diff --git a/api/libs/handlers/src/chats/mod.rs b/api/libs/handlers/src/chats/mod.rs
index da9791951..b753582c6 100644
--- a/api/libs/handlers/src/chats/mod.rs
+++ b/api/libs/handlers/src/chats/mod.rs
@@ -7,6 +7,7 @@ pub mod types;
 pub mod streaming_parser;
 pub mod context_loaders;
 pub mod list_chats_handler;
+pub mod sharing;
 
 pub use get_chat_handler::get_chat_handler;
 pub use get_raw_llm_messages_handler::get_raw_llm_messages_handler;
@@ -14,5 +15,6 @@ pub use post_chat_handler::post_chat_handler;
 pub use update_chats_handler::update_chats_handler;
 pub use delete_chats_handler::delete_chats_handler;
 pub use list_chats_handler::list_chats_handler;
+pub use sharing::create_chat_sharing_handler;
 pub use types::*;
 pub use streaming_parser::StreamingParser;
\ No newline at end of file
diff --git a/api/libs/handlers/src/chats/sharing/create_sharing_handler.rs b/api/libs/handlers/src/chats/sharing/create_sharing_handler.rs
new file mode 100644
index 000000000..19ec3fce3
--- /dev/null
+++ b/api/libs/handlers/src/chats/sharing/create_sharing_handler.rs
@@ -0,0 +1,123 @@
+use anyhow::{anyhow, Result};
+use database::{
+    enums::{AssetPermissionRole, AssetType, IdentityType},
+    pool::get_pg_pool,
+    schema::chats,
+};
+use diesel::{ExpressionMethods, QueryDsl};
+use diesel_async::RunQueryDsl;
+use sharing::{create_share_by_email, has_permission};
+use tracing;
+use uuid::Uuid;
+
+/// Creates sharing permissions for a chat
+///
+/// # Arguments
+/// * `chat_id` - The ID of the chat to share
+/// * `user_id` - The ID of the user creating the sharing permissions
+/// * `emails_and_roles` - List of (email, role) pairs representing the recipients and their access levels
+///
+/// # Returns
+/// * `Result<()>` - Success or error
+pub async fn create_chat_sharing_handler(
+    chat_id: &Uuid,
+    user_id: &Uuid,
+    emails_and_roles: Vec<(String, AssetPermissionRole)>,
+) -> Result<()> {
+    // 1. Validate the chat exists
+    let chat_exists = get_chat_exists(chat_id).await?;
+    
+    if !chat_exists {
+        return Err(anyhow!("Chat not found"));
+    }
+
+    // 2. Check if user has permission to share the chat (Owner or FullAccess)
+    let has_permission = has_permission(
+        *chat_id,
+        AssetType::Chat,
+        *user_id,
+        IdentityType::User,
+        AssetPermissionRole::FullAccess, // Owner role implicitly has FullAccess permissions
+    ).await?;
+
+    if !has_permission {
+        return Err(anyhow!("User does not have permission to share this chat"));
+    }
+
+    // 3. Process each email and create sharing permissions
+    for (email, role) in emails_and_roles {
+        match create_share_by_email(
+            &email,
+            *chat_id,
+            AssetType::Chat,
+            role,
+            *user_id,
+        ).await {
+            Ok(_) => {
+                tracing::info!("Created sharing permission for email: {} on chat: {} with role: {:?}", email, chat_id, role);
+            },
+            Err(e) => {
+                tracing::error!("Failed to create sharing for email {}: {}", email, e);
+                return Err(anyhow!("Failed to create sharing for email {}: {}", email, e));
+            }
+        }
+    }
+
+    Ok(())
+}
+
+/// Helper function to check if a chat exists
+async fn get_chat_exists(chat_id: &Uuid) -> Result<bool> {
+    let mut conn = get_pg_pool().get().await?;
+    
+    let chat_exists = chats::table
+        .filter(chats::id.eq(chat_id))
+        .filter(chats::deleted_at.is_null())
+        .count()
+        .get_result::<i64>(&mut conn)
+        .await?;
+    
+    Ok(chat_exists > 0)
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use database::enums::{AssetPermissionRole, AssetType, IdentityType};
+    use sharing::create_share;
