diff --git a/TESTING.md b/TESTING.md
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+# Backup Script Testing Guide
+
+This document provides step-by-step instructions for testing the backup script locally using Docker Compose with a Restic server and PostgreSQL database.
+
+## Prerequisites
+
+- Docker and Docker Compose installed
+- The backup script (`src/backup.sh`) and its dependencies (restic, curl, jq, pg_dump, psql)
+- Basic understanding of bash and PostgreSQL
+
+## Setup
+
+### 1. Start the Test Environment
+
+```bash
+# Start the services
+docker-compose up -d
+
+# Wait for services to be ready (about 10-15 seconds)
+sleep 15
+
+# Verify services are running
+docker-compose ps
+```
+
+### 2. Verify Services
+
+```bash
+# Check if restic server is accessible
+curl -s http://localhost:8000/api/v1/repos
+
+# Check if PostgreSQL is accessible
+docker exec postgres-test psql -U testuser -d testdb -c "SELECT version();"
+```
+
+## Directory Backup Testing
+
+This section tests the directory backup and restore functionality.
+
+### 1. Prepare Test Data
+
+```bash
+# Create a test directory with sample files
+mkdir -p test_data
+cd test_data
+
+# Create various types of files
+echo "This is a text file" > sample.txt
+echo '{"name": "test", "value": 123}' > data.json
+mkdir -p subdir
+echo "Nested file content" > subdir/nested.txt
+echo "Binary data" | base64 > binary.dat
+
+# Create some larger files for testing
+dd if=/dev/urandom of=large_file.bin bs=1M count=10 2>/dev/null
+
+# Go back to project root
+cd ..
+```
+
+### 2. Perform Directory Backup
+
+```bash
+# Set environment variables for directory backup
+export OPERATION_MODE="backup"
+export BACKUP_MODE="directory"
+export RESTIC_PASSWORD="testpassword123"
+export RESTIC_REPOSITORY="rest:http://localhost:8000/test-backup"
+export SOURCEDIR="/home/tbehrendt/dev/backupsidecar/test_data"
+export ENABLE_GOTIFY="false"
+
+# Run the backup
+./src/backup.sh
+```
+
+### 3. Verify Backup
+
+```bash
+# List snapshots
+restic -r "rest:http://localhost:8000/test-backup" snapshots --password-file <(echo "testpassword123")
+
+# Check backup contents
+restic -r "rest:http://localhost:8000/test-backup" ls latest --password-file <(echo "testpassword123")
+```
+
+### 4. Perform Directory Restore
+
+```bash
+# Create restore directory
+mkdir -p restored_data
+
+# Set environment variables for directory restore
+export OPERATION_MODE="restore"
+export RESTOREDIR="/home/tbehrendt/dev/backupsidecar/restored_data"
+export RESTORE_SNAPSHOT_ID="latest"
+
+# Run the restore
+./src/backup.sh
+```
+
+### 5. Verify Directory Restore
+
+```bash
+# Compare original and restored directories
+diff -r test_data restored_data
+
+# Check file contents
+echo "Original file:"
+cat test_data/sample.txt
+echo "Restored file:"
+cat restored_data/sample.txt
+
+# Verify binary file integrity
+md5sum test_data/large_file.bin
+md5sum restored_data/large_file.bin
+
+# Check directory structure
+tree test_data
+tree restored_data
+```
+
+### 6. Cleanup Directory Test
+
+```bash
+# Remove test directories
+rm -rf test_data restored_data
+```
+
+## PostgreSQL Backup Testing
+
+This section tests the PostgreSQL database backup and restore functionality.
