diff --git a/Marco.Pms.Services/Controllers/ExpenseController.cs b/Marco.Pms.Services/Controllers/ExpenseController.cs
index 2018306..0e86ea5 100644
--- a/Marco.Pms.Services/Controllers/ExpenseController.cs
+++ b/Marco.Pms.Services/Controllers/ExpenseController.cs
@@ -157,6 +157,18 @@ namespace Marco.Pms.Services.Controllers
             var response = await _expensesService.GetPaymentRequestFilterObjectAsync(loggedInEmployee, tenantId);
             return StatusCode(response.StatusCode, response);
         }
+        [HttpPost("payment-request/create")]
+        public async Task<IActionResult> CreatePaymentRequest([FromBody] PaymentRequestDto model)
+        {
+            var loggedInEmployee = await _userHelper.GetCurrentEmployeeAsync();
+            var response = await _expensesService.CreatePaymentRequestAsync(model, loggedInEmployee, tenantId);
+            if (response.Success)
+            {
+                var notification = new { LoggedInUserId = loggedInEmployee.Id, Keyword = "Payment_Request", Response = response.Data };
+                await _signalR.SendNotificationAsync(notification);
+            }
+            return StatusCode(response.StatusCode, response);
+        }
 
         #endregion
         #region =================================================================== Payment Request Functions ===================================================================
diff --git a/Marco.Pms.Services/Service/ExpensesService.cs b/Marco.Pms.Services/Service/ExpensesService.cs
index 26be364..b0ef9e7 100644
--- a/Marco.Pms.Services/Service/ExpensesService.cs
+++ b/Marco.Pms.Services/Service/ExpensesService.cs
@@ -7,6 +7,7 @@ using Marco.Pms.Model.Employees;
 using Marco.Pms.Model.Entitlements;
 using Marco.Pms.Model.Expenses;
 using Marco.Pms.Model.Filters;
+using Marco.Pms.Model.Master;
 using Marco.Pms.Model.MongoDBModels;
 using Marco.Pms.Model.MongoDBModels.Employees;
 using Marco.Pms.Model.MongoDBModels.Expenses;
@@ -1654,6 +1655,170 @@ namespace Marco.Pms.Services.Service
                 return ApiResponse<object>.ErrorResponse("Internal Exception Occured", ExceptionMapper(ex), 500);
             }
         }
+        public async Task<ApiResponse<object>> CreatePaymentRequestAsync(PaymentRequestDto model, Employee loggedInEmployee, Guid tenantId)
+        {
+            _logger.LogInfo("Start CreatePaymentRequestAsync for EmployeeId: {EmployeeId} TenantId: {TenantId}", loggedInEmployee.Id, tenantId);
+
+            string uIDPrefix = $"PR/{DateTime.Now:MMyy}";
+
+            try
+            {
+                using var scope = _serviceScopeFactory.CreateScope();
+                var permissionService = scope.ServiceProvider.GetRequiredService<PermissionServices>();
+                var hasUploadPermission = await permissionService.HasPermission(PermissionsMaster.ExpenseUpload, loggedInEmployee.Id);
+
+                if (!hasUploadPermission)
+                {
+                    _logger.LogWarning("Access DENIED: Employee {EmployeeId} has no permission to create payment requests.", loggedInEmployee.Id);
+                    return ApiResponse<object>.ErrorResponse("Access Denied", "You do not have permission to create any payment request.", 409);
+                }
+
+                // Execute database lookups concurrently
+                var expenseCategoryTask = Task.Run(async () =>
+                {
+                    await using var context = await _dbContextFactory.CreateDbContextAsync();
+                    return await context.ExpenseCategoryMasters.FirstOrDefaultAsync(et => et.Id == model.ExpenseCategoryId && et.IsActive);
+                });
+                var currencyTask = Task.Run(async () =>
+                {
+                    await using var context = await _dbContextFactory.CreateDbContextAsync();
+                    return await context.CurrencyMaster.FirstOrDefaultAsync(c => c.Id == model.CurrencyId);
+                });
+                var expenseStatusTask = Task.Run(async () =>
+                {
+                    await using var context = await _dbContextFactory.CreateDbContextAsync();
+                    return await context.ExpensesStatusMaster.FirstOrDefaultAsync(es => es.Id == Draft && es.IsActive);
