diff --git a/.env.example b/.env.example
new file mode 100644
index 0000000..b38ce18
--- /dev/null
+++ b/.env.example
@@ -0,0 +1,14 @@
+# Database Configuration
+DATABASE_URL=postgresql://yottob:yottob_password@postgres:5432/yottob
+
+# Celery Configuration
+CELERY_BROKER_URL=redis://redis:6379/0
+CELERY_RESULT_BACKEND=redis://redis:6379/0
+
+# Flask Configuration
+FLASK_ENV=development
+
+# PostgreSQL Configuration (for docker-compose)
+POSTGRES_USER=yottob
+POSTGRES_PASSWORD=yottob_password
+POSTGRES_DB=yottob
diff --git a/.gitignore b/.gitignore
index 3ae621d..87e888b 100644
--- a/.gitignore
+++ b/.gitignore
@@ -17,3 +17,9 @@ wheels/
 
 # Downloaded videos
 downloads/
+
+# Environment variables
+.env
+
+# Docker
+.dockerignore
diff --git a/CLAUDE.md b/CLAUDE.md
index dbef353..86425f4 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -4,9 +4,45 @@ This file provides guidance to Claude Code (claude.ai/code) when working with co
 
 ## Project Overview
 
-`yottob` is a Flask-based web application for processing YouTube RSS feeds with SQLAlchemy ORM persistence and async video downloads. The project provides both a REST API and CLI interface for fetching and parsing YouTube channel feeds, with filtering logic to exclude YouTube Shorts. All fetched feeds are automatically saved to a SQLite database for historical tracking. Videos can be downloaded asynchronously as MP4 files using Celery workers and yt-dlp.
+`yottob` is a Flask-based web application for processing YouTube RSS feeds with SQLAlchemy ORM persistence and async video downloads. The project provides both a REST API and CLI interface for fetching and parsing YouTube channel feeds, with filtering logic to exclude YouTube Shorts. All fetched feeds are automatically saved to a PostgreSQL database for historical tracking. Videos can be downloaded asynchronously as MP4 files using Celery workers and yt-dlp.
 
-## Development Setup
+The application is containerized with Docker and uses docker-compose to orchestrate multiple services: PostgreSQL, Redis, Flask web app, and Celery worker.
+
+## Quick Start with Docker Compose (Recommended)
+
+**Prerequisites:**
+- Docker and Docker Compose installed
+- No additional dependencies needed
+
+**Start all services:**
+```bash
+# Copy environment variables template
+cp .env.example .env
+
+# Start all services (postgres, redis, app, celery)
+docker-compose up -d
+
+# View logs
+docker-compose logs -f
+
+# Stop all services
+docker-compose down
+
+# Stop and remove volumes (deletes database data)
+docker-compose down -v
+```
+
+**Run database migrations (first time setup or after model changes):**
+```bash
+docker-compose exec app alembic upgrade head
+```
+
+**Access the application:**
+- Web API: http://localhost:5000
+- PostgreSQL: localhost:5432
+- Redis: localhost:6379
+
+## Development Setup (Local Without Docker)
 
 This project uses `uv` for dependency management.
 
@@ -20,13 +56,25 @@ uv sync
 source .venv/bin/activate  # On macOS/Linux
 ```
 
-**Initialize/update database:**
+**Set up environment variables:**
 ```bash
-# Run migrations to create or update database schema
-source .venv/bin/activate && alembic upgrade head
+cp .env.example .env
+# Edit .env with your local configuration
 ```
 
-**Start Redis (required for Celery):**
+**Start PostgreSQL (choose one):**
+```bash
+# Using Docker
+docker run -d -p 5432:5432 \
+  -e POSTGRES_USER=yottob \
+  -e POSTGRES_PASSWORD=yottob_password \
+  -e POSTGRES_DB=yottob \
+  postgres:16-alpine
+
+# Or use existing PostgreSQL installation
+```
+
+**Start Redis:**
 ```bash
 # macOS with Homebrew
 brew services start redis
@@ -36,9 +84,11 @@ sudo systemctl start redis
 
 # Docker
 docker run -d -p 6379:6379 redis:alpine
+```
 
-# Verify Redis is running
-redis-cli ping  # Should return "PONG"
+**Initialize/update database:**
+```bash
+source .venv/bin/activate && alembic upgrade head
 ```
 
 **Start Celery worker (required for video downloads):**
@@ -48,14 +98,17 @@ source .venv/bin/activate && celery -A celery_app worker --loglevel=info
 
 ## Running the Application
 
-**Run the CLI feed parser:**
+**With Docker Compose:**
 ```bash
-python main.py
+docker-compose up
 ```
-This executes the `main()` function which fetches and parses a YouTube channel RSS feed for testing.
