diff --git a/admin/src/pages/sms/NewConversationModal.tsx b/admin/src/pages/sms/NewConversationModal.tsx
new file mode 100644
index 00000000..d3748165
--- /dev/null
+++ b/admin/src/pages/sms/NewConversationModal.tsx
@@ -0,0 +1,231 @@
+import { useState, useEffect } from 'react';
+import { Modal, Input, List, Tag, Typography, Space, Button, App } from 'antd';
+import { SendOutlined, PhoneOutlined, UserOutlined } from '@ant-design/icons';
+import { api } from '@/lib/api';
+import { useDebounce } from '@/hooks/useDebounce';
+import type { SmsContactSearchResult, SmsConversation } from '@/types/sms';
+
+const { Text } = Typography;
+const { TextArea } = Input;
+
+const SOURCE_LABELS: Record<string, { label: string; color: string }> = {
+  sms_contact: { label: 'SMS List', color: 'purple' },
+  crm_contact: { label: 'CRM', color: 'blue' },
+  conversation: { label: 'Previous', color: 'default' },
+};
+
+interface Props {
+  open: boolean;
+  onClose: () => void;
+  onCreated: (conv: SmsConversation) => void;
+}
+
+export default function NewConversationModal({ open, onClose, onCreated }: Props) {
+  const { message } = App.useApp();
+
+  const [query, setQuery] = useState('');
+  const [results, setResults] = useState<SmsContactSearchResult[]>([]);
+  const [searching, setSearching] = useState(false);
+  const [selectedContact, setSelectedContact] = useState<SmsContactSearchResult | null>(null);
+  const [msgText, setMsgText] = useState('');
+  const [sending, setSending] = useState(false);
+
+  const debouncedQuery = useDebounce(query, 300);
+
+  // Search contacts when debounced query changes
+  useEffect(() => {
+    if (!debouncedQuery || debouncedQuery.length < 2) {
+      setResults([]);
+      return;
+    }
+    let cancelled = false;
+    setSearching(true);
+    api.get<{ results: SmsContactSearchResult[] }>('/sms/conversations/contact-search', {
+      params: { q: debouncedQuery },
+    }).then(({ data }) => {
+      if (!cancelled) setResults(data.results);
+    }).catch(() => {
+      if (!cancelled) setResults([]);
+    }).finally(() => {
+      if (!cancelled) setSearching(false);
+    });
+    return () => { cancelled = true; };
+  }, [debouncedQuery]);
+
+  // Check if query looks like a phone number (mostly digits, 7+)
+  const digitsOnly = query.replace(/\D/g, '');
+  const isPhoneQuery = digitsOnly.length >= 7;
+  const phoneAlreadyInResults = isPhoneQuery && results.some((r) => r.phone.includes(digitsOnly));
+
+  const handleSelect = (contact: SmsContactSearchResult) => {
+    setSelectedContact(contact);
+  };
+
+  const handleManualPhone = () => {
+    setSelectedContact({
+      phone: digitsOnly,
+      name: null,
+      source: 'sms_contact',
+      sourceId: '',
+    });
+  };
+
+  const handleSend = async () => {
+    if (!selectedContact || !msgText.trim()) return;
+    setSending(true);
+    try {
+      const { data } = await api.post<SmsConversation>('/sms/conversations', {
+        phone: selectedContact.phone,
+        message: msgText.trim(),
+        contactName: selectedContact.name || undefined,
+        contactId: selectedContact.contactId || undefined,
+      });
+      message.success('Message queued');
+      onCreated(data);
+      handleReset();
+    } catch (err: any) {
+      const errMsg = err.response?.data?.error || 'Failed to send message';
+      message.error(errMsg);
+    } finally {
+      setSending(false);
+    }
+  };
+
+  const handleReset = () => {
+    setQuery('');
+    setResults([]);
+    setSelectedContact(null);
+    setMsgText('');
+    onClose();
+  };
+
+  const handleBack = () => {
+    setSelectedContact(null);
+    setMsgText('');
+  };
+
+  return (
+    <Modal
+      title="New Conversation"
+      open={open}
+      onCancel={handleReset}
+      footer={null}
+      destroyOnHidden
+      width={480}
+    >
+      {!selectedContact ? (
+        // Step 1: Contact Search
+        <div>
+          <Input
+            placeholder="Search by name or phone number..."
