diff --git a/.dockerignore b/.dockerignore
index 28fb10712f..ce7b14d46d 100644
--- a/.dockerignore
+++ b/.dockerignore
@@ -1,3 +1,71 @@
+# Configuration files - exclude potentially sensitive props but allow templates and default configs
 obp-api/src/main/resources/props/*
 !obp-api/src/main/resources/props/sample.props.template
-!obp-api/src/main/resources/props/test.default.props.template
\ No newline at end of file
+!obp-api/src/main/resources/props/test.default.props.template
+!obp-api/src/main/resources/props/test.default.props
+!obp-api/src/main/resources/props/default.props
+!obp-api/src/main/resources/props/development.default.props
+
+# IDE and editor files
+.idea/
+.vscode/
+.metals/
+.bloop/
+.run/
+.zed/
+zed/
+
+# Build artifacts and caches
+target/
+cache/
+~/.m2/
+
+# Git and version control
+.git/
+.gitignore
+
+# Environment and secret files
+.env
+.env.*
+*.key
+*.pem
+*.p12
+*.jks
+*secret*
+*password*
+
+# OS generated files
+.DS_Store
+.DS_Store?
+._*
+.Spotlight-V100
+.Trashes
+ehthumbs.db
+Thumbs.db
+
+# Log files
+*.log
+logs/
+
+# Temporary files
+*.tmp
+*.temp
+*.swp
+*.swo
+*~
+
+# Documentation and non-essential files (keep essential ones)
+README.md
+*.md
+!NOTICE
+!GNU_AFFERO_GPL_V3_19_Nov_1997.txt
+!Harmony_Individual_Contributor_Assignment_Agreement.txt
+
+# Docker files themselves (avoid recursive copies)
+Dockerfile
+development/docker/
+!development/docker/entrypoint.sh
+
+# Test and development files
+ideas/
+resourcedoc/
\ No newline at end of file
diff --git a/development/docker/.env b/development/docker/.env
new file mode 100644
index 0000000000..9f031eb4c3
--- /dev/null
+++ b/development/docker/.env
@@ -0,0 +1,17 @@
+# Docker Compose Environment Configuration for OBP-API Development
+
+# Redis Configuration
+# Set custom Redis port (externally exposed port)
+# The Redis container will be accessible on this port from the host machine
+# Default is 6380 to avoid conflicts with local Redis on 6379
+OBP_CACHE_REDIS_PORT=6380
+
+# Database Configuration
+# Set custom database URL for Docker environment
+# Default connects to host PostgreSQL via host.docker.internal
+OBP_DB_URL=jdbc:postgresql://host.docker.internal:5432/obp_mapped?user=obp&password=f
+
+# You can override these by setting environment variables:
+# export OBP_CACHE_REDIS_PORT=6381
+# export OBP_DB_URL="jdbc:postgresql://host.docker.internal:5432/mydb?user=myuser&password=mypass"
+# docker-compose up --build
\ No newline at end of file
diff --git a/Dockerfile b/development/docker/Dockerfile
similarity index 100%
rename from Dockerfile
rename to development/docker/Dockerfile
diff --git a/development/docker/Dockerfile.dev b/development/docker/Dockerfile.dev
new file mode 100644
index 0000000000..d24ca0f644
--- /dev/null
+++ b/development/docker/Dockerfile.dev
@@ -0,0 +1,28 @@
+FROM maven:3.9.6-eclipse-temurin-17
+
+WORKDIR /app
+
+# Copy Maven configuration files
+COPY pom.xml .
+COPY build.sbt .
+
+# Copy source code and necessary project files
+COPY obp-api/ ./obp-api/
+COPY obp-commons/ ./obp-commons/
+COPY project/ ./project/
+
+# Copy other necessary files for the build
+COPY jitpack.yml .
+COPY web-app_2_3.dtd .
