diff --git a/Dockerfile b/Dockerfile
index c80527d20..3847a82dd 100755
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,3 +1,4 @@
+# Install Stage
 FROM golang:1.23.2 AS install-stage
 
 WORKDIR /build
@@ -20,14 +21,11 @@ RUN make generate && go vet ./...
 RUN make css
 RUN make release
 
-# Default final base image to Alpine Linux
+# Production Stage
 FROM alpine:3.21 AS production
 
-# Ensure we have latest packages applied
-RUN apk update \
-    && apk upgrade
+RUN apk update && apk upgrade
 
-# Create a non-root user
 RUN addgroup -g 10001 -S iota-user \
     && adduser --disabled-password --gecos '' -u 10000 --home /home/iota-user iota-user -G iota-user \
     && chown -R iota-user:iota-user /home/iota-user
@@ -40,13 +38,54 @@ ENV PATH=/home/iota-user:$PATH
 USER iota-user
 ENTRYPOINT run_server
 
+# Staging Stage
 FROM install-stage AS staging
 RUN go build -o run_server cmd/server/main.go && go build -o seed_db cmd/seed/main.go
 CMD go run cmd/migrate/main.go up && /build/seed_db && /build/run_server
 
+# Testing CI Stage
 FROM install-stage AS testing-ci
-#CMD golangci-lint run && go test -v ./...
 CMD [ "go", "test", "-v", "./..." ]
 
+# Testing Local Stage
 FROM install-stage AS testing-local
-CMD [ "gow", "test", "./..." ]
\ No newline at end of file
+CMD [ "gow", "test", "./..." ]
+
+# Development Stage
+FROM golang:1.23.2-alpine AS dev
+
+WORKDIR /app
+
+# Install required system dependencies
+RUN apk add --no-cache \
+    gcc \
+    musl-dev \
+    git \
+    curl \
+    make
+
+# Install Air for hot reloading
+RUN curl -sSfL https://raw.githubusercontent.com/cosmtrek/air/master/install.sh | sh -s -- -b $(go env GOPATH)/bin v1.61.5
+
+# Install TailwindCSS
+RUN case "$(uname -m)" in \
+      "x86_64") ARCH="x64" ;; \
+      "aarch64") ARCH="arm64" ;; \
+      *) echo "Unsupported architecture: $(uname -m)" && exit 1 ;; \
+    esac && \
+    curl -sLO https://github.com/tailwindlabs/tailwindcss/releases/download/v3.4.15/tailwindcss-linux-${ARCH} && \
+    chmod +x tailwindcss-linux-${ARCH} && \
+    mv tailwindcss-linux-${ARCH} /usr/local/bin/tailwindcss
+
+# Install templ
+RUN go install github.com/a-h/templ/cmd/templ@v0.2.793
+
+# Copy Go modules and install dependencies
+COPY go.mod go.sum ./
+RUN go mod download
+
+# Copy application source code
+COPY . .
+
+# Set Air to run on container startup
+ENTRYPOINT ["air"]
diff --git a/Makefile b/Makefile
index 4a13c821e..bb7d174ca 100644
--- a/Makefile
+++ b/Makefile
@@ -35,9 +35,13 @@ coverage-score:
 report:
 	go tool cover -html=coverage.out -o ./coverage/cover.html
 
+# Dev containers
+dev-docker:
+	docker compose -f docker-compose.dev-docker.yml up --build
+
 # Run PostgreSQL
 localdb:
-	docker compose -f docker-compose.dev.yml up
+	docker compose -f docker-compose.dev.yml up -d
 
 clear-localdb:
 	rm -rf postgres-data/
@@ -92,4 +96,4 @@ run-iota-linter:
 clean-iota-linter:
 	rm -f bin/iotalinter
 
-.PHONY: default deps test test-watch localdb migrate-up migrate-down dev css-watch css lint release release-local clean setup build-iota-linter run-iota-linter clean-iota-linter
+.PHONY: default deps test test-watch dev-docker localdb migrate-up migrate-down dev css-watch css lint release release-local clean setup build-iota-linter run-iota-linter clean-iota-linter
diff --git a/docker-compose.dev-docker.yml b/docker-compose.dev-docker.yml
new file mode 100644
index 000000000..4e3ee6b80
--- /dev/null
+++ b/docker-compose.dev-docker.yml
@@ -0,0 +1,39 @@
+version: '3.8'
+
+services:
+  app:
+    build:
+      context: .
+      dockerfile: Dockerfile
+      target: dev
+    ports:
+      - "8090:8090"
+      - "8080:8080"
+      - "3200:3200"
+    volumes:
+      - .:/app
+      - go-modules:/go/pkg/mod
+    environment:
+      - DB_HOST=db
+      - DB_USER=postgres
+      - DB_PASSWORD=postgres
+      - DB_NAME=iota_erp
+      - DB_PORT=5432
+    depends_on:
+      - db
+
+  db:
+    image: postgres:15.1
+    restart: always
+    command: [ "postgres", "-c", "log_statement=all", "-c", "log_destination=stderr", "-c", "logging_collector=off" ]
+    environment:
+      POSTGRES_USER: postgres
+      POSTGRES_PASSWORD: postgres
+      POSTGRES_DB: iota_erp
+    ports:
+      - "5432:5432"
+    volumes:
+      - ./postgres-data:/var/lib/postgresql/data
+
+volumes:
+  go-modules:
diff --git a/docs/CONTRIBUTING.MD b/docs/CONTRIBUTING.MD
index 6247326d5..3eea1706e 100644
--- a/docs/CONTRIBUTING.MD
+++ b/docs/CONTRIBUTING.MD
@@ -13,6 +13,7 @@ Before starting, ensure the following tools are installed on your system:
 
 ## 🛠️ Development Setup
 
+### Setup Locally
 1. **Clone the repository**:
    ```bash
    git clone https://github.com/iota-uz/iota-sdk.git
@@ -59,7 +60,28 @@ Before starting, ensure the following tools are installed on your system:
    air
    ```
 
-9. **Access the web app**:
+### Setup With Docker
+1. **Clone the repository**:
+   ```bash
+   git clone https://github.com/iota-uz/iota-sdk.git
+   ```
+
+2. **Make env file**:
+   ```bash
+   cp .env.example .env
+   ```
+
+3. **Run the project using Docker**:
+   ```bash
+   make dev-docker
+   ```
+
+4. **Apply database migrations and seed data**:
+   ```bash
+   make migrate-up && make seed
+   ```
+
+### Access the web app
 
    Open your browser and navigate to:  
    [http://localhost:8080](http://localhost:8080)
@@ -75,6 +97,6 @@ Before starting, ensure the following tools are installed on your system:
    TestPass123!
    ```
 
-10. **Access the GraphQL Schema**:  
+- **Access the GraphQL Schema**:  
     Open Postman and connect to:  
     [http://localhost:3200/query](http://localhost:3200/query)