diff --git a/pkg/options/options.go b/pkg/options/options.go
index ebb9e46b12..64db8d198f 100644
--- a/pkg/options/options.go
+++ b/pkg/options/options.go
@@ -72,7 +72,7 @@ var NooBaaImage = ContainerImage
 
 // DBImage is the default db image url
 // it can be overridden for testing or different registry locations.
-var DBImage = "quay.io/sclorg/postgresql-15-c9s"
+var DBImage = "quay.io/sclorg/postgresql-16-c9s"
 
 // Psql12Image is the default postgres12 db image url
 // currently it can not be overridden.
diff --git a/pkg/system/phase2_creating.go b/pkg/system/phase2_creating.go
index a2680069cd..f27252d40a 100644
--- a/pkg/system/phase2_creating.go
+++ b/pkg/system/phase2_creating.go
@@ -33,6 +33,7 @@ import (
 	"k8s.io/apimachinery/pkg/runtime"
 	"k8s.io/apimachinery/pkg/util/intstr"
 	"sigs.k8s.io/controller-runtime/pkg/client"
+	"sigs.k8s.io/controller-runtime/pkg/controller/controllerutil"
 )
 
 const (
@@ -130,6 +131,12 @@ func (r *Reconciler) ReconcilePhaseCreatingForMainClusters() error {
 			return err
 		}
 	}
+
+	// Once the db is reconciled, upgrade it if it is required
+	if err := r.UpgradeDb(); err != nil {
+		return err
+	}
+
 	// create bucket logging pvc if not provided by user for 'Guaranteed' logging in ODF env
 	if r.NooBaa.Spec.BucketLogging.LoggingType == nbv1.BucketLoggingTypeGuaranteed {
 		if err := r.ReconcileODFBucketLoggingPVC(); err != nil {
@@ -152,6 +159,47 @@ func (r *Reconciler) ReconcilePhaseCreatingForMainClusters() error {
 	return nil
 }
 
+func (r *Reconciler) UpgradeDb() error {
+	var result controllerutil.OperationResult
+	var err error
+
+	// Check the need for upgrade
+	if r.checkDBUpgradeReqd() {
+		r.NooBaa.Status.PostgresUpdatePhase = nbv1.UpgradePhaseUpgrade
+	} else {
+		if r.NooBaa.Status.PostgresUpdatePhase == nbv1.UpgradePhaseFinished {
+			_, err = controllerutil.CreateOrUpdate(
+				r.Ctx, r.Client, r.NooBaaPostgresDB, func() error {
+					r.unSetPGUpgradeEnvInSTS()
+					return nil
+				},
+			)
+			return err
+		} else {
+			// No need of upgrade and also env for upgrade is removed
+			return nil
+		}
+	}
+
+	// Upgrade db image in db sts
+	if r.NooBaa.Status.PostgresUpdatePhase != nbv1.UpgradePhaseFinished {
+		result, err = controllerutil.CreateOrUpdate(
+			r.Ctx, r.Client, r.NooBaaPostgresDB, func() error {
+				r.setPGUpgradeEnvInSTS()
+				r.updateDBImageForUpgrade()
+				return nil
+			},
+		)
+	}
+
+	// Set the upgrade finished flag here and refer the same to remove the
+	// POSTGRES_UPGRADE flag in next reconcile.
+	if result == controllerutil.OperationResultUpdated {
+		r.NooBaa.Status.PostgresUpdatePhase = nbv1.UpgradePhaseFinished
+	}
+	return err
+}
+
 // SetDesiredServiceAccount updates the ServiceAccount as desired for reconciling
 func (r *Reconciler) SetDesiredServiceAccount() error {
 	if r.ServiceAccount.Annotations == nil {
@@ -223,6 +271,82 @@ func (r *Reconciler) SetDesiredServiceDBForPostgres() error {
 	return nil
 }
 
+func (r *Reconciler) updateDBImageForUpgrade() {
+	var podSpec = &r.NooBaaPostgresDB.Spec.Template.Spec
+
+	for i := range podSpec.Containers {
+		c := &podSpec.Containers[i]
+		if c.Name == "db" {
+			// Fetch the DB image from options.go
+			c.Image = options.DBImage
+			if r.NooBaa.Spec.DBResources != nil {
+				c.Resources = *r.NooBaa.Spec.DBResources
+			}
+
+			c.Lifecycle = &corev1.Lifecycle{
+				PreStop: &corev1.LifecycleHandler{
+					Exec: &corev1.ExecAction{
+						Command: []string{"/bin/sh", "-c", "pg_ctl -D /var/lib/pgsql/data/userdata/ -w -t 60 -m fast stop"},
+					},
+				},
+			}
+
+		}
+	}
+}
+
+// Check wheter db upgrade required
+func (r *Reconciler) checkDBUpgradeReqd() bool {
+	for _, container := range r.NooBaaPostgresDB.Spec.Template.Spec.Containers {
+		if container.Name == "db" {
+			if container.Image != options.DBImage {
+				return true
+			}
+			break
+		}
+	}
+	return false
+}
+
+// Set env "POSTGRESQL_UPGRADE=copy" in PG sts to iniate the upgrade
+func (r *Reconciler) setPGUpgradeEnvInSTS() {
+	for i, container := range r.NooBaaPostgresDB.Spec.Template.Spec.Containers {
+		if container.Name == "db" {
+			for _, env := range container.Env {
+				if env.Name == "POSTGRESQL_UPGRADE" {
+					return
+				}
+			}
+			envVars := container.Env
+			newEnvVar := corev1.EnvVar{
+				Name:  "POSTGRESQL_UPGRADE",
+				Value: "copy",
+			}
+
+			envVars = append(envVars, newEnvVar)
+			r.NooBaaPostgresDB.Spec.Template.Spec.Containers[i].Env = envVars
+			return
+		}
+	}
+}
+
+// unSet env "POSTGRESQL_UPGRADE=copy" in PG sts after upgrade
+func (r *Reconciler) unSetPGUpgradeEnvInSTS() {
+	for i, container := range r.NooBaaPostgresDB.Spec.Template.Spec.Containers {
+		if container.Name == "db" {
+			newEnvVars := []corev1.EnvVar{}
+			for _, env := range container.Env {
+				if env.Name != "POSTGRESQL_UPGRADE" {
+					newEnvVars = append(newEnvVars, env)
+				}
+			}
+			r.NooBaaPostgresDB.Spec.Template.Spec.Containers[i].Env = newEnvVars
+			return
+		}
+	}
+	r.NooBaa.Status.PostgresUpdatePhase = nbv1.UpgradePhaseNone
+}
+
 // SetDesiredNooBaaDB updates the NooBaaDB as desired for reconciling
 func (r *Reconciler) SetDesiredNooBaaDB() error {
 	var NooBaaDBTemplate *appsv1.StatefulSet = nil