diff --git a/database/migrations/010_chat_notifications.sql b/database/migrations/010_chat_notifications.sql
new file mode 100644
index 0000000..b96c3fd
--- /dev/null
+++ b/database/migrations/010_chat_notifications.sql
@@ -0,0 +1,4 @@
+ALTER TABLE notifications ADD COLUMN IF NOT EXISTS context_id UUID;
+ALTER TABLE notifications ADD COLUMN IF NOT EXISTS context_type VARCHAR(50);
+
+CREATE INDEX IF NOT EXISTS idx_notifications_context ON notifications(context_type, context_id) WHERE context_type IS NOT NULL;
diff --git a/database/migrations/run_all.sql b/database/migrations/run_all.sql
index b1add20..ededccc 100644
--- a/database/migrations/run_all.sql
+++ b/database/migrations/run_all.sql
@@ -31,6 +31,9 @@
 \echo '=== Running 009_settings.sql (Company Settings + User Preferences) ==='
 \i 009_settings.sql
 
+\echo '=== Running 010_chat_notifications.sql (Chat Message Notifications) ==='
+\i 010_chat_notifications.sql
+
 \echo '=== Migration Complete ==='
 \echo ''
 \echo 'Test accounts created:'
diff --git a/src/app/api/conversations/[id]/messages/route.ts b/src/app/api/conversations/[id]/messages/route.ts
index f395322..d1ee0c0 100644
--- a/src/app/api/conversations/[id]/messages/route.ts
+++ b/src/app/api/conversations/[id]/messages/route.ts
@@ -84,13 +84,28 @@ export async function POST(
     )
 
     const msg = result.rows[0]
+    const senderName = `${user.firstName} ${user.lastName}`
+
+    const otherResult = await query(
+      `SELECT user_id FROM conversation_participants
+       WHERE conversation_id = $1 AND user_id != $2`,
+      [id, user.id],
+    )
+
+    for (const row of otherResult.rows) {
+      await query(
+        `INSERT INTO notifications (user_id, type, title, description, link, context_id, context_type)
+         VALUES ($1, 'chat_message', 'New Message', $2, '/chats', $3, 'conversation')`,
+        [row.user_id, `${senderName} sent a message`, id],
+      )
+    }
 
     return NextResponse.json({
       message: {
         id: msg.id,
         conversationId: id,
         senderId: user.id,
-        senderName: `${user.firstName} ${user.lastName}`,
+        senderName,
         senderAvatar: user.avatar,
         content: content.trim(),
         timestamp: formatTime(new Date(msg.created_at)),
diff --git a/src/app/api/conversations/[id]/read/route.ts b/src/app/api/conversations/[id]/read/route.ts
index 758fd90..e5357e8 100644
--- a/src/app/api/conversations/[id]/read/route.ts
+++ b/src/app/api/conversations/[id]/read/route.ts
@@ -19,6 +19,12 @@ export async function POST(
       [id, user.id],
     )
 
+    await query(
+      `UPDATE notifications SET is_read = TRUE
+       WHERE user_id = $1 AND context_type = 'conversation' AND context_id = $2 AND is_read = FALSE`,
+      [user.id, id],
+    )
+
     return NextResponse.json({ success: true })
   } catch (error) {
     console.error("Mark read error:", error)
diff --git a/src/app/api/notifications/route.ts b/src/app/api/notifications/route.ts
index d8c2c00..cecfda7 100644
--- a/src/app/api/notifications/route.ts
+++ b/src/app/api/notifications/route.ts
@@ -8,7 +8,7 @@ export async function GET() {
     if (!user) return NextResponse.json({ error: "Unauthorized" }, { status: 401 })
 
     const result = await query(
-      `SELECT id, type, title, description, link, is_read, created_at
+      `SELECT id, type, title, description, link, is_read, created_at, context_id, context_type
        FROM notifications
        WHERE user_id = $1
        ORDER BY created_at DESC
@@ -24,6 +24,8 @@ export async function GET() {
       link: r.link,
       read: r.is_read,
       timestamp: r.created_at,
+      contextId: r.context_id,
+      contextType: r.context_type,
     }))
 
     const unreadResult = await query(