diff --git a/services/search-service/src/__tests__/unit/psql/query.builder.unit.ts b/services/search-service/src/__tests__/unit/psql/query.builder.unit.ts
index aa23b4a887..6e1931a86f 100644
--- a/services/search-service/src/__tests__/unit/psql/query.builder.unit.ts
+++ b/services/search-service/src/__tests__/unit/psql/query.builder.unit.ts
@@ -6,10 +6,49 @@ import {buildTestsRunner} from '../runner';
 import {PsqlQueryBuilder} from '../../../classes';
 import {expect} from '@loopback/testlab';
 import {testModelList, testModelListWithIdentifier} from '../..';
+import {AnyObject} from '@loopback/repository';
 
 describe('PostgreSQL QueryBuilder', () => {
   const queryPart =
     " from public.TestSearchedCustom where to_tsvector(public.f_concat_ws(' ', about, identifier)) @@ to_tsquery($1))";
+
+  describe('_formatAndSanitize', () => {
+    it('should preserve dots in search terms', () => {
+      const builder = new PsqlQueryBuilder({match: 'Deal 10.1'});
+      const result = (builder as AnyObject)._formatAndSanitize('Deal 10.1');
+      expect(result).to.equal('Deal:*<->10.1:*');
+    });
+
+    it('should handle project names with dots', () => {
+      const builder = new PsqlQueryBuilder({match: 'test'});
+      const result = (builder as AnyObject)._formatAndSanitize('testlift.QA');
+      expect(result).to.equal('testlift.QA:*');
+    });
+
+    it('should handle multiple dots in different positions', () => {
+      const builder = new PsqlQueryBuilder({match: 'test'});
+      const result = (builder as AnyObject)._formatAndSanitize(
+        'Project.Alpha.Beta',
+      );
+      expect(result).to.equal('Project.Alpha.Beta:*');
+    });
+
+    it('should handle mix of dots and special characters', () => {
+      const builder = new PsqlQueryBuilder({match: 'test'});
+      const result = (builder as AnyObject)._formatAndSanitize(
+        'Deal.10 & Test.1.5',
+      );
+      expect(result).to.equal('Deal.10:*<->Test.1.5:*');
+    });
+
+    it('should handle complex search with dots and spaces', () => {
+      const builder = new PsqlQueryBuilder({match: 'test'});
+      const result = (builder as AnyObject)._formatAndSanitize(
+        'Version 2.5 (Release)',
+      );
+      expect(result).to.equal('Version:*<->2.5:*<->Release:*');
+    });
+  });
   describe(
     'with match parameter',
     buildTestsRunner(
diff --git a/services/search-service/src/classes/psql/query.builder.ts b/services/search-service/src/classes/psql/query.builder.ts
index 6312d923d1..c9855de0fb 100644
--- a/services/search-service/src/classes/psql/query.builder.ts
+++ b/services/search-service/src/classes/psql/query.builder.ts
@@ -78,11 +78,17 @@ export class PsqlQueryBuilder<T extends Model> extends SearchQueryBuilder<T> {
   }
 
   _formatAndSanitize(param: string) {
-    return param
-      .replace(/[^A-Za-z\s0-9]/g, ' ')
-      .split(' ')
-      .filter(p => p)
-      .map(p => `${p}:*`)
-      .join('<->');
+    let result = param;
+    while (result.endsWith('.')) {
+      result = result.slice(0, -1);
+    }
+
+    return result
+      .replace(/[!&|<>():'"]/g, ' ') // Remove PostgreSQL tsquery special chars
+      .replace(/[^A-Za-z0-9.\s]/g, ' ') // Keep dots, remove other symbols
+      .split(/\s+/) // Split on any whitespace (not just spaces)
+      .filter(p => p && p !== '.') // Filter empty and standalone dots
+      .map(p => `${p}:*`) // Add prefix match operator
+      .join('<->'); // Join with followed-by operator
   }
 }