diff --git a/Cargo.lock b/Cargo.lock
index f147635..85bf3aa 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -2454,6 +2454,7 @@ dependencies = [
  "chrono",
  "clap",
  "dotenvy",
+ "futures",
  "futures-util",
  "hostname",
  "image",
diff --git a/Cargo.toml b/Cargo.toml
index edc9e47..46e3f2e 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -30,6 +30,7 @@ tracing = "0.1"
 tracing-subscriber = "0.3"
 tokio-util = { version = "0.7", features = ["io"] }
 futures-util = "0.3"
+futures = "0.3"
 notify = "6"
 mime_guess = "2"
 tesseract = { version = "0.15", optional = true }
diff --git a/frontend/src/components/DocumentThumbnail.tsx b/frontend/src/components/DocumentThumbnail.tsx
new file mode 100644
index 0000000..2cb6965
--- /dev/null
+++ b/frontend/src/components/DocumentThumbnail.tsx
@@ -0,0 +1,118 @@
+import React, { useState, useEffect } from 'react';
+import { Box } from '@mui/material';
+import {
+  PictureAsPdf as PdfIcon,
+  Image as ImageIcon,
+  Description as DocIcon,
+  TextSnippet as TextIcon,
+} from '@mui/icons-material';
+import { documentService } from '../services/api';
+
+interface DocumentThumbnailProps {
+  documentId: string;
+  mimeType: string;
+  size?: 'small' | 'medium' | 'large';
+  fallbackIcon?: boolean;
+}
+
+const DocumentThumbnail: React.FC<DocumentThumbnailProps> = ({
+  documentId,
+  mimeType,
+  size = 'medium',
+  fallbackIcon = true,
+}) => {
+  const [thumbnailUrl, setThumbnailUrl] = useState<string | null>(null);
+  const [loading, setLoading] = useState<boolean>(true);
+  const [error, setError] = useState<boolean>(false);
+
+  useEffect(() => {
+    loadThumbnail();
+    
+    // Cleanup URL when component unmounts
+    return () => {
+      if (thumbnailUrl) {
+        window.URL.revokeObjectURL(thumbnailUrl);
+      }
+    };
+  }, [documentId]);
+
+  const loadThumbnail = async (): Promise<void> => {
+    try {
+      setLoading(true);
+      setError(false);
+      
+      const response = await documentService.getThumbnail(documentId);
+      const url = window.URL.createObjectURL(new Blob([response.data]));
+      setThumbnailUrl(url);
+    } catch (err) {
+      setError(true);
+    } finally {
+      setLoading(false);
+    }
+  };
+
+  const getFileIcon = (mimeType: string): React.ReactElement => {
+    const iconProps = {
+      sx: {
+        fontSize: size === 'small' ? 24 : size === 'medium' ? 48 : 64,
+        color: 'action.active',
+      }
+    };
+
+    if (mimeType.includes('pdf')) return <PdfIcon {...iconProps} color="error" />;
+    if (mimeType.includes('image')) return <ImageIcon {...iconProps} color="primary" />;
+    if (mimeType.includes('text')) return <TextIcon {...iconProps} color="info" />;
+    return <DocIcon {...iconProps} color="secondary" />;
+  };
+
+  const dimensions = {
+    small: { width: 40, height: 40 },
+    medium: { width: 80, height: 80 },
+    large: { width: 120, height: 120 },
+  };
+
+  if (thumbnailUrl && !error) {
+    return (
+      <Box
+        sx={{
+          width: dimensions[size].width,
+          height: dimensions[size].height,
+          display: 'flex',
+          alignItems: 'center',
+          justifyContent: 'center',
+        }}
+      >
+        <img
+          src={thumbnailUrl}
+          alt="Document thumbnail"
+          style={{
+            maxWidth: '100%',
+            maxHeight: '100%',
+            objectFit: 'cover',
+            borderRadius: '4px',
+          }}
+        />
+      </Box>
+    );
+  }
+
+  if (fallbackIcon) {
+    return (
+      <Box
+        sx={{
+          width: dimensions[size].width,
+          height: dimensions[size].height,
+          display: 'flex',
+          alignItems: 'center',
+          justifyContent: 'center',
+        }}
+      >
+        {getFileIcon(mimeType)}
+      </Box>
+    );
+  }
+
+  return null;
+};
+
+export default DocumentThumbnail;
\ No newline at end of file
diff --git a/frontend/src/components/DocumentViewer.tsx b/frontend/src/components/DocumentViewer.tsx
new file mode 100644
index 0000000..9081c72
--- /dev/null
+++ b/frontend/src/components/DocumentViewer.tsx
@@ -0,0 +1,216 @@
+import React, { useState, useEffect } from 'react';
+import {
+  Box,
+  Typography,
+  CircularProgress,
+  Alert,
+  Paper,
+} from '@mui/material';
+import { documentService } from '../services/api';
+
+interface DocumentViewerProps {
+  documentId: string;
+  filename: string;
+  mimeType: string;
+}
+
+const DocumentViewer: React.FC<DocumentViewerProps> = ({
+  documentId,
+  filename,
+  mimeType,
+}) => {
+  const [loading, setLoading] = useState<boolean>(true);
+  const [error, setError] = useState<string | null>(null);
+  const [documentUrl, setDocumentUrl] = useState<string | null>(null);
+
+  useEffect(() => {
+    loadDocument();
+    
+    // Cleanup URL when component unmounts
+    return () => {
+      if (documentUrl) {
+        window.URL.revokeObjectURL(documentUrl);
+      }
+    };
+  }, [documentId]);
+
+  const loadDocument = async (): Promise<void> => {
+    try {
+      setLoading(true);
+      setError(null);
+      
+      const response = await documentService.view(documentId);
+      const url = window.URL.createObjectURL(new Blob([response.data], { type: mimeType }));
+      setDocumentUrl(url);
+    } catch (err) {
+      console.error('Failed to load document:', err);
+      setError('Failed to load document for viewing');
+    } finally {
+      setLoading(false);
+    }
+  };
+
+  const renderDocumentContent = (): React.ReactElement => {
+    if (!documentUrl) return <></>;
+
+    // Handle images
+    if (mimeType.startsWith('image/')) {
+      return (
+        <Box
+          sx={{
+            display: 'flex',
+            justifyContent: 'center',
+            alignItems: 'center',
+            minHeight: '60vh',
+            p: 2,
+          }}
+        >
+          <img
+            src={documentUrl}
+            alt={filename}
+            style={{
+              maxWidth: '100%',
+              maxHeight: '100%',
+              objectFit: 'contain',
+              borderRadius: '8px',
+              boxShadow: '0 4px 12px rgba(0,0,0,0.1)',
+            }}
+          />
+        </Box>
+      );
+    }
+
+    // Handle PDFs
+    if (mimeType === 'application/pdf') {
+      return (
+        <Box sx={{ height: '70vh', width: '100%' }}>
+          <iframe
+            src={documentUrl}
+            width="100%"
+            height="100%"
+            style={{ border: 'none', borderRadius: '8px' }}
+            title={filename}
+          />
+        </Box>
+      );
+    }
+
+    // Handle text files
+    if (mimeType.startsWith('text/')) {
+      return (
+        <TextFileViewer documentUrl={documentUrl} filename={filename} />
+      );
+    }
+
+    // For other file types, show a message
+    return (
+      <Box sx={{ textAlign: 'center', py: 8 }}>
+        <Typography variant="h6" color="text.secondary" sx={{ mb: 2 }}>
+          Preview not available
+        </Typography>
+        <Typography variant="body2" color="text.secondary">
+          This file type ({mimeType}) cannot be previewed in the browser.
+        </Typography>
+        <Typography variant="body2" color="text.secondary" sx={{ mt: 1 }}>
+          Please download the file to view its contents.
+        </Typography>
+      </Box>
+    );
+  };
+
+  if (loading) {
+    return (
+      <Box
+        sx={{
+          display: 'flex',
+          flexDirection: 'column',
+          justifyContent: 'center',
+          alignItems: 'center',
+          minHeight: '60vh',
+        }}
+      >
+        <CircularProgress sx={{ mb: 2 }} />
+        <Typography variant="body2" color="text.secondary">
+          Loading document...
+        </Typography>
+      </Box>
+    );
+  }
+
+  if (error) {
+    return (
+      <Box sx={{ p: 3 }}>
+        <Alert severity="error">{error}</Alert>
+      </Box>
+    );
+  }
+
+  return (
+    <Box sx={{ height: '100%', overflow: 'auto' }}>
+      {renderDocumentContent()}
+    </Box>
+  );
+};
+
+// Component for viewing text files
+const TextFileViewer: React.FC<{ documentUrl: string; filename: string }> = ({
+  documentUrl,
+  filename,
+}) => {
+  const [textContent, setTextContent] = useState<string>('');
+  const [loading, setLoading] = useState<boolean>(true);
+
+  useEffect(() => {
+    loadTextContent();
+  }, [documentUrl]);
+
+  const loadTextContent = async (): Promise<void> => {
+    try {
+      const response = await fetch(documentUrl);
+      const text = await response.text();
+      setTextContent(text);
+    } catch (err) {
+      console.error('Failed to load text content:', err);
+      setTextContent('Failed to load text content');
+    } finally {
+      setLoading(false);
+    }
+  };
+
+  if (loading) {
+    return (
+      <Box sx={{ display: 'flex', justifyContent: 'center', p: 3 }}>
+        <CircularProgress size={24} />
+      </Box>
+    );
+  }
+
+  return (
+    <Paper
+      sx={{
+        p: 3,
+        m: 2,
+        backgroundColor: (theme) => theme.palette.mode === 'light' ? 'grey.50' : 'grey.900',
+        border: '1px solid',
+        borderColor: 'divider',
+        borderRadius: 2,
+        maxHeight: '70vh',
+        overflow: 'auto',
+      }}
+    >
+      <Typography
+        variant="body2"
+        sx={{
+          fontFamily: 'monospace',
+          whiteSpace: 'pre-wrap',
+          lineHeight: 1.6,
+          color: 'text.primary',
+        }}
+      >
+        {textContent}
+      </Typography>
+    </Paper>
+  );
+};
+
+export default DocumentViewer;
\ No newline at end of file
diff --git a/frontend/src/pages/DocumentDetailsPage.tsx b/frontend/src/pages/DocumentDetailsPage.tsx
index d346fe7..56ccdac 100644
--- a/frontend/src/pages/DocumentDetailsPage.tsx
+++ b/frontend/src/pages/DocumentDetailsPage.tsx
@@ -35,6 +35,7 @@ import {
   Edit as EditIcon,
 } from '@mui/icons-material';
 import { documentService, OcrResponse } from '../services/api';
+import DocumentViewer from '../components/DocumentViewer';
 
