diff --git a/hub/src/db/migrate.ts b/hub/src/db/migrate.ts
index 4ca6d24..e724695 100644
--- a/hub/src/db/migrate.ts
+++ b/hub/src/db/migrate.ts
@@ -8,6 +8,159 @@ const SCHEMA_CANDIDATES = [
   resolve(import.meta.dir, 'schema.sql'),
 ]
 
+/**
+ * Split a SQL script into individual statements on top-level `;`, while
+ * respecting PostgreSQL syntax that contains semicolons that are NOT
+ * statement terminators:
+ *   - dollar-quoted strings: $$ ... $$ and the tagged variant $tag$ ... $tag$
+ *   - single-quoted strings with '' escape
+ *   - double-quoted identifiers with "" escape
+ *   - line comments (-- to newline)
+ *   - block comments (slash-star ... star-slash), nesting supported per Postgres
+ *
+ * Returns trimmed, non-empty statements.
+ */
+export function splitSqlStatements(sqlText: string): string[] {
+  const statements: string[] = []
+  let buf = ''
+  let i = 0
+  const n = sqlText.length
+
+  let inSingle = false
+  let inDouble = false
+  let inLineComment = false
+  let blockCommentDepth = 0
+  let dollarTag: string | null = null
+
+  while (i < n) {
+    const c = sqlText[i]
+    const c2 = sqlText[i + 1]
+
+    if (inLineComment) {
+      buf += c
+      if (c === '\n') inLineComment = false
+      i++
+      continue
+    }
+
+    if (blockCommentDepth > 0) {
+      buf += c
+      if (c === '/' && c2 === '*') {
+        blockCommentDepth++
+        buf += c2
+        i += 2
+        continue
+      }
+      if (c === '*' && c2 === '/') {
+        blockCommentDepth--
+        buf += c2
+        i += 2
+        continue
+      }
+      i++
+      continue
+    }
+
+    if (dollarTag !== null) {
+      if (c === '$' && sqlText.startsWith(dollarTag, i)) {
+        buf += dollarTag
+        i += dollarTag.length
+        dollarTag = null
+        continue
+      }
+      buf += c
+      i++
+      continue
+    }
+
+    if (inSingle) {
+      buf += c
+      if (c === "'") {
+        if (c2 === "'") {
+          buf += c2
+          i += 2
+          continue
+        }
+        inSingle = false
+      }
+      i++
+      continue
+    }
+
+    if (inDouble) {
+      buf += c
+      if (c === '"') {
+        if (c2 === '"') {
+          buf += c2
+          i += 2
+          continue
+        }
+        inDouble = false
+      }
+      i++
+      continue
+    }
+
+    if (c === '-' && c2 === '-') {
+      inLineComment = true
+      buf += c
+      buf += c2
+      i += 2
+      continue
+    }
+
+    if (c === '/' && c2 === '*') {
+      blockCommentDepth = 1
+      buf += c
+      buf += c2
+      i += 2
+      continue
+    }
+
+    if (c === '$') {
+      const tagMatch = /^\$[A-Za-z_][A-Za-z0-9_]*\$|^\$\$/.exec(sqlText.slice(i))
+      if (tagMatch) {
+        dollarTag = tagMatch[0]
+        buf += dollarTag
+        i += dollarTag.length
+        continue
+      }
+      buf += c
+      i++
+      continue
+    }
+
+    if (c === "'") {
+      inSingle = true
+      buf += c
+      i++
+      continue
+    }
+
+    if (c === '"') {
+      inDouble = true
+      buf += c
+      i++
+      continue
+    }
+
+    if (c === ';') {
+      const trimmed = buf.trim()
+      if (trimmed.length > 0) statements.push(trimmed)
+      buf = ''
+      i++
+      continue
+    }
+
+    buf += c
+    i++
+  }
+
+  const tail = buf.trim()
+  if (tail.length > 0) statements.push(tail)
+  return statements
+}
+
 export async function runMigrations() {
   const path = SCHEMA_CANDIDATES.find((p) => {
     try { readFileSync(p, 'utf-8'); return true } catch { return false }
@@ -17,17 +170,7 @@ export async function runMigrations() {
     return
   }
   const ddl = readFileSync(path, 'utf-8')
-  // Strip line comments first, then split on semicolons.
-  // A previous bug: filtering statements that START WITH `--` dropped statements
-  // preceded by a comment block (e.g. ALTER TABLE preceded by "-- Migration ...").
-  const stripped = ddl
-    .split('\n')
-    .filter((line) => !line.trim().startsWith('--'))
-    .join('\n')
-  const statements = stripped
-    .split(/;\s*\n/)
-    .map((s) => s.trim())
-    .filter((s) => s.length > 0)
+  const statements = splitSqlStatements(ddl)
 
   let applied = 0
   for (const stmt of statements) {
diff --git a/hub/test/migrate.test.ts b/hub/test/migrate.test.ts
new file mode 100644
index 0000000..a24abe3
--- /dev/null
+++ b/hub/test/migrate.test.ts
@@ -0,0 +1,134 @@
+/**
+ * Unit tests for splitSqlStatements — the dollar-quote-aware SQL splitter
+ * in hub/src/db/migrate.ts.
+ *
+ * Pure parser tests, no DB.
