diff --git a/README.md b/README.md
index 22ef0e1..7e02a98 100644
--- a/README.md
+++ b/README.md
@@ -15,35 +15,51 @@ A fullstack SaaS web application built with FastAPI, React, and PostgreSQL.
 - User registration and login (JWT auth)
 - Protected dashboard route
 - `/api/users/me` — authenticated user info
-- Vite dev server proxies `/api` to FastAPI — no CORS issues in development
+- 3 separate Docker containers: `db` (PostgreSQL), `backend` (FastAPI), `frontend` (nginx)
+
+## Containers
+
+| Container | Image | Port | Description |
+|---|---|---|---|
+| `db` | postgres:16-alpine | 5432 | PostgreSQL database |
+| `backend` | custom (python:3.12-slim) | 8000 | FastAPI management API |
+| `frontend` | custom (nginx:alpine) | 80 | React UI served by nginx |
+
+The frontend nginx container proxies `/api/*` to the backend container internally — no CORS headers needed in production.
 
 ## Installation
 
 ### Prerequisites
 
-- Python 3.11+
-- Node.js 18+
-- PostgreSQL 16 (or Docker)
+- Docker + Docker Compose
 
-### Option A — Docker (recommended)
+### Production
 
 ```bash
 git clone <repo>
 cd destroying_sap
-cp .env.example backend/.env
-docker compose up --build
+cp .env.example backend/.env   # edit SECRET_KEY at minimum
+docker compose up --build -d
 ```
 
-- Frontend: http://localhost:5173
-- Backend / API docs: http://localhost:8000/docs
+- Frontend: http://localhost
+- API docs: http://localhost:8000/docs
 
-### Option B — Local
+### Development (hot reload)
+
+```bash
+docker compose -f docker-compose.yml -f docker-compose.dev.yml up --build
+```
+
+- Frontend (Vite): http://localhost:5173
+- Backend (uvicorn --reload): http://localhost:8000
+
+### Local (no Docker)
 
 **1. Start PostgreSQL**
 
 ```bash
 docker compose up db -d
-# or use a local PostgreSQL instance and update backend/.env
 ```
 
 **2. Backend**
@@ -52,7 +68,7 @@ docker compose up db -d
 cd backend
 python -m venv .venv && source .venv/bin/activate   # Windows: .venv\Scripts\activate
 pip install -e ".[dev]"
-cp ../.env.example .env   # edit DATABASE_URL and SECRET_KEY as needed
+cp ../.env.example .env
 alembic upgrade head
 uvicorn app.main:app --reload
 ```
@@ -60,9 +76,7 @@ uvicorn app.main:app --reload
 **3. Frontend**
 
