server {
    listen 80;
    server_name localhost;

    # Proxy React dev server for development
    location / {
        proxy_pass http://127.0.0.1:5173;
        proxy_set_header Host $host;
        proxy_set_header X-Real-IP $remote_addr;
        proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
        proxy_set_header X-Forwarded-Proto $scheme;
        
        # WebSocket support for HMR
        proxy_http_version 1.1;
        proxy_set_header Upgrade $http_upgrade;
        proxy_set_header Connection "upgrade";
        proxy_redirect off;
    }

    # Proxy API requests to Laravel backend
    location /api/ {
        proxy_pass http://127.0.0.1:8000;
        proxy_set_header Host $host;
        proxy_set_header X-Real-IP $remote_addr;
        proxy_set_header X-Forwarded-For $proxy_add_x_forwarded_for;
        proxy_set_header X-Forwarded-Proto $scheme;
        proxy_redirect off;
    }

    # Serve Laravel public assets (images, etc.)
    location /images/ {
        alias /var/www/html/backend/public/images/;
        expires 1y;
        add_header Cache-Control "public, immutable";
    }

    # Handle static assets with caching
    location ~* \.(js|css|png|jpg|jpeg|gif|ico|svg|woff|woff2|ttf|eot)$ {
        expires 1y;
        add_header Cache-Control "public, immutable";
        try_files $uri =404;
    }

    # Security headers
    add_header X-Content-Type-Options nosniff;
    add_header X-Frame-Options DENY;
    add_header X-XSS-Protection "1; mode=block";

    # Gzip compression
    gzip on;
    gzip_vary on;
    gzip_min_length 1024;
    gzip_types text/plain text/css text/xml text/javascript application/javascript application/xml+rss application/json;
}