diff --git a/Dockerfile b/Dockerfile
index 7a004a2..bb1663b 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,8 +1,7 @@
 FROM node:18-alpine AS base
 
-# Install system dependencies
+# Install system dependencies (removed netcat-openbsd since we no longer need to wait for PostgreSQL)
 RUN apk add --no-cache \
-  netcat-openbsd \
   gcompat \
   supervisor \
   curl
@@ -77,9 +76,10 @@ RUN addgroup --system --gid 1001 nodejs
 RUN adduser --system --uid 1001 palmr
 
 # Create application directories and set permissions
-# Include storage directories for filesystem mode
+# Include storage directories for filesystem mode and SQLite database directory
 RUN mkdir -p /app/server /app/web /home/palmr/.npm /home/palmr/.cache \
-  /app/server/uploads /app/server/temp-chunks /app/server/uploads/logo
+  /app/server/uploads /app/server/temp-chunks /app/server/uploads/logo \
+  /app/server/prisma
 RUN chown -R palmr:nodejs /app /home/palmr
 
 # === Copy Server Files ===
@@ -92,7 +92,7 @@ COPY --from=server-builder --chown=palmr:nodejs /app/server/prisma ./prisma
 COPY --from=server-builder --chown=palmr:nodejs /app/server/package.json ./
 
 # Ensure storage directories have correct permissions
-RUN chown -R palmr:nodejs /app/server/uploads /app/server/temp-chunks
+RUN chown -R palmr:nodejs /app/server/uploads /app/server/temp-chunks /app/server/prisma
 
 # === Copy Web Files ===
 WORKDIR /app/web
@@ -113,7 +113,7 @@ COPY infra/server-start.sh /app/server-start.sh
 RUN chmod +x /app/server-start.sh
 RUN chown palmr:nodejs /app/server-start.sh
 
-# Copy supervisor configuration
+# Copy supervisor configuration (simplified without PostgreSQL dependency)
 COPY <<EOF /etc/supervisor/conf.d/supervisord.conf
 [supervisord]
 nodaemon=true
@@ -151,10 +151,11 @@ COPY <<EOF /app/start.sh
 
 echo "Starting Palmr Application..."
 echo "Storage Mode: \${ENABLE_S3:-false}"
+echo "Database: SQLite"
 
 # Ensure storage directories exist with correct permissions
-mkdir -p /app/server/uploads /app/server/temp-chunks /app/server/uploads/logo
-chown -R palmr:nodejs /app/server/uploads /app/server/temp-chunks
+mkdir -p /app/server/uploads /app/server/temp-chunks /app/server/uploads/logo /app/server/prisma
+chown -R palmr:nodejs /app/server/uploads /app/server/temp-chunks /app/server/prisma
 
 # Start supervisor
 exec /usr/bin/supervisord -c /etc/supervisor/conf.d/supervisord.conf
@@ -162,8 +163,8 @@ EOF
 
 RUN chmod +x /app/start.sh
 
-# Create volume mount points for persistent storage (filesystem mode)
-VOLUME ["/app/server/uploads", "/app/server/temp-chunks"]
+# Create volume mount points for persistent storage (filesystem mode and SQLite database)
+VOLUME ["/app/server/uploads", "/app/server/temp-chunks", "/app/server/prisma"]
 
 # Expose ports
 EXPOSE 3333 5487
diff --git a/apps/server/.env.example b/apps/server/.env.example
index 5022606..d15b8fd 100644
--- a/apps/server/.env.example
+++ b/apps/server/.env.example
@@ -1,4 +1,4 @@
-DATABASE_URL="postgresql://palmr:palmr123@localhost:5432/palmr?schema=public"
+# DATABASE_URL="postgresql://palmr:palmr123@localhost:5432/palmr?schema=public"
 
