diff --git a/apps/api/src/federation/federation.module.ts b/apps/api/src/federation/federation.module.ts
index 16ce9ea..d146631 100644
--- a/apps/api/src/federation/federation.module.ts
+++ b/apps/api/src/federation/federation.module.ts
@@ -18,14 +18,21 @@ import { SignatureService } from "./signature.service";
 import { ConnectionService } from "./connection.service";
 import { OIDCService } from "./oidc.service";
 import { CommandService } from "./command.service";
+import { QueryService } from "./query.service";
 import { FederationAgentService } from "./federation-agent.service";
 import { PrismaModule } from "../prisma/prisma.module";
+import { TasksModule } from "../tasks/tasks.module";
+import { EventsModule } from "../events/events.module";
+import { ProjectsModule } from "../projects/projects.module";
 import { RedisProvider } from "../common/providers/redis.provider";
 
 @Module({
   imports: [
     ConfigModule,
     PrismaModule,
+    TasksModule,
+    EventsModule,
+    ProjectsModule,
     HttpModule.register({
       timeout: 10000,
       maxRedirects: 5,
@@ -61,6 +68,7 @@ import { RedisProvider } from "../common/providers/redis.provider";
     ConnectionService,
     OIDCService,
     CommandService,
+    QueryService,
     FederationAgentService,
   ],
   exports: [
@@ -71,6 +79,7 @@ import { RedisProvider } from "../common/providers/redis.provider";
     ConnectionService,
     OIDCService,
     CommandService,
+    QueryService,
     FederationAgentService,
   ],
 })
diff --git a/apps/api/src/federation/query.service.spec.ts b/apps/api/src/federation/query.service.spec.ts
index 6d8b431..5efcabd 100644
--- a/apps/api/src/federation/query.service.spec.ts
+++ b/apps/api/src/federation/query.service.spec.ts
@@ -16,6 +16,9 @@ import { QueryService } from "./query.service";
 import { PrismaService } from "../prisma/prisma.service";
 import { FederationService } from "./federation.service";
 import { SignatureService } from "./signature.service";
+import { TasksService } from "../tasks/tasks.service";
+import { EventsService } from "../events/events.service";
+import { ProjectsService } from "../projects/projects.service";
 import { HttpService } from "@nestjs/axios";
 import { of, throwError } from "rxjs";
 import type { AxiosResponse } from "axios";
@@ -60,6 +63,18 @@ describe("QueryService", () => {
     get: vi.fn(),
   };
 
+  const mockTasksService = {
+    findAll: vi.fn(),
+  };
+
+  const mockEventsService = {
+    findAll: vi.fn(),
+  };
+
+  const mockProjectsService = {
+    findAll: vi.fn(),
+  };
+
   beforeEach(async () => {
     const module: TestingModule = await Test.createTestingModule({
       providers: [
@@ -69,6 +84,9 @@ describe("QueryService", () => {
         { provide: SignatureService, useValue: mockSignatureService },
         { provide: HttpService, useValue: mockHttpService },
         { provide: ConfigService, useValue: mockConfig },
+        { provide: TasksService, useValue: mockTasksService },
+        { provide: EventsService, useValue: mockEventsService },
+        { provide: ProjectsService, useValue: mockProjectsService },
       ],
     }).compile();
 
@@ -78,6 +96,20 @@ describe("QueryService", () => {
     signatureService = module.get<SignatureService>(SignatureService);
     httpService = module.get<HttpService>(HttpService);
 
+    // Setup default mock return values for service queries
+    mockTasksService.findAll.mockResolvedValue({
+      data: [],
+      meta: { total: 0, page: 1, limit: 50, totalPages: 0 },
+    });
+    mockEventsService.findAll.mockResolvedValue({
+      data: [],
+      meta: { total: 0, page: 1, limit: 50, totalPages: 0 },
+    });
+    mockProjectsService.findAll.mockResolvedValue({
+      data: [],
+      meta: { total: 0, page: 1, limit: 50, totalPages: 0 },
+    });
+
     vi.clearAllMocks();
   });
 
