diff --git a/src/gitlab/transformers/discussion.rs b/src/gitlab/transformers/discussion.rs
index 7ffe43f..78aceee 100644
--- a/src/gitlab/transformers/discussion.rs
+++ b/src/gitlab/transformers/discussion.rs
@@ -46,6 +46,18 @@ pub struct NormalizedNote {
     pub resolved: bool,
     pub resolved_by: Option<String>,
     pub resolved_at: Option<i64>,
+    // DiffNote position fields (CP1 - basic path/line)
+    pub position_old_path: Option<String>,
+    pub position_new_path: Option<String>,
+    pub position_old_line: Option<i32>,
+    pub position_new_line: Option<i32>,
+    // DiffNote extended position fields (CP2)
+    pub position_type: Option<String>, // "text" | "image" | "file"
+    pub position_line_range_start: Option<i32>, // multi-line comment start
+    pub position_line_range_end: Option<i32>, // multi-line comment end
+    pub position_base_sha: Option<String>, // Base commit SHA for diff
+    pub position_start_sha: Option<String>, // Start commit SHA for diff
+    pub position_head_sha: Option<String>, // Head commit SHA for diff
 }
 
 /// Parse ISO 8601 timestamp to milliseconds, returning None on failure.
@@ -113,6 +125,20 @@ pub fn transform_discussion(
     }
 }
 
+/// Transform a GitLab discussion for MR context.
+/// Convenience wrapper that uses NoteableRef::MergeRequest internally.
+pub fn transform_mr_discussion(
+    gitlab_discussion: &GitLabDiscussion,
+    local_project_id: i64,
+    local_mr_id: i64,
+) -> NormalizedDiscussion {
+    transform_discussion(
+        gitlab_discussion,
+        local_project_id,
+        NoteableRef::MergeRequest(local_mr_id),
+    )
+}
+
 /// Transform notes from a GitLab discussion into normalized schema.
 pub fn transform_notes(
     gitlab_discussion: &GitLabDiscussion,
@@ -134,6 +160,20 @@ fn transform_single_note(
     position: i32,
     now: i64,
 ) -> NormalizedNote {
+    // Extract DiffNote position fields if present
+    let (
+        position_old_path,
+        position_new_path,
+        position_old_line,
+        position_new_line,
+        position_type,
+        position_line_range_start,
+        position_line_range_end,
+        position_base_sha,
+        position_start_sha,
+        position_head_sha,
+    ) = extract_position_fields(&note.position);
+
     NormalizedNote {
         gitlab_id: note.id,
         project_id: local_project_id,
@@ -152,9 +192,138 @@ fn transform_single_note(
             .resolved_at
             .as_ref()
             .and_then(|ts| parse_timestamp_opt(ts)),
+        position_old_path,
+        position_new_path,
+        position_old_line,
+        position_new_line,
+        position_type,
+        position_line_range_start,
+        position_line_range_end,
+        position_base_sha,
+        position_start_sha,
+        position_head_sha,
     }
 }
 
