diff --git a/src/components/moderation/ConflictResolutionDialog.tsx b/src/components/moderation/ConflictResolutionDialog.tsx
index 2a8177f5..79c53858 100644
--- a/src/components/moderation/ConflictResolutionDialog.tsx
+++ b/src/components/moderation/ConflictResolutionDialog.tsx
@@ -4,8 +4,10 @@ import { Button } from '@/components/ui/button';
 import { RadioGroup, RadioGroupItem } from '@/components/ui/radio-group';
 import { Label } from '@/components/ui/label';
 import { Alert, AlertDescription } from '@/components/ui/alert';
-import { AlertCircle } from 'lucide-react';
-import { type DependencyConflict, type SubmissionItemWithDeps } from '@/lib/submissionItemsService';
+import { AlertCircle, Loader2 } from 'lucide-react';
+import { toast } from 'sonner';
+import { type DependencyConflict, type SubmissionItemWithDeps, resolveConflicts } from '@/lib/submissionItemsService';
+import { useAuth } from '@/hooks/useAuth';
 
 interface ConflictResolutionDialogProps {
   open: boolean;
@@ -22,7 +24,9 @@ export function ConflictResolutionDialog({
   items,
   onResolve,
 }: ConflictResolutionDialogProps) {
+  const { user } = useAuth();
   const [resolutions, setResolutions] = useState<Record<string, string>>({});
+  const [isProcessing, setIsProcessing] = useState(false);
 
   const handleResolutionChange = (itemId: string, action: string) => {
     setResolutions(prev => ({ ...prev, [itemId]: action }));
@@ -32,10 +36,36 @@ export function ConflictResolutionDialog({
     conflict => resolutions[conflict.itemId]
   );
 
-  const handleApply = () => {
-    // TODO: Apply resolutions
-    onResolve();
-    onOpenChange(false);
+  const handleApply = async () => {
+    if (!user) {
+      toast.error('You must be logged in to resolve conflicts');
+      return;
+    }
+
+    setIsProcessing(true);
+
+    try {
+      const { updatedItems, newConflicts } = await resolveConflicts(
+        conflicts,
+        resolutions,
+        items,
+        user.id
+      );
+
+      if (newConflicts.length > 0) {
+        toast.error(`Resolution completed with ${newConflicts.length} remaining conflicts`);
+      } else {
+        toast.success('All conflicts resolved successfully');
+      }
+
+      onResolve();
+      onOpenChange(false);
+    } catch (error) {
+      console.error('Error resolving conflicts:', error);
+      toast.error(error instanceof Error ? error.message : 'Failed to resolve conflicts');
+    } finally {
+      setIsProcessing(false);
+    }
   };
 
   return (
@@ -83,11 +113,12 @@ export function ConflictResolutionDialog({
         </div>
 
         <DialogFooter>
-          <Button variant="outline" onClick={() => onOpenChange(false)}>
+          <Button variant="outline" onClick={() => onOpenChange(false)} disabled={isProcessing}>
             Cancel
           </Button>
-          <Button onClick={handleApply} disabled={!allConflictsResolved}>
-            Apply & Approve
+          <Button onClick={handleApply} disabled={!allConflictsResolved || isProcessing}>
+            {isProcessing && <Loader2 className="mr-2 h-4 w-4 animate-spin" />}
+            {isProcessing ? 'Processing...' : 'Apply & Approve'}
           </Button>
         </DialogFooter>
       </DialogContent>
diff --git a/src/lib/submissionItemsService.ts b/src/lib/submissionItemsService.ts
index d75a7aa6..416e0189 100644
--- a/src/lib/submissionItemsService.ts
+++ b/src/lib/submissionItemsService.ts
@@ -97,7 +97,7 @@ export async function detectDependencyConflicts(
           });
         }
 
-        // Suggest linking to existing entity
+        // Suggest linking to existing entity based on type
         if (parent.item_type === 'park') {
           const { data: parks } = await supabase
             .from('parks')
@@ -112,6 +112,35 @@ export async function detectDependencyConflicts(
               entityId: park.id,
             });
           });
+        } else if (['manufacturer', 'operator', 'property_owner', 'designer'].includes(parent.item_type)) {
+          const { data: companies } = await supabase
+            .from('companies')
+            .select('id, name')
+            .eq('company_type', parent.item_type)
+            .ilike('name', `%${parent.item_data.name}%`)
+            .limit(3);
+          
+          companies?.forEach(company => {
+            suggestions.push({
+              action: 'link_existing',
+              label: `Link to existing ${parent.item_type}: ${company.name}`,
+              entityId: company.id,
+            });
+          });
+        } else if (parent.item_type === 'ride_model') {
+          const { data: models } = await supabase
+            .from('ride_models')
+            .select('id, name')
+            .ilike('name', `%${parent.item_data.name}%`)
+            .limit(3);
+          
+          models?.forEach(model => {
+            suggestions.push({
+              action: 'link_existing',
+              label: `Link to existing ride model: ${model.name}`,
+              entityId: model.id,
+            });
+          });
         }
 
