diff --git a/.kiro/specs/ultimate-lists-app/tasks.md b/.kiro/specs/ultimate-lists-app/tasks.md
index 153e227..ed3e225 100644
--- a/.kiro/specs/ultimate-lists-app/tasks.md
+++ b/.kiro/specs/ultimate-lists-app/tasks.md
@@ -215,7 +215,7 @@
   - Sanitize user inputs
   - _Requirements: 1.1, 2.1_
 
-- [ ] 18. Optimize performance
+- [-] 18. Optimize performance
   - Add database indexes for frequently queried fields
   - Implement pagination for large lists
   - Optimize bundle size with code splitting
diff --git a/components/EmptyState.tsx b/components/EmptyState.tsx
index f46c68d..b92b696 100644
--- a/components/EmptyState.tsx
+++ b/components/EmptyState.tsx
@@ -1,6 +1,6 @@
 'use client'
 
-import { ReactNode } from 'react'
+import { memo, ReactNode } from 'react'
 import { Inbox, ListTodo, Search, Filter } from 'lucide-react'
 
 interface EmptyStateProps {
@@ -10,7 +10,7 @@ interface EmptyStateProps {
   action?: ReactNode
 }
 
-export default function EmptyState({ icon = 'inbox', title, description, action }: EmptyStateProps) {
+function EmptyState({ icon = 'inbox', title, description, action }: EmptyStateProps) {
   const icons = {
     inbox: <Inbox size={48} className="text-gray-300" />,
     list: <ListTodo size={48} className="text-gray-300" />,
@@ -39,3 +39,5 @@ export default function EmptyState({ icon = 'inbox', title, description, action
     </div>
   )
 }
+
+export default memo(EmptyState)
diff --git a/components/FilterPanel.tsx b/components/FilterPanel.tsx
index 81554f8..73b3488 100644
--- a/components/FilterPanel.tsx
+++ b/components/FilterPanel.tsx
@@ -1,6 +1,6 @@
 'use client'
 
-import { useState } from 'react'
+import { memo, useState } from 'react'
 import { Filter, X, ChevronDown, ChevronUp } from 'lucide-react'
 
 export interface FilterState {
@@ -19,7 +19,7 @@ interface FilterPanelProps {
   showListScope?: boolean
 }
 
-export default function FilterPanel({ 
+function FilterPanel({ 
   filters, 
   onFiltersChange,
   availableTags = [],
@@ -294,3 +294,5 @@ export default function FilterPanel({
     </div>
   )
 }
+
+export default memo(FilterPanel)
diff --git a/components/ItemCard.tsx b/components/ItemCard.tsx
index d4de6be..9b1a7fd 100644
--- a/components/ItemCard.tsx
+++ b/components/ItemCard.tsx
@@ -1,5 +1,6 @@
 'use client'
 
+import { memo } from 'react'
 import Link from 'next/link'
 import { Calendar, Tag, AlertCircle } from 'lucide-react'
 import ToggleItemButton from './ToggleItemButton'
@@ -19,7 +20,7 @@ interface ItemCardProps {
   listId: string
 }
 
-export default function ItemCard({ item, listId }: ItemCardProps) {
+function ItemCard({ item, listId }: ItemCardProps) {
   const tags = Array.isArray(item.tags) ? item.tags : []
   const isOverdue = item.dueDate && new Date(item.dueDate) < new Date() && !item.completed
 
@@ -104,3 +105,5 @@ export default function ItemCard({ item, listId }: ItemCardProps) {
     </div>
   )
 }
+
+export default memo(ItemCard)
diff --git a/components/ListCard.tsx b/components/ListCard.tsx
index 435925d..b3cb0dc 100644
--- a/components/ListCard.tsx
+++ b/components/ListCard.tsx
@@ -1,7 +1,7 @@
 'use client'
 
+import { memo, useState } from 'react'
 import Link from 'next/link'
-import { useState } from 'react'
 import { Edit2 } from 'lucide-react'
 import Modal from './Modal'
 import ListForm from './ListForm'
@@ -17,7 +17,7 @@ interface List {
   }>
 }
 
-export default function ListCard({ list }: { list: List }) {
+function ListCard({ list }: { list: List }) {
   const [isEditModalOpen, setIsEditModalOpen] = useState(false)
   const completedCount = list.items.filter(item => item.completed).length
   const totalCount = list.items.length
@@ -94,4 +94,6 @@ export default function ListCard({ list }: { list: List }) {
       </Modal>
     </>
   )
-}
\ No newline at end of file
+}
+
+export default memo(ListCard)
\ No newline at end of file
diff --git a/components/ListDetailView.tsx b/components/ListDetailView.tsx
index d2877a8..1ab2eb3 100644
--- a/components/ListDetailView.tsx
+++ b/components/ListDetailView.tsx
@@ -93,7 +93,9 @@ export default function ListDetailView({ listId, initialItems }: ListDetailViewP
         sortBy: newFilters.sortBy,
         sortOrder: newFilters.sortOrder
       })
-      setFilteredItems(results as Item[])
+      // Extract items from pagination result
+      const items = 'items' in results ? results.items : results
+      setFilteredItems(items as Item[])
     } catch (error) {
       console.error('Filter error:', error)
       setFilteredItems(initialItems)
diff --git a/components/SearchBar.tsx b/components/SearchBar.tsx
index a949bf3..57a03e1 100644
--- a/components/SearchBar.tsx
+++ b/components/SearchBar.tsx
@@ -1,5 +1,6 @@
 'use client'
 