+            prefix={<PhoneOutlined />}
+            value={query}
+            onChange={(e) => setQuery(e.target.value)}
+            allowClear
+            autoFocus
+          />
+
+          <div style={{ marginTop: 12, maxHeight: 320, overflowY: 'auto' }}>
+            {/* Manual phone entry option */}
+            {isPhoneQuery && !phoneAlreadyInResults && (
+              <div
+                onClick={handleManualPhone}
+                style={{
+                  padding: '8px 12px',
+                  cursor: 'pointer',
+                  borderRadius: 6,
+                  marginBottom: 4,
+                  border: '1px dashed rgba(255,255,255,0.15)',
+                }}
+                onMouseEnter={(e) => (e.currentTarget.style.background = 'rgba(255,255,255,0.06)')}
+                onMouseLeave={(e) => (e.currentTarget.style.background = 'transparent')}
+              >
+                <Space>
+                  <PhoneOutlined />
+                  <Text>Use number: {digitsOnly}</Text>
+                  <Tag color="green">Manual</Tag>
+                </Space>
+              </div>
+            )}
+
+            <List
+              loading={searching}
+              dataSource={results}
+              locale={{ emptyText: query.length >= 2 ? 'No contacts found' : 'Type to search...' }}
+              renderItem={(item) => (
+                <List.Item
+                  onClick={() => handleSelect(item)}
+                  style={{ cursor: 'pointer', padding: '8px 12px', borderRadius: 6 }}
+                  onMouseEnter={(e) => (e.currentTarget.style.background = 'rgba(255,255,255,0.06)')}
+                  onMouseLeave={(e) => (e.currentTarget.style.background = 'transparent')}
+                >
+                  <div style={{ display: 'flex', justifyContent: 'space-between', width: '100%', alignItems: 'center' }}>
+                    <Space>
+                      <UserOutlined />
+                      <div>
+                        <Text strong>{item.name || item.phone}</Text>
+                        {item.name && <Text type="secondary" style={{ marginLeft: 8, fontSize: 12 }}>{item.phone}</Text>}
+                      </div>
+                    </Space>
+                    <Tag color={SOURCE_LABELS[item.source]?.color}>
+                      {SOURCE_LABELS[item.source]?.label}
+                    </Tag>
+                  </div>
+                </List.Item>
+              )}
+            />
+          </div>
+        </div>
+      ) : (
+        // Step 2: Compose Message
+        <div>
+          <Button type="link" onClick={handleBack} style={{ padding: 0, marginBottom: 8 }}>
+            &larr; Change contact
+          </Button>
+
+          <div style={{
+            padding: '10px 14px',
+            background: 'rgba(255,255,255,0.04)',
+            borderRadius: 8,
+            marginBottom: 12,
+          }}>
+            <Space>
+              <UserOutlined />
+              <div>
+                {selectedContact.name && <Text strong>{selectedContact.name}</Text>}
+                <Text type="secondary" style={{ marginLeft: selectedContact.name ? 8 : 0 }}>
+                  {selectedContact.phone}
+                </Text>
+              </div>
+            </Space>
+          </div>
+
+          <TextArea
+            rows={4}
+            value={msgText}
+            onChange={(e) => setMsgText(e.target.value)}
+            placeholder="Type your message..."
