diff --git a/backend/hermes/.env b/backend/hermes/.env
new file mode 100644
index 0000000..c43a93a
--- /dev/null
+++ b/backend/hermes/.env
@@ -0,0 +1,5 @@
+DATABASE_URL=postgresql+psycopg://olympus:FsFs03285310!!!@olympus-db:5432/olympus
+
+APP_NAME=Hermes API
+
+APP_VERSION=0.1.0
diff --git a/backend/hermes/app/__pycache__/main.cpython-314.pyc b/backend/hermes/app/__pycache__/main.cpython-314.pyc
index 06c55d6..1be2f4b 100644
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diff --git a/backend/hermes/app/core/__pycache__/config.cpython-314.pyc b/backend/hermes/app/core/__pycache__/config.cpython-314.pyc
new file mode 100644
index 0000000..7ed23be
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diff --git a/backend/hermes/app/core/config.py b/backend/hermes/app/core/config.py
new file mode 100644
index 0000000..2a3355c
--- /dev/null
+++ b/backend/hermes/app/core/config.py
@@ -0,0 +1,16 @@
+from pydantic_settings import BaseSettings, SettingsConfigDict
+
+
+class Settings(BaseSettings):
+    app_name: str = "Hermes API"
+    app_version: str = "0.1.0"
+
+    database_url: str
+
+    model_config = SettingsConfigDict(
+        env_file=".env",
+        case_sensitive=False
+    )
+
+
+settings = Settings()
\ No newline at end of file
diff --git a/backend/hermes/app/db/__pycache__/database.cpython-314.pyc b/backend/hermes/app/db/__pycache__/database.cpython-314.pyc
new file mode 100644
index 0000000..0d3d656
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diff --git a/backend/hermes/app/db/__pycache__/health.cpython-314.pyc b/backend/hermes/app/db/__pycache__/health.cpython-314.pyc
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index 0000000..7493d1d
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diff --git a/backend/hermes/app/db/database.py b/backend/hermes/app/db/database.py
new file mode 100644
index 0000000..a747234
--- /dev/null
+++ b/backend/hermes/app/db/database.py
@@ -0,0 +1,29 @@
+from sqlalchemy import create_engine
+from sqlalchemy.orm import DeclarativeBase
+from sqlalchemy.orm import sessionmaker
+
+from app.core.config import settings
+
+
+engine = create_engine(
+    settings.database_url,
+    echo=False
+)
+
+SessionLocal = sessionmaker(
+    autocommit=False,
+    autoflush=False,
+    bind=engine
+)
+
+
+class Base(DeclarativeBase):
+    pass
+
+
+def get_db():
+    db = SessionLocal()
+    try:
+        yield db
+    finally:
+        db.close()
\ No newline at end of file
diff --git a/backend/hermes/app/db/health.py b/backend/hermes/app/db/health.py
new file mode 100644
index 0000000..4cefa6e
--- /dev/null
+++ b/backend/hermes/app/db/health.py
@@ -0,0 +1,12 @@
+from sqlalchemy import text
+
+from app.db.database import engine
+
+
+def check_database() -> bool:
+    try:
+        with engine.connect() as connection:
+            connection.execute(text("SELECT 1"))
+        return True
+    except Exception:
+        return False
\ No newline at end of file
diff --git a/backend/hermes/app/main.py b/backend/hermes/app/main.py
index f98f36b..7db3816 100644
--- a/backend/hermes/app/main.py
+++ b/backend/hermes/app/main.py
@@ -1,5 +1,7 @@
 from fastapi import FastAPI
 
+from app.db.health import check_database
+
 app = FastAPI(
     title="Hermes API",
     version="0.1.0",
@@ -9,9 +11,15 @@ app = FastAPI(
 
 @app.get("/")
 def root():
-    return {"service": "Hermes", "status": "running"}
+    return {
+        "service": "Hermes",
+        "status": "running"
+    }
 
 
 @app.get("/health")
 def health():
-    return {"status": "healthy"}
+    return {
+        "status": "healthy",
+        "database": check_database()
+    }
\ No newline at end of file