diff --git a/README.md b/README.md
index 707645a..c5015ac 100644
--- a/README.md
+++ b/README.md
@@ -187,6 +187,17 @@ The Prisma schema is located under `apps/hotel-management-service-server/prisma/
   ```
 
 * Seed data lives in `apps/hotel-management-service-server/scripts/seed.ts`.
+* **Seeding the database**
+
+  Run the standalone seed script whenever you need fresh demo data:
+
+  ```bash
+  cd apps/hotel-management-service-server
+  npm run seed         # executes ts-node scripts/seed.ts
+  ```
+
+  The script now performs all operations inside a `try … finally` block and **awaits `client.$disconnect()`**, ensuring the PostgreSQL connection is cleanly closed even if an error occurs.  
+  If you prefer a single command, `npm run db:init` already applies migrations **and** invokes the seed script in the correct order.
 
 ---
 
diff --git a/apps/hotel-management-service-server/package.json b/apps/hotel-management-service-server/package.json
index 06b5482..9f5209a 100644
--- a/apps/hotel-management-service-server/package.json
+++ b/apps/hotel-management-service-server/package.json
@@ -68,6 +68,7 @@
   "jest": {
     "preset": "ts-jest",
     "testEnvironment": "node",
+    "detectOpenHandles": true,
     "moduleNameMapper": {
       "@app/custom-validators": "<rootDir>/src/validators"
     },
diff --git a/apps/hotel-management-service-server/scripts/customSeed.ts b/apps/hotel-management-service-server/scripts/customSeed.ts
index 26ccaf4..676e1bf 100644
--- a/apps/hotel-management-service-server/scripts/customSeed.ts
+++ b/apps/hotel-management-service-server/scripts/customSeed.ts
@@ -1,7 +1,5 @@
 import { PrismaClient } from "@prisma/client";
 
-export async function customSeed() {
-  const client = new PrismaClient();
-
-  client.$disconnect();
+export async function customSeed(client: PrismaClient) {
+  // TODO: add seeding logic here using the provided client instance
 }
diff --git a/apps/hotel-management-service-server/scripts/seed.ts b/apps/hotel-management-service-server/scripts/seed.ts
index 04cee65..574bdf9 100644
--- a/apps/hotel-management-service-server/scripts/seed.ts
+++ b/apps/hotel-management-service-server/scripts/seed.ts
@@ -2,6 +2,14 @@ import * as dotenv from "dotenv";
 import { PrismaClient } from "@prisma/client";
 import { customSeed } from "./customSeed";
 
+// Single PrismaClient instance for the whole script
+const client = new PrismaClient();
+
+// Extra safety: ensure disconnect on process exit
+process.on("beforeExit", async () => {
+  await client.$disconnect();
+});
+
 if (require.main === module) {
   dotenv.config();
 
@@ -10,16 +18,24 @@ if (require.main === module) {
   if (!BCRYPT_SALT) {
     throw new Error("BCRYPT_SALT environment variable must be defined");
   }
+
+  // Execute the seed when run directly
+  seed().catch((err) => {
+    console.error("Failed to seed database", err);
+    process.exit(1);
+  });
 }
 
 async function seed() {
   console.info("Seeding database...");
 
-  const client = new PrismaClient();
-  void client.$disconnect();
+  try {
+    console.info("Seeding database with custom seed...");
+    await customSeed(client);
 
-  console.info("Seeding database with custom seed...");
-  customSeed();
-
-  console.info("Seeded database successfully");
+    console.info("Seeded database successfully");
+  } finally {
+    // Always disconnect, even if seeding throws
+    await client.$disconnect();
+  }
 }
diff --git a/apps/hotel-management-service-server/test/seed.spec.ts b/apps/hotel-management-service-server/test/seed.spec.ts
new file mode 100644
index 0000000..e30a10b
--- /dev/null
+++ b/apps/hotel-management-service-server/test/seed.spec.ts
@@ -0,0 +1,34 @@
+import { resolve } from 'path';
+import { spawn } from 'child_process';
+
+/**
+ * Integration test to ensure the seed script exits cleanly
+ * without leaving open handles (detectOpenHandles enabled in Jest config).
+ */
+
+describe('Database seed script', () => {
+  it('should run to completion with exit code 0', async () => {
+    // Path to the seed script (TypeScript).
+    const scriptPath = resolve(__dirname, '../scripts/seed.ts');
+
+    // Spawn the seed script via ts-node.
+    // Using stdio: 'inherit' helps observe any console output during CI failures.
+    const child = spawn(
+      process.execPath, // Node.js binary executing ts-node register and script
+      [
+        // Register ts-node transpiler
+        '-r',
+        'ts-node/register',
+        scriptPath,
+      ],
+      { stdio: 'inherit' },
+    );
+
+    const exitCode: number = await new Promise((resolvePromise, rejectPromise) => {
+      child.on('error', rejectPromise);
+      child.on('exit', resolvePromise);
+    });
+
+    expect(exitCode).toBe(0);
+  }, 60_000); // generous timeout for DB operations
+});
diff --git a/docs/seed-scripts-prisma-audit.md b/docs/seed-scripts-prisma-audit.md
new file mode 100644
index 0000000..e5534df
--- /dev/null
+++ b/docs/seed-scripts-prisma-audit.md
@@ -0,0 +1,40 @@
+# Prisma Seed Scripts Audit – Database Connection Handling
+
+Date: 2025-10-31
+
+This audit searches the repository for potential mis-management of `PrismaClient` connections in seed / script files. We looked specifically for:
+
+* `new PrismaClient(` – new client instantiation
+* `$disconnect()` – connection teardown
+
+---
+
+## Findings
+
+| # | File Path | Line(s) | Code Snippet | Requires Change? | Recommended Action |
+|---|-----------|---------|--------------|------------------|--------------------|
+| 1 | `apps/hotel-management-service-server/scripts/seed.ts` | 18-19 | ```ts
+const client = new PrismaClient();
+void client.$disconnect();
+``` | **Yes** | • Move `$disconnect()` into a `finally` block and `await` it.<br/>• Prefer passing a shared `PrismaClient` instance to `customSeed()` instead of creating separate instances.<br/>• Await `customSeed()` if it becomes async. |
+| 2 | `apps/hotel-management-service-server/scripts/customSeed.ts` | 4-6 | ```ts
+const client = new PrismaClient();
+
+client.$disconnect();
+``` | **Yes** | • Accept a `PrismaClient` parameter rather than creating a new one.<br/>• Ensure the caller handles cleanup in `finally` with `await client.$disconnect()`. |
+
+No other occurrences of `PrismaClient` instantiation or `$disconnect()` were found in the repository at the time of this audit.
+
+---
+
+## Summary
+Both seed scripts create their own `PrismaClient` instance and call `$disconnect()` without awaiting the returned promise. This risks the Node.js process exiting before the connection is cleanly closed, possibly causing connection leaks.
+
+**Refactor Plan (to be implemented in subsequent phases):**
+
+1. Instantiate a single `PrismaClient` in `seed.ts`.
+2. Wrap all seeding logic in `try { … } finally { await client.$disconnect(); }`.
+3. Pass the shared client into `customSeed()` (update its signature accordingly).
+4. Use `process.on('beforeExit')` as a secondary safeguard if desired.
+
+This document will serve as reference for Phase 2 refactoring work.