diff --git a/.gitignore b/.gitignore
index efc628ec5..95031f272 100644
--- a/.gitignore
+++ b/.gitignore
@@ -67,4 +67,5 @@ target
 examples/**/build/
 
 # Performance test results
-**/performance-tests/results/
\ No newline at end of file
+**/performance-tests/results/
+
diff --git a/contract-tests/images/applications/psycopg2/psycopg2_server.py b/contract-tests/images/applications/psycopg2/psycopg2_server.py
index 4f4acbde9..04cb0b9f8 100644
--- a/contract-tests/images/applications/psycopg2/psycopg2_server.py
+++ b/contract-tests/images/applications/psycopg2/psycopg2_server.py
@@ -10,9 +10,10 @@
 from typing_extensions import override
 
 _PORT: int = 8080
-_SUCCESS: str = "success"
+_DROP_TABLE: str = "drop_table"
 _ERROR: str = "error"
 _FAULT: str = "fault"
+_CREATE_DATABASE: str = "create_database"
 
 _DB_HOST = os.getenv("DB_HOST")
 _DB_USER = os.getenv("DB_USER")
@@ -26,11 +27,17 @@ class RequestHandler(BaseHTTPRequestHandler):
     def do_GET(self):
         status_code: int = 200
         conn = psycopg2.connect(dbname=_DB_NAME, user=_DB_USER, password=_DB_PASS, host=_DB_HOST)
-        if self.in_path(_SUCCESS):
+        conn.autocommit = True  # CREATE DATABASE cannot run in a transaction block
+        if self.in_path(_DROP_TABLE):
             cur = conn.cursor()
             cur.execute("DROP TABLE IF EXISTS test_table")
             cur.close()
             status_code = 200
+        elif self.in_path(_CREATE_DATABASE):
+            cur = conn.cursor()
+            cur.execute("CREATE DATABASE test_database")
+            cur.close()
+            status_code = 200
         elif self.in_path(_FAULT):
             cur = conn.cursor()
             try:
diff --git a/contract-tests/tests/test/amazon/psycopg2/psycopg2_test.py b/contract-tests/tests/test/amazon/psycopg2/psycopg2_test.py
index 809041899..a6e619b97 100644
--- a/contract-tests/tests/test/amazon/psycopg2/psycopg2_test.py
+++ b/contract-tests/tests/test/amazon/psycopg2/psycopg2_test.py
@@ -51,9 +51,13 @@ def get_application_extra_environment_variables(self) -> Dict[str, str]:
     def get_application_image_name(self) -> str:
         return "aws-application-signals-tests-psycopg2-app"
 
-    def test_success(self) -> None:
+    def test_drop_table_succeeds(self) -> None:
         self.mock_collector_client.clear_signals()
-        self.do_test_requests("success", "GET", 200, 0, 0, sql_command="DROP TABLE")
+        self.do_test_requests("drop_table", "GET", 200, 0, 0, sql_command="DROP TABLE")
+
+    def test_create_database_succeeds(self) -> None:
+        self.mock_collector_client.clear_signals()
+        self.do_test_requests("create_database", "GET", 200, 0, 0, sql_command="CREATE DATABASE")
 
     def test_fault(self) -> None:
         self.mock_collector_client.clear_signals()