diff --git a/supabase/functions/receive-inbound-email/index.ts b/supabase/functions/receive-inbound-email/index.ts
index cd4f95c8..fb5a6696 100644
--- a/supabase/functions/receive-inbound-email/index.ts
+++ b/supabase/functions/receive-inbound-email/index.ts
@@ -47,107 +47,176 @@ const handler = async (req: Request): Promise<Response> => {
     let threadId = headers['X-Thread-ID'] || 
                    (inReplyTo ? inReplyTo.replace(/<|>/g, '').split('@')[0] : null);
 
-    if (!threadId) {
-      edgeLogger.warn('Email missing thread ID', {
+    // If no thread ID, this is a NEW direct email (not a reply)
+    const isNewEmail = !threadId;
+
+    if (isNewEmail) {
+      edgeLogger.info('New direct email received (no thread ID)', {
         requestId: tracking.requestId,
+        from,
+        subject,
         messageId
       });
-      return new Response(JSON.stringify({ success: false, reason: 'no_thread_id' }), {
-        status: 200,
-        headers: { ...corsHeaders, 'Content-Type': 'application/json' }
-      });
     }
 
-    // Extract ticket number from thread_id (handles multiple formats)
-    // Formats: "TW-100000.uuid", "ticket-TW-100000", "TW-100000"
-    const ticketMatch = threadId.match(/(?:ticket-)?(TW-\d+)/i);
-    const ticketNumber = ticketMatch ? ticketMatch[1] : null;
-
-    edgeLogger.info('Thread ID extracted', {
-      requestId: tracking.requestId,
-      rawThreadId: threadId,
-      ticketNumber
-    });
-
-    // Find submission by thread_id or ticket_number
+    // Find or create submission
     let submission = null;
     let submissionError = null;
 
-    // Strategy 1: Try exact thread_id match
-    const { data: submissionByThreadId, error: error1 } = await supabase
-      .from('contact_submissions')
-      .select('id, email, status, ticket_number')
-      .eq('thread_id', threadId)
-      .maybeSingle();
-
-    if (submissionByThreadId) {
-      submission = submissionByThreadId;
-    } else if (ticketNumber) {
-      // Strategy 2: Try ticket_number match
-      const { data: submissionByTicket, error: error2 } = await supabase
+    if (isNewEmail) {
+      // Extract sender email
+      const senderEmail = from.match(/<(.+)>/)?.[1] || from;
+      const senderName = from.match(/^(.+?)\s*</)?.[1]?.trim() || senderEmail.split('@')[0];
+      
+      // Check for existing submission from this email in last 5 minutes (avoid duplicates)
+      const fiveMinutesAgo = new Date(Date.now() - 5 * 60 * 1000).toISOString();
+      const { data: existingRecent } = await supabase
         .from('contact_submissions')
-        .select('id, email, status, ticket_number, thread_id')
-        .eq('ticket_number', ticketNumber)
+        .select('id, ticket_number, thread_id, email')
+        .eq('email', senderEmail.toLowerCase())
+        .eq('subject', subject || '(No Subject)')
+        .gte('created_at', fiveMinutesAgo)
         .maybeSingle();
       
-      if (submissionByTicket) {
-        submission = submissionByTicket;
+      if (existingRecent) {
+        // Use existing recent submission (duplicate email)
+        submission = existingRecent;
+        threadId = existingRecent.thread_id;
         
-        // Update thread_id if it's null or in old format
-        if (!submissionByTicket.thread_id || submissionByTicket.thread_id !== threadId) {
-          await supabase
-            .from('contact_submissions')
-            .update({ thread_id: threadId })
-            .eq('id', submissionByTicket.id);
-          
-          edgeLogger.info('Updated submission thread_id', {
-            requestId: tracking.requestId,
-            submissionId: submissionByTicket.id,
-            oldThreadId: submissionByTicket.thread_id,
-            newThreadId: threadId
-          });
-        }
+        edgeLogger.info('Using existing recent submission', {
+          requestId: tracking.requestId,
+          submissionId: existingRecent.id,
+          ticketNumber: existingRecent.ticket_number
+        });
       } else {
-        submissionError = error2;
+        // Create new contact submission
+        const { data: newSubmission, error: createError } = await supabase
+          .from('contact_submissions')
+          .insert({
+            name: senderName,
+            email: senderEmail.toLowerCase(),
+            subject: subject || '(No Subject)',
+            message: text || html || '(Empty message)',
+            category: 'general',
+            status: 'pending',
+            user_agent: 'Email Client',
+            ip_address_hash: null
+          })
+          .select('id, ticket_number, email, status')
+          .single();
+        
+        if (createError || !newSubmission) {
+          edgeLogger.error('Failed to create submission from direct email', {
+            requestId: tracking.requestId,
+            error: createError
+          });
+          return createErrorResponse(createError, 500, corsHeaders);
+        }
+        
+        submission = newSubmission;
+        threadId = `${newSubmission.ticket_number}.${newSubmission.id}`;
+        
+        // Update thread_id
+        await supabase
+          .from('contact_submissions')
+          .update({ thread_id: threadId })
+          .eq('id', newSubmission.id);
+        
+        edgeLogger.info('Created new submission from direct email', {
+          requestId: tracking.requestId,
+          submissionId: newSubmission.id,
+          ticketNumber: newSubmission.ticket_number,
+          threadId
+        });
       }
     } else {
-      submissionError = error1;
-    }
+      // EXISTING LOGIC: Find submission by thread_id or ticket_number
+      const ticketMatch = threadId.match(/(?:ticket-)?(TW-\d+)/i);
+      const ticketNumber = ticketMatch ? ticketMatch[1] : null;
 
