diff --git a/DOCKER.md b/DOCKER.md
new file mode 100644
index 0000000..af2afa5
--- /dev/null
+++ b/DOCKER.md
@@ -0,0 +1,67 @@
+# Running SystemCraft with Docker
+
+SystemCraft provides a fully configured Docker environment for easy local development, testing, and deployment.
+
+## Prerequisites
+
+Before getting started, ensure you have the following installed on your system:
+- [Docker](https://docs.docker.com/get-docker/)
+- [Docker Compose](https://docs.docker.com/compose/install/)
+
+You also must have your environment variables configured. Create a `.env` file in the root directory (you can copy the provided `.env.example` file and fill in your values).
+
+```bash
+cp .env.example .env
+```
+
+---
+
+## Quick Start
+
+### 1. Build and Start
+
+To build your containers and start the application in detached mode (running in the background), run:
+
+```bash
+docker-compose up --build -d
+```
+
+### 2. Access the Application
+
+Once the containers are successfully running, the web application will be accessible in your localized environment.
+
+Open your browser and navigate to:
+[http://localhost:3000](http://localhost:3000)
+
+---
+
+## Useful Docker Commands
+
+Here are some helpful commands for managing your SystemCraft Docker environment:
+
+- **View live logs:**
+  ```bash
+  docker-compose logs -f
+  ```
+
+- **Stop all containers:**
+  ```bash
+  docker-compose down
+  ```
+
+- **Stop containers and remove associated volumes** (useful for a complete reset):
+  ```bash
+  docker-compose down -v
+  ```
+
+- **Rebuild specific services without cache:**
+  ```bash
+  docker-compose build --no-cache
+  ```
+
+---
+
+## Troubleshooting
+
+- **Port Conflicts:** If `http://localhost:3000` is already in use by another application, you can modify the port mapping in the `docker-compose.yml` file under the `web` service ports configuration (e.g., `"8080:3000"`).
+- **Environment Variables:** If you encounter authentication or database errors on boot, ensure your `.env` contains the required keys (`NEXT_PUBLIC_FIREBASE_API_KEY`, `MONGODB_URL`, etc.). The Docker configuration automatically injects these public variables at build time and secret variables at runtime.
diff --git a/README.md b/README.md
index 36e90fc..980ffe5 100644
--- a/README.md
+++ b/README.md
@@ -4,6 +4,8 @@
 
 SystemCraft is a high-fidelity system design interview simulator. It combines an interactive architectural canvas with a sophisticated AI engine to evaluate your designs against real-world constraints, providing deep insights into trade-offs, scalability, and structural integrity.
 
+[![Docker Setup Guide](https://img.shields.io/badge/Docker-Setup_Guide-2496ED?style=for-the-badge&logo=docker&logoColor=white)](./DOCKER.md)
+
 ---
 
 ## Key Features
@@ -55,6 +57,9 @@ NEXT_PUBLIC_FIREBASE_API_KEY=your_key
 npm run dev
 ```
 
+### 5. Running with Docker
+Prefer containers? Check out our dedicated [Docker Setup Guide](./DOCKER.md) for quick-start instructions using Docker Compose.
+
 ---
 
 ## 🛡️ Evaluation Engine