diff --git a/Dockerfile b/Dockerfile
new file mode 100644
index 00000000..95c76bc2
--- /dev/null
+++ b/Dockerfile
@@ -0,0 +1,13 @@
+# Build
+FROM maven:3.9-eclipse-temurin-17 AS build
+WORKDIR /app
+COPY pom.xml .
+COPY src ./src
+RUN mvn -q -DskipTests package
+
+# Run
+FROM eclipse-temurin:17-jre
+WORKDIR /app
+COPY --from=build /app/target/*.jar app.jar
+EXPOSE 8080
+ENTRYPOINT ["java","-jar","app.jar"]
diff --git a/docker-compose.yml b/docker-compose.yml
new file mode 100644
index 00000000..f82b2d8e
--- /dev/null
+++ b/docker-compose.yml
@@ -0,0 +1,36 @@
+services:
+  db:
+    image: mysql:8.0
+    container_name: petshop-db
+    environment:
+      MYSQL_ROOT_PASSWORD: root
+      MYSQL_DATABASE: Petstoredb
+      MYSQL_USER: petshop
+      MYSQL_PASSWORD: petshop
+    ports:
+      - "3306:3306"
+    volumes:
+      - db_data:/var/lib/mysql
+    healthcheck:
+      test: ["CMD", "mysqladmin", "ping", "-h", "127.0.0.1", "-uroot", "-proot"]
+      interval: 5s
+      timeout: 5s
+      retries: 30
+
+  api:
+    build: .
+    container_name: petshop-api
+    environment:
+      SPRING_DATASOURCE_URL: jdbc:mysql://db:3306/Petstoredb?useSSL=false&allowPublicKeyRetrieval=true&serverTimezone=UTC
+      SPRING_DATASOURCE_USERNAME: petshop
+      SPRING_DATASOURCE_PASSWORD: petshop
+      # Change this in real use
+      JWT_SECRET: change_me_please
+    ports:
+      - "8080:8080"
+    depends_on:
+      db:
+        condition: service_healthy
+
+volumes:
+  db_data:
diff --git a/src/main/java/com/petshop/backend/config/DataInitializer.java b/src/main/java/com/petshop/backend/config/DataInitializer.java
new file mode 100644
index 00000000..93c41309
--- /dev/null
+++ b/src/main/java/com/petshop/backend/config/DataInitializer.java
@@ -0,0 +1,40 @@
+package com.petshop.backend.config;
+
+import com.petshop.backend.entity.User;
+import com.petshop.backend.repository.UserRepository;
+import org.springframework.boot.CommandLineRunner;
+import org.springframework.security.crypto.password.PasswordEncoder;
+import org.springframework.stereotype.Component;
+
+@Component
+
+public class DataInitializer implements CommandLineRunner {
+
+    private final UserRepository userRepository;
+    private final PasswordEncoder passwordEncoder;
+
+    @Override
+    public void run(String... args) {
+        if (userRepository.findByUsername("admin").isEmpty()) {
+            User admin = new User();
+            admin.setUsername("admin");
+            admin.setPassword(passwordEncoder.encode("admin123"));
+            admin.setFullName("Admin User");
+            admin.setEmail("admin@petshop.com");
+            admin.setRole(User.Role.ADMIN);
+            admin.setActive(true);
+            userRepository.save(admin);
+        }
+
+        if (userRepository.findByUsername("staff").isEmpty()) {
+            User staff = new User();
+            staff.setUsername("staff");
+            staff.setPassword(passwordEncoder.encode("staff123"));
+            staff.setFullName("Staff User");
+            staff.setEmail("staff@petshop.com");
+            staff.setRole(User.Role.STAFF);
+            staff.setActive(true);
+            userRepository.save(staff);
+        }
+    }
+}
diff --git a/src/main/resources/application.yml b/src/main/resources/application.yml
index cd3a99f7..315667e7 100644
--- a/src/main/resources/application.yml
+++ b/src/main/resources/application.yml
@@ -3,9 +3,9 @@ spring:
     name: petshop-backend
 
   datasource:
-    url: ${DB_URL:jdbc:mysql://localhost:3306/petshop?createDatabaseIfNotExist=true}
-    username: ${DB_USERNAME:root}
-    password: ${DB_PASSWORD:password}
+    url: ${SPRING_DATASOURCE_URL:jdbc:mysql://localhost:3306/Petstoredb?useSSL=false&allowPublicKeyRetrieval=true&serverTimezone=UTC}
+    username: ${SPRING_DATASOURCE_USERNAME:petshop}
+    password: ${SPRING_DATASOURCE_PASSWORD:petshop}
     driver-class-name: com.mysql.cj.jdbc.Driver
 
   jpa:
@@ -29,7 +29,7 @@ springdoc:
     path: /swagger-ui
 
 jwt:
-  secret: ${JWT_SECRET:your-256-bit-secret-key-change-this-in-production-min-32-chars}
+  secret: ${JWT_SECRET:change_me_please_make_this_at_least_32_characters_long_for_security}
   expiration: ${JWT_EXPIRATION:86400000}
 
 logging: