diff --git a/backend/app/services/device_discovery.py b/backend/app/services/device_discovery.py
index 1c760c6..9e35b68 100644
--- a/backend/app/services/device_discovery.py
+++ b/backend/app/services/device_discovery.py
@@ -488,13 +488,22 @@ async def discover_via_ssh(
         return result
 
     # Step 2: SSH into each rack, parse config, upsert devices
-    # Build mapping of external_id -> Rack ID for device assignment
-    rack_id_mapping = {}
+    # Build mapping of external_id -> Rack.id for device assignment.
+    # If a rack with that name doesn't exist yet in our racks table, create it now.
     from app.models.rack import Rack
-    all_racks = (await db.execute(select(Rack).where(Rack.object_id == obj.id))).scalars().all()
-    for rack in all_racks:
-        if rack.external_id:
-            rack_id_mapping[rack.external_id] = rack.id
+    rack_id_mapping: dict[str, int] = {}
+    for ext_id, _, _ in rack_hosts:
+        existing_rack_row = (await db.execute(
+            select(Rack).where(Rack.object_id == obj.id, Rack.name == ext_id)
+        )).scalar_one_or_none()
+        if existing_rack_row:
+            rack_id_mapping[ext_id] = existing_rack_row.id
+        else:
+            new_rack = Rack(object_id=obj.id, name=ext_id)
+            db.add(new_rack)
+            await db.flush()  # get the new PK
+            rack_id_mapping[ext_id] = new_rack.id
+            logger.info(f"[ssh_discovery] Created rack entry '{ext_id}' (id={new_rack.id})")
 
     for external_id, rack_host, rack_name in rack_hosts:
         # Resolve config_path override from the embedded device's connection_params