diff --git a/packages/twenty-docker/docker-compose.yml b/packages/twenty-docker/docker-compose.yml
index e95fde62fa..910990413f 100644
--- a/packages/twenty-docker/docker-compose.yml
+++ b/packages/twenty-docker/docker-compose.yml
@@ -109,8 +109,9 @@ services:
     volumes:
       - db-data:/var/lib/postgresql/data
     environment:
-      POSTGRES_USER: ${PG_DATABASE_USER:-postgres}
+      POSTGRES_DB: ${PG_DATABASE_NAME:-default}
       POSTGRES_PASSWORD: ${PG_DATABASE_PASSWORD:-postgres}
+      POSTGRES_USER: ${PG_DATABASE_USER:-postgres}
     healthcheck:
       test: pg_isready -U ${PG_DATABASE_USER:-postgres} -h localhost -d postgres
       interval: 5s
diff --git a/packages/twenty-docker/twenty/entrypoint.sh b/packages/twenty-docker/twenty/entrypoint.sh
index 0175a0a4f1..70d804ea16 100755
--- a/packages/twenty-docker/twenty/entrypoint.sh
+++ b/packages/twenty-docker/twenty/entrypoint.sh
@@ -8,27 +8,15 @@ setup_and_migrate_db() {
     fi
 
     echo "Running database setup and migrations..."
-    PGUSER=$(echo $PG_DATABASE_URL | awk -F '//' '{print $2}' | awk -F ':' '{print $1}')
-    PGPASS=$(echo $PG_DATABASE_URL | awk -F ':' '{print $3}' | awk -F '@' '{print $1}')
-    PGHOST=$(echo $PG_DATABASE_URL | awk -F '@' '{print $2}' | awk -F ':' '{print $1}')
-    PGPORT=$(echo $PG_DATABASE_URL | awk -F ':' '{print $4}' | awk -F '/' '{print $1}')
-    PGDATABASE=$(echo $PG_DATABASE_URL | awk -F '/' '{print $NF}' | cut -d'?' -f1)
-
-    # Creating the database if it doesn't exist
-    db_count=$(PGPASSWORD=${PGPASS} psql -h ${PGHOST} -p ${PGPORT} -U ${PGUSER} -d postgres -tAc "SELECT COUNT(*) FROM pg_database WHERE datname = '${PGDATABASE}'")
-    if [ "$db_count" = "0" ]; then
-        echo "Database ${PGDATABASE} does not exist, creating..."
-        PGPASSWORD=${PGPASS} psql -h ${PGHOST} -p ${PGPORT} -U ${PGUSER} -d postgres -c "CREATE DATABASE \"${PGDATABASE}\""
-    fi
 
     # Run setup and migration scripts
-    has_schema=$(PGPASSWORD=${PGPASS} psql -h ${PGHOST} -p ${PGPORT} -U ${PGUSER} -d ${PGDATABASE} -tAc "SELECT EXISTS (SELECT 1 FROM information_schema.schemata WHERE schema_name = 'core')")
+    has_schema=$(psql -tAc "SELECT EXISTS (SELECT 1 FROM information_schema.schemata WHERE schema_name = 'core')" ${PG_DATABASE_URL})
     if [ "$has_schema" = "f" ]; then
         echo "Database appears to be empty, running migrations."
         NODE_OPTIONS="--max-old-space-size=1500" tsx ./scripts/setup-db.ts
         yarn database:migrate:prod
     fi
-    
+
     yarn command:prod upgrade
     echo "Successfully migrated DB!"
 }
@@ -38,7 +26,7 @@ register_background_jobs() {
         echo "Cron job registration is disabled, skipping..."
         return
     fi
-  
+
     echo "Registering background sync jobs..."
     if yarn command:prod cron:register:all; then
         echo "Successfully registered all background sync jobs!"