         suggestions.push({
@@ -121,7 +150,7 @@ export async function detectDependencyConflicts(
 
         conflicts.push({
           itemId: item.id,
-          type: 'missing_parent',
+          type: parent.status === 'rejected' ? 'rejected_parent' : 'missing_parent',
           message: `Cannot approve ${item.item_type} without its parent ${parent.item_type}`,
           suggestions,
         });
@@ -129,9 +158,205 @@ export async function detectDependencyConflicts(
     }
   }
 
+  // Check for circular dependencies
+  const circularDeps = detectCircularDependencies(items);
+  circularDeps.forEach(itemId => {
+    conflicts.push({
+      itemId,
+      type: 'circular_dependency',
+      message: 'Circular dependency detected in submission items',
+      suggestions: [
+        {
+          action: 'escalate',
+          label: 'Escalate for manual review',
+        },
+      ],
+    });
+  });
+
   return conflicts;
 }
 
+/**
+ * Detect circular dependencies
+ */
+function detectCircularDependencies(items: SubmissionItemWithDeps[]): string[] {
+  const circular: string[] = [];
+  const visited = new Set<string>();
+  const recursionStack = new Set<string>();
+
+  function hasCycle(itemId: string): boolean {
+    visited.add(itemId);
+    recursionStack.add(itemId);
+
+    const item = items.find(i => i.id === itemId);
+    if (item?.depends_on) {
+      if (!visited.has(item.depends_on)) {
+        if (hasCycle(item.depends_on)) {
+          return true;
+        }
+      } else if (recursionStack.has(item.depends_on)) {
+        return true;
+      }
+    }
+
+    recursionStack.delete(itemId);
+    return false;
+  }
+
+  items.forEach(item => {
+    if (!visited.has(item.id) && hasCycle(item.id)) {
+      circular.push(item.id);
+    }
+  });
+
+  return circular;
+}
+
+/**
+ * Link submission item to existing entity
+ */
+export async function linkToExistingEntity(
+  itemId: string,
+  entityId: string,
+  entityType: string
+): Promise<void> {
+  const { data: item, error: fetchError } = await supabase
+    .from('submission_items')
+    .select('*')
+    .eq('id', itemId)
+    .single();
+
+  if (fetchError || !item) throw fetchError || new Error('Item not found');
+
+  // Update item_data to mark it as linked to existing entity
+  const currentItemData = (item.item_data as any) || {};
+  const updatedItemData = {
+    ...currentItemData,
+    _linked_entity_id: entityId,
+    _skip_creation: true,
+  };
+
+  const { error: updateError } = await supabase
+    .from('submission_items')
+    .update({
+      item_data: updatedItemData,
+      approved_entity_id: entityId,
+      updated_at: new Date().toISOString(),
+    })
+    .eq('id', itemId);
+
+  if (updateError) throw updateError;
+}
+
+/**
+ * Resolve conflicts based on user selections
+ */
+export async function resolveConflicts(
+  conflicts: DependencyConflict[],
+  resolutions: Record<string, string>,
+  items: SubmissionItemWithDeps[],
+  userId: string
+): Promise<{ updatedItems: SubmissionItemWithDeps[]; newConflicts: DependencyConflict[] }> {
+  if (!userId) {
+    throw new Error('User authentication required to resolve conflicts');
+  }
+
+  const updatedItems = [...items];
+  const newConflicts: DependencyConflict[] = [];
+
+  for (const conflict of conflicts) {
+    const resolution = resolutions[conflict.itemId];
+    if (!resolution) continue;
+
+    const suggestion = conflict.suggestions.find(s => s.action === resolution);
+    if (!suggestion) continue;
+
+    try {
+      switch (suggestion.action) {
+        case 'create_parent': {
+          // Add parent item to be approved along with child
+          const item = items.find(i => i.id === conflict.itemId);
+          if (item?.depends_on) {
+            const parent = items.find(i => i.id === item.depends_on);
+            if (parent && parent.status === 'pending') {
+              // Mark parent for approval (will be handled in approval flow)
+              const idx = updatedItems.findIndex(i => i.id === parent.id);
+              if (idx >= 0) {
+                updatedItems[idx] = { 
+                  ...updatedItems[idx],
+                  status: 'pending' as const
+                };
+              }
+            }
+          }
+          break;
+        }
+
+        case 'link_existing': {
+          // Link to existing entity
+          if (suggestion.entityId) {
+            const item = items.find(i => i.id === conflict.itemId);
+            if (item?.depends_on) {
+              await linkToExistingEntity(item.depends_on, suggestion.entityId, item.item_type);
+              
+              // Update local copy
+              const parentIdx = updatedItems.findIndex(i => i.id === item.depends_on);
+              if (parentIdx >= 0) {
+                updatedItems[parentIdx] = {
+                  ...updatedItems[parentIdx],
+                  approved_entity_id: suggestion.entityId,
+                  item_data: {
+                    ...updatedItems[parentIdx].item_data,
+                    _linked_entity_id: suggestion.entityId,
+                    _skip_creation: true,
+                  },
+                };
+              }
+            }
+          }
+          break;
+        }
+
+        case 'escalate': {
+          // Escalate submission for admin review
+          const item = items.find(i => i.id === conflict.itemId);
+          if (item?.submission_id) {
+            await escalateSubmission(
+              item.submission_id,
+              `Dependency conflict: ${conflict.message}`,
+              userId
+            );
+          }
+          break;
+        }
+
+        case 'cascade_reject': {
+          // This would reject the item and its dependents
+          const item = items.find(i => i.id === conflict.itemId);
+          if (item) {
+            await rejectSubmissionItems(
+              [item],
+              'Rejected due to parent dependency conflict',
+              userId,
+              true
+            );
+          }
+          break;
+        }
+      }
+    } catch (error) {
+      console.error(`Error resolving conflict for item ${conflict.itemId}:`, error);
+      newConflicts.push({
+        ...conflict,
+        message: `Failed to resolve: ${error instanceof Error ? error.message : 'Unknown error'}`,
+      });
+    }
+  }
+
+  return { updatedItems, newConflicts };
+}
+
 /**
  * Update individual submission item status
  */
@@ -161,29 +386,45 @@ export async function approveSubmissionItems(
   // Sort by dependency order (parents first)
   const sortedItems = topologicalSort(items);
   
