diff --git a/apps/api/v1/test/lib/utils/isLockedOrBlocked.test.ts b/apps/api/v1/test/lib/utils/isLockedOrBlocked.test.ts
index 9a79a7663bff6b..b67f45ca19cc6e 100644
--- a/apps/api/v1/test/lib/utils/isLockedOrBlocked.test.ts
+++ b/apps/api/v1/test/lib/utils/isLockedOrBlocked.test.ts
@@ -1,9 +1,8 @@
 import prismock from "../../../../../../tests/libs/__mocks__/prisma";
 
+import type { NextApiRequest } from "next";
 import { describe, expect, it, beforeEach } from "vitest";
 
-import { WatchlistSeverity } from "@calcom/prisma/enums";
-
 import { isLockedOrBlocked } from "../../../lib/utils/isLockedOrBlocked";
 
 describe("isLockedOrBlocked", () => {
@@ -18,7 +17,6 @@ describe("isLockedOrBlocked", () => {
         {
           type: "DOMAIN",
           value: "blocked.com",
-          severity: WatchlistSeverity.CRITICAL,
           createdById: 1,
         },
       ],
@@ -26,13 +24,13 @@ describe("isLockedOrBlocked", () => {
   });
 
   it("should return false if no user in request", async () => {
-    const req = { userId: null, user: null } as any;
+    const req = { userId: null, user: null } as unknown as NextApiRequest;
     const result = await isLockedOrBlocked(req);
     expect(result).toBe(false);
   });
 
   it("should return false if user has no email", async () => {
-    const req = { userId: 123, user: { email: null } } as any;
+    const req = { userId: 123, user: { email: null } } as unknown as NextApiRequest;
     const result = await isLockedOrBlocked(req);
     expect(result).toBe(false);
   });
@@ -44,7 +42,7 @@ describe("isLockedOrBlocked", () => {
         locked: true,
         email: "test@example.com",
       },
-    } as any;
+    } as unknown as NextApiRequest;
 
     const result = await isLockedOrBlocked(req);
     expect(result).toBe(true);
@@ -57,7 +55,7 @@ describe("isLockedOrBlocked", () => {
         locked: false,
         email: "test@blocked.com",
       },
-    } as any;
+    } as unknown as NextApiRequest;
 
     const result = await isLockedOrBlocked(req);
     expect(result).toBe(true);
@@ -70,7 +68,7 @@ describe("isLockedOrBlocked", () => {
         locked: false,
         email: "test@example.com",
       },
-    } as any;
+    } as unknown as NextApiRequest;
 
     const result = await isLockedOrBlocked(req);
     expect(result).toBe(false);
@@ -83,7 +81,7 @@ describe("isLockedOrBlocked", () => {
         locked: false,
         email: "test@BLOCKED.COM",
       },
-    } as any;
+    } as unknown as NextApiRequest;
 
     const result = await isLockedOrBlocked(req);
     expect(result).toBe(true);
diff --git a/packages/features/bookings/lib/handleNewBooking/test/fresh-booking.test.ts b/packages/features/bookings/lib/handleNewBooking/test/fresh-booking.test.ts
index 23877852fe4339..d52394affb84fe 100644
--- a/packages/features/bookings/lib/handleNewBooking/test/fresh-booking.test.ts
+++ b/packages/features/bookings/lib/handleNewBooking/test/fresh-booking.test.ts
@@ -59,7 +59,7 @@ import { createWatchlistEntry } from "@calcom/features/watchlist/lib/testUtils";
 import { WEBSITE_URL, WEBAPP_URL } from "@calcom/lib/constants";
 import { ErrorCode } from "@calcom/lib/errorCodes";
 import { resetTestEmails } from "@calcom/lib/testEmails";
-import { CreationSource, WatchlistSeverity, WatchlistType } from "@calcom/prisma/enums";
+import { CreationSource, WatchlistType } from "@calcom/prisma/enums";
 import { BookingStatus, SchedulingType } from "@calcom/prisma/enums";
 import { test } from "@calcom/web/test/fixtures/fixtures";
 
