diff --git a/web/config.py b/web/config.py
index 5ee3410d1..5f22c881f 100644
--- a/web/config.py
+++ b/web/config.py
@@ -78,7 +78,10 @@ CONSOLE_LOG_FORMAT = '%(asctime)s: %(levelname)s\t%(name)s:\t%(message)s'
 FILE_LOG_FORMAT = '%(asctime)s: %(levelname)s\t%(name)s:\t%(message)s'
 
 # Log file name
-LOG_FILE = 'pgadmin4.log'
+LOG_FILE = os.path.join(
+    os.path.realpath(os.path.expanduser('~/.pgadmin/')),
+    'pgadmin4.log'
+    )
 
 ##########################################################################
 # Server settings
@@ -144,9 +147,34 @@ SETTINGS_SCHEMA_VERSION = 8
 # settings. This default places the file in the same directory as this
 # config file, but generates an absolute path for use througout the app.
 SQLITE_PATH = os.path.join(
-        os.path.dirname(os.path.realpath(__file__)),
-        'pgadmin4.db'
-        )
+    os.path.realpath(os.path.expanduser('~/.pgadmin/')),
+    'pgadmin4.db'
+    )
+
+##########################################################################
+# Server-side session storage path
+#
+# SESSION_DB_PATH (Default: $HOME/.pgadmin4/sessions)
+##########################################################################
+#
+# We use SQLite for server-side session storage. There will be one
+# SQLite database object per session created.
+#
+# Specify the path used to store your session objects.
+#
+# If the specified directory does not exist, the setup script will create
+# it with permission mode 700 to keep the session database secure.
+#
+# On certain systems, you can use shared memory (tmpfs) for maximum
+# scalability, for example, on Ubuntu:
+#
+# SESSION_DB_PATH = '/run/shm/pgAdmin4_session'
+#
+##########################################################################
+SESSION_DB_PATH = os.path.join(
+    os.path.realpath(os.path.expanduser('~/.pgadmin/')),
+    'sessions'
+    )
 
 ##########################################################################
 # Mail server settings
diff --git a/web/pgadmin/__init__.py b/web/pgadmin/__init__.py
index 0c6f7eda4..3901c815a 100644
--- a/web/pgadmin/__init__.py
+++ b/web/pgadmin/__init__.py
@@ -24,6 +24,8 @@ from werkzeug.utils import find_modules
 import sys
 import logging
 
+from pgadmin.utils.session import ServerSideSessionInterface
+
 
 # Configuration settings
 import config
@@ -99,6 +101,11 @@ def create_app(app_name=config.APP_NAME):
     app.jinja_env.trim_blocks = True
     app.config.from_object(config)
 
