diff --git a/scripts/init-db.ts b/scripts/init-db.ts
index 8b07344..bd1b289 100644
--- a/scripts/init-db.ts
+++ b/scripts/init-db.ts
@@ -1,29 +1,101 @@
 /**
  * Database initialization script
- * Creates all required tables in PostgreSQL
+ * Creates database and all required tables in PostgreSQL
  */
 
 import postgres from "postgres";
 import { readFileSync } from "fs";
 import { join } from "path";
 
+/**
+ * Parse DATABASE_URL and extract components
+ */
+function parseDatabaseUrl(url: string): {
+  protocol: string;
+  user: string;
+  password: string;
+  host: string;
+  port: string;
+  database: string;
+} {
+  const match = url.match(
+    /^postgresql:\/\/([^:]+):([^@]+)@([^:]+):(\d+)\/(.+)$/
+  );
+  if (!match) {
+    throw new Error(
+      "Invalid DATABASE_URL format. Expected: postgresql://user:password@host:port/database"
+    );
+  }
+  return {
+    protocol: "postgresql",
+    user: match[1],
+    password: match[2],
+    host: match[3],
+    port: match[4],
+    database: match[5],
+  };
+}
+
 async function initDatabase() {
   const dbUrl = process.env.DATABASE_URL;
-  
+
   if (!dbUrl) {
     console.error("Error: DATABASE_URL environment variable is required");
     console.error("Please set it in your .env file or export it:");
-    console.error("  export DATABASE_URL=postgresql://user:password@host:port/database");
+    console.error(
+      "  export DATABASE_URL=postgresql://user:password@host:port/database"
+    );
     process.exit(1);
   }
 
-  console.log("Connecting to PostgreSQL...");
+  const dbConfig = parseDatabaseUrl(dbUrl);
+  const targetDatabase = dbConfig.database;
+
+  console.log(`Target database: ${targetDatabase}`);
+  console.log(
+    `Connecting to PostgreSQL server (${dbConfig.host}:${dbConfig.port})...`
+  );
+
+  // Connect to postgres database (default database) to create target database
+  const adminUrl = `postgresql://${dbConfig.user}:${dbConfig.password}@${dbConfig.host}:${dbConfig.port}/postgres`;
+  const adminSql = postgres(adminUrl);
+
+  try {
+    // Check if database exists
+    const dbExists = await adminSql`
+      SELECT 1 FROM pg_database WHERE datname = ${targetDatabase}
+    `;
+
+    if (dbExists.length === 0) {
+      console.log(`Database "${targetDatabase}" does not exist. Creating...`);
+      // Create database (escape database name to prevent SQL injection)
+      // PostgreSQL identifiers are case-insensitive unless quoted, so we quote it
+      const escapedDbName = `"${targetDatabase.replace(/"/g, '""')}"`;
+      await (adminSql as any).unsafe(`CREATE DATABASE ${escapedDbName}`);
+      console.log(`✓ Database "${targetDatabase}" created successfully`);
+    } else {
+      console.log(`✓ Database "${targetDatabase}" already exists`);
+    }
+  } catch (error) {
+    const errorMessage = (error as Error).message;
+    if (errorMessage.includes("already exists")) {
+      console.log(`✓ Database "${targetDatabase}" already exists`);
+    } else {
+      console.error(`✗ Failed to create database: ${errorMessage}`);
+      throw error;
+    }
+  } finally {
+    await adminSql.end();
+  }
+
+  // Now connect to target database and create tables
+  console.log(`\nConnecting to database "${targetDatabase}"...`);
   const sql = postgres(dbUrl);
 
   try {
     // Test connection
     await sql`SELECT 1`;
-    console.log("✓ Connected to PostgreSQL");
+    console.log("✓ Connected to database");
 
     // Read schema file
     const schemaPath = join(process.cwd(), "src", "storage", "schema.sql");
@@ -47,8 +119,13 @@ async function initDatabase() {
         } catch (error) {
           // Check if it's a "already exists" error (which is OK)
           const errorMessage = (error as Error).message;
-          if (errorMessage.includes("already exists") || errorMessage.includes("duplicate")) {
-            console.log(`⚠ Skipped (already exists): ${statement.substring(0, 50)}...`);
+          if (
+            errorMessage.includes("already exists") ||
+            errorMessage.includes("duplicate")
+          ) {
+            console.log(
+              `⚠ Skipped (already exists): ${statement.substring(0, 50)}...`
+            );
           } else {
             console.error(`✗ Error executing statement: ${errorMessage}`);
             console.error(`  Statement: ${statement.substring(0, 100)}...`);