diff --git a/ansible/playbook/tasks/files/pmm.ini b/ansible/playbook/tasks/files/pmm.ini
new file mode 100644
index 00000000..e8233963
--- /dev/null
+++ b/ansible/playbook/tasks/files/pmm.ini
@@ -0,0 +1,142 @@
+[unix_http_server]
+chmod = 0700
+username = dummy
+password = dummy
+
+[supervisord]
+logfile = /srv/logs/supervisord.log
+logfile_maxbytes = 5MB
+logfile_backups = 1
+loglevel = info
+pidfile = /tmp/supervisord.pid
+nodaemon = true
+nocleanup = false
+user = root
+strip_ansi = false
+
+[supervisorctl]
+username = dummy
+password = dummy
+
+
+; we rewrite autostart to true during update or build.
+[program:pmm-update-perform-init]
+command = /usr/sbin/pmm-update -run-playbook -playbook=/usr/share/pmm-update/ansible/playbook/tasks/init.yml
+directory = /
+autorestart = unexpected
+priority=-1
+exitcodes = 0
+autostart = false
+startretries = 3
+startsecs = 1
+stopsignal = TERM
+stopwaitsecs = 300
+stdout_logfile = /srv/logs/pmm-update-perform-init.log
+stdout_logfile_maxbytes = 50MB
+stdout_logfile_backups = 3
+redirect_stderr = true
+
+[program:postgresql]
+priority = 1
+command =
+    /usr/pgsql-14/bin/postgres
+        -D /srv/postgres14
+        -c shared_preload_libraries=pg_stat_statements
+        -c pg_stat_statements.max=10000
+        -c pg_stat_statements.track=all
+        -c pg_stat_statements.save=off
+user = postgres
+autorestart = true
+autostart = true
+startretries = 10
+startsecs = 1
+stopsignal = INT  ; Fast Shutdown mode
+stopwaitsecs = 300
+; postgresql.conf contains settings to log to stdout,
+; so we delegate logfile management to supervisord
+stdout_logfile = /srv/logs/postgresql14.log
+stdout_logfile_maxbytes = 30MB
+stdout_logfile_backups = 2
+redirect_stderr = true
+
+[program:clickhouse]
+priority = 2
+command = /usr/bin/clickhouse-server --config-file=/etc/clickhouse-server/config.xml
+autorestart = true
+autostart = true
+startretries = 10
+startsecs = 1
+stopsignal = TERM
+stopwaitsecs = 300
+; config.xml contains settings to log to stdout (console),
+; so we delegate logfile managemenet to supervisord
+stdout_logfile = /srv/logs/clickhouse-server.log
+stdout_logfile_maxbytes = 50MB
+stdout_logfile_backups = 2
+redirect_stderr = true
+
+[program:nginx]
+priority = 4
+command = nginx
+autorestart = true
+autostart = true
+startretries = 10
+startsecs = 1
+stopsignal = TERM
+stopwaitsecs = 10
+; nginx.conf contains settings to log to /dev/sdtout and /dev/stderr,
+; which allows supervisord to manage the logs further.