 interface Document {
   id: string;
@@ -57,6 +58,8 @@ const DocumentDetailsPage: React.FC = () => {
   const [ocrData, setOcrData] = useState<OcrResponse | null>(null);
   const [showOcrDialog, setShowOcrDialog] = useState<boolean>(false);
   const [ocrLoading, setOcrLoading] = useState<boolean>(false);
+  const [showViewDialog, setShowViewDialog] = useState<boolean>(false);
+  const [thumbnailUrl, setThumbnailUrl] = useState<string | null>(null);
 
   useEffect(() => {
     if (id) {
@@ -70,6 +73,12 @@ const DocumentDetailsPage: React.FC = () => {
     }
   }, [document]);
 
+  useEffect(() => {
+    if (document) {
+      loadThumbnail();
+    }
+  }, [document]);
+
   const fetchDocumentDetails = async (): Promise<void> => {
     try {
       setLoading(true);
@@ -134,6 +143,23 @@ const DocumentDetailsPage: React.FC = () => {
     }
   };
 
+  const loadThumbnail = async (): Promise<void> => {
+    if (!document) return;
+    
+    try {
+      const response = await documentService.getThumbnail(document.id);
+      const url = window.URL.createObjectURL(new Blob([response.data]));
+      setThumbnailUrl(url);
+    } catch (err) {
+      console.log('Thumbnail not available:', err);
+      // Thumbnail not available, use fallback icon
+    }
+  };
+
+  const handleViewDocument = (): void => {
+    setShowViewDialog(true);
+  };
+
   const getFileIcon = (mimeType?: string): React.ReactElement => {
     if (mimeType?.includes('pdf')) return <PdfIcon color="error" sx={{ fontSize: 64 }} />;
     if (mimeType?.includes('image')) return <ImageIcon color="primary" sx={{ fontSize: 64 }} />;
@@ -227,18 +253,40 @@ const DocumentDetailsPage: React.FC = () => {
                   p: 3,
                   background: 'linear-gradient(135deg, rgba(99, 102, 241, 0.1) 0%, rgba(139, 92, 246, 0.1) 100%)',
                   borderRadius: 2,
+                  minHeight: 200,
                 }}
               >
-                {getFileIcon(document.mime_type)}
+                {thumbnailUrl ? (
+                  <img
+                    src={thumbnailUrl}
+                    alt={document.original_filename}
+                    style={{
+                      maxWidth: '100%',
+                      maxHeight: '200px',
+                      borderRadius: '8px',
+                      objectFit: 'contain',
+                    }}
+                  />
+                ) : (
+                  getFileIcon(document.mime_type)
+                )}
               </Box>
               
               <Typography variant="h6" sx={{ mb: 2, fontWeight: 600 }}>
                 {document.original_filename}
               </Typography>
               