@@ -199,7 +199,7 @@ describe("handleNewBooking", () => {
 
         await expectBookingToBeInDatabase({
           description: "",
-          // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
           uid: createdBooking.uid!,
           eventTypeId: mockBookingData.eventTypeId,
           status: BookingStatus.ACCEPTED,
@@ -263,6 +263,7 @@ describe("handleNewBooking", () => {
           3. Should fallback to creating the booking in the first connected Calendar when neither event nor organizer has a destination calendar - This doesn't practically happen because organizer is always required to have a schedule set
           3. Should trigger BOOKING_CREATED webhook
     `,
+         
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const booker = getBooker({
@@ -363,7 +364,7 @@ describe("handleNewBooking", () => {
 
           await expectBookingToBeInDatabase({
             description: "",
-            // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
             uid: createdBooking.uid!,
             eventTypeId: mockBookingData.eventTypeId,
             status: BookingStatus.ACCEPTED,
@@ -423,6 +424,7 @@ describe("handleNewBooking", () => {
           3. Should fallback to create a booking in the Organizer Calendar if event doesn't have destination calendar
           3. Should trigger BOOKING_CREATED webhook
     `,
+         
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const booker = getBooker({
@@ -525,7 +527,7 @@ describe("handleNewBooking", () => {
 
           await expectBookingToBeInDatabase({
             description: "",
-            // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
             uid: createdBooking.uid!,
             eventTypeId: mockBookingData.eventTypeId,
             status: BookingStatus.ACCEPTED,
@@ -578,6 +580,7 @@ describe("handleNewBooking", () => {
 
       test(
         `an error in creating a calendar event should not stop the booking creation - Current behaviour is wrong as the booking is created but no-one is notified of it`,
+         
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const booker = getBooker({
@@ -666,7 +669,7 @@ describe("handleNewBooking", () => {
 
           await expectBookingToBeInDatabase({
             description: "",
-            // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
             uid: createdBooking.uid!,
             eventTypeId: mockBookingData.eventTypeId,
             status: BookingStatus.ACCEPTED,
@@ -699,6 +702,7 @@ describe("handleNewBooking", () => {
 
       test(
         "If destination calendar has no credential ID due to some reason, it should create the event in first connected calendar instead",
+         
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const booker = getBooker({
@@ -811,7 +815,7 @@ describe("handleNewBooking", () => {
 
           await expectBookingToBeInDatabase({
             description: "",
-            // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
             uid: createdBooking.uid!,
             eventTypeId: mockBookingData.eventTypeId,
             status: BookingStatus.ACCEPTED,
@@ -865,6 +869,7 @@ describe("handleNewBooking", () => {
 
       test(
         "If destination calendar is there for Google Calendar but there are no Google Calendar credentials but there is an Apple Calendar credential connected, it should create the event in Apple Calendar",
+         
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const booker = getBooker({
@@ -970,7 +975,7 @@ describe("handleNewBooking", () => {
 
           await expectBookingToBeInDatabase({
             description: "",
-            // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
             uid: createdBooking.uid!,
             eventTypeId: mockBookingData.eventTypeId,
             status: BookingStatus.ACCEPTED,
@@ -1022,6 +1027,7 @@ describe("handleNewBooking", () => {
     describe("Event's first location should be used when location is unspecied", () => {
       test(
         `should create a successful booking with right location app when event has location option as video client`,
+         
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const booker = getBooker({
@@ -1115,6 +1121,7 @@ describe("handleNewBooking", () => {
         `should create a successful booking with right location when event's location is not a conferencing app
         `,
         //test with inPerson event type
+         
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const booker = getBooker({
@@ -1198,6 +1205,7 @@ describe("handleNewBooking", () => {
       );
       test(
         `should create a successful booking with organizer default conferencing app when event's location is not set`,
+         
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const booker = getBooker({
@@ -1292,6 +1300,7 @@ describe("handleNewBooking", () => {
     describe("Video Meeting Creation", () => {
       test(
         `should create a successful booking with Zoom if used`,
+         
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const subscriberUrl = "http://my-webhook.example.com";
@@ -1380,6 +1389,7 @@ describe("handleNewBooking", () => {
 
       test(
         `Booking should still be created using calvideo, if error occurs with zoom`,
+         
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const subscriberUrl = "http://my-webhook.example.com";
@@ -1534,6 +1544,7 @@ describe("handleNewBooking", () => {
     describe("UTM tracking tests", () => {
       test(
         "should create a booking with UTM tracking",
+        // eslint-disable-next-line @typescript-eslint/no-unused-vars
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const booker = getBooker({
@@ -1609,7 +1620,6 @@ describe("handleNewBooking", () => {
             bookingData: mockedBookingData,
           });
 
