diff --git a/examples/web/src/pages/ai-demo.tsx b/examples/web/src/pages/ai-demo.tsx
index 223bc100..df1918fb 100644
--- a/examples/web/src/pages/ai-demo.tsx
+++ b/examples/web/src/pages/ai-demo.tsx
@@ -8,6 +8,7 @@ import Elevenlabs from '@imgly/plugin-ai-audio-generation-web/elevenlabs';
 import Anthropic from '@imgly/plugin-ai-text-generation-web/anthropic';
 import OpenAIText from '@imgly/plugin-ai-text-generation-web/open-ai';
 import FalAiSticker from '@imgly/plugin-ai-sticker-generation-web/fal-ai';
+import BackgroundRemovalPlugin, { FalAi } from '@imgly/plugin-background-removal-web';
 
 import { useRef } from 'react';
 import { rateLimitMiddleware } from '@imgly/plugin-ai-generation-web';
@@ -154,6 +155,23 @@ function App() {
               });
             };
 
+
+
+            await instance.addPlugin(BackgroundRemovalPlugin({
+              provider: await FalAi.Birefnet2({
+                  proxyUrl: import.meta.env.VITE_FAL_AI_PROXY_URL,
+                  headers: {
+                    'x-client-version': '1.0.0',
+                    'User-Agent': 'CreativeEditor-AI-Demo/1.0'
+                  },
+                  timeout: 30000,
+                  debug: true
+                })({ cesdk: instance }),
+              ui: {
+                locations: ['canvasMenu', 'dock']
+              }
+            }));
+
             instance.addPlugin(
               AiApps({
                 debug: true,
diff --git a/packages/plugin-background-removal-web/README.md b/packages/plugin-background-removal-web/README.md
index d8f33cf4..2769cc34 100644
--- a/packages/plugin-background-removal-web/README.md
+++ b/packages/plugin-background-removal-web/README.md
@@ -17,8 +17,11 @@ npm install @imgly/plugin-background-removal-web onnxruntime-web@1.21.0
 
 ## Usage
 
-Adding the plugin to CE.SDK will automatically add a background removal
-canvas menu entry for every block with an image fill.
+This plugin supports both **client-side** and **server-side** background removal:
+
+### Client-Side Background Removal (Default)
+
+For client-side background removal using the `@imgly/background-removal-js` library (no external API required):
 
 ```typescript
 import CreativeEditorSDK from '@cesdk/cesdk-js';
@@ -38,6 +41,8 @@ const config = {
 const cesdk = await CreativeEditorSDK.create(container, config);
 await cesdk.addDefaultAssetSources();
 await cesdk.addDemoAssetSources({ sceneMode: 'Design' });
+
+// Client-side background removal (default behavior)
 await cesdk.addPlugin(BackgroundRemovalPlugin());
 
 // Add the canvas menu component for background removal
@@ -49,6 +54,62 @@ cesdk.ui.setCanvasMenuOrder([
 await cesdk.createDesignScene();
 ```
 
+### Server-Side Background Removal (Fal-AI)
+
+For server-side background removal using Fal-AI or other providers:
+
+```typescript
+import CreativeEditorSDK from '@cesdk/cesdk-js';
+import BackgroundRemovalPlugin, { FalAi } from '@imgly/plugin-background-removal-web';
+
+// ... CESDK setup ...