-              <Stack direction="row" spacing={1} justifyContent="center" sx={{ mb: 3 }}>
+              <Stack direction="row" spacing={1} justifyContent="center" sx={{ mb: 3, flexWrap: 'wrap' }}>
                 <Button
                   variant="contained"
+                  startIcon={<ViewIcon />}
+                  onClick={handleViewDocument}
+                  sx={{ borderRadius: 2 }}
+                >
+                  View
+                </Button>
+                <Button
+                  variant="outlined"
                   startIcon={<DownloadIcon />}
                   onClick={handleDownload}
                   sx={{ borderRadius: 2 }}
@@ -252,7 +300,7 @@ const DocumentDetailsPage: React.FC = () => {
                     onClick={handleViewOcr}
                     sx={{ borderRadius: 2 }}
                   >
-                    View OCR
+                    OCR Text
                   </Button>
                 )}
               </Stack>
@@ -590,6 +638,49 @@ const DocumentDetailsPage: React.FC = () => {
           </Button>
         </DialogActions>
       </Dialog>
+
+      {/* Document View Dialog */}
+      <Dialog
+        open={showViewDialog}
+        onClose={() => setShowViewDialog(false)}
+        maxWidth="lg"
+        fullWidth
+        PaperProps={{
+          sx: { height: '90vh' }
+        }}
+      >
+        <DialogTitle>
+          <Box sx={{ display: 'flex', justifyContent: 'space-between', alignItems: 'center' }}>
+            <Typography variant="h6" sx={{ fontWeight: 600 }}>
+              {document?.original_filename}
+            </Typography>
+            <Box>
+              <Button
+                startIcon={<DownloadIcon />}
+                onClick={handleDownload}
+                size="small"
+                sx={{ mr: 1 }}
+              >
+                Download
+              </Button>
+            </Box>
+          </Box>
+        </DialogTitle>
+        <DialogContent sx={{ p: 0, display: 'flex', flexDirection: 'column' }}>
+          {document && (
+            <DocumentViewer
+              documentId={document.id}
+              filename={document.original_filename}
+              mimeType={document.mime_type}
+            />
+          )}
+        </DialogContent>
+        <DialogActions>
+          <Button onClick={() => setShowViewDialog(false)}>
+            Close
+          </Button>
+        </DialogActions>
+      </Dialog>
     </Box>
   );
 };
diff --git a/frontend/src/pages/DocumentsPage.tsx b/frontend/src/pages/DocumentsPage.tsx
index a3adcad..5af5eac 100644
--- a/frontend/src/pages/DocumentsPage.tsx
+++ b/frontend/src/pages/DocumentsPage.tsx
@@ -40,6 +40,7 @@ import {
   Visibility as ViewIcon,
 } from '@mui/icons-material';
 import { documentService } from '../services/api';
+import DocumentThumbnail from '../components/DocumentThumbnail';
 
 interface Document {
   id: string;
@@ -375,9 +376,11 @@ const DocumentsPage: React.FC = () => {
                       background: 'linear-gradient(135deg, rgba(99, 102, 241, 0.1) 0%, rgba(139, 92, 246, 0.1) 100%)',
                     }}
                   >
-                    <Box sx={{ fontSize: '3rem' }}>
-                      {getFileIcon(doc.mime_type)}
-                    </Box>
+                    <DocumentThumbnail
+                      documentId={doc.id}
+                      mimeType={doc.mime_type}
+                      size="large"
+                    />
                   </Box>
                 )}
                 
@@ -385,7 +388,11 @@ const DocumentsPage: React.FC = () => {
                   <Box sx={{ display: 'flex', alignItems: 'flex-start', gap: 1 }}>
                     {viewMode === 'list' && (
                       <Box sx={{ mr: 1, mt: 0.5 }}>
-                        {getFileIcon(doc.mime_type)}
+                        <DocumentThumbnail
+                          documentId={doc.id}
+                          mimeType={doc.mime_type}
+                          size="small"
+                        />
                       </Box>
                     )}
                     
diff --git a/frontend/src/services/api.ts b/frontend/src/services/api.ts
index c1a9c9b..f4c9ca2 100644
--- a/frontend/src/services/api.ts
+++ b/frontend/src/services/api.ts
@@ -121,6 +121,18 @@ export const documentService = {
     return api.get<OcrResponse>(`/documents/${id}/ocr`)
   },
 
+  view: (id: string) => {
+    return api.get(`/documents/${id}/view`, {
+      responseType: 'blob',
+    })
+  },
+
+  getThumbnail: (id: string) => {
+    return api.get(`/documents/${id}/thumbnail`, {
+      responseType: 'blob',
+    })
+  },
+
   search: (searchRequest: SearchRequest) => {
     return api.get<SearchResponse>('/search', {
       params: searchRequest,
diff --git a/src/batch_ingest.rs b/src/batch_ingest.rs
index 5aac905..8908144 100644
--- a/src/batch_ingest.rs
+++ b/src/batch_ingest.rs
@@ -78,10 +78,11 @@ impl BatchIngester {
             let user_id_clone = user_id;
             
             // Process file asynchronously
+            let db_clone = self.db.clone();
             let handle = tokio::spawn(async move {
                 let permit = semaphore_clone.acquire().await.unwrap();
                 let _permit = permit;
-                process_single_file(path_clone, file_service, user_id_clone).await
+                process_single_file(path_clone, file_service, user_id_clone, db_clone).await
             });
             
             batch.push(handle);
@@ -166,6 +167,7 @@ async fn process_single_file(
     path: PathBuf,
     file_service: FileService,
     user_id: Uuid,
+    db: Database,
 ) -> Result<Option<(Uuid, i64)>> {
     let filename = path
         .file_name()
@@ -204,7 +206,6 @@ async fn process_single_file(
     );
     
     // Save to database (without OCR)
-    let db = Database::new(&std::env::var("DATABASE_URL")?).await?;
     let created_doc = db.create_document(document).await?;
     
     Ok(Some((created_doc.id, file_size)))
diff --git a/src/bin/batch_ingest.rs b/src/bin/batch_ingest.rs
index 87de6f8..b8788df 100644
--- a/src/bin/batch_ingest.rs
+++ b/src/bin/batch_ingest.rs
@@ -54,9 +54,8 @@ async fn main() -> Result<()> {
     
     let config = Config::from_env()?;
     let db = Database::new(&config.database_url).await?;
-    let pool = sqlx::PgPool::connect(&config.database_url).await?;
     let file_service = FileService::new(config.upload_path.clone());
-    let queue_service = OcrQueueService::new(db.clone(), pool, 1);
+    let queue_service = OcrQueueService::new(db.clone(), db.get_pool().clone(), 1);
     
     let ingester = BatchIngester::new(db, queue_service, file_service, config);
     
diff --git a/src/db.rs b/src/db.rs
index 9e5fb7e..f3a538e 100644
--- a/src/db.rs
+++ b/src/db.rs
@@ -1,6 +1,7 @@
 use anyhow::Result;
 use chrono::Utc;
-use sqlx::{PgPool, Row};
+use sqlx::{PgPool, Row, postgres::PgPoolOptions};
+use std::time::Duration;
 use uuid::Uuid;
 
 use crate::models::{CreateUser, Document, SearchRequest, SearchMode, SearchSnippet, HighlightRange, EnhancedDocumentResponse, User};
@@ -12,9 +13,19 @@ pub struct Database {
 
