diff --git a/docker-local-environment/Dockerfile b/docker-local-environment/Dockerfile
new file mode 100644
index 000000000000..04fe284e7aee
--- /dev/null
+++ b/docker-local-environment/Dockerfile
@@ -0,0 +1,61 @@
+# The base image
+FROM ubuntu:20.04
+
+# Prevent interactive prompts during installation
+ENV DEBIAN_FRONTEND=noninteractive
+
+# Initialize system tools
+RUN apt-get update && apt-get install -y \
+    iputils-ping \
+    wget \
+    gnupg \
+    openjdk-17-jdk \
+    maven \
+    python3 \ 
+    python3-pip \
+    mysql-server \
+    mysql-client \
+    git \
+    curl \
+    libssl-dev \
+    build-essential \
+    net-tools \
+    sudo \
+    lsof \
+    iproute2 \
+    tar
+
+# Set JAVA_HOME globally
+ENV JAVA_HOME=/usr/lib/jvm/java-17-openjdk-arm64
+ENV PATH="$JAVA_HOME/bin:$PATH"
+
+# Verify Java installation
+RUN java -version && echo $JAVA_HOME
+
+# Download & Extract CloudStack Source Code
+RUN mkdir -p /cloudstack && \
+    wget https://dlcdn.apache.org/cloudstack/releases/4.20.0.0/apache-cloudstack-4.20.0.0-src.tar.bz2 -P /tmp && \
+    tar -xjf /tmp/apache-cloudstack-4.20.0.0-src.tar.bz2 -C /cloudstack
+
+# Set working directory
+WORKDIR /cloudstack/apache-cloudstack-4.20.0.0-src
+
+# Build from source
+RUN mvn clean install -P developer,systemvm
+
+# Ensure MySQL user has a valid shell before installation
+RUN usermod -s /bin/bash mysql
+
+# Create a MySQL data directory volume
+VOLUME /var/lib/mysql
+
+# Copy entrypoint and init scripts into CloudStack directory
+COPY docker-entrypoint.sh /cloudstack/docker-entrypoint.sh
+COPY init-mysql.sh /cloudstack/init-mysql.sh
+RUN chmod +x /cloudstack/docker-entrypoint.sh /cloudstack/init-mysql.sh
+
+# Expose CloudStack and MySQL ports
+EXPOSE 8080 3306
+
+# Keep the container running for debugging
+CMD ["tail", "-f", "/dev/null"]
diff --git a/docker-local-environment/docker-compose.yml b/docker-local-environment/docker-compose.yml
new file mode 100644
index 000000000000..a124bae613f7
--- /dev/null
+++ b/docker-local-environment/docker-compose.yml
@@ -0,0 +1,52 @@
+services:
+  mysql:
+    image: mysql:8.0
+    restart: always
+    networks:
+      cloudstack-docker_mynetwork:
+        aliases:
+          - mysql
+    environment:
+      MYSQL_ROOT_PASSWORD: rootpass
+      MYSQL_DATABASE: cloud
+      MYSQL_USER: cloud
+      MYSQL_PASSWORD: cloud
+    ports:
+      - "3306:3306"
+    volumes:
+      - mysql_data:/var/lib/mysql
+    command: [
+      "--default-authentication-plugin=mysql_native_password",
+      "--bind-address=0.0.0.0"
+    ]
+    healthcheck:
+      test: ["CMD", "mysqladmin", "ping", "-h", "localhost"]
+      interval: 5s
+      timeout: 3s
+      retries: 5  
+
+  cloudstack:
+    build: .
+    restart: no
+    depends_on:
+      mysql:
+        condition: service_healthy
+    environment:
+      DB_HOST: mysql
+      DB_USER: cloud
+      DB_PASSWORD: cloud
+    volumes:
+      - ./docker-entrypoint.sh:/cloudstack/docker-entrypoint.sh
+      - ./init-mysql.sh:/cloudstack/init-mysql.sh
+    command: "/bin/bash /cloudstack/docker-entrypoint.sh"
+    networks:
+      cloudstack-docker_mynetwork:
+        aliases:
+          - cloudstack
+
+volumes:
+  mysql_data:
+
+networks:
+  cloudstack-docker_mynetwork:
+    driver: bridge
diff --git a/docker-local-environment/docker-entrypoint.sh b/docker-local-environment/docker-entrypoint.sh
new file mode 100644
index 000000000000..d56306297cdc
--- /dev/null
+++ b/docker-local-environment/docker-entrypoint.sh
@@ -0,0 +1,25 @@
+#!/bin/bash
+set -e  # Exit immediately on error
+
+echo "----Starting MySQL container..."
+
+# Start MySQL in the background
+service mysql start
+
+# Wait for MySQL to fully initialize
+until mysqladmin ping &>/dev/null; do
+  echo "Waiting for MySQL to be ready..."
+  sleep 2
+done
+
+echo "----MySQL is running!"
+
+# Run the initialization script for database setup
+bash /cloudstack/init-mysql.sh
+
+echo "----Starting CloudStack Management Server..."
+service cloudstack-management start
+
+# Keep the container running
+exec bash
+tail -f /dev/null
diff --git a/docker-local-environment/init-mysql.sh b/docker-local-environment/init-mysql.sh
new file mode 100644
index 000000000000..96f87dd972af
--- /dev/null
+++ b/docker-local-environment/init-mysql.sh
@@ -0,0 +1,35 @@
+#!/bin/bash
+set -e  # Exit immediately on error
+
+echo "----Running MySQL initialization script..."
+
+# Wait until MySQL is ready, pings the MySQL server awaiting a response
+until mysqladmin ping &>/dev/null; do
+  echo "----Waiting for MySQL to be ready..."
+  sleep 2
+done
+
+# Validate the database exists before creating it
+DB_EXISTS=$(mysql -u root -p${MYSQL_ROOT_PASSWORD} -se "SHOW DATABASES LIKE 'cloud';")
+
+if [ -z "$DB_EXISTS" ]; then
+  echo "----Creating MySQL database..."
+  mysql -u root -p${MYSQL_ROOT_PASSWORD} -e "CREATE DATABASE cloud;"
+else
+  echo "----Database 'cloud' already exists—skipping creation."
+fi
+
+# Validate the cloud user exists before creating it
+USER_EXISTS=$(mysql -u root -p${MYSQL_ROOT_PASSWORD} -se "SELECT COUNT(*) FROM mysql.user WHERE user='cloud';")
+
+if [ "$USER_EXISTS" -eq 0 ]; then
+  echo "----Creating MySQL user..."
+  mysql -u root -p${MYSQL_ROOT_PASSWORD} -e "
+    CREATE USER 'cloud'@'%' IDENTIFIED BY 'cloud';
+    GRANT ALL PRIVILEGES ON cloud.* TO 'cloud'@'%';
+    FLUSH PRIVILEGES;"
+else
+  echo "----MySQL user 'cloud' already exists—skipping."
+fi
+
+echo "----MySQL setup complete"