+    use uuid::Uuid;
+
+    // Mock function to test permission checking
+    async fn mock_has_permission(
+        _asset_id: Uuid,
+        _asset_type: AssetType,
+        _identity_id: Uuid,
+        _identity_type: IdentityType,
+        _required_role: AssetPermissionRole,
+    ) -> Result<bool> {
+        // For testing, return true to simulate having permission
+        Ok(true)
+    }
+
+    // This test would require a test database setup
+    // Mock implementation to demonstrate testing approach
+    #[tokio::test]
+    async fn test_create_chat_sharing_handler_permissions() {
+        // This test would need a properly mocked database
+        // Just demonstrating the structure
+
+        // Setup test data
+        let chat_id = Uuid::new_v4();
+        let user_id = Uuid::new_v4();
+        let emails_and_roles = vec![
+            ("test@example.com".to_string(), AssetPermissionRole::Viewer),
+        ];
+
+        // In a real test, we would use a test database
+        // and set up the necessary mocks
+
+        // Example assertion
+        // let result = create_chat_sharing_handler(&chat_id, &user_id, emails_and_roles).await;
+        // assert!(result.is_ok());
+    }
+}
\ No newline at end of file
diff --git a/api/libs/handlers/src/chats/sharing/mod.rs b/api/libs/handlers/src/chats/sharing/mod.rs
new file mode 100644
index 000000000..887a3fddd
--- /dev/null
+++ b/api/libs/handlers/src/chats/sharing/mod.rs
@@ -0,0 +1,3 @@
+mod create_sharing_handler;
+
+pub use create_sharing_handler::create_chat_sharing_handler;
\ No newline at end of file
diff --git a/api/prds/active/api_chats_sharing_create.md b/api/prds/active/api_chats_sharing_create.md
index f56cccc78..0152b239e 100644
--- a/api/prds/active/api_chats_sharing_create.md
+++ b/api/prds/active/api_chats_sharing_create.md
@@ -4,6 +4,10 @@
 
 Users need the ability to share chats with other users via a REST API endpoint.
 
+## Status
+
+✅ Completed
+
 ## Technical Design
 
 ### Endpoint Specification
diff --git a/api/src/routes/rest/routes/chats/mod.rs b/api/src/routes/rest/routes/chats/mod.rs
index dd05489a9..91eb27050 100644
--- a/api/src/routes/rest/routes/chats/mod.rs
+++ b/api/src/routes/rest/routes/chats/mod.rs
@@ -9,6 +9,7 @@ mod get_chat_raw_llm_messages;
 mod list_chats;
 mod post_chat;
 mod update_chats;
+mod sharing;
 
 pub use delete_chats::delete_chats_route;
 pub use get_chat::get_chat_route;
@@ -25,4 +26,5 @@ pub fn router() -> Router {
         .route("/", delete(delete_chats_route))
         .route("/:id", get(get_chat_route))
         .route("/:id/raw_llm_messages", get(get_chat_raw_llm_messages))
+        .nest("/:id/sharing", sharing::router())
 }
diff --git a/api/src/routes/rest/routes/chats/sharing/create_sharing.rs b/api/src/routes/rest/routes/chats/sharing/create_sharing.rs
new file mode 100644
index 000000000..9ed71943f
--- /dev/null
+++ b/api/src/routes/rest/routes/chats/sharing/create_sharing.rs
@@ -0,0 +1,64 @@
+use axum::{
+    extract::Path,
+    http::StatusCode,
+    Extension,
+    Json,
+};
+use database::enums::AssetPermissionRole;
+use handlers::chats::create_chat_sharing_handler;
+use middleware::AuthenticatedUser;
+use serde::Deserialize;
+use tracing::info;
+use uuid::Uuid;
+
+use crate::routes::rest::ApiResponse;
+
+#[derive(Debug, Deserialize)]
+pub struct ShareRecipient {
+    pub email: String,
+    pub role: AssetPermissionRole,
+}
+
+/// POST /chats/:id/sharing - Create sharing permissions for a chat
+///
+/// # Arguments
+/// * `user` - The authenticated user
+/// * `id` - The chat ID
+/// * `request` - Array of recipients to share with (email and role)
+///
+/// # Returns
+/// * `ApiResponse<String>` - Success message
+/// * `(StatusCode, String)` - Error message with appropriate status code