+            maxLength={1600}
+            showCount
+            autoFocus
+          />
+
+          <div style={{ display: 'flex', justifyContent: 'flex-end', marginTop: 12 }}>
+            <Space>
+              <Button onClick={handleReset}>Cancel</Button>
+              <Button
+                type="primary"
+                icon={<SendOutlined />}
+                onClick={handleSend}
+                loading={sending}
+                disabled={!msgText.trim()}
+              >
+                Send
+              </Button>
+            </Space>
+          </div>
+        </div>
+      )}
+    </Modal>
+  );
+}
diff --git a/admin/src/pages/sms/SmsConversationsPage.tsx b/admin/src/pages/sms/SmsConversationsPage.tsx
index 68145dc5..c012d6f3 100644
--- a/admin/src/pages/sms/SmsConversationsPage.tsx
+++ b/admin/src/pages/sms/SmsConversationsPage.tsx
@@ -1,10 +1,11 @@
 import { useState, useEffect, useCallback, useRef } from 'react';
 import { Row, Col, List, Card, Input, Button, Tag, Badge, Space, Typography, Empty, Spin, App, Checkbox, Select, Collapse } from 'antd';
-import { SendOutlined, CheckOutlined, ReadOutlined, CloseCircleOutlined, LinkOutlined } from '@ant-design/icons';
+import { SendOutlined, CheckOutlined, ReadOutlined, CloseCircleOutlined, LinkOutlined, PlusOutlined } from '@ant-design/icons';
 import { api } from '@/lib/api';
 import type { SmsConversation, SmsPaginatedResponse } from '@/types/sms';
 import type { AppOutletContext } from '@/types/api';
 import { useOutletContext, Link } from 'react-router-dom';
+import NewConversationModal from './NewConversationModal';
 
 const { Text, Paragraph } = Typography;
 const { Search, TextArea } = Input;
@@ -37,6 +38,9 @@ export default function SmsConversationsPage() {
   const [notesSaving, setNotesSaving] = useState(false);
   const [tagsSaving, setTagsSaving] = useState(false);
 
+  // New conversation modal
+  const [newConvOpen, setNewConvOpen] = useState(false);
+
   // Bulk selection state
   const [selectedIds, setSelectedIds] = useState<Set<string>>(new Set());
   const [bulkLoading, setBulkLoading] = useState(false);
@@ -179,12 +183,17 @@ export default function SmsConversationsPage() {
     <Row gutter={16} style={{ height: 'calc(100vh - 200px)', minHeight: 400 }}>
       {/* Conversation List (left panel) */}
       <Col xs={24} md={8} style={{ height: '100%', display: 'flex', flexDirection: 'column' }}>
-        <Search
-          placeholder="Search by phone or name..."
-          onSearch={(v) => { setSearch(v); fetchConversations(v); }}
-          allowClear
-          style={{ marginBottom: 8 }}
-        />
+        <div style={{ display: 'flex', gap: 8, marginBottom: 8 }}>
+          <Search
+            placeholder="Search by phone or name..."
+            onSearch={(v) => { setSearch(v); fetchConversations(v); }}
+            allowClear
+            style={{ flex: 1 }}
+          />
+          <Button type="primary" icon={<PlusOutlined />} onClick={() => setNewConvOpen(true)}>
+            New
+          </Button>
+        </div>
 
         {/* Bulk action bar */}
         {selectedIds.size > 0 && (
@@ -396,6 +405,15 @@ export default function SmsConversationsPage() {
           </Card>
         )}
       </Col>
+
+      <NewConversationModal
+        open={newConvOpen}
+        onClose={() => setNewConvOpen(false)}
+        onCreated={(conv) => {
+          fetchConversations();
+          if (conv) setSelected(conv);
+        }}
+      />
     </Row>
   );
 }
