+      // Verify photo upload was NOT called
+      expect(inventoryApi.uploadItemPhoto).not.toHaveBeenCalled();
+
+      // Verify item was created
+      expect(createdItem).toEqual(mockCreatedItem);
+    });
+
+    it('should extract image fields from formData and exclude from item creation', async () => {
+      const { result } = renderHook(() => useItemCreate());
+
+      const mockBlob = new Blob(['test'], { type: 'image/jpeg' });
+      const mockImageProcessing = {
+        crop_bounds: { x: 10, y: 20, width: 100, height: 100 },
+        rotation_degrees: 0,
+        confidence: 0.95,
+      };
+
+      const mockCreatedItem = { id: 123, name: 'Test Item' };
+
+      (inventoryApi.createItem as any).mockResolvedValue(mockCreatedItem);
+      (inventoryApi.uploadItemPhoto as any).mockResolvedValue({
+        status: 'ok',
+      });
+
+      // Set form data with image data
+      act(() => {
+        result.current.setFormData({
+          name: 'Test Item',
+          category: 'Electronics',
+          item_type: 'Widget',
+          quantity: 5,
+          barcode: '123456',
+          extractedImageBlob: mockBlob,
+          imageProcessing: mockImageProcessing,
+        });
+      });
+
+      // Submit item
+      await act(async () => {
+        return result.current.submitItem(1);
+      });
+
+      // Verify createItem was called WITHOUT image fields
+      const createCall = (inventoryApi.createItem as any).mock.calls[0];
+      expect(createCall[0]).toBe(1);
+      expect(createCall[1]).not.toHaveProperty('extractedImageBlob');
+      expect(createCall[1]).not.toHaveProperty('imageProcessing');
+      expect(createCall[1].name).toBe('Test Item');
+      expect(createCall[1].category).toBe('Electronics');
+      expect(createCall[1].item_type).toBe('Widget');
+      expect(createCall[1].quantity).toBe(5);
+      expect(createCall[1].barcode).toBe('123456');
+    });
+
+    it('should pass crop_bounds to uploadItemPhoto if present', async () => {
+      const { result } = renderHook(() => useItemCreate());
+
+      const mockBlob = new Blob(['test'], { type: 'image/jpeg' });
+      const mockImageProcessing = {
+        crop_bounds: { x: 50, y: 100, width: 200, height: 200 },
+        rotation_degrees: 90,
+        confidence: 0.87,
+      };
+
+      const mockCreatedItem = { id: 456, name: 'Test Item' };
+
+      (inventoryApi.createItem as any).mockResolvedValue(mockCreatedItem);
+      (inventoryApi.uploadItemPhoto as any).mockResolvedValue({
+        status: 'ok',
+      });
+
+      // Set form data with image data
+      act(() => {
+        result.current.setFormData({
+          name: 'Test Item',
+          category: 'Electronics',
+          item_type: 'Widget',
+          quantity: 5,
+          extractedImageBlob: mockBlob,
+          imageProcessing: mockImageProcessing,
+        });
+      });
+
+      // Submit item
+      await act(async () => {
+        return result.current.submitItem(1);
+      });
+
+      // Verify crop_bounds were passed
+      const uploadCall = (inventoryApi.uploadItemPhoto as any).mock.calls[0];
+      const formDataUpload = uploadCall[1];
+      expect(formDataUpload.get('crop_bounds')).toBe(
+        JSON.stringify(mockImageProcessing.crop_bounds)
+      );
+    });
+
+    it('should skip crop_bounds if not in imageProcessing', async () => {
+      const { result } = renderHook(() => useItemCreate());
+
+      const mockBlob = new Blob(['test'], { type: 'image/jpeg' });
+      const mockImageProcessing = {
+        rotation_degrees: 0,
+        confidence: 0.95,
+        // crop_bounds NOT provided
+      };
+
+      const mockCreatedItem = { id: 789, name: 'Test Item' };
+
+      (inventoryApi.createItem as any).mockResolvedValue(mockCreatedItem);
+      (inventoryApi.uploadItemPhoto as any).mockResolvedValue({
+        status: 'ok',
+      });
+
+      // Set form data with image data
+      act(() => {
+        result.current.setFormData({
+          name: 'Test Item',
+          category: 'Electronics',
+          item_type: 'Widget',
+          quantity: 5,
+          extractedImageBlob: mockBlob,
+          imageProcessing: mockImageProcessing,
+        });
+      });
+
+      // Submit item
+      await act(async () => {
+        return result.current.submitItem(1);
+      });
+
+      // Verify crop_bounds were NOT passed
+      const uploadCall = (inventoryApi.uploadItemPhoto as any).mock.calls[0];
+      const formDataUpload = uploadCall[1];
+      expect(formDataUpload.get('crop_bounds')).toBeNull();
+    });
+  });
+
+  describe('existing submitItem functionality (non-photo flow)', () => {
+    it('should validate required fields on item creation', async () => {
+      const { result } = renderHook(() => useItemCreate());
+
+      // Set form data with missing category
+      act(() => {
+        result.current.setFormData({
+          name: 'Test Item',
+          category: '',
+          item_type: 'Widget',
+          quantity: 5,
+        });
+      });
+
+      // Submit item
+      const createdItem = await act(async () => {
+        return result.current.submitItem(1);
+      });
+
+      // Verify validation failed
+      expect(inventoryApi.createItem).not.toHaveBeenCalled();
+      expect(result.current.error).toBe('Category is required');
+      expect(createdItem).toBeUndefined();
+    });
+
+    it('should handle item creation API errors', async () => {
+      const { result } = renderHook(() => useItemCreate());
+
+      (inventoryApi.createItem as any).mockRejectedValue(
+        new Error('Server error')
+      );
+
+      // Set form data
+      act(() => {
+        result.current.setFormData({
+          name: 'Test Item',
+          category: 'Electronics',
+          item_type: 'Widget',
+          quantity: 5,
+        });
+      });
+
+      // Submit item
+      const createdItem = await act(async () => {
+        return result.current.submitItem(1);
+      });
+
+      // Verify error was set
+      expect(result.current.error).toBe('Server error');
+      expect(createdItem).toBeUndefined();
+    });
+
+    it('should set itemId when item creation succeeds', async () => {
+      const { result } = renderHook(() => useItemCreate());
+
+      const mockCreatedItem = { id: 999, name: 'Test Item' };
+
+      (inventoryApi.createItem as any).mockResolvedValue(mockCreatedItem);
+
+      // Set form data
+      act(() => {
+        result.current.setFormData({
+          name: 'Test Item',
+          category: 'Electronics',
+          item_type: 'Widget',
+          quantity: 5,
+        });
+      });
+
+      // Submit item
+      const createdItem = await act(async () => {
+        return result.current.submitItem(1);
+      });
+
+      // Verify itemId is now set (used for photo uploads)
+      expect(createdItem).toEqual(mockCreatedItem);
+    });
+  });
+});