diff --git a/CHANGELOG.md b/CHANGELOG.md
index 9879054c5ca8..041fb3b05c13 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -130,6 +130,7 @@ Inspired from [Keep a Changelog](https://keepachangelog.com/en/1.0.0/)
 - [Doc] Improve DEVELOPER_GUIDE to make first time setup quicker and easier ([#3421](https://github.com/opensearch-project/OpenSearch-Dashboards/pull/3421))
 - Correct copyright date range of NOTICE file and notice generator ([#3308](https://github.com/opensearch-project/OpenSearch-Dashboards/pull/3308))
 - Simplify the in-code instructions for upgrading `re2` ([#3328](https://github.com/opensearch-project/OpenSearch-Dashboards/pull/3328))
+- [Doc] Add docker dev set up instruction ([#3444](https://github.com/opensearch-project/OpenSearch-Dashboards/pull/3444))
 
 ### 🛠 Maintenance
 
diff --git a/DEVELOPER_GUIDE.md b/DEVELOPER_GUIDE.md
index e06d67ce98e4..ae4344022bda 100644
--- a/DEVELOPER_GUIDE.md
+++ b/DEVELOPER_GUIDE.md
@@ -110,7 +110,7 @@ $ yarn osd clean
 
 OpenSearch Dashboards requires a running version of OpenSearch to connect to. In a separate terminal you can run the latest snapshot built using:
 
-_(Linux, Windows, Darwin (MacOS) only - for others, you'll need to [run OpenSearch from a tarball](#alternative---run-opensearch-from-tarball) instead)_
+_(Linux, Windows, Darwin (MacOS) only - for others, you'll need to [set up using Docker](https://github.com/opensearch-project/OpenSearch-Dashboards/blob/main/docs/docker-dev/docker-dev-setup-manual.md) or [run OpenSearch from a tarball](#alternative---run-opensearch-from-tarball) instead)_
 ```bash
 $ yarn opensearch snapshot
 ```
diff --git a/dev-tools/install-docker-dev.sh b/dev-tools/install-docker-dev.sh
new file mode 100644
index 000000000000..0d40d12afed6
--- /dev/null
+++ b/dev-tools/install-docker-dev.sh
@@ -0,0 +1,28 @@
+#!/usr/bin/env bash
+
+{ # this ensures the entire script is downloaded #
+
+osd_docker_dev_install_dir(){
+	printf "opensearch-dashboards-docker-dev"
+}
+
+osd_download(){
+	curl --fail --compressed -q "$@"
+}
+
+osd_do_copy_dev_docker_files(){
+	local INSTALL_DIR
+	INSTALL_DIR="$(osd_docker_dev_install_dir)"
+	local ENTRYPOINT_SRC
+	ENTRYPOINT_SRC="https://raw.githubusercontent.com/opensearch-project/OpenSearch-Dashboards/main/docs/docker-dev/entrypoint.sh"
+	local DOCKER_COMPOSE_SRC
+	DOCKER_COMPOSE_SRC="https://raw.githubusercontent.com/opensearch-project/OpenSearch-Dashboards/main/docs/docker-dev/docker-compose.yml"
+
+	mkdir -p "$INSTALL_DIR"
+	osd_download -s "$ENTRYPOINT_SRC" -o "./$INSTALL_DIR/entrypoint.sh"
+	osd_download -s "$DOCKER_COMPOSE_SRC" -o "./$INSTALL_DIR/docker-compose.yml"
+}
+
+osd_do_copy_dev_docker_files
+
+} # this ensures the entire script is downloaded #
diff --git a/docs/docker-dev/docker-compose.yml b/docs/docker-dev/docker-compose.yml
new file mode 100644
index 000000000000..f2f0ffb64cf0
--- /dev/null
+++ b/docs/docker-dev/docker-compose.yml
@@ -0,0 +1,57 @@
+version: '3'
+services:
+  opensearch-node:
+    image: opensearchproject/opensearch:latest
+    container_name: opensearch-node
+    environment:
+      - cluster.name=opensearch-cluster # Name the cluster
+      - node.name=opensearch-node # Name the node that will run in this container
+      - discovery.seed_hosts=opensearch-node # Nodes to look for when discovering the cluster
+      - cluster.initial_cluster_manager_nodes=opensearch-node # Nodes eligibile to serve as cluster manager