+
+// Server-side background removal with pre-configured models
+await cesdk.addPlugin(BackgroundRemovalPlugin({
+  provider: await FalAi.Birefnet2({
+    proxyUrl: 'your-proxy-url',
+    headers: {
+      'x-client-version': '1.0.0',
+      'User-Agent': 'CreativeEditor-AI-Demo/1.0'
+    },
+    timeout: 30000,
+    debug: true
+  })({ cesdk }),
+  ui: {
+    locations: ['canvasMenu', 'dock']
+  }
+}));
+
+// Available pre-configured models:
+// - FalAi.Birefnet2 - High-quality background removal (fal-ai/birefnet/v2)
+// - FalAi.Birefnet - Original Birefnet model (fal-ai/birefnet)
+// - FalAi.BriaBackgroundRemove - Bria's background removal (fal-ai/bria/background/remove)
+// - FalAi.RembgEnhance - Enhanced background removal (smoretalk-ai/rembg-enhance)
+// - FalAi.ImageutilsRembg - Image utils background removal (fal-ai/imageutils/rembg)
+
+// Or use any custom model with createProvider:
+await cesdk.addPlugin(BackgroundRemovalPlugin({
+  provider: await FalAi.createProvider(
+    'your-custom-model-key',
+    {
+      proxyUrl: 'your-proxy-url',
+      headers: {
+        'x-client-version': '1.0.0',
+        'User-Agent': 'CreativeEditor-AI-Demo/1.0'
+      },
+      timeout: 30000,
+      debug: true
+    }
+  )({ cesdk }),
+  ui: {
+    locations: ['canvasMenu', 'dock']
+  }
+}));
+```
+
+Adding the plugin to CE.SDK will automatically add a background removal
+canvas menu entry for every block with an image fill.
+
 ## Configuration
 
 ### Adding Components
@@ -207,3 +268,8 @@ async function uploadBlob(
   return url;
 }
 ```
+
+## Performance Considerations
+
+- **Client-side**: Processes images locally, no network requests, but requires more client resources.
+- **Server-side**: Offloads processing to servers, requires network requests, but uses less client resources.
\ No newline at end of file
diff --git a/packages/plugin-background-removal-web/esbuild/config.mjs b/packages/plugin-background-removal-web/esbuild/config.mjs
index 04a6719d..51e41283 100644
--- a/packages/plugin-background-removal-web/esbuild/config.mjs
+++ b/packages/plugin-background-removal-web/esbuild/config.mjs
@@ -15,9 +15,25 @@ export default ({ isDevelopment }) => {
     `${chalk.yellow('Building version:')} ${chalk.bold(packageJson.version)}`
   );
 
-  return baseConfig({
+  // Base configuration that applies to all builds
+  const baseOptions = {
     isDevelopment,
     external: ['@imgly/background-removal', '@cesdk/cesdk-js'],
     pluginVersion: packageJson.version
-  });
+  };
+
+  // Get the base configuration
+  const config = baseConfig(baseOptions);
+
+  // Set entry points and output configuration
+  config.entryPoints = [
+    './src/index.ts',
+    './src/fal-ai/index.ts'
+  ];
+  config.outExtension = { '.js': '.mjs' };
+  config.outdir = './dist';
+  config.outbase = './src';
+  config.outfile = undefined;
+
+  return config;
 };
diff --git a/packages/plugin-background-removal-web/package.json b/packages/plugin-background-removal-web/package.json
index dad145b0..8d52670c 100644
--- a/packages/plugin-background-removal-web/package.json
+++ b/packages/plugin-background-removal-web/package.json
@@ -32,6 +32,10 @@
     ".": {
       "import": "./dist/index.mjs",
       "types": "./dist/index.d.ts"
+    },
+    "./fal-ai": {
+      "import": "./dist/fal-ai/index.mjs",
+      "types": "./dist/fal-ai/index.d.ts"
     }
   },
   "homepage": "https://img.ly/products/creative-sdk",
@@ -77,11 +81,12 @@
       "injected": true
     }
   },
-  "peerDependencies": {
-    "@cesdk/cesdk-js": "^1.32.0",
-    "onnxruntime-web": "1.21.0"
-  },
   "dependencies": {
     "@imgly/background-removal": "1.7.0"
+  },
+  "peerDependencies": {
