diff --git a/CLAUDE.md b/CLAUDE.md
index 5401728..d31c8f0 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -10,9 +10,10 @@ This file provides guidance to Claude Code (claude.ai/code) when working with co
 
 **Key Features**:
 - **Flexible Project Creation**: Import from GitHub repositories or create new projects from scratch
+- **Optional Database**: Add PostgreSQL database on-demand when needed
 - **AI Agent Ecosystem**: AI agents handle development, testing, deployment, and infrastructure management
 - **Automated Operations**: Deployment, scaling, and infrastructure management happen automatically in the background
-- **Full-Stack Development**: Complete environment with database, terminal, and file management
+- **Full-Stack Development**: Complete environment with optional database, terminal, and file management
 - **Zero Infrastructure Knowledge Required**: Users don't need to understand Kubernetes, networking, or DevOps
 
 **Architecture**: The platform uses an **asynchronous reconciliation pattern** where API endpoints return immediately and background jobs sync desired state (database) with actual state (Kubernetes) every 3 seconds.
@@ -158,6 +159,10 @@ npx prisma db push    # Push schema to database
 - `lib/k8s/k8s-service-helper.ts` - User-specific K8s service
 - `lib/events/sandbox/sandboxListener.ts` - Sandbox lifecycle handlers
 - `lib/jobs/sandbox/sandboxReconcile.ts` - Sandbox reconciliation job
+- `lib/events/database/databaseListener.ts` - Database lifecycle handlers
+- `lib/jobs/database/databaseReconcile.ts` - Database reconciliation job
+- `lib/actions/project.ts` - Project creation (creates Sandbox only)
+- `lib/actions/database.ts` - Database creation/deletion (on-demand)
 - `prisma/schema.prisma` - Database schema
 - `instrumentation.ts` - Application startup
 
@@ -181,10 +186,11 @@ npx prisma db push    # Push schema to database
 
 ## Important Notes
 
+- **Project Resources**: Each project includes a Sandbox (required) and can optionally have a Database (PostgreSQL). Database can be added on-demand after project creation.
 - **Reconciliation Delay**: Status updates may take up to 3 seconds
 - **User-Specific Namespaces**: Each user operates in their own K8s namespace
 - **Frontend Polling**: Client components poll every 3 seconds for status updates
-- **Database Wait Time**: PostgreSQL cluster takes 2-3 minutes to reach "Running"
+- **Database Wait Time**: PostgreSQL cluster takes 2-3 minutes to reach "Running" (when added)
 - **Idempotent Operations**: All K8s methods can be called multiple times safely
 - **Lock Duration**: Optimistic locks held for 30 seconds
 - **Deployment Domain**: Main app listens on `0.0.0.0:3000` (not localhost) for Sealos
diff --git a/app/(dashboard)/projects/[id]/database/_components/add-database-card.tsx b/app/(dashboard)/projects/[id]/database/_components/add-database-card.tsx
new file mode 100644
index 0000000..e80046f
--- /dev/null
+++ b/app/(dashboard)/projects/[id]/database/_components/add-database-card.tsx
@@ -0,0 +1,56 @@
+'use client'
+
+import { useTransition } from 'react'
+import { useRouter } from 'next/navigation'
+import { toast } from 'sonner'
+
+import { Button } from '@/components/ui/button'
+import { Card, CardContent, CardDescription, CardHeader, CardTitle } from '@/components/ui/card'
+import { createDatabase } from '@/lib/actions/database'
+
+interface AddDatabaseCardProps {
+  projectId: string
+  projectName: string
+}
+
+export function AddDatabaseCard({ projectId }: AddDatabaseCardProps) {
+  const router = useRouter()
+  const [isPending, startTransition] = useTransition()
+
+  const handleCreateDatabase = () => {
+    startTransition(async () => {
+      const result = await createDatabase(projectId)
+
+      if (!result.success) {
+        toast.error(result.error || 'Failed to create database')
+        return
+      }
+
+      toast.success('Database is being created...')
+      router.refresh()
+    })
+  }
+
+  return (
+    <Card>
+      <CardHeader>
+        <CardTitle>No Database</CardTitle>
+        <CardDescription>
+          This project doesn&apos;t have a database yet. Add a PostgreSQL database to get started.
+        </CardDescription>
+      </CardHeader>
+      <CardContent>
+        <Button
+          onClick={handleCreateDatabase}
+          disabled={isPending}
+          className="w-full"
+        >
+          {isPending ? 'Creating Database...' : 'Add PostgreSQL Database'}
+        </Button>
+        <p className="text-xs text-muted-foreground mt-4">
+          A PostgreSQL cluster will be created with 1Gi storage, 100m CPU, and 128Mi memory.
+        </p>
+      </CardContent>
+    </Card>
+  )
+}
diff --git a/app/(dashboard)/projects/[id]/database/page.tsx b/app/(dashboard)/projects/[id]/database/page.tsx
index edc13f4..dad82bd 100644
--- a/app/(dashboard)/projects/[id]/database/page.tsx
+++ b/app/(dashboard)/projects/[id]/database/page.tsx
@@ -6,6 +6,7 @@ import { getProject } from '@/lib/data/project';
 
