diff --git a/README.md b/README.md
index 57e9874..d7ff104 100644
--- a/README.md
+++ b/README.md
@@ -8,8 +8,6 @@ Create a OAuth client at [google](https://console.cloud.google.com/)
 
 Create vapid keys for webpush this can be done via `npx web-push generate-vapid-keys`
 
-When using the default sqliteDb create a `.data` folder in the root of the project.
-
 ```dotenv
 #Nuxt
 NUXT_GOOGLE_CLIENT_ID=<google_client_id>
@@ -28,7 +26,6 @@ API_WEBPUSH_PRIVATE_KEY=<private_key>
 
 run `just dev` to start the nuxt dev server and the api server
 
-
 ## Deployment via Nix
 
 ### flake.nix
diff --git a/api/orm/src/lib.rs b/api/orm/src/lib.rs
index 0f367e1..134f032 100644
--- a/api/orm/src/lib.rs
+++ b/api/orm/src/lib.rs
@@ -1,3 +1,5 @@
+use std::{fs, io, path::Path};
+
 use migration::{Migrator, MigratorTrait};
 use sea_orm::{ConnectOptions, Database, DatabaseConnection, DbErr};
 use thiserror::Error;
@@ -12,9 +14,24 @@ pub enum OrmError {
     DbError(#[from] DbErr),
     #[error("unsupported database backend")]
     UnsupportedBackend,
+    #[error("failed to create sqlite folder")]
+    FailedToCreateFolder(#[from] io::Error),
 }
 
 pub async fn init_db(url: &str) -> Result<OrmConnection, OrmError> {
+    // If using SQLite, extract the file path and create parent directories
+    if let Some(path_str) = url.strip_prefix("sqlite:") {
+        let clean_path = path_str.split('?').next().unwrap_or(path_str);
+
+        let file_path = clean_path.strip_prefix("//").unwrap_or(clean_path);
+
+        if let Some(parent) = Path::new(file_path).parent()
+            && !parent.as_os_str().is_empty()
+        {
+            fs::create_dir_all(parent).map_err(OrmError::FailedToCreateFolder)?;
+        }
+    }
+
     let mut options = ConnectOptions::new(url);
     options.sqlx_logging(false);
 
diff --git a/server/utils/auth.ts b/server/utils/auth.ts
index 51e2ac1..9aec939 100644
--- a/server/utils/auth.ts
+++ b/server/utils/auth.ts
@@ -1,3 +1,5 @@
+import fs from "node:fs";
+import path from "node:path";
 import { DatabaseSync } from "node:sqlite";
 import { apiKey } from "@better-auth/api-key";
 import { betterAuth } from "better-auth";
@@ -14,6 +16,11 @@ export function getDatabaseConnection() {
 	}
 
 	const sqlitePath = dbUrl.replace(/^(sqlite:|file:)/, "");
+	const dir = path.dirname(sqlitePath);
+	if (dir && dir !== ".") {
+		fs.mkdirSync(dir, { recursive: true });
+	}
+
 	return new DatabaseSync(sqlitePath);
 }