 impl Database {
     pub async fn new(database_url: &str) -> Result<Self> {
-        let pool = PgPool::connect(database_url).await?;
+        let pool = PgPoolOptions::new()
+            .max_connections(20)                          // Increase from default 10
+            .acquire_timeout(Duration::from_secs(3))      // 3 second timeout
+            .idle_timeout(Duration::from_secs(600))       // 10 minute idle timeout
+            .max_lifetime(Duration::from_secs(1800))      // 30 minute max lifetime
+            .connect(database_url)
+            .await?;
         Ok(Self { pool })
     }
+    
+    pub fn get_pool(&self) -> &PgPool {
+        &self.pool
+    }
 
     pub async fn migrate(&self) -> Result<()> {
         // Create extensions
diff --git a/src/enhanced_ocr.rs b/src/enhanced_ocr.rs
index effdf9c..65e3985 100644
--- a/src/enhanced_ocr.rs
+++ b/src/enhanced_ocr.rs
@@ -58,16 +58,28 @@ impl EnhancedOcrService {
             file_path.to_string()
         };
 
-        // Configure Tesseract with optimal settings
-        let mut tesseract = self.configure_tesseract(&processed_image_path, settings)?;
+        // Move CPU-intensive OCR operations to blocking thread pool
+        let processed_image_path_clone = processed_image_path.clone();
+        let settings_clone = settings.clone();
+        let temp_dir = self.temp_dir.clone();
         
-        // Extract text with confidence
-        let text = tesseract.get_text()?.trim().to_string();
-        let confidence = self.calculate_overall_confidence(&mut tesseract)?;
+        let ocr_result = tokio::task::spawn_blocking(move || -> Result<(String, f32)> {
+            // Configure Tesseract with optimal settings
+            let ocr_service = EnhancedOcrService::new(temp_dir);
+            let mut tesseract = ocr_service.configure_tesseract(&processed_image_path_clone, &settings_clone)?;
+            
+            // Extract text with confidence
+            let text = tesseract.get_text()?.trim().to_string();
+            let confidence = ocr_service.calculate_overall_confidence(&mut tesseract)?;
+            
+            Ok((text, confidence))
+        }).await??;
+        
+        let (text, confidence) = ocr_result;
         
         // Clean up temporary files if created
         if processed_image_path != file_path {
-            let _ = std::fs::remove_file(&processed_image_path);
+            let _ = tokio::fs::remove_file(&processed_image_path).await;
         }
         
         let processing_time = start_time.elapsed().as_millis() as u64;
@@ -502,7 +514,7 @@ impl EnhancedOcrService {
         let start_time = std::time::Instant::now();
         info!("Extracting text from PDF: {}", file_path);
         
-        let bytes = std::fs::read(file_path)?;
+        let bytes = tokio::fs::read(file_path).await?;
         
         // Check if it's a valid PDF (handles leading null bytes)
         if !is_valid_pdf(&bytes) {
@@ -566,7 +578,7 @@ impl EnhancedOcrService {
             }
             "text/plain" => {
                 let start_time = std::time::Instant::now();
-                let text = std::fs::read_to_string(file_path)?;
+                let text = tokio::fs::read_to_string(file_path).await?;
                 let processing_time = start_time.elapsed().as_millis() as u64;
                 let word_count = text.split_whitespace().count();
                 
diff --git a/src/file_service.rs b/src/file_service.rs
index f2a92eb..41707b8 100644
--- a/src/file_service.rs
+++ b/src/file_service.rs
@@ -6,6 +6,9 @@ use uuid::Uuid;
 
 use crate::models::Document;
 
+#[cfg(feature = "ocr")]
+use image::{DynamicImage, ImageFormat, imageops::FilterType};
+
 #[derive(Clone)]
 pub struct FileService {
     upload_path: String,
@@ -87,4 +90,105 @@ impl FileService {
         let data = fs::read(file_path).await?;
         Ok(data)
     }
+
+    #[cfg(feature = "ocr")]
+    pub async fn get_or_generate_thumbnail(&self, file_path: &str, filename: &str) -> Result<Vec<u8>> {
+        // Create thumbnails directory if it doesn't exist
+        let thumbnails_dir = Path::new(&self.upload_path).join("thumbnails");
+        if !thumbnails_dir.exists() {
+            fs::create_dir_all(&thumbnails_dir).await?;
+        }
+
+        // Generate thumbnail filename based on original file path
+        let file_stem = Path::new(file_path)
+            .file_stem()
+            .and_then(|s| s.to_str())
+            .unwrap_or("unknown");
+        let thumbnail_path = thumbnails_dir.join(format!("{}_thumb.jpg", file_stem));
+
+        // Check if thumbnail already exists
+        if thumbnail_path.exists() {
+            return self.read_file(&thumbnail_path.to_string_lossy()).await;
+        }
+
+        // Generate thumbnail
+        let thumbnail_data = self.generate_thumbnail(file_path, filename).await?;
+        
+        // Save thumbnail to cache
+        fs::write(&thumbnail_path, &thumbnail_data).await?;
+        
+        Ok(thumbnail_data)
+    }
+
+    #[cfg(feature = "ocr")]
+    async fn generate_thumbnail(&self, file_path: &str, filename: &str) -> Result<Vec<u8>> {
+        let file_data = self.read_file(file_path).await?;
+        
+        // Determine file type from extension
+        let extension = Path::new(filename)
+            .extension()
+            .and_then(|ext| ext.to_str())
+            .unwrap_or("")
+            .to_lowercase();
+
+        match extension.as_str() {
+            "jpg" | "jpeg" | "png" | "bmp" | "tiff" | "gif" => {
+                self.generate_image_thumbnail(&file_data).await
+            }
+            "pdf" => {
+                // For PDFs, we'd need pdf2image or similar
+                // For now, return a placeholder
+                self.generate_placeholder_thumbnail("PDF").await
+            }
+            _ => {
+                // For other file types, generate a placeholder
+                self.generate_placeholder_thumbnail(&extension.to_uppercase()).await
+            }
+        }
+    }
+
+    #[cfg(feature = "ocr")]
+    async fn generate_image_thumbnail(&self, file_data: &[u8]) -> Result<Vec<u8>> {
+        let img = image::load_from_memory(file_data)?;
+        let thumbnail = img.resize(200, 200, FilterType::Lanczos3);
+        
+        let mut buffer = Vec::new();
+        let mut cursor = std::io::Cursor::new(&mut buffer);
+        thumbnail.write_to(&mut cursor, ImageFormat::Jpeg)?;
+        
+        Ok(buffer)
+    }
+
+    #[cfg(feature = "ocr")]
+    async fn generate_placeholder_thumbnail(&self, file_type: &str) -> Result<Vec<u8>> {
+        // Create a simple colored rectangle as placeholder
+        use image::{RgbImage, Rgb};
+        
+        let mut img = RgbImage::new(200, 200);
+        
+        // Different colors for different file types
+        let color = match file_type {
+            "PDF" => Rgb([220, 38, 27]),   // Red for PDF
+            "TXT" => Rgb([34, 139, 34]),   // Green for text
+            "DOC" | "DOCX" => Rgb([41, 128, 185]), // Blue for Word docs
+            _ => Rgb([108, 117, 125]),     // Gray for unknown
+        };
+        
+        // Fill with solid color
+        for pixel in img.pixels_mut() {
+            *pixel = color;
+        }
+        
+        let dynamic_img = DynamicImage::ImageRgb8(img);
+        let mut buffer = Vec::new();
+        let mut cursor = std::io::Cursor::new(&mut buffer);
+        dynamic_img.write_to(&mut cursor, ImageFormat::Jpeg)?;
+        
+        Ok(buffer)
+    }
+
+    #[cfg(not(feature = "ocr"))]
+    pub async fn get_or_generate_thumbnail(&self, _file_path: &str, _filename: &str) -> Result<Vec<u8>> {
+        anyhow::bail!("Thumbnail generation requires OCR feature")
+    }
 }
\ No newline at end of file
diff --git a/src/main.rs b/src/main.rs
index 0ad01b4..b6cea13 100644
--- a/src/main.rs
+++ b/src/main.rs
@@ -149,28 +149,38 @@ async fn main() -> Result<(), Box<dyn std::error::Error>> {
         .with_state(state.clone());
     
