diff --git a/.env.local.example b/.env.local.example
index a572ed9126..cff2c05989 100644
--- a/.env.local.example
+++ b/.env.local.example
@@ -2,7 +2,7 @@
 #
 # QUICK START:
 #   1. cp .env.local.example .env
-#   2. docker-compose up -d
+#   2. docker compose up -d
 #   3. npm run setup
 #
 # That's it! The setup script will:
diff --git a/README.md b/README.md
index f33e4ce46d..86d9c5d972 100644
--- a/README.md
+++ b/README.md
@@ -190,7 +190,7 @@ npm install
 cp .env.local.example .env
 
 # 3. Start database
-docker-compose up -d
+docker compose up -d
 
 # 4. Run setup (generates seeds, starts API, registers admin)
 npm run setup
@@ -251,10 +251,10 @@ Seed data is stored in `migration/seed/` and can be customized as needed.
 ### Docker Commands
 
 ```bash
-docker-compose up -d          # Start database
-docker-compose logs db-init   # Check if database was created
-docker-compose down           # Stop database
-docker-compose down -v        # Stop and delete data
+docker compose up -d          # Start database
+docker compose logs db-init   # Check if database was created
+docker compose down           # Stop database
+docker compose down -v        # Stop and delete data
 docker logs dfx-mssql         # View database logs
 ```
 
diff --git a/scripts/setup.sh b/scripts/setup.sh
index 08bf88e798..156a6764e2 100755
--- a/scripts/setup.sh
+++ b/scripts/setup.sh
@@ -76,12 +76,12 @@ fi
 # Start database
 echo ""
 echo "🗄️  Starting database..."
-docker-compose up -d
+docker compose up -d
 
 # Wait for database initialization
 echo "⏳ Waiting for database initialization..."
 for i in {1..30}; do
-  if docker-compose logs db-init 2>&1 | grep -q "Database 'dfx' ready"; then
+  if docker compose logs db-init 2>&1 | grep -q "Database 'dfx' ready"; then
     echo "✅ Database ready"
     break
   fi