+
+EXPOSE 8080
+
+# Build the project, skip tests to speed up
+RUN mvn install -pl .,obp-commons -am -DskipTests
+
+# Copy entrypoint script that runs mvn with needed JVM flags
+COPY development/docker/entrypoint.sh /app/entrypoint.sh
+RUN chmod +x /app/entrypoint.sh
+
+# Use script as entrypoint
+CMD ["/app/entrypoint.sh"]
\ No newline at end of file
diff --git a/development/docker/README.md b/development/docker/README.md
new file mode 100644
index 0000000000..397678231c
--- /dev/null
+++ b/development/docker/README.md
@@ -0,0 +1,241 @@
+# OBP-API Docker Development Setup
+
+This Docker Compose setup provides a complete **live development environment** for OBP-API with Redis caching support and hot reloading capabilities.
+
+## Services
+
+### 🏦 **obp-api-app** 
+- Main OBP-API application with **live development mode**
+- Built with Maven 3.9.6 + OpenJDK 17
+- Runs with Jetty Maven Plugin (`mvn jetty:run`)
+- Port: `8080`
+- **Features**: Hot reloading, incremental compilation, live props changes
+
+### 🔴 **obp-api-redis**
+- Redis cache server
+- Version: Redis 7 Alpine
+- Internal port: `6379`
+- External port: `6380` (configurable)
+- Persistent storage with AOF
+
+## Quick Start
+
+1. **Prerequisites**
+   - Docker and Docker Compose installed
+   - Local PostgreSQL database running
+   - Props file configured at `obp-api/src/main/resources/props/default.props`
+
+2. **Start services**
+   ```bash
+   cd development/docker
+   docker-compose up --build
+   ```
+
+3. **Access application**
+   - OBP-API: http://localhost:8080
+   - Redis: `localhost:6380`
+
+## Configuration
+
+### Database Connection
+
+You can configure the database connection in multiple ways:
+
+**Option 1: Props file** (traditional):
+```properties
+db.driver=org.postgresql.Driver
+db.url=jdbc:postgresql://host.docker.internal:5432/obp_mapped?user=obp&password=yourpassword
+```
+
+**Option 2: Environment variables** (recommended for Docker):
+The setup automatically overrides database settings via environment variables, so you can configure without modifying props files.
+
+### Redis Configuration
+
+Redis is configured automatically using OBP-API's environment variable override system:
+
+```yaml
+# Automatically set by docker-compose.yml:
+OBP_CACHE_REDIS_URL=redis      # Connect to redis service
+OBP_CACHE_REDIS_PORT=6379      # Internal Docker port
+OBP_DB_URL=jdbc:postgresql://host.docker.internal:5432/obp_mapped?user=obp&password=f
+```
+
+### Custom Redis Port
+
+To customize configuration, edit `.env`:
+
+```bash
+# .env file
+OBP_CACHE_REDIS_PORT=6381
+OBP_DB_URL=jdbc:postgresql://host.docker.internal:5432/mydb?user=myuser&password=mypass
+```
+
+Or set environment variables:
+
+```bash
+export OBP_CACHE_REDIS_PORT=6381
+export OBP_DB_URL="jdbc:postgresql://host.docker.internal:5432/mydb?user=myuser&password=mypass"
+docker-compose up --build
+```
+
+## Container Names
+
+All containers use consistent `obp-api-*` naming:
+
+- `obp-api-app` - Main application
+- `obp-api-redis` - Redis cache server
+- `obp-api-network` - Docker network
+- `obp-api-redis-data` - Redis data volume
+
+## Development Features
+
+### Props File Override
+
+The setup mounts your local props directory:
+```yaml
+volumes:
+  - ../../obp-api/src/main/resources/props:/app/props
+```
+
+Environment variables take precedence over props files using OBP's built-in system:
+- `cache.redis.url` → `OBP_CACHE_REDIS_URL`
+- `cache.redis.port` → `OBP_CACHE_REDIS_PORT`
+- `db.url` → `OBP_DB_URL`
+
+### Live Development Features
+
+**🔥 Hot Reloading**: `Dockerfile.dev` uses `mvn jetty:run` for automatic recompilation and reloading:
