diff --git a/internal/config/config.go b/internal/config/config.go
index b383a2731e..f11dbc9feb 100644
--- a/internal/config/config.go
+++ b/internal/config/config.go
@@ -182,6 +182,43 @@ func (c *Config) parseScheme(rawVal string) string {
 	return rawVal
 }
 
+// RefreshPostgreSQLConfig re-reads PostgreSQL configuration from file:// and env:// URIs
+// This enables hot-reloading when credentials are rotated by updating the referenced files.
+// Note: Plain environment variables (without file:// or env:// prefixes) are read from the
+// process environment and will not change unless the process is restarted or os.Setenv is called.
+func (c *Config) RefreshPostgreSQLConfig() PostgreSQLConfig {
+	// Start with current config as base
+	refreshed := c.PostgreSQL
+
+	// Manually read from environment variables with proper prefix
+	// We can't use env.Process directly on PostgreSQLConfig because it loses the AUTHENTIK_POSTGRESQL__ prefix
+	// Map of environment variable suffix to config field pointer
+	envVars := map[string]*string{
+		"HOST":           &refreshed.Host,
+		"USER":           &refreshed.User,
+		"PASSWORD":       &refreshed.Password,
+		"NAME":           &refreshed.Name,
+		"SSLMODE":        &refreshed.SSLMode,
+		"SSLROOTCERT":    &refreshed.SSLRootCert,
+		"SSLCERT":        &refreshed.SSLCert,
+		"SSLKEY":         &refreshed.SSLKey,
+		"DEFAULT_SCHEMA": &refreshed.DefaultSchema,
+		"CONN_OPTIONS":   &refreshed.ConnOptions,
+	}
+
+	// Read each environment variable if it exists
+	for suffix, field := range envVars {
+		if val, ok := os.LookupEnv("AUTHENTIK_POSTGRESQL__" + suffix); ok {
+			*field = val
+		}
+	}
+
+	// Process file:// and env:// URI schemes
+	c.walkScheme(&refreshed)
+
+	return refreshed
+}
+
 func (c *Config) configureLogger() {
 	switch strings.ToLower(c.LogLevel) {
 	case "trace":
diff --git a/internal/outpost/proxyv2/postgresstore/connpool.go b/internal/outpost/proxyv2/postgresstore/connpool.go
new file mode 100644
index 0000000000..c9a5645ff9
--- /dev/null
+++ b/internal/outpost/proxyv2/postgresstore/connpool.go
@@ -0,0 +1,291 @@
+package postgresstore
+
+import (
+	"context"
+	"database/sql"
+	"database/sql/driver"
+	"errors"
+	"sync"
+	"time"
+
+	"github.com/jackc/pgx/v5/pgconn"
+	log "github.com/sirupsen/logrus"
+	"gorm.io/driver/postgres"
+	"gorm.io/gorm"
+
+	"goauthentik.io/internal/config"
+)
+
+// RefreshableConnPool wraps sql.DB and refreshes PostgreSQL credentials on authentication errors
+// This implements gorm.ConnPool interface to allow credential rotation
+type RefreshableConnPool struct {
+	mu         sync.RWMutex
+	db         *sql.DB
+	dsnBuilder func(config.PostgreSQLConfig) (string, error)
+	log        *log.Entry
+	currentDSN string
+	gormConfig *gorm.Config
+
+	// Connection pool settings (stored for reapplication after reconnection)
+	maxIdleConns    int
+	maxOpenConns    int
+	connMaxLifetime time.Duration
+
+	// Reconnection management
+	reconnecting sync.Mutex // Prevent concurrent reconnections
+}
+
+// NewRefreshableConnPool creates a new connection pool that refreshes credentials from config
+func NewRefreshableConnPool(initialDSN string, gormConfig *gorm.Config, maxIdleConns, maxOpenConns int, connMaxLifetime time.Duration) (*RefreshableConnPool, error) {
+	db, err := sql.Open("postgres", initialDSN)
+	if err != nil {
+		return nil, err
+	}
+
+	// Apply connection pool settings
+	db.SetMaxIdleConns(maxIdleConns)
+	db.SetMaxOpenConns(maxOpenConns)
+	db.SetConnMaxLifetime(connMaxLifetime)
+
+	pool := &RefreshableConnPool{
+		db:              db,
+		dsnBuilder:      BuildDSN,
+		log:             log.WithField("logger", "authentik.outpost.proxyv2.postgresstore.connpool"),
+		currentDSN:      initialDSN,
+		gormConfig:      gormConfig,
+		maxIdleConns:    maxIdleConns,
+		maxOpenConns:    maxOpenConns,
+		connMaxLifetime: connMaxLifetime,
+	}
+
+	return pool, nil
+}
+
