diff --git a/.github/workflows/docker-integration-tests.yaml b/.github/workflows/docker-integration-tests.yaml
index 9713cd0a..9a3a929c 100644
--- a/.github/workflows/docker-integration-tests.yaml
+++ b/.github/workflows/docker-integration-tests.yaml
@@ -11,11 +11,13 @@ jobs:
     runs-on: ubuntu-latest
     timeout-minutes: 15
     env:
-      # Database configuration - these will be used by dev-compose.yaml
+      # Database configuration for docker-compose
+      # Note: LETTA_PG_HOST is intentionally NOT set here because:
+      # - Inside containers: uses 'letta_db' (from dev-compose.yaml defaults)
+      # - Host pytest tests: uses 'localhost' (to connect via port mapping)
       LETTA_PG_DB: letta
       LETTA_PG_USER: letta
       LETTA_PG_PASSWORD: letta
-      LETTA_PG_HOST: pgvector_db  # Internal Docker service name
       LETTA_PG_PORT: 5432
       # Server configuration for tests
       LETTA_SERVER_PASS: test_server_token
@@ -65,6 +67,7 @@ jobs:
     - name: Run tests with pytest
       env:
         PYTHONPATH: ${{ github.workspace }}:${{ env.PYTHONPATH }}
+        LETTA_PG_URI: postgresql+pg8000://${{ env.LETTA_PG_USER }}:${{ env.LETTA_PG_PASSWORD }}@localhost:${{ env.LETTA_PG_PORT }}/${{ env.LETTA_PG_DB }}
       run: |
         uv sync --extra dev --extra postgres --extra sqlite
         uv run pytest -s tests/test_client.py
diff --git a/dev-compose.yaml b/dev-compose.yaml
index 81d08478..e5ca0a93 100644
--- a/dev-compose.yaml
+++ b/dev-compose.yaml
@@ -31,9 +31,9 @@ services:
       - LETTA_PG_DB=${LETTA_PG_DB:-letta}
       - LETTA_PG_USER=${LETTA_PG_USER:-letta}
       - LETTA_PG_PASSWORD=${LETTA_PG_PASSWORD:-letta}
-      - LETTA_PG_HOST=${LETTA_PG_HOST:-pgvector_db}
+      - LETTA_PG_HOST=${LETTA_PG_HOST:-letta_db}
       - LETTA_PG_PORT=${LETTA_PG_PORT:-5432}
-      - LETTA_PG_URI=${LETTA_PG_URI:-postgresql://${LETTA_PG_USER:-letta}:${LETTA_PG_PASSWORD:-letta}@${LETTA_PG_HOST:-pgvector_db}:${LETTA_PG_PORT:-5432}/${LETTA_PG_DB:-letta}}
+      - LETTA_PG_URI=postgresql://${LETTA_PG_USER:-letta}:${LETTA_PG_PASSWORD:-letta}@${LETTA_PG_HOST:-letta_db}:${LETTA_PG_PORT:-5432}/${LETTA_PG_DB:-letta}
       - LETTA_DEBUG=True
       - OPENAI_API_KEY=${OPENAI_API_KEY}
       - GROQ_API_KEY=${GROQ_API_KEY}