-          // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
           expectBookingTrackingToBeInDatabase(tracking, createdBooking.uid!);
         },
         timeout
@@ -1619,6 +1629,7 @@ describe("handleNewBooking", () => {
     describe("Creation source tests", () => {
       test(
         `should create a booking with creation source as WEBAPP`,
+        // eslint-disable-next-line @typescript-eslint/no-unused-vars
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const booker = getBooker({
@@ -1700,7 +1711,7 @@ describe("handleNewBooking", () => {
       () => {
         test(
           `should fail a booking if there is already a Cal.com booking overlapping the time`,
-          async ({}) => {
+          async () => {
             const handleNewBooking = getNewBookingHandler();
 
             const booker = getBooker({
@@ -1929,7 +1940,7 @@ describe("handleNewBooking", () => {
             });
             expectBookingToBeInDatabase({
               description: "",
-              // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
               uid: createdBooking.uid!,
               eventTypeId: mockBookingData.eventTypeId,
               status: BookingStatus.ACCEPTED,
@@ -2098,7 +2109,7 @@ describe("handleNewBooking", () => {
               });
               expectBookingToBeInDatabase({
                 description: "",
-                // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
                 uid: createdBooking.uid!,
                 eventTypeId: mockBookingData.eventTypeId,
                 status: BookingStatus.ACCEPTED,
@@ -2119,6 +2130,7 @@ describe("handleNewBooking", () => {
             3. Should trigger BOOKING_REQUESTED webhook
             4. Should trigger BOOKING_REQUESTED workflow
     `,
+         
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const subscriberUrl = "http://my-webhook.example.com";
@@ -2220,7 +2232,7 @@ describe("handleNewBooking", () => {
 
           await expectBookingToBeInDatabase({
             description: "",
-            // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
             uid: createdBooking.uid!,
             eventTypeId: mockBookingData.eventTypeId,
             status: BookingStatus.PENDING,
@@ -2256,6 +2268,7 @@ describe("handleNewBooking", () => {
         3. Should trigger BOOKING_REQUESTED webhook
         4. Should trigger BOOKING_REQUESTED workflow
     `,
+         
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const subscriberUrl = "http://my-webhook.example.com";
@@ -2345,7 +2358,7 @@ describe("handleNewBooking", () => {
 
           await expectBookingToBeInDatabase({
             description: "",
-            // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
             uid: createdBooking.uid!,
             eventTypeId: mockBookingData.eventTypeId,
             status: BookingStatus.PENDING,
@@ -2382,6 +2395,7 @@ describe("handleNewBooking", () => {
             2. Should send emails to the booker as well as organizer
             3. Should trigger BOOKING_CREATED webhook
     `,
+         
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const booker = getBooker({
@@ -2479,7 +2493,7 @@ describe("handleNewBooking", () => {
 
           await expectBookingToBeInDatabase({
             description: "",
-            // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
             uid: createdBooking.uid!,
             eventTypeId: mockBookingData.eventTypeId,
             status: BookingStatus.ACCEPTED,
@@ -2518,6 +2532,7 @@ describe("handleNewBooking", () => {
             3. Should trigger BOOKING_REQUESTED webhook
             4. Should trigger BOOKING_REQUESTED workflows
     `,
+         
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const subscriberUrl = "http://my-webhook.example.com";
@@ -2621,7 +2636,7 @@ describe("handleNewBooking", () => {
 
           await expectBookingToBeInDatabase({
             description: "",
-            // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
             uid: createdBooking.uid!,
             eventTypeId: mockBookingData.eventTypeId,
             status: BookingStatus.PENDING,
@@ -2648,7 +2663,7 @@ describe("handleNewBooking", () => {
     // FIXME: We shouldn't throw error here, the behaviour should be fixed.
     test(
       `if booking with Cal Video(Daily Video) fails, booking creation fails with uncaught error`,
-      async ({}) => {
+      async () => {
         const handleNewBooking = getNewBookingHandler();
         const booker = getBooker({
           email: "booker@example.org",
@@ -2716,6 +2731,7 @@ describe("handleNewBooking", () => {
       2. Should send emails to the booker as well as organizer
       3. Should trigger BOOKING_CREATED webhook
     `,
+       
       async ({ emails }) => {
         const handleNewBooking = getNewBookingHandler();
         const booker = getBooker({
@@ -2801,7 +2817,7 @@ describe("handleNewBooking", () => {
 
