diff --git a/.changeset/heavy-trainers-fly.md b/.changeset/heavy-trainers-fly.md
index db09f63496..48560b7ddd 100644
--- a/.changeset/heavy-trainers-fly.md
+++ b/.changeset/heavy-trainers-fly.md
@@ -2,4 +2,4 @@
 '@backstage/backend-common': patch
 ---
 
-add ensureSchemaExists backend database config
+Added config prop `ensureSchemaExists` to support postgres instances where user can create schemas but not databases.
diff --git a/packages/backend-common/src/database/connectors/postgres.ts b/packages/backend-common/src/database/connectors/postgres.ts
index 126c8cb89c..b81bfd5b50 100644
--- a/packages/backend-common/src/database/connectors/postgres.ts
+++ b/packages/backend-common/src/database/connectors/postgres.ts
@@ -321,7 +321,10 @@ export class PgConnector implements Connector {
     let schemaOverrides;
     if (this.getPluginDivisionModeConfig() === 'schema') {
       schemaOverrides = this.getSchemaOverrides(pluginId);
-      if (this.getEnsureSchemaExistsConfig(pluginId)) {
+      if (
+        this.getEnsureSchemaExistsConfig(pluginId) ||
+        this.getEnsureExistsConfig(pluginId)
+      ) {
         try {
           await pgConnector.ensureSchemaExists!(pluginConfig, pluginId);
         } catch (error) {
@@ -439,7 +442,7 @@ export class PgConnector implements Connector {
 
   private getEnsureSchemaExistsConfig(pluginId: string): boolean {
     const baseConfig =
-      this.config.getOptionalBoolean('ensureSchemaExists') ?? true;
+      this.config.getOptionalBoolean('ensureSchemaExists') ?? false;
     return (
       this.config.getOptionalBoolean(
         `${pluginPath(pluginId)}.getEnsureSchemaExistsConfig`,