+pub async fn create_chat_sharing_rest_handler(
+    Extension(user): Extension<AuthenticatedUser>,
+    Path(id): Path<Uuid>,
+    Json(request): Json<Vec<ShareRecipient>>,
+) -> Result<ApiResponse<String>, (StatusCode, String)> {
+    info!("Processing POST request for chat sharing with ID: {}, user_id: {}", id, user.id);
+
+    // Convert request to a list of (email, role) pairs
+    let emails_and_roles: Vec<(String, AssetPermissionRole)> = request
+        .into_iter()
+        .map(|recipient| (recipient.email, recipient.role))
+        .collect();
+
+    match create_chat_sharing_handler(&id, &user.id, emails_and_roles).await {
+        Ok(_) => Ok(ApiResponse::JsonData("Sharing permissions created successfully".to_string())),
+        Err(e) => {
+            tracing::error!("Error creating sharing permissions: {}", e);
+            
+            // Map specific errors to appropriate status codes
+            let error_message = e.to_string();
+            
+            if error_message.contains("not found") {
+                Err((StatusCode::NOT_FOUND, format!("Chat not found: {}", e)))
+            } else if error_message.contains("permission") {
+                Err((StatusCode::FORBIDDEN, format!("Insufficient permissions: {}", e)))
+            } else if error_message.contains("Invalid email") {
+                Err((StatusCode::BAD_REQUEST, format!("Invalid email: {}", e)))
+            } else {
+                Err((StatusCode::INTERNAL_SERVER_ERROR, format!("Failed to create sharing permissions: {}", e)))
+            }
+        }
+    }
+}
\ No newline at end of file
diff --git a/api/src/routes/rest/routes/chats/sharing/mod.rs b/api/src/routes/rest/routes/chats/sharing/mod.rs
new file mode 100644
index 000000000..76c052570
--- /dev/null
+++ b/api/src/routes/rest/routes/chats/sharing/mod.rs
@@ -0,0 +1,11 @@
+use axum::{
+    routing::{get, post},
+    Router,
+};
+
+mod create_sharing;
+
+pub fn router() -> Router {
+    Router::new()
+        .route("/", post(create_sharing::create_chat_sharing_rest_handler))
+}
\ No newline at end of file
diff --git a/api/tests/common/fixtures/chats.rs b/api/tests/common/fixtures/chats.rs
new file mode 100644
index 000000000..0aae5147c
--- /dev/null
+++ b/api/tests/common/fixtures/chats.rs
@@ -0,0 +1,39 @@
+use anyhow::Result;
+use chrono::Utc;
+use database::{
+    models::{Chat},
+    pool::get_pg_pool,
+    schema::chats,
+};
+use diesel::insert_into;
+use diesel_async::RunQueryDsl;
+use uuid::Uuid;
+
+use super::builder::TestFixtureBuilder;
+
+impl TestFixtureBuilder {
+    /// Create a test chat owned by a specific user
+    pub async fn create_chat(&mut self, user_id: &Uuid) -> Result<Chat> {
+        let mut conn = get_pg_pool().get().await?;
+        
+        let chat = Chat {
+            id: Uuid::new_v4(),
+            title: format!("Test Chat {}", Uuid::new_v4()),
+            organization_id: Uuid::new_v4(), // In a real fixture, we'd use a proper organization id
+            created_at: Utc::now(),
+            updated_at: Utc::now(),
+            deleted_at: None,
+            created_by: *user_id,
+            updated_by: *user_id,
+            publicly_accessible: false,
+            publicly_enabled_by: None,
+            public_expiry_date: None,
+        };
+        
+        insert_into(chats::table)
+            .values(&chat)
+            .get_result(&mut conn)
+            .await
+            .map_err(Into::into)
+    }
+}
\ No newline at end of file
diff --git a/api/tests/common/fixtures/mod.rs b/api/tests/common/fixtures/mod.rs
index a27259077..7987aee63 100644
--- a/api/tests/common/fixtures/mod.rs
+++ b/api/tests/common/fixtures/mod.rs
@@ -4,6 +4,7 @@ pub mod metrics;
 pub mod dashboards;
 pub mod builder;
 pub mod collections;
+pub mod chats;
 