+/// Extract DiffNote position fields from GitLabNotePosition.
+/// Returns tuple of all position fields (all None if position is None).
+#[allow(clippy::type_complexity)]
+fn extract_position_fields(
+    position: &Option<crate::gitlab::types::GitLabNotePosition>,
+) -> (
+    Option<String>,
+    Option<String>,
+    Option<i32>,
+    Option<i32>,
+    Option<String>,
+    Option<i32>,
+    Option<i32>,
+    Option<String>,
+    Option<String>,
+    Option<String>,
+) {
+    match position {
+        Some(pos) => {
+            let line_range_start = pos.line_range.as_ref().and_then(|lr| lr.start_line());
+            let line_range_end = pos.line_range.as_ref().and_then(|lr| lr.end_line());
+
+            (
+                pos.old_path.clone(),
+                pos.new_path.clone(),
+                pos.old_line,
+                pos.new_line,
+                pos.position_type.clone(),
+                line_range_start,
+                line_range_end,
+                pos.base_sha.clone(),
+                pos.start_sha.clone(),
+                pos.head_sha.clone(),
+            )
+        }
+        None => (None, None, None, None, None, None, None, None, None, None),
+    }
+}
+
+/// Parse ISO 8601 timestamp to milliseconds with strict error handling.
+/// Returns Err with the invalid timestamp in the error message.
+fn parse_timestamp_strict(ts: &str) -> Result<i64, String> {
+    DateTime::parse_from_rfc3339(ts)
+        .map(|dt| dt.timestamp_millis())
+        .map_err(|_| format!("Invalid timestamp: {}", ts))
+}
+
+/// Transform notes from a GitLab discussion with strict timestamp parsing.
+/// Returns Err if any timestamp is invalid - no silent fallback to 0.
+pub fn transform_notes_with_diff_position(
+    gitlab_discussion: &GitLabDiscussion,
+    local_project_id: i64,
+) -> Result<Vec<NormalizedNote>, String> {
+    let now = now_ms();
+
+    gitlab_discussion
+        .notes
+        .iter()
+        .enumerate()
+        .map(|(idx, note)| transform_single_note_strict(note, local_project_id, idx as i32, now))
+        .collect()
+}
+
+fn transform_single_note_strict(
+    note: &GitLabNote,
+    local_project_id: i64,
+    position: i32,
+    now: i64,
+) -> Result<NormalizedNote, String> {
+    // Parse timestamps with strict error handling
+    let created_at = parse_timestamp_strict(&note.created_at)?;
+    let updated_at = parse_timestamp_strict(&note.updated_at)?;
+    let resolved_at = match &note.resolved_at {
+        Some(ts) => Some(parse_timestamp_strict(ts)?),
+        None => None,
+    };
+
+    // Extract DiffNote position fields if present
+    let (
+        position_old_path,
+        position_new_path,
+        position_old_line,
+        position_new_line,
+        position_type,
+        position_line_range_start,
+        position_line_range_end,
+        position_base_sha,
+        position_start_sha,
+        position_head_sha,
+    ) = extract_position_fields(&note.position);
+
+    Ok(NormalizedNote {
+        gitlab_id: note.id,
+        project_id: local_project_id,
+        note_type: note.note_type.clone(),
+        is_system: note.system,
+        author_username: note.author.username.clone(),
+        body: note.body.clone(),
+        created_at,
+        updated_at,
+        last_seen_at: now,
+        position,
+        resolvable: note.resolvable,
+        resolved: note.resolved,
+        resolved_by: note.resolved_by.as_ref().map(|a| a.username.clone()),
+        resolved_at,
+        position_old_path,
+        position_new_path,
+        position_old_line,
+        position_new_line,
+        position_type,
+        position_line_range_start,
+        position_line_range_end,
+        position_base_sha,
+        position_start_sha,
+        position_head_sha,
+    })
+}
+
 #[cfg(test)]
 mod tests {
     use super::*;
diff --git a/src/gitlab/transformers/issue.rs b/src/gitlab/transformers/issue.rs
index f21b115..5892ca0 100644
--- a/src/gitlab/transformers/issue.rs
+++ b/src/gitlab/transformers/issue.rs
@@ -24,8 +24,8 @@ pub struct IssueRow {
     pub created_at: i64, // ms epoch UTC
     pub updated_at: i64, // ms epoch UTC
     pub web_url: String,
-    pub due_date: Option<String>,           // YYYY-MM-DD
-    pub milestone_title: Option<String>,    // Denormalized for quick display
+    pub due_date: Option<String>,        // YYYY-MM-DD
+    pub milestone_title: Option<String>, // Denormalized for quick display
 }
 
 /// Local schema representation of a milestone row.
@@ -62,11 +62,8 @@ pub fn transform_issue(issue: GitLabIssue) -> Result<IssueWithMetadata, Transfor
     let created_at = parse_timestamp(&issue.created_at)?;
     let updated_at = parse_timestamp(&issue.updated_at)?;
 
