diff --git a/src/lib/server/images/storage.ts b/src/lib/server/images/storage.ts
new file mode 100644
index 0000000..305f785
--- /dev/null
+++ b/src/lib/server/images/storage.ts
@@ -0,0 +1,61 @@
+import { mkdir, writeFile, unlink } from 'node:fs/promises';
+import { join } from 'node:path';
+
+export const UPLOAD_DIR = 'data/uploads';
+export const ORIGINALS_DIR = 'data/uploads/originals';
+export const THUMBNAILS_DIR = 'data/uploads/thumbnails';
+
+/**
+ * Ensure upload directories exist
+ */
+export async function ensureDirectories(): Promise<void> {
+	await mkdir(ORIGINALS_DIR, { recursive: true });
+	await mkdir(THUMBNAILS_DIR, { recursive: true });
+}
+
+/**
+ * Save original image to filesystem
+ */
+export async function saveOriginal(id: string, ext: string, buffer: Buffer): Promise<void> {
+	const path = getOriginalPath(id, ext);
+	await writeFile(path, buffer);
+}
+
+/**
+ * Save thumbnail to filesystem (always jpg)
+ */
+export async function saveThumbnail(id: string, buffer: Buffer): Promise<void> {
+	const path = getThumbnailPath(id);
+	await writeFile(path, buffer);
+}
+
+/**
+ * Get path to original image
+ */
+export function getOriginalPath(id: string, ext: string): string {
+	return join(ORIGINALS_DIR, `${id}.${ext}`);
+}
+
+/**
+ * Get path to thumbnail (always jpg)
+ */
+export function getThumbnailPath(id: string): string {
+	return join(THUMBNAILS_DIR, `${id}.jpg`);
+}
+
+/**
+ * Delete both original and thumbnail files
+ * Does not throw if files don't exist
+ */
+export async function deleteImage(id: string, ext: string): Promise<void> {
+	try {
+		await unlink(getOriginalPath(id, ext));
+	} catch {
+		// File may not exist, ignore
+	}
+	try {
+		await unlink(getThumbnailPath(id));
+	} catch {
+		// File may not exist, ignore
+	}
+}
diff --git a/src/lib/server/images/thumbnails.ts b/src/lib/server/images/thumbnails.ts
new file mode 100644
index 0000000..a65d56c
--- /dev/null
+++ b/src/lib/server/images/thumbnails.ts
@@ -0,0 +1,23 @@
+import sharp from 'sharp';
+
+/**
+ * Generate a thumbnail from an image buffer
+ *
+ * CRITICAL: Uses sharp.rotate() first to handle EXIF orientation from mobile photos.
+ * Without this, photos taken in portrait mode may appear rotated.
+ *
+ * @param buffer - Original image buffer
+ * @param size - Thumbnail size (default 150px)
+ * @returns Thumbnail buffer as JPEG
+ */
+export async function generateThumbnail(buffer: Buffer, size: number = 150): Promise<Buffer> {
+	return sharp(buffer)
+		.rotate() // Auto-rotate based on EXIF orientation
+		.resize(size, size, {
+			fit: 'cover',
+			position: 'center',
+			withoutEnlargement: true
+		})
+		.jpeg({ quality: 80 })
+		.toBuffer();
+}