@@ -500,4 +532,177 @@ describe("QueryService", () => {
       await expect(service.processQueryResponse(response)).rejects.toThrow("Invalid signature");
     });
   });
+
+  describe("query processing with actual data", () => {
+    it("should process 'get tasks' query and return tasks data", async () => {
+      const queryMessage = {
+        messageId: "msg-1",
+        instanceId: "remote-instance-1",
+        query: "get tasks",
+        context: { workspaceId: "workspace-1" },
+        timestamp: Date.now(),
+        signature: "valid-signature",
+      };
+
+      const mockConnection = {
+        id: "connection-1",
+        workspaceId: "workspace-1",
+        remoteInstanceId: "remote-instance-1",
+        status: FederationConnectionStatus.ACTIVE,
+      };
+
+      const mockIdentity = {
+        instanceId: "local-instance-1",
+      };
+
+      mockPrisma.federationConnection.findFirst.mockResolvedValue(mockConnection);
+      mockSignatureService.validateTimestamp.mockReturnValue(true);
+      mockSignatureService.verifyMessage.mockResolvedValue({ valid: true });
+      mockFederationService.getInstanceIdentity.mockResolvedValue(mockIdentity);
+      mockSignatureService.signMessage.mockResolvedValue("response-signature");
+
+      const result = await service.handleIncomingQuery(queryMessage);
+
+      expect(result).toBeDefined();
+      expect(result.success).toBe(true);
+      expect(result.data).toBeDefined();
+      expect(result.correlationId).toBe(queryMessage.messageId);
+    });
+
+    it("should process 'get events' query and return events data", async () => {
+      const queryMessage = {
+        messageId: "msg-2",
+        instanceId: "remote-instance-1",
+        query: "get events",
+        context: { workspaceId: "workspace-1" },
+        timestamp: Date.now(),
+        signature: "valid-signature",
+      };
+
+      const mockConnection = {
+        id: "connection-1",
+        workspaceId: "workspace-1",
+        remoteInstanceId: "remote-instance-1",
+        status: FederationConnectionStatus.ACTIVE,
+      };
+
+      const mockIdentity = {
+        instanceId: "local-instance-1",
+      };
+
+      mockPrisma.federationConnection.findFirst.mockResolvedValue(mockConnection);
+      mockSignatureService.validateTimestamp.mockReturnValue(true);
+      mockSignatureService.verifyMessage.mockResolvedValue({ valid: true });
+      mockFederationService.getInstanceIdentity.mockResolvedValue(mockIdentity);
+      mockSignatureService.signMessage.mockResolvedValue("response-signature");
+
+      const result = await service.handleIncomingQuery(queryMessage);
+
+      expect(result).toBeDefined();
+      expect(result.success).toBe(true);
+      expect(result.data).toBeDefined();
+    });
+
+    it("should process 'get projects' query and return projects data", async () => {
+      const queryMessage = {
+        messageId: "msg-3",
+        instanceId: "remote-instance-1",
+        query: "get projects",
+        context: { workspaceId: "workspace-1" },
+        timestamp: Date.now(),
+        signature: "valid-signature",
+      };
+
+      const mockConnection = {
+        id: "connection-1",
+        workspaceId: "workspace-1",
+        remoteInstanceId: "remote-instance-1",
+        status: FederationConnectionStatus.ACTIVE,
+      };
+
+      const mockIdentity = {
+        instanceId: "local-instance-1",
+      };
+
+      mockPrisma.federationConnection.findFirst.mockResolvedValue(mockConnection);
+      mockSignatureService.validateTimestamp.mockReturnValue(true);
+      mockSignatureService.verifyMessage.mockResolvedValue({ valid: true });
+      mockFederationService.getInstanceIdentity.mockResolvedValue(mockIdentity);
+      mockSignatureService.signMessage.mockResolvedValue("response-signature");
+
