diff --git a/Dockerfile b/Dockerfile
index ea22e7eba..a7df83a8a 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -218,7 +218,7 @@ RUN apk add --no-cache \
     chown pgadmin:root /pgadmin4/config_distro.py && \
     chmod g=u /pgadmin4/config_distro.py && \
     chmod g=u /etc/passwd && \
-    setcap CAP_NET_BIND_SERVICE=+eip /usr/bin/python3.13 && \
+    setcap CAP_NET_BIND_SERVICE=+eip /usr/bin/python3.12 && \
     echo "pgadmin ALL = NOPASSWD: /usr/sbin/postfix start" > /etc/sudoers.d/postfix && \
     echo "pgadminr ALL = NOPASSWD: /usr/sbin/postfix start" >> /etc/sudoers.d/postfix
 
diff --git a/docs/en_US/release_notes_9_0.rst b/docs/en_US/release_notes_9_0.rst
index 756ad2de3..3a6dd3fc8 100644
--- a/docs/en_US/release_notes_9_0.rst
+++ b/docs/en_US/release_notes_9_0.rst
@@ -46,3 +46,4 @@ Bug fixes
   | `Issue #8299 <https://github.com/pgadmin-org/pgadmin4/issues/8299>`_ -  Ensure master password pop up is not shown on setting MASTER_PASSWORD_REQUIRED to false.
   | `Issue #8309 <https://github.com/pgadmin-org/pgadmin4/issues/8309>`_ -  Remove the option "With no data (concurrently)" from Refresh MATERIALIZED VIEW context menu.
   | `Issue #8320 <https://github.com/pgadmin-org/pgadmin4/issues/8320>`_ -  Fix an issue where wrong information is shown after using the filter on the Dashboard> State tab.
+  | `Issue #8365 <https://github.com/pgadmin-org/pgadmin4/issues/8365>`_ -  Fixed an issue where PSQL tool is not opening if database name have HTML characters in the name.
\ No newline at end of file
diff --git a/web/pgadmin/browser/server_groups/servers/databases/__init__.py b/web/pgadmin/browser/server_groups/servers/databases/__init__.py
index 2a47cd131..c72a78662 100644
--- a/web/pgadmin/browser/server_groups/servers/databases/__init__.py
+++ b/web/pgadmin/browser/server_groups/servers/databases/__init__.py
@@ -34,7 +34,6 @@ from pgadmin.tools.sqleditor.utils.query_history import QueryHistory
 
 from pgadmin.tools.schema_diff.node_registry import SchemaDiffRegistry
 from pgadmin.model import db, Server, Database
-from pgadmin.browser.utils import underscore_escape
 from pgadmin.utils.constants import TWO_PARAM_STRING
 
 
@@ -1074,7 +1073,7 @@ class DatabaseView(PGChildNodeView):
                     status, errmsg = conn.connect()
 
                     return internal_server_error(
-                        errormsg=underscore_escape(msg))
+                        errormsg=msg)
 
         return make_json_response(success=1)
 
diff --git a/web/pgadmin/utils/driver/psycopg3/connection.py b/web/pgadmin/utils/driver/psycopg3/connection.py
index c3ca4fa42..019cff944 100644
--- a/web/pgadmin/utils/driver/psycopg3/connection.py
+++ b/web/pgadmin/utils/driver/psycopg3/connection.py
@@ -40,6 +40,7 @@ from pgadmin.utils.master_password import get_crypt_key
 from io import StringIO
 from pgadmin.utils.locker import ConnectionLocker
 from pgadmin.utils.driver import get_driver
+from pgadmin.browser.utils import underscore_escape
 
 
 # On Windows, Psycopg is not compatible with the default ProactorEventLoop.
@@ -1688,7 +1689,7 @@ Failed to reset the connection to the server due to following error:
         # if formatted_msg is false then return from the function
         if not formatted_msg:
             notices = self.get_notices()
-            errmsg = errmsg.replace('\n', '<br/>')
+            errmsg = underscore_escape(errmsg).replace('\n', '<br/>')
             return errmsg if notices == '' else notices + '\n' + errmsg
 
         # Do not append if error starts with `ERROR:` as most pg related