diff --git a/app/Actions/Server/UpdateCoolify.php b/app/Actions/Server/UpdateCoolify.php
index 3c60c34379..ddfc6578e4 100644
--- a/app/Actions/Server/UpdateCoolify.php
+++ b/app/Actions/Server/UpdateCoolify.php
@@ -2,7 +2,9 @@
 
 namespace App\Actions\Server;
 
+use App\Jobs\DatabaseBackupJob;
 use App\Models\Server;
+use App\Models\StandalonePostgresql;
 use App\Services\CoolifyUpgradeStatus;
 use Illuminate\Support\Facades\Http;
 use Illuminate\Support\Facades\Log;
@@ -22,6 +24,7 @@ class UpdateCoolify
     public function handle($manual_update = false)
     {
         if (isDev()) {
+            $this->backupDatabase();
             Sleep::for(10)->seconds();
 
             return;
@@ -110,11 +113,28 @@ class UpdateCoolify
             );
         }
 
+        $this->backupDatabase();
         $this->update();
         $settings->new_version_available = false;
         $settings->save();
     }
 
+    private function backupDatabase(): void
+    {
+        $backup = StandalonePostgresql::find(0)?->scheduledBackups()->first();
+        if (! $backup || ! instanceSettings()->is_backup_before_update_enabled) {
+            return;
+        }
+
+        // Runs inline so the update waits for the result. dispatchSync() would go through the job's
+        // WithoutOverlapping middleware, which silently drops the run while the scheduled backup is running.
+        $job = new DatabaseBackupJob($backup);
+        $job->handle();
+        if ($job->backup_log?->status !== 'success') {
+            throw new \Exception('The database backup failed, so the update was not started.');
+        }
+    }
+
     private function update()
     {
         $this->ensureNoUpgradeIsRunning();
diff --git a/app/Livewire/SettingsBackup.php b/app/Livewire/SettingsBackup.php
index a7e8b89488..0f92b2ad34 100644
--- a/app/Livewire/SettingsBackup.php
+++ b/app/Livewire/SettingsBackup.php
@@ -46,6 +46,8 @@ class SettingsBackup extends Component
     #[Validate(['required'])]
     public string $postgres_password;
 
+    public bool $is_backup_before_update_enabled;
+
     public function mount()
     {
         if (! isInstanceAdmin()) {
@@ -75,6 +77,7 @@ class SettingsBackup extends Component
             $this->executions = $this->backup?->executions ?? [];
         }
         $this->settings = $settings;
+        $this->is_backup_before_update_enabled = $settings->is_backup_before_update_enabled;
         $this->s3s = $s3s;
     }
 
@@ -136,6 +139,27 @@ class SettingsBackup extends Component
         }
     }
 
+    public function instantSave()
+    {
+        try {
+            $this->authorize('update', $this->settings);
+            $this->settings->is_backup_before_update_enabled = $this->is_backup_before_update_enabled;
+            $changedFields = auditChangedFields($this->settings);
+            $this->settings->save();
+            if ($changedFields !== []) {
+                auditLog('ui.instance.settings.updated', [
+                    'team_id' => null,
+                    'resource' => 'instance',
+                    'section' => 'backup',
+                    'changed_fields' => $changedFields,
+                ]);
+            }
+            $this->dispatch('success', 'Backup updated.');
+        } catch (\Throwable $e) {
+            return handleError($e, $this);
+        }
+    }
+
     public function submit()
     {
         try {
diff --git a/app/Models/InstanceSettings.php b/app/Models/InstanceSettings.php
index 16a1d7ea30..87a7356920 100644
--- a/app/Models/InstanceSettings.php
+++ b/app/Models/InstanceSettings.php
@@ -21,6 +21,7 @@ class InstanceSettings extends Model
         'public_port_max',
         'do_not_track',
         'is_auto_update_enabled',
+        'is_backup_before_update_enabled',
         'is_registration_enabled',
         'disable_registration_when_oauth_enabled',
         'next_channel',
@@ -90,6 +91,7 @@ class InstanceSettings extends Model
 