+      const result = await service.handleIncomingQuery(queryMessage);
+
+      expect(result).toBeDefined();
+      expect(result.success).toBe(true);
+      expect(result.data).toBeDefined();
+    });
+
+    it("should handle unknown query type gracefully", async () => {
+      const queryMessage = {
+        messageId: "msg-4",
+        instanceId: "remote-instance-1",
+        query: "unknown command",
+        context: { workspaceId: "workspace-1" },
+        timestamp: Date.now(),
+        signature: "valid-signature",
+      };
+
+      const mockConnection = {
+        id: "connection-1",
+        workspaceId: "workspace-1",
+        remoteInstanceId: "remote-instance-1",
+        status: FederationConnectionStatus.ACTIVE,
+      };
+
+      const mockIdentity = {
+        instanceId: "local-instance-1",
+      };
+
+      mockPrisma.federationConnection.findFirst.mockResolvedValue(mockConnection);
+      mockSignatureService.validateTimestamp.mockReturnValue(true);
+      mockSignatureService.verifyMessage.mockResolvedValue({ valid: true });
+      mockFederationService.getInstanceIdentity.mockResolvedValue(mockIdentity);
+      mockSignatureService.signMessage.mockResolvedValue("response-signature");
+
+      const result = await service.handleIncomingQuery(queryMessage);
+
+      expect(result).toBeDefined();
+      expect(result.success).toBe(false);
+      expect(result.error).toContain("Unknown query type");
+    });
+
+    it("should enforce workspace context in queries", async () => {
+      const queryMessage = {
+        messageId: "msg-5",
+        instanceId: "remote-instance-1",
+        query: "get tasks",
+        context: {}, // Missing workspaceId
+        timestamp: Date.now(),
+        signature: "valid-signature",
+      };
+
+      const mockConnection = {
+        id: "connection-1",
+        workspaceId: "workspace-1",
+        remoteInstanceId: "remote-instance-1",
+        status: FederationConnectionStatus.ACTIVE,
+      };
+
+      const mockIdentity = {
+        instanceId: "local-instance-1",
+      };
+
+      mockPrisma.federationConnection.findFirst.mockResolvedValue(mockConnection);
+      mockSignatureService.validateTimestamp.mockReturnValue(true);
+      mockSignatureService.verifyMessage.mockResolvedValue({ valid: true });
+      mockFederationService.getInstanceIdentity.mockResolvedValue(mockIdentity);
+      mockSignatureService.signMessage.mockResolvedValue("response-signature");
+
+      const result = await service.handleIncomingQuery(queryMessage);
+
+      expect(result).toBeDefined();
+      expect(result.success).toBe(false);
+      expect(result.error).toContain("workspaceId");
+    });
+  });
 });
diff --git a/apps/api/src/federation/query.service.ts b/apps/api/src/federation/query.service.ts
index a56c9e0..67a08d9 100644
--- a/apps/api/src/federation/query.service.ts
+++ b/apps/api/src/federation/query.service.ts
@@ -11,6 +11,9 @@ import { firstValueFrom } from "rxjs";
 import { PrismaService } from "../prisma/prisma.service";
 import { FederationService } from "./federation.service";
 import { SignatureService } from "./signature.service";
+import { TasksService } from "../tasks/tasks.service";
+import { EventsService } from "../events/events.service";
+import { ProjectsService } from "../projects/projects.service";
 import {
   FederationConnectionStatus,
   FederationMessageType,
@@ -26,7 +29,10 @@ export class QueryService {
     private readonly prisma: PrismaService,
     private readonly federationService: FederationService,
     private readonly signatureService: SignatureService,
-    private readonly httpService: HttpService
+    private readonly httpService: HttpService,
+    private readonly tasksService: TasksService,
+    private readonly eventsService: EventsService,
+    private readonly projectsService: ProjectsService
   ) {}
 