-    let assignee_usernames: Vec<String> = issue
-        .assignees
-        .iter()
-        .map(|a| a.username.clone())
-        .collect();
+    let assignee_usernames: Vec<String> =
+        issue.assignees.iter().map(|a| a.username.clone()).collect();
 
     let milestone_title = issue.milestone.as_ref().map(|m| m.title.clone());
 
@@ -252,7 +249,10 @@ mod tests {
         assert_eq!(milestone.description, Some("First release".to_string()));
         assert_eq!(milestone.state, Some("active".to_string()));
         assert_eq!(milestone.due_date, Some("2024-02-01".to_string()));
-        assert_eq!(milestone.web_url, Some("https://gitlab.example.com/-/milestones/5".to_string()));
+        assert_eq!(
+            milestone.web_url,
+            Some("https://gitlab.example.com/-/milestones/5".to_string())
+        );
     }
 
     #[test]
diff --git a/src/gitlab/transformers/merge_request.rs b/src/gitlab/transformers/merge_request.rs
new file mode 100644
index 0000000..650df40
--- /dev/null
+++ b/src/gitlab/transformers/merge_request.rs
@@ -0,0 +1,155 @@
+//! Merge request transformer: converts GitLabMergeRequest to local schema.
+
+use chrono::DateTime;
+use std::time::{SystemTime, UNIX_EPOCH};
+
+use crate::gitlab::types::GitLabMergeRequest;
+
+/// Get current time in milliseconds since Unix epoch.
+fn now_ms() -> i64 {
+    SystemTime::now()
+        .duration_since(UNIX_EPOCH)
+        .expect("Time went backwards")
+        .as_millis() as i64
+}
+
+/// Parse ISO 8601 timestamp to milliseconds since Unix epoch.
+fn iso_to_ms(ts: &str) -> Result<i64, String> {
+    DateTime::parse_from_rfc3339(ts)
+        .map(|dt| dt.timestamp_millis())
+        .map_err(|e| format!("Failed to parse timestamp '{}': {}", ts, e))
+}
+
+/// Parse optional ISO 8601 timestamp to optional milliseconds since Unix epoch.
+fn iso_to_ms_opt(ts: &Option<String>) -> Result<Option<i64>, String> {
+    match ts {
+        Some(s) => iso_to_ms(s).map(Some),
+        None => Ok(None),
+    }
+}
+
+/// Local schema representation of a merge request row.
+#[derive(Debug, Clone)]
+pub struct NormalizedMergeRequest {
+    pub gitlab_id: i64,
+    pub project_id: i64,
+    pub iid: i64,
+    pub title: String,
+    pub description: Option<String>,
+    pub state: String,
+    pub draft: bool,
+    pub author_username: String,
+    pub source_branch: String,
+    pub target_branch: String,
+    pub head_sha: Option<String>,
+    pub references_short: Option<String>,
+    pub references_full: Option<String>,
+    pub detailed_merge_status: Option<String>,
+    pub merge_user_username: Option<String>,
+    pub created_at: i64,        // ms epoch UTC
+    pub updated_at: i64,        // ms epoch UTC
+    pub merged_at: Option<i64>, // ms epoch UTC
+    pub closed_at: Option<i64>, // ms epoch UTC
+    pub last_seen_at: i64,      // ms epoch UTC
+    pub web_url: String,
+}
+
+/// Merge request bundled with extracted metadata.
+#[derive(Debug, Clone)]
+pub struct MergeRequestWithMetadata {
+    pub merge_request: NormalizedMergeRequest,
+    pub label_names: Vec<String>,
+    pub assignee_usernames: Vec<String>,
+    pub reviewer_usernames: Vec<String>,
+}
+
+/// Transform a GitLab merge request into local schema format.
+///
+/// # Arguments
+/// * `gitlab_mr` - The GitLab MR API response
+/// * `local_project_id` - The local database project ID (not GitLab's project_id)
+///
+/// # Returns
+/// * `Ok(MergeRequestWithMetadata)` - Transformed MR with extracted metadata
