diff --git a/src/app/api/providers/fal/models/route.ts b/src/app/api/providers/fal/models/route.ts
new file mode 100644
index 00000000..24418a42
--- /dev/null
+++ b/src/app/api/providers/fal/models/route.ts
@@ -0,0 +1,193 @@
+import { NextRequest, NextResponse } from "next/server";
+import { ProviderModel, ModelCapability } from "@/lib/providers";
+
+const FAL_API_BASE = "https://api.fal.ai/v1";
+
+/**
+ * Categories we care about for image/video generation
+ */
+const RELEVANT_CATEGORIES = [
+  "text-to-image",
+  "image-to-image",
+  "text-to-video",
+  "image-to-video",
+];
+
+/**
+ * Response schema from fal.ai models endpoint
+ */
+interface FalModelsResponse {
+  models: FalModel[];
+  next_cursor: string | null;
+  has_more: boolean;
+}
+
+/**
+ * Model schema from fal.ai API
+ */
+interface FalModel {
+  endpoint_id: string;
+  metadata: {
+    display_name: string;
+    category: string;
+    description: string;
+    status: "active" | "deprecated";
+    tags: string[];
+    updated_at: string;
+    is_favorited: boolean | null;
+    thumbnail_url: string;
+    model_url: string;
+    date: string;
+    highlighted: boolean;
+    pinned: boolean;
+    thumbnail_animated_url?: string;
+    github_url?: string;
+    license_type?: "commercial" | "research" | "private";
+  };
+  openapi?: Record<string, unknown>;
+}
+
+/**
+ * Map fal.ai category to ModelCapability
+ */
+function mapCategoryToCapability(category: string): ModelCapability | null {
+  if (RELEVANT_CATEGORIES.includes(category)) {
+    return category as ModelCapability;
+  }
+  return null;
+}
+
+/**
+ * Check if a model has a relevant category
+ */
+function isRelevantModel(model: FalModel): boolean {
+  return RELEVANT_CATEGORIES.includes(model.metadata.category);
+}
+
+/**
+ * Map fal.ai model to our normalized ProviderModel format
+ */
+function mapToProviderModel(model: FalModel): ProviderModel {
+  const capability = mapCategoryToCapability(model.metadata.category);
+
+  return {
+    id: model.endpoint_id,
+    name: model.metadata.display_name,
+    description: model.metadata.description,
+    provider: "fal",
+    capabilities: capability ? [capability] : [],
+    coverImage: model.metadata.thumbnail_url,
+  };
+}
+
+/**
+ * Build category filter query string for relevant categories
+ */
+function buildCategoryFilter(): string {
+  return RELEVANT_CATEGORIES.map((cat) => `category=${encodeURIComponent(cat)}`).join("&");
+}
+
+interface ModelsSuccessResponse {
+  success: true;
+  models: ProviderModel[];
+}
+
+interface ModelsErrorResponse {
+  success: false;
+  error: string;
+}
+
+type ModelsResponse = ModelsSuccessResponse | ModelsErrorResponse;
+
+/**
+ * GET /api/providers/fal/models
+ *
+ * Fetches available models from fal.ai API.
+ * API key is optional - fal.ai works without but with rate limits.
+ *
+ * Query params:
+ *   - search: Optional search query to filter models
+ *   - api_key: Alternative to X-API-Key header
+ */
+export async function GET(
+  request: NextRequest
+): Promise<NextResponse<ModelsResponse>> {
+  const requestId = Math.random().toString(36).substring(7);
+  console.log(`[fal.ai:${requestId}] Models request started`);
+
+  // Get optional API key from header or query param
+  const apiKey =
+    request.headers.get("X-API-Key") ||
+    request.nextUrl.searchParams.get("api_key");
+
+  const searchQuery = request.nextUrl.searchParams.get("search");
+  console.log(
+    `[fal.ai:${requestId}] ${searchQuery ? `Searching: "${searchQuery}"` : "Listing all models"}${apiKey ? " (with API key)" : " (no API key)"}`
+  );
+
+  try {
+    // Build URL with category filter and optional search
+    let url = `${FAL_API_BASE}/models?${buildCategoryFilter()}&status=active`;
+
+    if (searchQuery) {
+      url += `&q=${encodeURIComponent(searchQuery)}`;
+    }
+
+    // Build headers with optional auth
+    const headers: HeadersInit = {};
+    if (apiKey) {
+      headers["Authorization"] = `Key ${apiKey}`;
+    }
+
+    const response = await fetch(url, { headers });
+
+    if (!response.ok) {
+      const errorText = await response.text();
+      console.error(
+        `[fal.ai:${requestId}] API error ${response.status}: ${errorText}`
+      );
+
+      if (response.status === 401) {
+        return NextResponse.json<ModelsErrorResponse>(
+          {
+            success: false,
+            error: "Invalid API key",
+          },
+          { status: 401 }
+        );
+      }
+
+      return NextResponse.json<ModelsErrorResponse>(
+        {
+          success: false,
+          error: `fal.ai API error: ${response.status}`,
+        },
+        { status: response.status }
+      );
+    }
+
+    const data: FalModelsResponse = await response.json();
+
+    // Filter to relevant categories and map to ProviderModel
+    const models = data.models.filter(isRelevantModel).map(mapToProviderModel);
+
+    console.log(`[fal.ai:${requestId}] Returning ${models.length} models`);
+
+    return NextResponse.json<ModelsSuccessResponse>({
+      success: true,
+      models,
+    });
+  } catch (error) {
+    console.error(`[fal.ai:${requestId}] Fetch error:`, error);
+    return NextResponse.json<ModelsErrorResponse>(
+      {
+        success: false,
+        error:
+          error instanceof Error
+            ? error.message
+            : "Failed to fetch models from fal.ai",
+      },
+      { status: 500 }
+    );
+  }
+}