+                });
+                var projectTask = Task.Run(async () =>
+                {
+                    await using var context = await _dbContextFactory.CreateDbContextAsync();
+                    return await context.Projects.FirstOrDefaultAsync(P => model.ProjectId.HasValue && P.Id == model.ProjectId.Value);
+                });
+
+                await Task.WhenAll(expenseCategoryTask, currencyTask, expenseStatusTask, projectTask);
+
+                var expenseCategory = await expenseCategoryTask;
+                if (expenseCategory == null)
+                {
+                    _logger.LogWarning("Expense Category not found with Id: {ExpenseCategoryId}", model.ExpenseCategoryId);
+                    return ApiResponse<object>.ErrorResponse("Expense Category not found.", "Expense Category not found.", 404);
+                }
+
+                var currency = await currencyTask;
+                if (currency == null)
+                {
+                    _logger.LogWarning("Currency not found with Id: {CurrencyId}", model.CurrencyId);
+                    return ApiResponse<object>.ErrorResponse("Currency not found.", "Currency not found.", 404);
+                }
+
+                var expenseStatus = await expenseStatusTask;
+                if (expenseStatus == null)
+                {
+                    _logger.LogWarning("Expense Status not found for Draft.");
+                    return ApiResponse<object>.ErrorResponse("Expense Status (Draft) not found.", "Expense Status not found.", 404);
+                }
+
+                var project = await projectTask;
+                // Project is optional so no error if not found
+
+                // Generate unique UID postfix based on existing requests for the current prefix
+                var lastPR = await _context.PaymentRequests.Where(pr => pr.UIDPrefix == uIDPrefix)
+                                                           .OrderByDescending(pr => pr.UIDPostfix)
+                                                           .FirstOrDefaultAsync();
+                int uIDPostfix = lastPR == null ? 1 : (lastPR.UIDPostfix + 1);
+
+                // Map DTO to PaymentRequest entity and set additional mandatory fields
+                var paymentRequest = _mapper.Map<PaymentRequest>(model);
+                paymentRequest.ExpenseStatusId = Draft;
+                paymentRequest.UIDPrefix = uIDPrefix;
+                paymentRequest.UIDPostfix = uIDPostfix;
+                paymentRequest.IsActive = true;
+                paymentRequest.CreatedAt = DateTime.UtcNow;
+                paymentRequest.CreatedById = loggedInEmployee.Id;
+                paymentRequest.TenantId = tenantId;
+
+                await _context.PaymentRequests.AddAsync(paymentRequest);
+
+                // 8. Add paymentRequest Log Entry
+                _context.StatusUpdateLogs.Add(new StatusUpdateLog
+                {
+                    Id = Guid.NewGuid(),
+                    EntityId = paymentRequest.Id,
+                    StatusId = Draft,
+                    NextStatusId = Draft,
+                    UpdatedById = loggedInEmployee.Id,
+                    UpdatedAt = DateTime.UtcNow,
+                    Comment = "Payment request is submited as draft",
+                    TenantId = tenantId
+                });
+
+                await _context.SaveChangesAsync();
+
+                // Process bill attachments if any
+                if (model.BillAttachments?.Any() == true)
+                {
+                    _logger.LogInfo("Processing {AttachmentCount} attachments for PaymentRequest Id: {PaymentRequestId}",
+                                    model.BillAttachments.Count, paymentRequest.Id);
+
+                    // Validate base64 attachments data before processing
+                    foreach (var attachment in model.BillAttachments)
+                    {
+                        if (string.IsNullOrWhiteSpace(attachment.Base64Data) || !_s3Service.IsBase64String(attachment.Base64Data))
+                        {
+                            _logger.LogWarning("Invalid or missing Base64 data for attachment: {FileName}", attachment.FileName ?? "N/A");