 import { SettingsLayout } from '../_components/settings-layout';
 
+import { AddDatabaseCard } from './_components/add-database-card';
 import { ConnectionString } from './_components/connection-string';
 import { FeatureCards } from './_components/feature-cards';
 import { ReadOnlyField } from './_components/read-only-field';
@@ -28,7 +29,17 @@ export default async function DatabasePage({ params }: { params: Promise<{ id: s
   if (!project) notFound();
 
   const database = project.databases[0];
-  const connectionString = database?.connectionUrl || '';
+
+  // If no database exists, show "Add Database" card
+  if (!database) {
+    return (
+      <SettingsLayout title="Database Information" description="Add a PostgreSQL database to your project">
+        <AddDatabaseCard projectId={project.id} projectName={project.name} />
+      </SettingsLayout>
+    );
+  }
+
+  const connectionString = database.connectionUrl || '';
   const connectionInfo = parseConnectionUrl(connectionString) || {
     host: '', port: '', database: '', username: '', password: ''
   };
@@ -57,9 +68,9 @@ export default async function DatabasePage({ params }: { params: Promise<{ id: s
         </>
       ) : (
         <div className="py-12 text-center">
-          <p className="text-sm text-muted-foreground">No database configured</p>
+          <p className="text-sm text-muted-foreground">Database is being created...</p>
           <p className="text-xs text-muted-foreground mt-1">
-            Database will be automatically provisioned when sandbox is created
+            Connection details will appear once the database is ready
           </p>
         </div>
       )}
diff --git a/app/api/projects/route.ts b/app/api/projects/route.ts
index 48f677e..e118c56 100644
--- a/app/api/projects/route.ts
+++ b/app/api/projects/route.ts
@@ -196,10 +196,9 @@ export const POST = withAuth<PostProjectResponse>(async (req, _context, session)
   const ttydAuthToken = generateRandomString(24) // 24 chars = ~143 bits entropy for terminal auth
   const fileBrowserUsername = `fb-${randomSuffix}` // filebrowser username
   const fileBrowserPassword = generateRandomString(16) // 16 char random password
-  const databaseName = `${k8sProjectName}-${randomSuffix}`
   const sandboxName = `${k8sProjectName}-${randomSuffix}`
 
-  // Create project with database and sandbox in a transaction
+  // Create project with sandbox in a transaction
   const result = await prisma.$transaction(async (tx) => {
     // 1. Create Project with status CREATING
     const project = await tx.project.create({
@@ -211,25 +210,7 @@ export const POST = withAuth<PostProjectResponse>(async (req, _context, session)
       },
     })
 
-    // 2. Create Database record - lockedUntil is null so reconcile job can process immediately
-    const database = await tx.database.create({
-      data: {
-        projectId: project.id,
-        name: databaseName,
-        k8sNamespace: namespace,
-        databaseName: databaseName,
-        status: 'CREATING',
-        lockedUntil: null, // Unlocked - ready for reconcile job to process
-        // Resource configuration from versions
-        storageSize: VERSIONS.STORAGE.DATABASE_SIZE,
-        cpuRequest: VERSIONS.RESOURCES.DATABASE.requests.cpu,
-        cpuLimit: VERSIONS.RESOURCES.DATABASE.limits.cpu,
-        memoryRequest: VERSIONS.RESOURCES.DATABASE.requests.memory,
-        memoryLimit: VERSIONS.RESOURCES.DATABASE.limits.memory,
-      },
-    })
-
-    // 3. Create Sandbox record - lockedUntil is null so reconcile job can process immediately
+    // 2. Create Sandbox record - lockedUntil is null so reconcile job can process immediately
     const sandbox = await tx.sandbox.create({
       data: {
         projectId: project.id,
@@ -247,7 +228,7 @@ export const POST = withAuth<PostProjectResponse>(async (req, _context, session)
       },
     })
 