         'allowed_ip_ranges' => 'array',
         'is_auto_update_enabled' => 'boolean',
+        'is_backup_before_update_enabled' => 'boolean',
         'is_registration_enabled' => 'boolean',
         'disable_registration_when_oauth_enabled' => 'boolean',
         'auto_update_frequency' => 'string',
diff --git a/database/migrations/2026_10_12_002632_add_is_backup_before_update_enabled_to_instance_settings_table.php b/database/migrations/2026_10_12_002632_add_is_backup_before_update_enabled_to_instance_settings_table.php
new file mode 100644
index 0000000000..ff6cc2509e
--- /dev/null
+++ b/database/migrations/2026_10_12_002632_add_is_backup_before_update_enabled_to_instance_settings_table.php
@@ -0,0 +1,28 @@
+<?php
+
+use Illuminate\Database\Migrations\Migration;
+use Illuminate\Database\Schema\Blueprint;
+use Illuminate\Support\Facades\Schema;
+
+return new class extends Migration
+{
+    /**
+     * Run the migrations.
+     */
+    public function up(): void
+    {
+        Schema::table('instance_settings', function (Blueprint $table) {
+            $table->boolean('is_backup_before_update_enabled')->default(true);
+        });
+    }
+
+    /**
+     * Reverse the migrations.
+     */
+    public function down(): void
+    {
+        Schema::table('instance_settings', function (Blueprint $table) {
+            $table->dropColumn('is_backup_before_update_enabled');
+        });
+    }
+};
diff --git a/resources/views/livewire/settings-backup.blade.php b/resources/views/livewire/settings-backup.blade.php
index c89bf148cf..05673e9816 100644
--- a/resources/views/livewire/settings-backup.blade.php
+++ b/resources/views/livewire/settings-backup.blade.php
@@ -8,7 +8,8 @@
         @if ($server->isFunctional())
             @if (isset($database) && isset($backup))
                 <form wire:submit="submit">
-                    <x-unsaved-bar action="submit" />
+                    {{-- Exclude is_backup_before_update_enabled (instantSave) so the bar does not flash. --}}
+                    <x-unsaved-bar action="submit" targets="description" />
 
                     <x-application.settings-section title="Instance database">
                         <div class="grid gap-4 lg:grid-cols-2">
@@ -26,6 +27,18 @@
                 <livewire:project.database.backup-edit :backup="$backup" :available-s3-storages="$s3s"
                     :status="data_get($database, 'status')" />
 
+                <x-application.settings-section title="Backup before update"
+                    description="Back up the Coolify database before an update is installed. If the backup fails, the update is not installed.">
+                    <div class="max-w-md">
+                        <x-forms.listbox id="is_backup_before_update_enabled" label="Database backup"
+                            onChange="instantSave" :options="[
+                                ['value' => true, 'label' => 'Enabled'],
+                                ['value' => false, 'label' => 'Disabled'],
+                            ]"
+                            helper="Runs this backup once before every manual or automatic update, in addition to the schedule." />
+                    </div>
+                </x-application.settings-section>
+
                 <livewire:project.database.backup-executions :backup="$backup" />
             @else
                 <x-application.settings-section title="Instance backup">
diff --git a/tests/Feature/SettingsBackupBeforeUpdateTest.php b/tests/Feature/SettingsBackupBeforeUpdateTest.php
new file mode 100644
index 0000000000..211e37ffd5
--- /dev/null
+++ b/tests/Feature/SettingsBackupBeforeUpdateTest.php
@@ -0,0 +1,47 @@
+<?php
+
+use App\Livewire\SettingsBackup;
+use App\Models\InstanceSettings;
+use App\Models\Server;
+use App\Models\Team;
+use App\Models\User;
+use Illuminate\Foundation\Testing\RefreshDatabase;
+use Illuminate\Support\Once;
+use Livewire\Livewire;
+
+uses(RefreshDatabase::class);
+
+beforeEach(function () {
+    Server::flushIdentityMap();
+    $rootTeam = Team::factory()->create(['id' => 0]);
+    Server::factory()->create(['id' => 0, 'team_id' => 0, 'ip' => '127.0.0.1']);
+    InstanceSettings::forceCreate(['id' => 0]);
+    Once::flush();
+
+    $this->user = User::factory()->create();
+    $rootTeam->members()->attach($this->user->id, ['role' => 'admin']);
+    $this->actingAs($this->user);
+    session(['currentTeam' => ['id' => 0]]);
+});
+
+test('instance admin can turn the backup before update off', function () {
+    Livewire::test(SettingsBackup::class)
+        ->assertSet('is_backup_before_update_enabled', true)
+        ->set('is_backup_before_update_enabled', false)
+        ->call('instantSave')
+        ->assertDispatched('success');
+
+    expect(InstanceSettings::find(0)->is_backup_before_update_enabled)->toBeFalse();
+});
+
+test('team member cannot change the backup before update', function () {
+    $component = Livewire::test(SettingsBackup::class);
+    Team::find(0)->members()->updateExistingPivot($this->user->id, ['role' => 'member']);
+    $this->user->refresh();
+
+    $component->set('is_backup_before_update_enabled', false)
+        ->call('instantSave')
+        ->assertDispatched('error', 'This action is unauthorized.');
+
+    expect(InstanceSettings::find(0)->is_backup_before_update_enabled)->toBeTrue();
+});
diff --git a/tests/Unit/UpdateCoolifyTest.php b/tests/Unit/UpdateCoolifyTest.php
index ddc8c2546b..087fc03514 100644
--- a/tests/Unit/UpdateCoolifyTest.php
+++ b/tests/Unit/UpdateCoolifyTest.php
@@ -3,7 +3,11 @@
 use App\Actions\Server\UpdateCoolify;
 use App\Livewire\Settings\Updates;
 use App\Models\InstanceSettings;
+use App\Models\PrivateKey;
+use App\Models\ScheduledDatabaseBackup;
 use App\Models\Server;
+use App\Models\StandaloneDocker;
+use App\Models\StandalonePostgresql;
 use App\Models\Team;
 use App\Models\User;
 use App\Support\RemoteProcessCommand;
@@ -11,8 +15,10 @@ use Illuminate\Foundation\Testing\RefreshDatabase;
 use Illuminate\Support\Facades\Cache;
 use Illuminate\Support\Facades\Http;
 use Illuminate\Support\Facades\Log;
+use Illuminate\Support\Facades\Notification;
 use Illuminate\Support\Facades\Process;
 use Illuminate\Support\Facades\Queue;
+use Illuminate\Support\Facades\Storage;
 use Illuminate\Support\Once;
 use Livewire\Livewire;
 use Spatie\Activitylog\Models\Activity;
@@ -53,6 +59,40 @@ function updateCoolifyTestActionWithStatus(string $status): UpdateCoolify
     };
 }
 