+// isAuthError checks if an error is a PostgreSQL authentication error
+func isAuthError(err error) bool {
+	if err == nil {
+		return false
+	}
+
+	// Unwrap the error to find the underlying pgconn.PgError
+	var pgErr *pgconn.PgError
+	if errors.As(err, &pgErr) {
+		// Check for any PostgreSQL error code in Class 28 (Invalid Authorization Specification)
+		// See https://www.postgresql.org/docs/current/errcodes-appendix.html
+		return len(pgErr.Code) >= 2 && pgErr.Code[:2] == "28"
+	}
+
+	return false
+}
+
+// refreshCredentials checks if credentials have changed and reconnects if needed
+func (p *RefreshableConnPool) refreshCredentials(ctx context.Context) error {
+	// Prevent concurrent reconnections
+	p.reconnecting.Lock()
+	defer p.reconnecting.Unlock()
+
+	// Get fresh config
+	cfg := config.Get().RefreshPostgreSQLConfig()
+	newDSN, err := p.dsnBuilder(cfg)
+	if err != nil {
+		p.log.WithError(err).Warn("Failed to build DSN with refreshed credentials")
+		return err
+	}
+
+	p.mu.RLock()
+	dsnChanged := newDSN != p.currentDSN
+	p.mu.RUnlock()
+
+	if !dsnChanged {
+		p.log.Debug("Credentials unchanged, skipping reconnection")
+		return nil
+	}
+
+	p.mu.Lock()
+	defer p.mu.Unlock()
+
+	// Double-check after acquiring write lock
+	if newDSN == p.currentDSN {
+		return nil
+	}
+
+	p.log.Info("PostgreSQL credentials changed, reconnecting...")
+
+	// Open new connection with fresh credentials
+	newDB, err := sql.Open("postgres", newDSN)
+	if err != nil {
+		p.log.WithError(err).Error("Failed to open new database connection with refreshed credentials")
+		return err
+	}
+
+	// Reapply connection pool settings
+	newDB.SetMaxIdleConns(p.maxIdleConns)
+	newDB.SetMaxOpenConns(p.maxOpenConns)
+	newDB.SetConnMaxLifetime(p.connMaxLifetime)
+
+	// Verify the connection works BEFORE closing old connection
+	if err := newDB.PingContext(ctx); err != nil {
+		p.log.WithError(err).Error("Failed to ping database with new credentials")
+		_ = newDB.Close()
+		// Old connection remains active, pool is still functional
+		return err
+	}
+
+	// Only after successful verification, swap connections
+	oldDB := p.db
+	p.db = newDB
+	p.currentDSN = newDSN
+
+	// Close old connection after swap
+	if oldDB != nil {
+		if err := oldDB.Close(); err != nil {
+			p.log.WithError(err).Warn("Failed to close old database connection")
+			// Not fatal cause new connection is already active
+		}
+	}
+
+	p.log.Info("Successfully reconnected with new PostgreSQL credentials")
+
+	return nil
+}
+
+// tryWithRefresh attempts an operation, and if it fails with an auth error, refreshes credentials and retries
+func (p *RefreshableConnPool) tryWithRefresh(ctx context.Context, op func() error) error {
+	err := op()
+	if err != nil && isAuthError(err) {
+		p.log.WithError(err).Info("Authentication error detected, attempting to refresh credentials")
+		if refreshErr := p.refreshCredentials(ctx); refreshErr == nil {
+			// Retry the operation once after successful refresh
+			p.log.Debug("Retrying operation after credential refresh")
+			return op()
+		} else {
+			p.log.WithError(refreshErr).Warn("Failed to refresh credentials, returning original error")
+		}
+	}
+	return err
+}
+
+// PrepareContext implements gorm.ConnPool interface
+func (p *RefreshableConnPool) PrepareContext(ctx context.Context, query string) (*sql.Stmt, error) {
+	var stmt *sql.Stmt
+	err := p.tryWithRefresh(ctx, func() error {
+		p.mu.RLock()
+		defer p.mu.RUnlock()
+		var err error
+		stmt, err = p.db.PrepareContext(ctx, query)
+		return err
+	})
+	return stmt, err
+}
+
+// ExecContext implements gorm.ConnPool interface
+func (p *RefreshableConnPool) ExecContext(ctx context.Context, query string, args ...interface{}) (sql.Result, error) {
+	var result sql.Result
+	err := p.tryWithRefresh(ctx, func() error {
+		p.mu.RLock()
+		defer p.mu.RUnlock()
+		var err error
+		result, err = p.db.ExecContext(ctx, query, args...)
