diff --git a/apps/api/src/__tests__/conversations.test.ts b/apps/api/src/__tests__/conversations.test.ts
new file mode 100644
index 0000000..1ee4ed7
--- /dev/null
+++ b/apps/api/src/__tests__/conversations.test.ts
@@ -0,0 +1,317 @@
+import { describe, it, expect, vi, beforeEach } from "vitest";
+import { Hono } from "hono";
+
+// ─── Mock data ────────────────────────────────────────────────────────────────
+
+const STAFF_ROW = {
+  id: "staff-uuid-1",
+  email: "groomer@groombook.com",
+  name: "Groomer",
+  role: "groomer" as const,
+  businessId: "business-uuid-1",
+  active: true,
+  userId: null,
+  oidcSub: null,
+  isSuperUser: false,
+  icalToken: null,
+  createdAt: new Date(),
+  updatedAt: new Date(),
+};
+
+const BUSINESS_SETTINGS = {
+  id: "business-uuid-1",
+  businessName: "Test Salon",
+};
+
+const CONV_1 = {
+  id: "conv-uuid-1",
+  businessId: "business-uuid-1",
+  clientId: "client-uuid-1",
+  channel: "sms",
+  externalNumber: "+15551111111",
+  businessNumber: "+15552222222",
+  lastMessageAt: new Date("2025-01-10T10:00:00Z"),
+  status: "active",
+  createdAt: new Date("2025-01-01T00:00:00Z"),
+  updatedAt: new Date("2025-01-10T10:00:00Z"),
+  staffReadAt: null,
+};
+
+const MSG_INBOUND_1 = {
+  id: "msg-uuid-1",
+  conversationId: "conv-uuid-1",
+  direction: "inbound",
+  body: "Hello",
+  status: "delivered",
+  sentByStaffId: null,
+  createdAt: new Date("2025-01-10T09:00:00Z"),
+  deliveredAt: new Date("2025-01-10T09:01:00Z"),
+};
+
+const MSG_OUTBOUND_1 = {
+  id: "msg-uuid-2",
+  conversationId: "conv-uuid-1",
+  direction: "outbound",
+  body: "Hi Alice!",
+  status: "delivered",
+  sentByStaffId: "staff-uuid-1",
+  createdAt: new Date("2025-01-10T10:00:00Z"),
+  deliveredAt: new Date("2025-01-10T10:01:00Z"),
+};
+
+// ─── Queue-based mock DB ──────────────────────────────────────────────────────
+
+let selectRows: Record<string, unknown>[] = [];
+let selectRows2: Record<string, unknown>[] = [];
+let selectRows3: Record<string, unknown>[] = [];
+let updatedValues: Record<string, unknown>[] = [];
+let selectCallCount = 0;
+
+function resetMock() {
+  selectRows = [];
+  selectRows2 = [];
+  selectRows3 = [];
+  updatedValues = [];
+  selectCallCount = 0;
+}
+
+function resetAll() {
+  resetMock();
+  vi.clearAllMocks();
+}
+
+const mockSendMessage = vi.hoisted(() => vi.fn());
+
+vi.mock("@groombook/db", () => {
+  function makeChainable(data: unknown[]): unknown {
+    const arr = [...data];
+    const chain = new Proxy(arr, {
+      get(target, prop) {
+        if (prop === "where" || prop === "orderBy" || prop === "limit" || prop === "innerJoin") {
+          return () => chain;
+        }
+        if (prop === "from") {
+          return (table: unknown) => {
+            const tableName = (table as { _name?: string })._name;
+            const rows = tableName === "businessSettings" ? [BUSINESS_SETTINGS] : selectRows;
+            return makeChainable(rows);
+          };
+        }
+        // @ts-expect-error proxy
+        return target[prop];
+      },
+    });
+    return chain;
+  }
+
+  const conversations = new Proxy(
+    { _name: "conversations" },
+    { get: (t, p) => (p === "_name" ? "conversations" : { table: "conversations", column: p }) }
+  );
+
+  const messages = new Proxy(
+    { _name: "messages" },
+    { get: (t, p) => (p === "_name" ? "messages" : { table: "messages", column: p }) }
+  );
+
+  const clients = new Proxy(
+    { _name: "clients" },
+    { get: (t, p) => (p === "_name" ? "clients" : { table: "clients", column: p }) }
+  );
+
+  const businessSettings = new Proxy(
+    { _name: "businessSettings" },
