diff --git a/scripts/backup-init.sh b/scripts/backup-init.sh
new file mode 100755
index 0000000..11e6534
--- /dev/null
+++ b/scripts/backup-init.sh
@@ -0,0 +1,74 @@
+#!/bin/bash
+# Initialize Restic backup repository on NAS
+# Run once to set up the backup system
+
+set -e
+
+# Configuration
+BACKUP_REPO="/mnt/nas/backups/homelab-restic"
+PASSWORD_FILE="/home/hoborg/creds/restic-password.txt"
+
+echo "========================================"
+echo "Restic Backup Repository Initialization"
+echo "========================================"
+echo ""
+echo "This will:"
+echo "  1. Install restic if needed"
+echo "  2. Create backup repository at: $BACKUP_REPO"
+echo "  3. Generate and save encryption password"
+echo ""
+
+# Check if restic is installed
+if ! command -v restic &> /dev/null; then
+    echo "Installing restic..."
+    pacman -S --needed --noconfirm restic
+    echo "✓ Restic installed"
+else
+    echo "✓ Restic already installed ($(restic version))"
+fi
+
+# Create backup directory on NAS
+echo ""
+echo "Creating backup directory on NAS..."
+mkdir -p "$BACKUP_REPO"
+echo "✓ Directory created: $BACKUP_REPO"
+
+# Generate random password if doesn't exist
+echo ""
+if [ -f "$PASSWORD_FILE" ]; then
+    echo "✓ Password file already exists: $PASSWORD_FILE"
+else
+    echo "Generating encryption password..."
+    mkdir -p /home/hoborg/creds
+    openssl rand -base64 32 > "$PASSWORD_FILE"
+    chmod 600 "$PASSWORD_FILE"
+    echo "✓ Password saved to: $PASSWORD_FILE"
+    echo "⚠️  IMPORTANT: Back up this password file! Without it, backups cannot be restored."
+fi
+
+# Export password for restic
+export RESTIC_PASSWORD_FILE="$PASSWORD_FILE"
+
+# Initialize repository
+echo ""
+echo "Initializing Restic repository..."
+if restic -r "$BACKUP_REPO" snapshots &>/dev/null; then
+    echo "✓ Repository already initialized"
+else
+    restic -r "$BACKUP_REPO" init
+    echo "✓ Repository initialized"
+fi
+
+echo ""
+echo "========================================"
+echo "Backup Repository Ready!"
+echo "========================================"
+echo ""
+echo "Repository location: $BACKUP_REPO"
+echo "Password file: $PASSWORD_FILE"
+echo ""
+echo "Next steps:"
+echo "  1. Run backup-homelab.sh to create first backup"
+echo "  2. Test restore with backup-restore.sh"
+echo "  3. Enable automated backups with systemd timer"
+echo ""