diff --git a/docs/ORIENTATION.md b/docs/ORIENTATION.md
index 2fe8c58..2e8285a 100644
--- a/docs/ORIENTATION.md
+++ b/docs/ORIENTATION.md
@@ -18,9 +18,14 @@ The family has been using meal kit services (Blue Apron → EveryPlate → Hungr
 
 ### Current Status
 
-**Phase**: Documentation complete. Implementation NOT started.
+**Phase**: Phase 1 complete. Phase 2 (Database & Models) next.
 
-All planning documents are written and committed. The next step is Phase 1: Infrastructure & Foundation (setting up Docker, PostgreSQL, FastAPI skeleton, React frontend).
+Infrastructure skeleton is committed:
+- docker-compose.yml with 4 services (backend, frontend, db, nginx)
+- FastAPI backend with placeholder API routes
+- React frontend with Vite + Tailwind + placeholder pages
+- nginx reverse proxy config
+- SQLAlchemy models created (not yet connected to real endpoints)
 
 ---
 
@@ -105,7 +110,7 @@ User (web)  ───► React UI ──► nginx ──► FastAPI ────
 
 | Phase | Description | Status |
 |-------|-------------|--------|
-| 1 | Infrastructure (Docker, PostgreSQL, FastAPI, React, nginx) | **Not Started** |
+| 1 | Infrastructure (Docker, PostgreSQL, FastAPI, React, nginx) | **Complete** |
 | 2 | Database & Models (SQLAlchemy models, Alembic migrations) | Not Started |
 | 3 | API Endpoints (CRUD, meal plans, shopping list, feedback) | Not Started |
 | 4 | Lucky California Scraper (weekly ad, Playwright) | Not Started |
@@ -145,43 +150,29 @@ AI_IMAGE_ENABLED=false
 
 ## Next Steps
 
-### IMMEDIATE: Start Phase 1
+### IMMEDIATE: Phase 2 - Database & Models
 
-1. Create `docker-compose.yml` with all 4 services
-2. Create backend directory structure and FastAPI skeleton
-3. Create frontend with Vite + React + TypeScript + Tailwind
-4. Set up nginx reverse proxy config
-5. Create `.env.example` file
+1. Set up Alembic for migrations
+2. Create actual database tables from SQLAlchemy models
+3. Add seed data (basic ingredients, sample recipes)
+4. Create Pydantic schemas for API validation
+5. Implement real API endpoints (not just placeholders)
 
-### After Phase 1 Complete
+### After Phase 2 Complete
 
-- Verify all services start: `docker-compose up -d && docker-compose ps`
-- Test health endpoint: `curl localhost:8000/health`
-- Test frontend builds: `cd frontend && npm run build`
+- Verify migrations: `docker-compose exec backend alembic upgrade head`
+- Test database connectivity: `curl localhost:8000/health/db`
+- Test API endpoints with real data
 
 ### Current Git State
 
 ```bash
 git log --oneline
-# (empty - no commits yet)
+1328ec3 feat: add Phase 1 infrastructure skeleton
+0c5b0aa docs: add complete project documentation
 ```
 
-All documentation is written but NOT YET COMMITTED. Commit with:
-```bash
-git add docs/ README.md meal-planner-plan.md
-git commit -m "docs: add complete project documentation
-
-- SPEC.md: project specification and goals
-- ARCHITECTURE.md: system design and component descriptions
-- database-schema.md: PostgreSQL schema with all tables
-- implementation-plan.md: 12-phase implementation guide
-- RUNNING.md: deployment and troubleshooting guide
-- README.md: project overview
-
-Family profile: 2 adults, 2 children. Mushroom avoidance for 3/4.
-Approval workflow: email proposals, one denial swaps meal.
-Tech stack: FastAPI, PostgreSQL, React, Playwright, SendGrid."
-```
+Phase 1 skeleton complete and committed. Phase 2 (Database) is next.
 
 ---
 
@@ -253,4 +244,4 @@ docker-compose logs -f
 - **Wife**: Non-technical, will use web UI and email
 - **Children**: 2, eating habits vary (one OK with mushrooms)
 
-Last updated: 2026-05-04 (after documentation completion)
+Last updated: 2026-05-04 (Phase 1 complete, Phase 2 next)