diff --git a/deploy/docker/fs/opt/appsmith/entrypoint.sh b/deploy/docker/fs/opt/appsmith/entrypoint.sh
index 5e42418d92..685c0b8fd0 100644
--- a/deploy/docker/fs/opt/appsmith/entrypoint.sh
+++ b/deploy/docker/fs/opt/appsmith/entrypoint.sh
@@ -6,6 +6,7 @@ tlog "Running as: $(id)"
 
 stacks_path=/appsmith-stacks
 
+export APPSMITH_PG_DATABASE="appsmith"
 export SUPERVISORD_CONF_TARGET="$TMP/supervisor-conf.d/"  # export for use in supervisord.conf
 export MONGODB_TMP_KEY_PATH="$TMP/mongodb-key"  # export for use in supervisor process mongodb.conf
 
@@ -432,6 +433,7 @@ init_postgres() {
       tlog "Initializing local Postgres data folder"
       su postgres -c "env PATH='$PATH' initdb -D $POSTGRES_DB_PATH"
     fi
+    create_appsmith_pg_db "$POSTGRES_DB_PATH"
   else
     runEmbeddedPostgres=0
   fi
@@ -453,6 +455,33 @@ safe_init_postgres() {
   fi
 }
 
+# Method to create a appsmith database in the postgres 
+# Args:
+#     POSTGRES_DB_PATH (string): Path to the postgres data directory
+# Returns:
+#     None
+# Example:
+#     create_appsmith_pg_db "/appsmith-stacks/data/postgres/main"
+create_appsmith_pg_db() {
+  POSTGRES_DB_PATH=$1
+  # Start the postgres , wait for it to be ready and create a appsmith db
+  su postgres -c "env PATH='$PATH' pg_ctl -D $POSTGRES_DB_PATH -l $POSTGRES_DB_PATH/logfile start"
+  echo "Waiting for Postgres to start"
+  until su postgres -c "env PATH='$PATH' pg_isready -d postgres"; do
+    tlog "Waiting for Postgres to be ready..."
+    sleep 1
+  done
+  # Check if the appsmith DB is present
+  DB_EXISTS=$(su postgres -c "env PATH='$PATH' psql -tAc \"SELECT 1 FROM pg_database WHERE datname='${APPSMITH_PG_DATABASE}'\"")
+
+  if [[ "$DB_EXISTS" != "1" ]]; then
+    su postgres -c "env PATH='$PATH' psql -c \"CREATE DATABASE ${APPSMITH_PG_DATABASE}\""
+  else
+    echo "Database ${APPSMITH_PG_DATABASE} already exists."
+  fi
+  su postgres -c "env PATH='$PATH' pg_ctl -D $POSTGRES_DB_PATH stop"
+}
+
 setup_caddy() {
   if [[ "$APPSMITH_RATE_LIMIT" == "disabled" ]]; then
     export _APPSMITH_CADDY="/opt/caddy/caddy_vanilla"