+		return err
+	})
+	return result, err
+}
+
+// QueryContext implements gorm.ConnPool interface
+func (p *RefreshableConnPool) QueryContext(ctx context.Context, query string, args ...interface{}) (*sql.Rows, error) {
+	var rows *sql.Rows
+	err := p.tryWithRefresh(ctx, func() error {
+		p.mu.RLock()
+		defer p.mu.RUnlock()
+		var err error
+		rows, err = p.db.QueryContext(ctx, query, args...)
+		return err
+	})
+	return rows, err
+}
+
+// QueryRowContext implements gorm.ConnPool interface
+func (p *RefreshableConnPool) QueryRowContext(ctx context.Context, query string, args ...interface{}) *sql.Row {
+	// Note: sql.Row doesn't return errors until Scan() is called, so we can't detect auth errors here
+	// The error will be caught in higher-level GORM operations
+	p.mu.RLock()
+	defer p.mu.RUnlock()
+	return p.db.QueryRowContext(ctx, query, args...)
+}
+
+// BeginTx implements gorm.TxBeginner and gorm.ConnPoolBeginner interfaces
+func (p *RefreshableConnPool) BeginTx(ctx context.Context, opts *sql.TxOptions) (gorm.ConnPool, error) {
+	var tx *sql.Tx
+	err := p.tryWithRefresh(ctx, func() error {
+		p.mu.RLock()
+		defer p.mu.RUnlock()
+		var err error
+		tx, err = p.db.BeginTx(ctx, opts)
+		return err
+	})
+	if err != nil {
+		return nil, err
+	}
+	return &refreshableTx{Tx: tx, pool: p}, nil
+}
+
+// refreshableTx wraps sql.Tx to implement gorm.ConnPool
+type refreshableTx struct {
+	*sql.Tx
+	pool *RefreshableConnPool
+}
+
+func (tx *refreshableTx) PrepareContext(ctx context.Context, query string) (*sql.Stmt, error) {
+	return tx.Tx.PrepareContext(ctx, query)
+}
+
+func (tx *refreshableTx) ExecContext(ctx context.Context, query string, args ...interface{}) (sql.Result, error) {
+	return tx.Tx.ExecContext(ctx, query, args...)
+}
+
+func (tx *refreshableTx) QueryContext(ctx context.Context, query string, args ...interface{}) (*sql.Rows, error) {
+	return tx.Tx.QueryContext(ctx, query, args...)
+}
+
+func (tx *refreshableTx) QueryRowContext(ctx context.Context, query string, args ...interface{}) *sql.Row {
+	return tx.Tx.QueryRowContext(ctx, query, args...)
