diff --git a/app/api/applications/team/route.ts b/app/api/applications/team/route.ts
new file mode 100644
index 0000000..08c9808
--- /dev/null
+++ b/app/api/applications/team/route.ts
@@ -0,0 +1,60 @@
+export const runtime = "nodejs";
+
+import { NextResponse } from "next/server";
+import { PrismaClient } from "@prisma/client";
+
+const prisma = new PrismaClient();
+
+export async function POST(request: Request) {
+  try {
+    const body = await request.json();
+    const { teamName, projectTitle, budget, description } = body;
+
+    // Server-side validation
+    if (!teamName || !projectTitle || !budget || !description) {
+      return NextResponse.json(
+        { error: "Missing required fields" },
+        { status: 400 },
+      );
+    }
+
+    // Parse budget to number
+    const parsedBudget = Number(String(budget).replace(/[^0-9.-]+/g, ""));
+    if (isNaN(parsedBudget)) {
+      return NextResponse.json(
+        { error: "Budget must be a valid number" },
+        { status: 400 },
+      );
+    }
+
+    // Create application in DB
+    const application = await prisma.application.create({
+      data: {
+        type: "TEAM",
+        status: "PENDING",
+        submitterName: teamName,
+        submitterEmail: "N/A", // placeholder, can be updated later
+        payload: {
+          teamName,
+          projectTitle,
+          budget: parsedBudget,
+          description,
+        },
+      },
+    });
+
+    return NextResponse.json(
+      {
+        success: true,
+        id: application.id,
+      },
+      { status: 201 },
+    );
+  } catch (error) {
+    console.error(error);
+    return NextResponse.json(
+      { error: "Failed to create application" },
+      { status: 500 },
+    );
+  }
+}