         await expectBookingToBeInDatabase({
           description: "",
-          // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
           uid: createdBooking.uid!,
           eventTypeId: mockBookingData.eventTypeId,
           status: BookingStatus.ACCEPTED,
@@ -2842,6 +2858,7 @@ describe("handleNewBooking", () => {
             6. Workflow should not trigger before payment is made
             7. Workflow triggers once payment is successful
       `,
+         
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const booker = getBooker({
@@ -2963,7 +2980,7 @@ describe("handleNewBooking", () => {
           await expectBookingToBeInDatabase({
             description: "",
             location: BookingLocations.CalVideo,
-            // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
             uid: createdBooking.uid!,
             eventTypeId: mockBookingData.eventTypeId,
             status: BookingStatus.PENDING,
@@ -2984,7 +3001,7 @@ describe("handleNewBooking", () => {
             organizer,
             location: BookingLocations.CalVideo,
             subscriberUrl: "http://my-webhook.example.com",
-            // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
             paymentId: createdBooking.paymentId!,
           });
 
@@ -2993,7 +3010,7 @@ describe("handleNewBooking", () => {
           expect(webhookResponse?.statusCode).toBe(200);
           await expectBookingToBeInDatabase({
             description: "",
-            // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
             uid: createdBooking.uid!,
             eventTypeId: mockBookingData.eventTypeId,
             status: BookingStatus.ACCEPTED,
@@ -3024,6 +3041,7 @@ describe("handleNewBooking", () => {
             6. Should trigger BOOKING_REQUESTED workflow
             7. Booking should still stay in pending state
       `,
+         
         async ({ emails }) => {
           const bookingInitiatedEmail = "booking_initiated@workflow.com";
           const handleNewBooking = getNewBookingHandler();
@@ -3145,7 +3163,7 @@ describe("handleNewBooking", () => {
           );
           await expectBookingToBeInDatabase({
             description: "",
-            // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
             uid: createdBooking.uid!,
             eventTypeId: mockBookingData.eventTypeId,
             status: BookingStatus.PENDING,
@@ -3165,7 +3183,7 @@ describe("handleNewBooking", () => {
             organizer,
             location: BookingLocations.CalVideo,
             subscriberUrl: "http://my-webhook.example.com",
-            // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
             paymentId: createdBooking.paymentId!,
           });
           expectWorkflowToBeTriggered({ emailsToReceive: [bookingInitiatedEmail], emails });
@@ -3178,7 +3196,7 @@ describe("handleNewBooking", () => {
           expect(webhookResponse?.statusCode).toBe(200);
           await expectBookingToBeInDatabase({
             description: "",
-            // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
             uid: createdBooking.uid!,
             eventTypeId: mockBookingData.eventTypeId,
             status: BookingStatus.PENDING,
@@ -3203,6 +3221,7 @@ describe("handleNewBooking", () => {
       );
       test(
         `cannot book same slot multiple times `,
+         
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const booker = getBooker({
@@ -3298,7 +3317,7 @@ describe("handleNewBooking", () => {
 
           await expectBookingToBeInDatabase({
             description: "",
-            // eslint-disable-next-line @typescript-eslint/no-non-null-assertion
+
             uid: createdBooking.uid!,
             eventTypeId: mockBookingData.eventTypeId,
             status: BookingStatus.ACCEPTED,
@@ -3351,6 +3370,7 @@ describe("handleNewBooking", () => {
 
       test(
         `Payment retry scenario - should return existing payment UID and prevent duplicate bookings when retrying canceled payment`,
+        // eslint-disable-next-line @typescript-eslint/no-unused-vars
         async ({ emails }) => {
           const handleNewBooking = getNewBookingHandler();
           const booker = getBooker({
@@ -3400,7 +3420,7 @@ describe("handleNewBooking", () => {
           mockSuccessfulVideoMeetingCreation({
             metadataLookupKey: "dailyvideo",
           });
-          const { paymentUid } = mockPaymentApp({
+          const { paymentUid: _paymentUid } = mockPaymentApp({
             metadataLookupKey: "stripe",
             appStoreLookupKey: "stripepayment",
           });
@@ -3693,7 +3713,6 @@ describe("handleNewBooking", () => {
 
       await createWatchlistEntry({
         type: WatchlistType.USERNAME,
-        severity: WatchlistSeverity.CRITICAL,
         value: organizer.username,
       });
 
