diff --git a/docker/README.md b/docker/README.md
index d55aa2b..5a45e7b 100644
--- a/docker/README.md
+++ b/docker/README.md
@@ -37,6 +37,42 @@ Version tags are also available (e.g. `1.2.3`) for both of these images.
    ```
 6. Access the application at `http://localhost:3000`
 
+## Updating
+
+To update PatchMon to the latest version:
+
+```bash
+docker compose up -d --pull
+```
+
+This command will:
+- Pull the latest images from the registry
+- Recreate containers with updated images
+- Maintain your data and configuration
+
+### Version-Specific Updates
+
+If you're using specific version tags instead of `latest` in your compose file:
+
+1. Update the image tags in your `docker-compose.yml`. For example:
+   ```yaml
+   services:
+     backend:
+       image: ghcr.io/9technologygroup/patchmon-backend:1.2.7  # Update version here
+      ...
+     frontend:
+       image: ghcr.io/9technologygroup/patchmon-frontend:1.2.7  # Update version here
+      ...
+   ```
+
+2. Then run the update command:
+   ```bash
+   docker compose up -d --pull
+   ```
+
+> [!TIP]
+> Check the [releases page](https://github.com/9technologygroup/patchmon.net/releases) for version-specific changes and migration notes.
+
 ## Configuration
 
 ### Environment Variables
@@ -99,41 +135,55 @@ For development with live reload and source code mounting:
 
 2. Start development environment:
    ```bash
-   # Attached, live log output, services stopped on Ctrl+C
    docker compose -f docker/docker-compose.dev.yml up
-
-   # Detached
-   docker compose -f docker/docker-compose.dev.yml up -d
    ```
+   _See [Development Commands](#development-commands) for more options._
+
+3. Access the application:
+   - Frontend: `http://localhost:3000`
+   - Backend API: `http://localhost:3001`
+   - Database: `localhost:5432`
 
 ## Development Docker Compose
 
 The development compose file (`docker/docker-compose.dev.yml`):
-- Builds images locally from source
-- Enables development workflow  
-- Supports live reload and debugging
+- Builds images locally from source using development targets
+- Enables hot reload with Docker Compose watch functionality
+- Exposes database and backend ports for testing and development
+- Mounts source code directly into containers for live development
+- Supports debugging with enhanced logging
 
 ## Building Images Locally
 
-```
-docker build -t patchmon-backend:dev -f docker/backend.Dockerfile .
-docker build -t patchmon-frontend:dev -f docker/frontend.Dockerfile .
-```
-
-## Running in Docker Compose
-
-For development or custom builds:
+Both Dockerfiles use multi-stage builds with separate development and production targets:
 
 ```bash
-# Build backend image
-docker build -f docker/backend.Dockerfile -t patchmon-backend:dev .
+# Build development images
+docker build -f docker/backend.Dockerfile --target development -t patchmon-backend:dev .
+docker build -f docker/frontend.Dockerfile --target development -t patchmon-frontend:dev .
 
-# Build frontend image  
-docker build -f docker/frontend.Dockerfile -t patchmon-frontend:dev .
+# Build production images (default target)
+docker build -f docker/backend.Dockerfile -t patchmon-backend:latest .
+docker build -f docker/frontend.Dockerfile -t patchmon-frontend:latest .
 ```
 
 ## Development Commands
 
+### Hot Reload Development
+```bash
+# Attached, live log output, services stopped on Ctrl+C
+docker compose -f docker/docker-compose.dev.yml up
+
+# Attached with Docker Compose watch for hot reload
+docker compose -f docker/docker-compose.dev.yml up --watch
+
+# Detached
+docker compose -f docker/docker-compose.dev.yml up -d
+
+# Quiet, no log output, with Docker Compose watch for hot reload
+docker compose -f docker/docker-compose.dev.yml watch
+```
+
 ### Rebuild Services
 ```bash
 # Rebuild specific service
@@ -143,9 +193,43 @@ docker compose -f docker/docker-compose.dev.yml up -d --build backend
 docker compose -f docker/docker-compose.dev.yml up -d --build
 ```
 
+### Development Ports
+The development setup exposes additional ports for debugging:
+- **Database**: `5432` - Direct PostgreSQL access
+- **Backend**: `3001` - API server with development features
+- **Frontend**: `3000` - React development server with hot reload
+
 ## Development Workflow
 