     let watcher_config = config.clone();
+    let watcher_db = state.db.clone();
     tokio::spawn(async move {
-        if let Err(e) = readur::watcher::start_folder_watcher(watcher_config).await {
+        if let Err(e) = readur::watcher::start_folder_watcher(watcher_config, watcher_db).await {
             error!("Folder watcher error: {}", e);
         }
     });
     
-    // Start OCR queue worker
-    let queue_db = Database::new(&config.database_url).await?;
-    let queue_pool = sqlx::PgPool::connect(&config.database_url).await?;
-    let concurrent_jobs = 4; // TODO: Get from config/settings
-    let queue_service = Arc::new(readur::ocr_queue::OcrQueueService::new(queue_db, queue_pool, concurrent_jobs));
+    // Create dedicated runtime for background tasks to prevent interference
+    let background_runtime = tokio::runtime::Builder::new_multi_thread()
+        .worker_threads(2)  // Dedicated threads for background work
+        .thread_name("readur-background")
+        .enable_all()
+        .build()?;
+    
+    // Start OCR queue worker on dedicated runtime
+    let concurrent_jobs = 4; // TODO: Get from config/settings  
+    let queue_service = Arc::new(readur::ocr_queue::OcrQueueService::new(
+        state.db.clone(), 
+        state.db.get_pool().clone(), 
+        concurrent_jobs
+    ));
     
     let queue_worker = queue_service.clone();
-    tokio::spawn(async move {
+    background_runtime.spawn(async move {
         if let Err(e) = queue_worker.start_worker().await {
             error!("OCR queue worker error: {}", e);
         }
     });
     
-    // Start maintenance tasks
+    // Start maintenance tasks on background runtime
     let queue_maintenance = queue_service.clone();
-    tokio::spawn(async move {
+    background_runtime.spawn(async move {
         let mut interval = tokio::time::interval(std::time::Duration::from_secs(300)); // Every 5 minutes
         loop {
             interval.tick().await;
@@ -187,9 +197,9 @@ async fn main() -> Result<(), Box<dyn std::error::Error>> {
         }
     });
     
-    // Start WebDAV background sync scheduler
+    // Start WebDAV background sync scheduler on background runtime
     let webdav_scheduler = readur::webdav_scheduler::WebDAVScheduler::new(state.clone());
-    tokio::spawn(async move {
+    background_runtime.spawn(async move {
         info!("Starting WebDAV background sync scheduler");
         webdav_scheduler.start().await;
     });
diff --git a/src/models.rs b/src/models.rs
index 3cd2500..e148507 100644
--- a/src/models.rs
+++ b/src/models.rs
@@ -269,7 +269,7 @@ pub struct UpdateUser {
     pub password: Option<String>,
 }
 
-#[derive(Debug, Serialize, Deserialize, FromRow, ToSchema)]
+#[derive(Debug, Clone, Serialize, Deserialize, FromRow, ToSchema)]
 pub struct Settings {
     pub id: Uuid,
     pub user_id: Uuid,
diff --git a/src/routes/documents.rs b/src/routes/documents.rs
index 5c22a16..216112d 100644
--- a/src/routes/documents.rs
+++ b/src/routes/documents.rs
@@ -1,7 +1,7 @@
 use axum::{
     extract::{Multipart, Path, Query, State},
-    http::StatusCode,
-    response::Json,
+    http::{StatusCode, header::CONTENT_TYPE},
+    response::{Json, Response},
     routing::{get, post},
     Router,
 };
@@ -28,6 +28,8 @@ pub fn router() -> Router<Arc<AppState>> {
         .route("/", post(upload_document))
         .route("/", get(list_documents))
         .route("/:id/download", get(download_document))
+        .route("/:id/view", get(view_document))
+        .route("/:id/thumbnail", get(get_document_thumbnail))
         .route("/:id/ocr", get(get_document_ocr))
 }
 
@@ -111,10 +113,7 @@ async fn upload_document(
             let enable_background_ocr = settings.enable_background_ocr;
             
             if enable_background_ocr {
-                // Use connection pool from state to enqueue the document
-                let pool = sqlx::PgPool::connect(&state.config.database_url).await
-                    .map_err(|_| StatusCode::INTERNAL_SERVER_ERROR)?;
-                let queue_service = OcrQueueService::new(state.db.clone(), pool, 1);
+                let queue_service = OcrQueueService::new(state.db.clone(), state.db.pool.clone(), 1);
                 
                 // Calculate priority based on file size
                 let priority = match file_size {
@@ -212,6 +211,109 @@ async fn download_document(
     Ok(file_data)
 }
 