+    "@cesdk/cesdk-js": "^1.32.0",
+    "onnxruntime-web": "1.21.0",
+    "@fal-ai/client": "^1.3.0"
   }
 }
diff --git a/packages/plugin-background-removal-web/src/fal-ai/createBackgroundRemovalProvider.ts b/packages/plugin-background-removal-web/src/fal-ai/createBackgroundRemovalProvider.ts
new file mode 100644
index 00000000..2fa6d09a
--- /dev/null
+++ b/packages/plugin-background-removal-web/src/fal-ai/createBackgroundRemovalProvider.ts
@@ -0,0 +1,120 @@
+import CreativeEditorSDK from '@cesdk/cesdk-js';
+import { fal } from '@fal-ai/client';
+import { BackgroundRemovalProvider } from '../processBackgroundRemoval';
+import { uploadImageInputToFalIfNeeded } from './utils';
+
+type BackgroundRemovalProviderConfiguration = {
+  proxyUrl: string;
+  debug?: boolean;
+  headers?: Record<string, string>;
+  timeout?: number;
+};
+
+export function createBackgroundRemovalProvider(
+  modelKey: string,
+  config: BackgroundRemovalProviderConfiguration
+): (context: {
+  cesdk: CreativeEditorSDK;
+}) => Promise<BackgroundRemovalProvider> {
+  return async ({ cesdk }: { cesdk: CreativeEditorSDK }) => {
+    // Configure fal client
+    fal.config({
+      proxyUrl: config.proxyUrl,
+      requestMiddleware: config.headers
+        ? async (request) => {
+            return {
+              ...request,
+              headers: {
+                ...request.headers,
+                ...config.headers
+              }
+            };
+          }
+        : undefined
+    });
+
+    const provider: BackgroundRemovalProvider = {
+      type: 'custom',
+      processImageFileURI: async (imageFileURI: string): Promise<string> => {
+        try {
+          if (config.debug) {
+            // eslint-disable-next-line no-console
+            console.log('Processing background removal with:', {
+              imageFileURI,
+              modelKey
+            });
+          }
+
+          // Upload image if needed (for blob: or buffer: URLs)
+          const processedImageUrl = await uploadImageInputToFalIfNeeded(
+            imageFileURI,
+            cesdk
+          );
+
+          const input = {
+            image_url: processedImageUrl || imageFileURI,
+            sync_mode: true
+          };
+
+          const controller = new AbortController();
+          const timeoutId = config.timeout
+            ? setTimeout(() => controller.abort(), config.timeout)
+            : undefined;
+
+          try {
+            const response = await fal.subscribe(modelKey, {
+              input,
+              logs: config.debug,
+              abortSignal: controller.signal
+            });
+
+            if (timeoutId) clearTimeout(timeoutId);
+
+            if (config.debug) {
+              // eslint-disable-next-line no-console
+              console.log('Background removal response:', response);
+            }
+
+            const resultUrl = response.data?.image?.url;
+            if (!resultUrl) {
+              throw new Error('No processed image URL in response');
+            }
+
+            return resultUrl;
+          } finally {
+            if (timeoutId) clearTimeout(timeoutId);
+          }
+        } catch (error) {
+          // eslint-disable-next-line no-console
+          console.error('Background removal error:', error);
+          throw error;
+        }
+      },
+
+      processSourceSet: async (sourceSet) => {
+        if (sourceSet.length === 0) {
+          throw new Error('No sources provided');
+        }
+
+        // Process the highest resolution source (first in the sorted array)
+        const highestResSource = sourceSet[0];
+        const processedUrl = await (provider as any).processImageFileURI(