+
+### 1. Generate Test Data
+
+```bash
+# Generate test data in PostgreSQL
+./generate_test_data.sh
+```
+
+### 2. Verify Initial Data
+
+```bash
+# Check that data exists
+docker exec postgres-test psql -U testuser -d testdb -c "
+SELECT 'customers' as table_name, COUNT(*) as row_count FROM customers
+UNION ALL
+SELECT 'orders' as table_name, COUNT(*) as row_count FROM orders;
+"
+```
+
+### 3. Perform PostgreSQL Backup
+
+```bash
+# Set environment variables for PostgreSQL backup
+export OPERATION_MODE="backup"
+export BACKUP_MODE="postgres"
+export RESTIC_PASSWORD="testpassword123"
+export RESTIC_REPOSITORY="rest:http://localhost:8000/postgres-backup"
+export PGHOST="localhost"
+export PGPORT="5432"
+export PGDATABASE="testdb"
+export PGUSER="testuser"
+export PGPASSWORD="testpass"
+export ENABLE_GOTIFY="false"
+
+# Run the backup
+./src/backup.sh
+```
+
+### 4. Verify PostgreSQL Backup
+
+```bash
+# List snapshots
+restic -r "rest:http://localhost:8000/postgres-backup" snapshots --password-file <(echo "testpassword123")
+
+# Check backup contents
+restic -r "rest:http://localhost:8000/postgres-backup" ls latest --password-file <(echo "testpassword123")
+```
+
+### 5. Clear the Database
+
+```bash
+# Drop all tables to simulate data loss
+docker exec postgres-test psql -U testuser -d testdb -c "
+DROP TABLE IF EXISTS orders CASCADE;
+DROP TABLE IF EXISTS customers CASCADE;
+"
+
+# Verify database is empty
+docker exec postgres-test psql -U testuser -d testdb -c "
+SELECT table_name FROM information_schema.tables
+WHERE table_schema = 'public';
+"
+```
+
+### 6. Perform PostgreSQL Restore
+
+```bash
+# Set environment variables for PostgreSQL restore
+export OPERATION_MODE="restore"
+export RESTORE_SNAPSHOT_ID="latest"
+
+# Run the restore
+./src/backup.sh
+```
+
+### 7. Verify PostgreSQL Restore
+
+```bash
+# Check that data has been restored
+docker exec postgres-test psql -U testuser -d testdb -c "
+SELECT 'customers' as table_name, COUNT(*) as row_count FROM customers
+UNION ALL
+SELECT 'orders' as table_name, COUNT(*) as row_count FROM orders;
+"
+
+# Verify data integrity
+docker exec postgres-test psql -U testuser -d testdb -c "
+SELECT
+    c.name as customer_name,
+    COUNT(o.id) as order_count,
+    SUM(o.price * o.quantity) as total_spent
+FROM customers c
+LEFT JOIN orders o ON c.id = o.customer_id
+GROUP BY c.id, c.name
+ORDER BY total_spent DESC
+LIMIT 5;
+"
+
+# Check foreign key constraints
+docker exec postgres-test psql -U testuser -d testdb -c "
+SELECT
+    tc.constraint_name,
+    tc.table_name,
+    kcu.column_name,
+    ccu.table_name AS foreign_table_name,
+    ccu.column_name AS foreign_column_name
+FROM information_schema.table_constraints AS tc
+JOIN information_schema.key_column_usage AS kcu
+    ON tc.constraint_name = kcu.constraint_name
+    AND tc.table_schema = kcu.table_schema
+JOIN information_schema.constraint_column_usage AS ccu
+    ON ccu.constraint_name = tc.constraint_name
+    AND ccu.table_schema = tc.table_schema
+WHERE tc.constraint_type = 'FOREIGN KEY'
+    AND tc.table_name IN ('customers', 'orders');
+"
+```
+
+## Advanced Testing Scenarios
+
+### 1. Test with Different Snapshot IDs
+
+```bash
+# List all snapshots
+restic -r "rest:http://localhost:8000/test-backup" snapshots --password-file <(echo "testpassword123")
+
+# Restore a specific snapshot
+export RESTORE_SNAPSHOT_ID="<snapshot-id>"
+./src/backup.sh
+```
+
+### 2. Test Error Handling
+
+```bash
+# Test with invalid repository
+export RESTIC_REPOSITORY="rest:http://localhost:8000/nonexistent"
+./src/backup.sh
+
+# Test with wrong password
+export RESTIC_PASSWORD="wrongpassword"
+./src/backup.sh
+```
+
+### 3. Test with Gotify Notifications (Optional)
+
+```bash
+# If you have a Gotify server running
+export ENABLE_GOTIFY="true"
+export GOTIFYHOST="http://your-gotify-server:80"
+export GOTIFYTOKEN="your-token"
+export GOTIFYTOPIC="Backup Test"
+./src/backup.sh
+```
+
+## Cleanup
+
+### 1. Stop Services
+
+```bash
+# Stop and remove containers
+docker-compose down
+
+# Remove volumes (optional - this will delete all data)
+docker-compose down -v
+```
+
+### 2. Clean Up Test Files
+
+```bash
+# Remove any remaining test files
+rm -rf test_data restored_data
+```
+
+## Troubleshooting
+
+### Common Issues
+
+1. **Connection refused to restic server**: Wait a bit longer for the container to start up
+2. **PostgreSQL connection failed**: Ensure the database container is fully initialized
+3. **Permission denied**: Make sure the backup script is executable (`chmod +x src/backup.sh`)
+4. **Restic repository not found**: Check that the repository URL is correct and the server is running
+
+### Debug Commands
+
+```bash
+# Check container logs
+docker-compose logs restic-server
+docker-compose logs postgres
+
+# Test restic connectivity
+restic -r "rest:http://localhost:8000/test-backup" snapshots --password-file <(echo "testpassword123")
+
+# Test PostgreSQL connectivity
+docker exec postgres-test psql -U testuser -d testdb -c "SELECT 1;"
+```
+
+## Expected Results
+
+### Directory Backup Test
+
+- ✅ Backup completes successfully
+- ✅ Files are backed up to restic repository
+- ✅ Restore completes successfully
+- ✅ Restored files match original files exactly
+- ✅ Directory structure is preserved
+
+### PostgreSQL Backup Test
+
+- ✅ Database backup completes successfully
+- ✅ Database dump is backed up to restic repository
+- ✅ Database can be cleared successfully
+- ✅ Database restore completes successfully
+- ✅ All data is restored correctly
+- ✅ Foreign key relationships are maintained
+- ✅ Data integrity is preserved
+
+This testing procedure ensures that both directory and PostgreSQL backup/restore functionality works correctly and can be used as a foundation for automated testing in CI/CD pipelines.
