diff --git a/nautilus_core/cli/src/database/postgres.rs b/nautilus_core/cli/src/database/postgres.rs
index 07f43d390b9b..3b5acf03f0b0 100644
--- a/nautilus_core/cli/src/database/postgres.rs
+++ b/nautilus_core/cli/src/database/postgres.rs
@@ -37,6 +37,7 @@ pub async fn run_database_command(opt: DatabaseOpt) -> anyhow::Result<()> {
                 &pg,
                 pg_connect_options.database,
                 pg_connect_options.password,
+                config.schema,
             )
             .await?
         }
diff --git a/nautilus_core/cli/src/opt.rs b/nautilus_core/cli/src/opt.rs
index 8ef5b9c2b1d2..1df35a0e78f2 100644
--- a/nautilus_core/cli/src/opt.rs
+++ b/nautilus_core/cli/src/opt.rs
@@ -51,6 +51,9 @@ pub struct DatabaseConfig {
     /// Password for connecting to the database
     #[arg(long)]
     pub password: Option<String>,
+    /// Directory path to the schema files
+    #[arg(long)]
+    pub schema: Option<String>,
 }
 
 #[derive(Parser, Debug, Clone)]
diff --git a/nautilus_core/infrastructure/src/sql/pg.rs b/nautilus_core/infrastructure/src/sql/pg.rs
index ad9c504e7be4..fd31fea4c917 100644
--- a/nautilus_core/infrastructure/src/sql/pg.rs
+++ b/nautilus_core/infrastructure/src/sql/pg.rs
@@ -130,7 +130,12 @@ fn get_schema_dir() -> anyhow::Result<String> {
     })
 }
 
-pub async fn init_postgres(pg: &PgPool, database: String, password: String) -> anyhow::Result<()> {
+pub async fn init_postgres(
+    pg: &PgPool,
+    database: String,
+    password: String,
+    schema_dir: Option<String>,
+) -> anyhow::Result<()> {
     info!("Initializing Postgres database with target permissions and schema");
     // create public schema
     match sqlx::query("CREATE SCHEMA IF NOT EXISTS public;")
@@ -155,7 +160,7 @@ pub async fn init_postgres(pg: &PgPool, database: String, password: String) -> a
         }
     }
     // execute all the sql files in schema dir
-    let schema_dir = get_schema_dir()?;
+    let schema_dir = schema_dir.unwrap_or_else(|| get_schema_dir().unwrap());
     let mut sql_files =
         std::fs::read_dir(schema_dir)?.collect::<Result<Vec<_>, std::io::Error>>()?;
     for file in &mut sql_files {