+#[utoipa::path(
+    get,
+    path = "/api/documents/{id}/view",
+    tag = "documents",
+    security(
+        ("bearer_auth" = [])
+    ),
+    params(
+        ("id" = uuid::Uuid, Path, description = "Document ID")
+    ),
+    responses(
+        (status = 200, description = "Document content for viewing in browser"),
+        (status = 404, description = "Document not found"),
+        (status = 401, description = "Unauthorized")
+    )
+)]
+async fn view_document(
+    State(state): State<Arc<AppState>>,
+    auth_user: AuthUser,
+    Path(document_id): Path<uuid::Uuid>,
+) -> Result<Response, StatusCode> {
+    let documents = state
+        .db
+        .get_documents_by_user_with_role(auth_user.user.id, auth_user.user.role, 1000, 0)
+        .await
+        .map_err(|_| StatusCode::INTERNAL_SERVER_ERROR)?;
+    
+    let document = documents
+        .into_iter()
+        .find(|doc| doc.id == document_id)
+        .ok_or(StatusCode::NOT_FOUND)?;
+    
+    let file_service = FileService::new(state.config.upload_path.clone());
+    let file_data = file_service
+        .read_file(&document.file_path)
+        .await
+        .map_err(|_| StatusCode::INTERNAL_SERVER_ERROR)?;
+    
+    // Determine content type from file extension
+    let content_type = mime_guess::from_path(&document.filename)
+        .first_or_octet_stream()
+        .to_string();
+    
+    let response = Response::builder()
+        .header(CONTENT_TYPE, content_type)
+        .header("Content-Length", file_data.len())
+        .body(file_data.into())
+        .map_err(|_| StatusCode::INTERNAL_SERVER_ERROR)?;
+    
+    Ok(response)
+}
+
+#[utoipa::path(
+    get,
+    path = "/api/documents/{id}/thumbnail",
+    tag = "documents", 
+    security(
+        ("bearer_auth" = [])
+    ),
+    params(
+        ("id" = uuid::Uuid, Path, description = "Document ID")
+    ),
+    responses(
+        (status = 200, description = "Document thumbnail image", content_type = "image/jpeg"),
+        (status = 404, description = "Document not found or thumbnail not available"),
+        (status = 401, description = "Unauthorized")
+    )
+)]
+async fn get_document_thumbnail(
+    State(state): State<Arc<AppState>>,
+    auth_user: AuthUser,
+    Path(document_id): Path<uuid::Uuid>,
+) -> Result<Response, StatusCode> {
+    let documents = state
+        .db
+        .get_documents_by_user_with_role(auth_user.user.id, auth_user.user.role, 1000, 0)
+        .await
+        .map_err(|_| StatusCode::INTERNAL_SERVER_ERROR)?;
+    
+    let document = documents
+        .into_iter()
+        .find(|doc| doc.id == document_id)
+        .ok_or(StatusCode::NOT_FOUND)?;
+    
+    let file_service = FileService::new(state.config.upload_path.clone());
+    
+    // Try to generate or get cached thumbnail
+    match file_service.get_or_generate_thumbnail(&document.file_path, &document.filename).await {
+        Ok(thumbnail_data) => {
+            Ok(Response::builder()
+                .header(CONTENT_TYPE, "image/jpeg")
+                .header("Content-Length", thumbnail_data.len())
+                .header("Cache-Control", "public, max-age=3600") // Cache for 1 hour
+                .body(thumbnail_data.into())
+                .map_err(|_| StatusCode::INTERNAL_SERVER_ERROR)?)
+        }
+        Err(_) => {
+            // Return a placeholder thumbnail or 404
+            Err(StatusCode::NOT_FOUND)
+        }
+    }
+}
+
 #[utoipa::path(
     get,
     path = "/api/documents/{id}/ocr",
diff --git a/src/routes/queue.rs b/src/routes/queue.rs
index 257bf66..a91cd5c 100644
--- a/src/routes/queue.rs
+++ b/src/routes/queue.rs
@@ -32,11 +32,7 @@ async fn get_queue_stats(
     State(state): State<Arc<AppState>>,
     _auth_user: AuthUser, // Require authentication
 ) -> Result<Json<serde_json::Value>, StatusCode> {
-    let pool = sqlx::PgPool::connect(&state.config.database_url)
-        .await
-        .map_err(|_| StatusCode::INTERNAL_SERVER_ERROR)?;
-    
-    let queue_service = OcrQueueService::new(state.db.clone(), pool, 1);
+    let queue_service = OcrQueueService::new(state.db.clone(), state.db.get_pool().clone(), 1);
     
     let stats = queue_service
         .get_stats()
@@ -69,11 +65,7 @@ async fn requeue_failed(
     State(state): State<Arc<AppState>>,
     _auth_user: AuthUser, // Require authentication
 ) -> Result<Json<serde_json::Value>, StatusCode> {
-    let pool = sqlx::PgPool::connect(&state.config.database_url)
-        .await
-        .map_err(|_| StatusCode::INTERNAL_SERVER_ERROR)?;
-    
-    let queue_service = OcrQueueService::new(state.db.clone(), pool, 1);
+    let queue_service = OcrQueueService::new(state.db.clone(), state.db.get_pool().clone(), 1);
     
     let count = queue_service
         .requeue_failed_items()
diff --git a/src/routes/webdav/webdav_sync.rs b/src/routes/webdav/webdav_sync.rs
index 7df23c3..1f266c8 100644
--- a/src/routes/webdav/webdav_sync.rs
+++ b/src/routes/webdav/webdav_sync.rs
@@ -2,11 +2,12 @@ use std::sync::Arc;
 use std::path::Path;
 use tracing::{error, info, warn};
 use chrono::Utc;
+use tokio::sync::Semaphore;
+use futures::stream::{FuturesUnordered, StreamExt};
 
 use crate::{
     AppState,
     models::{CreateWebDAVFile, UpdateWebDAVSyncState},
-    ocr_queue::OcrQueueService,
     file_service::FileService,
     webdav_service::{WebDAVConfig, WebDAVService},
 };
@@ -107,51 +108,78 @@ async fn perform_sync_internal(
             Ok(files) => {
                 info!("Found {} files in folder {}", files.len(), folder_path);
                 
-                let mut folder_files_processed = 0;
-                let files_to_process = files.len();
+                // Filter files for processing
+                let files_to_process: Vec<_> = files.into_iter()
+                    .filter(|file_info| {
+                        // Skip directories
+                        if file_info.is_directory {
+                            return false;
+                        }
+                        
+                        // Check if file extension is supported
+                        let file_extension = Path::new(&file_info.name)
+                            .extension()
+                            .and_then(|ext| ext.to_str())
+                            .unwrap_or("")
+                            .to_lowercase();
+                        
+                        config.file_extensions.contains(&file_extension)
+                    })
+                    .collect();
                 
-                for (idx, file_info) in files.into_iter().enumerate() {
-                    if file_info.is_directory {
-                        continue; // Skip directories
-                    }
+                info!("Processing {} files from folder {}", files_to_process.len(), folder_path);
+                
+                // Process files concurrently with a limit to avoid overwhelming the system
+                let concurrent_limit = 5; // Max 5 concurrent downloads
+                let semaphore = Arc::new(Semaphore::new(concurrent_limit));
+                let mut folder_files_processed = 0;
+                
+                // Create futures for processing each file concurrently
+                let mut file_futures = FuturesUnordered::new();
+                
+                for file_info in files_to_process.iter() {
+                    let state_clone = state.clone();
+                    let webdav_service_clone = webdav_service.clone();
+                    let file_info_clone = file_info.clone();
+                    let semaphore_clone = semaphore.clone();
                     
-                    // Check if file extension is supported
-                    let file_extension = Path::new(&file_info.name)
-                        .extension()
-                        .and_then(|ext| ext.to_str())
-                        .unwrap_or("")
-                        .to_lowercase();
+                    // Create a future for processing this file
+                    let future = async move {
+                        process_single_file(
+                            state_clone,
+                            user_id,
+                            &webdav_service_clone,
+                            &file_info_clone,
+                            enable_background_ocr,
+                            semaphore_clone,
+                        ).await
+                    };
                     