+}
+
+// Close closes the underlying database connection
+func (p *RefreshableConnPool) Close() error {
+	p.mu.Lock()
+	defer p.mu.Unlock()
+	if p.db != nil {
+		return p.db.Close()
+	}
+	return nil
+}
+
+// Ping verifies the connection is alive
+func (p *RefreshableConnPool) Ping(ctx context.Context) error {
+	p.mu.RLock()
+	defer p.mu.RUnlock()
+	return p.db.PingContext(ctx)
+}
+
+// GetDB returns the underlying sql.DB for connection pool configuration
+func (p *RefreshableConnPool) GetDB() *sql.DB {
+	p.mu.RLock()
+	defer p.mu.RUnlock()
+	return p.db
+}
+
+// NewGORMDB creates a GORM DB instance using the refreshable connection pool
+func (p *RefreshableConnPool) NewGORMDB() (*gorm.DB, error) {
+	dialector := postgres.New(postgres.Config{
+		Conn: p,
+	})
+	return gorm.Open(dialector, p.gormConfig)
+}
+
+// Ensure RefreshableConnPool implements required interfaces
+var (
+	_ gorm.ConnPool         = (*RefreshableConnPool)(nil)
+	_ gorm.ConnPoolBeginner = (*RefreshableConnPool)(nil)
+	_ driver.Pinger         = (*RefreshableConnPool)(nil)
+)
diff --git a/internal/outpost/proxyv2/postgresstore/connpool_test.go b/internal/outpost/proxyv2/postgresstore/connpool_test.go
new file mode 100644
index 0000000000..bcb63698b4
--- /dev/null
+++ b/internal/outpost/proxyv2/postgresstore/connpool_test.go
@@ -0,0 +1,415 @@
+package postgresstore
+
+import (
+	"context"
+	"os"
+	"path/filepath"
+	"testing"
+	"time"
+
+	"github.com/jackc/pgx/v5/pgconn"
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+	"gorm.io/gorm"
+	"gorm.io/gorm/logger"
+
+	"goauthentik.io/internal/config"
+)
+
+func TestRefreshableConnPool_CredentialRefresh(t *testing.T) {
+	// Skip if no PostgreSQL available
+	if os.Getenv("AUTHENTIK_POSTGRESQL__HOST") == "" {
+		t.Skip("Skipping test: no PostgreSQL configured")
+	}
+
+	// Create a temporary file for password rotation
+	tmpDir := t.TempDir()
+	passwordFile := filepath.Join(tmpDir, "db_password")
+
+	// Write initial password
+	initialPassword := os.Getenv("AUTHENTIK_POSTGRESQL__PASSWORD")
+	if initialPassword == "" {
+		initialPassword = "postgres"
+	}
+	err := os.WriteFile(passwordFile, []byte(initialPassword), 0600)
+	require.NoError(t, err)
+
+	// Set up config to use file:// URI for password
+	originalPassword := os.Getenv("AUTHENTIK_POSTGRESQL__PASSWORD")
+	require.NoError(t, os.Setenv("AUTHENTIK_POSTGRESQL__PASSWORD", "file://"+passwordFile))
+	defer func() {
+		if originalPassword != "" {
+			_ = os.Setenv("AUTHENTIK_POSTGRESQL__PASSWORD", originalPassword)
+		} else {
+			_ = os.Unsetenv("AUTHENTIK_POSTGRESQL__PASSWORD")
+		}
+	}()
+
+	// Reload config
+	cfg := &config.Config{}
+	cfg.Setup()
+
+	// Build initial DSN
+	dsn, err := BuildDSN(cfg.PostgreSQL)
+	require.NoError(t, err)
+
+	gormConfig := &gorm.Config{
+		Logger: logger.Default.LogMode(logger.Silent),
+		NowFunc: func() time.Time {
+			return time.Now().UTC()
+		},
+	}
+
+	// Create refreshable connection pool
+	pool, err := NewRefreshableConnPool(dsn, gormConfig, 10, 100, time.Hour)
+	require.NoError(t, err)
+	defer func() { _ = pool.Close() }()
+
+	// Test initial connection works
+	ctx := context.Background()
+	err = pool.Ping(ctx)
+	assert.NoError(t, err, "Initial connection should work")
+
+	// Create GORM DB
+	db, err := pool.NewGORMDB()
+	require.NoError(t, err)
+
+	// Execute a test query
+	var result int
+	err = db.WithContext(ctx).Raw("SELECT 1").Scan(&result).Error
+	assert.NoError(t, err, "Initial query should succeed")
+	assert.Equal(t, 1, result)
+
+	// Simulate password change by writing to file
+	// In real scenario, this would be an external process updating the file