+    { get: (t, p) => (p === "_name" ? "businessSettings" : { table: "businessSettings", column: p }) }
+  );
+
+  return {
+    getDb: () => ({
+      select: () => ({
+        from: (table: unknown) => {
+          const tableName = (table as { _name?: string })._name;
+          if (tableName === "businessSettings") return makeChainable([BUSINESS_SETTINGS]);
+          if (tableName === "messages") {
+            // Return selectRows3 if it has data (POST re-query), else cycle through selectRows/selectRows2
+            if (selectRows3.length > 0) {
+              return makeChainable(selectRows3);
+            }
+            if (selectCallCount === 0 || selectCallCount === 1) {
+              const rows = selectCallCount === 0 ? selectRows : selectRows2;
+              selectCallCount++;
+              return makeChainable(rows);
+            }
+            return makeChainable(selectRows);
+          }
+          return makeChainable(selectRows);
+        },
+      }),
+      update: () => ({
+        set: (vals: Record<string, unknown>) => ({
+          where: () => {
+            updatedValues.push(vals);
+            return { returning: () => [vals] };
+          },
+        }),
+      }),
+      insert: () => ({
+        values: (vals: Record<string, unknown>) => {
+          return { returning: () => [{ ...vals, id: "msg-uuid-new" }] };
+        },
+      }),
+    }),
+    conversations,
+    messages,
+    clients,
+    businessSettings,
+    eq: vi.fn((a, b) => ({ type: "eq", a, b })),
+    and: vi.fn((...args) => ({ type: "and", args })),
+    desc: vi.fn((col) => ({ type: "desc", col })),
+    lt: vi.fn((a, b) => ({ type: "lt", a, b })),
+    sql: vi.fn(() => ({ __type: "sql" })),
+    isNull: vi.fn((col) => ({ type: "isNull", col })),
+  };
+});
+
+vi.mock("../services/messaging/outbound.js", () => ({
+  sendMessage: mockSendMessage,
+}));
+
+// ─── App setup ────────────────────────────────────────────────────────────────
+
+const { conversationsRouter } = await import("../routes/conversations.js");
+
+const app = new Hono();
+app.use("*", async (c, next) => {
+  // @ts-expect-error — test-only context injection
+  c.set("staff", STAFF_ROW);
+  await next();
+});
+app.route("/conversations", conversationsRouter);
+
+function jsonRequest(method: string, path: string, body?: unknown) {
+  return app.request(path, {
+    method,
+    headers: { "Content-Type": "application/json" },
+    body: body !== undefined ? JSON.stringify(body) : undefined,
+  });
+}
+
+beforeEach(() => resetAll());
+
+// ─── GET /conversations ───────────────────────────────────────────────────────
+
+describe("GET /api/conversations", () => {
+  it("returns conversations sorted by recency with unread count", async () => {
+    selectRows = [
+      { ...CONV_1, clientName: "Alice", clientPhone: "+15551111111", channel: "sms" },
+    ];
+    selectRows2 = [{ count: "1" }];
+    const res = await app.request("/conversations");
+    expect(res.status).toBe(200);
+    const body = await res.json();
+    expect(body.items).toHaveLength(1);
+    expect(body.items[0]!.id).toBe("conv-uuid-1");
+    expect(body.items[0]!.clientName).toBe("Alice");
+  });
+
+  it("supports cursor-based pagination", async () => {
+    selectRows = [];
+    const res = await app.request("/conversations?cursor=conv-uuid-1&limit=1");
+    expect(res.status).toBe(200);
+  });
+
+  it("enforces max limit of 50", async () => {
+    selectRows = [];
+    const res = await app.request("/conversations?limit=200");
+    expect(res.status).toBe(200);
+  });
+});
+
+// ─── GET /conversations/:id/messages ─────────────────────────────────────────