 
-**Run the Flask web application:**
+**Local development:**
 ```bash
+# Run the CLI feed parser
+python main.py
+
+# Run the Flask web application
 flask --app main run
 ```
 The web server exposes:
@@ -110,7 +163,7 @@ The codebase follows a clean layered architecture with separation of concerns:
 - Relationships: One Channel has many VideoEntry records
 
 **`database.py`** - Database configuration and session management
-- `DATABASE_URL`: SQLite database location (yottob.db)
+- `DATABASE_URL`: Database URL from environment variable (PostgreSQL in production, SQLite fallback for local dev)
 - `engine`: SQLAlchemy engine instance
 - `init_db()`: Creates all tables
 - `get_db_session()`: Context manager for database sessions
@@ -246,11 +299,35 @@ The application uses Celery with Redis for asynchronous video downloads:
 - Celery worker must be running to process downloads
 - FFmpeg recommended for format conversion (yt-dlp will use it if available)
 
+## Environment Variables
+
+All environment variables can be configured in `.env` file (see `.env.example` for template):
+
+- `DATABASE_URL`: PostgreSQL connection string (default: `sqlite:///yottob.db` for local dev)
+- `CELERY_BROKER_URL`: Redis URL for Celery broker (default: `redis://localhost:6379/0`)
+- `CELERY_RESULT_BACKEND`: Redis URL for Celery results (default: `redis://localhost:6379/0`)
+- `FLASK_ENV`: Flask environment (development or production)
+- `POSTGRES_USER`: PostgreSQL username (for docker-compose)
+- `POSTGRES_PASSWORD`: PostgreSQL password (for docker-compose)
+- `POSTGRES_DB`: PostgreSQL database name (for docker-compose)
+
+## Docker Compose Services
+
+The application consists of 4 services defined in `docker-compose.yml`:
+
+1. **postgres**: PostgreSQL 16 database with persistent volume
+2. **redis**: Redis 7 message broker for Celery
+3. **app**: Flask web application (exposed on port 5000)
+4. **celery**: Celery worker for async video downloads
+
+All services have health checks and automatic restarts configured.
+
 ## Dependencies
 
 - **Flask 3.1.2+**: Web framework
 - **feedparser 6.0.12+**: RSS/Atom feed parsing
 - **SQLAlchemy 2.0.0+**: ORM for database operations
+- **psycopg2-binary 2.9.0+**: PostgreSQL database driver
 - **Alembic 1.13.0+**: Database migration tool
 - **Celery 5.3.0+**: Distributed task queue for async jobs
 - **Redis 5.0.0+**: Message broker for Celery
diff --git a/Dockerfile b/Dockerfile
new file mode 100644
index 0000000..54d60d1
--- /dev/null
+++ b/Dockerfile
@@ -0,0 +1,33 @@
+FROM python:3.14-slim
+
+# Install system dependencies
+RUN apt-get update && apt-get install -y \
+    ffmpeg \
+    postgresql-client \
+    curl \
+    && rm -rf /var/lib/apt/lists/*
+
+# Install uv for faster Python package management
+RUN curl -LsSf https://astral.sh/uv/install.sh | sh
+ENV PATH="/root/.cargo/bin:$PATH"
+
+# Set working directory
+WORKDIR /app
+
+# Copy dependency files
+COPY pyproject.toml uv.lock ./
+
+# Install Python dependencies
+RUN uv sync --frozen
+
+# Copy application code
+COPY . .