@@ -3755,7 +3774,6 @@ describe("handleNewBooking", () => {
 
       await createWatchlistEntry({
         type: WatchlistType.DOMAIN,
-        severity: WatchlistSeverity.CRITICAL,
         value: "spammer.com",
       });
 
@@ -3817,7 +3835,6 @@ describe("handleNewBooking", () => {
 
       await createWatchlistEntry({
         type: WatchlistType.EMAIL,
-        severity: WatchlistSeverity.CRITICAL,
         value: "spam@spammer.com",
       });
 
diff --git a/packages/features/watchlist/lib/testUtils.ts b/packages/features/watchlist/lib/testUtils.ts
index 84a92916b053e6..c0f93e3b5cb52f 100644
--- a/packages/features/watchlist/lib/testUtils.ts
+++ b/packages/features/watchlist/lib/testUtils.ts
@@ -1,9 +1,8 @@
 import prismock from "../../../../tests/libs/__mocks__/prisma";
 
-import type { WatchlistSeverity, WatchlistType } from "@calcom/prisma/enums";
+import type { WatchlistType } from "@calcom/prisma/enums";
 
 interface WatchlistInput {
-  severity: WatchlistSeverity;
   type: WatchlistType;
   value: string;
 }
diff --git a/packages/features/watchlist/watchlist.repository.ts b/packages/features/watchlist/watchlist.repository.ts
index 0891a39ef78dc2..b986bf9b9a34a6 100644
--- a/packages/features/watchlist/watchlist.repository.ts
+++ b/packages/features/watchlist/watchlist.repository.ts
@@ -1,7 +1,7 @@
 import { captureException } from "@sentry/nextjs";
 
 import db from "@calcom/prisma";
-import { WatchlistType, WatchlistSeverity } from "@calcom/prisma/enums";
+import { WatchlistType } from "@calcom/prisma/enums";
 
 import type { IWatchlistRepository } from "./watchlist.repository.interface";
 