+      - bootstrap.memory_lock=true # Disable JVM heap memory swapping
+      - "OPENSEARCH_JAVA_OPTS=-Xms512m -Xmx512m" # Set min and max JVM heap sizes to at least 50% of system RAM
+      - "DISABLE_INSTALL_DEMO_CONFIG=true" # Prevents execution of bundled demo script which installs demo certificates and security configurations to OpenSearch
+      - "DISABLE_SECURITY_PLUGIN=true" # Disables security plugin
+    ulimits:
+      memlock:
+        soft: -1 # Set memlock to unlimited (no soft or hard limit)
+        hard: -1
+      nofile:
+        soft: 65536 # Maximum number of open files for the opensearch user - set to at least 65536
+        hard: 65536
+    volumes:
+      - opensearch-data:/usr/share/opensearch/data # Creates volume called opensearch-data1 and mounts it to the container
+    ports:
+      - 9200:9200 # REST API
+      - 9600:9600 # Performance Analyzer
+    networks:
+      - opensearch-net # All of the containers will join the same Docker bridge network
+  dev-env:
+    image: abbyhu/opensearch-dashboards-dev:latest
+    container_name: dev-env
+    ports:
+      - 5601:5601
+      - 5603:5603
+    stdin_open: true 
+    tty: true
+    expose: 
+      - "5601"
+      - "5603"
+    environment:
+      - 'OPENSEARCH_HOSTS=["http://opensearch-node:9200"]'
+      - 'SERVER_HOST="0.0.0.0"'
+      - 'REPO_URL=${REPO_URL}'
+    volumes:
+      - osd-dev:/home/osd-dev
+      - ./entrypoint.sh:/entrypoint.sh
+    networks:
+      - opensearch-net
+    entrypoint:
+      - /bin/bash
+      - /entrypoint.sh
+volumes:
+  opensearch-data:
+  osd-dev:
+networks:
+  opensearch-net: 
+  
\ No newline at end of file
diff --git a/docs/docker-dev/docker-dev-setup-manual.md b/docs/docker-dev/docker-dev-setup-manual.md
new file mode 100644
index 000000000000..53b80e9ff633
--- /dev/null
+++ b/docs/docker-dev/docker-dev-setup-manual.md
@@ -0,0 +1,59 @@
+# Docker Development Environment Setup
+The following instructions demonstrate how to set up a development environment for OpenSearch Dashboards using Docker. It utilizes tools such as `Docker` and `VS Code`, and users should be familiar with the basic usages of them. Users will be able to develop and run the application inside VS Code without additional configurations.
+
+1. Install [Docker](https://docs.docker.com/get-docker/) if not already installed. 
+    * Make sure that Docker daemon is running. (For windows and macos，you need to have [Docker Desktop](https://docs.docker.com/desktop/), or its alternatives, such as [Finch](https://github.com/runfinch/finch))
+
+2. In the terminal, run the command below.
+    * This should create a folder named `opensearch-dashboards-docker-dev` and it should contain two files: `docker-compose.yml` and `entrypoint.sh`. 
+    * Here is the link to the installer script: `https://raw.githubusercontent.com/opensearch-project/OpenSearch-Dashboards/main/dev-tools/install-docker-dev.sh` if needed.
+
+```bash
+curl -o- https://raw.githubusercontent.com/opensearch-project/OpenSearch-Dashboards/main/dev-tools/install-docker-dev.sh | bash
+```
+
+3. Open VS Code or [install it](https://code.visualstudio.com/download), if it's not already installed. 
+    * Make sure VS Code has the extensions `Dev Containers` and `Docker` installed. If not, go to `Extensions` tab, search and install them.
