diff --git a/src/lib/actions/entityCreateUpdate.ts b/src/lib/actions/entityCreateUpdate.ts
new file mode 100644
index 0000000..1f22e3f
--- /dev/null
+++ b/src/lib/actions/entityCreateUpdate.ts
@@ -0,0 +1,56 @@
+import { z } from 'zod';
+import { ActionResponse } from '@/lib/types/ActionResponse';
+import { entityFormSchema } from '@/lib/form-schemas/entityFormSchema';
+import { prismaClient } from '@/prisma';
+import { getUser } from '@/auth';
+import { URL_SIGN_IN } from '@/lib/constants';
+
+export default async function entityCreateUpdate({
+    id,
+    name,
+    type,
+}: z.infer<typeof entityFormSchema>): Promise<ActionResponse> {
+    'use server';
+
+    const user = await getUser();
+    if (!user) {
+        return {
+            type: 'error',
+            message: 'You must be logged in to create an entity.',
+            redirect: URL_SIGN_IN,
+        };
+    }
+
+    try {
+        if (id) {
+            await prismaClient.entity.update({
+                    where: {
+                        id: id,
+                    },
+                    data: {
+                        name: name,
+                        type: type,
+                    },
+                },
+            );
+        } else {
+            await prismaClient.entity.create({
+                data: {
+                    userId: user.id,
+                    name: name,
+                    type: type,
+                },
+            });
+        }
+    } catch (e) {
+        return {
+            type: 'error',
+            message: 'Invalid entity data',
+        };
+    }
+
+    return {
+        type: 'success',
+        message: `Created an entity with name: ${name} and type: ${type}`,
+    };
+}