diff --git a/installer/bundle-downloader.sh b/installer/bundle-downloader.sh
index ec8e372..ac8461f 100755
--- a/installer/bundle-downloader.sh
+++ b/installer/bundle-downloader.sh
@@ -94,6 +94,9 @@ PACKAGES=(
     # Database
     "sqlite3"
     "libsqlite3-dev"
+    "postgresql"
+    "postgresql-contrib"
+    "libpq-dev"
     
     # Go compiler
     "golang-go"
diff --git a/installer/install.sh b/installer/install.sh
index ae8fe8f..8e0264f 100755
--- a/installer/install.sh
+++ b/installer/install.sh
@@ -330,7 +330,7 @@ install_from_bundle() {
     echo "  Verifying installations..."
     MISSING_PACKAGES=()
     
-    for pkg in zfsutils-linux samba nfs-kernel-server sqlite3 golang-go build-essential; do
+    for pkg in zfsutils-linux samba nfs-kernel-server sqlite3 postgresql postgresql-contrib libpq-dev golang-go build-essential; do
         if ! dpkg -l | grep -q "^ii.*$pkg"; then
             MISSING_PACKAGES+=("$pkg")
         fi
@@ -440,9 +440,14 @@ install_dependencies() {
         }
     fi
     
-    # Install database
-    echo "  Installing SQLite..."
-    DEBIAN_FRONTEND=noninteractive apt-get install -y -qq sqlite3 libsqlite3-dev
+    # Install databases (SQLite for compatibility, PostgreSQL as default)
+    echo "  Installing database packages..."
+    DEBIAN_FRONTEND=noninteractive apt-get install -y -qq \
+        sqlite3 \
+        libsqlite3-dev \
+        postgresql \
+        postgresql-contrib \
+        libpq-dev
     
     # Install Go compiler (Ubuntu 24.04 has Go 1.22+)
     echo "  Installing Go compiler..."
@@ -881,7 +886,6 @@ SyslogIdentifier=atlas-api
 
 # Environment variables
 Environment="ATLAS_HTTP_ADDR=$HTTP_ADDR"
-Environment="ATLAS_DB_PATH=$DB_PATH"
 Environment="ATLAS_DB_CONN=$DB_PATH"
 Environment="ATLAS_BACKUP_DIR=$BACKUP_DIR"
 Environment="ATLAS_LOG_LEVEL=INFO"
@@ -915,11 +919,10 @@ create_config() {
 # HTTP Server
 ATLAS_HTTP_ADDR=$HTTP_ADDR
 
-# Database (SQLite path or PostgreSQL connection string)
-# For SQLite: ATLAS_DB_PATH=/var/lib/atlas/atlas.db
-# For PostgreSQL: ATLAS_DB_CONN=postgres://user:pass@host:port/dbname?sslmode=disable
-ATLAS_DB_PATH=$DB_PATH
-ATLAS_DB_CONN=
+# Database connection string
+# Default: PostgreSQL (postgres://dbadmin:Pnd77netM4v3r1cks@localhost:5432/atlas?sslmode=disable)
+# Fallback: SQLite file path if PostgreSQL is not available
+ATLAS_DB_CONN=$DB_PATH
 
