diff --git a/lambdas/vendor_reply/handler.py b/lambdas/vendor_reply/handler.py
new file mode 100644
index 0000000..72ee313
--- /dev/null
+++ b/lambdas/vendor_reply/handler.py
@@ -0,0 +1,125 @@
+import email
+import json
+import logging
+import os
+import re
+from datetime import datetime
+from email import policy
+
+import boto3
+
+logger = logging.getLogger()
+logger.setLevel(logging.INFO)
+
+s3 = boto3.client("s3")
+dynamodb = boto3.resource("dynamodb")
+
+VENDOR_REPLIES_TABLE = os.environ.get("VENDOR_REPLIES_TABLE", "VendorReplies")
+
+
+def parse_raw_email(raw_bytes):
+    msg = email.message_from_bytes(raw_bytes, policy=policy.default)
+
+    subject = msg.get("Subject", "")
+    sender = msg.get("From", "")
+    to = msg.get("To", "")
+    date = msg.get("Date", "")
+
+    body = ""
+    if msg.is_multipart():
+        for part in msg.walk():
+            content_type = part.get_content_type()
+            if content_type == "text/plain":
+                body = part.get_content()
+                break
+            elif content_type == "text/html" and not body:
+                body = part.get_content()
+    else:
+        body = msg.get_content()
+
+    body = strip_quoted_reply(body)
+
+    return {
+        "subject": subject,
+        "sender": sender,
+        "to": to,
+        "date": date,
+        "body": body,
+    }
+
+
+def strip_quoted_reply(text):
+    if not text:
+        return ""
+    lines = text.split("\n")
+    result = []
+    for line in lines:
+        if re.match(r"^On .+ wrote:$", line.strip()):
+            break
+        if line.strip().startswith("---Original Message---"):
+            break
+        if line.strip().startswith("> "):
+            continue
+        result.append(line)
+    return "\n".join(result).strip()
+
+
+def extract_ids_from_subject(subject):
+    wo_match = re.search(r"\[WO-(\d{8})", subject)
+    dsp_match = re.search(r"(DSP-\d{5})", subject)
+
+    wo_number = wo_match.group(1) if wo_match else None
+    dispatch_number = dsp_match.group(1) if dsp_match else None
+
+    return wo_number, dispatch_number
+
+
+def extract_sender_email(sender):
+    match = re.search(r"<(.+?)>", sender)
+    if match:
+        return match.group(1)
+    return sender.strip()
+
+
+def handler(event, context):
+    for record in event.get("Records", []):
+        bucket = record["s3"]["bucket"]["name"]
+        key = record["s3"]["object"]["key"]
+
+        logger.info(f"Processing vendor reply: s3://{bucket}/{key}")
+
+        response = s3.get_object(Bucket=bucket, Key=key)
+        raw_email = response["Body"].read()
+
+        email_data = parse_raw_email(raw_email)
+        logger.info(f"Subject: {email_data['subject']}")
+        logger.info(f"From: {email_data['sender']}")
+
+        wo_number, dispatch_number = extract_ids_from_subject(email_data["subject"])
+
+        if not wo_number:
+            logger.warning(f"No WO number found in subject, skipping: {key}")
+            continue
+
+        sender_email = extract_sender_email(email_data["sender"])
+        now = datetime.utcnow().isoformat()
+        reply_id = f"{wo_number}#{dispatch_number or 'none'}#{now}"
+
+        table = dynamodb.Table(VENDOR_REPLIES_TABLE)
+        table.put_item(
+            Item={
+                "internal_wo_number": wo_number,
+                "reply_id": reply_id,
+                "dispatch_number": dispatch_number or "",
+                "sender_email": sender_email,
+                "reply_text": email_data["body"],
+                "subject": email_data["subject"],
+                "received_at": now,
+                "source_email_s3_key": f"s3://{bucket}/{key}",
+                "synced": False,
+            }
+        )
+
+        logger.info(f"Saved vendor reply: WO={wo_number} DSP={dispatch_number} from={sender_email}")
+
+    return {"statusCode": 200, "body": "OK"}