diff --git a/backend/src/routes/products.js b/backend/src/routes/products.js
index 1019cad..36aa3b0 100644
--- a/backend/src/routes/products.js
+++ b/backend/src/routes/products.js
@@ -78,7 +78,7 @@ router.get('/', async (req, res, next) => {
       FROM products p
       JOIN product_categories pc ON p.category_id = pc.id
       LEFT JOIN product_rates pr ON p.id = pr.product_id
-      WHERE 1=1 ${whereClause}
+      WHERE 1=1 ${whereClause} AND COALESCE(p.archived,false) = false
       GROUP BY p.id, pc.name
       ORDER BY p.name
     `;
@@ -93,7 +93,7 @@ router.get('/', async (req, res, next) => {
       LEFT JOIN products p ON up.product_id = p.id
       LEFT JOIN product_categories pc ON p.category_id = pc.id
       LEFT JOIN product_categories upc ON up.category_id = upc.id
-      WHERE up.user_id = $1
+      WHERE up.user_id = $1 AND COALESCE(up.archived,false) = false
       ORDER BY COALESCE(up.custom_name, p.name)
     `;
 
@@ -662,7 +662,9 @@ router.delete('/user/:id', validateParams(idParamSchema), async (req, res, next)
     );
 
     if (parseInt(usageCheck.rows[0].count) > 0) {
-      throw new AppError('Cannot delete product that has been used in applications', 400);
+      // Soft-archive instead of delete when used
+      await pool.query('UPDATE user_products SET archived = true, updated_at = CURRENT_TIMESTAMP WHERE id = $1', [userProductId]);
+      return res.json({ success: true, message: 'Custom product archived (in use by applications)' });
     }
 
     await pool.query('DELETE FROM user_products WHERE id = $1', [userProductId]);
@@ -676,6 +678,30 @@ router.delete('/user/:id', validateParams(idParamSchema), async (req, res, next)
   }
 });
 
+// @route   PUT /api/products/user/:id/archive
+// @desc    Archive user's custom product
+// @access  Private
+router.put('/user/:id/archive', validateParams(idParamSchema), async (req, res, next) => {
+  try {
+    const userProductId = req.params.id;
+    const upd = await pool.query('UPDATE user_products SET archived = true, updated_at = CURRENT_TIMESTAMP WHERE id = $1 AND user_id = $2', [userProductId, req.user.id]);
+    if (upd.rowCount === 0) throw new AppError('User product not found', 404);
+    res.json({ success: true, message: 'Custom product archived' });
+  } catch (error) { next(error); }
+});
+
+// @route   PUT /api/products/user/:id/unarchive
+// @desc    Unarchive user's custom product
+// @access  Private
+router.put('/user/:id/unarchive', validateParams(idParamSchema), async (req, res, next) => {
+  try {
+    const userProductId = req.params.id;
+    const upd = await pool.query('UPDATE user_products SET archived = false, updated_at = CURRENT_TIMESTAMP WHERE id = $1 AND user_id = $2', [userProductId, req.user.id]);
+    if (upd.rowCount === 0) throw new AppError('User product not found', 404);
+    res.json({ success: true, message: 'Custom product unarchived' });
+  } catch (error) { next(error); }
+});
+
 // @route   GET /api/products/search
 // @desc    Search products by name or ingredients
 // @access  Private
@@ -721,4 +747,4 @@ router.get('/search', async (req, res, next) => {
   }
 });
 
-module.exports = router;
\ No newline at end of file
+module.exports = router;
diff --git a/database/migrations/V7__archive_products.sql b/database/migrations/V7__archive_products.sql
new file mode 100644
index 0000000..e6ffb4d
--- /dev/null
+++ b/database/migrations/V7__archive_products.sql
@@ -0,0 +1,12 @@
+-- Add archived flag to products and user_products
+ALTER TABLE IF EXISTS products
+  ADD COLUMN IF NOT EXISTS archived BOOLEAN DEFAULT FALSE;
+
+ALTER TABLE IF EXISTS user_products
+  ADD COLUMN IF NOT EXISTS archived BOOLEAN DEFAULT FALSE,
+  ADD COLUMN IF NOT EXISTS updated_at TIMESTAMP DEFAULT CURRENT_TIMESTAMP;
+
+-- Indexes for filtering
+CREATE INDEX IF NOT EXISTS idx_products_archived ON products (archived);
+CREATE INDEX IF NOT EXISTS idx_user_products_archived ON user_products (archived);
+
diff --git a/frontend/src/pages/Admin/AdminProducts.js b/frontend/src/pages/Admin/AdminProducts.js
index 2251959..bc83818 100644
--- a/frontend/src/pages/Admin/AdminProducts.js
+++ b/frontend/src/pages/Admin/AdminProducts.js
@@ -113,7 +113,18 @@ const AdminProducts = () => {
       if (selectedProduct.isShared) {
         await adminAPI.deleteProduct(selectedProduct.id);
       } else {
-        await productsAPI.deleteUserProduct(selectedProduct.id);
+        try {
+          await productsAPI.deleteUserProduct(selectedProduct.id);
+        } catch (e) {
+          const msg = e?.response?.data?.message || '';
+          if (msg.includes('used in applications')) {
+            // Fallback to archive instead of delete
+            await productsAPI.archiveUserProduct(selectedProduct.id);
+            toast('Product archived instead of deleted (in use)');
+          } else {
+            throw e;
+          }
+        }
       }
       toast.success('Product deleted successfully');
       setShowDeleteModal(false);
@@ -121,7 +132,7 @@ const AdminProducts = () => {
       fetchData();
     } catch (error) {
       console.error('Failed to delete product:', error);
-      toast.error('Failed to delete product');
+      toast.error(error?.response?.data?.message || 'Failed to delete product');
     }
   };
 
diff --git a/frontend/src/services/api.js b/frontend/src/services/api.js
index d0fdd16..d51515d 100644
--- a/frontend/src/services/api.js
+++ b/frontend/src/services/api.js
@@ -156,6 +156,8 @@ export const productsAPI = {
   getUserProduct: (id) => apiClient.get(`/products/user/${id}`),
   updateUserProduct: (id, productData) => apiClient.put(`/products/user/${id}`, productData),
   deleteUserProduct: (id) => apiClient.delete(`/products/user/${id}`),
+  archiveUserProduct: (id) => apiClient.put(`/products/user/${id}/archive`),
+  unarchiveUserProduct: (id) => apiClient.put(`/products/user/${id}/unarchive`),
 };
 
 // Applications API endpoints