diff --git a/README.md b/README.md
index 6caffc1..1710b0a 100644
--- a/README.md
+++ b/README.md
@@ -140,13 +140,13 @@ The application uses a simple password-based authentication system:
 
 ## ✅ Recently Implemented Features
 
-### Storage Location System Foundation 🚧 **PARTIALLY IMPLEMENTED**
+### Storage Location System Foundation ✅ **COMPLETED**
 - **Database Schema** ✅ Complete - Hierarchical storage locations with parent-child relationships
 - **Storage Location CRUD** ✅ Complete - Full create, read, update, delete operations via web interface
 - **QR Code Data Generation** ✅ Complete - Text-based QR codes with format `SL:{level}:{code}:{parent}`
 - **Hierarchical Organization** ✅ Complete - Unlimited nesting (shelf → drawer → box)
 - **Web Interface** ✅ Complete - Storage locations management page with navigation
-- **Component-Storage Integration** ❌ Missing - Linking components to storage locations not yet implemented correctly
+- **Component-Storage Integration** ✅ Complete - Components can now be assigned to storage locations via dropdown interface
 
 ### QR Code System - Still Needed 🚧 **NOT IMPLEMENTED**
 - **Visual QR Code Generation** ❌ Missing - No actual QR code images are generated
diff --git a/lib/components_elixir/inventory.ex b/lib/components_elixir/inventory.ex
index e389e1b..0109d9b 100644
--- a/lib/components_elixir/inventory.ex
+++ b/lib/components_elixir/inventory.ex
@@ -170,6 +170,14 @@ defmodule ComponentsElixir.Inventory do
     end
   end
 
+  @doc """
+  Computes the path for a storage location (for display purposes).
+  """
+  def compute_storage_location_path(nil), do: nil
+  def compute_storage_location_path(%StorageLocation{} = location) do
+    compute_path_for_single(location)
+  end
+
   # Convert string keys to atoms for consistency
   defp normalize_string_keys(attrs) when is_map(attrs) do
     Enum.reduce(attrs, %{}, fn
diff --git a/lib/components_elixir/inventory/component.ex b/lib/components_elixir/inventory/component.ex
index 52dd70e..c6e71c8 100644
--- a/lib/components_elixir/inventory/component.ex
+++ b/lib/components_elixir/inventory/component.ex
@@ -38,6 +38,7 @@ defmodule ComponentsElixir.Inventory.Component do
     |> validate_number(:count, greater_than_or_equal_to: 0)
     |> validate_url(:datasheet_url)
     |> foreign_key_constraint(:category_id)
+    |> foreign_key_constraint(:storage_location_id)
   end
 
   @doc """
diff --git a/lib/components_elixir_web/live/components_live.ex b/lib/components_elixir_web/live/components_live.ex
index 3fb33fd..5f16396 100644
--- a/lib/components_elixir_web/live/components_live.ex
+++ b/lib/components_elixir_web/live/components_live.ex
@@ -13,12 +13,14 @@ defmodule ComponentsElixirWeb.ComponentsLive do
       {:ok, socket |> push_navigate(to: ~p"/login")}
     else
       categories = Inventory.list_categories()
+      storage_locations = Inventory.list_storage_locations()
       stats = Inventory.component_stats()
 
       {:ok,
        socket
        |> assign(:session, session)
        |> assign(:categories, categories)
+       |> assign(:storage_locations, storage_locations)
        |> assign(:stats, stats)
        |> assign(:search, "")
        |> assign(:sort_criteria, "all_not_id")
@@ -293,6 +295,13 @@ defmodule ComponentsElixirWeb.ComponentsLive do
       end)
   end
 
+  defp storage_location_options(storage_locations) do
+    [{"No storage location", nil}] ++
+      Enum.map(storage_locations, fn location ->
+        {location.path, location.id}
+      end)
+  end
+
   @impl true
   def render(assigns) do
     ~H"""
@@ -439,8 +448,12 @@ defmodule ComponentsElixirWeb.ComponentsLive do
                     <.input field={@form[:keywords]} type="text" />
                   </div>
                   <div>
-                    <label class="block text-sm font-medium text-gray-700">Position</label>
-                    <.input field={@form[:position]} type="text" />
+                    <label class="block text-sm font-medium text-gray-700">Storage Location</label>
+                    <.input
+                      field={@form[:storage_location_id]}
+                      type="select"
+                      options={storage_location_options(@storage_locations)}
+                    />
                   </div>
                 </div>
 
@@ -552,8 +565,12 @@ defmodule ComponentsElixirWeb.ComponentsLive do
                     <.input field={@form[:keywords]} type="text" />
                   </div>
                   <div>
-                    <label class="block text-sm font-medium text-gray-700">Position</label>
-                    <.input field={@form[:position]} type="text" />
+                    <label class="block text-sm font-medium text-gray-700">Storage Location</label>
+                    <.input
+                      field={@form[:storage_location_id]}
+                      type="select"
+                      options={storage_location_options(@storage_locations)}
+                    />
                   </div>
                 </div>
 
@@ -684,9 +701,9 @@ defmodule ComponentsElixirWeb.ComponentsLive do
                         </p>
                       </div>
                       <div class="mt-2 flex items-center text-sm text-gray-500 sm:mt-0">
-                        <%= if component.position do %>
+                        <%= if component.storage_location do %>
                           <p class="mr-6">
-                            <span class="font-medium">Position:</span> {component.position}
+                            <span class="font-medium">Location:</span> {Inventory.compute_storage_location_path(component.storage_location)}
                           </p>
                         <% end %>
                         <p class="mr-6">