diff --git a/.dockerignore b/.dockerignore
new file mode 100644
index 0000000..0fee275
--- /dev/null
+++ b/.dockerignore
@@ -0,0 +1,19 @@
+node_modules
+dist
+coverage
+.git
+.gitignore
+*.md
+!README.md
+.vscode
+.idea
+*.log
+.env
+.env.local
+*.test.ts
+*.test.js
+vitest.config.ts
+vitest.config.js
+Dockerfile
+.dockerignore
+
diff --git a/DOCKER.md b/DOCKER.md
new file mode 100644
index 0000000..f935499
--- /dev/null
+++ b/DOCKER.md
@@ -0,0 +1,97 @@
+# Docker Setup
+
+This document explains how to build and run the Perplexity MCP Server using Docker.
+
+## Prerequisites
+
+- Docker installed on your system
+- A Perplexity API key from the [API Portal](https://www.perplexity.ai/account/api/group)
+
+## Building the Docker Image
+
+Build the Docker image from the project root:
+
+```bash
+docker build -t perplexity-mcp-server .
+```
+
+## Running the Container
+
+### Basic Usage
+
+Run the container with your API key:
+
+```bash
+docker run --rm -e PERPLEXITY_API_KEY=your_key_here perplexity-mcp-server
+```
+
+### With Custom Timeout
+
+Set a custom timeout for requests (default is 5 minutes):
+
+```bash
+docker run --rm \
+  -e PERPLEXITY_API_KEY=your_key_here \
+  -e PERPLEXITY_TIMEOUT_MS=600000 \
+  perplexity-mcp-server
+```
+
+### With Proxy Support
+
+If you're behind a corporate proxy, configure it:
+
+```bash
+docker run --rm \
+  -e PERPLEXITY_API_KEY=your_key_here \
+  -e PERPLEXITY_PROXY=https://your-proxy-host:8080 \
+  perplexity-mcp-server
+```
+
+Or with authentication:
+
+```bash
+docker run --rm \
+  -e PERPLEXITY_API_KEY=your_key_here \
+  -e PERPLEXITY_PROXY=https://username:password@your-proxy-host:8080 \
+  perplexity-mcp-server
+```
+
+### Using Environment File
+
+Create a `.env` file:
+
+```bash
+PERPLEXITY_API_KEY=your_key_here
+PERPLEXITY_TIMEOUT_MS=600000
+PERPLEXITY_PROXY=https://your-proxy-host:8080
+```
+
+Then run:
+
+```bash
+docker run --rm --env-file .env perplexity-mcp-server
+```
+
+## Integration with MCP Clients
+
+When using Docker with MCP clients, configure them to run the Docker container. For example, in Cursor/VS Code's `mcp.json`:
+
+```json
+{
+  "mcpServers": {
+    "perplexity": {
+      "command": "docker",
+      "args": [
+        "run",
+        "--rm",
+        "-i",
+        "-e", "PERPLEXITY_API_KEY=your_key_here",
+        "perplexity-mcp-server"
+      ]
+    }
+  }
+}
+```
+
+> **Note**: Docker-based MCP server configuration may have limitations compared to direct `npx` usage. For most use cases, the `npx` method documented in the main README is recommended.
+
diff --git a/Dockerfile b/Dockerfile
index bf44767..836d223 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -1,10 +1,15 @@
 FROM node:22.12-alpine AS builder
 
-COPY . /app
-
 WORKDIR /app
 
-RUN --mount=type=cache,target=/root/.npm npm install
+COPY package*.json ./
+COPY tsconfig.json ./
+
+RUN --mount=type=cache,target=/root/.npm npm install --ignore-scripts
+
+COPY . .
+
+RUN npm run build
 
 FROM node:22-alpine AS release