-1. **Code Changes**: Edit source files
-2. **Rebuild**: `docker compose -f docker/docker-compose.dev.yml up -d --build`
-3. **Test**: Access application and verify changes
-4. **Debug**: Check logs with `docker compose logs -f`
+1. **Initial Setup**: Clone repository and start development environment
+   ```bash
+   git clone https://github.com/9technologygroup/patchmon.net.git
+   cd patchmon.net
+   docker compose -f docker/docker-compose.dev.yml up -d --build
+   ```
+
+2. **Hot Reload Development**: Use Docker Compose watch for automatic reload
+   ```bash
+   docker compose -f docker/docker-compose.dev.yml up --watch --build
+   ```
+
+3. **Code Changes**: 
+   - **Frontend/Backend Source**: Files are synced automatically with watch mode
+   - **Package.json Changes**: Triggers automatic service rebuild
+   - **Prisma Schema Changes**: Backend service restarts automatically
+
+4. **Database Access**: Connect database client directly to `localhost:5432`
+
+5. **Debug**: If started with `docker compose [...] up -d` or `docker compose [...] watch`, check logs manually:
+   ```bash
+   docker compose -f docker/docker-compose.dev.yml logs -f
+   ```
+   Otherwise logs are shown automatically in attached modes (`up`, `up --watch`).
+
+### Features in Development Mode
+
+- **Hot Reload**: Automatic code synchronization and service restarts
+- **Enhanced Logging**: Detailed logs for debugging
+- **Direct Access**: Exposed ports for database and API debugging  
+- **Health Checks**: Built-in health monitoring for services
+- **Volume Persistence**: Development data persists between restarts
diff --git a/docker/backend.Dockerfile b/docker/backend.Dockerfile
index e40b0da..fc28021 100644
--- a/docker/backend.Dockerfile
+++ b/docker/backend.Dockerfile
@@ -1,22 +1,8 @@
-FROM node:lts-alpine AS builder
+# Development target
+FROM node:lts-alpine AS development
 
-RUN apk add --no-cache openssl
-
-WORKDIR /app
-
-COPY --chown=node:node package*.json /app/
-COPY --chown=node:node backend/ /app/backend/
-
-WORKDIR /app/backend
-
-RUN npm ci --ignore-scripts &&\
-    npx prisma generate &&\
-    npm prune --omit=dev &&\
-    npm cache clean --force
-
-FROM node:lts-alpine
-
-ENV NODE_ENV=production \
+ENV NODE_ENV=development \
+    NPM_CONFIG_UPDATE_NOTIFIER=false \
     ENABLE_LOGGING=true \
     LOG_LEVEL=info \
     PM_LOG_TO_CONSOLE=true \
@@ -28,8 +14,61 @@ USER node
 
 WORKDIR /app
 
-COPY --from=builder /app/backend /app/backend
-COPY --from=builder /app/node_modules /app/node_modules
+COPY --chown=node:node package*.json ./
+COPY --chown=node:node backend/ ./backend/
+COPY --chown=node:node agents ./agents_backup
+COPY --chown=node:node agents ./agents
+COPY --chmod=755 docker/backend.docker-entrypoint.sh ./entrypoint.sh
+
+WORKDIR /app/backend
+
+RUN npm ci --ignore-scripts && npx prisma generate
+
+EXPOSE 3001
+
+VOLUME [ "/app/agents" ]
+
+HEALTHCHECK --interval=10s --timeout=5s --start-period=30s --retries=5 \
+  CMD curl -f http://localhost:3001/health || exit 1
+
+ENTRYPOINT ["/sbin/tini", "--"]
+CMD ["/app/entrypoint.sh"]
+
+# Builder stage for production
+FROM node:lts-alpine AS builder
+
+RUN apk add --no-cache openssl
+
+WORKDIR /app
+
+COPY --chown=node:node package*.json ./
+COPY --chown=node:node backend/ ./backend/
+
+WORKDIR /app/backend
+
+RUN npm ci --ignore-scripts &&\
+    npx prisma generate &&\
+    npm prune --omit=dev &&\
+    npm cache clean --force
+
+# Production stage
+FROM node:lts-alpine
+
+ENV NODE_ENV=production \
+    NPM_CONFIG_UPDATE_NOTIFIER=false \
+    ENABLE_LOGGING=true \
+    LOG_LEVEL=info \
+    PM_LOG_TO_CONSOLE=true \
+    PORT=3001
+
+RUN apk add --no-cache openssl tini curl
+
+USER node
+
+WORKDIR /app
+
+COPY --from=builder /app/backend ./backend
+COPY --from=builder /app/node_modules ./node_modules
 COPY --chown=node:node agents ./agents_backup
 COPY --chown=node:node agents ./agents
 COPY --chmod=755 docker/backend.docker-entrypoint.sh ./entrypoint.sh
diff --git a/docker/backend.docker-entrypoint.sh b/docker/backend.docker-entrypoint.sh
index 9eaf629..25772fd 100755
--- a/docker/backend.docker-entrypoint.sh
+++ b/docker/backend.docker-entrypoint.sh
@@ -20,10 +20,14 @@ else
     log "Agents directory already contains files, skipping copy"
 fi
 
