diff --git a/src/pages/ProfileSettings.tsx b/src/pages/ProfileSettings.tsx
index ed39ca04..eb6150bd 100644
--- a/src/pages/ProfileSettings.tsx
+++ b/src/pages/ProfileSettings.tsx
@@ -80,8 +80,9 @@ export default function ProfileSettings() {
   const updateProfile = async () => {
     setLoading(true);
     try {
-      const updateData = {
-        username: profile.username,
+      const profileData = {
+        id: user?.id,
+        username: profile.username || '',
         full_name: profile.full_name,
         bio: profile.bio,
         phone_number: profile.phone_number,
@@ -92,17 +93,20 @@ export default function ProfileSettings() {
         updated_at: new Date().toISOString()
       };
 
-      console.log('💾 SAVING PROFILE DATA:', updateData);
+      console.log('💾 UPSERTING PROFILE DATA:', profileData);
       console.log('👤 User ID:', user?.id);
 
+      // Use upsert to create row if it doesn't exist, or update if it does
       const { data, error } = await supabase
         .from('profiles')
-        .update(updateData)
-        .eq('id', user?.id)
+        .upsert(profileData, {
+          onConflict: 'id',
+          ignoreDuplicates: false
+        })
         .select();
 
-      console.log('✅ Save response data:', data);
-      console.log('❌ Save error:', error);
+      console.log('✅ Upsert response data:', data);
+      console.log('❌ Upsert error:', error);
 
       if (error) throw error;
 
@@ -110,6 +114,9 @@ export default function ProfileSettings() {
         title: 'Success',
         description: 'Profile updated successfully',
       });
+
+      // Reload profile to ensure state is in sync
+      await loadProfile();
     } catch (error) {
       console.error('❌ Profile update failed:', error);
       toast({
diff --git a/supabase/migrations/003_fix_profile_creation.sql b/supabase/migrations/003_fix_profile_creation.sql
new file mode 100644
index 00000000..2ad9cf37
--- /dev/null
+++ b/supabase/migrations/003_fix_profile_creation.sql
@@ -0,0 +1,82 @@
+-- ========================================
+-- Fix Profile Creation Issue
+-- ========================================
+-- Adds INSERT policy and function to handle profile creation
+
+-- Add INSERT policy for profiles
+DROP POLICY IF EXISTS "Users can insert their own profile" ON public.profiles;
+
+CREATE POLICY "Users can insert their own profile"
+  ON public.profiles FOR INSERT
+  WITH CHECK (auth.uid() = id);
+
+-- Make username nullable and add default
+ALTER TABLE public.profiles
+  ALTER COLUMN username DROP NOT NULL;
+
+ALTER TABLE public.profiles
+  ALTER COLUMN username SET DEFAULT '';
+
+-- Create function to handle profile upsert
+CREATE OR REPLACE FUNCTION public.upsert_profile(
+  p_user_id UUID,
+  p_username TEXT DEFAULT '',
+  p_full_name TEXT DEFAULT '',
+  p_bio TEXT DEFAULT '',
+  p_phone_number TEXT DEFAULT '',
+  p_location TEXT DEFAULT '',
+  p_website TEXT DEFAULT '',
+  p_language TEXT DEFAULT 'en',
+  p_theme TEXT DEFAULT 'dark'
+)
+RETURNS SETOF public.profiles AS $$
+BEGIN
+  RETURN QUERY
+  INSERT INTO public.profiles (
+    id,
+    username,
+    full_name,
+    bio,
+    phone_number,
+    location,
+    website,
+    language,
+    theme,
+    updated_at
+  )
+  VALUES (
+    p_user_id,
+    p_username,
+    p_full_name,
+    p_bio,
+    p_phone_number,
+    p_location,
+    p_website,
+    p_language,
+    p_theme,
+    NOW()
+  )
+  ON CONFLICT (id)
+  DO UPDATE SET
+    username = COALESCE(NULLIF(EXCLUDED.username, ''), public.profiles.username),
+    full_name = EXCLUDED.full_name,
+    bio = EXCLUDED.bio,
+    phone_number = EXCLUDED.phone_number,
+    location = EXCLUDED.location,
+    website = EXCLUDED.website,
+    language = EXCLUDED.language,
+    theme = EXCLUDED.theme,
+    updated_at = NOW()
+  RETURNING *;
+END;
+$$ LANGUAGE plpgsql SECURITY DEFINER;
+
+-- Grant execute permission to authenticated users
+GRANT EXECUTE ON FUNCTION public.upsert_profile TO authenticated;
+
+-- Success message
+DO $$
+BEGIN
+  RAISE NOTICE 'Profile creation fix applied successfully!';
+  RAISE NOTICE 'Users can now create and update their profiles.';
+END $$;