Hi, @Abhay Gupta
I think you can.
However, connecting to PostgreSQL is not supported by the native binding feature, so you have to do everything from creating the connection to issuing the query yourself.
First, Python on Azure Functions does not limit individual packages.
You can set dependencies in requirements.txt and use local or remote builds to resolve the dependencies and deploy the package.
https://learn.microsoft.com/en-us/azure/azure-functions/functions-reference-python
And, as far as I can tell, psycopg3 is a non-special Python package.