diff --git a/.dockerignore b/.dockerignore
index 337be6f..30331cb 100644
--- a/.dockerignore
+++ b/.dockerignore
@@ -1,14 +1,18 @@
-# Dependencies
+# Following pnpm Docker best practices: https://pnpm.io/docker
+
+# Dependencies (will be installed in container)
 node_modules
 .pnpm-store
 
-# Build outputs
+# Build outputs (will be built in container)
 **/dist
-**/build
-**/.next
-**/.nuxt
 
-# Testing
+# Git
+.git
+.gitignore
+*.md
+
+# Testing (not needed in production)
 **/__tests__
 **/*.test.ts
 **/*.test.js
@@ -17,20 +21,11 @@ node_modules
 **/coverage
 **/.vitest
 
-# Environment files
-# Note: .env files in apps/api are included for container defaults
-# Override at runtime with docker run -e or --env-file
-!apps/api/.env*
-**/.env
-**/.env.*
-!**/.env.example
-
 # Development files
 **/*.log
 **/.DS_Store
 **/npm-debug.log*
 **/yarn-debug.log*
-**/yarn-error.log*
 **/pnpm-debug.log*
 
 # IDE
@@ -39,20 +34,9 @@ node_modules
 **/.vs
 **/*.swp
 **/*.swo
-**/*~
-
-# Git
-.git
-.gitignore
-.gitattributes
-
-# Documentation (not needed in production image)
-**/*.md
-!**/README.md
 
 # CI/CD
 .github
-**/.gitlab-ci.yml
 **/cloudbuild.yaml
 **/.circleci
 
@@ -62,4 +46,6 @@ node_modules
 **/.cache
 **/tmp
 **/temp
+**/.next
+**/.nuxt
 
diff --git a/apps/api/Dockerfile b/apps/api/Dockerfile
index 7d465fd..773d0ee 100644
--- a/apps/api/Dockerfile
+++ b/apps/api/Dockerfile
@@ -3,76 +3,59 @@
 # ==============================================================================
 # NOTE: This Dockerfile should be built from the monorepo root, not from apps/api
 # Build command: docker build -f apps/api/Dockerfile -t xtablo-api .
-FROM node:20-alpine AS base
+FROM node:20-slim AS base
 
-# Build argument for NODE_ENV
-ARG NODE_ENV=production
+# Configure pnpm
+ENV PNPM_HOME="/pnpm"
+ENV PATH="$PNPM_HOME:$PATH"
+RUN corepack enable
 
-# Install security updates and pnpm
-RUN apk --no-cache upgrade && \
-    corepack enable && \
-    corepack prepare pnpm@latest --activate
-
-# Create app directory and set up non-root user
+# Copy all files to working directory
+COPY . /app
 WORKDIR /app
-RUN addgroup -g 1001 -S nodejs
-RUN adduser -S nodejs -u 1001
-
-# Copy workspace configuration and root package files
-COPY pnpm-workspace.yaml package.json pnpm-lock.yaml ./
-
-# Copy packages directory (shared packages)
-COPY packages ./packages
-
-# Copy api app package.json
-COPY apps/api/package.json ./apps/api/package.json
-
-# ==============================================================================
-# Dependencies stage - Install all dependencies
-# ==============================================================================
-FROM base AS deps
-
-# Install all dependencies (including devDependencies for build)
-# This installs dependencies for the entire workspace
-RUN pnpm install --frozen-lockfile
-
-# ==============================================================================
-# Build stage - Compile TypeScript
-# ==============================================================================
-FROM deps AS build
-
-# Copy api source code
-COPY apps/api ./apps/api
-
-# Build the api application
-WORKDIR /app/apps/api
-RUN pnpm run build
 
 # ==============================================================================
 # Production dependencies stage - Install only production dependencies
 # ==============================================================================
 FROM base AS prod-deps
+RUN --mount=type=cache,id=pnpm,target=/pnpm/store pnpm install --prod --frozen-lockfile
 
-# Install only production dependencies
-RUN pnpm install --frozen-lockfile --prod && pnpm store prune
+# ==============================================================================
+# Build stage - Install all dependencies and build
+# ==============================================================================
+FROM base AS build
+RUN --mount=type=cache,id=pnpm,target=/pnpm/store pnpm install --frozen-lockfile
+# Build only the API and its dependencies
+WORKDIR /app/apps/api
+RUN pnpm run build
 
 # ==============================================================================
 # Final stage - Production image
 # ==============================================================================
-FROM base AS final
+FROM node:20-slim
 
-# Copy built api application
-COPY --from=build /app/apps/api/dist ./apps/api/dist
-COPY --from=build /app/apps/api/package.json ./apps/api/package.json
+# Configure pnpm
+ENV PNPM_HOME="/pnpm"
+ENV PATH="$PNPM_HOME:$PATH"
+RUN corepack enable
 
-# Copy shared packages (needed for workspace resolution)
-COPY --from=prod-deps /app/packages ./packages
+# Create non-root user
+RUN groupadd --gid 1001 nodejs && \
+    useradd -l --uid 1001 --gid nodejs --shell /bin/bash --create-home nodejs
 
-# Install production dependencies
-# This ensures proper symlink structure for pnpm
-RUN pnpm install --frozen-lockfile --prod --filter @xtablo/api...
+# Copy production dependencies from prod-deps stage
+COPY --from=prod-deps /app/node_modules /app/node_modules
+COPY --from=prod-deps /app/packages /app/packages
 
-# Set working directory to api app
+# Copy built application from build stage
+COPY --from=build /app/apps/api/dist /app/apps/api/dist
+COPY --from=build /app/apps/api/package.json /app/apps/api/package.json
+
+# Copy workspace files for proper resolution
+COPY --from=build /app/pnpm-workspace.yaml /app/pnpm-workspace.yaml
+COPY --from=build /app/package.json /app/package.json
+
+# Set working directory
 WORKDIR /app/apps/api
 
 # Change ownership to nodejs user
@@ -85,5 +68,4 @@ USER nodejs
 EXPOSE 8080
 
 # NODE_ENV will be set via Cloud Run environment variables
-# Start the application
 CMD ["pnpm", "start"] 
\ No newline at end of file