+
+describe("GET /api/conversations/:id/messages", () => {
+  it("returns paginated messages and marks conversation as read", async () => {
+    selectRows = [{ ...MSG_INBOUND_1 }, { ...MSG_OUTBOUND_1 }];
+    const res = await app.request("/conversations/conv-uuid-1/messages");
+    expect(res.status).toBe(200);
+    const body = await res.json();
+    expect(body.items).toHaveLength(2);
+    expect(body.items[0]!.id).toBe("msg-uuid-1");
+    expect(updatedValues.some((u) => u.staffReadAt !== undefined)).toBe(true);
+  });
+
+  it("returns 404 when conversation belongs to different business", async () => {
+    selectRows = [];
+    const res = await app.request("/conversations/conv-uuid-other/messages");
+    expect(res.status).toBe(404);
+  });
+
+  it("returns 401 when not authenticated", async () => {
+    const appNoAuth = new Hono();
+    appNoAuth.route("/conversations", conversationsRouter);
+    const res = await appNoAuth.request("/conversations/conv-uuid-1/messages");
+    expect(res.status).toBe(401);
+  });
+});
+
+// ─── POST /conversations/:id/messages ─────────────────────────────────────────
+
+describe("POST /api/conversations/:id/messages", () => {
+  beforeEach(() => {
+    resetMock();
+    vi.clearAllMocks();
+    selectRows = [{ ...CONV_1, clientName: "Alice", clientPhone: "+15551111111", channel: "sms" }];
+    selectRows2 = [];
+    selectRows3 = [{ id: "msg-uuid-new", conversationId: "conv-uuid-1", direction: "outbound" as const, body: "Hello Alice!", status: "queued" as const, sentByStaffId: "staff-uuid-1", createdAt: new Date(), deliveredAt: null }];
+    updatedValues = [];
+  });
+
+  it("sends via outbound service and returns 201", async () => {
+    mockSendMessage.mockResolvedValueOnce({
+      messageId: "msg-uuid-new",
+      providerMessageId: "provider-msg-1",
+      status: "queued",
+      suppressed: false,
+    });
+
+    const res = await jsonRequest("POST", "/conversations/conv-uuid-1/messages", {
+      body: "Hello Alice!",
+    });
+    expect(res.status).toBe(201);
+    const body = await res.json();
+    expect(body.id).toBe("msg-uuid-new");
+  });
+
+  it("returns 409 when client opted out", async () => {
+    mockSendMessage.mockResolvedValueOnce({ suppressed: true });
+
+    const res = await jsonRequest("POST", "/conversations/conv-uuid-1/messages", {
+      body: "Hello",
+    });
+    expect(res.status).toBe(409);
+    const body = await res.json();
+    expect(body.error).toMatch(/opted out/i);
+  });
+
+  it("returns 404 for cross-tenant conversation", async () => {
+    selectRows = [];
+    const res = await jsonRequest("POST", "/conversations/conv-uuid-other/messages", {
+      body: "Hello",
+    });
+    expect(res.status).toBe(404);
+  });
+
+  it("rejects empty body", async () => {
+    const res = await jsonRequest("POST", "/conversations/conv-uuid-1/messages", {
+      body: "",
+    });
+    expect(res.status).toBe(400);
+  });
+
+  it("rejects body over 1600 chars", async () => {
+    const res = await jsonRequest("POST", "/conversations/conv-uuid-1/messages", {
+      body: "a".repeat(1601),
+    });
+    expect(res.status).toBe(400);
+  });
+});
\ No newline at end of file
diff --git a/apps/api/src/index.ts b/apps/api/src/index.ts
index 4dfdb8c..b340c96 100644
--- a/apps/api/src/index.ts
+++ b/apps/api/src/index.ts
@@ -18,6 +18,7 @@ import { groomingLogsRouter } from "./routes/groomingLogs.js";
 import { impersonationRouter } from "./routes/impersonation.js";
 import { settingsRouter } from "./routes/settings.js";
 import { authProviderRouter } from "./routes/authProvider.js";
+import { conversationsRouter } from "./routes/conversations.js";
 import { searchRouter } from "./routes/search.js";
 import { getObject } from "./lib/s3.js";
 import { calendarRouter } from "./routes/calendar.js";
@@ -273,6 +274,7 @@ api.route("/admin/settings", settingsRouter);
 api.route("/admin/auth-provider", authProviderRouter);
 api.route("/admin/seed", adminSeedRouter);
 api.route("/search", searchRouter);
+api.route("/conversations", conversationsRouter);
 
 const port = Number(process.env.PORT ?? 3000);
 await initAuth();
diff --git a/apps/api/src/middleware/auth.ts b/apps/api/src/middleware/auth.ts
index 906f505..198f55b 100644
--- a/apps/api/src/middleware/auth.ts
+++ b/apps/api/src/middleware/auth.ts
@@ -23,7 +23,8 @@ if (process.env.AUTH_DISABLED === "true") {
 }
 
 export const authMiddleware: MiddlewareHandler = async (c, next) => {
-  if (c.req.path.startsWith("/api/auth/")) {
+  const path = c.req.path;
+  if (path.startsWith("/api/auth/") || path.startsWith("/api/webhooks/")) {
     await next();
     return;
   }
diff --git a/apps/api/src/routes/conversations.ts b/apps/api/src/routes/conversations.ts
new file mode 100644
index 0000000..0b8eddb
--- /dev/null
+++ b/apps/api/src/routes/conversations.ts
@@ -0,0 +1,274 @@
+import { Hono } from "hono";
+import { zValidator } from "@hono/zod-validator";
+import { z } from "zod/v3";
+import {
+  and,
+  eq,
+  desc,
+  lt,
+  sql,
+  getDb,
+  conversations,
+  messages,
+  clients,
+  businessSettings,
+} from "@groombook/db";
+import type { AppEnv } from "../middleware/rbac.js";
+import { sendMessage } from "../services/messaging/outbound.js";
+
+export const conversationsRouter = new Hono<AppEnv>();
+
+const sendMessageSchema = z.object({
+  body: z.string().min(1).max(1600),
+});
+
+// GET /api/conversations — List conversations
+conversationsRouter.get("/", async (c) => {
+  const db = getDb();
+  const staffRow = c.get("staff");
+  if (!staffRow) return c.json({ error: "Unauthorized" }, 401);
+
+  const [settings] = await db
+    .select({ id: businessSettings.id })
+    .from(businessSettings)
+    .limit(1);
+  if (!settings) return c.json({ error: "Business not found" }, 404);
+
+  const cursor = c.req.query("cursor") || undefined;
+  const limit = Math.min(Number(c.req.query("limit") || "20"), 50);
+
+  let baseQuery = db
+    .select({
+      id: conversations.id,
+      clientId: conversations.clientId,
+      lastMessageAt: conversations.lastMessageAt,
+      status: conversations.status,
+      staffReadAt: conversations.staffReadAt,
+      clientName: clients.name,
+      clientPhone: clients.phone,
+      channel: conversations.channel,
+    })
+    .from(conversations)
+    .innerJoin(clients, eq(conversations.clientId, clients.id))
+    .where(eq(conversations.businessId, settings.id))
+    .orderBy(desc(conversations.lastMessageAt))
+    .limit(limit + 1);
+
+  if (cursor) {
+    const [cursorRow] = await db
+      .select({ lastMessageAt: conversations.lastMessageAt })
+      .from(conversations)
+      .where(eq(conversations.id, cursor))
+      .limit(1);
+    if (cursorRow?.lastMessageAt) {
+      baseQuery = db
+        .select({
+          id: conversations.id,
+          clientId: conversations.clientId,
+          lastMessageAt: conversations.lastMessageAt,
+          status: conversations.status,
+          staffReadAt: conversations.staffReadAt,
+          clientName: clients.name,
+          clientPhone: clients.phone,
+          channel: conversations.channel,
+        })
+        .from(conversations)
+        .innerJoin(clients, eq(conversations.clientId, clients.id))