 ```bash
-cd frontend
-npm install
-npm run dev
+cd frontend && npm install && npm run dev
 ```
 
 ## Environment Variables
diff --git a/backend/Dockerfile b/backend/Dockerfile
new file mode 100644
index 0000000..e08b72c
--- /dev/null
+++ b/backend/Dockerfile
@@ -0,0 +1,26 @@
+# ── Stage 1: dependency installation ─────────────────────────────────────────
+FROM python:3.12-slim AS builder
+
+WORKDIR /app
+
+RUN pip install --upgrade pip
+
+COPY pyproject.toml .
+RUN pip install --prefix=/install .
+
+# ── Stage 2: runtime ──────────────────────────────────────────────────────────
+FROM python:3.12-slim
+
+WORKDIR /app
+
+# Copy installed packages from builder
+COPY --from=builder /install /usr/local
+
+# Copy application source
+COPY app ./app
+COPY alembic ./alembic
+COPY alembic.ini .
+
+EXPOSE 8000
+
+CMD ["uvicorn", "app.main:app", "--host", "0.0.0.0", "--port", "8000"]
diff --git a/changelog/2026-04-12_dockerize.md b/changelog/2026-04-12_dockerize.md
new file mode 100644
index 0000000..abeb2b8
--- /dev/null
+++ b/changelog/2026-04-12_dockerize.md
@@ -0,0 +1,19 @@
+# 2026-04-12 — Dockerize all containers
+
+**Timestamp:** 2026-04-12T15:00:00
+
+## Summary
+
+Added proper Dockerfiles for backend and frontend. Split compose setup into production (`docker-compose.yml`) and development (`docker-compose.dev.yml`) modes. Updated README to reflect new container architecture.
+
+## Files Added
+
+- `backend/Dockerfile` — multi-stage build: pip install in builder stage, minimal python:3.12-slim runtime; runs uvicorn in production mode
+- `frontend/Dockerfile` — multi-stage build: Node 20 Alpine builds the Vite bundle, nginx:alpine serves the static files
+- `frontend/nginx.conf` — nginx config for SPA fallback routing and `/api/` reverse proxy to the backend container
+- `docker-compose.dev.yml` — development overrides: mounts source for hot reload, uses Vite dev server instead of nginx
+
+## Files Modified
+
+- `docker-compose.yml` — rewritten: proper `build.context` + `dockerfile` references, health check on db, `depends_on` with `condition: service_healthy`, env var interpolation via `${VAR:-default}`, frontend now served on port 80 via nginx
+- `README.md` — updated Current State, added Containers table, replaced install options with Production / Development / Local sections
diff --git a/docker-compose.dev.yml b/docker-compose.dev.yml
new file mode 100644
index 0000000..7b41933
--- /dev/null
+++ b/docker-compose.dev.yml
@@ -0,0 +1,20 @@
+# Development overrides — hot reload for backend and frontend
+# Usage: docker compose -f docker-compose.yml -f docker-compose.dev.yml up --build
+
+services:
+
+  backend:
+    command: uvicorn app.main:app --host 0.0.0.0 --port 8000 --reload
+    volumes:
+      - ./backend:/app
+
+  frontend:
+    build:
+      context: ./frontend
+      target: builder          # stop at the Node stage, skip nginx
+    command: npm run dev -- --host 0.0.0.0
+    ports:
+      - "5173:5173"
+    volumes:
+      - ./frontend:/app
+      - /app/node_modules
diff --git a/docker-compose.yml b/docker-compose.yml
index 981e1c7..3533fa7 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -1,35 +1,46 @@
 services:
+
+  # ── Database ────────────────────────────────────────────────────────────────
   db:
-    image: postgres:16
+    image: postgres:16-alpine
+    restart: unless-stopped
     environment:
-      POSTGRES_USER: postgres
-      POSTGRES_PASSWORD: password
-      POSTGRES_DB: destroying_sap
+      POSTGRES_USER: ${POSTGRES_USER:-postgres}
+      POSTGRES_PASSWORD: ${POSTGRES_PASSWORD:-password}
+      POSTGRES_DB: ${POSTGRES_DB:-destroying_sap}
     ports:
       - "5432:5432"
     volumes:
       - postgres_data:/var/lib/postgresql/data
+    healthcheck:
+      test: ["CMD-SHELL", "pg_isready -U ${POSTGRES_USER:-postgres}"]
+      interval: 5s
+      timeout: 5s
+      retries: 10
 
+  # ── Backend (management) ────────────────────────────────────────────────────
   backend:
-    build: ./backend
-    command: uvicorn app.main:app --host 0.0.0.0 --port 8000 --reload
-    volumes:
-      - ./backend:/app
+    build:
+      context: ./backend
+      dockerfile: Dockerfile
+    restart: unless-stopped
+    env_file: ./backend/.env
+    environment:
+      DATABASE_URL: postgresql+asyncpg://${POSTGRES_USER:-postgres}:${POSTGRES_PASSWORD:-password}@db:5432/${POSTGRES_DB:-destroying_sap}
     ports:
       - "8000:8000"
-    environment:
-      DATABASE_URL: postgresql+asyncpg://postgres:password@db:5432/destroying_sap
     depends_on:
-      - db
+      db:
+        condition: service_healthy
 
+  # ── Frontend (UI) ────────────────────────────────────────────────────────────
   frontend:
-    build: ./frontend
-    command: npm run dev -- --host
-    volumes:
-      - ./frontend:/app
-      - /app/node_modules
+    build:
+      context: ./frontend
+      dockerfile: Dockerfile
+    restart: unless-stopped
     ports:
-      - "5173:5173"
+      - "80:80"
     depends_on:
       - backend
 
diff --git a/frontend/Dockerfile b/frontend/Dockerfile
new file mode 100644
index 0000000..ef90a6a
--- /dev/null
+++ b/frontend/Dockerfile
@@ -0,0 +1,18 @@
+# ── Stage 1: build ────────────────────────────────────────────────────────────
+FROM node:20-alpine AS builder
+
+WORKDIR /app
+
+COPY package.json package-lock.json* ./
+RUN npm ci
+
+COPY . .
+RUN npm run build
+
+# ── Stage 2: serve with nginx ─────────────────────────────────────────────────
+FROM nginx:alpine
+
+COPY --from=builder /app/dist /usr/share/nginx/html
+COPY nginx.conf /etc/nginx/conf.d/default.conf
+
+EXPOSE 80
diff --git a/frontend/nginx.conf b/frontend/nginx.conf
new file mode 100644
index 0000000..efa582f
--- /dev/null
+++ b/frontend/nginx.conf
@@ -0,0 +1,17 @@
+server {
+    listen 80;
+    root /usr/share/nginx/html;
+    index index.html;
+
+    # Proxy API calls to the backend container
+    location /api/ {
+        proxy_pass http://backend:8000;
+        proxy_set_header Host $host;
+        proxy_set_header X-Real-IP $remote_addr;
+    }
+
+    # SPA fallback — all non-asset routes serve index.html
+    location / {
+        try_files $uri $uri/ /index.html;
+    }
+}