+          highestResSource.uri
+        );
+
+        // Return a new source set with the processed image
+        return [
+          {
+            uri: processedUrl,
+            width: highestResSource.width,
+            height: highestResSource.height
+          }
+        ];
+      }
+    };
+
+    return provider;
+  };
+}
+
+export default createBackgroundRemovalProvider;
diff --git a/packages/plugin-background-removal-web/src/fal-ai/index.ts b/packages/plugin-background-removal-web/src/fal-ai/index.ts
new file mode 100644
index 00000000..38ed5334
--- /dev/null
+++ b/packages/plugin-background-removal-web/src/fal-ai/index.ts
@@ -0,0 +1,50 @@
+import { createBackgroundRemovalProvider } from './createBackgroundRemovalProvider';
+
+const FalAi = {
+  /**
+   * Creates a FalAI background removal provider for any model
+   * @param modelKey - The FalAI model key (e.g., 'fal-ai/birefnet', 'fal-ai/birefnet/v2')
+   * @param config - Provider configuration
+   */
+  createProvider: createBackgroundRemovalProvider,
+
+  /**
+   * Pre-configured provider for Birefnet v2 model
+   * @param config - Provider configuration
+   */
+  Birefnet2: (config: Parameters<typeof createBackgroundRemovalProvider>[1]) =>
+    createBackgroundRemovalProvider('fal-ai/birefnet/v2', config),
+
+  /**
+   * Pre-configured provider for Birefnet model
+   * @param config - Provider configuration
+   */
+  Birefnet: (config: Parameters<typeof createBackgroundRemovalProvider>[1]) =>
+    createBackgroundRemovalProvider('fal-ai/birefnet', config),
+
+  /**
+   * Pre-configured provider for Bria Background Remove model
+   * @param config - Provider configuration
+   */
+  BriaBackgroundRemove: (
+    config: Parameters<typeof createBackgroundRemovalProvider>[1]
+  ) => createBackgroundRemovalProvider('fal-ai/bria/background/remove', config),
+
+  /**
+   * Pre-configured provider for Rembg Enhance model
+   * @param config - Provider configuration
+   */
+  RembgEnhance: (
+    config: Parameters<typeof createBackgroundRemovalProvider>[1]
+  ) => createBackgroundRemovalProvider('smoretalk-ai/rembg-enhance', config),
+
+  /**
+   * Pre-configured provider for Imageutils Rembg model
+   * @param config - Provider configuration
+   */
+  ImageutilsRembg: (
+    config: Parameters<typeof createBackgroundRemovalProvider>[1]
+  ) => createBackgroundRemovalProvider('fal-ai/imageutils/rembg', config)
+};
+
+export default FalAi;
diff --git a/packages/plugin-background-removal-web/src/fal-ai/utils.ts b/packages/plugin-background-removal-web/src/fal-ai/utils.ts
new file mode 100644
index 00000000..b1113ce2
--- /dev/null
+++ b/packages/plugin-background-removal-web/src/fal-ai/utils.ts
@@ -0,0 +1,41 @@
+import { fal } from '@fal-ai/client';
+import { mimeTypeToExtension } from '@imgly/plugin-utils';
+import CreativeEditorSDK from '@cesdk/cesdk-js';
+
+export async function uploadImageInputToFalIfNeeded(
+  imageUrl?: string,
+  cesdk?: CreativeEditorSDK
+): Promise<string | undefined> {
+  if (imageUrl == null) return undefined;
+  if (imageUrl.startsWith('blob:')) {
+    const mimeType =
+      cesdk != null
+        ? await cesdk.engine.editor.getMimeType(imageUrl)
+        : 'image/png';
+    const imageUrlResponse = await fetch(imageUrl);
+    const imageUrlBlob = await imageUrlResponse.blob();
+    const imageUrlFile = new File(
+      [imageUrlBlob],
+      `image.${mimeTypeToExtension(mimeType)}`,
+      {
+        type: mimeType
+      }
+    );
+    return fal.storage.upload(imageUrlFile);
+  }
+  if (cesdk != null && imageUrl.startsWith('buffer:')) {
+    const mimeType = await cesdk.engine.editor.getMimeType(imageUrl);
+    const length = cesdk.engine.editor.getBufferLength(imageUrl);