@@ -11,7 +11,6 @@ export class WatchlistRepository implements IWatchlistRepository {
     try {
       const emailInWatchlist = await db.watchlist.findFirst({
         where: {
-          severity: WatchlistSeverity.CRITICAL,
           OR: [
             { type: WatchlistType.EMAIL, value: email },
             { type: WatchlistType.DOMAIN, value: domain },
@@ -53,7 +52,6 @@ export class WatchlistRepository implements IWatchlistRepository {
     try {
       const blockedRecords = await db.watchlist.findMany({
         where: {
-          severity: WatchlistSeverity.CRITICAL,
           OR: [
             ...(usernames.length > 0
               ? [
diff --git a/packages/prisma/migrations/20251003103832_upsert_watchlist_audit/migration.sql b/packages/prisma/migrations/20251003103832_upsert_watchlist_audit/migration.sql
new file mode 100644
index 00000000000000..035e6d76f79e15
--- /dev/null
+++ b/packages/prisma/migrations/20251003103832_upsert_watchlist_audit/migration.sql
@@ -0,0 +1,113 @@
+-- CreateEnum
+CREATE TYPE "WatchlistSource" AS ENUM ('MANUAL', 'FREE_DOMAIN_POLICY');
+
+-- AlterEnum
+ALTER TYPE "WatchlistAction" ADD VALUE 'ALERT';
+
+
+-- 1) Add a temporary UUID column `uid` and backfill it without extensions
+ALTER TABLE "Watchlist"
+  ADD COLUMN IF NOT EXISTS "uid" UUID;
+
+-- Backfill existing rows with UUIDs using gen_random_uuid()
+UPDATE "Watchlist"
+SET "uid" = COALESCE("uid", gen_random_uuid());
+
+-- Enforce NOT NULL now that all rows have a value
+ALTER TABLE "Watchlist"
+  ALTER COLUMN "uid" SET NOT NULL;
+
+-- 2) Adjust uniques/indexes that reference old id? (none in your snippet)
+--    If you had FKs or PK references elsewhere, you'd update them here.
+
+-- 3) Switch primary key from old `id` to new `uid`:
+--    Drop old PK (name might vary in your DB; adjust if needed)
+DO $$ BEGIN
+  ALTER TABLE "Watchlist" DROP CONSTRAINT "Watchlist_pkey";
+EXCEPTION
+  WHEN undefined_object THEN NULL;
+END $$;
+
+-- 4) Drop the old `id` column and rename `uid`→`id`
+ALTER TABLE "Watchlist" DROP COLUMN "id";
+ALTER TABLE "Watchlist" RENAME COLUMN "uid" TO "id";
+
+-- 5) Add the new PK on `id` (UUID)
+ALTER TABLE "Watchlist" ADD CONSTRAINT "Watchlist_pkey" PRIMARY KEY ("id");
+
+-- DropForeignKey - Do this before modifying Watchlist structure
+ALTER TABLE "Watchlist" DROP CONSTRAINT "Watchlist_createdById_fkey";
+
+-- DropForeignKey
+ALTER TABLE "Watchlist" DROP CONSTRAINT "Watchlist_updatedById_fkey";
+
+-- Modify Watchlist table structure FIRST
+-- AlterTable
+ALTER TABLE "Watchlist" DROP COLUMN "createdAt",
+DROP COLUMN "createdById",
+DROP COLUMN "severity",
+DROP COLUMN "updatedAt",
+DROP COLUMN "updatedById",
+ADD COLUMN     "isGlobal" BOOLEAN NOT NULL DEFAULT false,
+ADD COLUMN     "lastUpdatedAt" TIMESTAMP(3) NOT NULL DEFAULT CURRENT_TIMESTAMP,
+ADD COLUMN     "source" "WatchlistSource" NOT NULL DEFAULT 'MANUAL';
+
+-- Create WatchlistAudit table AFTER Watchlist has UUID id
+-- CreateTable
+CREATE TABLE "WatchlistAudit" (
+    "id" UUID NOT NULL,
+    "type" "WatchlistType" NOT NULL,
+    "value" TEXT NOT NULL,
+    "description" TEXT,
+    "action" "WatchlistAction" NOT NULL DEFAULT 'REPORT',
+    "changedAt" TIMESTAMP(3) NOT NULL DEFAULT CURRENT_TIMESTAMP,
+    "changedByUserId" INTEGER,
+    "watchlistId" UUID NOT NULL,
+
+    CONSTRAINT "WatchlistAudit_pkey" PRIMARY KEY ("id")
+);
+
+-- Drop the BlockedBookingLog table
+-- DropTable
+DROP TABLE "BlockedBookingLog";
+
+-- Drop unused enum
+-- DropEnum
+DROP TYPE "WatchlistSeverity";
+
+-- Create WatchlistEventAudit table
+-- CreateTable
+CREATE TABLE "WatchlistEventAudit" (
+    "id" UUID NOT NULL,
+    "watchlistId" UUID NOT NULL,
+    "eventTypeId" INTEGER NOT NULL,
+    "actionTaken" "WatchlistAction" NOT NULL,
+    "timestamp" TIMESTAMP(3) NOT NULL DEFAULT CURRENT_TIMESTAMP,
+
+    CONSTRAINT "WatchlistEventAudit_pkey" PRIMARY KEY ("id")
+);
+
+-- Create indexes for performance
+-- CreateIndex
+CREATE UNIQUE INDEX IF NOT EXISTS "WatchlistAudit_id_key" ON "WatchlistAudit"("id");
+
+-- CreateIndex
+CREATE INDEX IF NOT EXISTS "WatchlistAudit_watchlistId_changedAt_idx" ON "WatchlistAudit"("watchlistId", "changedAt");
+
+-- CreateIndex - Main composite index matching schema
+CREATE INDEX IF NOT EXISTS "Watchlist_type_value_organizationId_action_idx" ON "Watchlist"("type", "value", "organizationId", "action");
+
+-- CreateIndex - For organization-specific and global queries
+CREATE INDEX IF NOT EXISTS "Watchlist_organizationId_isGlobal_idx" ON "Watchlist"("organizationId", "isGlobal");
+
+-- CreateIndex - For source-based queries
+CREATE INDEX IF NOT EXISTS "Watchlist_source_idx" ON "Watchlist"("source");
+
+-- CreateIndex - Add unique constraint matching schema
+CREATE UNIQUE INDEX IF NOT EXISTS "Watchlist_type_value_organizationId_key" ON "Watchlist"("type", "value", "organizationId");
+
+-- CreateIndex - Performance index for WatchlistEventAudit queries
+CREATE INDEX IF NOT EXISTS "WatchlistEventAudit_watchlistId_timestamp_idx" ON "WatchlistEventAudit"("watchlistId", "timestamp");
+
+-- CreateIndex - For eventType-based queries
+CREATE INDEX IF NOT EXISTS "WatchlistEventAudit_eventTypeId_timestamp_idx" ON "WatchlistEventAudit"("eventTypeId", "timestamp");
diff --git a/packages/prisma/schema.prisma b/packages/prisma/schema.prisma
index 0362019f6e9ddf..c3c254de42edb7 100644
--- a/packages/prisma/schema.prisma
+++ b/packages/prisma/schema.prisma
@@ -451,8 +451,6 @@ model User {
   updatedAttributeToUsers        AttributeToUser[]             @relation("updatedBy")
   createdTranslations            EventTypeTranslation[]        @relation("CreatedEventTypeTranslations")
   updatedTranslations            EventTypeTranslation[]        @relation("UpdatedEventTypeTranslations")
-  createdWatchlists              Watchlist[]                   @relation("CreatedWatchlists")
-  updatedWatchlists              Watchlist[]                   @relation("UpdatedWatchlists")
   BookingInternalNote            BookingInternalNote[]
   creationSource                 CreationSource?
   createdOrganizationOnboardings OrganizationOnboarding[]      @relation("CreatedOrganizationOnboardings")
@@ -2269,54 +2267,54 @@ enum WatchlistType {
   USERNAME
 }
 