+    ##########################################################################
+    # Setup session management
+    ##########################################################################
+    app.session_interface = ServerSideSessionInterface(config.SESSION_DB_PATH)
+
     ##########################################################################
     # Setup logging and log the application startup
     ##########################################################################
diff --git a/web/pgadmin/utils/session.py b/web/pgadmin/utils/session.py
new file mode 100644
index 000000000..475810255
--- /dev/null
+++ b/web/pgadmin/utils/session.py
@@ -0,0 +1,235 @@
+##########################################################################
+#
+# pgAdmin 4 - PostgreSQL Tools
+#
+# Copyright (C) 2013 - 2016, The pgAdmin Development Team
+# This software is released under the PostgreSQL Licence
+#
+##########################################################################
+
+"""
+Implements the server-side session management.
+
+Credit/Reference: http://flask.pocoo.org/snippets/86/
+
+Modified to support both Python 2.6+ & Python 3.x
+"""
+
+import os
+import errno
+import sqlite3
+from uuid import uuid4
+try:
+    from cPickle import dumps, loads
+except:
+    from pickle import dumps, loads
+
+from collections import MutableMapping
+from flask import request
+from flask.sessions import SessionInterface, SessionMixin
+
+
+class SqliteSessionStorage(MutableMapping, SessionMixin):
+    """
+    A class to store the session as sqlite object.
+    """
+
+    _create_sql = (
+        'CREATE TABLE IF NOT EXISTS pg_session '
+        '('
+        '  key TEXT PRIMARY KEY,'
+        '  val BLOB'
+        ')'
+        )
+    _get_sql = 'SELECT val FROM pg_session WHERE key = ?'
+    _set_sql = 'REPLACE INTO pg_session (key, val) VALUES (?, ?)'
+    _del_sql = 'DELETE FROM pg_session WHERE key = ?'
+    _ite_sql = 'SELECT key FROM pg_session'
+    _len_sql = 'SELECT COUNT(*) FROM pg_session'
+
+    def __init__(self, directory, sid, *args, **kwargs):
+        """Initialize the session storage for this particular session. If
+        requires, creates new sqlite database per session (if require).
+        """
+        self.path = os.path.join(directory, sid)
+        self.directory = directory
+        self.sid = sid
+        self.modified = False
+        self.conn = None
+        if not os.path.exists(self.path):
+            sess_db = os.open(self.path, os.O_CREAT, int("600", 8))
+            os.close(sess_db)
+
+            with self._get_conn() as conn:
+                conn.execute(self._create_sql)
+                self.new = True
+
+    def __getitem__(self, key):
+        """Reads the session data for the particular key from the sqlite
+        database.
+        """
+        key = dumps(key, 0)
+        rv = None
+        with self._get_conn() as conn:
+            for row in conn.execute(self._get_sql, (key,)):
+                rv = loads(str(row[0]))
+                break
+        if rv is None:
+            raise KeyError('Key not in this session')
+        return rv
+
+    def __setitem__(self, key, value):
+        """Stores the session data for the given key.
+        """
+        key = dumps(key, 0)
+        value = dumps(value, 2)
+        with self._get_conn() as conn:
+            conn.execute(self._set_sql, (key, sqlite3.Binary(value)))
+        self.modified = True
+
+    def __delitem__(self, key):
+        """Removes the session data representing the key from the session.
+        """
+        key = dumps(key, 0)
+        with self._get_conn() as conn:
+            conn.execute(self._del_sql, (key,))
+        self.modified = True
+
+    def __iter__(self):
+        """Returns the iterator of the key, value pair stored under this
+        session.
+        """
+        with self._get_conn() as conn:
+            for row in conn.execute(self._ite_sql):
+                yield loads(str(row[0]))
+
+    def __len__(self):
+        """Returns the number of keys stored in this session.
+        """
+        with self._get_conn() as conn:
+            for row in conn.execute(self._len_sql):
+                return row[0]
+
+    def _get_conn(self):
+        """Connection object to the sqlite database object.
+        """
+        if not self.conn:
+            self.conn = sqlite3.Connection(self.path)
+        return self.conn
+
+    # These proxy classes are needed in order
+    # for this session implementation to work properly.
+    # That is because sometimes flask will chain method calls
+    # with session'setdefault' calls.
+    # Eg: session.setdefault('_flashes', []).append(1)
+    # With these proxies, the changes made by chained
+    # method calls will be persisted back to the sqlite
+    # database.
+    class CallableAttributeProxy(object):
+        """
+        A proxy class to represent the callable attributes of a object.
+        """
+
+        def __init__(self, session, key, obj, attr):
+            """Initialize the proxy instance for the callable attribute.
+            """
+            self.session = session
+            self.key = key
+            self.obj = obj
+            self.attr = attr
+
+        def __call__(self, *args, **kwargs):
+            """Returns the callable attributes for this session.
+            """
+            rv = self.attr(*args, **kwargs)
+            self.session[self.key] = self.obj
+            return rv
+
+    class PersistedObjectProxy(object):
+        """
+        A proxy class to represent the persistent object.
+        """
+
+        def __init__(self, session, key, obj):
+            """Initialize the persitent objects under the session.
+            """
+            self.session = session
+            self.key = key
+            self.obj = obj
+
+        def __getattr__(self, name):
+            """Returns the attribute of the persistent object representing by
+            the name for this object.
+            """
+            attr = getattr(self.obj, name)
+            if callable(attr):
+                return SqliteSessionStorage.CallableAttributeProxy(
+                    self.session, self.key, self.obj, attr
+                    )
+            return attr
+
+    def setdefault(self, key, value):
+        """Sets the default value for the particular key in the session.
+        """
+
+        if key not in self:
+            self[key] = value
+            self.modified = True
+
+        return SqliteSessionStorage.PersistedObjectProxy(
+            self, key, self[key]
+            )
+
+
+class ServerSideSessionInterface(SessionInterface):
+    """
+    Implements the SessionInterface to support saving/opening session
+    as sqlite object.
+    """
+
+    def __init__(self, directory):
+        """Initialize the session interface, which uses the sqlite as local
+        storage, and works as server side session manager.
+
+        It takes directory as parameter, and creates the directory with 700
+        permission (if not exists).
+        """
+        directory = os.path.abspath(directory)
+        if not os.path.exists(directory):
+            os.makedirs(directory, int('700', 8))
+        self.directory = directory
+
+    def open_session(self, app, request):
+        """
+        Returns the SqliteSessionStorage object representing this session.
+        """
+        sid = request.cookies.get(app.session_cookie_name)
+        if not sid:
+            sid = str(uuid4())
+        return SqliteSessionStorage(self.directory, sid)
+
+    def save_session(self, app, session, response):
+        """
+        Saves/Detroys the session object.
+        """
+        sid = request.cookies.get(app.session_cookie_name)
+        domain = self.get_cookie_domain(app)
+        if not session:
+            try:
+                if session is None:
+                    session = SqliteSessionStorage(self.directory, sid)
+                os.unlink(session.path)
+            except OSError as ex:
+                if ex.errno != errno.ENOENT:
+                    raise
+            if session.modified:
+                response.delete_cookie(
+                    app.session_cookie_name,
+                    domain=domain
+                    )
+            return
+        cookie_exp = self.get_expiration_time(app, session)
+        response.set_cookie(
+            app.session_cookie_name, session.sid,
+            expires=cookie_exp, httponly=True, domain=domain
+            )
diff --git a/web/setup.py b/web/setup.py
index 5b407c1e0..690744a31 100644
--- a/web/setup.py
+++ b/web/setup.py
@@ -287,6 +287,12 @@ Exiting...""" % (version.value))
                 ))
             do_upgrade(app, user_datastore, security, version)
     else:
+        directory = os.path.dirname(config.SQLITE_PATH)
+        if not os.path.exists(directory):
+            os.makedirs(directory, int('700', 8))
+        db_file = os.open(config.SQLITE_PATH, os.O_CREAT, int('600', 8))
+        os.close(db_file)
+
         print("""
 The configuration database - '{0}' does not exist.
 Entering initial setup mode...""".format(config.SQLITE_PATH))