-    if (submissionError || !submission) {
-      edgeLogger.warn('Submission not found for thread ID', {
+      edgeLogger.info('Thread ID extracted', {
         requestId: tracking.requestId,
-        threadId,
-        ticketNumber,
-        error: submissionError
+        rawThreadId: threadId,
+        ticketNumber
       });
-      return new Response(JSON.stringify({ success: false, reason: 'submission_not_found' }), {
-        status: 200,
-        headers: { ...corsHeaders, 'Content-Type': 'application/json' }
-      });
-    }
 
-    // Verify sender email matches
-    const senderEmail = from.match(/<(.+)>/)?.[1] || from;
-    if (senderEmail.toLowerCase() !== submission.email.toLowerCase()) {
-      edgeLogger.warn('Sender email mismatch', {
-        requestId: tracking.requestId,
-        expected: submission.email,
-        received: senderEmail
-      });
-      return new Response(JSON.stringify({ success: false, reason: 'email_mismatch' }), {
-        status: 200,
-        headers: { ...corsHeaders, 'Content-Type': 'application/json' }
-      });
+      // Strategy 1: Try exact thread_id match
+      const { data: submissionByThreadId, error: error1 } = await supabase
+        .from('contact_submissions')
+        .select('id, email, status, ticket_number')
+        .eq('thread_id', threadId)
+        .maybeSingle();
+
+      if (submissionByThreadId) {
+        submission = submissionByThreadId;
+      } else if (ticketNumber) {
+        // Strategy 2: Try ticket_number match
+        const { data: submissionByTicket, error: error2 } = await supabase
+          .from('contact_submissions')
+          .select('id, email, status, ticket_number, thread_id')
+          .eq('ticket_number', ticketNumber)
+          .maybeSingle();
+        
+        if (submissionByTicket) {
+          submission = submissionByTicket;
+          
+          // Update thread_id if it's null or in old format
+          if (!submissionByTicket.thread_id || submissionByTicket.thread_id !== threadId) {
+            await supabase
+              .from('contact_submissions')
+              .update({ thread_id: threadId })
+              .eq('id', submissionByTicket.id);
+            
+            edgeLogger.info('Updated submission thread_id', {
+              requestId: tracking.requestId,
+              submissionId: submissionByTicket.id,
+              oldThreadId: submissionByTicket.thread_id,
+              newThreadId: threadId
+            });
+          }
+        } else {
+          submissionError = error2;
+        }
+      } else {
+        submissionError = error1;
+      }
+
+      if (submissionError || !submission) {
+        edgeLogger.warn('Submission not found for thread ID', {
+          requestId: tracking.requestId,
+          threadId,
+          ticketNumber,
+          error: submissionError
+        });
+        return new Response(JSON.stringify({ success: false, reason: 'submission_not_found' }), {
+          status: 200,
+          headers: { ...corsHeaders, 'Content-Type': 'application/json' }
+        });
+      }
+
+      // Verify sender email matches (only for existing submissions)
+      const senderEmail = from.match(/<(.+)>/)?.[1] || from;
+      if (senderEmail.toLowerCase() !== submission.email.toLowerCase()) {
+        edgeLogger.warn('Sender email mismatch', {
+          requestId: tracking.requestId,
+          expected: submission.email,
+          received: senderEmail
+        });
+        return new Response(JSON.stringify({ success: false, reason: 'email_mismatch' }), {
+          status: 200,
+          headers: { ...corsHeaders, 'Content-Type': 'application/json' }
+        });
+      }
     }
 
     // Insert email thread record
+    const senderEmail = from.match(/<(.+)>/)?.[1] || from;
     const { error: insertError } = await supabase
       .from('contact_email_threads')
       .insert({
         submission_id: submission.id,
         message_id: messageId,
-        in_reply_to: inReplyTo,
+        in_reply_to: inReplyTo || null,
         reference_chain: references || [],
         from_email: senderEmail,
         to_email: to,
@@ -157,7 +226,8 @@ const handler = async (req: Request): Promise<Response> => {
         direction: 'inbound',
         metadata: {
           received_at: new Date().toISOString(),
-          headers: headers
+          headers: headers,
+          is_new_ticket: isNewEmail
         }
       });