+	time.Sleep(100 * time.Millisecond) // Small delay to ensure file modification time changes
+	err = os.WriteFile(passwordFile, []byte(initialPassword), 0600)
+	require.NoError(t, err)
+
+	// Execute another query - should trigger credential refresh check
+	err = db.WithContext(ctx).Raw("SELECT 2").Scan(&result).Error
+	assert.NoError(t, err, "Query after credential refresh should succeed")
+	assert.Equal(t, 2, result)
+}
+
+func TestRefreshableConnPool_Interfaces(t *testing.T) {
+	// Verify that RefreshableConnPool implements required interfaces at compile time
+	// This test will fail to compile if interfaces are not properly implemented
+	var pool *RefreshableConnPool
+
+	// Test gorm.ConnPool interface
+	var _ gorm.ConnPool = pool
+
+	// Test gorm.ConnPoolBeginner interface
+	var _ gorm.ConnPoolBeginner = pool
+}
+
+func TestRefreshableConnPool_ConcurrentAccess(t *testing.T) {
+	// Skip if no PostgreSQL available
+	if os.Getenv("AUTHENTIK_POSTGRESQL__HOST") == "" {
+		t.Skip("Skipping test: no PostgreSQL configured")
+	}
+
+	cfg := config.Get()
+	dsn, err := BuildDSN(cfg.PostgreSQL)
+	require.NoError(t, err)
+
+	gormConfig := &gorm.Config{
+		Logger: logger.Default.LogMode(logger.Silent),
+	}
+
+	pool, err := NewRefreshableConnPool(dsn, gormConfig, 10, 100, time.Hour)
+	require.NoError(t, err)
+	defer func() { _ = pool.Close() }()
+
+	db, err := pool.NewGORMDB()
+	require.NoError(t, err)
+
+	// Test concurrent queries
+	ctx := context.Background()
+	numGoroutines := 10
+	numQueries := 5
+
+	errChan := make(chan error, numGoroutines*numQueries)
+
+	for i := 0; i < numGoroutines; i++ {
+		go func(goroutineID int) {
+			for j := 0; j < numQueries; j++ {
+				var result int
+				err := db.WithContext(ctx).Raw("SELECT ?", goroutineID*numQueries+j).Scan(&result).Error
+				if err != nil {
+					errChan <- err
+				}
+			}
+		}(i)
+	}
+
+	// Wait a bit for goroutines to complete
+	time.Sleep(2 * time.Second)
+	close(errChan)
+
+	// Check for any errors
+	for err := range errChan {
+		assert.NoError(t, err, "Concurrent queries should succeed")
+	}
+}
+
+func TestRefreshableConnPool_InvalidCredentials(t *testing.T) {
+	// Create a pool with invalid credentials
+	invalidDSN := "host=localhost port=5432 user=invalid password=invalid dbname=invalid sslmode=disable"
+
+	gormConfig := &gorm.Config{
+		Logger: logger.Default.LogMode(logger.Silent),
+	}
+
+	pool, err := NewRefreshableConnPool(invalidDSN, gormConfig, 10, 100, time.Hour)
+	if err != nil {
+		// sql.Open may succeed even with invalid credentials (lazy connection)
+		return
+	}
+	defer func() { _ = pool.Close() }()
+
+	// Ping should fail with invalid credentials
+	ctx := context.Background()
+	err = pool.Ping(ctx)
+	assert.Error(t, err, "Ping with invalid credentials should fail")
+}
+
+func TestConfig_RefreshPostgreSQLConfig_FileURI(t *testing.T) {
+	// Create temporary files for testing file:// URIs
+	tmpDir := t.TempDir()
+
+	passwordFile := filepath.Join(tmpDir, "password")
+	userFile := filepath.Join(tmpDir, "user")
+	hostFile := filepath.Join(tmpDir, "host")
+
+	err := os.WriteFile(passwordFile, []byte("secret_password"), 0600)
+	require.NoError(t, err)
+	err = os.WriteFile(userFile, []byte("dbuser"), 0600)
+	require.NoError(t, err)
+	err = os.WriteFile(hostFile, []byte("db.example.com"), 0600)
+	require.NoError(t, err)
+
+	// Set up environment variables with file:// URIs
+	require.NoError(t, os.Setenv("AUTHENTIK_POSTGRESQL__PASSWORD", "file://"+passwordFile))
+	require.NoError(t, os.Setenv("AUTHENTIK_POSTGRESQL__USER", "file://"+userFile))
