diff --git a/.changeset/quick-clocks-happen.md b/.changeset/quick-clocks-happen.md
new file mode 100644
index 0000000000..abe726c083
--- /dev/null
+++ b/.changeset/quick-clocks-happen.md
@@ -0,0 +1,5 @@
+---
+"@medusajs/medusa": patch
+---
+
+fix(medusa): fixes db setup command to not load connection before creating db
diff --git a/packages/medusa/src/commands/db/setup.ts b/packages/medusa/src/commands/db/setup.ts
index 69e9741c4e..5982e5598b 100644
--- a/packages/medusa/src/commands/db/setup.ts
+++ b/packages/medusa/src/commands/db/setup.ts
@@ -12,7 +12,9 @@ const main = async function ({
   executeAllLinks,
   executeSafeLinks,
 }) {
-  const container = await initializeContainer(directory)
+  let container = await initializeContainer(directory, {
+    skipDbConnection: true,
+  })
   const logger = container.resolve(ContainerRegistrationKeys.LOGGER)
 
   try {
@@ -21,6 +23,8 @@ const main = async function ({
       process.exit(1)
     }
 
+    container = await initializeContainer(directory)
+
     const migrated = await migrate({
       directory,
       skipLinks,