diff --git a/internal/storage/sqlite/blocked_cache.go b/internal/storage/sqlite/blocked_cache.go
new file mode 100644
index 00000000..c50382bd
--- /dev/null
+++ b/internal/storage/sqlite/blocked_cache.go
@@ -0,0 +1,71 @@
+package sqlite
+
+import (
+	"context"
+	"database/sql"
+	"fmt"
+)
+
+// execer is an interface for types that can execute SQL queries
+// Both *sql.DB and *sql.Tx implement this interface
+type execer interface {
+	ExecContext(ctx context.Context, query string, args ...interface{}) (sql.Result, error)
+}
+
+// rebuildBlockedCache completely rebuilds the blocked_issues_cache table
+// This is used during cache invalidation when dependencies change
+func (s *SQLiteStorage) rebuildBlockedCache(ctx context.Context, tx *sql.Tx) error {
+	// Use the transaction if provided, otherwise use direct db connection
+	var exec execer = s.db
+	if tx != nil {
+		exec = tx
+	}
+
+	// Clear the cache
+	if _, err := exec.ExecContext(ctx, "DELETE FROM blocked_issues_cache"); err != nil {
+		return fmt.Errorf("failed to clear blocked_issues_cache: %w", err)
+	}
+
+	// Rebuild using the recursive CTE logic
+	query := `
+		INSERT INTO blocked_issues_cache (issue_id)
+		WITH RECURSIVE
+		  -- Step 1: Find issues blocked directly by dependencies
+		  blocked_directly AS (
+		    SELECT DISTINCT d.issue_id
+		    FROM dependencies d
+		    JOIN issues blocker ON d.depends_on_id = blocker.id
+		    WHERE d.type = 'blocks'
+		      AND blocker.status IN ('open', 'in_progress', 'blocked')
+		  ),
+
+		  -- Step 2: Propagate blockage to all descendants via parent-child
+		  blocked_transitively AS (
+		    -- Base case: directly blocked issues
+		    SELECT issue_id, 0 as depth
+		    FROM blocked_directly
+
+		    UNION ALL
+
+		    -- Recursive case: children of blocked issues inherit blockage
+		    SELECT d.issue_id, bt.depth + 1
+		    FROM blocked_transitively bt
+		    JOIN dependencies d ON d.depends_on_id = bt.issue_id
+		    WHERE d.type = 'parent-child'
+		      AND bt.depth < 50
+		  )
+		SELECT DISTINCT issue_id FROM blocked_transitively
+	`
+
+	if _, err := exec.ExecContext(ctx, query); err != nil {
+		return fmt.Errorf("failed to rebuild blocked_issues_cache: %w", err)
+	}
+
+	return nil
+}
+
+// invalidateBlockedCache rebuilds the blocked issues cache
+// Called when dependencies change or issue status changes
+func (s *SQLiteStorage) invalidateBlockedCache(ctx context.Context, tx *sql.Tx) error {
+	return s.rebuildBlockedCache(ctx, tx)
+}
diff --git a/internal/storage/sqlite/migrations.go b/internal/storage/sqlite/migrations.go
index aa44ad81..fceff72c 100644
--- a/internal/storage/sqlite/migrations.go
+++ b/internal/storage/sqlite/migrations.go
@@ -31,6 +31,7 @@ var migrationsList = []Migration{
 	{"source_repo_column", migrations.MigrateSourceRepoColumn},
 	{"repo_mtimes_table", migrations.MigrateRepoMtimesTable},
 	{"child_counters_table", migrations.MigrateChildCountersTable},
+	{"blocked_issues_cache", migrations.MigrateBlockedIssuesCache},
 }
 
 // MigrationInfo contains metadata about a migration for inspection
@@ -69,6 +70,7 @@ func getMigrationDescription(name string) string {
 		"source_repo_column":           "Adds source_repo column for multi-repo support",
 		"repo_mtimes_table":            "Adds repo_mtimes table for multi-repo hydration caching",
 		"child_counters_table":         "Adds child_counters table for hierarchical ID generation with ON DELETE CASCADE",
+		"blocked_issues_cache":         "Adds blocked_issues_cache table for GetReadyWork performance optimization (bd-5qim)",
 	}
 	
 	if desc, ok := descriptions[name]; ok {
diff --git a/internal/storage/sqlite/migrations/015_blocked_issues_cache.go b/internal/storage/sqlite/migrations/015_blocked_issues_cache.go
new file mode 100644
index 00000000..7b587bfe
--- /dev/null
+++ b/internal/storage/sqlite/migrations/015_blocked_issues_cache.go
@@ -0,0 +1,75 @@
+package migrations
+
+import (
+	"database/sql"
+	"fmt"
+)
+
+// MigrateBlockedIssuesCache creates the blocked_issues_cache table for performance optimization
+// This cache materializes the recursive CTE computation from GetReadyWork to avoid
+// expensive recursive queries on every call (bd-5qim)
+func MigrateBlockedIssuesCache(db *sql.DB) error {
+	// Check if table already exists
+	var tableName string
+	err := db.QueryRow(`
+		SELECT name FROM sqlite_master
+		WHERE type='table' AND name='blocked_issues_cache'
+	`).Scan(&tableName)
+
+	if err == sql.ErrNoRows {
+		// Create the cache table
+		_, err := db.Exec(`
+			CREATE TABLE blocked_issues_cache (
+				issue_id TEXT NOT NULL,
+				PRIMARY KEY (issue_id),
+				FOREIGN KEY (issue_id) REFERENCES issues(id) ON DELETE CASCADE
+			)
+		`)
+		if err != nil {
+			return fmt.Errorf("failed to create blocked_issues_cache table: %w", err)
+		}
+
+		// Populate the cache with initial data using the existing recursive CTE logic
+		_, err = db.Exec(`
+			INSERT INTO blocked_issues_cache (issue_id)
+			WITH RECURSIVE
+			  -- Step 1: Find issues blocked directly by dependencies
+			  blocked_directly AS (
+			    SELECT DISTINCT d.issue_id
+			    FROM dependencies d
+			    JOIN issues blocker ON d.depends_on_id = blocker.id
+			    WHERE d.type = 'blocks'
+			      AND blocker.status IN ('open', 'in_progress', 'blocked')
+			  ),
+
+			  -- Step 2: Propagate blockage to all descendants via parent-child
+			  blocked_transitively AS (
+			    -- Base case: directly blocked issues
+			    SELECT issue_id, 0 as depth
+			    FROM blocked_directly
+
+			    UNION ALL
+
+			    -- Recursive case: children of blocked issues inherit blockage
+			    SELECT d.issue_id, bt.depth + 1
+			    FROM blocked_transitively bt
+			    JOIN dependencies d ON d.depends_on_id = bt.issue_id
+			    WHERE d.type = 'parent-child'
+			      AND bt.depth < 50
+			  )
+			SELECT DISTINCT issue_id FROM blocked_transitively
+		`)
+		if err != nil {
+			return fmt.Errorf("failed to populate blocked_issues_cache: %w", err)
+		}
+
+		return nil
+	}
+
+	if err != nil {
+		return fmt.Errorf("failed to check for blocked_issues_cache table: %w", err)
+	}
+
+	// Table already exists
+	return nil
+}