diff --git a/docker-compose.yml b/docker-compose.yml
index 7d3452a..d3f8877 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -753,7 +753,7 @@ services:
     environment:
       <<: *proxy-env
       BACKEND_INTERNAL_URL: http://postiz:3000
-      DATABASE_URL: "postgresql://postgres:${POSTGRES_PASSWORD}@postgres:5432/postgres?schema=postiz"
+      DATABASE_URL: "postgresql://postgres:${POSTGRES_PASSWORD}@postgres:5432/postiz"
       DISABLE_REGISTRATION: ${POSTIZ_DISABLE_REGISTRATION}
       FRONTEND_URL: ${POSTIZ_HOSTNAME:+https://}${POSTIZ_HOSTNAME}
       IS_GENERAL: "true" # Required for self-hosting.
@@ -902,7 +902,7 @@ services:
       WAHA_DASHBOARD_PASSWORD: ${WAHA_DASHBOARD_PASSWORD}
       WAHA_DASHBOARD_USERNAME: ${WAHA_DASHBOARD_USERNAME}
       WAHA_ENGINE: ${WAHA_ENGINE}
-      WHATSAPP_SESSIONS_POSTGRESQL_URL: postgres://postgres:${POSTGRES_PASSWORD}@postgres:5432/postgres?sslmode=disable
+      WHATSAPP_SESSIONS_POSTGRESQL_URL: postgres://postgres:${POSTGRES_PASSWORD}@postgres:5432/waha?sslmode=disable
       WHATSAPP_SWAGGER_ENABLED: ${WHATSAPP_SWAGGER_ENABLED:-true}
       WHATSAPP_SWAGGER_PASSWORD: ${WHATSAPP_SWAGGER_PASSWORD}
       WHATSAPP_SWAGGER_USERNAME: ${WHATSAPP_SWAGGER_USERNAME}
@@ -1105,7 +1105,7 @@ services:
       POSTGRES_PORT: 5432
       POSTGRES_USER: postgres
       POSTGRES_PASSWORD: ${POSTGRES_PASSWORD}
-      POSTGRES_DATABASE: postgres
+      POSTGRES_DATABASE: lightrag
       POSTGRES_MAX_CONNECTIONS: 12
       POSTGRES_VECTOR_INDEX_TYPE: HNSW
       POSTGRES_HNSW_M: 16
diff --git a/scripts/apply_update.sh b/scripts/apply_update.sh
index d241a54..b87f268 100755
--- a/scripts/apply_update.sh
+++ b/scripts/apply_update.sh
@@ -96,6 +96,9 @@ $COMPOSE_CMD -p "localai" "${COMPOSE_FILES_FOR_PULL[@]}" pull --ignore-buildable
 log_info "Running Services..."
 bash "$RUN_SERVICES_SCRIPT" || { log_error "Failed to start services. Check logs for details."; exit 1; }
 
+# Initialize PostgreSQL databases for services (creates if not exist)
+bash "$SCRIPT_DIR/init_databases.sh" || { log_warning "Database initialization had issues, but continuing..."; }
+
 log_success "Update application completed successfully!"
 
 # --- Fix file permissions ---
diff --git a/scripts/init_databases.sh b/scripts/init_databases.sh
new file mode 100755
index 0000000..883e714
--- /dev/null
+++ b/scripts/init_databases.sh
@@ -0,0 +1,64 @@
+#!/bin/bash
+# =============================================================================
+# init_databases.sh - Create isolated PostgreSQL databases for services
+# =============================================================================
+# This script runs during install/update and creates databases if they don't exist.
+# Safe to run multiple times - only creates missing databases.
+#
+# Usage: Called automatically from install.sh and update.sh
+# =============================================================================
+
+source "$(dirname "$0")/utils.sh" && init_paths
+
+# List of databases to create (add new services here)
+# Note: n8n uses the default 'postgres' database
+DATABASES=(
+    "langfuse"
+    "lightrag"
+    "nocodb"
+    "postiz"
+    "waha"
+)
+
+log_header "Initializing PostgreSQL Databases"
+
+# Ensure postgres is running and healthy
+log_info "Waiting for PostgreSQL to be ready..."
+MAX_WAIT=60
+WAITED=0
+
+while ! docker exec postgres pg_isready -U postgres > /dev/null 2>&1; do
+    if [ $WAITED -ge $MAX_WAIT ]; then
+        log_error "PostgreSQL did not become ready in ${MAX_WAIT}s"
+        exit 1
+    fi
+    sleep 1
+    ((WAITED++))
+done
+
+log_success "PostgreSQL is ready"
+
+# Create databases
+CREATED=0
+EXISTING=0
+
+for db in "${DATABASES[@]}"; do
+    # Check if database exists
+    EXISTS=$(docker exec postgres psql -U postgres -tAc "SELECT 1 FROM pg_database WHERE datname = '$db'" 2>/dev/null)
+
+    if [ "$EXISTS" = "1" ]; then
+        log_info "Database '$db' already exists"
+        ((EXISTING++))
+    else
+        log_info "Creating database '$db'..."
+        if docker exec postgres psql -U postgres -c "CREATE DATABASE $db" > /dev/null 2>&1; then
+            log_success "Database '$db' created"
+            ((CREATED++))
+        else
+            log_error "Failed to create database '$db'"
+        fi
+    fi
+done
+
+log_divider
+log_success "Database initialization complete: $CREATED created, $EXISTING already existed"
diff --git a/scripts/install.sh b/scripts/install.sh
index 8e78a7c..e4c205f 100755
--- a/scripts/install.sh
+++ b/scripts/install.sh
@@ -123,6 +123,9 @@ show_step 6 8 "Running Services"
 bash "$SCRIPT_DIR/06_run_services.sh" || { log_error "Running Services failed"; exit 1; }
 log_success "Running Services complete!"
 
+# Initialize PostgreSQL databases for services (creates if not exist)
+bash "$SCRIPT_DIR/init_databases.sh" || { log_warning "Database initialization had issues, but continuing..."; }
+
 show_step 7 8 "Generating Final Report"
 # --- Installation Summary ---
 log_info "Installation Summary:"