+stdout_logfile = /srv/logs/nginx.log
+stdout_logfile_maxbytes = 50MB
+stdout_logfile_backups = 2
+redirect_stderr = true
+
+[program:pmm-managed]
+priority = 14
+command =
+    /usr/sbin/pmm-managed
+        --victoriametrics-config=/etc/victoriametrics-promscrape.yml
+        --victoriametrics-url=http://127.0.0.1:9090/prometheus
+        --postgres-name=pmm-managed
+        --postgres-username=pmm-managed
+        --postgres-password=pmm-managed
+        --supervisord-config-dir=/etc/supervisord.d
+autorestart = true
+autostart = true
+startretries = 1000
+startsecs = 1
+stopsignal = TERM
+stopwaitsecs = 300
+stdout_logfile = /srv/logs/pmm-managed.log
+stdout_logfile_maxbytes = 50MB
+stdout_logfile_backups = 2
+redirect_stderr = true
+
+[program:pmm-agent]
+priority = 15
+command = /usr/sbin/pmm-agent --config-file=/usr/local/percona/pmm2/config/pmm-agent.yaml
+autorestart = true
+autostart = true
+startretries = 1000
+startsecs = 1
+stopsignal = TERM
+stopwaitsecs = 10
+stdout_logfile = /srv/logs/pmm-agent.log
+stdout_logfile_maxbytes = 50MB
+stdout_logfile_backups = 2
+redirect_stderr = true
+
+[program:pmm-update-perform]
+command = /usr/sbin/pmm-update -perform -playbook=/usr/share/pmm-update/ansible/playbook/tasks/update.yml
+directory = /
+autorestart = unexpected
+exitcodes = 0
+autostart = false
+startretries = 10
+startsecs = 1
+stopsignal = TERM
+stopwaitsecs = 300
+stdout_logfile = /srv/logs/pmm-update-perform.log
+stdout_logfile_maxbytes = 50MB
+stdout_logfile_backups = 3
+redirect_stderr = true
diff --git a/ansible/playbook/tasks/roles/initialization/tasks/main.yml b/ansible/playbook/tasks/roles/initialization/tasks/main.yml
index 474f5a33..491ba8b3 100644
--- a/ansible/playbook/tasks/roles/initialization/tasks/main.yml
+++ b/ansible/playbook/tasks/roles/initialization/tasks/main.yml
@@ -39,23 +39,12 @@
     path: /srv/backup
     state: directory
 
-- name: Wait until postgres socket is present before continuing
-  wait_for:
-    path: /var/run/postgresql/.s.PGSQL.5432
-
-- name: Get postgres encoding
-  postgresql_query:
-    db: pmm-managed
-    query: SHOW SERVER_ENCODING;
-  register: postgres_encoding
-  become: yes
-  become_user: postgres
-  become_method: su
-
-- debug:
-    var: postgres_encoding.query_result
-
-- name: Change encoding of pmm-managed database
+- name: Check if Postgres 11 exists
+  stat:
+    path: /srv/postgres
+  register: is_postgres_11
+
+- name: Upgrade Postgres database
   include_role:
-    name: postgres-ascii-to-utf8
-  when: "'SQL_ASCII' == postgres_encoding.query_result[0].server_encoding"
+    name: postgres
+  when: is_postgres_11.stat.exists
diff --git a/ansible/playbook/tasks/roles/postgres-ascii-to-utf8/tasks/main.yml b/ansible/playbook/tasks/roles/postgres-ascii-to-utf8/tasks/main.yml
deleted file mode 100644
index 42635c1f..00000000
--- a/ansible/playbook/tasks/roles/postgres-ascii-to-utf8/tasks/main.yml
+++ /dev/null
@@ -1,84 +0,0 @@
----
-- name: Create Postgres backup dir
-  file:
-    path: /srv/backup/postgres
-    state: directory
-    owner: postgres
-    group: postgres
-    mode: '0700'
-
-- name: Stop pmm-managed before changing encoding
-  command: supervisorctl stop pmm-managed
-  changed_when: True
-
-- name: Change encoding from SQL_ASCII to UTF-8
-  block:
-    - name: Disable connections to pmm-managed database
-      postgresql_query:
-        query: REVOKE CONNECT ON DATABASE "pmm-managed" FROM PUBLIC;
-
-    - name: Terminate all connections to pmm-managed
-      postgresql_query:
-        query: SELECT pg_terminate_backend(pid) FROM pg_stat_activity WHERE datname='pmm-managed';
-
-    - name: Dump pmm-managed database
-      postgresql_db:
-        name: pmm-managed
-        state: dump
-        target: /srv/backup/postgres/pmm-managed.sql
-
-    - name: Disable template1 as template
-      postgresql_query:
-        query: UPDATE pg_database SET datistemplate = FALSE WHERE datname = 'template1';
-
-    - name: Remove template1
