diff --git a/pyproject.toml b/pyproject.toml
index 9ff8e6815..cc486e26d 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -51,6 +51,10 @@ dependencies = [
     "litellm>=1.60.0,<2.0.0",
     "logfire>=4.19.0",
     "psutil>=5.9.0",
+    # uvloop's C event loop has no self._ready.popleft() codepath, so the
+    # asyncpg engine-dispose race ("IndexError: pop from an empty deque") that
+    # crashes the Postgres backend cannot fire under it. Not available on Windows.
+    "uvloop>=0.21.0; sys_platform != 'win32'",
 ]
 
 [project.urls]
diff --git a/src/basic_memory/alembic/env.py b/src/basic_memory/alembic/env.py
index 700ecef50..153adb0ce 100644
--- a/src/basic_memory/alembic/env.py
+++ b/src/basic_memory/alembic/env.py
@@ -2,8 +2,11 @@
 
 import asyncio
 import os
+from contextlib import suppress
 from logging.config import fileConfig
 
+from loguru import logger
+
 # Allow nested event loops (needed for pytest-asyncio and other async contexts)
 # Note: nest_asyncio doesn't work with uvloop or Python 3.14+, so we handle those cases separately
 import sys
@@ -13,9 +16,15 @@
         import nest_asyncio
 
         nest_asyncio.apply()
-    except (ImportError, ValueError):
-        # nest_asyncio not available or can't patch this loop type (e.g., uvloop)
-        pass
+    except (ImportError, ValueError) as exc:
+        # Trigger: nest_asyncio is absent (ImportError) or refuses to patch the
+        # running loop (ValueError, e.g. the uvloop policy installed for the
+        # Postgres backend - #831/#877).
+        # Why: the uvloop ValueError is now an *expected* path on every Postgres
+        # startup, so swallowing it silently hides a routine branch.
+        # Outcome: log at DEBUG (observable, not noisy) and fall through to the
+        # thread-based migration fallback.
+        logger.debug(f"nest_asyncio not applied ({exc!r}); using thread-based migration fallback")
 # For Python 3.14+, we rely on the thread-based fallback in run_migrations_online()
 
 from sqlalchemy import engine_from_config, pool
@@ -115,7 +124,15 @@ async def run_async_migrations(connectable):
     """Run migrations asynchronously with AsyncEngine."""
     async with connectable.connect() as connection:
         await connection.run_sync(do_run_migrations)
-    await connectable.dispose()
+    # Trigger: startup migrations on the asyncpg backend dispose the engine
+    # while the event loop may be tearing down around them.
+    # Why: that race surfaces "IndexError: pop from an empty deque" from
+    # base_events._run_once (#831/#877); shielding lets dispose finish atomically
+    # and suppressing CancelledError keeps a cancelled teardown from re-raising it.
+    # Outcome: the migration engine always disposes cleanly. (uvloop is the
+    # structural fix for the race; this hardens the teardown path.)
+    with suppress(asyncio.CancelledError):
+        await asyncio.shield(connectable.dispose())
 
 
 def _run_async_migrations_with_asyncio_run(connectable) -> None:
diff --git a/src/basic_memory/cli/app.py b/src/basic_memory/cli/app.py
index 2e88c810a..5c8addc24 100644
--- a/src/basic_memory/cli/app.py
+++ b/src/basic_memory/cli/app.py
@@ -57,6 +57,14 @@ def app_callback(
     container = CliContainer.create()
     set_container(container)
 
+    # Trigger: Postgres backend resolved at CLI startup, before any asyncio.run().
+    # Why: uvloop must own the event-loop policy before the loop is created so the
+    # asyncpg engine-dispose race (#831/#877) cannot fire. No-op for SQLite.
+    # Outcome: subsequent asyncio.run() calls in CLI commands use uvloop on Postgres.
+    from basic_memory.db import maybe_install_uvloop
+
+    maybe_install_uvloop(container.config)
+
     # Trigger: first-run init confirmation before command output.
     # Why: informational "initialized" message belongs above command results, not in the upsell panel.
     # Outcome: one-time plain line printed before the subcommand runs.
diff --git a/src/basic_memory/cli/commands/mcp.py b/src/basic_memory/cli/commands/mcp.py
index 9a0731142..9a256ac51 100644
--- a/src/basic_memory/cli/commands/mcp.py
+++ b/src/basic_memory/cli/commands/mcp.py
@@ -98,6 +98,18 @@ def _run_background_auto_update() -> None:
     if transport == "stdio":
         threading.Thread(target=_run_background_auto_update, daemon=True).start()
 
