diff --git a/.env.example b/.env.example
index 8df49676..bb33262e 100644
--- a/.env.example
+++ b/.env.example
@@ -30,6 +30,7 @@ POSTGRES_PORT=5432
 POSTGRES_DB=ai_platform
 POSTGRES_USER=postgres
 POSTGRES_PASSWORD=postgres
+POSTGRES_DB_TEST=ai_platform_test
 
 SENTRY_DSN=
 
diff --git a/.github/workflows/continuous_integration.yml b/.github/workflows/continuous_integration.yml
index 5b40cdd3..e6373ac4 100644
--- a/.github/workflows/continuous_integration.yml
+++ b/.github/workflows/continuous_integration.yml
@@ -18,7 +18,11 @@ jobs:
           POSTGRES_DB: ai_platform
         ports:
           - 5432:5432
-        options: --health-cmd "pg_isready -U postgres" --health-interval 10s --health-timeout 5s --health-retries 5
+        options: >-
+          --health-cmd "pg_isready -U postgres"
+          --health-interval 10s
+          --health-timeout 5s
+          --health-retries 5
 
     strategy:
       matrix:
diff --git a/backend/app/core/config.py b/backend/app/core/config.py
index 24779bf3..32009e0d 100644
--- a/backend/app/core/config.py
+++ b/backend/app/core/config.py
@@ -47,6 +47,7 @@ class Settings(BaseSettings):
     POSTGRES_USER: str
     POSTGRES_PASSWORD: str = ""
     POSTGRES_DB: str = ""
+    POSTGRES_DB_TEST: str | None = None
 
     @computed_field  # type: ignore[prop-decorator]
     @property
@@ -60,6 +61,22 @@ def SQLALCHEMY_DATABASE_URI(self) -> PostgresDsn:
             path=self.POSTGRES_DB,
         )
 
+    @computed_field  # type: ignore[prop-decorator]
+    @property
+    def SQLALCHEMY_TEST_DATABASE_URI(self) -> PostgresDsn:
+        if not self.POSTGRES_DB_TEST:
+            raise ValueError(
+                "POSTGRES_DB_TEST is not set but is required for test configuration."
+            )
+        return MultiHostUrl.build(
+            scheme="postgresql+psycopg",
+            username=self.POSTGRES_USER,
+            password=self.POSTGRES_PASSWORD,
+            host=self.POSTGRES_SERVER,
+            port=self.POSTGRES_PORT,
+            path=self.POSTGRES_DB_TEST,
+        )
+
     EMAIL_RESET_TOKEN_EXPIRE_HOURS: int = 48
     EMAIL_TEST_USER: EmailStr
 
diff --git a/backend/app/tests/conftest.py b/backend/app/tests/conftest.py
index e2a6464d..f33ae916 100644
--- a/backend/app/tests/conftest.py
+++ b/backend/app/tests/conftest.py
@@ -2,42 +2,59 @@
 
 import pytest
 from fastapi.testclient import TestClient
-from sqlmodel import Session, delete
+from sqlmodel import Session, SQLModel, create_engine, text
 
 from app.core.config import settings
 from app.core.db import engine, init_db
 from app.main import app
-from app.models import (
-    APIKey,
-    Assistant,
-    Organization,
-    Project,
-    ProjectUser,
-    User,
-    OpenAI_Thread,
-    Credential,
-    Collection,
-)
+from app.api.deps import get_db
 from app.tests.utils.user import authentication_token_from_email
 from app.tests.utils.utils import get_superuser_token_headers
 
 
+def recreate_test_db():
+    test_db_name = settings.POSTGRES_DB_TEST
+    if test_db_name is None:
+        raise ValueError(
+            "POSTGRES_DB_TEST is not set but is required for test configuration."
+        )
+    with engine.connect() as conn:
+        conn.execution_options(isolation_level="AUTOCOMMIT")
+        # Disconnect other connections to the test DB
+        conn.execute(
+            text(
+                f"""
+            SELECT pg_terminate_backend(pid)
+            FROM pg_stat_activity
+            WHERE datname = '{test_db_name}' AND pid <> pg_backend_pid()
+        """
+            )
+        )
+        conn.execute(text(f"DROP DATABASE IF EXISTS {test_db_name}"))
+        conn.execute(text(f"CREATE DATABASE {test_db_name}"))
+
+
+recreate_test_db()
+test_engine = create_engine(str(settings.SQLALCHEMY_TEST_DATABASE_URI))
+
+
 @pytest.fixture(scope="session", autouse=True)
 def db() -> Generator[Session, None, None]:
-    with Session(engine) as session:
+    with Session(test_engine) as session:
+        SQLModel.metadata.create_all(test_engine)
         init_db(session)
         yield session
-        # Delete data in reverse dependency order
-        session.execute(delete(ProjectUser))  # Many-to-many relationship
-        session.execute(delete(Assistant))
-        session.execute(delete(Credential))
-        session.execute(delete(Project))
-        session.execute(delete(Organization))
-        session.execute(delete(APIKey))
-        session.execute(delete(User))
-        session.execute(delete(OpenAI_Thread))
-        session.execute(delete(Collection))
-        session.commit()
+
+
+# Override the get_db dependency to use test session
+@pytest.fixture(scope="session", autouse=True)
+def override_get_db(db: Session):
+    def _get_test_db():
+        yield db
+
+    app.dependency_overrides[get_db] = _get_test_db
+    yield
+    app.dependency_overrides.clear()
 
 
 @pytest.fixture(scope="module")
diff --git a/docker-compose.yml b/docker-compose.yml
index ec6e9deb..abe7e21d 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -69,6 +69,7 @@ services:
       - POSTGRES_SERVER=db
       - POSTGRES_PORT=${POSTGRES_PORT}
       - POSTGRES_DB=${POSTGRES_DB}
+      - POSTGRES_DB_TEST=${POSTGRES_DB_TEST}
       - POSTGRES_USER=${POSTGRES_USER?Variable not set}
       - POSTGRES_PASSWORD=${POSTGRES_PASSWORD?Variable not set}
       - SENTRY_DSN=${SENTRY_DSN}
@@ -108,6 +109,7 @@ services:
       - POSTGRES_SERVER=db
       - POSTGRES_PORT=${POSTGRES_PORT}
       - POSTGRES_DB=${POSTGRES_DB}
+      - POSTGRES_DB_TEST=${POSTGRES_DB_TEST}
       - POSTGRES_USER=${POSTGRES_USER?Variable not set}
       - POSTGRES_PASSWORD=${POSTGRES_PASSWORD?Variable not set}
       - SENTRY_DSN=${SENTRY_DSN}