 FRONTEND_URL="http://localhost:3000"
 MAX_FILESIZE="1073741824"
diff --git a/apps/server/prisma/migrations/20250220194959_init/migration.sql b/apps/server/prisma/migrations/20250220194959_init/migration.sql
deleted file mode 100644
index ef34bd7..0000000
--- a/apps/server/prisma/migrations/20250220194959_init/migration.sql
+++ /dev/null
@@ -1,178 +0,0 @@
--- CreateTable
-CREATE TABLE "users" (
-    "id" TEXT NOT NULL,
-    "firstName" TEXT NOT NULL,
-    "lastName" TEXT NOT NULL,
-    "username" TEXT NOT NULL,
-    "email" TEXT NOT NULL,
-    "password" TEXT NOT NULL,
-    "image" TEXT,
-    "isAdmin" BOOLEAN NOT NULL DEFAULT false,
-    "isActive" BOOLEAN NOT NULL DEFAULT true,
-    "createdAt" TIMESTAMP(3) NOT NULL DEFAULT CURRENT_TIMESTAMP,
-    "updatedAt" TIMESTAMP(3) NOT NULL,
-
-    CONSTRAINT "users_pkey" PRIMARY KEY ("id")
-);
-
--- CreateTable
-CREATE TABLE "files" (
-    "id" TEXT NOT NULL,
-    "name" TEXT NOT NULL,
-    "description" TEXT,
-    "extension" TEXT NOT NULL,
-    "size" BIGINT NOT NULL,
-    "objectName" TEXT NOT NULL,
-    "userId" TEXT NOT NULL,
-    "createdAt" TIMESTAMP(3) NOT NULL DEFAULT CURRENT_TIMESTAMP,
-    "updatedAt" TIMESTAMP(3) NOT NULL,
-
-    CONSTRAINT "files_pkey" PRIMARY KEY ("id")
-);
-
--- CreateTable
-CREATE TABLE "shares" (
-    "id" TEXT NOT NULL,
-    "name" TEXT,
-    "views" INTEGER NOT NULL DEFAULT 0,
-    "expiration" TIMESTAMP(3),
-    "description" TEXT,
-    "createdAt" TIMESTAMP(3) NOT NULL DEFAULT CURRENT_TIMESTAMP,
-    "updatedAt" TIMESTAMP(3) NOT NULL,
-    "creatorId" TEXT,
-    "securityId" TEXT NOT NULL,
-
-    CONSTRAINT "shares_pkey" PRIMARY KEY ("id")
-);
-
--- CreateTable
-CREATE TABLE "share_security" (
-    "id" TEXT NOT NULL,
-    "password" TEXT,
-    "maxViews" INTEGER,
-    "createdAt" TIMESTAMP(3) NOT NULL DEFAULT CURRENT_TIMESTAMP,
-    "updatedAt" TIMESTAMP(3) NOT NULL,
-
-    CONSTRAINT "share_security_pkey" PRIMARY KEY ("id")
-);
-
--- CreateTable
-CREATE TABLE "share_recipients" (
-    "id" TEXT NOT NULL,
-    "email" TEXT NOT NULL,
-    "createdAt" TIMESTAMP(3) NOT NULL DEFAULT CURRENT_TIMESTAMP,
-    "updatedAt" TIMESTAMP(3) NOT NULL,
-    "shareId" TEXT NOT NULL,
-
-    CONSTRAINT "share_recipients_pkey" PRIMARY KEY ("id")
-);
-
--- CreateTable
-CREATE TABLE "app_configs" (
-    "id" TEXT NOT NULL,
-    "key" TEXT NOT NULL,
-    "value" TEXT NOT NULL,
-    "type" TEXT NOT NULL,
-    "group" TEXT NOT NULL,
-    "isSystem" BOOLEAN NOT NULL DEFAULT true,
-    "createdAt" TIMESTAMP(3) NOT NULL DEFAULT CURRENT_TIMESTAMP,
-    "updatedAt" TIMESTAMP(3) NOT NULL,
-
-    CONSTRAINT "app_configs_pkey" PRIMARY KEY ("id")
-);
-
--- CreateTable
-CREATE TABLE "login_attempts" (
-    "id" TEXT NOT NULL,
-    "userId" TEXT NOT NULL,
-    "attempts" INTEGER NOT NULL DEFAULT 1,
-    "lastAttempt" TIMESTAMP(3) NOT NULL DEFAULT CURRENT_TIMESTAMP,
-
-    CONSTRAINT "login_attempts_pkey" PRIMARY KEY ("id")
-);
-
--- CreateTable
-CREATE TABLE "password_resets" (
-    "id" TEXT NOT NULL,
-    "userId" TEXT NOT NULL,
-    "token" TEXT NOT NULL,
-    "expiresAt" TIMESTAMP(3) NOT NULL,
-    "used" BOOLEAN NOT NULL DEFAULT false,
-    "createdAt" TIMESTAMP(3) NOT NULL DEFAULT CURRENT_TIMESTAMP,
-    "updatedAt" TIMESTAMP(3) NOT NULL,
-
-    CONSTRAINT "password_resets_pkey" PRIMARY KEY ("id")
-);
-
--- CreateTable
-CREATE TABLE "share_aliases" (
-    "id" TEXT NOT NULL,