+function updateCoolifyTestCreateInstanceBackup(): void
+{
+    Storage::fake('ssh-keys');
+    Notification::fake();
+    Server::query()->whereKey(0)->update(['private_key_id' => PrivateKey::factory()->create(['team_id' => 0])->id]);
+    Server::flushIdentityMap();
+    StandalonePostgresql::forceCreate([
+        'id' => 0,
+        'name' => 'coolify-db',
+        'postgres_password' => 'password',
+        'destination_type' => StandaloneDocker::class,
+        'destination_id' => 0,
+    ]);
+    ScheduledDatabaseBackup::create([
+        'frequency' => '0 0 * * *',
+        'database_id' => 0,
+        'database_type' => StandalonePostgresql::class,
+        'team_id' => 0,
+    ]);
+}
+
+function updateCoolifyTestPrepareUpdate(array $settings = []): void
+{
+    Queue::fake();
+    config([
+        'app.env' => 'testing',
+        'constants.coolify.version' => '4.0.9',
+        'constants.ssh.mux_enabled' => false,
+    ]);
+    Http::fake(['*' => Http::response(['coolify' => ['v4' => ['version' => '4.0.10']]], 200)]);
+    updateCoolifyTestCreateRootServerAndSettings($settings);
+    updateCoolifyTestCreateInstanceBackup();
+}
+
 afterEach(function () {
     Mockery::close();
 });
@@ -363,3 +403,33 @@ it('starts an upgrade when the previous upgrade status is older than the lock ex
     expect(RemoteProcessCommand::read(Activity::query()->latest('id')->first()))
         ->toContain("bash /data/coolify/source/upgrade.sh '4.0.10'");
 });
+
+it('backs up the instance database before the update', function () {
+    updateCoolifyTestPrepareUpdate();
+    Process::fake(['*du -b*' => '128', '*' => '']);
+
+    (new UpdateCoolify)->handle(manual_update: true);
+
+    Process::assertRan(fn ($process) => str_contains($process->command, 'pg_dump'));
+    expect(RemoteProcessCommand::read(Activity::query()->latest('id')->first()))
+        ->toContain("bash /data/coolify/source/upgrade.sh '4.0.10'");
+});
+
+it('skips the backup before the update when it is disabled', function () {
+    updateCoolifyTestPrepareUpdate(['is_backup_before_update_enabled' => false]);
+    Process::fake();
+
+    (new UpdateCoolify)->handle(manual_update: true);
+
+    Process::assertNotRan(fn ($process) => str_contains($process->command, 'pg_dump'));
+    expect(Activity::query()->count())->toBe(1);
+});
+
+it('does not start the update when the instance backup fails', function () {
+    updateCoolifyTestPrepareUpdate();
+    Process::fake(['*pg_dump*' => Process::result(exitCode: 1), '*' => '']);
+
+    expect(fn () => (new UpdateCoolify)->handle(manual_update: true))
+        ->toThrow(Exception::class, 'The database backup failed, so the update was not started.')
+        ->and(Activity::query()->count())->toBe(0);
+});