diff --git a/apps/server/.gitignore b/apps/server/.gitignore
index 7b9ccd07e..b79cbf941 100644
--- a/apps/server/.gitignore
+++ b/apps/server/.gitignore
@@ -1,10 +1,12 @@
 # Build artifacts
 dist/
 .turbo/
+public/
 
 # Bundled API handler (generated during Vercel build)
 api/_handler.js
 api/_handler.js.map
+api/node_modules/
 
 # Node modules
 node_modules/
diff --git a/apps/server/package.json b/apps/server/package.json
index 1d5e8900c..a6dfd0710 100644
--- a/apps/server/package.json
+++ b/apps/server/package.json
@@ -35,7 +35,9 @@
     "@objectstack/service-automation": "workspace:*",
     "@objectstack/service-feed": "workspace:*",
     "@objectstack/spec": "workspace:*",
-    "hono": "^4.12.12"
+    "hono": "^4.12.12",
+    "pino": "^10.3.1",
+    "pino-pretty": "^13.1.3"
   },
   "devDependencies": {
     "@objectstack/cli": "workspace:*",
diff --git a/apps/server/scripts/build-vercel.sh b/apps/server/scripts/build-vercel.sh
index 20b624f59..64754b48d 100755
--- a/apps/server/scripts/build-vercel.sh
+++ b/apps/server/scripts/build-vercel.sh
@@ -8,11 +8,13 @@ set -euo pipefail
 #   - esbuild bundles server/index.ts → api/_handler.js (self-contained bundle)
 #   - The committed .js wrapper re-exports from _handler.js at runtime
 #   - Studio SPA is built and copied to public/ for serving the UI
+#   - External dependencies installed in api/node_modules/ (no symlinks)
 #
 # Steps:
 #   1. Build the project with turbo (includes studio)
 #   2. Bundle the API serverless function (→ api/_handler.js)
 #   3. Copy studio dist files to public/ for UI serving
+#   4. Install external deps in api/node_modules/ (resolve pnpm symlinks)
 
 echo "[build-vercel] Starting server build..."
 
@@ -36,4 +38,26 @@ else
   echo "[build-vercel]   ⚠ Studio dist not found (skipped)"
 fi
 
+# 4. Install external dependencies in api/node_modules/ (no symlinks)
+# pnpm uses symlinks in node_modules/, which Vercel's serverless function
+# packaging cannot handle ("invalid deployment package" error).
+# We use npm to install external packages as real files next to the handler.
+echo "[build-vercel] Installing external dependencies for serverless function..."
+cat > api/_package.json << 'DEPS'
+{
+  "private": true,
+  "dependencies": {
+    "@libsql/client": "0.14.0",
+    "pino": "10.3.1",
+    "pino-pretty": "13.1.3"
+  }
+}
+DEPS
+cd api
+mv _package.json package.json
+npm install --production --no-package-lock --ignore-scripts --loglevel error
+rm package.json
+cd ..
+echo "[build-vercel]   ✓ External dependencies installed in api/node_modules/"
+
 echo "[build-vercel] Done. Static files in public/, serverless function in api/[[...route]].js → api/_handler.js"
diff --git a/apps/server/scripts/bundle-api.mjs b/apps/server/scripts/bundle-api.mjs
index 57700c855..9103a5d71 100644
--- a/apps/server/scripts/bundle-api.mjs
+++ b/apps/server/scripts/bundle-api.mjs
@@ -27,6 +27,11 @@ const EXTERNAL = [
   'tedious',
   // macOS-only native file watcher
   'fsevents',
+  // LibSQL client — has native bindings, must remain external for Vercel
+  '@libsql/client',
+  // Logging libraries - use dynamic require, must be external
+  'pino',
+  'pino-pretty',
 ];
 
 await build({
diff --git a/apps/server/server/index.ts b/apps/server/server/index.ts
index 9d080cfa9..f3bbc577c 100644
--- a/apps/server/server/index.ts
+++ b/apps/server/server/index.ts
@@ -11,8 +11,9 @@
  */
 
 import { ObjectKernel, DriverPlugin, AppPlugin } from '@objectstack/runtime';
-import { ObjectQLPlugin } from '@objectstack/objectql';
+import { ObjectQLPlugin, ObjectQL } from '@objectstack/objectql';
 import { TursoDriver } from '@objectstack/driver-turso';
+import { InMemoryDriver } from '@objectstack/driver-memory';
 import { createHonoApp } from '@objectstack/hono';
 import { AuthPlugin } from '@objectstack/plugin-auth';
 import { SecurityPlugin } from '@objectstack/plugin-security';
@@ -62,7 +63,11 @@ async function ensureKernel(): Promise<ObjectKernel> {
             // Register ObjectQL engine
             await kernel.use(new ObjectQLPlugin());
 
-            // Database driver - Turso (remote mode for Vercel)
+            // Register Memory driver (default for CRM, Todo, BI apps)
+            const memoryDriver = new InMemoryDriver();
+            await kernel.use(new DriverPlugin(memoryDriver, 'memory'));
+
+            // Register Turso driver (for sys namespace)
             const tursoUrl = process.env.TURSO_DATABASE_URL;
             const tursoToken = process.env.TURSO_AUTH_TOKEN;
 
@@ -76,7 +81,7 @@ async function ensureKernel(): Promise<ObjectKernel> {
                 // Remote mode - no local sync needed for Vercel
             });
 
-            await kernel.use(new DriverPlugin(tursoDriver));
+            await kernel.use(new DriverPlugin(tursoDriver, 'turso'));
 
             // Load app manifests (BEFORE plugins that need object schemas)
             await kernel.use(new AppPlugin(CrmApp));
@@ -112,6 +117,18 @@ async function ensureKernel(): Promise<ObjectKernel> {
 
             await kernel.bootstrap();
 
+            // Configure datasource mapping AFTER bootstrap (ObjectQL service is registered during init)
+            const ql = await kernel.getServiceAsync<ObjectQL>('objectql');
+            if (ql && typeof ql.setDatasourceMapping === 'function') {
+                ql.setDatasourceMapping([
+                    // System objects (sys namespace) use Turso for persistent storage
+                    { namespace: 'sys', datasource: 'turso' },
+                    // All other objects use Memory driver as default
+                    { default: true, datasource: 'memory' },
+                ]);
+                console.log('[Vercel] Datasource mapping configured: sys → turso, default → memory');
+            }
+
             _kernel = kernel;
             console.log('[Vercel] Kernel ready.');
             return kernel;
@@ -249,6 +266,5 @@ export default getRequestListener(async (request, env) => {
  * Vercel per-function configuration.
  */
 export const config = {
-    memory: 1024,
     maxDuration: 60,
 };
diff --git a/apps/server/vercel.json b/apps/server/vercel.json
index fdaa07ceb..84811d0b0 100644
--- a/apps/server/vercel.json
+++ b/apps/server/vercel.json
@@ -11,8 +11,8 @@
   },
   "functions": {
     "api/**/*.js": {
-      "memory": 1024,
-      "maxDuration": 60
+      "maxDuration": 60,
+      "includeFiles": "api/node_modules/**"
     }
   },
   "headers": [
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 813ca2db3..0ebff6dcc 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -193,6 +193,12 @@ importers:
       hono:
         specifier: ^4.12.12
         version: 4.12.12
+      pino:
+        specifier: ^10.3.1
+        version: 10.3.1
+      pino-pretty:
+        specifier: ^13.1.3
+        version: 13.1.3
     devDependencies:
       '@objectstack/cli':
         specifier: workspace:*