diff --git a/.changeset/chatty-badgers-visit.md b/.changeset/chatty-badgers-visit.md
new file mode 100644
index 0000000000..89306f0c03
--- /dev/null
+++ b/.changeset/chatty-badgers-visit.md
@@ -0,0 +1,5 @@
+---
+"create-medusa-app": patch
+---
+
+Fix issue where create-medusa-app repeatedly asked for database credentials even when --db-url was specified. The logic in MedusaProjectCreator->create()->initializeProject()->setupDatabase() always defines a dbName. Updated the getDbClientAndCredentials() method to check db-url first
diff --git a/packages/cli/create-medusa-app/src/utils/create-db.ts b/packages/cli/create-medusa-app/src/utils/create-db.ts
index 097d9521f1..38ad7de6ca 100644
--- a/packages/cli/create-medusa-app/src/utils/create-db.ts
+++ b/packages/cli/create-medusa-app/src/utils/create-db.ts
@@ -226,15 +226,16 @@ export async function getDbClientAndCredentials({
   verbose?: boolean
   dbName?: string
 }> {
-  if (dbName) {
-    return await getForDbName({
-      dbName,
-      verbose,
-    })
-  } else {
+  // Check the db-url first, because the dbName is always defined in MedusaProjectCreator->create()->initializeProject()->setupDatabase()
+  if (dbUrl) {
     return await getForDbUrl({
       dbUrl,
       verbose,
     })
+  } else {
+    return await getForDbName({
+      dbName,
+      verbose,
+    })
   }
 }