diff --git a/CHANGELOG.md b/CHANGELOG.md
index 07c2da9..857db6c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,25 @@
 
 ## Unreleased
 
+- You can now use the `PGCONNECT_TIMEOUT` variable to set the maximum time in
+  seconds to wait while connecting:
+
+  ```bash
+  # Wait at most 5 seconds before timing out when connecting to the database.
+  export PGCONNECT_TIMEOUT=5
+  gleam run -m squirrel
+  ```
+
+  You can also change the timeout value when using a connection string, by
+  setting the `connect_timeout` query parameter:
+
+  ```bash
+  export DATABASE_URL="postgres://user@host:5432/my_db?connect_timeout=5"
+  gleam run -m squirrel
+  ```
+
+  ([Giacomo Cavalieri](https://github.com/giacomocavalieri))
+
 - Updated code for `gleam_stdlib` `>= 0.61.0 and < 1.0.0`.
   ([Giacomo Cavalieri](https://github.com/giacomocavalieri))
 
diff --git a/README.md b/README.md
index 1f2010c..bf26967 100644
--- a/README.md
+++ b/README.md
@@ -165,7 +165,7 @@ the Postgres server where the database is defined. To connect, it will read the
 following format:
 
 ```txt
-postgres://user:password@host:port/database
+postgres://user:password@host:port/database?connect_timeout=seconds
 ```
 
 If a `DATABASE_URL` variable is not set, Squirrel will instead read your
@@ -177,6 +177,7 @@ and use the following defaults if one is not set:
 - `PGUSER`: `"postgres"`
 - `PGDATABASE`: the name of your Gleam project
 - `PGPASSWORD`: `""`
+- `PGCONNECT_TIMEOUT`: `5` seconds
 
 ## Supported types
 
diff --git a/src/squirrel.gleam b/src/squirrel.gleam
index 294ce98..b480266 100644
--- a/src/squirrel.gleam
+++ b/src/squirrel.gleam
@@ -180,7 +180,7 @@ const default_password = ""
 
 const default_port = 5432
 
-const default_timeout = 1000
+const default_timeout = 5
 
 /// Creates a `ConnectionOptions` reading values from env variables and falling
 /// back to some defaults if any required one is not set.
@@ -197,6 +197,10 @@ fn connection_options_from_variables() -> postgres.ConnectionOptions {
     envoy.get("PGPORT")
     |> result.try(int.parse)
     |> result.unwrap(default_port)
+  let timeout_seconds =
+    envoy.get("PGCONNECT_TIMEOUT")
+    |> result.try(int.parse)
+    |> result.unwrap(default_timeout)
 
   postgres.ConnectionOptions(
     host:,
@@ -204,7 +208,7 @@ fn connection_options_from_variables() -> postgres.ConnectionOptions {
     user:,
     password:,
     database:,
-    timeout: default_timeout,
+    timeout_seconds:,
   )
 }
 
@@ -213,10 +217,19 @@ fn connection_options_from_variables() -> postgres.ConnectionOptions {
 ///
 fn parse_connection_url(raw: String) -> Result(postgres.ConnectionOptions, Nil) {
   use uri <- result.try(uri.parse(raw))
-  let Uri(scheme:, userinfo:, host:, port:, path:, ..) = uri
+  let Uri(scheme:, userinfo:, host:, port:, path:, query:, ..) = uri
+
+  use parameters <- result.try(case query {
+    None -> Ok([])
+    Some(parameters) -> uri.parse_query(parameters)
+  })
   use _ <- result.try(check_scheme(scheme))
   let #(user, password) = parse_user_and_password_from_userinfo(userinfo)
   let database = parse_database_from_path(path)
+  use timeout <- result.try(case list.key_find(parameters, "connect_timeout") {
+    Error(_) -> Ok(default_timeout)
+    Ok(timeout) -> int.parse(timeout)
+  })
 
   Ok(postgres.ConnectionOptions(
     host: host |> option.unwrap(default_host),
@@ -224,7 +237,7 @@ fn parse_connection_url(raw: String) -> Result(postgres.ConnectionOptions, Nil)
     user: user |> option.unwrap(default_user),
     password: password |> option.unwrap(default_password),
     database: database |> option.unwrap(default_database),
-    timeout: default_timeout,
+    timeout_seconds: timeout,
   ))
 }
 
diff --git a/src/squirrel/internal/database/postgres.gleam b/src/squirrel/internal/database/postgres.gleam
index 0757f77..bbad097 100644
--- a/src/squirrel/internal/database/postgres.gleam
+++ b/src/squirrel/internal/database/postgres.gleam
@@ -249,7 +249,7 @@ pub type ConnectionOptions {
     user: String,
     password: String,
     database: String,
-    timeout: Int,
+    timeout_seconds: Int,
   )
 }
 
@@ -305,11 +305,17 @@ pub fn main(
   queries: List(UntypedQuery),
   connection: ConnectionOptions,
 ) -> Result(#(List(TypedQuery), List(Error)), Error) {
-  let ConnectionOptions(host:, port:, timeout:, user:, password:, database:) =
-    connection
+  let ConnectionOptions(
+    host:,
+    port:,
+    timeout_seconds:,
+    user:,
+    password:,
+    database:,
+  ) = connection
 
   use db <- result.try(
-    pg.connect(host, port, timeout)
+    pg.connect(host, port, timeout_seconds * 1000)
     |> result.map_error(error.PgCannotEstablishTcpConnection(
       host: host,
       port: port,
diff --git a/test/squirrel_test.gleam b/test/squirrel_test.gleam
index 7467bc4..d90cc9b 100644
--- a/test/squirrel_test.gleam
+++ b/test/squirrel_test.gleam
@@ -233,7 +233,7 @@ fn type_queries(
         user: user,
         database: database,
         password: "",
-        timeout: 1000,
+        timeout_seconds: 1,
       ),
     )
   }