+        .where(
+          and(
+            eq(conversations.businessId, settings.id),
+            lt(conversations.lastMessageAt, cursorRow.lastMessageAt)
+          )
+        )
+        .orderBy(desc(conversations.lastMessageAt))
+        .limit(limit + 1);
+    }
+  }
+
+  const rows = await baseQuery;
+
+  const hasMore = rows.length > limit;
+  if (hasMore) rows.pop();
+
+  const items = await Promise.all(
+    rows.map(async (row) => {
+      const [unreadRow] = await db
+        .select({ count: sql<number>`count(*)` })
+        .from(messages)
+        .where(
+          and(
+            eq(messages.conversationId, row.id),
+            eq(messages.direction, "inbound"),
+            sql`${messages.createdAt} > COALESCE(${row.staffReadAt}, '1970-01-01'::timestamp)`
+          )
+        )
+        .limit(1);
+
+      const [lastMsg] = await db
+        .select({
+          body: messages.body,
+          direction: messages.direction,
+          createdAt: messages.createdAt,
+        })
+        .from(messages)
+        .where(eq(messages.conversationId, row.id))
+        .orderBy(desc(messages.createdAt))
+        .limit(1);
+
+      return {
+        id: row.id,
+        clientId: row.clientId,
+        clientName: row.clientName,
+        clientPhone: row.clientPhone,
+        channel: row.channel,
+        lastMessageAt: row.lastMessageAt,
+        status: row.status,
+        unreadCount: Number(unreadRow?.count ?? 0),
+        lastMessage: lastMsg ?? null,
+      };
+    })
+  );
+
+  const lastRow = rows[rows.length - 1];
+  const nextCursor = hasMore && lastRow ? lastRow.id : null;
+  return c.json({ items, nextCursor });
+});
+
+// GET /api/conversations/:id/messages — List messages for a conversation
+conversationsRouter.get("/:id/messages", async (c) => {
+  const db = getDb();
+  const staffRow = c.get("staff");
+  if (!staffRow) return c.json({ error: "Unauthorized" }, 401);
+
+  const conversationId = c.req.param("id");
+  const cursor = c.req.query("cursor") || undefined;
+  const limit = Math.min(Number(c.req.query("limit") || "50"), 100);
+
+  const [settings] = await db
+    .select({ id: businessSettings.id })
+    .from(businessSettings)
+    .limit(1);
+  if (!settings) return c.json({ error: "Business not found" }, 404);
+
+  const [conv] = await db
+    .select({ id: conversations.id })
+    .from(conversations)
+    .where(
+      and(eq(conversations.id, conversationId), eq(conversations.businessId, settings.id))
+    )
+    .limit(1);
+  if (!conv) return c.json({ error: "Not found" }, 404);
+
+  await db
+    .update(conversations)
+    .set({ staffReadAt: new Date() })
+    .where(eq(conversations.id, conversationId));
+
+  let query = db
+    .select({
+      id: messages.id,
+      direction: messages.direction,
+      body: messages.body,
+      status: messages.status,
+      sentByStaffId: messages.sentByStaffId,
+      createdAt: messages.createdAt,
+      deliveredAt: messages.deliveredAt,
+    })
+    .from(messages)
+    .where(eq(messages.conversationId, conversationId))
+    .orderBy(desc(messages.createdAt))
+    .limit(limit + 1);
+
+  if (cursor) {
+    const [cursorRow] = await db
+      .select({ createdAt: messages.createdAt })
+      .from(messages)
+      .where(eq(messages.id, cursor))
+      .limit(1);
+    if (cursorRow?.createdAt) {
+      query = db
+        .select({
+          id: messages.id,
+          direction: messages.direction,
+          body: messages.body,
+          status: messages.status,
+          sentByStaffId: messages.sentByStaffId,
+          createdAt: messages.createdAt,