+    const data = cesdk.engine.editor.getBufferData(imageUrl, 0, length);
+    const imageUrlFile = new File(
+      [data],
+      `image.${mimeTypeToExtension(mimeType)}`,
+      {
+        type: mimeType
+      }
+    );
+    return fal.storage.upload(imageUrlFile);
+  }
+
+  return imageUrl;
+}
diff --git a/packages/plugin-background-removal-web/src/index.ts b/packages/plugin-background-removal-web/src/index.ts
index e18e19b0..6758c1a0 100644
--- a/packages/plugin-background-removal-web/src/index.ts
+++ b/packages/plugin-background-removal-web/src/index.ts
@@ -6,4 +6,15 @@ const Plugin = (pluginConfiguration?: PluginConfiguration) => ({
   ...plugin(pluginConfiguration)
 });
 
+// Default export supports both client-side and provider-based usage
 export default Plugin;
+
+// Export FalAI providers for server-side background removal
+export { default as FalAi } from './fal-ai';
+
+// Export types
+export type { BackgroundRemovalProvider } from './processBackgroundRemoval';
+export type { PluginConfiguration } from './plugin';
+
+// Re-export the plugin function for direct usage
+export { plugin };
diff --git a/packages/plugin-background-removal-web/src/plugin.ts b/packages/plugin-background-removal-web/src/plugin.ts
index b04d15c4..38af1063 100644
--- a/packages/plugin-background-removal-web/src/plugin.ts
+++ b/packages/plugin-background-removal-web/src/plugin.ts
@@ -33,6 +33,7 @@ export default (
             cesdk,
             blockId,
             metadata,
+            // Use default client-side provider if no provider is specified
             pluginConfiguration.provider ?? {
               type: '@imgly/background-removal'
             }
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 2f95d192..b2158445 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -158,7 +158,7 @@ importers:
         version: file:packages/plugin-ai-video-generation-web(@cesdk/cesdk-js@1.49.1(react@18.3.1))
       '@imgly/plugin-background-removal-web':
         specifier: workspace:*
-        version: file:packages/plugin-background-removal-web(@cesdk/cesdk-js@1.49.1(react@18.3.1))(onnxruntime-web@1.21.0)
+        version: file:packages/plugin-background-removal-web(@cesdk/cesdk-js@1.49.1(react@18.3.1))(@fal-ai/client@1.3.0)(onnxruntime-web@1.21.0)
       '@imgly/plugin-cutout-library-web':
         specifier: workspace:*
         version: file:packages/plugin-cutout-library-web(@cesdk/cesdk-js@1.49.1(react@18.3.1))
@@ -563,6 +563,9 @@ importers:
 
   packages/plugin-background-removal-web:
     dependencies:
+      '@fal-ai/client':
+        specifier: ^1.3.0
+        version: 1.3.0
       '@imgly/background-removal':
         specifier: 1.7.0
         version: 1.7.0(onnxruntime-web@1.21.0)
@@ -1361,6 +1364,7 @@ packages:
     resolution: {directory: packages/plugin-background-removal-web, type: directory}
     peerDependencies:
       '@cesdk/cesdk-js': ^1.32.0
+      '@fal-ai/client': ^1.3.0
       onnxruntime-web: 1.21.0
 
   '@imgly/plugin-cutout-library-web@file:packages/plugin-cutout-library-web':
@@ -5058,9 +5062,10 @@ snapshots:
     dependencies:
       '@cesdk/cesdk-js': 1.49.1(react@18.3.1)
 
-  '@imgly/plugin-background-removal-web@file:packages/plugin-background-removal-web(@cesdk/cesdk-js@1.49.1(react@18.3.1))(onnxruntime-web@1.21.0)':
+  '@imgly/plugin-background-removal-web@file:packages/plugin-background-removal-web(@cesdk/cesdk-js@1.49.1(react@18.3.1))(@fal-ai/client@1.3.0)(onnxruntime-web@1.21.0)':
     dependencies:
       '@cesdk/cesdk-js': 1.49.1(react@18.3.1)
+      '@fal-ai/client': 1.3.0
       '@imgly/background-removal': 1.7.0(onnxruntime-web@1.21.0)
       onnxruntime-web: 1.21.0