diff --git a/misc/tools.func b/misc/tools.func
index b55f1de1b..8a39009d3 100644
--- a/misc/tools.func
+++ b/misc/tools.func
@@ -3818,6 +3818,103 @@ function setup_postgresql() {
   fi
 }
 
+# ------------------------------------------------------------------------------
+# Creates PostgreSQL database with user and optional extensions
+#
+# Description:
+#   - Creates PostgreSQL role with login and password
+#   - Creates database with UTF8 encoding and template0
+#   - Installs optional extensions (postgis, pgvector, etc.)
+#   - Configures ALTER ROLE settings for Django/Rails compatibility
+#   - Saves credentials to file
+#   - Exports variables for use in calling script
+#
+# Usage:
+#   DB_NAME="myapp_db" DB_USER="myapp_user" setup_postgresql_db
+#   DB_NAME="immich" DB_USER="immich" DB_EXTENSIONS="pgvector" setup_postgresql_db
+#   DB_NAME="ghostfolio" DB_USER="ghostfolio" DB_GRANT_SUPERUSER="true" setup_postgresql_db
+#   DB_NAME="adventurelog" DB_USER="adventurelog" DB_EXTENSIONS="postgis" setup_postgresql_db
+#
+# Variables:
+#   DB_NAME             - Database name (required)
+#   DB_USER             - Database user (required)
+#   DB_PASS             - Database password (optional, auto-generated if empty)
+#   DB_EXTENSIONS       - Comma-separated list of extensions (optional, e.g. "postgis,pgvector")
+#   DB_GRANT_SUPERUSER  - Grant SUPERUSER privilege (optional, "true" to enable, security risk!)
+#   DB_SCHEMA_PERMS     - Grant schema-level permissions (optional, "true" to enable)
+#   DB_SKIP_ALTER_ROLE  - Skip ALTER ROLE settings (optional, "true" to skip)
+#   DB_CREDS_FILE       - Credentials file path (optional, default: ~/pg_${DB_NAME}.creds)
+#
+# Exports:
+#   PG_DB_NAME, PG_DB_USER, PG_DB_PASS - For use in calling script
+# ------------------------------------------------------------------------------
+
+function setup_postgresql_db() {
+  # Validation
+  if [[ -z "$DB_NAME" || -z "$DB_USER" ]]; then
+    msg_error "DB_NAME and DB_USER must be set before calling setup_postgresql_db"
+    return 1
+  fi
+
+  # Generate password if not provided
+  if [[ -z "$DB_PASS" ]]; then
+    DB_PASS=$(openssl rand -base64 18 | tr -dc 'a-zA-Z0-9' | head -c13)
+  fi
+
+  msg_info "Setting up PostgreSQL Database"
+  $STD sudo -u postgres psql -c "CREATE ROLE $DB_USER WITH LOGIN PASSWORD '$DB_PASS';"
+  $STD sudo -u postgres psql -c "CREATE DATABASE $DB_NAME WITH OWNER $DB_USER ENCODING 'UTF8' TEMPLATE template0;"
+
+  # Install extensions (comma-separated)
+  if [[ -n "$DB_EXTENSIONS" ]]; then
+    IFS=',' read -ra EXT_LIST <<<"$DB_EXTENSIONS"
+    for ext in "${EXT_LIST[@]}"; do
+      ext=$(echo "$ext" | xargs) # Trim whitespace
+      $STD sudo -u postgres psql -d "$DB_NAME" -c "CREATE EXTENSION IF NOT EXISTS $ext;"
+    done
+  fi
+
+  # ALTER ROLE settings for Django/Rails compatibility (unless skipped)
+  if [[ "$DB_SKIP_ALTER_ROLE" != "true" ]]; then
+    $STD sudo -u postgres psql -c "ALTER ROLE $DB_USER SET client_encoding TO 'utf8';"
+    $STD sudo -u postgres psql -c "ALTER ROLE $DB_USER SET default_transaction_isolation TO 'read committed';"
+    $STD sudo -u postgres psql -c "ALTER ROLE $DB_USER SET timezone TO 'UTC';"
+  fi
+
+  # Schema permissions (if requested)
+  if [[ "$DB_SCHEMA_PERMS" == "true" ]]; then
+    $STD sudo -u postgres psql -c "GRANT ALL PRIVILEGES ON DATABASE $DB_NAME TO $DB_USER;"
+    $STD sudo -u postgres psql -c "ALTER USER $DB_USER CREATEDB;"
+    $STD sudo -u postgres psql -d "$DB_NAME" -c "GRANT ALL ON SCHEMA public TO $DB_USER;"
+    $STD sudo -u postgres psql -d "$DB_NAME" -c "GRANT CREATE ON SCHEMA public TO $DB_USER;"
+    $STD sudo -u postgres psql -d "$DB_NAME" -c "ALTER DEFAULT PRIVILEGES IN SCHEMA public GRANT ALL ON TABLES TO $DB_USER;"
+    $STD sudo -u postgres psql -d "$DB_NAME" -c "ALTER DEFAULT PRIVILEGES IN SCHEMA public GRANT ALL ON SEQUENCES TO $DB_USER;"
+  fi
+
+  # Superuser grant (if requested - WARNING!)
+  if [[ "$DB_GRANT_SUPERUSER" == "true" ]]; then
+    msg_warn "Granting SUPERUSER privilege (security risk!)"
+    $STD sudo -u postgres psql -c "GRANT ALL PRIVILEGES ON DATABASE $DB_NAME to $DB_USER;"
+    $STD sudo -u postgres psql -c "ALTER USER $DB_USER WITH SUPERUSER;"
+  fi
+
+  # Save credentials
+  local CREDS_FILE="${DB_CREDS_FILE:-~/pg_${DB_NAME}.creds}"
+  {
+    echo "PostgreSQL Credentials"
+    echo "Database: $DB_NAME"
+    echo "User: $DB_USER"
+    echo "Password: $DB_PASS"
+  } >>"$CREDS_FILE"
+
+  msg_ok "Set up PostgreSQL Database"
+
+  # Export for use in calling script
+  export PG_DB_NAME="$DB_NAME"
+  export PG_DB_USER="$DB_USER"
+  export PG_DB_PASS="$DB_PASS"
+}
+
 # ------------------------------------------------------------------------------
 # Installs rbenv and ruby-build, installs Ruby and optionally Rails.
 #