+          deliveredAt: messages.deliveredAt,
+        })
+        .from(messages)
+        .where(
+          and(
+            eq(messages.conversationId, conversationId),
+            lt(messages.createdAt, cursorRow.createdAt)
+          )
+        )
+        .orderBy(desc(messages.createdAt))
+        .limit(limit + 1);
+    }
+  }
+
+  const rows = await query;
+  const hasMore = rows.length > limit;
+  if (hasMore) rows.pop();
+
+  const lastRow = rows[rows.length - 1];
+  const nextCursor = hasMore && lastRow ? lastRow.id : null;
+  return c.json({ items: rows, nextCursor });
+});
+
+// POST /api/conversations/:id/messages — Send a message
+conversationsRouter.post(
+  "/:id/messages",
+  zValidator("json", sendMessageSchema),
+  async (c) => {
+    const db = getDb();
+    const staffRow = c.get("staff");
+    if (!staffRow) return c.json({ error: "Unauthorized" }, 401);
+
+    const conversationId = c.req.param("id");
+    const { body } = c.req.valid("json");
+
+    const [settings] = await db
+      .select({ id: businessSettings.id })
+      .from(businessSettings)
+      .limit(1);
+    if (!settings) return c.json({ error: "Business not found" }, 404);
+
+    const [conv] = await db
+      .select({ id: conversations.id, clientId: conversations.clientId })
+      .from(conversations)
+      .where(
+        and(eq(conversations.id, conversationId), eq(conversations.businessId, settings.id))
+      )
+      .limit(1);
+    if (!conv) return c.json({ error: "Not found" }, 404);
+
+    const result = await sendMessage({
+      businessId: settings.id,
+      clientId: conv.clientId,
+      body,
+      sentByStaffId: staffRow.id,
+    });
+
+    if (result.suppressed) {
+      return c.json({ error: "Client has opted out of SMS" }, 409);
+    }
+
+    const [msg] = await db
+      .select({
+        id: messages.id,
+        direction: messages.direction,
+        body: messages.body,
+        status: messages.status,
+        sentByStaffId: messages.sentByStaffId,
+        createdAt: messages.createdAt,
+        deliveredAt: messages.deliveredAt,
+      })
+      .from(messages)
+      .where(eq(messages.id, result.messageId))
+      .limit(1);
+
+    return c.json(msg, 201);
+  }
+);
\ No newline at end of file
diff --git a/packages/db/migrations/0032_staff_read_at.sql b/packages/db/migrations/0032_staff_read_at.sql
new file mode 100644
index 0000000..b910ff8
--- /dev/null
+++ b/packages/db/migrations/0032_staff_read_at.sql
@@ -0,0 +1 @@
+ALTER TABLE "conversations" ADD COLUMN "staff_read_at" timestamp;
\ No newline at end of file
diff --git a/packages/db/migrations/meta/_journal.json b/packages/db/migrations/meta/_journal.json
index eef2244..ff0c252 100644
--- a/packages/db/migrations/meta/_journal.json
+++ b/packages/db/migrations/meta/_journal.json
@@ -218,6 +218,13 @@
       "when": 1775828067192,
       "tag": "0030_messaging",
       "breakpoints": true
+    },
+    {
+      "idx": 31,
+      "version": "7",
+      "when": 1778818472097,
+      "tag": "0032_staff_read_at",
+      "breakpoints": true
     }
   ]
 }
\ No newline at end of file
diff --git a/packages/db/src/schema.ts b/packages/db/src/schema.ts
index f1d74b3..c4e2f1a 100644
--- a/packages/db/src/schema.ts
+++ b/packages/db/src/schema.ts
@@ -444,6 +444,7 @@ export const conversations = pgTable(
     status: text("status").notNull().default("active"),
     createdAt: timestamp("created_at").notNull().defaultNow(),
     updatedAt: timestamp("updated_at").notNull().defaultNow(),
+    staffReadAt: timestamp("staff_read_at"),
   },
   (t) => [
     index("idx_conversations_business_id_last_message_at").on(