+/// * `Err(String)` - Error message if transformation fails (e.g., invalid timestamps)
+pub fn transform_merge_request(
+    gitlab_mr: &GitLabMergeRequest,
+    local_project_id: i64,
+) -> Result<MergeRequestWithMetadata, String> {
+    // Parse required timestamps
+    let created_at = iso_to_ms(&gitlab_mr.created_at)?;
+    let updated_at = iso_to_ms(&gitlab_mr.updated_at)?;
+
+    // Parse optional timestamps
+    let merged_at = iso_to_ms_opt(&gitlab_mr.merged_at)?;
+    let closed_at = iso_to_ms_opt(&gitlab_mr.closed_at)?;
+
+    // Draft: prefer draft, fallback to work_in_progress
+    let is_draft = gitlab_mr.draft || gitlab_mr.work_in_progress;
+
+    // Merge status: prefer detailed_merge_status over legacy
+    let detailed_merge_status = gitlab_mr
+        .detailed_merge_status
+        .clone()
+        .or_else(|| gitlab_mr.merge_status_legacy.clone());
+
+    // Merge user: prefer merge_user over merged_by
+    let merge_user_username = gitlab_mr
+        .merge_user
+        .as_ref()
+        .map(|u| u.username.clone())
+        .or_else(|| gitlab_mr.merged_by.as_ref().map(|u| u.username.clone()));
+
+    // References extraction
+    let (references_short, references_full) = gitlab_mr
+        .references
+        .as_ref()
+        .map(|r| (Some(r.short.clone()), Some(r.full.clone())))
+        .unwrap_or((None, None));
+
+    // Head SHA
+    let head_sha = gitlab_mr.sha.clone();
+
+    // Extract assignee usernames
+    let assignee_usernames: Vec<String> = gitlab_mr
+        .assignees
+        .iter()
+        .map(|a| a.username.clone())
+        .collect();
+
+    // Extract reviewer usernames
+    let reviewer_usernames: Vec<String> = gitlab_mr
+        .reviewers
+        .iter()
+        .map(|r| r.username.clone())
+        .collect();
+
+    Ok(MergeRequestWithMetadata {
+        merge_request: NormalizedMergeRequest {
+            gitlab_id: gitlab_mr.id,
+            project_id: local_project_id,
+            iid: gitlab_mr.iid,
+            title: gitlab_mr.title.clone(),
+            description: gitlab_mr.description.clone(),
+            state: gitlab_mr.state.clone(),
+            draft: is_draft,
+            author_username: gitlab_mr.author.username.clone(),
+            source_branch: gitlab_mr.source_branch.clone(),
+            target_branch: gitlab_mr.target_branch.clone(),
+            head_sha,
+            references_short,
+            references_full,
+            detailed_merge_status,
+            merge_user_username,
+            created_at,
+            updated_at,
+            merged_at,
+            closed_at,
+            last_seen_at: now_ms(),
+            web_url: gitlab_mr.web_url.clone(),
+        },
+        label_names: gitlab_mr.labels.clone(),
+        assignee_usernames,
+        reviewer_usernames,
+    })
+}
diff --git a/src/gitlab/transformers/mod.rs b/src/gitlab/transformers/mod.rs
index 46ce550..55f0925 100644
--- a/src/gitlab/transformers/mod.rs
+++ b/src/gitlab/transformers/mod.rs
@@ -2,6 +2,13 @@
 
 pub mod discussion;
 pub mod issue;
+pub mod merge_request;
 
-pub use discussion::{NormalizedDiscussion, NormalizedNote, NoteableRef, transform_discussion, transform_notes};
+pub use discussion::{
+    NormalizedDiscussion, NormalizedNote, NoteableRef, transform_discussion,
+    transform_mr_discussion, transform_notes, transform_notes_with_diff_position,
+};
 pub use issue::{IssueRow, IssueWithMetadata, MilestoneRow, transform_issue};
+pub use merge_request::{
+    MergeRequestWithMetadata, NormalizedMergeRequest, transform_merge_request,
+};