diff --git a/cli/src/commands/init.rs b/cli/src/commands/init.rs
index 86078edaf..47f749a68 100644
--- a/cli/src/commands/init.rs
+++ b/cli/src/commands/init.rs
@@ -117,12 +117,15 @@ pub async fn init(destination_path: Option<&str>) -> Result<()> {
         DatabaseType::Redshift => {
             setup_redshift(buster_creds.url, buster_creds.api_key, &config_path).await
         }
+        DatabaseType::Postgres => {
+            setup_postgres(buster_creds.url, buster_creds.api_key, &config_path).await
+        }
         _ => {
             println!(
                 "{}",
                 format!("{} support is coming soon!", db_type).yellow()
             );
-            println!("Currently, only Redshift is supported.");
+            println!("Currently, only Redshift and Postgres are supported.");
             Err(anyhow::anyhow!("Database type not yet implemented"))
         }
     }
@@ -332,6 +335,195 @@ async fn setup_redshift(
     }
 }
 
+async fn setup_postgres(
+    buster_url: String,
+    buster_api_key: String,
+    config_path: &Path,
+) -> Result<()> {
+    println!("{}", "Setting up PostgreSQL connection...".bold().green());
+
+    // Collect name (with validation)
+    let name_regex = Regex::new(r"^[a-zA-Z0-9_-]+$")?;
+    let name = Text::new("Enter a unique name for this data source:")
+        .with_help_message("Only alphanumeric characters, dash (-) and underscore (_) allowed")
+        .with_validator(move |input: &str| {
+            if input.trim().is_empty() {
+                return Ok(Validation::Invalid("Name cannot be empty".into()));
+            }
+            if name_regex.is_match(input) {
+                Ok(Validation::Valid)
+            } else {
+                Ok(Validation::Invalid(
+                    "Name must contain only alphanumeric characters, dash (-) or underscore (_)"
+                        .into(),
+                ))
+            }
+        })
+        .prompt()?;
+
+    // Collect host
+    let host = Text::new("Enter the PostgreSQL host:")
+        .with_help_message("Example: localhost or db.example.com")
+        .with_validator(|input: &str| {
+            if input.trim().is_empty() {
+                return Ok(Validation::Invalid("Host cannot be empty".into()));
+            }
+            Ok(Validation::Valid)
+        })
+        .prompt()?;
+
+    // Collect port (with validation)
+    let port_str = Text::new("Enter the PostgreSQL port:")
+        .with_default("5432")  // Default Postgres port is 5432
+        .with_help_message("Default PostgreSQL port is 5432")
+        .with_validator(|input: &str| match input.parse::<u16>() {
+            Ok(_) => Ok(Validation::Valid),
+            Err(_) => Ok(Validation::Invalid(
+                "Port must be a valid number between 1 and 65535".into(),
+            )),
+        })
+        .prompt()?;
+    let port = port_str.parse::<u16>()?;
+
+    // Collect username
+    let username = Text::new("Enter the PostgreSQL username:")
+        .with_validator(|input: &str| {
+            if input.trim().is_empty() {
+                return Ok(Validation::Invalid("Username cannot be empty".into()));
+            }
+            Ok(Validation::Valid)
+        })
+        .prompt()?;
+
+    // Collect password (masked)
+    let password = Password::new("Enter the PostgreSQL password:")
+        .with_validator(|input: &str| {
+            if input.trim().is_empty() {
+                return Ok(Validation::Invalid("Password cannot be empty".into()));
+            }
+            Ok(Validation::Valid)
+        })
+        .without_confirmation()
+        .prompt()?;
+
+    // Collect database (optional)
+    let database = Text::new("Enter the PostgreSQL database name (optional):")
+        .with_help_message("Leave blank to access all available databases")
+        .prompt()?;
+    let database = if database.trim().is_empty() {
+        None
+    } else {
+        Some(database)
+    };
+
+    // Collect schema (optional)
+    let schema = Text::new("Enter the PostgreSQL schema (optional):")
+        .with_help_message("Leave blank to access all available schemas")
+        .with_default("public")  // Default Postgres schema is usually 'public'
+        .prompt()?;
+    let schema = if schema.trim().is_empty() {
+        None
+    } else {
+        Some(schema)
+    };
+
+    // Show summary and confirm
+    println!("\n{}", "Connection Summary:".bold());
+    println!("Name: {}", name.cyan());
+    println!("Host: {}", host.cyan());
+    println!("Port: {}", port.to_string().cyan());
+    println!("Username: {}", username.cyan());
+    println!("Password: {}", "********".cyan());
+
+    // Display database and schema with clear indication if they're empty
+    if let Some(db) = &database {
+        println!("Database: {}", db.cyan());
+    } else {
+        println!("Database: {}", "All databases (null)".cyan());
+    }
+
+    if let Some(sch) = &schema {
+        println!("Schema: {}", sch.cyan());
+    } else {
+        println!("Schema: {}", "All schemas (null)".cyan());
+    }
+
+    let confirm = Confirm::new("Do you want to create this data source?")
+        .with_default(true)
+        .prompt()?;
+
+    if !confirm {
+        println!("{}", "Data source creation cancelled.".yellow());
+        return Ok(());
+    }
+
+    // Create API request
+    let request = PostDataSourcesRequest {
+        name: name.clone(),
+        env: "dev".to_string(), // Default to dev environment
+        credential: Credential::Postgres(PostgresCredentials {
+            host,
+            port,
+            username,
+            password,
+            database: database.clone().unwrap_or_default(),
+            schema: schema.clone().unwrap_or_default(),
+            jump_host: None,
+            ssh_username: None,
+            ssh_private_key: None,
+        }),
+    };
+
+    // Send to API with progress indicator
+    let spinner = ProgressBar::new_spinner();
+    spinner.set_style(
+        ProgressStyle::default_spinner()
+            .tick_chars("⠁⠂⠄⡀⢀⠠⠐⠈ ")
+            .template("{spinner:.green} {msg}")
+            .unwrap(),
+    );
+    spinner.set_message("Sending credentials to Buster API...");
+    spinner.enable_steady_tick(Duration::from_millis(100));
+
+    let client = BusterClient::new(buster_url, buster_api_key)?;
+
+    match client.post_data_sources(vec![request]).await {
+        Ok(_) => {
+            spinner.finish_with_message(
+                "✓ Data source created successfully!"
+                    .green()
+                    .bold()
+                    .to_string(),
+            );
+            println!(
+                "\nData source '{}' is now available for use with Buster.",
+                name.cyan()
+            );
+
+            // Create a copy of the values we need for the config file
+            let db_copy = database.clone();
+            let schema_copy = schema.clone();
+
+            // Create buster.yml file
+            create_buster_config_file(
+                config_path,
+                &name,
+                db_copy.as_deref(),
+                schema_copy.as_deref(),
+            )?;
+
+            println!("You can now use this data source with other Buster commands.");
+            Ok(())
+        }
+        Err(e) => {
+            spinner.finish_with_message("✗ Failed to create data source".red().bold().to_string());
+            println!("\nError: {}", e);
+            println!("Please check your credentials and try again.");
+            Err(anyhow::anyhow!("Failed to create data source: {}", e))
+        }
+    }
+}
+
 // Helper function to create buster.yml file
 fn create_buster_config_file(
     path: &Path,