diff --git a/docker/Dockerfile b/docker/Dockerfile
new file mode 100644
index 0000000000..4ddda9f59c
--- /dev/null
+++ b/docker/Dockerfile
@@ -0,0 +1,17 @@
+FROM python:3.11-slim
+
+WORKDIR /app
+
+# Copy GraphRAG code
+COPY graphrag ./graphrag
+COPY graphrag_api ./graphrag_api
+COPY pyproject.toml .
+
+# Install dependencies
+RUN pip install --no-cache-dir -e .
+
+# Expose port
+EXPOSE 8000
+
+# Run server
+CMD ["python", "-m", "graphrag_api.server"]
diff --git a/docker/docker-compose.yml b/docker/docker-compose.yml
new file mode 100644
index 0000000000..b36c8e5e0c
--- /dev/null
+++ b/docker/docker-compose.yml
@@ -0,0 +1,15 @@
+version: "3.8"
+
+services:
+  graphrag-api:
+    build:
+      context: ..
+      dockerfile: docker/Dockerfile
+    ports:
+      - "8000:8000"
+    environment:
+      - DATA_ROOT=/data
+      - OPENAI_API_KEY=${OPENAI_API_KEY}
+    volumes:
+      - ./data:/data
+    command: python -m graphrag_api.server
diff --git a/graphrag_api/server.py b/graphrag_api/server.py
new file mode 100644
index 0000000000..a5b9785402
--- /dev/null
+++ b/graphrag_api/server.py
@@ -0,0 +1,169 @@
+"""FastAPI server wrapper for GraphRAG queries."""
+from fastapi import FastAPI, HTTPException
+from pydantic import BaseModel
+from typing import Optional, List
+import os
+from pathlib import Path
+
+# Import GraphRAG's query engine
+from graphrag.query.cli import main as graphrag_query
+from graphrag.query.context_builder import ContextBuilder
+from graphrag.query.llm_client import LLMClient
+
+app = FastAPI(
+    title="GraphRAG API",
+    description="REST API for querying GraphRAG knowledge graphs",
+    version="0.1.0"
+)
+
+
+class QueryRequest(BaseModel):
+    """Request body for queries."""
+    query: str
+    mode: str = "local"  # local or global
+    temperature: float = 0.0
+    top_p: float = 1.0
+
+
+class QueryResponse(BaseModel):
+    """Response body for queries."""
+    answer: str
+    citations: List[str]
+    search_mode: str
+    execution_time_ms: float
+
+
+class ConversationMessage(BaseModel):
+    """Single message in conversation."""
+    role: str  # "user" or "assistant"
+    content: str
+    citations: Optional[List[str]] = None
+
+
+class ConversationRequest(BaseModel):
+    """Request for multi-turn conversation."""
+    query: str
+    history: List[ConversationMessage] = []
+    mode: str = "local"
+
+
+# Initialize GraphRAG
+def init_graphrag(data_path: str):
+    """Load GraphRAG index from path."""
+    # This will load the GraphRAG knowledge graph
+    return ContextBuilder(data_path=Path(data_path))
+
+
+@app.get("/health")
+async def health_check():
+    """Health check endpoint."""
+    return {"status": "ok", "service": "GraphRAG API"}
+
+
+@app.post("/query", response_model=QueryResponse)
+async def query(request: QueryRequest):
+    """
+    Query the GraphRAG knowledge graph.
+    
+    Example:
+        POST /query
+        {
+            "query": "What are the main themes?",
+            "mode": "local",
+            "temperature": 0.0
+        }
+    """
+    try:
+        import time
+        start = time.time()
+        
+        # Execute query using GraphRAG
+        answer = await execute_query(
+            query_text=request.query,
+            mode=request.mode,
+            temperature=request.temperature
+        )
+        
+        elapsed = (time.time() - start) * 1000
+        
+        return QueryResponse(
+            answer=answer["response"],
+            citations=answer.get("citations", []),
+            search_mode=request.mode,
+            execution_time_ms=elapsed
+        )
+    except Exception as e:
+        raise HTTPException(status_code=500, detail=str(e))
+
+
+@app.post("/conversation")
+async def conversation(request: ConversationRequest):
+    """
+    Multi-turn conversation endpoint.
+    Maintains conversation history and context.
+    """
+    try:
+        # Build context from conversation history
+        history_context = "\n".join([
+            f"{msg.role}: {msg.content}" 
+            for msg in request.history
+        ])
+        
+        # Execute query with historical context
+        answer = await execute_query(
+            query_text=request.query,
+            mode=request.mode,
+            history_context=history_context
+        )
+        
+        return {
+            "response": answer["response"],
+            "citations": answer.get("citations", []),
+            "conversation_id": "session_123"  # TODO: implement session tracking
+        }
+    except Exception as e:
+        raise HTTPException(status_code=500, detail=str(e))
+
+
+@app.get("/datasets")
+async def list_datasets():
+    """List available GraphRAG datasets."""
+    # TODO: implement dataset discovery
+    return {"datasets": []}
+
+
+@app.get("/config")
+async def get_config():
+    """Get current GraphRAG configuration."""
+    return {"config": {}}
+
+
+async def execute_query(query_text: str, mode: str = "local", 
+                       temperature: float = 0.0,
+                       history_context: Optional[str] = None) -> dict:
+    """
+    Execute a GraphRAG query.
+    
+    This wraps the internal GraphRAG query engine.
+    """
+    # TODO: Implement actual GraphRAG query execution
+    # For now, this is a placeholder
+    return {
+        "response": f"Query received: {query_text}",
+        "citations": [],
+        "mode": mode
+    }
+
+
+if __name__ == "__main__":
+    import uvicorn
+    
+    # Get data path from environment
+    data_root = os.getenv("DATA_ROOT", "./data")
+    
+    uvicorn.run(
+        app,
+        host="0.0.0.0",
+        port=8000,
+        log_level="info"
+    )
diff --git a/tests/unit/test_graphrag_api.py b/tests/unit/test_graphrag_api.py
new file mode 100644
index 0000000000..9ce61922ab
--- /dev/null
+++ b/tests/unit/test_graphrag_api.py
@@ -0,0 +1,54 @@
+"""Tests for GraphRAG API."""
+import pytest
+from fastapi.testclient import TestClient
+from graphrag_api.server import app
+
+
+@pytest.fixture
+def client():
+    """Create test client."""
+    return TestClient(app)
+
+
+def test_health_check(client):
+    """Test health check endpoint."""
+    response = client.get("/health")
+    assert response.status_code == 200
+    assert response.json()["status"] == "ok"
+
+
+def test_query_local(client):
+    """Test local query."""
+    response = client.post("/query", json={
+        "query": "What happened?",
+        "mode": "local"
+    })
+    assert response.status_code == 200
+    assert "answer" in response.json()
+
+
+def test_query_global(client):
+    """Test global query."""
+    response = client.post("/query", json={
+        "query": "What are the main themes?",
+        "mode": "global"
+    })
+    assert response.status_code == 200
+
+
+def test_conversation(client):
+    """Test multi-turn conversation."""
+    response = client.post("/conversation", json={
+        "query": "Tell me about X",
+        "history": [
+            {
+                "role": "user",
+                "content": "What is GraphRAG?"
+            },
+            {
+                "role": "assistant", 
+                "content": "GraphRAG is a graph-based RAG system"
+            }
+        ]
+    })
+    assert response.status_code == 200