   /**
@@ -153,15 +159,17 @@ export class QueryService {
       throw new Error(verificationResult.error ?? "Invalid signature");
     }
 
-    // Process query (placeholder - would delegate to actual query processor)
+    // Process query
     let responseData: unknown;
     let success = true;
     let errorMessage: string | undefined;
 
     try {
-      // TODO: Implement actual query processing
-      // For now, return a placeholder response
-      responseData = { message: "Query received and processed" };
+      responseData = await this.processQuery(
+        queryMessage.query,
+        connection.workspaceId,
+        queryMessage.context
+      );
     } catch (error) {
       success = false;
       errorMessage = error instanceof Error ? error.message : "Query processing failed";
@@ -352,4 +360,133 @@ export class QueryService {
 
     return details;
   }
+
+  /**
+   * Process a query and return the result
+   */
+  private async processQuery(
+    query: string,
+    _workspaceId: string,
+    context?: Record<string, unknown>
+  ): Promise<unknown> {
+    // Validate workspaceId is provided in context
+    const contextWorkspaceId = context?.workspaceId as string | undefined;
+    if (!contextWorkspaceId) {
+      throw new Error("workspaceId is required in query context");
+    }
+
+    // Parse query to determine type and parameters
+    const queryType = this.parseQueryType(query);
+    const queryParams = this.parseQueryParams(query, context);
+
+    // Route to appropriate service based on query type
+    switch (queryType) {
+      case "tasks":
+        return this.processTasksQuery(contextWorkspaceId, queryParams);
+      case "events":
+        return this.processEventsQuery(contextWorkspaceId, queryParams);
+      case "projects":
+        return this.processProjectsQuery(contextWorkspaceId, queryParams);
+      default:
+        throw new Error(`Unknown query type: ${queryType}`);
+    }
+  }
+
+  /**
+   * Parse query string to determine query type
+   */
+  private parseQueryType(query: string): string {
+    const lowerQuery = query.toLowerCase().trim();
+
+    if (lowerQuery.includes("task")) {
+      return "tasks";
+    }
+    if (lowerQuery.includes("event") || lowerQuery.includes("calendar")) {
+      return "events";
+    }
+    if (lowerQuery.includes("project")) {
+      return "projects";
+    }
+
+    throw new Error("Unknown query type");
+  }
+
+  /**
+   * Parse query parameters from query string and context
+   */
+  private parseQueryParams(
+    _query: string,
+    context?: Record<string, unknown>
+  ): Record<string, unknown> {
+    const params: Record<string, unknown> = {
+      page: 1,
+      limit: 50,
+    };
+
+    // Extract workspaceId from context
+    if (context?.workspaceId) {
+      params.workspaceId = context.workspaceId;
+    }
+
+    // Could add more sophisticated parsing here
+    // For now, return default params
+    return params;
+  }
+
+  /**
+   * Process tasks query
+   */
+  private async processTasksQuery(
+    workspaceId: string,
+    params: Record<string, unknown>
+  ): Promise<unknown> {
+    const result = await this.tasksService.findAll({
+      workspaceId,
+      page: params.page as number,
+      limit: params.limit as number,
+    });
+
+    return {
+      type: "tasks",
+      ...result,
+    };
+  }
+
+  /**
+   * Process events query
+   */
+  private async processEventsQuery(
+    workspaceId: string,
+    params: Record<string, unknown>
+  ): Promise<unknown> {
+    const result = await this.eventsService.findAll({
+      workspaceId,
+      page: params.page as number,
+      limit: params.limit as number,
+    });
+
+    return {
+      type: "events",
+      ...result,
+    };
+  }
+
+  /**
+   * Process projects query
+   */
+  private async processProjectsQuery(
+    workspaceId: string,
+    params: Record<string, unknown>
+  ): Promise<unknown> {
+    const result = await this.projectsService.findAll({
+      workspaceId,
+      page: params.page as number,
+      limit: params.limit as number,
+    });
+
+    return {
+      type: "projects",
+      ...result,
+    };
+  }
 }
diff --git a/docs/scratchpads/297-query-processing.md b/docs/scratchpads/297-query-processing.md
new file mode 100644
index 0000000..4079b4d
--- /dev/null
+++ b/docs/scratchpads/297-query-processing.md
@@ -0,0 +1,83 @@
+# Issue #297: Implement actual query processing
+
+## Objective
+
+Route federation queries to actual domain services (tasks, events, projects) instead of returning placeholder data.
+
+## Current State
+
+- Query message type returns placeholder: `{ message: "Query received and processed" }`
+- Location: `apps/api/src/federation/query.service.ts:167-169`
+- Blocks dashboard from showing real federated data (#92)
+
+## Approach
+
+1. Create query parser to extract intent and parameters from query string
+2. Route to appropriate service based on query type
+3. Return actual data from services
+4. Add authorization checks (workspace-scoped)
+5. Add comprehensive tests
+
+## Query Types to Support
+
+1. **Tasks** - "get tasks", "show my tasks", "tasks in progress"
+2. **Events** - "upcoming events", "calendar this week", "show events"
+3. **Projects** - "active projects", "show projects", "project status"
+
+## Implementation Plan
+
+- [x] Create scratchpad
+- [x] Write tests for query processing (TDD)
+- [x] Implement query parser
+- [x] Route queries to services
+- [x] Update handleIncomingQuery to use real data
+- [x] Add TasksService, EventsService, ProjectsService to QueryService
+- [x] Update FederationModule to import required modules
+- [x] All tests passing (20/20)
+- [x] Type check passing
+- [ ] Test with actual federation connection (deferred to #298)
+- [ ] Verify dashboard shows real data (deferred to #298)
+
+## Changes Made
+
+### query.service.ts
+
+Added actual query processing:
+
+- Imported TasksService, EventsService, ProjectsService
+- Added `processQuery()` method - routes queries to appropriate services
+- Added `parseQueryType()` method - extracts query type from string
+- Added `parseQueryParams()` method - extracts parameters from context
+- Added `processTasksQuery()`, `processEventsQuery()`, `processProjectsQuery()` methods
+- Modified `handleIncomingQuery()` to call `processQuery()` instead of placeholder
+
+### query.service.spec.ts
+
+Added 5 new tests:
+
+- should process 'get tasks' query and return tasks data
+- should process 'get events' query and return events data
+- should process 'get projects' query and return projects data
+- should handle unknown query type gracefully
+- should enforce workspace context in queries
+
+All 20 tests passing.
+
+### federation.module.ts
+
+- Added QueryService to providers and exports
+- Imported TasksModule, EventsModule, ProjectsModule
+
+## Testing Strategy
+
+1. Unit tests for query parser
+2. Integration tests for service routing
+3. E2E tests with federation connection
+4. Security tests for workspace isolation
+
+## Notes
+
+- Must use workspace context for RLS
+- Parser should be extensible for future query types
+- Error handling for malformed queries
+- Consider caching frequently requested queries