diff --git a/backend/Dockerfile b/backend/Dockerfile
index a1d8da4..ac40562 100644
--- a/backend/Dockerfile
+++ b/backend/Dockerfile
@@ -20,15 +20,19 @@ FROM alpine:3.19
 
 # Install ca-certificates (if needed)
 RUN apk add --no-cache ca-certificates
+RUN apk add --no-cache netcat-openbsd
 
 # Set workdir
 WORKDIR /app
+# Removed hosts entry addition (handled via docker-compose extra_hosts)
 
 # Copy the binary from the builder stage
 COPY --from=builder /app/main .
 
 # Expose the application port (default for the Go server)
+COPY entrypoint.sh .
+RUN chmod +x entrypoint.sh
 EXPOSE 8080
 
 # Command to run the binary
-CMD ["./main"]
+CMD ["./entrypoint.sh"]
diff --git a/backend/entrypoint.sh b/backend/entrypoint.sh
new file mode 100644
index 0000000..dd00b47
--- /dev/null
+++ b/backend/entrypoint.sh
@@ -0,0 +1,24 @@
+#!/usr/bin/env sh
+
+# entrypoint.sh – wait for the SQL Server container to become ready
+# before starting the Go backend binary.
+
+set -e
+
+# Default environment variables (can be overridden in docker-compose)
+: "${DB_SERVER:=sql}"
+: "${DB_USER:=sa}"
+: "${DB_PASSWORD:=Ou812@12!@}"
+
+# Wait until netcat can successfully connect to the SQL Server port
+while ! nc -z "$DB_SERVER" 1433; do
+    echo "⏳ Waiting for SQL Server at $DB_SERVER:1433..."
+    sleep 1
+done
+# Add a short pause after the port is open to let SQL Server finish startup
+sleep 5
+# Add a short pause after the port is open to let SQL Server finish startup
+sleep 2
+
+echo "✅ SQL Server is ready. Starting backend."
+exec ./main
diff --git a/backend/main.go b/backend/main.go
index 319295a..0d3bb2a 100644
--- a/backend/main.go
+++ b/backend/main.go
@@ -41,17 +41,9 @@ func main() {
 	// -----------------------------------------------------------------
 	var newCustID int
 	insertCustSQL := `
-DECLARE @NewID int;
-EXEC dbo.sp_InsertCustomer
-    @CustomerName = @name,
-    @AddressLine1 = @addr1,
-    @AddressLine2 = @addr2,
-    @City = @city,
-    @State = @state,
-    @ZipCode = @zip,
-    @Country = @country,
-    @NewCustomerID = @NewID OUTPUT;
-SELECT @NewID;
+INSERT INTO dbo.Customers (CustomerName, AddressLine1, AddressLine2, City, State, ZipCode, Country)
+VALUES (@name, @addr1, @addr2, @city, @state, @zip, @country);
+SELECT SCOPE_IDENTITY() AS NewID;
 `
 	row := db.QueryRow(insertCustSQL,
 		sql.Named("name", "Acme Corp"),
@@ -72,14 +64,9 @@ SELECT @NewID;
 	// -----------------------------------------------------------------
 	var newContactID int
 	insertContactSQL := `
-DECLARE @NewContactID int;
-EXEC dbo.sp_InsertContact
-    @CustomerID = @custID,
-    @ContactTypeID = @typeID,
-    @ContactValue = @value,
-    @IsPrimary = @primary,
-    @NewContactID = @NewContactID OUTPUT;
-SELECT @NewContactID;
+INSERT INTO dbo.Contacts (CustomerID, ContactTypeID, ContactValue, IsPrimary)
+VALUES (@custID, @typeID, @value, @primary);
+SELECT SCOPE_IDENTITY() AS NewContactID;
 `
 	// Assume ContactTypeID 1 = Phone (created by init.sql)
 	row = db.QueryRow(insertContactSQL,
diff --git a/db/Dockerfile b/db/Dockerfile
new file mode 100644
index 0000000..3143501
--- /dev/null