+import { memo } from 'react'
 import { Search, X } from 'lucide-react'
 import { useSearch } from '@/hooks'
 
@@ -10,7 +11,7 @@ interface SearchBarProps {
   initialValue?: string
 }
 
-export default function SearchBar({ 
+function SearchBar({ 
   onSearch, 
   placeholder = 'Search tasks...', 
   debounceMs = 300,
@@ -53,3 +54,5 @@ export default function SearchBar({
     </div>
   )
 }
+
+export default memo(SearchBar)
diff --git a/components/SearchResults.tsx b/components/SearchResults.tsx
index 13f6b01..9a52938 100644
--- a/components/SearchResults.tsx
+++ b/components/SearchResults.tsx
@@ -1,5 +1,6 @@
 'use client'
 
+import { memo } from 'react'
 import { highlightText } from '@/lib/utils'
 import Link from 'next/link'
 import { Calendar, Tag, AlertCircle } from 'lucide-react'
@@ -25,7 +26,7 @@ interface SearchResultsProps {
   onClose?: () => void
 }
 
-export default function SearchResults({ results, query, onClose }: SearchResultsProps) {
+function SearchResults({ results, query, onClose }: SearchResultsProps) {
   if (!query.trim()) {
     return null
   }
@@ -155,3 +156,5 @@ export default function SearchResults({ results, query, onClose }: SearchResults
     </div>
   )
 }
+
+export default memo(SearchResults)
diff --git a/lib/actions.ts b/lib/actions.ts
index 4435752..f15b8f3 100644
--- a/lib/actions.ts
+++ b/lib/actions.ts
@@ -525,6 +525,8 @@ export async function getItemsByFilter(
     dueDateRange?: { start: Date | null; end: Date | null }
     sortBy?: 'createdAt' | 'dueDate' | 'priority' | 'title'
     sortOrder?: 'asc' | 'desc'
+    page?: number
+    pageSize?: number
   } = {}
 ) {
   try {
@@ -560,14 +562,26 @@ export async function getItemsByFilter(
       }
     }
 
-    // Fetch items from database
-    const items = await retryOperation(() =>
-      prisma.item.findMany({
-        where: whereClause,
-        include: {
-          list: true,
-        },
-      })
+    // Pagination parameters
+    const page = filters.page || 1
+    const pageSize = filters.pageSize || 50
+    const skip = (page - 1) * pageSize
+
+    // Fetch items from database with pagination
+    const [items, totalCount] = await retryOperation(() =>
+      Promise.all([
+        prisma.item.findMany({
+          where: whereClause,
+          include: {
+            list: true,
+          },
+          skip,
+          take: pageSize,
+        }),
+        prisma.item.count({
+          where: whereClause,
+        }),
+      ])
     )
 
     // Filter by tags (client-side since tags are stored as JSON)
@@ -618,7 +632,16 @@ export async function getItemsByFilter(
       return sortOrder === 'asc' ? comparison : -comparison
     })
 
-    return sortedItems
+    return {
+      items: sortedItems,
+      pagination: {
+        page,
+        pageSize,
+        totalCount,
+        totalPages: Math.ceil(totalCount / pageSize),
+        hasMore: page * pageSize < totalCount,
+      },
+    }
   } catch (error) {
     console.error('Error filtering items:', error)
     throw new Error('Failed to filter items. Please try again.')
diff --git a/next.config.js b/next.config.js
index a0501d7..9761814 100644
--- a/next.config.js
+++ b/next.config.js
@@ -1,8 +1,23 @@
 /** @type {import('next').NextConfig} */
 const nextConfig = {
   experimental: {
-    serverActions: true,
+    optimizePackageImports: ['lucide-react'],
   },
+  compiler: {
+    removeConsole: process.env.NODE_ENV === 'production' ? {
+      exclude: ['error', 'warn'],
+    } : false,
+  },
+  // Enable SWC minification for better performance
+  swcMinify: true,
+  // Optimize images
+  images: {
+    formats: ['image/avif', 'image/webp'],
+  },
+  // Enable compression
+  compress: true,
+  // Production source maps (smaller)
+  productionBrowserSourceMaps: false,
 }
 
 module.exports = nextConfig
\ No newline at end of file
diff --git a/prisma/schema.prisma b/prisma/schema.prisma
index 8a9e93f..cd1fb37 100644
--- a/prisma/schema.prisma
+++ b/prisma/schema.prisma
@@ -29,4 +29,12 @@ model Item {
   updatedAt   DateTime  @updatedAt
   listId      String
   list        List      @relation(fields: [listId], references: [id], onDelete: Cascade)
+
+  @@index([listId])
+  @@index([completed])
+  @@index([priority])
+  @@index([dueDate])
+  @@index([createdAt])
+  @@index([listId, completed])
+  @@index([listId, priority])
 }