-log "Starting PatchMon Backend..."
+log "Starting PatchMon Backend (${NODE_ENV:-production})..."
 
 log "Running database migrations..."
 npx prisma migrate deploy
 
 log "Starting application..."
-exec npm start
+if [ "${NODE_ENV}" = "development" ]; then
+    exec npm run dev
+else
+    exec npm start
+fi
diff --git a/docker/docker-compose.dev.yml b/docker/docker-compose.dev.yml
index 0fd1691..bf401ef 100644
--- a/docker/docker-compose.dev.yml
+++ b/docker/docker-compose.dev.yml
@@ -6,6 +6,8 @@ services:
       POSTGRES_DB: patchmon_db
       POSTGRES_USER: patchmon_user
       POSTGRES_PASSWORD: INSECURE_REPLACE_ME_PLEASE_INSECURE
+    ports:
+      - "5432:5432"
     volumes:
       - ./compose_dev_data/db:/var/lib/postgresql/data
     healthcheck:
@@ -18,8 +20,10 @@ services:
     build:
       context: ..
       dockerfile: docker/backend.Dockerfile
+      target: development
     restart: unless-stopped
     environment:
+      NODE_ENV: development
       LOG_LEVEL: info
       DATABASE_URL: postgresql://patchmon_user:INSECURE_REPLACE_ME_PLEASE_INSECURE@database:5432/patchmon_db
       PM_DB_CONN_MAX_ATTEMPTS: 30
@@ -30,16 +34,31 @@ services:
       CORS_ORIGIN: http://localhost:3000
       RATE_LIMIT_WINDOW_MS: 900000
       RATE_LIMIT_MAX: 100
+    ports:
+      - "3001:3001"
     volumes:
       - ./compose_dev_data/agents:/app/agents
     depends_on:
       database:
         condition: service_healthy
+    develop:
+      watch:
+        - action: sync
+          path: ../backend/src
+          target: /app/backend/src
+          ignore:
+            - node_modules/
+        - action: sync
+          path: ../backend/prisma
+          target: /app/backend/prisma
+        - action: rebuild
+          path: ../backend/package.json
 
   frontend:
     build:
       context: ..
       dockerfile: docker/frontend.Dockerfile
+      target: development
     restart: unless-stopped
     environment:
       BACKEND_HOST: backend
@@ -49,3 +68,12 @@ services:
     depends_on:
       backend:
         condition: service_healthy
+    develop:
+      watch:
+        - action: sync
+          path: ../frontend/src
+          target: /app/frontend/src
+          ignore:
+            - node_modules/
+        - action: rebuild
+          path: ../frontend/package.json
diff --git a/docker/frontend.Dockerfile b/docker/frontend.Dockerfile
index 02d8a87..fd02ec0 100644
--- a/docker/frontend.Dockerfile
+++ b/docker/frontend.Dockerfile
@@ -1,3 +1,20 @@
+# Development target
+FROM node:lts-alpine AS development
+
+WORKDIR /app
+
+COPY package*.json ./
+COPY frontend/ ./frontend/
+
+RUN npm ci --ignore-scripts
+
+WORKDIR /app/frontend
+
+EXPOSE 3000
+
+CMD ["npm", "run", "dev", "--", "--host", "0.0.0.0", "--port", "3000"]
+
+# Builder stage for production
 FROM node:lts-alpine AS builder
 
 WORKDIR /app
@@ -11,6 +28,7 @@ COPY frontend/ ./frontend/
 
 RUN npm run build:frontend
 
+# Production stage
 FROM nginxinc/nginx-unprivileged:alpine
 
 ENV BACKEND_HOST=backend \