+
+4. Under the Discover tab, click `Open Folder`, and open the `opensearch-dashboards-docker-dev` folder that we just created.
+
+5. Open the `opensearch-dashboards-docker-dev` folder in VS Code integrated terminal, set environment variable for the fork repository URL by running the command below.
+    * If fork repo has not been created: Go to [OpenSearch Dashboards github page](https://github.com/opensearch-project/OpenSearch-Dashboards) and under fork, select create a new fork, and then copy the https link of the fork url and use it in the above command. The command needs to be re-run every time it re-start the docker compose file in a new terminal.
+```bash
+export REPO_URL=[insert your fork repo url here]
+``` 
+    
+6. Run the `docker-compose.yml` file in the background by typing: 
+```bash
+docker compose up -d --build
+```
+
+7. Under the `Docker` tab in VS Code, verify that there are two containers running: `opensearchproject/opensearch:latest` and `abbyhu/opensearch-dashboards-dev:latest`. 
+    * This can also be verified by using the command line: 
+    ```bash
+    docker ps
+    ```
+
+8. Right-click `abbyhu/opensearch-dashboards-dev:latest`, and select `Attach Visual Studio Code`. 
+    * This will ssh into the container and you will be able to view and edit the files using VS Code as the code editor. 
+    * If you do not wish to use VS Code as the code editor, the alternative way of ssh into the container is by using the command below: 
+    ```bash
+    docker exec -it dev-env /bin/bash
+    ```
+
+9. For the new VS Code window, if it is not showing the repository code, then select `Open Folder`. Then open `/workspace-docker/OpenSearch-Dashboards`.
+
+10. In the terminal, start the OpenSearch Dashboards application by typing:
+```bash
+yarn start:docker
+```
+
+11. Now that OpenSearch Dashboards is running, you should be able to see a log line similar to `[info][server][OpenSearchDashboards][http] http server running at http://0.0.0.0:5603/dog`. 
+    * The last three letters `dog` are randomly generated every time we start dashboards.
+
+12. Wait for the optimizer to run, which takes about 100s - 200s. Once the optimizer is finished running, it will show a line such as `[success][@osd/optimizer] 48 bundles compiled successfully after 204.9 sec, watching for changes`.
+
+13. Then paste the link into a chrome browser and view dashboard running in browser, but change ‘0.0.0.0’ to ‘localhost’. So here the link should be `http://localhost:5603/dog`.
+    * Files are constantly watched, so when you make code changes, OpenSearch Dashboards will rebuild and restart automatically. Refresh the link in the browser and the new changes should be applied.
+
+14. `Git` is already configured in the `entrypoint.sh` file, and the remote is already tracking the fork repository. You can start contributing by creating your branch off the main, and commit your first PR!
diff --git a/docs/docker-dev/entrypoint.sh b/docs/docker-dev/entrypoint.sh
new file mode 100644
index 000000000000..ed5c4e720d69
--- /dev/null
+++ b/docs/docker-dev/entrypoint.sh
@@ -0,0 +1,5 @@
+#!/bin/bash
+echo $REPO_URL
+git remote set-url origin $REPO_URL
+git fetch
+tail -f /dev/null
diff --git a/package.json b/package.json
index ea4f74789c1a..ebd5ec66b06a 100644
--- a/package.json
+++ b/package.json
@@ -61,6 +61,7 @@
     "build-platform": "node scripts/build",
     "build": "node scripts/build --all-platforms",
     "start": "node scripts/opensearch_dashboards --dev",
+    "start:docker": "node scripts/opensearch_dashboards --dev --opensearch.hosts=$OPENSEARCH_HOSTS --opensearch.ignoreVersionMismatch=true --server.host=$SERVER_HOST",
     "debug": "node --nolazy --inspect scripts/opensearch_dashboards --dev",
     "debug-break": "node --nolazy --inspect-brk scripts/opensearch_dashboards --dev",
     "lint": "yarn run lint:es && yarn run lint:style",