diff --git a/images/keria.dockerfile b/images/keria.dockerfile
index fa500481..5d2f0bb5 100644
--- a/images/keria.dockerfile
+++ b/images/keria.dockerfile
@@ -1,10 +1,55 @@
-FROM weboftrust/keri:1.2.0-dev6
+# Builder stage
+FROM python:3.12-alpine3.19 as builder
 
-WORKDIR /usr/local/var
+# Install compilation dependencies
+RUN apk --no-cache add \
+    bash \
+    alpine-sdk \
+    libffi-dev \
+    libsodium \
+    libsodium-dev
 
-RUN mkdir keria
-COPY . /usr/local/var/keria
+SHELL ["/bin/bash", "-c"]
 
-WORKDIR /usr/local/var/keria
+# Install Rust for blake3 dependency build
+RUN curl https://sh.rustup.rs -sSf | bash -s -- -y
 
-RUN pip install -r requirements.txt
\ No newline at end of file
+WORKDIR /keria
+
+RUN python -m venv venv
+ENV PATH=/keria/venv/bin:${PATH}
+RUN pip install --upgrade pip
+
+# Copy in Python dependency files
+COPY requirements.txt setup.py ./
+# "src/" dir required for installation of dependencies with setup.py
+RUN mkdir /keria/src
+# Install Python dependencies
+RUN . "$HOME/.cargo/env" && \
+    pip install -r requirements.txt
+
+# Runtime stage
+FROM python:3.12-alpine3.19
+
+# Install runtime dependencies
+RUN apk --no-cache add \
+    bash \
+    alpine-sdk \
+    libsodium-dev
+
+WORKDIR /keria
+
+# Copy over compiled dependencies
+COPY --from=builder /keria /keria
+# Copy in KERIA source files - enables near instantaneous builds for source only changes
+RUN mkdir -p /usr/local/var/keri
+ENV KERI_AGENT_CORS=${KERI_AGENT_CORS:-false}
+ENV PATH=/keria/venv/bin:${PATH}
+
+EXPOSE 3901
+EXPOSE 3902
+EXPOSE 3903
+
+COPY src/ src/
+
+ENTRYPOINT ["keria", "start",  "--config-file", "demo-witness-oobis", "--config-dir", "./scripts"]