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Discover how to efficiently set up a virtual private server (VPS) using Hetzner Cloud and deploy N8N using Coolify, an intuitive GUI Docker manager. This guide provides step-by-step instructions to streamline your setup process.

Step 1: Order a VPS from Hetzner Cloud

Step 2: Select Your Server OS

Step 3: Install Coolify

  curl -fsSL https://cdn.coollabs.io/coolify/install.sh | bash 






After the installation, a dashboard URL like http://xx.xx.xx.xx:8000 will be displayed. Access this URL to set up your Coolify account.

Step 4: Create Database Containers

Step 5: Configure N8N Application

services:
  n8n:
    image: 'docker.n8n.io/n8nio/n8n:latest'
    environment:
      # Fully Qualified Domain Name for N8N
      - SERVICE_FQDN_N8N
      # Base URL for the n8n editor UI
      - 'N8N_EDITOR_BASE_URL=${SERVICE_FQDN_N8N}'
      # Webhook URL for n8n to receive data
      - 'WEBHOOK_URL=${SERVICE_FQDN_N8N}'
      # The host name for n8n instance
      - 'N8N_HOST=${SERVICE_DOMAIN_N8N}'
      # The timezone setting for n8n and Docker container
      - 'GENERIC_TIMEZONE="Europe/Berlin"'
      - 'TZ="Europe/Berlin"'
      # Postgres database connection details
      - 'DB_POSTGRESDB_DATABASE=${DB_POSTGRESDB_DATABASE}' # Database name for Postgres
      - 'DB_POSTGRESDB_HOST=${DB_POSTGRESDB_HOST}' # Postgres host
      - 'DB_POSTGRESDB_PASSWORD=${DB_POSTGRESDB_PASSWORD}' # Postgres password
      - 'DB_POSTGRESDB_PORT=${DB_POSTGRESDB_PORT}' # Postgres port
      - 'DB_POSTGRESDB_SCHEMA=${DB_POSTGRESDB_SCHEMA}' # Postgres database schema
      - 'DB_POSTGRESDB_USER=${DB_POSTGRESDB_USER}' # Postgres user
      # Database type, e.g., "postgresdb"
      - 'DB_TYPE=${DB_TYPE}'
      # Mode of execution, e.g., "regular" or "queue"
      - 'EXECUTIONS_MODE=${EXECUTIONS_MODE}'
      # Log level for n8n, e.g., "error", "warn", "info"
      - 'N8N_LOG_LEVEL=${N8N_LOG_LEVEL}'
      # Enable metrics for monitoring n8n performance
      - 'N8N_METRICS=${N8N_METRICS}'
      # Bull queue configuration for Redis
      - 'QUEUE_BULL_PREFIX=${QUEUE_BULL_PREFIX}' # Prefix for Bull queue names
      - 'QUEUE_BULL_REDIS_DB=${QUEUE_BULL_REDIS_DB}' # Redis database index for Bull queue
      - 'QUEUE_BULL_REDIS_HOST=${QUEUE_BULL_REDIS_HOST}' # Redis host for Bull queue
      - 'QUEUE_BULL_REDIS_PASSWORD=${QUEUE_BULL_REDIS_PASSWORD}' # Redis password for Bull queue
      - 'QUEUE_BULL_REDIS_PORT=${QUEUE_BULL_REDIS_PORT}' # Redis port for Bull queue
      # Enable diagnostics reporting and version update notifications
      - 'N8N_DIAGNOSTICS_ENABLED=${N8N_DIAGNOSTICS_ENABLED}'
      - 'N8N_VERSION_NOTIFICATIONS_ENABLED=${N8N_VERSION_NOTIFICATIONS_ENABLED}'
      # Enable workflow templates and configure external frontend hooks
      - 'N8N_TEMPLATES_ENABLED=${N8N_TEMPLATES_ENABLED}'
      - 'EXTERNAL_FRONTEND_HOOKS_URLS=${EXTERNAL_FRONTEND_HOOKS_URLS}'
      # Frontend and Backend diagnostics configuration
      - 'N8N_DIAGNOSTICS_CONFIG_FRONTEND=${N8N_DIAGNOSTICS_CONFIG_FRONTEND}'
      - 'N8N_DIAGNOSTICS_CONFIG_BACKEND=${N8N_DIAGNOSTICS_CONFIG_BACKEND}'
      # Disable onboarding flow if set to true
      - 'N8N_ONBOARDING_FLOW_DISABLED=${N8N_ONBOARDING_FLOW_DISABLED}'
    volumes:
      # Mounting volume for n8n data persistence
      - 'n8n-data:/home/node/' 







Step 6: Set Environment Variables

final Env config will look like this example:

DB_POSTGRESDB_DATABASE=postgres
DB_POSTGRESDB_HOST=k4o4wwk
DB_POSTGRESDB_PASSWORD=Ka36bNFBdHUtmvs3ZPKk2iWx8N
DB_POSTGRESDB_PORT=5432
DB_POSTGRESDB_SCHEMA=public
DB_POSTGRESDB_USER=postgres
DB_TYPE=postgresdb
EXECUTIONS_MODE=queue
EXTERNAL_FRONTEND_HOOKS_URLS=
N8N_DIAGNOSTICS_CONFIG_BACKEND=false
N8N_DIAGNOSTICS_CONFIG_FRONTEND=false
N8N_DIAGNOSTICS_ENABLED=false
N8N_LOG_LEVEL=verbose
N8N_METRICS=false
N8N_ONBOARDING_FLOW_DISABLED=true
N8N_TEMPLATES_ENABLED=true
N8N_VERSION_NOTIFICATIONS_ENABLED=true
QUEUE_BULL_PREFIX=N8N_
QUEUE_BULL_REDIS_DB=0
QUEUE_BULL_REDIS_HOST=xsksg8s
QUEUE_BULL_REDIS_PASSWORD=Si8oa82GpHLS44lw8Ssm
QUEUE_BULL_REDIS_PORT=6379
SERVICE_DOMAIN_N8N=rmQirts0xAxkgDAd
SERVICE_FQDN_N8N=http://n8n-n4cw2c.65.19.17.197.sslip.io






Final Steps: Deploy and Enjoy N8N

Additional Configurations and Tips

📘
For more detailed information on environment variables and advanced configurations, refer to the N8N Documentation.



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