diff --git a/pkg/docker/entrypoint.sh b/pkg/docker/entrypoint.sh
index 9fe5da0ba..a70e09d53 100755
--- a/pkg/docker/entrypoint.sh
+++ b/pkg/docker/entrypoint.sh
@@ -37,7 +37,13 @@ EOF
     done
 fi
 
-if [ ! -f /var/lib/pgadmin/pgadmin4.db ]; then
+# Check whether the external configuration database exists if it is being used.
+external_config_db_exists="False"
+if [ -n "${PGADMIN_CONFIG_CONFIG_DATABASE_URI}" ]; then
+     external_config_db_exists=$(cd /pgadmin4/pgadmin/utils && /venv/bin/python3 -c "from check_external_config_db import check_external_config_db; val = check_external_config_db(${PGADMIN_CONFIG_CONFIG_DATABASE_URI}); print(val)")
+fi
+
+if [ ! -f /var/lib/pgadmin/pgadmin4.db ] && [ "${external_config_db_exists}" = "False" ]; then
     if [ -z "${PGADMIN_DEFAULT_EMAIL}" ] || { [ -z "${PGADMIN_DEFAULT_PASSWORD}" ] && [ -z "${PGADMIN_DEFAULT_PASSWORD_FILE}" ]; }; then
         echo 'You need to define the PGADMIN_DEFAULT_EMAIL and PGADMIN_DEFAULT_PASSWORD or PGADMIN_DEFAULT_PASSWORD_FILE environment variables.'
         exit 1
diff --git a/web/pgadmin/utils/check_external_config_db.py b/web/pgadmin/utils/check_external_config_db.py
new file mode 100644
index 000000000..bd63b8ad5
--- /dev/null
+++ b/web/pgadmin/utils/check_external_config_db.py
@@ -0,0 +1,27 @@
+##########################################################################
+#
+# pgAdmin 4 - PostgreSQL Tools
+#
+# Copyright (C) 2013 - 2024, The pgAdmin Development Team
+# This software is released under the PostgreSQL Licence
+#
+##########################################################################
+
+from sqlalchemy import create_engine, inspect
+
+
+def check_external_config_db(database_uri):
+    """
+    Check if external config database exists if it
+    is being used.
+    """
+    engine = create_engine(database_uri)
+    try:
+        connection = engine.connect()
+        if inspect(engine).has_table("server"):
+            return True
+        return False
+    except Exception:
+        return False
+    finally:
+        connection.close()