+- ✅ **Scala code changes** - Automatic recompilation and reload
+- ✅ **Props file changes** - Live configuration updates via volume mount
+- ✅ **Resource changes** - Instant refresh without container restart
+- ✅ **Incremental builds** - Only changed files are recompiled
+
+**Volume Mounts for Development**:
+```yaml
+# Automatically mounted by docker-compose:
+volumes:
+  - ../../obp-api/src/main/resources/props:/app/props  # Live props updates
+  # Source code is copied during build for optimal performance
+```
+
+## Useful Commands
+
+### Service Management
+```bash
+# Start services
+docker-compose up -d
+
+# View logs
+docker-compose logs obp-api-app
+docker-compose logs obp-api-redis
+
+# Stop services  
+docker-compose down
+
+# Rebuild and restart
+docker-compose up --build
+```
+
+### Redis Operations
+```bash
+# Connect to Redis CLI
+docker exec -it obp-api-redis redis-cli
+
+# Check Redis keys
+docker exec obp-api-redis redis-cli KEYS "*"
+
+# Monitor Redis commands
+docker exec obp-api-redis redis-cli MONITOR
+```
+
+### Container Inspection
+```bash
+# List containers
+docker-compose ps
+
+# Execute commands in containers
+docker exec -it obp-api-app bash
+docker exec -it obp-api-redis sh
+```
+
+## Troubleshooting
+
+### Redis Connection Issues
+- Check if `OBP_CACHE_REDIS_URL=redis` is set correctly
+- Verify Redis container is running: `docker-compose ps`
+- Test Redis connection: `docker exec obp-api-redis redis-cli ping`
+
+### Database Connection Issues  
+- Ensure local PostgreSQL is running
+- Verify `host.docker.internal` resolves: `docker exec obp-api-app ping host.docker.internal`
+- Check props file is mounted: `docker exec obp-api-app ls /app/props/`
+
+### Props Loading Issues
+- Check external props are detected: `docker-compose logs obp-api-app | grep "external props"`
+- Verify environment variables: `docker exec obp-api-app env | grep OBP_`
+
+## Environment Variables
+
+The setup uses OBP-API's built-in environment override system:
+
+| Props File Property | Environment Variable | Default | Description |
+|---------------------|---------------------|---------|-------------|
+| `cache.redis.url` | `OBP_CACHE_REDIS_URL` | `redis` | Redis hostname |
+| `cache.redis.port` | `OBP_CACHE_REDIS_PORT` | `6379` | Redis port |
+| `cache.redis.password` | `OBP_CACHE_REDIS_PASSWORD` | - | Redis password |
+| `db.url` | `OBP_DB_URL` | `jdbc:postgresql://host.docker.internal:5432/obp_mapped?user=obp&password=f` | Database connection URL |
+
+## Network Architecture
+
+```
+Host Machine
+├── PostgreSQL :5432
+├── Props Files (mounted) → Docker Container
+└── Docker Network (obp-api-network)
+    ├── obp-api-app :8080 → :8080 (Live Development Mode)
+    └── obp-api-redis :6379 → :6380 (Persistent Cache)
+```
+
+**Connection Flow**:
+- OBP-API ↔ Redis: Internal Docker network (`redis:6379`)
+- OBP-API ↔ PostgreSQL: Host connection (`host.docker.internal:5432`) 
+- Props Files: Live mounted from host (`/app/props/`)
+- Redis External: Accessible via `localhost:6380`
+
+## Development Benefits
+
+### ⚡ **Live Development Mode** (`Dockerfile.dev`)
+- **Single-stage build** optimized for development speed
+- **Hot reloading** with `mvn jetty:run` - code changes are reflected instantly
+- **Incremental compilation** - only changed files are rebuilt
+- **Live props updates** - configuration changes without container restart
+- **Security compliant** - selective file copying (SonarQube approved)
+
+### 🔧 **Development vs Production**
+- **Current setup**: Uses `Dockerfile.dev` for optimal development experience