diff --git a/compose.yaml b/compose.yaml
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+++ b/compose.yaml
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+version: "3.8"
+
+services:
+  restic-server:
+    image: restic/rest-server:latest
+    container_name: restic-server
+    ports:
+      - "8000:8000"
+    command: rest-server --no-auth --path /data
+    restart: unless-stopped
+
+  postgres:
+    image: postgres:17
+    container_name: postgres-test
+    ports:
+      - "5432:5432"
+    environment:
+      POSTGRES_DB: testdb
+      POSTGRES_USER: testuser
+      POSTGRES_PASSWORD: testpass
+    restart: unless-stopped
diff --git a/generate_dir_test_data.sh b/generate_dir_test_data.sh
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--- /dev/null
+++ b/generate_dir_test_data.sh
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+#!/bin/bash
+set -euo pipefail
+
+# Script to generate test data for Directory backup testing
+# This script creates a few directories with a few files and directories in each and populates it with test data
+
+# Create base test directory
+TEST_DIR="/tmp/test-data"
+echo "Creating test directory structure in $TEST_DIR..."
+
+# Remove existing test directory if it exists
+rm -rf "$TEST_DIR"
+mkdir -p "$TEST_DIR"
+
+# Create various subdirectories
+mkdir -p "$TEST_DIR/documents/reports"
+mkdir -p "$TEST_DIR/documents/contracts" 
+mkdir -p "$TEST_DIR/data/logs"
+mkdir -p "$TEST_DIR/data/backups"
+
+# Create text files with content
+echo "This is the annual report for 2023" > "$TEST_DIR/documents/reports/annual_2023.txt"
+echo "Q4 financial summary" > "$TEST_DIR/documents/reports/q4_summary.txt"
+echo "Contract terms and conditions" > "$TEST_DIR/documents/contracts/agreement.txt"
+
+# Create JSON files
+cat << 'EOF' > "$TEST_DIR/data/config.json"
+{
+  "app_name": "TestApp",
+  "version": "1.0.0",
+  "settings": {
+    "debug": true,
+    "max_retries": 3,
+    "timeout": 30
+  }
+}
+EOF
+
+# Create some log files
+for i in {1..3}; do
+  echo "$(date) - Log entry $i" >> "$TEST_DIR/data/logs/app.log"
+  echo "$(date) - Error $i: Sample error message" >> "$TEST_DIR/data/logs/error.log"
+done
+
+# Create symbolic links
+ln -s "../reports/annual_2023.txt" "$TEST_DIR/documents/contracts/report_link"
+ln -s "../../data/config.json" "$TEST_DIR/documents/reports/config_link"
+
+echo "Test data generation completed successfully!"
+echo "Created directory structure:"
+tree "$TEST_DIR"
diff --git a/generate_sql_test_data.sh b/generate_sql_test_data.sh
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--- /dev/null
+++ b/generate_sql_test_data.sh
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+#!/bin/bash
+set -euo pipefail
+
+# Script to generate test data for PostgreSQL backup testing
+# This script creates two tables with a foreign key relationship and populates them with test data
+
+# Database connection parameters
+PGHOST="${PGHOST:-localhost}"
+PGPORT="${PGPORT:-5432}"
+PGDATABASE="${PGDATABASE:-testdb}"
+PGUSER="${PGUSER:-testuser}"
+PGPASSWORD="${PGPASSWORD:-testpass}"
+
+# Export password for psql
+export PGPASSWORD
+
+echo "Generating test data for PostgreSQL database..."
+
+# Create tables
+echo "Creating tables..."
