diff --git a/Dockerfile b/Dockerfile
index 4a7e473..52ac0e0 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -47,6 +47,7 @@ WORKDIR /app
 # Copy application files and migrations
 COPY --chown=agentkit:agentkit alembic.ini ./
 COPY --chown=agentkit:agentkit migrations ./migrations
+COPY --chown=agentkit:agentkit scripts ./scripts
 COPY --chown=agentkit:agentkit agentkit ./agentkit
 
 # Switch to non-root user
diff --git a/docker-compose.yml b/docker-compose.yml
index b153448..701ba51 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -43,7 +43,7 @@ services:
       dockerfile: Dockerfile
     container_name: agentkit-migrations
     restart: "no"
-    command: ["alembic", "upgrade", "head"]
+    command: ["sh", "-c", "alembic upgrade head && python scripts/seed.py"]
     depends_on:
       postgres:
         condition: service_healthy
diff --git a/examples/demo.py b/examples/demo.py
index d550da6..ec57942 100644
--- a/examples/demo.py
+++ b/examples/demo.py
@@ -27,10 +27,8 @@
 import asyncio
 import logging
 from dataclasses import dataclass
-from pathlib import Path
 
 from redis.asyncio import Redis
-from sqlalchemy import text
 from sqlalchemy.ext.asyncio import (
     AsyncEngine,
     AsyncSession,
@@ -71,16 +69,9 @@ class DemoResources:
 
 async def seed_demo_database(engine: AsyncEngine) -> None:
     """Apply scripts/seed_demo_db.sql, creating products and orders tables."""
-    seed_path = Path(__file__).parents[1] / "scripts" / "seed_demo_db.sql"
-    if not seed_path.exists():
-        raise FileNotFoundError(f"Seed script not found at {seed_path}")
+    from scripts.seed import seed_database
 
-    statements = [s.strip() for s in seed_path.read_text(encoding="utf-8").split(";") if s.strip()]
-    async with engine.begin() as conn:
-        for stmt in statements:
-            await conn.execute(text(stmt))
-
-    logger.info("Seeded products and orders into the demo database.")
+    await seed_database(engine)
 
 
 async def build_persistence(db_url: str, offline: bool) -> DemoResources:
diff --git a/scripts/__init__.py b/scripts/__init__.py
new file mode 100644
index 0000000..de1f3f4
--- /dev/null
+++ b/scripts/__init__.py
@@ -0,0 +1 @@
+"""AgentKit utility and database seed scripts."""
diff --git a/scripts/seed.py b/scripts/seed.py
new file mode 100644
index 0000000..bf697b8
--- /dev/null
+++ b/scripts/seed.py
@@ -0,0 +1,63 @@
+"""Database seeding script for AgentKit demo tables."""
+
+from __future__ import annotations
+
+import argparse
+import asyncio
+import logging
+from pathlib import Path
+
+from sqlalchemy import text
+from sqlalchemy.ext.asyncio import AsyncEngine, create_async_engine
+
+from agentkit.config import get_settings
+
+logger = logging.getLogger("agentkit.seed")
+
+
+async def seed_database(engine: AsyncEngine, script_path: Path | None = None) -> None:
+    """Execute demo SQL seed script against the provided database engine.
+
+    Args:
+        engine: Connected AsyncEngine instance.
+        script_path: Optional custom path to SQL seed file (defaults to scripts/seed_demo_db.sql).
+    """
+    if script_path is None:
+        script_path = Path(__file__).parent / "seed_demo_db.sql"
+
+    if not script_path.exists():
+        raise FileNotFoundError(f"Seed script not found at {script_path}")
+
+    sql_content = script_path.read_text(encoding="utf-8")
+    statements = [stmt.strip() for stmt in sql_content.split(";") if stmt.strip()]
+
+    logger.info("Applying %d SQL statements from %s", len(statements), script_path.name)
+    async with engine.begin() as conn:
+        for stmt in statements:
+            await conn.execute(text(stmt))
+
+    logger.info("Successfully seeded demo database tables (products, orders).")
+
+
+async def main() -> None:
+    """CLI entrypoint for standalone database seeding."""
+    logging.basicConfig(level=logging.INFO, format="%(asctime)s [%(levelname)s] %(message)s")
+    parser = argparse.ArgumentParser(description="Seed demo products and orders database tables.")
+    parser.add_argument(
+        "--db-url",
+        type=str,
+        default=None,
+        help="Target database URL (defaults to DATABASE_URL in environment/settings).",
+    )
+    args = parser.parse_args()
+
+    db_url = args.db_url or get_settings().DATABASE_URL
+    engine = create_async_engine(db_url, pool_pre_ping=True)
+    try:
+        await seed_database(engine)
+    finally:
+        await engine.dispose()
+
+
+if __name__ == "__main__":
+    asyncio.run(main())
diff --git a/scripts/seed_demo_db.sql b/scripts/seed_demo_db.sql
index 0d07e88..2388e33 100644
--- a/scripts/seed_demo_db.sql
+++ b/scripts/seed_demo_db.sql
@@ -27,7 +27,8 @@ INSERT INTO products (id, name, category, price, stock) VALUES
     (4, 'Ergonomic Desk Chair', 'Furniture', 350.00, 15),
     (5, 'Standing Desk Converter', 'Furniture', 280.00, 20),
     (6, 'Designing Data-Intensive Applications', 'Books', 45.00, 100),
-    (7, 'Site Reliability Engineering', 'Books', 40.00, 120);
+    (7, 'Site Reliability Engineering', 'Books', 40.00, 120)
+ON CONFLICT (id) DO NOTHING;
 