-      postgresql_db:
-        name: template1
-        state: absent
-
-    - name: Create new template1 database with UTF-8
-      postgresql_db:
-        encoding: UTF-8
-        lc_collate: en_US.UTF-8
-        lc_ctype: en_US.UTF-8
-        name: template1
-        state: present
-        template: template0
-
-    - name: Enable template1 as template
-      postgresql_query:
-        query: UPDATE pg_database SET datistemplate = FALSE WHERE datname = 'template1';
-
-    - name: Remove pmm-managed database
-      postgresql_db:
-        name: pmm-managed
-        state: absent
-
-    - name: Recreate pmm-managed database with UTF-8
-      postgresql_db:
-        encoding: UTF-8
-        lc_collate: en_US.UTF-8
-        lc_ctype: en_US.UTF-8
-        name: pmm-managed
-        state: present
-
-    - name: Restore pmm-managed database
-      postgresql_db:
-        encoding: UTF-8
-        lc_collate: en_US.UTF-8
-        lc_ctype: en_US.UTF-8
-        name: pmm-managed
-        state: restore
-        target: /srv/backup/postgres/pmm-managed.sql
-
-    - name: Return connections to pmm-managed database
-      postgresql_query:
-        query: GRANT CONNECT ON DATABASE "pmm-managed" TO PUBLIC;
-
-  become: true
-  become_user: postgres
-  become_method: su
-
-- name: Start pmm-managed
-  command: supervisorctl start pmm-managed
-  changed_when: True
diff --git a/ansible/playbook/tasks/roles/postgres/tasks/main.yml b/ansible/playbook/tasks/roles/postgres/tasks/main.yml
new file mode 100644
index 00000000..a74b858e
--- /dev/null
+++ b/ansible/playbook/tasks/roles/postgres/tasks/main.yml
@@ -0,0 +1,173 @@
+---
+# Install Postgres
+- name: Add PostgreSQL 14 YUM repository
+  yum_repository:
+    name: percona-ppg-14
+    description: PostgreSQL YUM repository - x86_64
+    baseurl: http://repo.percona.com/ppg-14/yum/release/7/RPMS/x86_64
+    gpgcheck: yes
+    enabled: yes
+    gpgkey: file:///etc/pki/rpm-gpg/PERCONA-PACKAGING-KEY
+
+- name: Add PostgreSQL 11 YUM repository
+  yum_repository:
+    name: percona-ppg-11
+    description: PostgreSQL YUM repository - x86_64
+    baseurl: http://repo.percona.com/ppg-11/yum/release/7/RPMS/x86_64
+    gpgcheck: yes
+    enabled: yes
+    gpgkey: file:///etc/pki/rpm-gpg/PERCONA-PACKAGING-KEY
+
+# we need old postgres binary for upgrade process
+- name: Install Postgres
+  yum:
+    name:
+      - percona-postgresql14-server
+      - percona-postgresql14-contrib
+      - percona-postgresql14
+      - percona-postgresql11-server
+      - percona-postgresql11-contrib
+      - percona-postgresql11
+      - python-psycopg2
+    state: installed
+  when: not ansible_check_mode
+
+- name: Create Postgres log file
+  file:
+    path: /srv/logs/postgresql14.log
+    state: touch
+    force: yes
+    group: postgres
+    owner: postgres
+    mode: 0644
+
+- name: Add the user 'postgres' to group 'pmm'
+  user:
+    name: postgres
+    groups: pmm
+    append: yes
+
+- name: Check if Postgres 14 directory exists
+  stat:
+    path: /srv/postgres14
+  register: is_postgres_14
+
+- name: Upgrade (or init) postgres
+  block:
+    - name: Create Postgres data dir
+      file:
+        path: "/srv/postgres14"
+        state: directory
+        owner: postgres
+        group: postgres
+
+    - name: Initialize Postgres database
+      command: /usr/pgsql-14/bin/initdb -D /srv/postgres14
+      become: yes
+      become_user: postgres
+      become_method: su
+
+    - name: Check that supervisor socket exists (Upgrade or init)
+      stat:
+        path: /var/run/supervisor/supervisor.sock
+      register: is_upgrade
+
+    - name: Stop pmm-managed and postgres before backup database
+      supervisorctl:
+        name: "{{ item }}"
+        state: stopped
+      loop:
+        - pmm-managed
+        - postgresql
+      when: is_upgrade.stat.exists
+
+    - name: Run Postgres database without supervisor
+      command: /usr/pgsql-11/bin/pg_ctl start -D /srv/postgres