-    // 4. Create Environment record for ttyd access token
+    // 3. Create Environment record for ttyd access token
     const ttydEnv = await tx.environment.create({
       data: {
         projectId: project.id,
@@ -258,7 +239,7 @@ export const POST = withAuth<PostProjectResponse>(async (req, _context, session)
       },
     })
 
-    // 5. Create Environment records for filebrowser credentials
+    // 4. Create Environment records for filebrowser credentials
     const fileBrowserUsernameEnv = await tx.environment.create({
       data: {
         projectId: project.id,
@@ -281,7 +262,6 @@ export const POST = withAuth<PostProjectResponse>(async (req, _context, session)
 
     return {
       project,
-      database,
       sandbox,
       ttydEnv,
       fileBrowserUsernameEnv,
@@ -292,7 +272,7 @@ export const POST = withAuth<PostProjectResponse>(async (req, _context, session)
   })
 
   logger.info(
-    `Project created: ${result.project.id} with database: ${result.database.id}, sandbox: ${result.sandbox.id}, ttyd env: ${result.ttydEnv.id}, filebrowser username env: ${result.fileBrowserUsernameEnv.id}, filebrowser password env: ${result.fileBrowserPasswordEnv.id}`
+    `Project created: ${result.project.id} with sandbox: ${result.sandbox.id}, ttyd env: ${result.ttydEnv.id}, filebrowser username env: ${result.fileBrowserUsernameEnv.id}, filebrowser password env: ${result.fileBrowserPasswordEnv.id}`
   )
 
   return NextResponse.json(result.project)
diff --git a/components/layout/status-bar.tsx b/components/layout/status-bar.tsx
index 8afdd08..5bcaaf5 100644
--- a/components/layout/status-bar.tsx
+++ b/components/layout/status-bar.tsx
@@ -14,7 +14,6 @@ export function StatusBar({ projectId }: StatusBarProps) {
   const { data: project } = useProject(projectId);
   
   const database = project?.databases?.[0];
-  const dbStatus = database?.status || 'CREATING';
   const sandbox = project?.sandboxes?.[0];
   const sbStatus = sandbox?.status || 'CREATING';
 