 // Re-export commonly used fixtures
 pub use users::create_test_user;
diff --git a/api/tests/integration/chats/mod.rs b/api/tests/integration/chats/mod.rs
new file mode 100644
index 000000000..2ef0c29d9
--- /dev/null
+++ b/api/tests/integration/chats/mod.rs
@@ -0,0 +1 @@
+pub mod sharing;
\ No newline at end of file
diff --git a/api/tests/integration/chats/sharing/create_sharing_test.rs b/api/tests/integration/chats/sharing/create_sharing_test.rs
new file mode 100644
index 000000000..c980b4656
--- /dev/null
+++ b/api/tests/integration/chats/sharing/create_sharing_test.rs
@@ -0,0 +1,224 @@
+use anyhow::Result;
+use axum::{
+    extract::Extension,
+    routing::post,
+    Router,
+};
+use database::enums::{AssetPermissionRole, AssetType, IdentityType};
+use middleware::auth::AuthenticatedUser;
+use serde_json::{json, Value};
+use sharing::create_share;
+use src::routes::rest::routes::chats::create_chat_sharing_rest_handler;
+use tests::common::{
+    assertions::response::ResponseAssertions,
+    fixtures::builder::FixtureBuilder,
+    http::client::TestClient,
+};
+use uuid::Uuid;
+
+// Test for POST /chats/:id/sharing
+// Creates a test server, adds test data, and makes a request to share a chat
+#[tokio::test]
+async fn test_create_chat_sharing_success() -> Result<()> {
+    // Set up test fixtures
+    let mut fixture = FixtureBuilder::new().await?;
+    
+    // Create a test user (this will be the owner of the chat)
+    let user = fixture.create_user().await?;
+    
+    // Create a test chat owned by the user
+    let chat = fixture.create_chat(&user.id).await?;
+    
+    // Create another user to share with
+    let share_recipient = fixture.create_user().await?;
+    
+    // Create a manual permission so our test user has FullAccess to the chat
+    create_share(
+        chat.id,
+        AssetType::Chat,
+        user.id,
+        IdentityType::User,
+        AssetPermissionRole::Owner,
+        user.id,
+    )
+    .await?;
+    
+    // Set up the test server with our endpoint
+    let app = Router::new()
+        .route("/chats/:id/sharing", post(create_chat_sharing_rest_handler))
+        .layer(Extension(AuthenticatedUser {
+            id: user.id,
+            email: user.email.clone(),
+            org_id: None,
+        }));
+    
+    let client = TestClient::new(app);
+    
+    // Make the request
+    let payload = json!([
+        {
+            "email": share_recipient.email,
+            "role": "Viewer"
+        }
+    ]);
+    
+    let response = client
+        .post(&format!("/chats/{}/sharing", chat.id))
+        .json(&payload)
+        .send()
+        .await?;
+    
+    // Assert the response is successful
+    response.assert_status_ok()?;
+    
+    Ok(())
+}
+
+#[tokio::test]
+async fn test_create_chat_sharing_unauthorized() -> Result<()> {
+    // Set up test fixtures
+    let mut fixture = FixtureBuilder::new().await?;
+    
+    // Create two test users
+    let owner = fixture.create_user().await?;
+    let non_owner = fixture.create_user().await?;
+    
+    // Create a test chat owned by the first user
+    let chat = fixture.create_chat(&owner.id).await?;
+    
+    // Create a manual permission so the owner has Owner access
+    create_share(
+        chat.id,
+        AssetType::Chat,
+        owner.id,
+        IdentityType::User,
+        AssetPermissionRole::Owner,
+        owner.id,
+    )
+    .await?;
+    
+    // Set up the test server with our endpoint but authenticated as non-owner
+    let app = Router::new()
+        .route("/chats/:id/sharing", post(create_chat_sharing_rest_handler))
+        .layer(Extension(AuthenticatedUser {
+            id: non_owner.id, // This user doesn't have permission to share the chat
+            email: non_owner.email.clone(),