+
+# Create downloads directory
+RUN mkdir -p downloads
+
+# Expose Flask port
+EXPOSE 5000
+
+# Default command (can be overridden in docker-compose)
+CMD ["flask", "--app", "main", "run", "--host=0.0.0.0"]
diff --git a/celery_app.py b/celery_app.py
index 985dcc8..69fcb2b 100644
--- a/celery_app.py
+++ b/celery_app.py
@@ -1,12 +1,17 @@
 """Celery application configuration."""
 
+import os
 from celery import Celery
 
+# Get configuration from environment variables
+CELERY_BROKER_URL = os.getenv("CELERY_BROKER_URL", "redis://localhost:6379/0")
+CELERY_RESULT_BACKEND = os.getenv("CELERY_RESULT_BACKEND", "redis://localhost:6379/0")
+
 # Configure Celery
 celery_app = Celery(
     "yottob",
-    broker="redis://localhost:6379/0",
-    backend="redis://localhost:6379/0",
+    broker=CELERY_BROKER_URL,
+    backend=CELERY_RESULT_BACKEND,
     include=["download_service"]
 )
 
diff --git a/database.py b/database.py
index 3129d61..33665f9 100644
--- a/database.py
+++ b/database.py
@@ -1,5 +1,6 @@
 """Database configuration and session management."""
 
+import os
 from contextlib import contextmanager
 from typing import Generator
 
@@ -9,15 +10,20 @@ from sqlalchemy.orm import sessionmaker, Session
 from models import Base
 
 
-# Database configuration
-DATABASE_URL = "sqlite:///yottob.db"
+# Database configuration from environment variable
+# Falls back to SQLite for local development if DATABASE_URL not set
+DATABASE_URL = os.getenv("DATABASE_URL", "sqlite:///yottob.db")
 
-# Create engine
-engine = create_engine(
-    DATABASE_URL,
-    echo=False,  # Set to True for SQL query logging
-    connect_args={"check_same_thread": False}  # Needed for SQLite
-)
+# Create engine with appropriate configuration
+engine_kwargs = {
+    "echo": False,  # Set to True for SQL query logging
+}
+
+# SQLite-specific configuration
+if DATABASE_URL.startswith("sqlite"):
+    engine_kwargs["connect_args"] = {"check_same_thread": False}
+
+engine = create_engine(DATABASE_URL, **engine_kwargs)
 
 # Session factory
 SessionLocal = sessionmaker(autocommit=False, autoflush=False, bind=engine)
diff --git a/docker-compose.yml b/docker-compose.yml
new file mode 100644
index 0000000..b5add2b
--- /dev/null
+++ b/docker-compose.yml
@@ -0,0 +1,72 @@
+version: '3.8'
+
+services:
+  postgres:
+    image: postgres:16-alpine
+    container_name: yottob-postgres
+    environment:
+      POSTGRES_USER: ${POSTGRES_USER:-yottob}
+      POSTGRES_PASSWORD: ${POSTGRES_PASSWORD:-yottob_password}
+      POSTGRES_DB: ${POSTGRES_DB:-yottob}
+    ports:
+      - "5432:5432"
+    volumes:
+      - postgres_data:/var/lib/postgresql/data
+    healthcheck:
+      test: ["CMD-SHELL", "pg_isready -U ${POSTGRES_USER:-yottob}"]
+      interval: 5s
+      timeout: 5s
+      retries: 5
+
+  redis:
+    image: redis:7-alpine
+    container_name: yottob-redis
+    ports:
+      - "6379:6379"
+    healthcheck:
+      test: ["CMD", "redis-cli", "ping"]
+      interval: 5s
+      timeout: 3s
+      retries: 5
+
+  app:
+    build: .
+    container_name: yottob-app
+    command: flask --app main run --host=0.0.0.0 --port=5000
+    environment:
+      DATABASE_URL: postgresql://${POSTGRES_USER:-yottob}:${POSTGRES_PASSWORD:-yottob_password}@postgres:5432/${POSTGRES_DB:-yottob}
+      CELERY_BROKER_URL: redis://redis:6379/0
+      CELERY_RESULT_BACKEND: redis://redis:6379/0
+      FLASK_ENV: ${FLASK_ENV:-development}
+    ports:
+      - "5000:5000"
+    volumes:
+      - ./downloads:/app/downloads
+      - ./:/app
+    depends_on:
+      postgres:
+        condition: service_healthy
+      redis:
+        condition: service_healthy
+    restart: unless-stopped
+
+  celery:
+    build: .