diff --git a/api/src/modules/sms/conversations/sms-conversations.routes.ts b/api/src/modules/sms/conversations/sms-conversations.routes.ts
index aa2f403f..5929ee8d 100644
--- a/api/src/modules/sms/conversations/sms-conversations.routes.ts
+++ b/api/src/modules/sms/conversations/sms-conversations.routes.ts
@@ -24,6 +24,60 @@ router.get('/', async (req, res, next) => {
   } catch (err) { next(err); }
 });
 
+// GET /api/sms/conversations/contact-search — search contacts for new conversation
+router.get('/contact-search', async (req, res, next) => {
+  try {
+    const q = (req.query.q as string || '').trim();
+    if (q.length < 2) {
+      res.json({ results: [] });
+      return;
+    }
+    const results = await smsConversationsService.searchContacts(q);
+    res.json({ results });
+  } catch (err) { next(err); }
+});
+
+// POST /api/sms/conversations — start new conversation
+router.post('/', async (req, res, next) => {
+  try {
+    const { phone, message, contactName, contactId } = req.body as {
+      phone?: string;
+      message?: string;
+      contactName?: string;
+      contactId?: string;
+    };
+    if (!phone || typeof phone !== 'string' || phone.replace(/\D/g, '').length < 7) {
+      res.status(400).json({ error: 'Valid phone number is required (min 7 digits)' });
+      return;
+    }
+    if (!message || typeof message !== 'string' || message.trim().length === 0) {
+      res.status(400).json({ error: 'Message is required' });
+      return;
+    }
+    if (message.length > 1600) {
+      res.status(400).json({ error: 'Message cannot exceed 1600 characters' });
+      return;
+    }
+    const conversation = await smsConversationsService.startConversation({
+      phone,
+      message: message.trim(),
+      contactName,
+      contactId,
+    });
+    res.status(201).json(conversation);
+  } catch (err: any) {
+    if (err.statusCode === 409) {
+      res.status(409).json({ error: err.message });
+      return;
+    }
+    if (err.statusCode === 400) {
+      res.status(400).json({ error: err.message });
+      return;
+    }
+    next(err);
+  }
+});
+
 // GET /api/sms/conversations/stats — conversation stats
 router.get('/stats', async (_req, res, next) => {
   try {
diff --git a/api/src/modules/sms/conversations/sms-conversations.service.ts b/api/src/modules/sms/conversations/sms-conversations.service.ts
index d3334025..6add50fc 100644
--- a/api/src/modules/sms/conversations/sms-conversations.service.ts
+++ b/api/src/modules/sms/conversations/sms-conversations.service.ts
@@ -2,6 +2,24 @@ import { prisma } from '../../../config/database';
 import { Prisma } from '@prisma/client';
 import { smsQueueService } from '../../../services/sms-queue.service';
 
+/**
+ * Normalize a phone number: strip non-digit characters, validate 10-11 digits.
+ */
+function normalizePhone(raw: string): string | null {
+  const digits = raw.replace(/\D/g, '');
+  if (digits.length === 10) return digits;
+  if (digits.length === 11 && digits.startsWith('1')) return digits;
+  return null;
+}
+
+export interface ContactSearchResult {
+  phone: string;
+  name: string | null;
+  source: 'sms_contact' | 'crm_contact' | 'conversation';
+  sourceId: string;
+  contactId?: string;
+}
+
 export const smsConversationsService = {
   async findAll(options: {
     page?: number;
@@ -171,4 +189,181 @@ export const smsConversationsService = {
 
     return { updated: result.count };
   },
+
+  /**
+   * Search contacts across SMS lists, CRM contacts, and existing conversations.
+   * Deduplicates by phone number, prioritizing SMS contacts > CRM > conversations.