+                            throw new ArgumentException($"Invalid or missing Base64 data for attachment: {attachment.FileName ?? "N/A"}");
+                        }
+                    }
+
+                    var batchId = Guid.NewGuid();
+
+                    // Process all attachments concurrently
+                    var processingTasks = model.BillAttachments.Select(attachment =>
+                        ProcessSinglePaymentRequestAttachmentAsync(attachment, paymentRequest, loggedInEmployee.Id, tenantId, batchId)
+                    ).ToList();
+
+                    var results = await Task.WhenAll(processingTasks);
+
+                    // Add documents and payment request attachments after concurrent processing
+                    foreach (var (document, paymentRequestAttachment) in results)
+                    {
+                        _context.Documents.Add(document);
+                        _context.PaymentRequestAttachments.Add(paymentRequestAttachment);
+                    }
+
+                    await _context.SaveChangesAsync();
+
+                    _logger.LogInfo("{AttachmentCount} attachments processed and saved for PaymentRequest Id: {PaymentRequestId}",
+                                    results.Length, paymentRequest.Id);
+                }
+
+                // Prepare response VM
+                var response = _mapper.Map<PaymentRequestVM>(paymentRequest);
+                response.PaymentRequestUID = $"{paymentRequest.UIDPrefix}/{paymentRequest.UIDPostfix:D5}";
+                response.Currency = currency;
+                response.ExpenseCategory = _mapper.Map<ExpenseCategoryMasterVM>(expenseCategory);
+                response.ExpenseStatus = _mapper.Map<ExpensesStatusMasterVM>(expenseStatus);
+                response.Project = _mapper.Map<BasicProjectVM>(project);
+                response.CreatedBy = _mapper.Map<BasicEmployeeVM>(loggedInEmployee);
+
+                _logger.LogInfo("Payment request created successfully with UID: {PaymentRequestUID}", response.PaymentRequestUID);
+                return ApiResponse<object>.SuccessResponse(response, "Created the Payment Request Successfully.", 201);
+            }
+            catch (ArgumentException ex)
+            {
+                _logger.LogError(ex, "Argument error in CreatePaymentRequestAsync: {Message}", ex.Message);
+                return ApiResponse<object>.ErrorResponse(ex.Message, "Invalid data.", 400);
+            }
+            catch (Exception ex)
+            {
+                _logger.LogError(ex, "Unexpected error in CreatePaymentRequestAsync: {Message}", ex.Message);
+                return ApiResponse<object>.ErrorResponse("An error occurred while creating the payment request.", ex.Message, 500);
+            }
+            finally
+            {
+                _logger.LogInfo("End CreatePaymentRequestAsync for EmployeeId: {EmployeeId}", loggedInEmployee.Id);
+            }
+        }
 
         #endregion
         #region =================================================================== Payment Request Functions ===================================================================
diff --git a/Marco.Pms.Services/Service/ServiceInterfaces/IExpensesService.cs b/Marco.Pms.Services/Service/ServiceInterfaces/IExpensesService.cs
index e62045a..730c635 100644
--- a/Marco.Pms.Services/Service/ServiceInterfaces/IExpensesService.cs
+++ b/Marco.Pms.Services/Service/ServiceInterfaces/IExpensesService.cs
@@ -22,6 +22,7 @@ namespace Marco.Pms.Services.Service.ServiceInterfaces
         Task<ApiResponse<object>> GetPaymentRequestDetailsAsync(Guid? id, string? paymentRequestUId, Employee loggedInEmployee, Guid tenantId);
         Task<ApiResponse<object>> GetPayeeNameListAsync(Employee loggedInEmployee, Guid tenantId);
         Task<ApiResponse<object>> GetPaymentRequestFilterObjectAsync(Employee loggedInEmployee, Guid tenantId);
+        Task<ApiResponse<object>> CreatePaymentRequestAsync(PaymentRequestDto model, Employee loggedInEmployee, Guid tenantId);
         #endregion
         #region =================================================================== Payment Request Functions ===================================================================