+    # Trigger: MCP server startup on the Postgres backend, before the transport
+    # creates its event loop.
+    # Why: the watcher/lifespan path runs startup migrations + engine.dispose() on
+    # asyncpg, which races stdlib asyncio teardown and crashes the container loop
+    # (#831/#877). uvloop's C scheduler structurally avoids that race and must own
+    # the loop policy before the loop is created. No-op for SQLite.
+    # Outcome: `basic-memory mcp` on Postgres runs on uvloop. (The CLI callback also
+    # installs it; this keeps the server startup seam explicit and self-contained.)
+    from basic_memory.db import maybe_install_uvloop
+
+    maybe_install_uvloop(ConfigManager().config)
+
     # Run the MCP server (blocks)
     # Lifespan handles: initialization, migrations, file sync, cleanup
     logger.info(f"Starting MCP server with {transport.upper()} transport")
diff --git a/src/basic_memory/db.py b/src/basic_memory/db.py
index 6133e9530..d9f56a05b 100644
--- a/src/basic_memory/db.py
+++ b/src/basic_memory/db.py
@@ -1,7 +1,7 @@
 import asyncio
 import os
 import sys
-from contextlib import asynccontextmanager
+from contextlib import asynccontextmanager, suppress
 from enum import Enum, auto
 from pathlib import Path
 from typing import AsyncGenerator, Optional
@@ -39,6 +39,44 @@
 if sys.platform == "win32":  # pragma: no cover
     asyncio.set_event_loop_policy(asyncio.WindowsSelectorEventLoopPolicy())
 
+
+def maybe_install_uvloop(config: BasicMemoryConfig) -> bool:
+    """Install the uvloop event-loop policy for the Postgres backend.
+
+    Trigger: process entrypoint starting with database_backend == postgres,
+    uvloop importable, and a non-Windows platform.
+    Why: asyncpg engine teardown (engine.dispose()) races the stdlib asyncio
+    loop shutdown and surfaces "IndexError: pop from an empty deque" from
+    base_events._run_once (see #831/#877). uvloop's C scheduler has no
+    self._ready.popleft() codepath, so that class of crash cannot fire under it.
+    Outcome: Postgres deployments run on uvloop; SQLite users keep the default
+    loop (no behavior change, smaller blast radius). Must run before the event
+    loop is created, i.e. before asyncio.run().
+
+    Returns:
+        True if the uvloop policy was installed, False otherwise.
+    """
+    # uvloop is not available on Windows; the default loop already differs there.
+    if sys.platform == "win32":  # pragma: no cover
+        return False
+
+    # Limit the change to the backend that actually hits the asyncpg dispose race.
+    if config.database_backend != DatabaseBackend.POSTGRES:
+        return False
+
+    # Deferred import: uvloop is an optional, platform-gated dependency and the
+    # default (SQLite) path must not require it to be installed.
+    try:
+        import uvloop
+    except ImportError:  # pragma: no cover
+        logger.warning("uvloop not available - using default event loop for Postgres backend")
+        return False
+
+    asyncio.set_event_loop_policy(uvloop.EventLoopPolicy())
+    logger.info("Installed uvloop event-loop policy for Postgres backend")
+    return True
+
+
 # Module level state
 _engine: Optional[AsyncEngine] = None
 _session_maker: Optional[async_sessionmaker[AsyncSession]] = None
@@ -320,7 +358,15 @@ async def shutdown_db() -> None:  # pragma: no cover
     global _engine, _session_maker
 
     if _engine:
-        await _engine.dispose()
+        # Trigger: teardown can run while the surrounding task is being cancelled
+        # (e.g. lifespan shutdown, unshielded CLI cleanup).
+        # Why: a cancellation landing mid-dispose surfaces the asyncpg
+        # "IndexError: pop from an empty deque" race (#831/#877); shielding lets
+        # dispose finish atomically, and suppressing CancelledError keeps a
+        # cancelled shutdown from re-raising the underlying race.
+        # Outcome: connections always close cleanly even under cancellation.
+        with suppress(asyncio.CancelledError):
+            await asyncio.shield(_engine.dispose())
         _engine = None
         _session_maker = None
 