@@ -35,10 +34,17 @@ export function StatusBar({ projectId }: StatusBarProps) {
           <span>Sandbox: {sbStatus}</span>
         </div>
         <div className="w-px h-3 bg-card-foreground/60 mx-1" />
-        <div className="flex items-center gap-1.5 px-1 rounded cursor-pointer transition-colors">
-          <div className={`w-2 h-2 rounded-full shadow-[0_0_1px_0.5px_currentColor] ${getStatusBgColor(dbStatus)}`} />
-          <span>Database: {dbStatus}</span>
-        </div>
+        {database ? (
+          <div className="flex items-center gap-1.5 px-1 rounded cursor-pointer transition-colors">
+            <div className={`w-2 h-2 rounded-full shadow-[0_0_1px_0.5px_currentColor] ${getStatusBgColor(database.status)}`} />
+            <span>Database: {database.status}</span>
+          </div>
+        ) : (
+          <div className="flex items-center gap-1.5 px-1 rounded cursor-pointer transition-colors opacity-60">
+            <div className="w-2 h-2 rounded-full bg-muted-foreground/40" />
+            <span>Database: Not Configured</span>
+          </div>
+        )}
       </div>
     </div>
   );
diff --git a/lib/actions/database.ts b/lib/actions/database.ts
new file mode 100644
index 0000000..0a0079c
--- /dev/null
+++ b/lib/actions/database.ts
@@ -0,0 +1,137 @@
+'use server'
+
+/**
+ * Database Server Actions
+ *
+ * Server Actions for database operations. Frontend components call these
+ * to create and delete databases on-demand.
+ */
+
+import type { Database } from '@prisma/client'
+
+import { auth } from '@/lib/auth'
+import { prisma } from '@/lib/db'
+import { getK8sServiceForUser } from '@/lib/k8s/k8s-service-helper'
+import { KubernetesUtils } from '@/lib/k8s/kubernetes-utils'
+import { VERSIONS } from '@/lib/k8s/versions'
+import { logger as baseLogger } from '@/lib/logger'
+
+import type { ActionResult } from './types'
+
+const logger = baseLogger.child({ module: 'actions/database' })
+
+/**
+ * Create a database for an existing project
+ *
+ * @param projectId - Project ID
+ * @param databaseName - Optional custom database name (auto-generated if not provided)
+ */
+export async function createDatabase(
+  projectId: string,
+  databaseName?: string
+): Promise<ActionResult<Database>> {
+  const session = await auth()
+  if (!session) {
+    return { success: false, error: 'Unauthorized' }
+  }
+
+  // Verify project exists and belongs to user
+  const project = await prisma.project.findUnique({
+    where: { id: projectId },
+    include: { databases: true },
+  })
+
+  if (!project) {
+    return { success: false, error: 'Project not found' }
+  }
+
+  if (project.userId !== session.user.id) {
+    return { success: false, error: 'Unauthorized' }
+  }
+
+  // Check if database already exists
+  if (project.databases.length > 0) {
+    return { success: false, error: 'Database already exists for this project' }
+  }
+
+  // Get K8s service for user
+  let k8sService
+  let namespace
+  try {
+    k8sService = await getK8sServiceForUser(session.user.id)
+    namespace = k8sService.getDefaultNamespace()
+  } catch (error) {
+    if (error instanceof Error && error.message.includes('does not have KUBECONFIG configured')) {
+      return {
+        success: false,
+        error: 'Please configure your kubeconfig before creating a database',
+      }
+    }
+    throw error
+  }
+
+  // Generate database name if not provided
+  const k8sProjectName = KubernetesUtils.toK8sProjectName(project.name)
+  const randomSuffix = KubernetesUtils.generateRandomString()
+  const finalDatabaseName = databaseName || `${k8sProjectName}-db-${randomSuffix}`
+
+  // Create Database record
+  const database = await prisma.database.create({
+    data: {
+      projectId: project.id,
+      name: finalDatabaseName,
+      k8sNamespace: namespace,
+      databaseName: finalDatabaseName,
+      status: 'CREATING',
+      lockedUntil: null,
+      storageSize: VERSIONS.STORAGE.DATABASE_SIZE,
+      cpuRequest: VERSIONS.RESOURCES.DATABASE.requests.cpu,
+      cpuLimit: VERSIONS.RESOURCES.DATABASE.limits.cpu,
+      memoryRequest: VERSIONS.RESOURCES.DATABASE.requests.memory,
+      memoryLimit: VERSIONS.RESOURCES.DATABASE.limits.memory,
+    },
+  })
+
+  logger.info(`Database created: ${database.id} for project: ${project.id}`)
+
+  return { success: true, data: database }
+}
+
+/**
+ * Delete a database
+ *
+ * @param databaseId - Database ID
+ */
+export async function deleteDatabase(databaseId: string): Promise<ActionResult<void>> {
+  const session = await auth()
+  if (!session) {
+    return { success: false, error: 'Unauthorized' }
+  }
+
+  // Verify database exists and belongs to user
+  const database = await prisma.database.findUnique({
+    where: { id: databaseId },
+    include: { project: true },
+  })
+
+  if (!database) {
+    return { success: false, error: 'Database not found' }
+  }
+
+  if (database.project.userId !== session.user.id) {
+    return { success: false, error: 'Unauthorized' }
+  }
+
+  // Update status to TERMINATING (reconciliation job will handle K8s deletion)
+  await prisma.database.update({
+    where: { id: databaseId },
+    data: {
+      status: 'TERMINATING',
+      lockedUntil: null, // Unlock for reconciliation job
+    },
+  })
+
+  logger.info(`Database ${databaseId} marked for deletion`)
+
+  return { success: true, data: undefined }
+}
diff --git a/lib/actions/project.ts b/lib/actions/project.ts
index fb48bd0..85780ff 100644
--- a/lib/actions/project.ts
+++ b/lib/actions/project.ts
@@ -101,10 +101,9 @@ export async function createProject(
   const ttydAuthToken = generateRandomString(24) // 24 chars = ~143 bits entropy for terminal auth
   const fileBrowserUsername = `fb-${randomSuffix}` // filebrowser username
   const fileBrowserPassword = generateRandomString(16) // 16 char random password
-  const databaseName = `${k8sProjectName}-${randomSuffix}`
   const sandboxName = `${k8sProjectName}-${randomSuffix}`
 
-  // Create project with database and sandbox in a transaction
+  // Create project with sandbox in a transaction
   const result = await prisma.$transaction(
     async (tx) => {
       // 1. Create Project with status CREATING
@@ -117,25 +116,7 @@ export async function createProject(
         },
       })
 