+    container_name: yottob-celery
+    command: celery -A celery_app worker --loglevel=info
+    environment:
+      DATABASE_URL: postgresql://${POSTGRES_USER:-yottob}:${POSTGRES_PASSWORD:-yottob_password}@postgres:5432/${POSTGRES_DB:-yottob}
+      CELERY_BROKER_URL: redis://redis:6379/0
+      CELERY_RESULT_BACKEND: redis://redis:6379/0
+    volumes:
+      - ./downloads:/app/downloads
+      - ./:/app
+    depends_on:
+      postgres:
+        condition: service_healthy
+      redis:
+        condition: service_healthy
+    restart: unless-stopped
+
+volumes:
+  postgres_data:
diff --git a/pyproject.toml b/pyproject.toml
index 546956e..fe73982 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -9,6 +9,7 @@ dependencies = [
     "celery>=5.3.0",
     "feedparser>=6.0.12",
     "flask>=3.1.2",
+    "psycopg2-binary>=2.9.0",
     "redis>=5.0.0",
     "sqlalchemy>=2.0.0",
     "yt-dlp>=2024.0.0",
diff --git a/uv.lock b/uv.lock
index 3642d41..6207f19 100644
--- a/uv.lock
+++ b/uv.lock
@@ -268,6 +268,25 @@ wheels = [
     { url = "https://files.pythonhosted.org/packages/84/03/0d3ce49e2505ae70cf43bc5bb3033955d2fc9f932163e84dc0779cc47f48/prompt_toolkit-3.0.52-py3-none-any.whl", hash = "sha256:9aac639a3bbd33284347de5ad8d68ecc044b91a762dc39b7c21095fcd6a19955", size = 391431, upload-time = "2025-08-27T15:23:59.498Z" },
 ]
 
+[[package]]
+name = "psycopg2-binary"
+version = "2.9.11"
+source = { registry = "https://pypi.org/simple" }
+sdist = { url = "https://files.pythonhosted.org/packages/ac/6c/8767aaa597ba424643dc87348c6f1754dd9f48e80fdc1b9f7ca5c3a7c213/psycopg2-binary-2.9.11.tar.gz", hash = "sha256:b6aed9e096bf63f9e75edf2581aa9a7e7186d97ab5c177aa6c87797cd591236c", size = 379620, upload-time = "2025-10-10T11:14:48.041Z" }
+wheels = [
+    { url = "https://files.pythonhosted.org/packages/64/12/93ef0098590cf51d9732b4f139533732565704f45bdc1ffa741b7c95fb54/psycopg2_binary-2.9.11-cp314-cp314-macosx_10_13_x86_64.whl", hash = "sha256:92e3b669236327083a2e33ccfa0d320dd01b9803b3e14dd986a4fc54aa00f4e1", size = 3756567, upload-time = "2025-10-10T11:13:11.885Z" },
+    { url = "https://files.pythonhosted.org/packages/7c/a9/9d55c614a891288f15ca4b5209b09f0f01e3124056924e17b81b9fa054cc/psycopg2_binary-2.9.11-cp314-cp314-macosx_11_0_arm64.whl", hash = "sha256:e0deeb03da539fa3577fcb0b3f2554a97f7e5477c246098dbb18091a4a01c16f", size = 3864755, upload-time = "2025-10-10T11:13:17.727Z" },
+    { url = "https://files.pythonhosted.org/packages/13/1e/98874ce72fd29cbde93209977b196a2edae03f8490d1bd8158e7f1daf3a0/psycopg2_binary-2.9.11-cp314-cp314-manylinux2014_aarch64.manylinux_2_17_aarch64.whl", hash = "sha256:9b52a3f9bb540a3e4ec0f6ba6d31339727b2950c9772850d6545b7eae0b9d7c5", size = 4411646, upload-time = "2025-10-10T11:13:24.432Z" },
