diff --git a/setup.sh b/setup.sh
index 57f339a..9239193 100644
--- a/setup.sh
+++ b/setup.sh
@@ -140,6 +140,13 @@ sleep 3
 echo -e "${GREEN}✓ App container ready${NC}"
 echo ""
 
+# Step 5.5: Fix permissions on storage and bootstrap/cache
+echo -e "${YELLOW}→ Setting directory permissions...${NC}"
+chmod -R 777 src/storage src/bootstrap/cache 2>/dev/null || true
+docker compose exec -T app chmod -R 777 storage bootstrap/cache 2>/dev/null || true
+echo -e "${GREEN}✓ Permissions set${NC}"
+echo ""
+
 # Step 6: Wait for database
 if [ "$DB" = "mysql" ]; then
     echo -e "${YELLOW}→ Waiting for MySQL to be ready...${NC}"