+ */
+import { describe, test, expect } from 'bun:test'
+import { readFileSync } from 'fs'
+import { resolve } from 'path'
+import { splitSqlStatements } from '../src/db/migrate.ts'
+
+describe('splitSqlStatements', () => {
+  test('splits two simple statements', () => {
+    const out = splitSqlStatements('SELECT 1; SELECT 2;')
+    expect(out).toEqual(['SELECT 1', 'SELECT 2'])
+  })
+
+  test('ignores trailing whitespace and empty trailing statement', () => {
+    const out = splitSqlStatements('SELECT 1;   \n  ')
+    expect(out).toEqual(['SELECT 1'])
+  })
+
+  test('DO block with EXCEPTION + inner semicolons → 1 statement', () => {
+    const sql = `DO $$ BEGIN
+      ALTER TABLE users ADD CONSTRAINT u_chk CHECK (x > 0);
+    EXCEPTION WHEN duplicate_object THEN NULL; END $$;`
+    const out = splitSqlStatements(sql)
+    expect(out.length).toBe(1)
+    expect(out[0]).toContain('EXCEPTION WHEN duplicate_object')
+    expect(out[0]).toContain('ALTER TABLE users')
+  })
+
+  test('CREATE TABLE → DO block → CREATE TABLE = 3 statements', () => {
+    const sql = `CREATE TABLE a (id int);
+DO $$ BEGIN
+  ALTER TABLE a ADD CONSTRAINT a_chk CHECK (id > 0);
+EXCEPTION WHEN duplicate_object THEN NULL; END $$;
+CREATE TABLE b (id int);`
+    const out = splitSqlStatements(sql)
+    expect(out.length).toBe(3)
+    expect(out[0]).toContain('CREATE TABLE a')
+    expect(out[1]).toContain('DO $$')
+    expect(out[1]).toContain('END $$')
+    expect(out[2]).toContain('CREATE TABLE b')
+  })
+
+  test('tagged dollar quote $tag$ ... $tag$ respected', () => {
+    const sql = `CREATE FUNCTION f() RETURNS void AS $body$
+      BEGIN
+        INSERT INTO t VALUES ('a;b;c');
+        PERFORM 1;
+      END;
+    $body$ LANGUAGE plpgsql;
+SELECT 1;`
+    const out = splitSqlStatements(sql)
+    expect(out.length).toBe(2)
+    expect(out[0]).toContain('$body$')
+    expect(out[0]).toContain("INSERT INTO t VALUES ('a;b;c')")
+    expect(out[1]).toBe('SELECT 1')
+  })
+
+  test("single-quoted string with embedded semicolon is one statement", () => {
+    const sql = `INSERT INTO t (v) VALUES ('foo;bar');\nSELECT 2;`
+    const out = splitSqlStatements(sql)
+    expect(out.length).toBe(2)
+    expect(out[0]).toBe("INSERT INTO t (v) VALUES ('foo;bar')")
+    expect(out[1]).toBe('SELECT 2')
+  })
+
+  test("escaped single quote '' inside string preserved", () => {
+    const sql = `INSERT INTO t (v) VALUES ('it''s; fine');\nSELECT 2;`
+    const out = splitSqlStatements(sql)
+    expect(out.length).toBe(2)
+    expect(out[0]).toContain("'it''s; fine'")
+  })
+
+  test('double-quoted identifier with semicolon (pathological) preserved', () => {
+    const sql = `SELECT "weird;col" FROM t; SELECT 2;`
+    const out = splitSqlStatements(sql)
+    expect(out.length).toBe(2)
+    expect(out[0]).toContain('"weird;col"')
+  })
+
+  test('block comment containing ; is ignored as a terminator', () => {
+    const sql = `/* this; has; semicolons */ SELECT 1; SELECT 2;`
+    const out = splitSqlStatements(sql)
+    expect(out.length).toBe(2)
+    expect(out[0]).toContain('SELECT 1')
+    expect(out[1]).toBe('SELECT 2')
+  })
+
+  test('line comment with ; ignored as a terminator', () => {
+    const sql = `SELECT 1 -- ignore; this; please\n; SELECT 2;`
+    const out = splitSqlStatements(sql)
+    expect(out.length).toBe(2)
+    expect(out[1]).toBe('SELECT 2')
+  })
+
+  test('bare $1 positional param not treated as dollar quote', () => {
+    const sql = `SELECT * FROM t WHERE id = $1; SELECT 2;`
+    const out = splitSqlStatements(sql)
+    expect(out.length).toBe(2)
+    expect(out[0]).toContain('$1')
+  })
+
+  test('nested block comments', () => {
+    const sql = `/* outer /* inner; */ still in outer; */ SELECT 1;`
+    const out = splitSqlStatements(sql)
+    expect(out.length).toBe(1)
+    expect(out[0]).toContain('SELECT 1')
+  })
+
+  test('real schema.sql DO blocks each parse to a single statement', () => {
+    // Validates the actual fix against the production schema file.
+    const schemaPath = resolve(import.meta.dir, '../src/db/schema.sql')
+    const ddl = readFileSync(schemaPath, 'utf-8')
+    const stmts = splitSqlStatements(ddl)
+
+    // Sanity: nothing was split mid-dollar-quote — i.e. no statement
+    // contains an unmatched/odd count of $$ tokens.
+    for (const s of stmts) {
+      const dollarCount = (s.match(/\$\$/g) || []).length
+      expect(dollarCount % 2).toBe(0)
+    }
+
+    // Each DO block should be a single statement that includes both
+    // its opening "DO $$" and closing "END $$".
+    const doBlocks = stmts.filter((s) => /\bDO\s+\$\$/i.test(s))
+    expect(doBlocks.length).toBeGreaterThan(0)
+    for (const s of doBlocks) {
+      expect(s).toMatch(/END\s+\$\$/i)
+    }
+  })
+})