@@ -364,7 +410,14 @@ async def engine_session_factory(
 
         yield created_engine, created_session_maker
     finally:
-        await created_engine.dispose()
+        # Trigger: context-manager teardown can run while the surrounding task is
+        # being cancelled (e.g. a test aborting mid-fixture).
+        # Why: on the asyncpg backend a cancellation landing mid-dispose surfaces
+        # the "IndexError: pop from an empty deque" race (#831/#877); shield the
+        # dispose and suppress CancelledError to match the other dispose seams.
+        # Outcome: the per-context engine always disposes cleanly under cancellation.
+        with suppress(asyncio.CancelledError):
+            await asyncio.shield(created_engine.dispose())
 
         # Only clear module-level globals if they still point to this context's
         # engine/session. This avoids clobbering newer globals from other callers.
@@ -433,7 +486,11 @@ async def run_migrations(
         # Trigger: run_migrations() created a temporary engine while module-level
         # session maker was not initialized.
         # Why: temporary aiosqlite worker threads can outlive CLI command execution
-        # and block process shutdown if the engine is not disposed.
-        # Outcome: always dispose temporary engines after migration work completes.
+        # and block process shutdown if the engine is not disposed. On the asyncpg
+        # backend a cancellation landing mid-dispose surfaces the same "IndexError:
+        # pop from an empty deque" race as the other dispose seams (#831/#877), so
+        # shield the dispose and suppress CancelledError to match them.
+        # Outcome: always dispose temporary engines cleanly, even under cancellation.
         if temp_engine is not None:
-            await temp_engine.dispose()
+            with suppress(asyncio.CancelledError):
+                await asyncio.shield(temp_engine.dispose())
diff --git a/test-int/test_postgres_dispose_cycle.py b/test-int/test_postgres_dispose_cycle.py
new file mode 100644
index 000000000..05adf72b5
--- /dev/null
+++ b/test-int/test_postgres_dispose_cycle.py
@@ -0,0 +1,69 @@
+"""Integration test for the asyncpg engine-dispose race (issue #831 / #877).
+
+On the Postgres backend (``postgresql+asyncpg``), the "open async engine -> work
+-> await engine.dispose()" cycle could crash with
+``IndexError: pop from an empty deque`` raised from SQLAlchemy's async dispose
+machinery as it races event-loop teardown. This made Postgres + file watcher
+unusable (container restart loop).
+
+These tests exercise the real create-engine -> query -> dispose cycle against a
+live Postgres instance (testcontainers) for many iterations. The race is
+timing-dependent, so we loop enough to be meaningful and assert clean
+completion. They are skipped on SQLite, which is unaffected.
+
+Run with:
+    BASIC_MEMORY_TEST_POSTGRES=1 uv run pytest \
+        test-int/test_postgres_dispose_cycle.py -q
+"""
+
+import pytest
+from sqlalchemy import text
+
+from basic_memory import db
+from basic_memory.config import DatabaseBackend
+from basic_memory.db import DatabaseType, _create_postgres_engine
+
+
+@pytest.mark.asyncio
+async def test_create_query_dispose_cycle_is_clean(app_config, db_backend):
+    """Repeatedly create -> query -> dispose an asyncpg engine without crashing."""
+    if db_backend != "postgres":
+        pytest.skip("Postgres-specific test - asyncpg dispose race does not affect SQLite")
+
+    db_url = DatabaseType.get_db_url(app_config.database_path, DatabaseType.POSTGRES, app_config)
+
+    # Loop enough iterations to make the timing-dependent dispose race observable.
+    for _ in range(50):
+        engine = _create_postgres_engine(db_url, app_config)
+        async with engine.connect() as conn:
+            result = await conn.execute(text("SELECT 1"))
+            assert result.scalar() == 1
+        # This dispose is the call site that raced loop teardown in #831/#877.
+        await engine.dispose()
+
+
+@pytest.mark.asyncio
+async def test_shutdown_db_dispose_is_clean(app_config, config_manager, db_backend):
+    """Repeated get_or_create_db -> query -> shutdown_db cycles complete cleanly.
+
+    Exercises the shielded ``shutdown_db`` teardown path against asyncpg. The
+    autouse ``cleanup_global_db_after_test`` fixture in conftest restores module
+    state afterwards.
+    """
+    if db_backend != "postgres":
+        pytest.skip("Postgres-specific test - asyncpg dispose race does not affect SQLite")
+
+    assert app_config.database_backend == DatabaseBackend.POSTGRES
+
+    for _ in range(25):
+        engine, session_maker = await db.get_or_create_db(
+            app_config.database_path,
+            db_type=DatabaseType.POSTGRES,
+            ensure_migrations=False,
+            config=app_config,
+        )
+        async with db.scoped_session(session_maker) as session:
+            result = await session.execute(text("SELECT 1"))
+            assert result.scalar() == 1
+        # Shielded dispose - must not surface the asyncpg deque race.
+        await db.shutdown_db()
diff --git a/tests/cli/test_cli_exit.py b/tests/cli/test_cli_exit.py
index 1cc02aeb2..a4e643df0 100644
--- a/tests/cli/test_cli_exit.py
+++ b/tests/cli/test_cli_exit.py
@@ -15,7 +15,11 @@ def test_bm_version_exits_cleanly():
         ["uv", "run", "bm", "--version"],
         capture_output=True,
         text=True,
-        timeout=10,
+        # `uv run` startup under full-suite load (especially on Windows runners)
+        # can exceed a tight 10s budget even though --version short-circuits
+        # before any heavy work. This test guards against hangs, not a startup
+        # performance budget, so match the looser --help timeout below.
+        timeout=20,
         cwd=Path(__file__).parent.parent.parent,  # Project root
     )
     assert result.returncode == 0
diff --git a/tests/cli/test_cli_telemetry.py b/tests/cli/test_cli_telemetry.py
index 1e3ab5ae3..884521df8 100644
--- a/tests/cli/test_cli_telemetry.py
+++ b/tests/cli/test_cli_telemetry.py
@@ -2,6 +2,7 @@
 