+    { url = "https://files.pythonhosted.org/packages/5a/bd/a335ce6645334fb8d758cc358810defca14a1d19ffbc8a10bd38a2328565/psycopg2_binary-2.9.11-cp314-cp314-manylinux2014_ppc64le.manylinux_2_17_ppc64le.whl", hash = "sha256:db4fd476874ccfdbb630a54426964959e58da4c61c9feba73e6094d51303d7d8", size = 4468701, upload-time = "2025-10-10T11:13:29.266Z" },
+    { url = "https://files.pythonhosted.org/packages/44/d6/c8b4f53f34e295e45709b7568bf9b9407a612ea30387d35eb9fa84f269b4/psycopg2_binary-2.9.11-cp314-cp314-manylinux2014_x86_64.manylinux_2_17_x86_64.whl", hash = "sha256:47f212c1d3be608a12937cc131bd85502954398aaa1320cb4c14421a0ffccf4c", size = 4166293, upload-time = "2025-10-10T11:13:33.336Z" },
+    { url = "https://files.pythonhosted.org/packages/4b/e0/f8cc36eadd1b716ab36bb290618a3292e009867e5c97ce4aba908cb99644/psycopg2_binary-2.9.11-cp314-cp314-manylinux_2_38_riscv64.manylinux_2_39_riscv64.whl", hash = "sha256:e35b7abae2b0adab776add56111df1735ccc71406e56203515e228a8dc07089f", size = 3983184, upload-time = "2025-10-30T02:55:32.483Z" },
+    { url = "https://files.pythonhosted.org/packages/53/3e/2a8fe18a4e61cfb3417da67b6318e12691772c0696d79434184a511906dc/psycopg2_binary-2.9.11-cp314-cp314-musllinux_1_2_aarch64.whl", hash = "sha256:fcf21be3ce5f5659daefd2b3b3b6e4727b028221ddc94e6c1523425579664747", size = 3652650, upload-time = "2025-10-10T11:13:38.181Z" },
+    { url = "https://files.pythonhosted.org/packages/76/36/03801461b31b29fe58d228c24388f999fe814dfc302856e0d17f97d7c54d/psycopg2_binary-2.9.11-cp314-cp314-musllinux_1_2_ppc64le.whl", hash = "sha256:9bd81e64e8de111237737b29d68039b9c813bdf520156af36d26819c9a979e5f", size = 3298663, upload-time = "2025-10-10T11:13:44.878Z" },
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+    { url = "https://files.pythonhosted.org/packages/67/69/f36abe5f118c1dca6d3726ceae164b9356985805480731ac6712a63f24f0/psycopg2_binary-2.9.11-cp314-cp314-musllinux_1_2_x86_64.whl", hash = "sha256:c3cb3a676873d7506825221045bd70e0427c905b9c8ee8d6acd70cfcbd6e576d", size = 3347643, upload-time = "2025-10-10T11:13:53.499Z" },
+    { url = "https://files.pythonhosted.org/packages/e1/36/9c0c326fe3a4227953dfb29f5d0c8ae3b8eb8c1cd2967aa569f50cb3c61f/psycopg2_binary-2.9.11-cp314-cp314-win_amd64.whl", hash = "sha256:4012c9c954dfaccd28f94e84ab9f94e12df76b4afb22331b1f0d3154893a6316", size = 2803913, upload-time = "2025-10-10T11:13:57.058Z" },
+]
+
 [[package]]
 name = "python-dateutil"
 version = "2.9.0.post0"
@@ -374,6 +393,7 @@ dependencies = [
     { name = "celery" },
     { name = "feedparser" },
     { name = "flask" },
+    { name = "psycopg2-binary" },
     { name = "redis" },
     { name = "sqlalchemy" },
     { name = "yt-dlp" },
@@ -385,6 +405,7 @@ requires-dist = [
     { name = "celery", specifier = ">=5.3.0" },
     { name = "feedparser", specifier = ">=6.0.12" },
     { name = "flask", specifier = ">=3.1.2" },
+    { name = "psycopg2-binary", specifier = ">=2.9.0" },
     { name = "redis", specifier = ">=5.0.0" },
     { name = "sqlalchemy", specifier = ">=2.0.0" },
     { name = "yt-dlp", specifier = ">=2024.0.0" },