-                    if !config.file_extensions.contains(&file_extension) {
-                        continue; // Skip unsupported file types
-                    }
-                    
-                    // Check if we've already processed this file
-                    match state.db.get_webdav_file_by_path(user_id, &file_info.path).await {
-                        Ok(Some(existing_file)) => {
-                            // Check if file has changed (compare ETags)
-                            if existing_file.etag == file_info.etag {
-                                info!("Skipping unchanged file: {} (ETag: {})", file_info.path, file_info.etag);
-                                continue;
+                    file_futures.push(future);
+                }
+                
+                // Process files concurrently and collect results
+                while let Some(result) = file_futures.next().await {
+                    match result {
+                        Ok(processed) => {
+                            if processed {
+                                folder_files_processed += 1;
+                                info!("Successfully processed file ({} completed in this folder)", folder_files_processed);
                             }
-                            info!("File has changed: {} (old ETag: {}, new ETag: {})", 
-                                file_info.path, existing_file.etag, file_info.etag);
                         }
-                        Ok(None) => {
-                            info!("New file found: {}", file_info.path);
-                        }
-                        Err(e) => {
-                            warn!("Error checking existing file {}: {}", file_info.path, e);
+                        Err(error) => {
+                            error!("File processing error: {}", error);
+                            sync_errors.push(error);
                         }
                     }
                     
-                    // Update progress
+                    // Update progress periodically
                     let progress_update = UpdateWebDAVSyncState {
                         last_sync_at: Some(Utc::now()),
                         sync_cursor: None,
                         is_running: true,
                         files_processed: (total_files_processed + folder_files_processed) as i64,
-                        files_remaining: (files_to_process - idx - 1) as i64,
+                        files_remaining: (files_to_process.len() - folder_files_processed) as i64,
                         current_folder: Some(folder_path.clone()),
                         errors: sync_errors.clone(),
                     };
@@ -159,148 +187,6 @@ async fn perform_sync_internal(
                     if let Err(e) = state.db.update_webdav_sync_state(user_id, &progress_update).await {
                         warn!("Failed to update sync progress: {}", e);
                     }
-                    
-                    // Download the file
-                    match webdav_service.download_file(&file_info.path).await {
-                        Ok(file_data) => {
-                            info!("Downloaded file: {} ({} bytes)", file_info.name, file_data.len());
-                            
-                            // Create file service and save file to disk
-                            let file_service = FileService::new(state.config.upload_path.clone());
-                            
-                            let saved_file_path = match file_service.save_file(&file_info.name, &file_data).await {
-                                Ok(path) => path,
-                                Err(e) => {
-                                    error!("Failed to save file {}: {}", file_info.name, e);
-                                    sync_errors.push(format!("Failed to save {}: {}", file_info.name, e));
-                                    
-                                    // Record failed file in database
-                                    let failed_file = CreateWebDAVFile {
-                                        user_id,
-                                        webdav_path: file_info.path.clone(),
-                                        etag: file_info.etag.clone(),
-                                        last_modified: file_info.last_modified,
-                                        file_size: file_info.size,
-                                        mime_type: file_info.mime_type.clone(),
-                                        document_id: None,
-                                        sync_status: "failed".to_string(),
-                                        sync_error: Some(e.to_string()),
-                                    };
-                                    
-                                    if let Err(db_err) = state.db.create_or_update_webdav_file(&failed_file).await {
-                                        error!("Failed to record failed file: {}", db_err);
-                                    }
-                                    
-                                    continue;
-                                }
-                            };
-                            
-                            // Create document record
-                            let document = file_service.create_document(
-                                &file_info.name,
-                                &file_info.name, // original filename same as name
-                                &saved_file_path,
-                                file_info.size,
-                                &file_info.mime_type,
-                                user_id,
-                            );
-                            
-                            // Save document to database
-                            match state.db.create_document(document).await {
-                                Ok(saved_document) => {
-                                    info!("Created document record: {} (ID: {})", file_info.name, saved_document.id);
-                                    
-                                    // Record successful file in WebDAV tracking
-                                    let webdav_file = CreateWebDAVFile {
-                                        user_id,
-                                        webdav_path: file_info.path.clone(),
-                                        etag: file_info.etag.clone(),
-                                        last_modified: file_info.last_modified,
-                                        file_size: file_info.size,
-                                        mime_type: file_info.mime_type.clone(),
-                                        document_id: Some(saved_document.id),
-                                        sync_status: "completed".to_string(),
-                                        sync_error: None,
-                                    };
-                                    
-                                    if let Err(e) = state.db.create_or_update_webdav_file(&webdav_file).await {
-                                        error!("Failed to record WebDAV file: {}", e);
-                                    }
-                                    
-                                    // Add to OCR queue if enabled
-                                    if enable_background_ocr {
-                                        match sqlx::PgPool::connect(&state.config.database_url).await {
-                                            Ok(pool) => {
-                                                let queue_service = OcrQueueService::new(state.db.clone(), pool, 1);
-                                                
-                                                // Calculate priority based on file size
-                                                let priority = match file_info.size {
-                                                    0..=1048576 => 10,          // <= 1MB: highest priority
-                                                    ..=5242880 => 8,            // 1-5MB: high priority
-                                                    ..=10485760 => 6,           // 5-10MB: medium priority  
-                                                    ..=52428800 => 4,           // 10-50MB: low priority
-                                                    _ => 2,                     // > 50MB: lowest priority
-                                                };
-                                                
-                                                if let Err(e) = queue_service.enqueue_document(saved_document.id, priority, file_info.size).await {
-                                                    error!("Failed to enqueue document for OCR: {}", e);
-                                                } else {
-                                                    info!("Enqueued document {} for OCR processing", saved_document.id);
-                                                }
-                                            }
-                                            Err(e) => {
-                                                error!("Failed to connect to database for OCR queueing: {}", e);
-                                            }
-                                        }
-                                    }
-                                    
-                                    folder_files_processed += 1;
-                                }
-                                Err(e) => {
-                                    error!("Failed to create document record for {}: {}", file_info.name, e);
-                                    sync_errors.push(format!("Failed to create document {}: {}", file_info.name, e));
-                                    
-                                    // Update WebDAV file status to failed
-                                    let failed_file = CreateWebDAVFile {
-                                        user_id,
-                                        webdav_path: file_info.path.clone(),
-                                        etag: file_info.etag.clone(),
-                                        last_modified: file_info.last_modified,
-                                        file_size: file_info.size,
-                                        mime_type: file_info.mime_type.clone(),
-                                        document_id: None,
-                                        sync_status: "failed".to_string(),
-                                        sync_error: Some(e.to_string()),
-                                    };
-                                    
-                                    if let Err(db_err) = state.db.create_or_update_webdav_file(&failed_file).await {
-                                        error!("Failed to record failed file: {}", db_err);
-                                    }
-                                }
-                            }
-                        }
-                        Err(e) => {
-                            error!("Failed to download file {}: {}", file_info.path, e);
-                            sync_errors.push(format!("Failed to download {}: {}", file_info.path, e));
-                            
-                            // Record download failure
-                            let failed_file = CreateWebDAVFile {
-                                user_id,
-                                webdav_path: file_info.path.clone(),
-                                etag: file_info.etag.clone(),
-                                last_modified: file_info.last_modified,
-                                file_size: file_info.size,
-                                mime_type: file_info.mime_type.clone(),
-                                document_id: None,
-                                sync_status: "failed".to_string(),
-                                sync_error: Some(format!("Download failed: {}", e)),
-                            };
-                            
-                            if let Err(db_err) = state.db.create_or_update_webdav_file(&failed_file).await {
-                                error!("Failed to record failed file: {}", db_err);
-                            }
-                        }
-                    }
                 }
                 
