diff --git a/.devcontainer/devcontainer.json b/.devcontainer/devcontainer.json
index a70ba3788..d2dac356b 100644
--- a/.devcontainer/devcontainer.json
+++ b/.devcontainer/devcontainer.json
@@ -25,7 +25,7 @@
   // 1025,8025 mailhog
   "forwardPorts": [8025, 3000, 3035],
 
-  "postCreateCommand": ".devcontainer/scripts/setup.sh && bundle exec rake db:chatwoot_prepare && yarn",
+  "postCreateCommand": ".devcontainer/scripts/setup.sh && POSTGRES_STATEMENT_TIMEOUT=600s bundle exec rake db:chatwoot_prepare && yarn",
   "portsAttributes": {
     "3000": {
       "label": "Rails Server"
diff --git a/.env.example b/.env.example
index 39d5c06ec..4eee95bcb 100644
--- a/.env.example
+++ b/.env.example
@@ -52,6 +52,8 @@ POSTGRES_HOST=postgres
 POSTGRES_USERNAME=postgres
 POSTGRES_PASSWORD=
 RAILS_ENV=development
+# Changes the Postgres query timeout limit. The default is 14 seconds. Modify only when required.
+# POSTGRES_STATEMENT_TIMEOUT=14s
 RAILS_MAX_THREADS=5
 
 # The email from which all outgoing emails are sent
diff --git a/Procfile b/Procfile
index 01bfd1c1f..7eff0580d 100644
--- a/Procfile
+++ b/Procfile
@@ -1,3 +1,3 @@
-release: bundle exec rails db:chatwoot_prepare
+release: POSTGRES_STATEMENT_TIMEOUT=600s bundle exec rails db:chatwoot_prepare
 web: bin/rails server -p $PORT -e $RAILS_ENV
 worker: bundle exec sidekiq -C config/sidekiq.yml
diff --git a/bin/update b/bin/update
index 58bfaed51..2f63af40f 100755
--- a/bin/update
+++ b/bin/update
@@ -21,7 +21,7 @@ chdir APP_ROOT do
   # system('bin/yarn')
 
   puts "\n== Updating database =="
-  system! 'bin/rails db:migrate'
+  system! 'POSTGRES_STATEMENT_TIMEOUT=600s bin/rails db:migrate'
 
   puts "\n== Removing old logs and tempfiles =="
   system! 'bin/rails log:clear tmp:clear'
diff --git a/config/database.yml b/config/database.yml
index d7ee67e56..1001eedd7 100644
--- a/config/database.yml
+++ b/config/database.yml
@@ -5,7 +5,10 @@ default: &default
   port: <%= ENV.fetch('POSTGRES_PORT', '5432') %>
    # ref: https://github.com/mperham/sidekiq/issues/2985#issuecomment-531097962
   pool: <%= Sidekiq.server? ? Sidekiq.options[:concurrency] : ENV.fetch('RAILS_MAX_THREADS', 5) %>
-
+  variables:
+    # we are setting this value to be close to the racktimeout value. we will iterate and reduce this value going forward
+    statement_timeout: <%= ENV["POSTGRES_STATEMENT_TIMEOUT"] || "14s" %>
+    
 development:
   <<: *default
   database: <%= ENV.fetch('POSTGRES_DATABASE', 'chatwoot_dev') %>
diff --git a/deployment/setup_20.04.sh b/deployment/setup_20.04.sh
index 82f4aca40..d10a6e789 100644
--- a/deployment/setup_20.04.sh
+++ b/deployment/setup_20.04.sh
@@ -362,7 +362,7 @@ EOF
 function run_db_migrations(){
   sudo -i -u chatwoot << EOF
   cd chatwoot
-  RAILS_ENV=production bundle exec rails db:chatwoot_prepare
+  RAILS_ENV=production POSTGRES_STATEMENT_TIMEOUT=600s bundle exec rails db:chatwoot_prepare
 EOF
 }
 
@@ -574,7 +574,7 @@ The database migrations had not run as Postgres and Redis were not installed
 as part of the installation process. After modifying the environment
 variables (in the .env file) with your external database credentials, run
 the database migrations using the below command.
-'RAILS_ENV=production bundle exec rails db:chatwoot_prepare'.
+'RAILS_ENV=production POSTGRES_STATEMENT_TIMEOUT=600s bundle exec rails db:chatwoot_prepare'.
 ***************************************************************************
 
 EOF
@@ -744,7 +744,7 @@ function upgrade() {
   rake assets:precompile RAILS_ENV=production
 
   # Migrate the database schema
-  RAILS_ENV=production bundle exec rake db:migrate
+  RAILS_ENV=production POSTGRES_STATEMENT_TIMEOUT=600s bundle exec rake db:migrate
 
 EOF