+psql -h "$PGHOST" -p "$PGPORT" -U "$PGUSER" -d "$PGDATABASE" << 'EOF'
+-- Drop tables if they exist
+DROP TABLE IF EXISTS orders CASCADE;
+DROP TABLE IF EXISTS customers CASCADE;
+
+-- Create customers table
+CREATE TABLE customers (
+    id SERIAL PRIMARY KEY,
+    name VARCHAR(100) NOT NULL,
+    email VARCHAR(100) UNIQUE NOT NULL,
+    created_at TIMESTAMP DEFAULT CURRENT_TIMESTAMP
+);
+
+-- Create orders table with foreign key to customers
+CREATE TABLE orders (
+    id SERIAL PRIMARY KEY,
+    customer_id INTEGER NOT NULL REFERENCES customers(id) ON DELETE CASCADE,
+    product_name VARCHAR(100) NOT NULL,
+    quantity INTEGER NOT NULL CHECK (quantity > 0),
+    price DECIMAL(10,2) NOT NULL CHECK (price >= 0),
+    order_date TIMESTAMP DEFAULT CURRENT_TIMESTAMP
+);
+
+-- Create indexes for better performance
+CREATE INDEX idx_orders_customer_id ON orders(customer_id);
+CREATE INDEX idx_customers_email ON customers(email);
+CREATE INDEX idx_orders_order_date ON orders(order_date);
+EOF
+
+# Insert test data
+echo "Inserting test data..."
+psql -h "$PGHOST" -p "$PGPORT" -U "$PGUSER" -d "$PGDATABASE" << 'EOF'
+-- Insert customers
+INSERT INTO customers (name, email) VALUES
+    ('John Doe', 'john.doe@example.com'),
+    ('Jane Smith', 'jane.smith@example.com'),
+    ('Bob Johnson', 'bob.johnson@example.com'),
+    ('Alice Brown', 'alice.brown@example.com'),
+    ('Charlie Wilson', 'charlie.wilson@example.com'),
+    ('Diana Davis', 'diana.davis@example.com'),
+    ('Eve Miller', 'eve.miller@example.com'),
+    ('Frank Garcia', 'frank.garcia@example.com'),
+    ('Grace Lee', 'grace.lee@example.com'),
+    ('Henry Taylor', 'henry.taylor@example.com');
+
+-- Insert orders
+INSERT INTO orders (customer_id, product_name, quantity, price) VALUES
+    (1, 'Laptop', 1, 999.99),
+    (1, 'Mouse', 2, 25.50),
+    (2, 'Keyboard', 1, 75.00),
+    (2, 'Monitor', 1, 299.99),
+    (3, 'Headphones', 1, 150.00),
+    (3, 'Webcam', 1, 89.99),
+    (4, 'Tablet', 1, 399.99),
+    (4, 'Stylus', 1, 49.99),
+    (5, 'Smartphone', 1, 699.99),
+    (5, 'Case', 1, 19.99),
+    (6, 'Desktop', 1, 1299.99),
+    (6, 'RAM', 2, 79.99),
+    (7, 'SSD', 1, 199.99),
+    (7, 'Graphics Card', 1, 599.99),
+    (8, 'Motherboard', 1, 199.99),
+    (8, 'CPU', 1, 399.99),
+    (9, 'Power Supply', 1, 149.99),
+    (9, 'Cooling Fan', 2, 29.99),
+    (10, 'Cable Set', 1, 39.99),
+    (10, 'USB Hub', 1, 24.99);
+EOF
+
+# Verify data
+echo "Verifying test data..."
+psql -h "$PGHOST" -p "$PGPORT" -U "$PGUSER" -d "$PGDATABASE" << 'EOF'
+-- Show table counts
+SELECT 'customers' as table_name, COUNT(*) as row_count FROM customers
+UNION ALL
+SELECT 'orders' as table_name, COUNT(*) as row_count FROM orders;
+
+-- Show sample data
+SELECT 'Sample customers:' as info;
+SELECT id, name, email FROM customers LIMIT 5;
+
+SELECT 'Sample orders:' as info;
+SELECT o.id, c.name as customer_name, o.product_name, o.quantity, o.price 
+FROM orders o 
+JOIN customers c ON o.customer_id = c.id 
+LIMIT 5;
+
+-- Show foreign key relationship
+SELECT 'Foreign key relationship check:' as info;
+SELECT 
+    c.name as customer_name,
+    COUNT(o.id) as order_count,
+    SUM(o.price * o.quantity) as total_spent
+FROM customers c
+LEFT JOIN orders o ON c.id = o.customer_id
+GROUP BY c.id, c.name
+ORDER BY total_spent DESC;
+EOF
+
+echo "Test data generation completed successfully!"
+echo "Database contains:"
+echo "- 10 customers"
+echo "- 20 orders with foreign key relationships"
+echo "- Various data types and constraints"
diff --git a/src/backup.sh b/src/backup.sh
old mode 100644
new mode 100755