diff --git a/README.md b/README.md
new file mode 100644
index 0000000..6938c2c
--- /dev/null
+++ b/README.md
@@ -0,0 +1,112 @@
+# Rentall App
+
+A full-stack marketplace application for renting items, built with React and Node.js.
+
+## Features
+
+- **User Authentication**: Secure JWT-based authentication
+- **Item Listings**: Create, edit, and manage rental items
+- **Smart Search**: Browse and filter available items
+- **Availability Calendar**: Visual calendar for managing item availability
+- **Rental Requests**: Accept or reject rental requests with custom reasons
+- **Delivery Options**: Support for pickup, delivery, and in-place use
+- **User Profiles**: Manage profile information and view rental statistics
+- **Responsive Design**: Mobile-friendly interface with Bootstrap
+
+## Tech Stack
+
+### Frontend
+- React with TypeScript
+- React Router for navigation
+- Bootstrap for styling
+- Axios for API calls
+- Google Places API for address autocomplete
+
+### Backend
+- Node.js with Express
+- SQLite database with Sequelize ORM
+- JWT for authentication
+- Bcrypt for password hashing
+
+## Getting Started
+
+### Prerequisites
+- Node.js (v14 or higher)
+- npm or yarn
+
+### Installation
+
+1. Clone the repository
+```bash
+git clone https://github.com/YOUR_USERNAME/rentall-app.git
+cd rentall-app
+```
+
+2. Install backend dependencies
+```bash
+cd backend
+npm install
+```
+
+3. Set up backend environment variables
+Create a `.env` file in the backend directory:
+```
+JWT_SECRET=your_jwt_secret_here
+PORT=5001
+```
+
+4. Install frontend dependencies
+```bash
+cd ../frontend
+npm install
+```
+
+5. Set up frontend environment variables
+Create a `.env` file in the frontend directory:
+```
+REACT_APP_API_URL=http://localhost:5001
+REACT_APP_GOOGLE_MAPS_API_KEY=your_google_maps_api_key
+```
+
+### Running the Application
+
+1. Start the backend server
+```bash
+cd backend
+npm start
+```
+
+2. In a new terminal, start the frontend
+```bash
+cd frontend
+npm start
+```
+
+The application will be available at `http://localhost:3000`
+
+## Key Features Explained
+
+### Item Management
+- Create listings with multiple images, pricing options, and delivery methods
+- Set availability using an intuitive calendar interface
+- Manage rental rules and requirements
+
+### Rental Process
+- Browse available items with search and filter options
+- Select rental dates with calendar interface
+- Secure payment information collection
+- Real-time rental request notifications
+
+### User Dashboard
+- View and manage your listings
+- Track rental requests and accepted rentals
+- Monitor rental statistics
+- Update profile information
+
+## Contributing
+
+Feel free to submit issues and enhancement requests!
+
+## License
+
+This project is open source and available under the MIT License.
\ No newline at end of file