Supabase provides a robust platform with a full Postgres database, making it an excellent choice for Laravel PHP applications due to Laravel's built-in Postgres adapter. The process involves creating a new Laravel application from scratch, setting up user authentication using the Laravel Breeze starter kit, and connecting it to the Supabase Postgres database. Supabase is highlighted as a strong free alternative to Heroku Postgres, with tools available for easy migration. Users are advised to update their PHP and Composer versions before scaffolding a new Laravel project and to secure their database credentials when setting up the Supabase project. Additionally, adjustments in the schema settings and running database migrations are necessary steps to align the Laravel application with Supabase's configurations. The guide emphasizes the utility and ease of using Supabase for managing Postgres databases alongside Laravel's authentication and user management features.