 from __future__ import annotations
 
+from types import SimpleNamespace
 from typing import Any, cast
 
 import logfire
@@ -29,8 +30,16 @@ def test_app_callback_registers_command_operation(monkeypatch) -> None:
     resource = object()
 
     monkeypatch.setattr(cli_app, "init_cli_logging", lambda: None)
-    monkeypatch.setattr(cli_app.CliContainer, "create", staticmethod(lambda: object()))
+    # Container needs a `config` attribute because app_callback passes it to the
+    # uvloop policy installer; the helper itself is stubbed below for this
+    # telemetry-focused test.
+    monkeypatch.setattr(
+        cli_app.CliContainer, "create", staticmethod(lambda: SimpleNamespace(config=object()))
+    )
     monkeypatch.setattr(cli_app, "set_container", lambda container: None)
+    # app_callback installs the uvloop policy for the Postgres backend; stub the
+    # helper so this telemetry test does not depend on event-loop policy state.
+    monkeypatch.setattr("basic_memory.db.maybe_install_uvloop", lambda config: False)
     monkeypatch.setattr(cli_app, "maybe_show_init_line", lambda command_name: None)
     monkeypatch.setattr(cli_app, "maybe_show_cloud_promo", lambda command_name: None)
     monkeypatch.setattr(cli_app, "maybe_run_periodic_auto_update", lambda command_name: None)
diff --git a/tests/cli/test_db_reindex.py b/tests/cli/test_db_reindex.py
index 16cf838e8..49cf2c696 100644
--- a/tests/cli/test_db_reindex.py
+++ b/tests/cli/test_db_reindex.py
@@ -9,6 +9,7 @@
 from typer.testing import CliRunner
 
 from basic_memory.cli.app import app
+from basic_memory.config import DatabaseBackend
 import basic_memory.cli.commands.db as db_cmd  # noqa: F401
 
