diff --git a/deployment/Compose/compose/compose.yaml b/deployment/Compose/compose/compose.yaml
index a516b67aca..d3e96e6258 100644
--- a/deployment/Compose/compose/compose.yaml
+++ b/deployment/Compose/compose/compose.yaml
@@ -39,6 +39,11 @@ services:
     volumes:
       # Mounts the container's internal data directory to a named volume
       - ${SYS_DATA_DIR}/postgres:/var/lib/postgresql
+      # Mounts initialization scripts to refresh collations on container restart
+      - ./setup/init-db:/docker-entrypoint-initdb.d
+      # Custom entrypoint wrapper to execute init scripts on restart, not just init
+      - ./setup/docker-entrypoint.sh:/usr/local/bin/custom-entrypoint.sh
+    entrypoint: ["/usr/local/bin/custom-entrypoint.sh"]
     environment:
       POSTGRES_USER: ${POSTGRES_USER}
       POSTGRES_PASSWORD: ${POSTGRES_PASSWORD}
diff --git a/deployment/Compose/compose/setup/docker-entrypoint.sh b/deployment/Compose/compose/setup/docker-entrypoint.sh
new file mode 100644
index 0000000000..9ef42c53f0
--- /dev/null
+++ b/deployment/Compose/compose/setup/docker-entrypoint.sh
@@ -0,0 +1,19 @@
+#!/bin/bash
+set -e
+
+# Custom entrypoint wrapper to run collation refresh before standard postgres entrypoint
+# This ensures the refresh runs on container restart, not just initial setup
+
+# Run our custom initialization scripts
+if [ -f /var/lib/postgresql/data/PG_VERSION ]; then
+    echo "Running custom initialization tasks..."
+    for script in /docker-entrypoint-initdb.d/*; do
+        if [ -f "$script" ] && [ -x "$script" ] && [[ "$script" == *.sh ]]; then
+            echo "Running $script"
+            "$script"
+        fi
+    done
+fi
+
+# Invoke the original postgres entrypoint
+exec /usr/local/bin/docker-entrypoint.sh "$@"
diff --git a/deployment/Compose/compose/setup/init-db/01-refresh-collations.sh b/deployment/Compose/compose/setup/init-db/01-refresh-collations.sh
new file mode 100644
index 0000000000..d1be8fb837
--- /dev/null
+++ b/deployment/Compose/compose/setup/init-db/01-refresh-collations.sh
@@ -0,0 +1,25 @@
+#!/bin/bash
+set -e
+
+# Refresh collation versions for all non-template databases
+# This fixes collation mismatches when glibc library is updated during PostgreSQL minor version upgrades
+# Only run if not a new init (i.e., on container restart/upgrade)
+if [ -f /var/lib/postgresql/data/PG_VERSION ]; then
+    echo "Checking and refreshing collation versions..."
+    
+    # Get list of databases that need collation refresh
+    psql -d postgres -t -c "SELECT datname FROM pg_database WHERE datname NOT IN ('template0','template1') AND EXISTS (SELECT 1 FROM pg_collation WHERE collversion IS NOT NULL AND collversion <> pg_collation_actual_version(oid))" > /tmp/needs_refresh.txt 2>&1 || { echo "Warning: Could not check collation versions"; true; }
+
+    # Run REFRESH for each DB that needs it
+    while read -r db; do
+        # Skip empty lines
+        if [ -z "$(echo "$db" | xargs)" ]; then
+            continue
+        fi
+        db=$(echo "$db" | xargs)  # Trim whitespace
+        echo "Refreshing collation for database: $db"
+        psql -d "$db" -c "ALTER DATABASE \"$db\" REFRESH COLLATION VERSION"
+    done < /tmp/needs_refresh.txt
+    
+    rm -f /tmp/needs_refresh.txt
+fi