+++ b/db/Dockerfile
@@ -0,0 +1,27 @@
+# Dockerfile for DB init service
+
+FROM mcr.microsoft.com/mssql/server:2022-latest
+
+# Set SQL Server environment variables
+ENV SA_PASSWORD=Ou812@12!@ \
+    ACCEPT_EULA=Y
+
+# Set working directory inside the container
+WORKDIR /usr/src/app
+
+# Copy the initialization script and SQL file into the image
+COPY --chmod=0755 init.sh .
+COPY init.sql .
+
+# Make the script executable
+
+
+# Start SQL Server, wait until it is ready, then run the init script
+CMD /opt/mssql/bin/sqlservr & \
+    /bin/bash -c "\
+    until /opt/mssql-tools/bin/sqlcmd -S localhost -U SA -P $$SA_PASSWORD -Q \"SELECT 1\" >/dev/null 2>&1; do \
+    sleep 1; \
+    done && \
+    ./init.sh && \
+    tail -f /dev/null \
+    "
diff --git a/db/init.sh b/db/init.sh
new file mode 100644
index 0000000..9239628
--- /dev/null
+++ b/db/init.sh
@@ -0,0 +1,32 @@
+#!/usr/bin/env bash
+
+# init.sh - Initialize the SQL Server database with the schema and sample data.
+# This script is intended to be run inside the SQL Server container (or from the host
+# with sqlcmd reachable). It executes the init.sql script located in the same
+# directory.
+
+set -euo pipefail
+
+# Default connection settings – can be overridden via environment variables
+: "${DB_SERVER:=localhost}"
+: "${DB_USER:=sa}"
+: "${DB_PASSWORD:=YourStrong!Passw0rd}"
+: "${DB_NAME:=CustomerDB}"
+: "${SQLCMD_PATH:=sqlcmd}"   # Path to the sqlcmd executable
+
+# Path to the init script (relative to this script's location)
+SCRIPT_DIR="$(cd "$(dirname "${BASH_SOURCE[0]}")" && pwd)"
+INIT_SQL="${SCRIPT_DIR}/init.sql"
+
+if [[ ! -f "${INIT_SQL}" ]]; then
+    echo "❌ init.sql not found at ${INIT_SQL}"
+    exit 1
+fi
+
+echo "🚀 Running database initialization..."
+"${SQLCMD_PATH}" -S "${DB_SERVER}" -U "${DB_USER}" -P "${DB_PASSWORD}" -d "master" -Q "IF DB_ID(N'${DB_NAME}') IS NULL CREATE DATABASE ${DB_NAME};"
+
+# Run the init script against the newly created database
+"${SQLCMD_PATH}" -S "${DB_SERVER}" -U "${DB_USER}" -P "${DB_PASSWORD}" -d "${DB_NAME}" -i "${INIT_SQL}"
+
+echo "✅ Database ${DB_NAME} initialized successfully."
diff --git a/docker-compose.yml b/docker-compose.yml
index 6a86f77..02ef477 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -1,14 +1,39 @@
 services:
+  sql:
+    image: mcr.microsoft.com/mssql/server:2022-latest
+    container_name: sql
+    environment:
+      - ACCEPT_EULA=Y
+      - SA_PASSWORD=Ou812@12!@
+    ports:
+      - "1433:1433"
   backend:
     build:
       context: ./backend
       dockerfile: Dockerfile
+    depends_on:
+      - sql
     container_name: backend
     environment:
-      - DB_SERVER=homelab.local
+      - DB_SERVER=sql
       - DB_USER=sa
       - DB_PASSWORD=Ou812@12!@
       - DB_NAME=CustomerDB
     ports:
       - "8080:8080"
     command: ./main
+    extra_hosts:
+      - "homelab.local:192.168.1.129"
+
+  init-db:
+    build:
+      context: ./db
+      dockerfile: Dockerfile
+    container_name: init-db
+    depends_on:
+      - sql
+    environment:
+      - DB_SERVER=sql
+      - DB_USER=sa
+      - DB_PASSWORD=Ou812@12!@
+      - DB_NAME=CustomerDB