diff --git a/deploy/docker/fs/opt/appsmith/pg-utils.sh b/deploy/docker/fs/opt/appsmith/pg-utils.sh
index 1c96265511..175deb9a17 100755
--- a/deploy/docker/fs/opt/appsmith/pg-utils.sh
+++ b/deploy/docker/fs/opt/appsmith/pg-utils.sh
@@ -127,11 +127,16 @@ init_pg_db() {
         echo "Schema 'appsmith' does not exist. Creating schema..."
         psql -h "$PG_DB_HOST" -p "$PG_DB_PORT" -U postgres -d "$PG_DB_NAME" -c "CREATE SCHEMA appsmith;"
       fi
-
       USER=$PG_DB_USER SCHEMA="appsmith" DB=$PG_DB_NAME HOST=$PG_DB_HOST PORT=$PG_DB_PORT grant_permissions_for_schema
+
+      echo "Creating pg_trgm extension..."
+      psql -h "$PG_DB_HOST" -p "$PG_DB_PORT" -U postgres -d "$PG_DB_NAME" -c "CREATE EXTENSION IF NOT EXISTS pg_trgm;"
     else
       echo "Remote PostgreSQL detected, running as current user."
       PGPASSWORD=$PG_DB_PASSWORD psql -h "$PG_DB_HOST" -p "$PG_DB_PORT" -U "$PG_DB_USER" -d "$PG_DB_NAME" -c "CREATE SCHEMA IF NOT EXISTS appsmith;"
+
+      echo "Creating pg_trgm extension..."
+      psql -h "$PG_DB_HOST" -p "$PG_DB_PORT" -U "$PG_DB_USER" -d "$PG_DB_NAME" -c "CREATE EXTENSION IF NOT EXISTS pg_trgm;"
     fi
 
     # Check if the schema creation was successful