diff --git a/docker-compose.yml b/docker-compose.yml
new file mode 100644
index 0000000..1b599cc
--- /dev/null
+++ b/docker-compose.yml
@@ -0,0 +1,129 @@
+version: '3.8'
+
+services:
+  app:
+    build:
+      context: .
+      target: development
+    container_name: banatie-app-dev
+    ports:
+      - "3000:3000"
+    volumes:
+      - ./src:/app/src              # Hot reload for development
+      - ./logs:/app/logs            # Persistent logs
+    networks:
+      - banatie-dev
+    depends_on:
+      postgres:
+        condition: service_healthy
+      minio:
+        condition: service_healthy
+    environment:
+      - NODE_ENV=development
+    env_file:
+      - .env.docker
+    restart: unless-stopped
+
+  postgres:
+    image: postgres:15-alpine
+    container_name: banatie-postgres-dev
+    ports:
+      - "5433:5432"                 # Avoid conflicts with system PostgreSQL
+    volumes:
+      - ./data/postgres:/var/lib/postgresql/data
+      - ./scripts/init-db.sql:/docker-entrypoint-initdb.d/01-init.sql
+    networks:
+      - banatie-dev
+    environment:
+      POSTGRES_DB: banatie_db
+      POSTGRES_USER: banatie_user
+      POSTGRES_PASSWORD: development_password
+    healthcheck:
+      test: ["CMD-SHELL", "pg_isready -U banatie_user -d banatie_db"]
+      interval: 30s
+      timeout: 10s
+      retries: 3
+      start_period: 40s
+    restart: unless-stopped
+
+  minio:
+    image: minio/minio:latest
+    container_name: banatie-minio-dev
+    ports:
+      - "9000:9000"                 # S3 API
+      - "9001:9001"                 # Web Console
+    volumes:
+      - ./data/minio:/data
+    networks:
+      - banatie-dev
+    environment:
+      MINIO_ROOT_USER: minioadmin
+      MINIO_ROOT_PASSWORD: minioadmin
+    command: server /data --console-address ":9001"
+    healthcheck:
+      test: ["CMD", "curl", "-f", "http://localhost:9000/minio/health/live"]
+      interval: 30s
+      timeout: 10s
+      retries: 3
+      start_period: 40s
+    restart: unless-stopped
+
+  minio-init:
+    image: minio/mc:latest
+    container_name: banatie-minio-init
+    networks:
+      - banatie-dev
+    depends_on:
+      minio:
+        condition: service_healthy
+    entrypoint: >
+      /bin/sh -c "
+      echo 'Setting up MinIO alias...';
+      mc alias set minio http://minio:9000 minioadmin minioadmin;
+
+      echo 'Creating demo bucket...';
+      mc mb --ignore-existing minio/banatie-demo;
+
+      echo 'Setting up public read policy for generated images...';
+      mc anonymous set download minio/banatie-demo/users/guest/generated;
+
+      echo 'Creating banatie service user...';
+      mc admin user add minio banatie-user banatie-password;
+
+      echo 'Attaching readwrite policy to banatie user...';
+      mc admin policy attach minio readwrite --user=banatie-user;
+
+      echo 'Creating lifecycle policy for temp files (7 days retention)...';
+      cat > /tmp/lifecycle.json << EOF
+      {
+        \"Rules\": [
+          {
+            \"ID\": \"temp-files-cleanup\",
+            \"Status\": \"Enabled\",
+            \"Filter\": {
+              \"Prefix\": \"users/\"
+            },
+            \"Expiration\": {
+              \"Days\": 7
+            }
+          }
+        ]
+      }
+      EOF
+      mc ilm import minio/banatie-demo < /tmp/lifecycle.json;
+
+      echo 'MinIO initialization completed successfully!';
+      exit 0;
+      "
+    restart: "no"
+
+networks:
+  banatie-dev:
+    driver: bridge
+    name: banatie-dev-network
+
+volumes:
+  postgres-data:
+    driver: local
+  minio-data:
+    driver: local
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