-    "alias" TEXT NOT NULL,
-    "shareId" TEXT NOT NULL,
-    "createdAt" TIMESTAMP(3) NOT NULL DEFAULT CURRENT_TIMESTAMP,
-    "updatedAt" TIMESTAMP(3) NOT NULL,
-
-    CONSTRAINT "share_aliases_pkey" PRIMARY KEY ("id")
-);
-
--- CreateTable
-CREATE TABLE "_ShareFiles" (
-    "A" TEXT NOT NULL,
-    "B" TEXT NOT NULL,
-
-    CONSTRAINT "_ShareFiles_AB_pkey" PRIMARY KEY ("A","B")
-);
-
--- CreateIndex
-CREATE UNIQUE INDEX "users_username_key" ON "users"("username");
-
--- CreateIndex
-CREATE UNIQUE INDEX "users_email_key" ON "users"("email");
-
--- CreateIndex
-CREATE UNIQUE INDEX "shares_securityId_key" ON "shares"("securityId");
-
--- CreateIndex
-CREATE UNIQUE INDEX "app_configs_key_key" ON "app_configs"("key");
-
--- CreateIndex
-CREATE UNIQUE INDEX "login_attempts_userId_key" ON "login_attempts"("userId");
-
--- CreateIndex
-CREATE UNIQUE INDEX "password_resets_token_key" ON "password_resets"("token");
-
--- CreateIndex
-CREATE UNIQUE INDEX "share_aliases_alias_key" ON "share_aliases"("alias");
-
--- CreateIndex
-CREATE UNIQUE INDEX "share_aliases_shareId_key" ON "share_aliases"("shareId");
-
--- CreateIndex
-CREATE INDEX "_ShareFiles_B_index" ON "_ShareFiles"("B");
-
--- AddForeignKey
-ALTER TABLE "files" ADD CONSTRAINT "files_userId_fkey" FOREIGN KEY ("userId") REFERENCES "users"("id") ON DELETE CASCADE ON UPDATE CASCADE;
-
--- AddForeignKey
-ALTER TABLE "shares" ADD CONSTRAINT "shares_creatorId_fkey" FOREIGN KEY ("creatorId") REFERENCES "users"("id") ON DELETE SET NULL ON UPDATE CASCADE;
-
--- AddForeignKey
-ALTER TABLE "shares" ADD CONSTRAINT "shares_securityId_fkey" FOREIGN KEY ("securityId") REFERENCES "share_security"("id") ON DELETE RESTRICT ON UPDATE CASCADE;
-
--- AddForeignKey
-ALTER TABLE "share_recipients" ADD CONSTRAINT "share_recipients_shareId_fkey" FOREIGN KEY ("shareId") REFERENCES "shares"("id") ON DELETE CASCADE ON UPDATE CASCADE;
-
--- AddForeignKey
-ALTER TABLE "login_attempts" ADD CONSTRAINT "login_attempts_userId_fkey" FOREIGN KEY ("userId") REFERENCES "users"("id") ON DELETE CASCADE ON UPDATE CASCADE;
-
--- AddForeignKey
-ALTER TABLE "password_resets" ADD CONSTRAINT "password_resets_userId_fkey" FOREIGN KEY ("userId") REFERENCES "users"("id") ON DELETE CASCADE ON UPDATE CASCADE;
-
--- AddForeignKey
-ALTER TABLE "share_aliases" ADD CONSTRAINT "share_aliases_shareId_fkey" FOREIGN KEY ("shareId") REFERENCES "shares"("id") ON DELETE CASCADE ON UPDATE CASCADE;
-
--- AddForeignKey
-ALTER TABLE "_ShareFiles" ADD CONSTRAINT "_ShareFiles_A_fkey" FOREIGN KEY ("A") REFERENCES "files"("id") ON DELETE CASCADE ON UPDATE CASCADE;
-
--- AddForeignKey
-ALTER TABLE "_ShareFiles" ADD CONSTRAINT "_ShareFiles_B_fkey" FOREIGN KEY ("B") REFERENCES "shares"("id") ON DELETE CASCADE ON UPDATE CASCADE;
diff --git a/apps/server/prisma/migrations/migration_lock.toml b/apps/server/prisma/migrations/migration_lock.toml
deleted file mode 100644
index 648c57f..0000000
--- a/apps/server/prisma/migrations/migration_lock.toml
+++ /dev/null
@@ -1,3 +0,0 @@
-# Please do not edit this file manually
-# It should be added in your version-control system (e.g., Git)
-provider = "postgresql"
\ No newline at end of file
diff --git a/apps/server/prisma/schema.prisma b/apps/server/prisma/schema.prisma
index 4c626c8..3f69e72 100644
--- a/apps/server/prisma/schema.prisma
+++ b/apps/server/prisma/schema.prisma
@@ -3,8 +3,8 @@ generator client {
 }
 
