diff --git a/.dockerignore b/.dockerignore
new file mode 100644
index 000000000..1a97502fd
--- /dev/null
+++ b/.dockerignore
@@ -0,0 +1,23 @@
+node_modules
+.next
+out
+standalone
+
+npm-debug.log*
+yarn-debug.log*
+yarn-error.log*
+.pnpm-debug.log*
+
+.env*
+!.env.example
+
+.git
+.gitignore
+
+.DS_Store
+*.swp
+.idea
+.vscode
+
+coverage
+.cache
diff --git a/Dockerfile.local b/Dockerfile.local
new file mode 100644
index 000000000..016a0be9e
--- /dev/null
+++ b/Dockerfile.local
@@ -0,0 +1,21 @@
+FROM node:20-bookworm-slim
+WORKDIR /app
+
+# Copy package files first for better layer caching
+COPY package*.json ./
+RUN npm install
+
+# Copy source code
+COPY . .
+
+# Set development environment
+ENV NODE_ENV=development
+
+# Copy entrypoint script
+COPY ./entrypoint.sh /usr/local/bin/entrypoint.sh
+RUN chmod +x /usr/local/bin/entrypoint.sh
+
+EXPOSE 3000
+
+ENTRYPOINT ["/usr/local/bin/entrypoint.sh"]
+CMD ["npm", "run", "dev"]
\ No newline at end of file
diff --git a/README.md b/README.md
index a18de5f09..7bd7973c0 100644
--- a/README.md
+++ b/README.md
@@ -56,6 +56,57 @@ Visit `http://localhost:3000` and start chatting. Use the prompts on the start s
 npm run build
 ```
 
+### Run with Docker
+
+Build the production image and run it locally:
+
+```bash
+docker build -t chatkit-app .
+docker run --rm -p 3000:3000 --env-file .env.local chatkit-app
+```
+
+Or pass env vars explicitly:
+
+```bash
+docker run --rm -p 3000:3000 \
+  -e OPENAI_API_KEY="..." \
+  -e NEXT_PUBLIC_CHATKIT_WORKFLOW_ID="wf_..." \
+  chatkit-app
+```
+
+Visit `http://localhost:3000`.
+
+### Mount env file, then start service
+
+If you prefer mounting `.env.local` rather than passing `--env-file`, the image has an entrypoint that reads `/app/.env.local` before starting:
+
+```bash
+docker run --rm -p 3000:3000 \
+  -v $(pwd)/.env.local:/app/.env.local:ro \
+  chatkit-app
+```
+
+### Develop inside Docker (hot reload)
+
+Use the local development setup with bind mounts and your local env:
+
+```bash
+# Create your environment file
+cp .env.example .env.local
+# Edit .env.local with your OPENAI_API_KEY and NEXT_PUBLIC_CHATKIT_WORKFLOW_ID
+
+# Start the development container
+docker-compose -f docker-compose.local.yml down
+docker-compose -f docker-compose.local.yml up --build
+```
+
+This runs `npm run dev` in a container with:
+- Hot reload enabled (source code mounted from host)
+- DNS configured for external API access
+- Port 3000 exposed to host
+- Environment variables loaded from `.env.local`
+
+Visit `http://localhost:3000` and start chatting. Your code changes will trigger hot reload inside the container.
 Before deploying your app, you need to verify the domain by adding it to the [Domain allowlist](https://platform.openai.com/settings/organization/security/domain-allowlist) on your dashboard.
 
 ## Customization Tips
diff --git a/docker-compose.local.yml b/docker-compose.local.yml
new file mode 100644
index 000000000..6ea592ecf
--- /dev/null
+++ b/docker-compose.local.yml
@@ -0,0 +1,26 @@
+services:
+  app:
+    build:
+      context: .
+      dockerfile: Dockerfile.local
+    container_name: nextjs-dev
+    ports:
+      - "3000:3000"
+    env_file:
+      - .env.local
+    volumes:
+      - .:/app
+      - /app/node_modules
+      - /app/.next
+    environment:
+      - NODE_ENV=development
+      # Ensure Node.js can resolve external APIs
+      - NODE_TLS_REJECT_UNAUTHORIZED=0  # Only for dev if SSL issues
+    dns:
+      - 8.8.8.8
+      - 8.8.4.4
+    # Add this to use host network stack (best for local dev)
+    network_mode: bridge
+    stdin_open: true
+    tty: true
+    restart: unless-stopped
\ No newline at end of file
diff --git a/entrypoint.sh b/entrypoint.sh
new file mode 100755
index 000000000..045f4e321
--- /dev/null
+++ b/entrypoint.sh
@@ -0,0 +1,25 @@
+#!/bin/sh
+set -e
+
+# Load env variables from a mounted .env.local if present
+if [ -f "/app/.env.local" ]; then
+  export $(grep -E '^[A-Za-z_][A-Za-z0-9_]*=' /app/.env.local | xargs)
+  echo "✓ Loaded environment variables from .env.local"
+fi
+
+# Validate required environment variables
+if [ -z "$OPENAI_API_KEY" ]; then
+  echo "ERROR: OPENAI_API_KEY is not set"
+  echo "Make sure it's defined in .env.local"
+  exit 1
+fi
+
+if [ -z "$NEXT_PUBLIC_CHATKIT_WORKFLOW_ID" ]; then
+  echo "ERROR: NEXT_PUBLIC_CHATKIT_WORKFLOW_ID is not set"
+  echo "Make sure it's defined in .env.local"
+  exit 1
+fi
+
+echo "✓ All required environment variables are validated"
+
+exec "$@"
\ No newline at end of file