diff --git a/database/pgdb/CLAUDE.md b/database/pgdb/CLAUDE.md
index a205437..b577606 100644
--- a/database/pgdb/CLAUDE.md
+++ b/database/pgdb/CLAUDE.md
@@ -93,8 +93,34 @@ sslmode: prefer
 
 ## Environment Variables
 
+- `DATABASE_URI` - PostgreSQL connection URI (takes precedence over config files)
 - `DATABASE_CONFIG_FILE` - Override config file location
 
+### URI Format
+
+Standard PostgreSQL URI format:
+```
+postgresql://user:password@host:port/database?sslmode=require&pool_max_conns=10
+```
+
+Pool settings can be included in the URI query string:
+- `pool_max_conns`, `pool_min_conns`
+- `pool_max_conn_lifetime`, `pool_max_conn_idle_time`
+- `pool_health_check_period`
+
+When using `DATABASE_URI`, `PoolOptions` are ignored and all settings come from the URI.
+
+Example with CloudNativePG:
+```yaml
+# Mount the secret's 'uri' key as DATABASE_URI
+env:
+  - name: DATABASE_URI
+    valueFrom:
+      secretKeyRef:
+        name: mydb-app
+        key: uri
+```
+
 ## When to Use
 
 **Use `pgdb.OpenPool()`** (this package) when:
diff --git a/database/pgdb/pool.go b/database/pgdb/pool.go
index 1731a3b..7a7b4e9 100644
--- a/database/pgdb/pool.go
+++ b/database/pgdb/pool.go
@@ -51,25 +51,45 @@ func DefaultPoolOptions() PoolOptions {
 
 // OpenPool opens a native pgx connection pool with the specified configuration
 // This is the primary and recommended way to connect to PostgreSQL
+//
+// Configuration precedence (highest to lowest):
+// 1. DATABASE_URI environment variable (pool settings can be included in URI)
+// 2. DATABASE_CONFIG_FILE environment variable (YAML)
+// 3. Default config files (database.yaml, /vault/secrets/database.yaml)
+//
+// When using DATABASE_URI, pool settings (pool_max_conns, pool_min_conns, etc.)
+// can be specified in the URI query string and PoolOptions are ignored.
+// When using config files, PoolOptions are applied.
 func OpenPool(ctx context.Context, options PoolOptions) (*pgxpool.Pool, error) {
-	// Find and read config file
-	pgCfg, err := findAndParseConfig(options.ConfigFiles)
-	if err != nil {
-		return nil, err
-	}
+	var poolConfig *pgxpool.Config
+	var err error
 
-	// Create pool config from PostgreSQL config
-	poolConfig, err := CreatePoolConfig(pgCfg)
-	if err != nil {
-		return nil, err
-	}
+	// Check DATABASE_URI environment variable first (highest priority)
+	if uri := os.Getenv("DATABASE_URI"); uri != "" {
+		poolConfig, err = pgxpool.ParseConfig(uri)
+		if err != nil {
+			return nil, fmt.Errorf("failed to parse DATABASE_URI: %w", err)
+		}
+		// Pool settings from URI are used; PoolOptions ignored
+	} else {
+		// Fall back to config file approach
+		pgCfg, err := findAndParseConfig(options.ConfigFiles)
+		if err != nil {
+			return nil, err
+		}
 
-	// Apply pool-specific settings
-	poolConfig.MinConns = options.MinConns
-	poolConfig.MaxConns = options.MaxConns
-	poolConfig.MaxConnLifetime = options.MaxConnLifetime
-	poolConfig.MaxConnIdleTime = options.MaxConnIdleTime
-	poolConfig.HealthCheckPeriod = options.HealthCheckPeriod
+		poolConfig, err = CreatePoolConfig(pgCfg)
+		if err != nil {
+			return nil, err
+		}
+
+		// Apply pool-specific settings from PoolOptions (config files don't support these)
+		poolConfig.MinConns = options.MinConns
+		poolConfig.MaxConns = options.MaxConns
+		poolConfig.MaxConnLifetime = options.MaxConnLifetime
+		poolConfig.MaxConnIdleTime = options.MaxConnIdleTime
+		poolConfig.HealthCheckPeriod = options.HealthCheckPeriod
+	}
 
 	// Create the pool
 	pool, err := pgxpool.NewWithConfig(ctx, poolConfig)
diff --git a/database/pgdb/pool_test.go b/database/pgdb/pool_test.go
index 02f1db8..efd14e1 100644
--- a/database/pgdb/pool_test.go
+++ b/database/pgdb/pool_test.go
@@ -1,6 +1,9 @@
 package pgdb
 
 import (
+	"context"
+	"os"
+	"strings"
 	"testing"
 	"time"
 
@@ -149,3 +152,63 @@ func TestCreatePoolConfigDefaults(t *testing.T) {
 		t.Errorf("Expected default Port=5432, got %d", poolCfg.ConnConfig.Port)
 	}
 }
+
+func TestOpenPoolWithDatabaseURI(t *testing.T) {
+	if testing.Short() {
+		t.Skip("skipping integration test")
+	}
+
+	// This test requires a running PostgreSQL instance
+	uri := os.Getenv("TEST_DATABASE_URI")
+	if uri == "" {
+		t.Skip("TEST_DATABASE_URI not set")
+	}
+
+	ctx := context.Background()
+	t.Setenv("DATABASE_URI", uri)
+
+	pool, err := OpenPool(ctx, DefaultPoolOptions())
+	if err != nil {
+		t.Fatalf("OpenPool failed: %v", err)
+	}
+	defer pool.Close()
+
+	// Verify connection works
+	var result int
+	err = pool.QueryRow(ctx, "SELECT 1").Scan(&result)
+	if err != nil {
+		t.Fatalf("query failed: %v", err)
+	}
+	if result != 1 {
+		t.Errorf("expected 1, got %d", result)
+	}
+}
+
+func TestDatabaseURIPrecedence(t *testing.T) {
+	// Test that DATABASE_URI takes precedence over config files
+	// We use localhost with a port that's unlikely to have postgres running
+	ctx, cancel := context.WithTimeout(context.Background(), 2*time.Second)
+	defer cancel()
+
+	// Set DATABASE_URI to a parseable URI pointing to a non-listening port
+	t.Setenv("DATABASE_URI", "postgres://testuser:testpass@127.0.0.1:59999/testdb?connect_timeout=1")
+
+	// Set config files to a nonexistent path - if this were used, we'd get
+	// "config file not found" error instead of connection refused
+	opts := DefaultPoolOptions()
+	opts.ConfigFiles = []string{"/nonexistent/path/database.yaml"}
+
+	_, err := OpenPool(ctx, opts)
+
+	// Should fail with connection error (not config file error)
+	// This proves DATABASE_URI was used instead of config files
+	if err == nil {
+		t.Fatal("expected error, got nil")
+	}
+
+	// The error should be about connection failure, not about missing config file
+	errStr := err.Error()
+	if strings.Contains(errStr, "config file") || strings.Contains(errStr, "no such file") {
+		t.Errorf("expected connection error, got config file error: %v", err)
+	}
+}