 
@@ -21,6 +22,8 @@ def _stub_app_config(*, semantic_search_enabled: bool = True) -> SimpleNamespace
         semantic_search_enabled=semantic_search_enabled,
         database_path=Path("/tmp/basic-memory.db"),
         get_project_mode=lambda project_name: None,
+        # app_callback reads this to decide whether to install the uvloop policy.
+        database_backend=DatabaseBackend.SQLITE,
     )
 
 
diff --git a/tests/db/test_uvloop_policy.py b/tests/db/test_uvloop_policy.py
new file mode 100644
index 000000000..b093a5cd3
--- /dev/null
+++ b/tests/db/test_uvloop_policy.py
@@ -0,0 +1,83 @@
+"""Unit tests for the uvloop event-loop policy installer.
+
+Covers the structural fix for issue #831 / #877: the asyncpg engine-dispose
+race ("IndexError: pop from an empty deque") is avoided by running the Postgres
+backend on uvloop, whose C scheduler has no self._ready.popleft() codepath.
+
+These tests verify the gating logic of ``maybe_install_uvloop`` without touching
+a real database. The global event-loop policy is saved and restored around each
+test so installing uvloop here cannot leak into the rest of the suite.
+"""
+
+import asyncio
+import sys
+
+import pytest
+
+from basic_memory.config import BasicMemoryConfig, DatabaseBackend
+from basic_memory.db import maybe_install_uvloop
+
+
+@pytest.fixture
+def restore_event_loop_policy():
+    """Save/restore the global event-loop policy around a test."""
+    original = asyncio.get_event_loop_policy()
+    try:
+        yield
+    finally:
+        asyncio.set_event_loop_policy(original)
+
+
+def _postgres_config() -> BasicMemoryConfig:
+    return BasicMemoryConfig(
+        env="test",
+        database_backend=DatabaseBackend.POSTGRES,
+        database_url="postgresql+asyncpg://user:pass@localhost/db",
+    )
+
+
+def _sqlite_config() -> BasicMemoryConfig:
+    return BasicMemoryConfig(env="test", database_backend=DatabaseBackend.SQLITE)
+
+
+@pytest.mark.skipif(sys.platform == "win32", reason="uvloop is not available on Windows")
+def test_installs_uvloop_for_postgres_backend(restore_event_loop_policy):
+    """uvloop policy is installed when backend is Postgres and uvloop is available."""
+    import uvloop
+
+    installed = maybe_install_uvloop(_postgres_config())
+
+    assert installed is True
+    assert isinstance(asyncio.get_event_loop_policy(), uvloop.EventLoopPolicy)
+
+
+def test_no_uvloop_for_sqlite_backend(restore_event_loop_policy):
+    """SQLite users keep the default loop - the helper is a no-op."""
+    before = asyncio.get_event_loop_policy()
+
+    installed = maybe_install_uvloop(_sqlite_config())
+
+    assert installed is False
+    # Policy must be unchanged for the default (SQLite) path.
+    assert asyncio.get_event_loop_policy() is before
+
+
+@pytest.mark.skipif(sys.platform == "win32", reason="uvloop is not available on Windows")
+def test_uvloop_unavailable_is_a_safe_noop(restore_event_loop_policy, monkeypatch):
+    """When uvloop cannot be imported the helper returns False without raising."""
+    import builtins
+
+    real_import = builtins.__import__
+
+    def _fail_uvloop_import(name, *args, **kwargs):
+        if name == "uvloop":
+            raise ImportError("simulated missing uvloop")
+        return real_import(name, *args, **kwargs)
+
+    monkeypatch.setattr(builtins, "__import__", _fail_uvloop_import)
+
+    before = asyncio.get_event_loop_policy()
+    installed = maybe_install_uvloop(_postgres_config())
+
+    assert installed is False
+    assert asyncio.get_event_loop_policy() is before
diff --git a/uv.lock b/uv.lock
index b004a0194..51bb382b4 100644
--- a/uv.lock
+++ b/uv.lock
@@ -304,6 +304,7 @@ dependencies = [
     { name = "sqlite-vec" },
     { name = "typer" },
     { name = "unidecode" },
+    { name = "uvloop", marker = "sys_platform != 'win32'" },
     { name = "watchfiles" },
 ]
 
@@ -370,6 +371,7 @@ requires-dist = [
     { name = "sqlite-vec", specifier = ">=0.1.6" },
     { name = "typer", specifier = ">=0.9.0" },
     { name = "unidecode", specifier = ">=1.3.8" },
+    { name = "uvloop", marker = "sys_platform != 'win32'", specifier = ">=0.21.0" },
     { name = "watchfiles", specifier = ">=1.0.4" },
 ]