+- **Production ready**: Can switch to `Dockerfile` for multi-stage production builds
+- **Best of both**: Live development with production-grade security practices
+
+### 📋 **Additional Notes**
+- Redis data persists in `obp-api-redis-data` volume
+- Props files are live-mounted from host for instant updates
+- Environment variables override props file values automatically
+- Java 17 with proper module system compatibility
+- All containers restart automatically unless stopped manually
+
+---
+
+🚀 **Ready for live development!** 
+
+```bash
+cd development/docker
+docker-compose up --build
+# Start coding - changes are reflected automatically! 🔥
+```
+
+**Pro Tips**:
+- Make code changes and see them instantly without rebuilding
+- Update props files and they're loaded immediately  
+- Use `docker-compose logs obp-api -f` to watch live application logs
+- Redis caching speeds up API responses significantly
\ No newline at end of file
diff --git a/development/docker/docker-compose.override.yml b/development/docker/docker-compose.override.yml
new file mode 100644
index 0000000000..5c2291bf36
--- /dev/null
+++ b/development/docker/docker-compose.override.yml
@@ -0,0 +1,7 @@
+version: "3.8"
+
+services:
+  obp-api:
+    volumes:
+      - ../../obp-api:/app/obp-api
+      - ../../obp-commons:/app/obp-commons
diff --git a/development/docker/docker-compose.yml b/development/docker/docker-compose.yml
new file mode 100644
index 0000000000..5b92c2c693
--- /dev/null
+++ b/development/docker/docker-compose.yml
@@ -0,0 +1,54 @@
+version: "3.8"
+
+services:
+  redis:
+    container_name: obp-api-redis
+    image: redis:7-alpine
+    ports:
+      - "${OBP_CACHE_REDIS_PORT:-6380}:6379"
+    command: redis-server --appendonly yes
+    volumes:
+      - redis_data:/data
+    networks:
+      - obp-network
+
+  obp-api:
+    container_name: obp-api-app
+    build:
+      context: ../..
+      dockerfile: development/docker/Dockerfile.dev
+    ports:
+      - "8080:8080"
+    environment:
+      # Set Lift props location to find your props files
+      - props.resource.dir=/app/props/
+      - JAVA_OPTS=-Drun.mode=production -Dprops.resource.dir=/app/props/
+      # Override Redis settings via environment variables (OBP-API system)
+      # cache.redis.url -> OBP_CACHE_REDIS_URL
+      # cache.redis.port -> OBP_CACHE_REDIS_PORT
+      - OBP_CACHE_REDIS_URL=redis
+      - OBP_CACHE_REDIS_PORT=6379
+      # Override database URL via environment variable (OBP-API system)
+      # db.url -> OBP_DB_URL
+      - OBP_DB_URL=${OBP_DB_URL:-jdbc:postgresql://host.docker.internal:5432/obp_mapped?user=obp&password=f}
+    volumes:
+      # Mount the props directory so the container uses your local props files
+      - ../../obp-api/src/main/resources/props:/app/props
+    extra_hosts:
+      # Connect to local Postgres on the host
+      # In your config file:
+      # db.url=jdbc:postgresql://host.docker.internal:5432/YOUR_DB?user=YOUR_DB_USER&password=YOUR_DB_PASSWORD
+      - "host.docker.internal:host-gateway"
+    depends_on:
+      - redis
+    networks:
+      - obp-network
+
+volumes:
+  redis_data:
+    name: obp-api-redis-data
+
+networks:
+  obp-network:
+    name: obp-api-network
+    driver: bridge
diff --git a/docker/entrypoint.sh b/development/docker/entrypoint.sh
similarity index 100%
rename from docker/entrypoint.sh
rename to development/docker/entrypoint.sh
diff --git a/docker/Dockerfile b/docker/Dockerfile
deleted file mode 100644
index 53a999d1dc..0000000000
--- a/docker/Dockerfile
+++ /dev/null
@@ -1,18 +0,0 @@
-FROM maven:3.9.6-eclipse-temurin-17
-
-WORKDIR /app
-
-# Copy all project files into container
-COPY . .