 datasource db {
-  provider = "postgresql"
-  url      = env("DATABASE_URL")
+  provider = "sqlite"
+  url      = "file:./palmr.db"
 }
 
 model User {
diff --git a/apps/server/src/env.ts b/apps/server/src/env.ts
index 2b1adbe..4060f64 100644
--- a/apps/server/src/env.ts
+++ b/apps/server/src/env.ts
@@ -12,7 +12,6 @@ const envSchema = z.object({
   S3_REGION: z.string().optional(),
   S3_BUCKET_NAME: z.string().optional(),
   S3_FORCE_PATH_STYLE: z.union([z.literal("true"), z.literal("false")]).default("false"),
-  DATABASE_URL: z.string().min(1),
   MAX_FILESIZE: z.string().min(1),
 });
 
diff --git a/docker-compose-file-system.yaml b/docker-compose-file-system.yaml
index 6a119a6..9f729ab 100644
--- a/docker-compose-file-system.yaml
+++ b/docker-compose-file-system.yaml
@@ -2,16 +2,12 @@ services:
   palmr:
     image: kyantech/palmr:latest # Make sure to use the correct version (latest) of the image
     container_name: palmr-application
-    depends_on:
-      postgres:
-        condition: "service_healthy"
     environment:
       # Storage Configuration
       - ENABLE_S3=false # Set to 'false' to use local filesystem storage instead of S3/MinIO or true to use S3/MinIO in this case we are using filesystem storage
       - ENCRYPTION_KEY=${ENCRYPTION_KEY:-change-this-key-in-production-min-32-chars} # Required for filesystem encryption (min 32 chars)
 