-enum WatchlistSeverity {
-  LOW
-  MEDIUM
-  HIGH
-  CRITICAL
-}
-
 enum WatchlistAction {
   REPORT
   BLOCK
+  ALERT
 }
 
-model Watchlist {
-  id   String        @id @unique @default(cuid())
-  type WatchlistType
-
-  value       String
-  description String?
+enum WatchlistSource {
+  MANUAL
+  FREE_DOMAIN_POLICY
+}
 
+model Watchlist {
+  id             String          @id @default(uuid()) @db.Uuid
+  type           WatchlistType
+  value          String
+  description    String?
+  isGlobal       Boolean         @default(false)
   organizationId Int?
-
-  action      WatchlistAction   @default(REPORT)
-  severity    WatchlistSeverity @default(LOW)
-  createdAt   DateTime          @default(now())
-  createdBy   User?             @relation("CreatedWatchlists", onDelete: SetNull, fields: [createdById], references: [id])
-  createdById Int?
-  updatedAt   DateTime          @updatedAt
-  updatedBy   User?             @relation("UpdatedWatchlists", onDelete: SetNull, fields: [updatedById], references: [id])
-  updatedById Int?
+  action         WatchlistAction @default(REPORT)
+  source         WatchlistSource @default(MANUAL)
+  lastUpdatedAt  DateTime        @default(now())
 
   @@unique([type, value, organizationId])
   @@index([type, value, organizationId, action])
 }
 
-model BlockedBookingLog {
-  id          String @id @default(uuid())
-  email       String
-  eventTypeId Int?
+model WatchlistAudit {
+  id          String        @id @default(uuid(7)) @db.Uuid
+  type        WatchlistType
+  value       String
+  description String?
 
-  organizationId Int?
+  action WatchlistAction @default(REPORT)
 
-  bookingData Json?
-  createdAt   DateTime @default(now())
-  watchlistId String?
+  changedAt       DateTime @default(now())
+  changedByUserId Int?
 
-  @@index([organizationId, createdAt])
-  @@index([email])
-  @@index([watchlistId])
+  watchlistId String @db.Uuid
+
+  @@index([watchlistId, changedAt])
+}
+
+model WatchlistEventAudit {
+  id          String          @id @default(uuid(7)) @db.Uuid
+  watchlistId String          @db.Uuid
+  eventTypeId Int
+  actionTaken WatchlistAction
+  timestamp   DateTime        @default(now())
 }
 
 enum BillingPeriod {