-
-EXPOSE 8080
-
-# Build the project, skip tests to speed up
-RUN mvn install -pl .,obp-commons -am -DskipTests
-
-# Copy entrypoint script that runs mvn with needed JVM flags
-COPY docker/entrypoint.sh /app/entrypoint.sh
-RUN chmod +x /app/entrypoint.sh
-
-# Use script as entrypoint
-CMD ["/app/entrypoint.sh"]
diff --git a/docker/README.md b/docker/README.md
deleted file mode 100644
index 1c46f09e0e..0000000000
--- a/docker/README.md
+++ /dev/null
@@ -1,96 +0,0 @@
-## OBP API – Docker & Docker Compose Setup
-
-This project uses Docker and Docker Compose to run the **OBP API** service with Maven and Jetty.
-
-- Java 17 with reflection workaround  
-- Connects to your local Postgres using `host.docker.internal`  
-- Supports separate dev & prod setups
-
----
-
-## How to use
-
-> **Make sure you have Docker and Docker Compose installed.**
-
-### Set up the database connection
-
-Edit your `default.properties` (or similar config file):
-
-```properties
-db.url=jdbc:postgresql://host.docker.internal:5432/YOUR_DB_NAME?user=YOUR_DB_USER&password=YOUR_DB_PASSWORD
-````
-
-> Use `host.docker.internal` so the container can reach your local database.
-
----
-
-### Build & run (production mode)
-
-Build the Docker image and run the container:
-
-```bash
-docker-compose up --build
-```
-
-The service will be available at [http://localhost:8080](http://localhost:8080).
-
----
-
-## Development tips
-
-For live code updates without rebuilding:
-
-* Use the provided `docker-compose.override.yml` which mounts only:
-
-  ```yaml
-  volumes:
-    - ../obp-api:/app/obp-api
-    - ../obp-commons:/app/obp-commons
-  ```
-* This keeps other built files (like `entrypoint.sh`) intact.
-* Avoid mounting the full `../:/app` because it overwrites the built image.
-
----
-
-## Useful commands
-
-Rebuild the image and restart:
-
-```bash
-docker-compose up --build
-```
-
-Stop the container:
-
-```bash
-docker-compose down
-```
-
----
-
-## Before first run
-
-Make sure your entrypoint script is executable:
-
-```bash
-chmod +x docker/entrypoint.sh
-```
-
----
-
-## Notes
-
-* The container uses `MAVEN_OPTS` to pass JVM `--add-opens` flags needed by Lift.
-* In production, avoid volume mounts for better performance and consistency.
-
----
-
-That’s it — now you can run:
-
-```bash
-docker-compose up --build
-```
-
-and start coding!
-
-```
\ No newline at end of file
diff --git a/docker/docker-compose.override.yml b/docker/docker-compose.override.yml
deleted file mode 100644
index 80e973a2cd..0000000000
--- a/docker/docker-compose.override.yml
+++ /dev/null
@@ -1,7 +0,0 @@
-version: "3.8"
-
-services:
-  obp-api:
-    volumes:
-      - ../obp-api:/app/obp-api
-      - ../obp-commons:/app/obp-commons
diff --git a/docker/docker-compose.yml b/docker/docker-compose.yml
deleted file mode 100644
index ca4eda42a0..0000000000
--- a/docker/docker-compose.yml
+++ /dev/null
@@ -1,14 +0,0 @@
-version: "3.8"
-
-services:
-  obp-api:
-    build:
-      context: ..
-      dockerfile: docker/Dockerfile
-    ports:
-      - "8080:8080"
-    extra_hosts:
-      # Connect to local Postgres on the host
-      # In your config file:
-      # db.url=jdbc:postgresql://host.docker.internal:5432/YOUR_DB?user=YOUR_DB_USER&password=YOUR_DB_PASSWORD
-      - "host.docker.internal:host-gateway"