diff --git a/backend/.env b/backend/.env
index 24aeccb..daf7b5e 100644
--- a/backend/.env
+++ b/backend/.env
@@ -2,8 +2,7 @@ NODE_ENV=production
 POSTGRES_USER=root
 POSTGRES_PASSWORD=irina76
 POSTGRES_DB=imk_db
-DATABASE_URL="postgresql://postgres:postgres@localhost:5432/imk_db?schema=public"
-
+ATABASE_URL=postgresql://postgres:${POSTGRES_PASSWORD}@postgres:5432/${POSTGRES_DB}?schema=public
 API_URL="https://imkapi.oblak.solutions"
 CORS_ORIGIN="[http://localhost:5173,https://www.placebo.mk,https://placebo.mk]"
 
diff --git a/backend/Dockerfile b/backend/Dockerfile
index 54b8c6e..beb70fe 100644
--- a/backend/Dockerfile
+++ b/backend/Dockerfile
@@ -1,27 +1,25 @@
+# backend/Dockerfile
+FROM node:18-alpine AS builder
 
-FROM node:18.19.1-alpine3.18
+WORKDIR /app
 
-WORKDIR /usr/src/app
-
-# Install necessary tools and dependencies
-RUN apk add --no-cache \
-    curl \
-    wget \
-    python3 \
-    make \
-    g++ \
-    && rm -rf /var/cache/apk/*
+# Install necessary tools
+RUN apk add --no-cache curl wget postgresql-client
 
 # Copy package files
 COPY package*.json ./
-COPY prisma ./prisma/
 
-# Install dependencies
-# RUN npm ci --only=production
+# Install dependencies including dev dependencies for building
+RUN npm install
+
+# Install NestJS CLI globally
+RUN npm install -g @nestjs/cli
+
+# Copy prisma files
+COPY prisma ./prisma/
 
 # Generate Prisma client
 RUN npx prisma generate
-RUN npx prisma migrate deploy
 
 # Copy source code
 COPY . .
@@ -29,15 +27,39 @@ COPY . .
 # Build the application
 RUN npm run build
 
-# Expose port
+# Production stage
+FROM node:18-alpine
+
+WORKDIR /app
+
+# Install necessary tools
+RUN apk add --no-cache curl wget postgresql-client
+
+# Copy package files
+COPY package*.json ./
+
+# Install production dependencies only
+RUN npm install --omit=dev
+
+# Copy prisma files and generate client
+COPY prisma ./prisma/
+RUN npx prisma generate
+
+# Copy built application from builder stage
+COPY --from=builder /app/dist ./dist
+
+# Create wait-for-db script
+RUN echo '#!/bin/sh\n\
+    until pg_isready -h postgres -p 5432 -U ${POSTGRES_USER}; do\n\
+    echo "Waiting for postgres...";\n\
+    sleep 2;\n\
+    done\n\
+    \n\
+    echo "PostgreSQL is ready!"\n\
+    \n\
+    npx prisma migrate deploy\n\
+    node dist/main.js' > /app/start.sh && chmod +x /app/start.sh
+
 EXPOSE 3000
 
-# Add healthcheck
-HEALTHCHECK --interval=30s --timeout=10s --start-period=5s --retries=3 \
-    CMD wget -q --spider http://localhost:3000/health || exit 1
-
-# Set Node options
-ENV NODE_OPTIONS="--max-old-space-size=2048"
-
-# Start the application directly with node
-CMD ["node", "dist/main.js"]
+CMD ["/app/start.sh"]
diff --git a/backend/package.json b/backend/package.json
index 8a43d41..06835c3 100644
--- a/backend/package.json
+++ b/backend/package.json
@@ -13,6 +13,8 @@
     "start:dev": "nest start --watch",
     "start:debug": "nest start --debug --watch",
     "start:prod": "node dist/main.js",
+    "db:init": "./scripts/init-db.sh",
+    "db:test": "./scripts/test-db.sh",
     "lint": "eslint \"{src,apps,libs,test}/**/*.ts\" --fix",
     "test": "jest",
     "test:watch": "jest --watch",
@@ -21,7 +23,7 @@
     "test:e2e": "jest --config ./test/jest-e2e.json",
     "prisma:generate": "prisma generate",
     "prisma:migrate:dev": "prisma migrate dev",
-    "prisma:migrate:deploy": "prisma migrate deploy"
+    "prisma:migrate": "prisma migrate deploy"
   },
   "dependencies": {
     "@aws-sdk/client-s3": "^3.679.0",
diff --git a/backend/scripts/init-db.sh b/backend/scripts/init-db.sh
new file mode 100644
index 0000000..7e0b8a7
--- /dev/null
+++ b/backend/scripts/init-db.sh
@@ -0,0 +1,9 @@
+#!/bin/bash
+# backend/scripts/init-db.sh
+
+set -e
+
+psql -v ON_ERROR_STOP=1 --username "$POSTGRES_USER" --dbname "$POSTGRES_DB" <<-EOSQL
+    CREATE DATABASE $POSTGRES_DB;
+    GRANT ALL PRIVILEGES ON DATABASE $POSTGRES_DB TO $POSTGRES_USER;
+EOSQL
diff --git a/backend/scripts/test-db.sh b/backend/scripts/test-db.sh
new file mode 100644
index 0000000..fa6d7cc
--- /dev/null
+++ b/backend/scripts/test-db.sh
@@ -0,0 +1,17 @@
+#!/bin/bash
+# backend/scripts/test-db.sh
+
+echo "Testing database connection..."
+
+export PGPASSWORD=$POSTGRES_PASSWORD
+
+echo "Attempting to connect to postgres:5432..."
+pg_isready -h postgres -p 5432 -U $POSTGRES_USER
+
+if [ $? -eq 0 ]; then
+    echo "Database connection successful!"
+    psql -h postgres -U $POSTGRES_USER -d $POSTGRES_DB -c "\dt"
+else
+    echo "Database connection failed!"
+    exit 1
+fi
diff --git a/backend/scripts/wait-for-db.sh b/backend/scripts/wait-for-db.sh
new file mode 100644
index 0000000..e69de29
diff --git a/backend/src/config/database.config.ts b/backend/src/config/database.config.ts
new file mode 100644
index 0000000..9e8b297
--- /dev/null
+++ b/backend/src/config/database.config.ts
@@ -0,0 +1,5 @@
+export const getDatabaseUrl = () => {
+  const url = process.env.DATABASE_URL;
+  console.log("Database URL:", url); // For debugging
+  return url;
+};
diff --git a/backend/src/prisma/prisma.service.ts b/backend/src/prisma/prisma.service.ts
index 7ffd32d..ce4dc1b 100644
--- a/backend/src/prisma/prisma.service.ts
+++ b/backend/src/prisma/prisma.service.ts
@@ -1,13 +1,39 @@
-import { Injectable, OnModuleInit, OnModuleDestroy } from '@nestjs/common';
-import { PrismaClient } from '@prisma/client';
+import {
+  Injectable,
+  OnModuleInit,
+  OnModuleDestroy,
+  Logger,
+} from "@nestjs/common";
+import { PrismaClient } from "@prisma/client";
 