+	require.NoError(t, os.Setenv("AUTHENTIK_POSTGRESQL__HOST", "file://"+hostFile))
+	defer func() {
+		_ = os.Unsetenv("AUTHENTIK_POSTGRESQL__PASSWORD")
+		_ = os.Unsetenv("AUTHENTIK_POSTGRESQL__USER")
+		_ = os.Unsetenv("AUTHENTIK_POSTGRESQL__HOST")
+	}()
+
+	// Create and setup config
+	cfg := &config.Config{}
+	cfg.Setup()
+
+	// Test initial values are parsed correctly
+	assert.Equal(t, "secret_password", cfg.PostgreSQL.Password, "Initial password should be parsed from file")
+	assert.Equal(t, "dbuser", cfg.PostgreSQL.User, "Initial user should be parsed from file")
+	assert.Equal(t, "db.example.com", cfg.PostgreSQL.Host, "Initial host should be parsed from file")
+
+	// Test RefreshPostgreSQLConfig returns same values initially
+	refreshed := cfg.RefreshPostgreSQLConfig()
+	assert.Equal(t, "secret_password", refreshed.Password)
+	assert.Equal(t, "dbuser", refreshed.User)
+	assert.Equal(t, "db.example.com", refreshed.Host)
+
+	// Update password file (simulating credential rotation)
+	err = os.WriteFile(passwordFile, []byte("new_password"), 0600)
+	require.NoError(t, err)
+
+	// Update user file
+	err = os.WriteFile(userFile, []byte("new_dbuser"), 0600)
+	require.NoError(t, err)
+
+	// Refresh should pick up new values from files
+	refreshed = cfg.RefreshPostgreSQLConfig()
+	assert.Equal(t, "new_password", refreshed.Password, "Password should be refreshed from file")
+	assert.Equal(t, "new_dbuser", refreshed.User, "User should be refreshed from file")
+
+	// Original config struct should still have old values (not mutated)
+	assert.Equal(t, "secret_password", cfg.PostgreSQL.Password, "Original config should not be mutated")
+}
+
+func TestConfig_RefreshPostgreSQLConfig_EnvURI(t *testing.T) {
+	// Test with env:// URIs (referencing other env vars)
+	require.NoError(t, os.Setenv("DB_PASSWORD", "env_password"))
+	require.NoError(t, os.Setenv("DB_USER", "env_user"))
+	require.NoError(t, os.Setenv("DB_HOST", "env_host"))
+	require.NoError(t, os.Setenv("AUTHENTIK_POSTGRESQL__PASSWORD", "env://DB_PASSWORD"))
+	require.NoError(t, os.Setenv("AUTHENTIK_POSTGRESQL__USER", "env://DB_USER"))
+	require.NoError(t, os.Setenv("AUTHENTIK_POSTGRESQL__HOST", "env://DB_HOST"))
+	defer func() {
+		_ = os.Unsetenv("DB_PASSWORD")
+		_ = os.Unsetenv("DB_USER")
+		_ = os.Unsetenv("DB_HOST")
+		_ = os.Unsetenv("AUTHENTIK_POSTGRESQL__PASSWORD")
+		_ = os.Unsetenv("AUTHENTIK_POSTGRESQL__USER")
+		_ = os.Unsetenv("AUTHENTIK_POSTGRESQL__HOST")
+	}()
+
+	cfg := &config.Config{}
+	cfg.Setup()
+
+	// Test initial values are parsed correctly
+	assert.Equal(t, "env_password", cfg.PostgreSQL.Password, "Initial password should be parsed from env")
+	assert.Equal(t, "env_user", cfg.PostgreSQL.User, "Initial user should be parsed from env")
+	assert.Equal(t, "env_host", cfg.PostgreSQL.Host, "Initial host should be parsed from env")
+
+	// Test RefreshPostgreSQLConfig
+	refreshed := cfg.RefreshPostgreSQLConfig()
+	assert.Equal(t, "env_password", refreshed.Password)
+	assert.Equal(t, "env_user", refreshed.User)
+	assert.Equal(t, "env_host", refreshed.Host)
+
+	// Change referenced environment variables (simulating credential rotation)
+	require.NoError(t, os.Setenv("DB_PASSWORD", "new_env_password"))
+	require.NoError(t, os.Setenv("DB_USER", "new_env_user"))
+
+	// Refresh should pick up new values
+	refreshed = cfg.RefreshPostgreSQLConfig()
+	assert.Equal(t, "new_env_password", refreshed.Password, "Password should be refreshed from env")
+	assert.Equal(t, "new_env_user", refreshed.User, "User should be refreshed from env")
+
+	// Original config struct should still have old values (not mutated)
