diff --git a/frappe/database/utils.py b/frappe/database/utils.py
index 3165046faf..0247d9fce4 100644
--- a/frappe/database/utils.py
+++ b/frappe/database/utils.py
@@ -193,7 +193,12 @@ def drop_index_if_exists(table: str, index: str):
 		return
 
 	try:
-		frappe.db.sql_ddl(f"ALTER TABLE `{table}` DROP INDEX `{index}`")
+		if frappe.db.db_type == "postgres":
+			# Postgres drops indexes with DROP INDEX, not ALTER TABLE ... DROP INDEX
+			safe_index = index.replace('"', '""')
+			frappe.db.sql_ddl(f'DROP INDEX IF EXISTS "{safe_index}"')
+		else:
+			frappe.db.sql_ddl(f"ALTER TABLE `{table}` DROP INDEX `{index}`")
 	except Exception as e:
 		frappe.log_error("Failed to drop index")
 		click.secho(f"x Failed to drop index {index} from {table}\n {e!s}", fg="red")