-      // 2. Create Database record - lockedUntil is null so reconcile job can process immediately
-      const database = await tx.database.create({
-        data: {
-          projectId: project.id,
-          name: databaseName,
-          k8sNamespace: namespace,
-          databaseName: databaseName,
-          status: 'CREATING',
-          lockedUntil: null, // Unlocked - ready for reconcile job to process
-          // Resource configuration from versions
-          storageSize: VERSIONS.STORAGE.DATABASE_SIZE,
-          cpuRequest: VERSIONS.RESOURCES.DATABASE.requests.cpu,
-          cpuLimit: VERSIONS.RESOURCES.DATABASE.limits.cpu,
-          memoryRequest: VERSIONS.RESOURCES.DATABASE.requests.memory,
-          memoryLimit: VERSIONS.RESOURCES.DATABASE.limits.memory,
-        },
-      })
-
-      // 3. Create Sandbox record - lockedUntil is null so reconcile job can process immediately
+      // 2. Create Sandbox record - lockedUntil is null so reconcile job can process immediately
       const sandbox = await tx.sandbox.create({
         data: {
           projectId: project.id,
@@ -153,7 +134,7 @@ export async function createProject(
         },
       })
 
-      // 4. Create Environment record for ttyd access token
+      // 3. Create Environment record for ttyd access token
       const ttydEnv = await tx.environment.create({
         data: {
           projectId: project.id,
@@ -164,7 +145,7 @@ export async function createProject(
         },
       })
 
-      // 5. Create Environment records for filebrowser credentials
+      // 4. Create Environment records for filebrowser credentials
       const fileBrowserUsernameEnv = await tx.environment.create({
         data: {
           projectId: project.id,
@@ -187,7 +168,6 @@ export async function createProject(
 
       return {
         project,
-        database,
         sandbox,
         ttydEnv,
         fileBrowserUsernameEnv,
@@ -200,7 +180,7 @@ export async function createProject(
   )
 
   logger.info(
-    `Project created: ${result.project.id} with database: ${result.database.id}, sandbox: ${result.sandbox.id}`
+    `Project created: ${result.project.id} with sandbox: ${result.sandbox.id}`
   )
 
   return { success: true, data: result.project }
diff --git a/lib/util/projectStatus.ts b/lib/util/projectStatus.ts
index 511870c..3df7ca6 100644
--- a/lib/util/projectStatus.ts
+++ b/lib/util/projectStatus.ts
@@ -14,13 +14,17 @@ import type { ProjectStatus, ResourceStatus } from '@prisma/client'
  *    - TERMINATING: All resources ∈ {TERMINATED, TERMINATING}
  * 6. PARTIAL: Inconsistent mixed states
  *
+ * Note: Empty array returns TERMINATED (used when all resources are deleted)
+ *
  * @param resourceStatuses - Array of resource statuses
  * @returns Aggregated project status
  */
 export function aggregateProjectStatus(resourceStatuses: ResourceStatus[]): ProjectStatus {
-  // Handle empty case
+  // Handle empty case - this happens when all resources (sandbox + database) are deleted
+  // In the new design, projects without databases are valid, so this only triggers
+  // when the project truly has no resources left
   if (resourceStatuses.length === 0) {
-    return 'TERMINATED' // Default to TERMINATED for projects with no resources
+    return 'TERMINATED'
   }
 
   // Rule 1: Check for ERROR - highest priority
diff --git a/lib/util/type-guards.ts b/lib/util/type-guards.ts
new file mode 100644
index 0000000..af54599
--- /dev/null
+++ b/lib/util/type-guards.ts
@@ -0,0 +1,37 @@
+import type { Database, Project, Sandbox } from '@prisma/client'
+
+/**
+ * Type guard utilities for project resources
+ */
+
+/**
+ * Project with at least one database
+ */
+export type ProjectWithDatabase = Project & {
+  databases: [Database, ...Database[]]
+}
+
+/**
+ * Check if a project has at least one database
+ */
+export function hasDatabase(
+  project: Project & { databases: Database[] }
+): project is ProjectWithDatabase {
+  return project.databases.length > 0
+}
+
+/**
+ * Project with at least one sandbox
+ */
+export type ProjectWithSandbox = Project & {
+  sandboxes: [Sandbox, ...Sandbox[]]
+}
+
+/**
+ * Check if a project has at least one sandbox
+ */
+export function hasSandbox(
+  project: Project & { sandboxes: Sandbox[] }
+): project is ProjectWithSandbox {
+  return project.sandboxes.length > 0
+}