                 total_files_processed += folder_files_processed;
@@ -314,4 +200,116 @@ async fn perform_sync_internal(
     
     info!("WebDAV sync completed for user {}: {} files processed", user_id, total_files_processed);
     Ok(total_files_processed)
+}
+
+// Helper function to process a single file asynchronously
+async fn process_single_file(
+    state: Arc<AppState>,
+    user_id: uuid::Uuid,
+    webdav_service: &WebDAVService,
+    file_info: &crate::models::FileInfo,
+    enable_background_ocr: bool,
+    semaphore: Arc<Semaphore>,
+) -> Result<bool, String> {
+    // Acquire semaphore permit to limit concurrent downloads
+    let _permit = semaphore.acquire().await.map_err(|e| format!("Semaphore error: {}", e))?;
+    
+    info!("Processing file: {}", file_info.path);
+    
+    // Check if we've already processed this file
+    match state.db.get_webdav_file_by_path(user_id, &file_info.path).await {
+        Ok(Some(existing_file)) => {
+            // Check if file has changed (compare ETags)
+            if existing_file.etag == file_info.etag {
+                info!("Skipping unchanged file: {} (ETag: {})", file_info.path, file_info.etag);
+                return Ok(false); // Not processed (no change)
+            }
+            info!("File has changed: {} (old ETag: {}, new ETag: {})", 
+                file_info.path, existing_file.etag, file_info.etag);
+        }
+        Ok(None) => {
+            info!("New file found: {}", file_info.path);
+        }
+        Err(e) => {
+            warn!("Error checking existing file {}: {}", file_info.path, e);
+        }
+    }
+    
+    // Download the file
+    let file_data = webdav_service.download_file(&file_info.path).await
+        .map_err(|e| format!("Failed to download {}: {}", file_info.path, e))?;
+    
+    info!("Downloaded file: {} ({} bytes)", file_info.name, file_data.len());
+    
+    // Create file service and save file to disk
+    let file_service = FileService::new(state.config.upload_path.clone());
+    
+    let saved_file_path = file_service.save_file(&file_info.name, &file_data).await
+        .map_err(|e| format!("Failed to save {}: {}", file_info.name, e))?;
+    
+    // Create document record
+    let file_service = FileService::new(state.config.upload_path.clone());
+    let document = file_service.create_document(
+        &file_info.name,
+        &file_info.name, // original filename same as name
+        &saved_file_path,
+        file_data.len() as i64,
+        &file_info.mime_type,
+        user_id,
+    );
+    
+    // Save document to database
+    let created_document = state.db.create_document(document)
+        .await
+        .map_err(|e| format!("Failed to create document {}: {}", file_info.name, e))?;
+    
+    info!("Created document record for {}: {}", file_info.name, created_document.id);
+    
+    // Record successful file in WebDAV files table
+    let webdav_file = CreateWebDAVFile {
+        user_id,
+        webdav_path: file_info.path.clone(),
+        etag: file_info.etag.clone(),
+        last_modified: file_info.last_modified,
+        file_size: file_info.size,
+        mime_type: file_info.mime_type.clone(),
+        document_id: Some(created_document.id),
+        sync_status: "synced".to_string(),
+        sync_error: None,
+    };
+    
+    if let Err(e) = state.db.create_or_update_webdav_file(&webdav_file).await {
+        error!("Failed to record WebDAV file: {}", e);
+    }
+    
+    // Queue for OCR processing if enabled
+    if enable_background_ocr {
+        match state.db.pool.acquire().await {
+            Ok(conn) => {
+                let queue_service = crate::ocr_queue::OcrQueueService::new(
+                    state.db.clone(), 
+                    state.db.pool.clone(), 
+                    4
+                );
+                
+                // Determine priority based on file size
+                let priority = if file_info.size <= 1024 * 1024 { 10 } // ≤ 1MB: High priority
+                else if file_info.size <= 5 * 1024 * 1024 { 8 } // ≤ 5MB: Medium priority  
+                else if file_info.size <= 10 * 1024 * 1024 { 6 } // ≤ 10MB: Normal priority
+                else if file_info.size <= 50 * 1024 * 1024 { 4 } // ≤ 50MB: Low priority
+                else { 2 }; // > 50MB: Lowest priority
+                
+                if let Err(e) = queue_service.enqueue_document(created_document.id, priority, file_info.size).await {
+                    error!("Failed to enqueue document for OCR: {}", e);
+                } else {
+                    info!("Enqueued document {} for OCR processing", created_document.id);
+                }
+            }
+            Err(e) => {
+                error!("Failed to connect to database for OCR queueing: {}", e);
+            }
+        }
+    }
+    
+    Ok(true) // Successfully processed
 }
\ No newline at end of file
diff --git a/src/watcher.rs b/src/watcher.rs
index 3579f91..2903155 100644
--- a/src/watcher.rs
+++ b/src/watcher.rs
@@ -10,14 +10,12 @@ use walkdir::WalkDir;
 
 use crate::{config::Config, db::Database, file_service::FileService, ocr_queue::OcrQueueService};
 
-pub async fn start_folder_watcher(config: Config) -> Result<()> {
+pub async fn start_folder_watcher(config: Config, db: Database) -> Result<()> {
     info!("Starting hybrid folder watcher on: {}", config.watch_folder);
     
-    // Initialize services
-    let db = Database::new(&config.database_url).await?;
-    let pool = sqlx::PgPool::connect(&config.database_url).await?;
+    // Initialize services with shared database
     let file_service = FileService::new(config.upload_path.clone());
-    let queue_service = OcrQueueService::new(db.clone(), pool, 1);
+    let queue_service = OcrQueueService::new(db.clone(), db.get_pool().clone(), 1);
     
     // Determine watch strategy based on filesystem type
     let watch_path = Path::new(&config.watch_folder);
diff --git a/src/webdav_service.rs b/src/webdav_service.rs
index c2401cf..6d42b58 100644
--- a/src/webdav_service.rs
+++ b/src/webdav_service.rs
@@ -46,6 +46,7 @@ impl Default for RetryConfig {
 
 
 
+#[derive(Clone)]
 pub struct WebDAVService {
     client: Client,
     config: WebDAVConfig,