diff --git a/docker-compose.yml b/docker-compose.yml
index ed2c6b0..3effb8f 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -18,8 +18,17 @@ services:
   readur:
     build: .
     environment:
-      # Database configuration
+      # Database configuration - choose one of these methods:
+      # Method 1: Use DATABASE_URL (takes priority if set)
       DATABASE_URL: postgresql://readur:readur@postgres/readur
+
+      # Method 2: Use individual PostgreSQL variables
+      # (Only used if DATABASE_URL is not set or commented out)
+      # POSTGRES_HOST: postgres
+      # POSTGRES_PORT: 5432
+      # POSTGRES_DB: readur
+      # POSTGRES_USER: readur
+      # POSTGRES_PASSWORD: readur
       
       # Server configuration - choose one of these methods:
       # Method 1: Use SERVER_ADDRESS for full control
diff --git a/docs/configuration-reference.md b/docs/configuration-reference.md
index e6318aa..b8fa104 100644
--- a/docs/configuration-reference.md
+++ b/docs/configuration-reference.md
@@ -8,7 +8,12 @@ This document provides a comprehensive reference for all configuration options a
 
 | Variable | Type | Default | Description | Required |
 |----------|------|---------|-------------|----------|
-| `DATABASE_URL` | String | `postgresql://readur:readur@localhost/readur` | PostgreSQL connection string | Yes |
+| `DATABASE_URL` | String | `postgresql://readur:readur@localhost/readur` | PostgreSQL connection string (takes priority over individual vars) | Yes* |
+| `POSTGRES_HOST` | String | `localhost` | PostgreSQL host (used if DATABASE_URL not set) | No |
+| `POSTGRES_PORT` | String | `5432` | PostgreSQL port (used if DATABASE_URL not set) | No |
+| `POSTGRES_DB` | String | `readur` | PostgreSQL database name (used if DATABASE_URL not set) | No |
+| `POSTGRES_USER` | String | `readur` | PostgreSQL username (used if DATABASE_URL not set) | No |
+| `POSTGRES_PASSWORD` | String | `readur` | PostgreSQL password (used if DATABASE_URL not set) | No |
 | `SERVER_ADDRESS` | String | `0.0.0.0:8080` | Server bind address (host:port) | No |
 | `SERVER_HOST` | String | `0.0.0.0` | Server host (used if SERVER_ADDRESS not set) | No |
 | `SERVER_PORT` | String | `8080` | Server port (used if SERVER_ADDRESS not set) | No |
@@ -196,6 +201,29 @@ This document provides a comprehensive reference for all configuration options a
 | `FEATURE_WEBDAV` | Boolean | `true` | Enable WebDAV sync | No |
 | `FEATURE_API_V2` | Boolean | `false` | Enable API v2 endpoints | No |
 
+## Database Connection Priority
+
+The database connection can be configured in two ways:
+
+1. **Using `DATABASE_URL`** (takes priority if set):
+   ```bash
+   DATABASE_URL=postgresql://username:password@host:port/database
+   ```
+
+2. **Using individual PostgreSQL variables** (used if `DATABASE_URL` is not set):
+   ```bash
+   POSTGRES_HOST=localhost
+   POSTGRES_PORT=5432
+   POSTGRES_DB=readur
+   POSTGRES_USER=readur
+   POSTGRES_PASSWORD=your_password
+   ```
+
+This flexibility allows for easy deployment across different platforms:
+- **Docker/Kubernetes**: Often provide individual variables
+- **Heroku/Railway**: Typically provide `DATABASE_URL`
+- **Local Development**: Use either method based on preference
+
 ## Configuration Files
 
 ### Main Configuration (readur.yml)
diff --git a/docs/installation.md b/docs/installation.md
index 733dddf..53162e3 100644
--- a/docs/installation.md
+++ b/docs/installation.md
@@ -103,6 +103,8 @@ nano .env
 ```
 
 Required environment variables:
+
+**Option 1: Using DATABASE_URL (recommended)**:
 ```env
 DATABASE_URL=postgresql://readur_user:your_password@localhost/readur
 JWT_SECRET=your-super-secret-jwt-key-change-this
@@ -112,6 +114,24 @@ WATCH_FOLDER=./watch
 ALLOWED_FILE_TYPES=pdf,png,jpg,jpeg,gif,bmp,tiff,txt,rtf,doc,docx
 ```
 
+**Option 2: Using individual PostgreSQL variables**:
+```env
+# DATABASE_URL takes priority if set, but you can use individual variables instead
+POSTGRES_HOST=localhost
+POSTGRES_PORT=5432
+POSTGRES_DB=readur
+POSTGRES_USER=readur_user
+POSTGRES_PASSWORD=your_password
+
+JWT_SECRET=your-super-secret-jwt-key-change-this
+SERVER_ADDRESS=0.0.0.0:8000
+UPLOAD_PATH=./uploads
+WATCH_FOLDER=./watch
+ALLOWED_FILE_TYPES=pdf,png,jpg,jpeg,gif,bmp,tiff,txt,rtf,doc,docx
+```
+
+> **Note**: If `DATABASE_URL` is set, it takes priority over individual PostgreSQL variables. This is useful for different deployment scenarios where some platforms provide a single connection string while others provide individual components.
+
 3. **Build and Run Backend**:
 ```bash
 # Install dependencies and run