+  // Track entity ID mappings for dependency resolution
+  const entityIdMap = new Map<string, string>();
+  
   for (const item of sortedItems) {
     let entityId: string | null = null;
 
-    // Create the entity based on type
-    switch (item.item_type) {
-      case 'park':
-        entityId = await createPark(item.item_data);
-        break;
-      case 'ride':
-        entityId = await createRide(item.item_data);
-        break;
-      case 'manufacturer':
-      case 'operator':
-      case 'property_owner':
-      case 'designer':
-        entityId = await createCompany(item.item_data, item.item_type);
-        break;
-      case 'ride_model':
-        entityId = await createRideModel(item.item_data);
-        break;
-      case 'photo':
-        entityId = await approvePhotos(item.item_data);
-        break;
+    // Check if item is linked to existing entity (skip creation)
+    if (item.item_data._skip_creation && item.item_data._linked_entity_id) {
+      entityId = item.item_data._linked_entity_id;
+      entityIdMap.set(item.id, entityId);
+    } else {
+      // Resolve dependencies using entityIdMap
+      const resolvedItemData = resolveDependencies(item.item_data, entityIdMap);
+
+      // Create the entity based on type
+      switch (item.item_type) {
+        case 'park':
+          entityId = await createPark(resolvedItemData);
+          break;
+        case 'ride':
+          entityId = await createRide(resolvedItemData);
+          break;
+        case 'manufacturer':
+        case 'operator':
+        case 'property_owner':
+        case 'designer':
+          entityId = await createCompany(resolvedItemData, item.item_type);
+          break;
+        case 'ride_model':
+          entityId = await createRideModel(resolvedItemData);
+          break;
+        case 'photo':
+          entityId = await approvePhotos(resolvedItemData);
+          break;
+      }
+
+      if (entityId) {
+        entityIdMap.set(item.id, entityId);
+      }
     }
 
     // Update item status
@@ -194,6 +435,31 @@ export async function approveSubmissionItems(
   }
 }
 
+/**
+ * Resolve dependencies in item data using entity ID mappings
+ */
+function resolveDependencies(itemData: any, entityIdMap: Map<string, string>): any {
+  const resolved = { ...itemData };
+  
+  // Map common dependency fields
+  const dependencyFields = [
+    'park_id',
+    'manufacturer_id',
+    'operator_id',
+    'property_owner_id',
+    'designer_id',
+    'ride_model_id',
+  ];
+
+  dependencyFields.forEach(field => {
+    if (resolved[field] && entityIdMap.has(resolved[field])) {
+      resolved[field] = entityIdMap.get(resolved[field]);
+    }
+  });
+
+  return resolved;
+}
+
 /**
  * Topological sort for dependency-ordered processing
  */