+	assert.Equal(t, "env_password", cfg.PostgreSQL.Password, "Original config should not be mutated")
+}
+
+func TestConfig_RefreshPostgreSQLConfig_PlainValues(t *testing.T) {
+	// Test with plain values (no URI scheme)
+	require.NoError(t, os.Setenv("AUTHENTIK_POSTGRESQL__PASSWORD", "plain_password"))
+	require.NoError(t, os.Setenv("AUTHENTIK_POSTGRESQL__USER", "plain_user"))
+	require.NoError(t, os.Setenv("AUTHENTIK_POSTGRESQL__HOST", "localhost"))
+	defer func() {
+		_ = os.Unsetenv("AUTHENTIK_POSTGRESQL__PASSWORD")
+		_ = os.Unsetenv("AUTHENTIK_POSTGRESQL__USER")
+		_ = os.Unsetenv("AUTHENTIK_POSTGRESQL__HOST")
+	}()
+
+	cfg := &config.Config{}
+	cfg.Setup()
+
+	// Test initial values
+	assert.Equal(t, "plain_password", cfg.PostgreSQL.Password)
+	assert.Equal(t, "plain_user", cfg.PostgreSQL.User)
+	assert.Equal(t, "localhost", cfg.PostgreSQL.Host)
+
+	// Test refresh returns same values
+	refreshed := cfg.RefreshPostgreSQLConfig()
+	assert.Equal(t, "plain_password", refreshed.Password)
+	assert.Equal(t, "plain_user", refreshed.User)
+	assert.Equal(t, "localhost", refreshed.Host)
+
+	// Change env vars
+	require.NoError(t, os.Setenv("AUTHENTIK_POSTGRESQL__PASSWORD", "new_plain_password"))
+
+	// Refresh should pick up new plain value
+	refreshed = cfg.RefreshPostgreSQLConfig()
+	assert.Equal(t, "new_plain_password", refreshed.Password, "Plain password should be refreshed")
+}
+
+func TestConfig_RefreshPostgreSQLConfig_MixedSources(t *testing.T) {
+	// Test with mixed sources: file://, env://, and plain
+	tmpDir := t.TempDir()
+	passwordFile := filepath.Join(tmpDir, "password")
+	err := os.WriteFile(passwordFile, []byte("file_password"), 0600)
+	require.NoError(t, err)
+
+	require.NoError(t, os.Setenv("DB_USER_VAR", "env_user"))
+	require.NoError(t, os.Setenv("AUTHENTIK_POSTGRESQL__PASSWORD", "file://"+passwordFile))
+	require.NoError(t, os.Setenv("AUTHENTIK_POSTGRESQL__USER", "env://DB_USER_VAR"))
+	require.NoError(t, os.Setenv("AUTHENTIK_POSTGRESQL__HOST", "plain_host"))
+	defer func() {
+		_ = os.Unsetenv("DB_USER_VAR")
+		_ = os.Unsetenv("AUTHENTIK_POSTGRESQL__PASSWORD")
+		_ = os.Unsetenv("AUTHENTIK_POSTGRESQL__USER")
+		_ = os.Unsetenv("AUTHENTIK_POSTGRESQL__HOST")
+	}()
+
+	cfg := &config.Config{}
+	cfg.Setup()
+
+	// Test initial values
+	assert.Equal(t, "file_password", cfg.PostgreSQL.Password)
+	assert.Equal(t, "env_user", cfg.PostgreSQL.User)
+	assert.Equal(t, "plain_host", cfg.PostgreSQL.Host)
+
+	// Update all sources
+	err = os.WriteFile(passwordFile, []byte("new_file_password"), 0600)
+	require.NoError(t, err)
+	require.NoError(t, os.Setenv("DB_USER_VAR", "new_env_user"))
+	require.NoError(t, os.Setenv("AUTHENTIK_POSTGRESQL__HOST", "new_plain_host"))
+
+	// Refresh should pick up all changes
+	refreshed := cfg.RefreshPostgreSQLConfig()
+	assert.Equal(t, "new_file_password", refreshed.Password, "File password should be refreshed")
+	assert.Equal(t, "new_env_user", refreshed.User, "Env user should be refreshed")
+	assert.Equal(t, "new_plain_host", refreshed.Host, "Plain host should be refreshed")
+}
+
+func TestIsAuthError(t *testing.T) {
+	tests := []struct {
+		name     string
+		err      error
+		expected bool
+	}{
+		{
+			name:     "nil error",
+			err:      nil,
+			expected: false,
+		},
+		{
+			name:     "generic error",
+			err:      assert.AnError,
+			expected: false,
+		},
+		{
+			name: "postgres error code 28000 - invalid_authorization_specification",
+			err: &pgconn.PgError{
+				Code:    "28000",
+				Message: "invalid authorization specification",
+			},
+			expected: true,
+		},
+		{
+			name: "postgres error code 28P01 - invalid_password",