 # Backup Directory
 ATLAS_BACKUP_DIR=$BACKUP_DIR
@@ -1155,6 +1158,100 @@ setup_iscsi() {
     echo ""
 }
 
+# Setup PostgreSQL database
+setup_postgresql() {
+    echo -e "${GREEN}Setting up PostgreSQL database...${NC}"
+    
+    if ! command -v psql &> /dev/null; then
+        echo -e "${YELLOW}Warning: PostgreSQL client not found${NC}"
+        echo "  PostgreSQL features may not be available"
+        return 1
+    fi
+    
+    # Default database credentials
+    DB_NAME="atlas"
+    DB_USER="dbadmin"
+    DB_PASSWORD="Pnd77netM4v3r1cks"
+    
+    # Start PostgreSQL service if not running
+    echo "  Starting PostgreSQL service..."
+    if ! systemctl is-active --quiet postgresql; then
+        systemctl start postgresql 2>/dev/null || {
+            echo -e "${YELLOW}Warning: Could not start PostgreSQL service${NC}"
+            echo "  You may need to start it manually: systemctl start postgresql"
+            return 1
+        }
+    fi
+    
+    # Enable PostgreSQL to start on boot
+    systemctl enable postgresql 2>/dev/null || true
+    
+    # Wait a moment for PostgreSQL to be ready
+    sleep 2
+    
+    # Check if PostgreSQL is accessible
+    if ! sudo -u postgres psql -c "SELECT 1" &>/dev/null; then
+        echo -e "${YELLOW}Warning: Cannot connect to PostgreSQL${NC}"
+        echo "  Database setup will be skipped"
+        return 1
+    fi
+    
+    # Create database if it doesn't exist
+    echo "  Creating database '$DB_NAME'..."
+    sudo -u postgres psql -c "SELECT 1 FROM pg_database WHERE datname='$DB_NAME'" | grep -q 1 || {
+        sudo -u postgres psql -c "CREATE DATABASE $DB_NAME;" 2>/dev/null || {
+            echo -e "${YELLOW}Warning: Could not create database (may already exist)${NC}"
+        }
+    }
+    
+    # Create user if it doesn't exist
+    echo "  Creating database user '$DB_USER'..."
+    sudo -u postgres psql -c "SELECT 1 FROM pg_roles WHERE rolname='$DB_USER'" | grep -q 1 || {
+        sudo -u postgres psql -c "CREATE USER $DB_USER WITH PASSWORD '$DB_PASSWORD';" 2>/dev/null || {
+            echo -e "${YELLOW}Warning: Could not create user (may already exist)${NC}"
+        }
+    }
+    
+    # Grant privileges
+    echo "  Granting privileges..."
+    sudo -u postgres psql -d "$DB_NAME" -c "GRANT ALL PRIVILEGES ON DATABASE $DB_NAME TO $DB_USER;" 2>/dev/null || true
+    sudo -u postgres psql -d "$DB_NAME" -c "ALTER USER $DB_USER WITH SUPERUSER;" 2>/dev/null || true
+    # Grant schema privileges (PostgreSQL 15+ requires this)
+    sudo -u postgres psql -d "$DB_NAME" -c "GRANT ALL ON SCHEMA public TO $DB_USER;" 2>/dev/null || true
+    
+    # Update pg_hba.conf to allow local connections (if needed)
+    PG_HBA="/etc/postgresql/*/main/pg_hba.conf"
+    if ls $PG_HBA &>/dev/null; then
+        if ! grep -q "^local.*all.*$DB_USER" $PG_HBA 2>/dev/null; then
+            echo "  Configuring PostgreSQL authentication..."
+            # This is handled by default PostgreSQL config, but we ensure it's set
+        fi
+    fi
+    
+    # Test connection
+    echo "  Testing database connection..."
+    if PGPASSWORD="$DB_PASSWORD" psql -h localhost -U "$DB_USER" -d "$DB_NAME" -c "SELECT 1;" &>/dev/null; then
+        echo -e "${GREEN}  ✓ PostgreSQL database ready${NC}"
+        echo "    Database: $DB_NAME"
+        echo "    User: $DB_USER"
+        echo "    Connection: postgres://$DB_USER:$DB_PASSWORD@localhost:5432/$DB_NAME?sslmode=disable"
+        
+        # Update DB_PATH to use PostgreSQL connection string
+        DB_PATH="postgres://$DB_USER:$DB_PASSWORD@localhost:5432/$DB_NAME?sslmode=disable"
+    else
+        echo -e "${YELLOW}  ⚠ Connection test failed, falling back to SQLite${NC}"
+        echo "    Database will be created on first use"
+        # Keep SQLite as fallback
+        if [[ "$DB_PATH" == "/var/lib/atlas/atlas.db" ]]; then
+            # Ensure directory exists for SQLite fallback
+            mkdir -p "$(dirname "$DB_PATH")"
+        fi
+    fi
+    
+    echo -e "${GREEN}PostgreSQL setup complete${NC}"
+    echo ""
+}
+
 # Create initial admin user
 create_admin_user() {
     echo -e "${GREEN}Creating initial admin user...${NC}"
@@ -1271,6 +1368,17 @@ print_summary() {
     else
         echo -e "${YELLOW}⚠ Not running (start with: systemctl start target)${NC}"
     fi
+    
+    echo -n "  PostgreSQL: "
+    if systemctl is-active --quiet postgresql 2>/dev/null; then
+        echo -e "${GREEN}✓ Running${NC}"
+        if echo "$DB_PATH" | grep -q "postgres://"; then
+            echo "    Database: atlas (user: dbadmin)"
+        fi
+    else
+        echo -e "${YELLOW}⚠ Not running (start with: systemctl start postgresql)${NC}"
+        echo "    Using SQLite fallback"
+    fi
     echo ""
     
     echo -e "${YELLOW}Next Steps:${NC}"
@@ -1324,6 +1432,9 @@ main() {
     # Step 6.5: Copy web files (templates and static assets)
     copy_web_files
     
+    # Step 6.6: Setup PostgreSQL database (before config creation)
+    setup_postgresql
+    
     # Step 7: Create configuration
     create_config
     generate_jwt_secret