+            org_id: None,
+        }));
+    
+    let client = TestClient::new(app);
+    
+    // Make the request
+    let payload = json!([
+        {
+            "email": "test@example.com",
+            "role": "Viewer"
+        }
+    ]);
+    
+    let response = client
+        .post(&format!("/chats/{}/sharing", chat.id))
+        .json(&payload)
+        .send()
+        .await?;
+    
+    // Assert the response is forbidden
+    response.assert_status_forbidden()?;
+    
+    Ok(())
+}
+
+#[tokio::test]
+async fn test_create_chat_sharing_not_found() -> Result<()> {
+    // Set up test fixtures
+    let mut fixture = FixtureBuilder::new().await?;
+    
+    // Create a test user
+    let user = fixture.create_user().await?;
+    
+    // Generate a non-existent chat ID
+    let non_existent_chat_id = Uuid::new_v4();
+    
+    // Set up the test server with our endpoint
+    let app = Router::new()
+        .route("/chats/:id/sharing", post(create_chat_sharing_rest_handler))
+        .layer(Extension(AuthenticatedUser {
+            id: user.id,
+            email: user.email.clone(),
+            org_id: None,
+        }));
+    
+    let client = TestClient::new(app);
+    
+    // Make the request
+    let payload = json!([
+        {
+            "email": "test@example.com",
+            "role": "Viewer"
+        }
+    ]);
+    
+    let response = client
+        .post(&format!("/chats/{}/sharing", non_existent_chat_id))
+        .json(&payload)
+        .send()
+        .await?;
+    
+    // Assert the response is not found
+    response.assert_status_not_found()?;
+    
+    Ok(())
+}
+
+#[tokio::test]
+async fn test_create_chat_sharing_invalid_email() -> Result<()> {
+    // Set up test fixtures
+    let mut fixture = FixtureBuilder::new().await?;
+    
+    // Create a test user
+    let user = fixture.create_user().await?;
+    
+    // Create a test chat owned by the user
+    let chat = fixture.create_chat(&user.id).await?;
+    
+    // Create a manual permission so our test user has FullAccess to the chat
+    create_share(
+        chat.id,
+        AssetType::Chat,
+        user.id,
+        IdentityType::User,
+        AssetPermissionRole::Owner,
+        user.id,
+    )
+    .await?;
+    
+    // Set up the test server with our endpoint
+    let app = Router::new()
+        .route("/chats/:id/sharing", post(create_chat_sharing_rest_handler))
+        .layer(Extension(AuthenticatedUser {
+            id: user.id,
+            email: user.email.clone(),
+            org_id: None,
+        }));
+    
+    let client = TestClient::new(app);
+    
+    // Make the request with an invalid email format
+    let payload = json!([
+        {
+            "email": "invalid-email", // Missing @ symbol
+            "role": "Viewer"
+        }
+    ]);
+    
+    let response = client
+        .post(&format!("/chats/{}/sharing", chat.id))
+        .json(&payload)
+        .send()
+        .await?;
+    
+    // Assert the response is bad request
+    response.assert_status_bad_request()?;
+    
+    Ok(())
+}
\ No newline at end of file
diff --git a/api/tests/integration/chats/sharing/mod.rs b/api/tests/integration/chats/sharing/mod.rs
new file mode 100644
index 000000000..f5322ba7f
--- /dev/null
+++ b/api/tests/integration/chats/sharing/mod.rs
@@ -0,0 +1 @@
+pub mod create_sharing_test;
\ No newline at end of file
diff --git a/api/tests/integration/mod.rs b/api/tests/integration/mod.rs
index f58586681..3e15ea367 100644
--- a/api/tests/integration/mod.rs
+++ b/api/tests/integration/mod.rs
@@ -2,4 +2,5 @@
 pub mod dashboards;
 pub mod collections;
 pub mod metrics;
-pub mod threads_and_messages;
\ No newline at end of file
+pub mod threads_and_messages;
+pub mod chats;
\ No newline at end of file