 -- Seed Orders (Electronics total in 2024 = $2,400 + $500 + $300 = $3,200.00)
 INSERT INTO orders (id, product_id, quantity, total_price, order_date, customer_name) VALUES
@@ -35,4 +36,5 @@ INSERT INTO orders (id, product_id, quantity, total_price, order_date, customer_
     (2, 2, 2, 500.00, '2024-04-10', 'Bob Smith'),
     (3, 3, 2, 300.00, '2024-05-20', 'Charlie Brown'),
     (4, 4, 1, 350.00, '2024-02-11', 'Diana Prince'),
-    (5, 6, 2, 90.00, '2024-01-25', 'Evan Wright');
+    (5, 6, 2, 90.00, '2024-01-25', 'Evan Wright')
+ON CONFLICT (id) DO NOTHING;
diff --git a/tests/integration/test_seed.py b/tests/integration/test_seed.py
new file mode 100644
index 0000000..4a958e0
--- /dev/null
+++ b/tests/integration/test_seed.py
@@ -0,0 +1,37 @@
+"""Integration tests for demo database seeding script and idempotency."""
+
+import pytest
+from sqlalchemy import text
+from sqlalchemy.ext.asyncio import create_async_engine
+
+from scripts.seed import seed_database
+
+
+@pytest.mark.asyncio
+async def test_seed_database_idempotent() -> None:
+    """Verify seed_database creates tables and rows, and second run does not fail."""
+    engine = create_async_engine("sqlite+aiosqlite:///:memory:")
+
+    # First run
+    await seed_database(engine)
+
+    async with engine.connect() as conn:
+        res_prod = await conn.execute(text("SELECT COUNT(*) FROM products"))
+        count_prod = res_prod.scalar()
+        assert count_prod == 7
+
+        res_orders = await conn.execute(text("SELECT COUNT(*) FROM orders"))
+        count_orders = res_orders.scalar()
+        assert count_orders == 5
+
+    # Second run should succeed cleanly with ON CONFLICT DO NOTHING
+    await seed_database(engine)
+
+    async with engine.connect() as conn:
+        res_prod2 = await conn.execute(text("SELECT COUNT(*) FROM products"))
+        assert res_prod2.scalar() == 7
+
+        res_orders2 = await conn.execute(text("SELECT COUNT(*) FROM orders"))
+        assert res_orders2.scalar() == 5
+
+    await engine.dispose()