+   */
+  async searchContacts(query: string, limit = 20): Promise<ContactSearchResult[]> {
+    const seen = new Map<string, ContactSearchResult>();
+
+    const [smsEntries, crmContacts, existingConvs] = await Promise.all([
+      // 1. SMS Contact List Entries
+      prisma.smsContactListEntry.findMany({
+        where: {
+          OR: [
+            { phone: { contains: query } },
+            { name: { contains: query, mode: 'insensitive' } },
+          ],
+        },
+        take: limit,
+        select: { id: true, phone: true, name: true },
+      }),
+
+      // 2. CRM Contacts (with phones) — exclude opted out
+      prisma.contact.findMany({
+        where: {
+          doNotContact: false,
+          smsOptOut: false,
+          OR: [
+            { displayName: { contains: query, mode: 'insensitive' } },
+            { phone: { contains: query } },
+            { phones: { some: { phone: { contains: query } } } },
+          ],
+        },
+        take: limit,
+        select: {
+          id: true,
+          displayName: true,
+          phone: true,
+          phones: { select: { phone: true }, take: 5 },
+        },
+      }),
+
+      // 3. Existing conversations
+      prisma.smsConversation.findMany({
+        where: {
+          OR: [
+            { phone: { contains: query } },
+            { contactName: { contains: query, mode: 'insensitive' } },
+          ],
+        },
+        take: limit,
+        select: { id: true, phone: true, contactName: true, contactId: true, status: true },
+      }),
+    ]);
+
+    // Add SMS contacts first (highest priority)
+    for (const entry of smsEntries) {
+      if (!seen.has(entry.phone)) {
+        seen.set(entry.phone, {
+          phone: entry.phone,
+          name: entry.name,
+          source: 'sms_contact',
+          sourceId: entry.id,
+        });
+      }
+    }
+
+    // Add CRM contacts
+    for (const contact of crmContacts) {
+      const phones: string[] = [];
+      if (contact.phone) phones.push(contact.phone);
+      for (const cp of contact.phones) {
+        if (!phones.includes(cp.phone)) phones.push(cp.phone);
+      }
+      for (const phone of phones) {
+        if (!seen.has(phone)) {
+          seen.set(phone, {
+            phone,
+            name: contact.displayName,
+            source: 'crm_contact',
+            sourceId: contact.id,
+            contactId: contact.id,
+          });
+        }
+      }
+    }
+
+    // Add existing conversations (lowest priority)
+    for (const conv of existingConvs) {
+      if (!seen.has(conv.phone)) {
+        seen.set(conv.phone, {
+          phone: conv.phone,
+          name: conv.contactName,
+          source: 'conversation',
+          sourceId: conv.id,
+          contactId: conv.contactId || undefined,
+        });
+      }
+    }
+
+    return Array.from(seen.values()).slice(0, limit);
+  },
+
+  /**
+   * Start a new ad-hoc conversation or reuse an existing one, then send the first message.
+   */
+  async startConversation(input: {
+    phone: string;
+    message: string;
+    contactName?: string;
+    contactId?: string;
+  }) {
+    const normalized = normalizePhone(input.phone);
+    if (!normalized) throw Object.assign(new Error('Invalid phone number'), { statusCode: 400 });
+
+    // Use a transaction to prevent race conditions on conversation lookup/create
+    const conversation = await prisma.$transaction(async (tx) => {
+      // Look for existing ad-hoc conversation (campaignId = null)
+      const existing = await tx.smsConversation.findFirst({
+        where: { phone: normalized, campaignId: null },
+      });
+
+      if (existing) {
+        if (existing.status === 'OPTED_OUT') {
+          throw Object.assign(new Error('Cannot message opted-out contact'), { statusCode: 409 });
+        }
+
+        // Reopen if closed, update stats
+        return tx.smsConversation.update({
+          where: { id: existing.id },
+          data: {
+            status: 'ACTIVE',
+            totalMessages: { increment: 1 },
+            lastMessageAt: new Date(),
+            // Update contact info if provided and not already set
+            contactName: existing.contactName || input.contactName || undefined,
+            contactId: existing.contactId || input.contactId || undefined,
+          },
+        });
+      }
+
+      // Create new conversation
+      return tx.smsConversation.create({
+        data: {
+          phone: normalized,
+          contactName: input.contactName || null,
+          contactId: input.contactId || null,
+          status: 'ACTIVE',
+          totalMessages: 1,
+          lastMessageAt: new Date(),
+        },
+      });
+    });
+
+    // Create outbound message
+    const smsMessage = await prisma.smsMessage.create({
+      data: {
+        phone: normalized,
+        message: input.message,
+        direction: 'OUTBOUND',
+        status: 'PENDING',
+        connectionType: 'termux',
+        conversationId: conversation.id,
+      },
+    });
+
+    // Queue the SMS send
+    await smsQueueService.addSmsJob({
+      recipientId: smsMessage.id,
+      campaignId: '',
+      phone: normalized,
+      message: input.message,
+      attemptNumber: 1,
+    });
+
+    // Return full conversation with messages
+    return this.findById(conversation.id);
+  },
 };