diff --git a/images/keripy.dockerfile b/images/keripy.dockerfile
index aa75fbbc3..6a155c28e 100644
--- a/images/keripy.dockerfile
+++ b/images/keripy.dockerfile
@@ -1,22 +1,50 @@
+# Builder layer
+FROM python:3.10.13-alpine3.18 as builder
 
-FROM python:3.10.4-alpine3.16
+# Install compilation dependencies
+RUN apk --no-cache add \
+    bash \
+    alpine-sdk \
+    libffi-dev \
+    libsodium \
+    libsodium-dev
 
-RUN apk update
-RUN apk add bash
 SHELL ["/bin/bash", "-c"]
 
-RUN apk add alpine-sdk
-RUN apk add libffi-dev
-RUN apk add libsodium
-RUN apk add libsodium-dev
-
 # Setup Rust for blake3 dependency build
 RUN curl https://sh.rustup.rs -sSf | bash -s -- -y
 
-COPY . /keripy
 WORKDIR /keripy
 
-# Install KERIpy dependencies
-# Must source the Cargo environment for the blake3 library to see the Rust intallation during requirements install
-RUN source "$HOME/.cargo/env" && pip install -r requirements.txt
+RUN python -m venv venv
+
+ENV PATH=/keripy/venv/bin:${PATH}
+
+RUN pip install --upgrade pip && \
+    mkdir /keripy/src
+
+# Copy Python dependency files in
+COPY requirements.txt setup.py .
+# Set up Rust environment and install Python dependencies
+# Must source the Cargo environment for the blake3 library to see
+# the Rust intallation during requirements install
+RUN . ${HOME}/.cargo/env && \
+    pip install -r requirements.txt
+
+# Runtime layer
+FROM python:3.10.13-alpine3.18
+
+RUN apk --no-cache add \
+    bash \
+    alpine-sdk \
+    libsodium-dev
+
+WORKDIR /keripy
+
+COPY --from=builder /keripy /keripy
+COPY src/ src/
+
+ENV PATH=/keripy/venv/bin:${PATH}
+
 
+ENTRYPOINT [ "kli" ]