diff --git a/db/README.md b/db/README.md
new file mode 100644
index 0000000..af61e32
--- /dev/null
+++ b/db/README.md
@@ -0,0 +1,8 @@
+## Postgres Setup with docker-compose
+
+Start the postgres container with the following command:
+```bash
+docker-compose up -d
+```
+
+Alternatively, you can use a PyCharm configuration to start the container. (Docker > Docker Compose)
\ No newline at end of file
diff --git a/db/docker-compose.yml b/db/docker-compose.yml
new file mode 100644
index 0000000..66c5a2a
--- /dev/null
+++ b/db/docker-compose.yml
@@ -0,0 +1,14 @@
+version: '3.8'
+
+services:
+  postgres:
+    image: postgres:latest
+    environment:
+      POSTGRES_DB: mixr-db
+      POSTGRES_USER: mixr-api
+      POSTGRES_PASSWORD: mypassword
+    ports:
+      - "5432:5432"
+    # Optional: Uncomment the following line to mount a volume for persistence
+    # volumes:
+    #   - /path/on/host:/var/lib/postgresql/data
diff --git a/mixr_api/settings.py b/mixr_api/settings.py
index 3c017d1..48e5b70 100644
--- a/mixr_api/settings.py
+++ b/mixr_api/settings.py
@@ -75,8 +75,12 @@ WSGI_APPLICATION = 'mixr_api.wsgi.application'
 
 DATABASES = {
     'default': {
-        'ENGINE': 'django.db.backends.sqlite3',
-        'NAME': BASE_DIR / 'db.sqlite3',
+        'ENGINE': 'django.db.backends.postgresql',
+        'NAME': 'mixr-db',
+        'USER': 'mixr-api',
+        'PASSWORD': 'mypassword',
+        'HOST': '127.0.0.1',
+        'PORT': '5432',
     }
 }
 
diff --git a/requirements.txt b/requirements.txt
index a1e13a3..7a8ce49 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -1 +1,2 @@
-Django~=5.0.2
\ No newline at end of file
+Django~=5.0.2
+psycopg2-binary~=2.9.9
\ No newline at end of file