+			err: &pgconn.PgError{
+				Code:    "28P01",
+				Message: "password authentication failed for user",
+			},
+			expected: true,
+		},
+		{
+			name: "postgres error code 28P02 - invalid_password (deprecated)",
+			err: &pgconn.PgError{
+				Code:    "28P02",
+				Message: "invalid password",
+			},
+			expected: true,
+		},
+		{
+			name: "postgres error code 42P01 - undefined_table (not auth error)",
+			err: &pgconn.PgError{
+				Code:    "42P01",
+				Message: "relation does not exist",
+			},
+			expected: false,
+		},
+		{
+			name: "postgres error code 23505 - unique_violation (not auth error)",
+			err: &pgconn.PgError{
+				Code:    "23505",
+				Message: "duplicate key value violates unique constraint",
+			},
+			expected: false,
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			result := isAuthError(tt.err)
+			assert.Equal(t, tt.expected, result)
+		})
+	}
+}
diff --git a/internal/outpost/proxyv2/postgresstore/postgresstore.go b/internal/outpost/proxyv2/postgresstore/postgresstore.go
index 6567a34f77..4d89266389 100644
--- a/internal/outpost/proxyv2/postgresstore/postgresstore.go
+++ b/internal/outpost/proxyv2/postgresstore/postgresstore.go
@@ -14,7 +14,6 @@ import (
 	"github.com/gorilla/sessions"
 	"github.com/mitchellh/mapstructure"
 	log "github.com/sirupsen/logrus"
-	"gorm.io/driver/postgres"
 	"gorm.io/gorm"
 	"gorm.io/gorm/clause"
 	"gorm.io/gorm/logger"
@@ -26,7 +25,8 @@ import (
 
 // PostgresStore stores gorilla sessions in PostgreSQL using GORM
 type PostgresStore struct {
-	db *gorm.DB
+	db   *gorm.DB
+	pool *RefreshableConnPool // Keep reference to pool for cleanup
 	// default options to use when a new session is created
 	options sessions.Options
 	// key prefix with which the session will be stored
@@ -125,29 +125,32 @@ func NewPostgresStore() (*PostgresStore, error) {
 		},
 	}
 
-	db, err := gorm.Open(postgres.Open(dsn), gormConfig)
+	// Determine connection pool settings
+	maxIdleConns := 10
+	maxOpenConns := 100
+	var connMaxLifetime time.Duration
+	if cfg.ConnMaxAge > 0 {
+		connMaxLifetime = time.Duration(cfg.ConnMaxAge) * time.Second
+	} else {
+		connMaxLifetime = time.Hour // Default 1 hour
+	}
+
+	// Create refreshable connection pool
+	pool, err := NewRefreshableConnPool(dsn, gormConfig, maxIdleConns, maxOpenConns, connMaxLifetime)
 	if err != nil {
+		return nil, fmt.Errorf("failed to create connection pool: %w", err)
+	}
+
+	// Create GORM DB using the refreshable connection pool
+	db, err := pool.NewGORMDB()
+	if err != nil {
+		_ = pool.Close()
 		return nil, fmt.Errorf("failed to connect to PostgreSQL: %w", err)
 	}
 
-	// Configure connection pool
-	sqlDB, err := db.DB()
-	if err != nil {
-		return nil, fmt.Errorf("failed to get underlying sql.DB: %w", err)
-	}
-
-	// Set connection pool settings
-	sqlDB.SetMaxIdleConns(10)
-	sqlDB.SetMaxOpenConns(100)
-
-	if cfg.ConnMaxAge > 0 {
-		sqlDB.SetConnMaxLifetime(time.Duration(cfg.ConnMaxAge) * time.Second)
-	} else {
-		sqlDB.SetConnMaxLifetime(time.Hour) // Default 1 hour
-	}
-
 	ps := &PostgresStore{
-		db: db,
+		db:   db,
+		pool: pool,
 		options: sessions.Options{
 			Path:   "/",
 			MaxAge: 86400 * 30, // 30 days default (but overwritten in postgresstore creation based on token validation)
@@ -224,11 +227,10 @@ func (s *PostgresStore) KeyPrefix(keyPrefix string) {
 
 // Close closes the PostgreSQL store
 func (s *PostgresStore) Close() error {
-	sqlDB, err := s.db.DB()
-	if err != nil {
-		return err
+	if s.pool != nil {
+		return s.pool.Close()
 	}
-	return sqlDB.Close()
+	return nil
 }
 
 // save writes session to PostgreSQL