diff --git a/Dockerfile b/Dockerfile
index aa57776..7fb3549 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -18,9 +18,17 @@ RUN cargo build --release
 
 # Stage 3: Final image
 FROM debian:bookworm-slim
-RUN apt-get update && apt-get install -y ca-certificates libssl3 && rm -rf /var/lib/apt/lists/*
+RUN apt-get update && apt-get install -y ca-certificates libssl3 postgresql-16 && rm -rf /var/lib/apt/lists/*
+
+ENV PATH="/usr/lib/postgresql/16/bin:$PATH"
+ENV PGDATA=/var/lib/postgresql/data
+ENV DATABASE_URL=postgres://mercury:mercury@127.0.0.1/mercury
+
 WORKDIR /app
 COPY --from=api-builder /app/target/release/mercury .
 COPY --from=ui-builder /ui/dist ./ui/dist
+COPY entrypoint.sh /entrypoint.sh
+RUN chmod +x /entrypoint.sh
+
 EXPOSE 3000
-CMD ["./mercury"]
+ENTRYPOINT ["/entrypoint.sh"]
diff --git a/entrypoint.sh b/entrypoint.sh
new file mode 100644
index 0000000..5c9a391
--- /dev/null
+++ b/entrypoint.sh
@@ -0,0 +1,20 @@
+#!/bin/sh
+set -e
+
+PGDATA="${PGDATA:-/var/lib/postgresql/data}"
+PGLOG="/var/log/postgresql/postgresql.log"
+
+mkdir -p "$PGDATA" /var/log/postgresql
+chown postgres:postgres "$PGDATA" /var/log/postgresql
+
+if [ ! -f "$PGDATA/PG_VERSION" ]; then
+    su -s /bin/sh postgres -c "initdb -D $PGDATA"
+    su -s /bin/sh postgres -c "pg_ctl start -D $PGDATA -w -l $PGLOG"
+    su -s /bin/sh postgres -c "psql postgres -c \"CREATE USER mercury WITH PASSWORD 'mercury';\""
+    su -s /bin/sh postgres -c "psql postgres -c \"CREATE DATABASE mercury OWNER mercury;\""
+    su -s /bin/sh postgres -c "pg_ctl stop -D $PGDATA -w"
+fi
+
+su -s /bin/sh postgres -c "pg_ctl start -D $PGDATA -w -l $PGLOG"
+
+exec /app/mercury