       # Server environment variables
-      - DATABASE_URL=postgresql://${POSTGRES_USER:-postgres}:${POSTGRES_PASSWORD:-postgresRootPassword}@postgres:${DB_EXTERNAL_PORT:-5432}/${POSTGRES_DB:-palmr_db}?schema=public # Database URL with configurable credentials through env vars
       - FRONTEND_URL=http://palmr:${APP_EXTERNAL_PORT:-5487} # Frontend URL - Make sure to use the correct frontend URL, depends on where the frontend is running, its prepared for localhost, but you can change it to your frontend URL if needed
       - API_BASE_URL=http://palmr:${API_EXTERNAL_PORT:-3333} # Using Docker service name for internal communication
       - MAX_FILESIZE=${MAX_FILESIZE:-1073741824} # Max Filesize for upload - Declared in Bytes. Default is 1GB. can be changed by admin in the frontend.
@@ -21,54 +17,21 @@ services:
     volumes:
       - palmr_uploads:/app/server/uploads # Uploads folder for the application
       - palmr_temp_chunks:/app/server/temp-chunks # Temp chunks folder for the application
-    networks:
-      - palmr-network # Network for the application to communicate with the database
+      - palmr_database:/app/server/prisma # SQLite database folder
     restart: unless-stopped
     healthcheck:
       test: [
           "CMD",
           "sh",
           "-c",
-          "wget --no-verbose --tries=1 --spider http://palmr:${API_EXTERNAL_PORT:-3333}/health && wget --no-verbose --tries=1 --spider http://palmr:5487",
+          "wget --no-verbose --tries=1 --spider http://palmr:${API_EXTERNAL_PORT:-3333}/health && wget --no-verbose --tries=1 --spider http://palmr:${APP_EXTERNAL_PORT:-5487}",
         ] # Healthcheck for the application
       interval: 30s
       timeout: 10s
       retries: 5
-      start_period: 120s
-
-  postgres:
-    image: postgres:16-alpine # You can use any postgres version you prefer, but remember that some versions might not be compatible
-    container_name: palmr-database
-    environment:
-      - POSTGRES_USER=${POSTGRES_USER:-postgres} # PostgreSQL username (default: postgres) can be overridden by env var
-      - POSTGRES_PASSWORD=${POSTGRES_PASSWORD:-postgresRootPassword} # PostgreSQL password (default: postgresRootPassword) can be overridden by env var
-      - POSTGRES_DB=${POSTGRES_DB:-palmr_db} # PostgreSQL database name (default: palmr_db) can be overridden by env var
-    volumes:
-      - postgres_data:/var/lib/postgresql/data # PostgreSQL data volume for the application
-    ports:
-      - "${DB_EXTERNAL_PORT:-5432}:5432" # PostgreSQL port (default: 5432) can be overridden by env var
-    networks:
-      - palmr-network # Network for the application to communicate with the database
-    restart: unless-stopped
-    healthcheck:
-      test: [
-          "CMD",
-          "pg_isready",
-          "-U",
-          "${POSTGRES_USER:-postgres}",
-          "-d",
-          "${POSTGRES_DB:-palmr_db}",
-        ] # Healthcheck for the database
-      interval: 5s
-      timeout: 3s
-      retries: 6
-      start_period: 30s
+      start_period: 60s # Reduced start period since we don't need to wait for PostgreSQL
 
 volumes:
-  postgres_data:
   palmr_uploads:
   palmr_temp_chunks:
-
-networks:
-  palmr-network:
-    driver: bridge
+  palmr_database: # Volume for SQLite database persistence
diff --git a/infra/server-start.sh b/infra/server-start.sh
index c14435f..cd92b15 100644
--- a/infra/server-start.sh
+++ b/infra/server-start.sh
@@ -1,28 +1,19 @@
 #!/bin/sh
 
-echo "Starting Palmr Server..."
+echo "Starting Palmr Server with SQLite..."
 
 # Set proper environment
 export HOME=/home/palmr
 export NPM_CONFIG_CACHE=/home/palmr/.npm
 export PNPM_HOME=/home/palmr/.pnpm
 
-# Wait for PostgreSQL - use environment variable or default to postgres
-DB_HOST=${DB_HOST:-postgres}
-DB_PORT=${DB_PORT:-5432}
-echo "Waiting for PostgreSQL at $DB_HOST:$DB_PORT..."
-while ! nc -z $DB_HOST $DB_PORT; do
-  sleep 1
-done
-echo "PostgreSQL is up!"
-
 cd /app/server
 
 echo "Generating Prisma client..."
 npx prisma generate --schema=./prisma/schema.prisma
 
-echo "Running migrations..."
-npx prisma migrate deploy
+echo "Pushing database schema..."
+npx prisma db push --accept-data-loss
 
 echo "Running database seeds..."
 node prisma/seed.js || echo "Seeds failed or already exist, continuing..."