diff --git a/scripts/shell_scripts/install.sh b/scripts/shell_scripts/install.sh
new file mode 100755
index 0000000..f8a00cb
--- /dev/null
+++ b/scripts/shell_scripts/install.sh
@@ -0,0 +1,167 @@
+#!/bin/bash
+# Installation script for LangChain Agent
+# This script sets up and runs the entire application stack
+
+set -e
+
+# Colors for output
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+NC='\033[0m' # No Color
+
+# Configuration
+SCRIPT_DIR="$(cd "$(dirname "${BASH_SOURCE[0]}")" && pwd)"
+PROJECT_ROOT="$SCRIPT_DIR"
+ENV_FILE="$PROJECT_ROOT/.env"
+
+echo -e "${GREEN}=== LangChain Agent Installation Script ===${NC}\n"
+
+# Check for required tools
+check_requirements() {
+    echo -e "${YELLOW}Checking requirements...${NC}"
+    
+    if ! command -v docker &> /dev/null; then
+        echo -e "${RED}Error: Docker is not installed. Please install Docker first.${NC}"
+        exit 1
+    fi
+    
+    if ! command -v docker-compose &> /dev/null && ! docker compose version &> /dev/null; then
+        echo -e "${RED}Error: docker-compose is not installed. Please install docker-compose first.${NC}"
+        exit 1
+    fi
+    
+    echo -e "${GREEN}✓ All requirements met${NC}\n"
+}
+
+# Create .env file if it doesn't exist
+create_env_file() {
+    if [ ! -f "$ENV_FILE" ]; then
+        echo -e "${YELLOW}Creating .env file...${NC}"
+        cat > "$ENV_FILE" <<EOF
+# Database Configuration
+POSTGRES_DB=ai_conversations
+POSTGRES_USER=myapp_user
+POSTGRES_PASSWORD=secure_password_123
+POSTGRES_PORT=5432
+
+# Backend Configuration
+BACKEND_PORT=8500
+
+# Frontend Configuration
+FRONTEND_PORT=80
+
+# Database Connection String (used by backend)
+CONN_STR=postgresql://myapp_user:secure_password_123@postgres:5432/ai_conversations
+EOF
+        echo -e "${GREEN}✓ Created .env file at $ENV_FILE${NC}"
+        echo -e "${YELLOW}  Please review and update the .env file with your preferred settings.${NC}\n"
+    else
+        echo -e "${GREEN}✓ .env file already exists${NC}\n"
+    fi
+}
+
+# Build Docker images
+build_images() {
+    echo -e "${YELLOW}Building Docker images...${NC}"
+    cd "$PROJECT_ROOT"
+    
+    # Check if docker-compose or docker compose
+    if docker compose version &> /dev/null; then
+        COMPOSE_CMD="docker compose"
+    else
+        COMPOSE_CMD="docker-compose"
+    fi
+    
+    $COMPOSE_CMD -f docker/docker-compose.prod.yml build
+    
+    echo -e "${GREEN}✓ Docker images built successfully${NC}\n"
+}
+
+# Initialize database
+init_database() {
+    echo -e "${YELLOW}Initializing database...${NC}"
+    
+    # Wait for PostgreSQL to be ready
+    echo "Waiting for PostgreSQL to start..."
+    sleep 5
+    
+    # The SQL files in scripts/init_database/ will be automatically executed
+    # by PostgreSQL's docker-entrypoint-initdb.d mechanism
+    # We just need to wait a bit for it to complete
+    
+    echo -e "${GREEN}✓ Database initialization will be handled automatically by PostgreSQL container${NC}\n"
+}
+
+# Start services
+start_services() {
+    echo -e "${YELLOW}Starting services...${NC}"
+    cd "$PROJECT_ROOT"
+    
+    # Check if docker-compose or docker compose
+    if docker compose version &> /dev/null; then
+        COMPOSE_CMD="docker compose"
+    else
+        COMPOSE_CMD="docker-compose"
+    fi
+    
+    $COMPOSE_CMD -f docker/docker-compose.prod.yml up -d
+    
+    echo -e "${GREEN}✓ Services started${NC}\n"
+}
+
+# Show status
+show_status() {
+    # Load environment variables from .env if it exists
+    if [ -f "$ENV_FILE" ]; then
+        set -a
+        source "$ENV_FILE"
+        set +a
+    fi
+    
+    echo -e "${GREEN}=== Installation Complete ===${NC}\n"
+    echo -e "Services are starting up. Please wait a moment for them to be ready.\n"
+    echo -e "Access points:"
+    echo -e "  - Frontend:     http://localhost:${FRONTEND_PORT:-80}"
+    echo -e "  - Backend API:  http://localhost:${BACKEND_PORT:-8500}"
+    echo -e "  - Database:     localhost:${POSTGRES_PORT:-5432}\n"
+    echo -e "To view logs:"
+    echo -e "  docker-compose -f docker/docker-compose.prod.yml logs -f\n"
+    echo -e "To stop services:"
+    echo -e "  docker-compose -f docker/docker-compose.prod.yml down\n"
+    echo -e "To restart services:"
+    echo -e "  docker-compose -f docker/docker-compose.prod.yml restart\n"
+}
+
+# Main execution
+main() {
+    check_requirements
+    create_env_file
+    build_images
+    start_services
+    init_database
+    show_status
+    
+    echo -e "${YELLOW}Waiting for services to be healthy...${NC}"
+    sleep 10
+    
+    # Load environment variables for health check
+    if [ -f "$ENV_FILE" ]; then
+        set -a
+        source "$ENV_FILE"
+        set +a
+    fi
+    
+    # Check service health
+    echo -e "\n${YELLOW}Checking service health...${NC}"
+    sleep 5  # Give services a bit more time
+    if curl -f http://localhost:${BACKEND_PORT:-8500}/health &> /dev/null; then
+        echo -e "${GREEN}✓ Backend is healthy${NC}"
+    else
+        echo -e "${YELLOW}⚠ Backend is still starting up. Check logs with: docker-compose -f docker/docker-compose.prod.yml logs backend${NC}"
+    fi
+}
+
+# Run main function
+main
+