 @Injectable()
 export class PrismaService
   extends PrismaClient
   implements OnModuleInit, OnModuleDestroy
 {
+  private readonly logger = new Logger(PrismaService.name);
+
+  constructor() {
+    super({
+      datasources: {
+        db: {
+          url: process.env.DATABASE_URL,
+        },
+      },
+    });
+    this.logger.log(
+      `Connecting to database with URL: ${process.env.DATABASE_URL}`,
+    );
+  }
+
   async onModuleInit() {
-    await this.$connect();
+    try {
+      await this.$connect();
+      this.logger.log("Successfully connected to database");
+    } catch (error) {
+      this.logger.error("Failed to connect to database:", error);
+      throw error;
+    }
   }
 
   async onModuleDestroy() {
diff --git a/docker-compose.yml b/docker-compose.yml
index 4d3df7f..da36384 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -6,77 +6,42 @@ services:
     build:
       context: ./backend
       dockerfile: Dockerfile
-      args:
-        - NODE_ENV=${NODE_ENV}
-        - API_URL=${API_URL}
-        - CORS_ORIGIN=${CORS_ORIGIN}
-        - DATABASE_URL=${DATABASE_URL}
-        - JWT_SECRET=${JWT_SECRET}
-        - SMTP_HOST=${SMTP_HOST}
-        - SMTP_PORT=${SMTP_PORT}
-        - SMTP_USER=${SMTP_USER}
-        - SMTP_PASS=${SMTP_PASS}
-        - EMAIL_FROM=${EMAIL_FROM}
+    environment:
+      - NODE_ENV=production
+      - DATABASE_URL=postgresql://postgres:${POSTGRES_PASSWORD}@postgres:5432/${POSTGRES_DB}?schema=public
+      - POSTGRES_USER=${POSTGRES_USER}
+      - POSTGRES_PASSWORD=${POSTGRES_PASSWORD}
+      - POSTGRES_DB=${POSTGRES_DB}
     ports:
       - "3000:3000"
-    environment:
-      - NODE_ENV=${NODE_ENV}
-      - API_URL=${API_URL}
-      - CORS_ORIGIN=${CORS_ORIGIN}
-      - DATABASE_URL=${DATABASE_URL}
-      - SMTP_HOST=${SMTP_HOST}
-      - SMTP_PORT=${SMTP_PORT}
-      - SMTP_USER=${SMTP_USER}
-      - SMTP_PASS=${SMTP_PASS}
-      - EMAIL_FROM=${EMAIL_FROM}
-      - CORS_ORIGINS=http://localhost:5173,https://www.placebo.mk,https://placebo.mk
-      - CORS_CREDENTIALS=true
     depends_on:
       postgres:
         condition: service_healthy
-      redis:
-        condition: service_healthy
     networks:
-      - app_network
+      - imk_network
 
   postgres:
     container_name: imk-postgres
     image: postgres:14-alpine
     environment:
-      - DATABASE_URL=postgresql://${POSTGRES_USER}:${POSTGRES_PASSWORD}@localhost:5432/${POSTGRES_DB}
       - POSTGRES_USER=${POSTGRES_USER}
       - POSTGRES_PASSWORD=${POSTGRES_PASSWORD}
       - POSTGRES_DB=${POSTGRES_DB}
     volumes:
       - postgres_data:/var/lib/postgresql/data
+    ports:
+      - "5432:5432"
     networks:
-      - app_network
+      - imk_network
     healthcheck:
-      test: ["CMD-SHELL", "pg_isready -U ${POSTGRES_USER}"]
+      test: ["CMD-SHELL", "pg_isready -U postgres"]
       interval: 10s
       timeout: 5s
       retries: 5
 
-  redis:
-    container_name: imk-redis
-    image: redis:alpine
-    command: redis-server --requirepass ${REDIS_PASSWORD}
-    environment:
-      - REDIS_PASSWORD=${REDIS_PASSWORD}
-    volumes:
-      - redis_data:/data
-    networks:
-      - app_network
-    healthcheck:
-      test: ["CMD", "redis-cli", "-a", "${REDIS_PASSWORD}", "ping"]
-      interval: 10s
-      timeout: 5s
-      retries: 3
-
 networks:
-  app_network:
+  imk_network:
     driver: bridge
 
 volumes:
   postgres_data:
-  redis_data: