diff --git a/developer-guide/setup/local-dev-setup.md b/developer-guide/setup/local-dev-setup.md
new file mode 100644
index 00000000..20655add
--- /dev/null
+++ b/developer-guide/setup/local-dev-setup.md
@@ -0,0 +1,105 @@
+# Chatwoot Local Setup Guide
+
+This guide helps new developers set up Chatwoot locally with working frontend and backend environments.
+
+> ⚠️ **Note:** This guide assumes you're using **macOS** with Homebrew.
+> If you're on **Windows or Linux**, please refer to other sources.
+
+---
+
+## 🛠️ Prerequisites
+
+Ensure you have the following installed:
+
+| Tool       | Version (Recommended) | Install Command / Link                           |
+| ---------- | --------------------- | ------------------------------------------------ |
+| Ruby       | 3.x                   | `brew install ruby`                              |
+| Node.js    | 16+                   | `brew install node`                              |
+| Yarn       | 1.22+                 | `npm install -g yarn`                            |
+| PostgreSQL | 12+                   | `brew install postgresql`                        |
+| Redis      | 6+                    | `brew install redis`                             |
+| Git        | latest                | `brew install git`                               |
+| Docker     | *(optional)*          | [https://www.docker.com](https://www.docker.com) |
+
+To start services (on macOS/Homebrew):
+
+```bash
+brew services start postgresql
+brew services start redis
+```
+
+### 🪟 Windows / 🐧 Linux Users
+
+* Use package managers like `apt`, `choco`, or official installers
+* Ensure versions match the requirements above
+* See Chatwoot's official guide for distro-specific instructions
+
+---
+
+## 🚀 Backend Setup (Ruby on Rails)
+
+```bash
+# Install Ruby dependencies
+bundle install
+
+# Setup database
+bundle exec rake db:setup
+
+# Start backend server
+bundle exec rails s
+```
+
+---
+
+## 🌐 Frontend Setup (Vue.js)
+
+```bash
+# From the project root
+yarn install
+
+# Start frontend server
+yarn dev
+```
+
+App runs at: [http://localhost:3000](http://localhost:3000)
+
+---
+
+## ✅ Test Functionality
+
+1. Open `http://localhost:3000`
+2. Sign up or log in
+3. Try:
+
+   * Creating a new inbox
+   * Sending a message
+   * Switching views and navigating around
+
+---
+
+## 🧯 Troubleshooting Tips
+
+| Issue                          | Fix                                     |
+| ------------------------------ | --------------------------------------- |
+| `pg_config not found`          | Reinstall PostgreSQL via Homebrew       |
+| Redis not running              | `brew services start redis`             |
+| Node modules fail to install   | `yarn install --force`                  |
+| `webpack-dev-server` not found | `yarn install` again from project root  |
+| DB connection errors           | Ensure PostgreSQL and Redis are running |
+
+---
+
+## 📘 Notes
+
+* Use `bundle exec rails console` to open Rails console
+* Use `rails db:reset` to clear DB and start fresh
+* Logs:
+
+  * Backend: Terminal window running `rails s`
+  * Frontend: Terminal running `yarn dev`
+
+---
+
+## 👋 Final Tip
+
+If something fails, double check version requirements, restart Redis/PostgreSQL, and rerun `yarn install` or `bundle install`.
\ No newline at end of file