+      become: yes
+      become_user: postgres
+      become_method: su
+      when: is_upgrade.stat.exists
+
+    - name: Dump pmm-managed database
+      postgresql_db:
+        name: pmm-managed
+        state: dump
+        target: /tmp/pmm-managed-upgrade.sql
+      when: is_upgrade.stat.exists
+
+    - name: Stop Postgres database without supervisor
+      command: /usr/pgsql-11/bin/pg_ctl stop -D /srv/postgres
+      become: yes
+      become_user: postgres
+      become_method: su
+      when: is_upgrade.stat.exists
+
+    - name: Start Postgres 14 database without supervisor
+      command: /usr/pgsql-14/bin/pg_ctl start -D /srv/postgres14
+      become: yes
+      become_user: postgres
+      become_method: su
+
+    - name: Create pmm-managed database
+      postgresql_db:
+        name: pmm-managed
+        state: present
+      when: is_upgrade.stat.exists
+
+    - name: PostgresDB                | Create pmm-managed user
+      postgresql_user:
+        db: pmm-managed
+        name: pmm-managed
+        password: 'md5da757ec3e22c6d86a2bb8e70307fa937'
+        priv: 'ALL'
+        expires: infinity
+        state: present
+      when: is_upgrade.stat.exists
+
+    - name: Restore pmm-managed database
+      postgresql_db:
+        name: pmm-managed
+        state: restore
+        target: /tmp/pmm-managed-upgrade.sql
+      when: is_upgrade.stat.exists
+
+    - name: Check pg_stat_statements extension
+      postgresql_ext:
+        db: postgres
+        name: pg_stat_statements
+
+    - name: Stop Postgres 14 database without supervisor
+      command: /usr/pgsql-14/bin/pg_ctl stop -D /srv/postgres14
+      become: yes
+      become_user: postgres
+      become_method: su
+
+    - name: Rename old Postgres directory
+      copy:
+        remote_src: true
+        src: /srv/postgres
+        dest: /srv/postgres11
+      when: is_upgrade.stat.exists
+
+    - name: Remove old Postgres direcroty
+      file:
+        path: /srv/postgres
+        state: absent
+      when: is_upgrade.stat.exists
+
+    - name: Restart Postgres
+      command: supervisorctl {{ item }} postgresql
+      changed_when: True
+      loop:
+        - stop
+        - remove
+        - add
+      when: is_upgrade.stat.exists
+
+    - name: Run pmm-managed again
+      supervisorctl:
+        name: pmm-managed
+        state: started
+      when: is_upgrade.stat.exists
+  when: not is_postgres_14.stat.exists
+
diff --git a/ansible/playbook/tasks/update.yml b/ansible/playbook/tasks/update.yml
index 3c80db4b..d9b71cff 100644
--- a/ansible/playbook/tasks/update.yml
+++ b/ansible/playbook/tasks/update.yml
@@ -46,10 +46,31 @@
           - percona-grafana
         state: latest
 
+    - name: Create supervisor dir
+      file:
+        path: /etc/supervisord.d/
+        state: directory
+
+    - name: Upgrade supervisor config
+      copy:
+        src: pmm.ini
+        dest: /etc/supervisord.d/pmm.ini
+
+    - name: Remove supervisord block from pmm.ini
+      ini_file:
+        path: /etc/supervisord.d/pmm.ini
+        section: supervisord
+        state: absent
+      when: not is_docker
+
     - name: Create grafana config
       include_role:
         name: grafana
 
+    - name: Install postgres
+      include_role:
+        name: postgres
+
     # Start the services
     - name: Supervisord start        | Start supervisord service for AMI/OVF
       when: not is_docker
@@ -192,11 +213,6 @@
           - screen
           - yum-cron
 
-    - name: Check pg_stat_statements extension
-      postgresql_ext:
-        db: postgres
-        name: pg_stat_statements
-
     # https://jira.percona.com/browse/PMM-9298
     - name: Copy rezise-xfs file for lvm
       file:
@@ -244,8 +260,7 @@
       command: supervisorctl {{ item.1 }} {{ item.0 }}
       changed_when: True
       with_nested:
-        - - postgresql
-          - alertmanager
+        - - alertmanager
           - grafana
           - qan-api2
           - pmm-agent