diff --git a/.dockerignore b/.dockerignore
index 10292c36c9f..f6437e73bb5 100644
--- a/.dockerignore
+++ b/.dockerignore
@@ -1,3 +1,3 @@
 **__pycache__**
 docker
-!docker/third_party_programs_docker.txt
+!/docker/*third-party-programs.txt
diff --git a/.github/workflows/build-container.yaml b/.github/workflows/build-container.yaml
index 7ee2db33010..f2cc62299b3 100644
--- a/.github/workflows/build-container.yaml
+++ b/.github/workflows/build-container.yaml
@@ -19,8 +19,8 @@ jobs:
     steps:
     - uses: actions/checkout@v2
       with:
-        fetch-depth: 0
-        submodules: recursive
+        # fetch-depth: 0
+        # submodules: recursive
         set-safe-directory: true
     - name: Build Container
       run: docker compose build
diff --git a/docker/Dockerfile b/docker/Dockerfile
index d2701b25ea9..244ce63f56b 100644
--- a/docker/Dockerfile
+++ b/docker/Dockerfile
@@ -29,10 +29,7 @@ FROM itrex-base as devel
 ENV DEBIAN_FRONTEND=noninteractive
 
 ENV LANG C.UTF-8
-ARG PYTHON=python3.10
-
-RUN mkdir -p /app/intel-extension-for-transformers
-WORKDIR /app/intel-extension-for-transformers
+ARG PYTHON=python3.10
 
 RUN apt-get update && apt-get install -y --no-install-recommends --fix-missing \
     autoconf \
@@ -45,13 +42,13 @@ RUN apt-get update && apt-get install -y --no-install-recommends --fix-missing \
     apt-get autoremove -y && \
     rm -rf /var/lib/apt/lists/*
 
+RUN mkdir -p /app/intel-extension-for-transformers
+WORKDIR /app/intel-extension-for-transformers
 COPY . /app/intel-extension-for-transformers
 
-RUN ${PYTHON} -m pip install -r requirements.txt --no-cache-dir -f https://download.pytorch.org/whl/cpu/torch_stable.html
-
-RUN ${PYTHON} -m pip install -r tests/requirements.txt --no-cache-dir -f https://developer.intel.com/ipex-whl-stable-cpu
-
-RUN ${PYTHON} -m pip install . --no-cache-dir && \
+RUN ${PYTHON} -m pip install -r requirements.txt --no-cache-dir -f https://download.pytorch.org/whl/cpu/torch_stable.html && \
+    ${PYTHON} -m pip install -r tests/requirements.txt --no-cache-dir -f https://developer.intel.com/ipex-whl-stable-cpu && \
+    ${PYTHON} -m pip install . --no-cache-dir && \
     rm -rf .git*
 
 FROM itrex-base as prod
@@ -60,3 +57,4 @@ ARG PYTHON=python3.10
 
 COPY --from=devel /usr/local/lib/${PYTHON}/dist-packages /usr/local/lib/${PYTHON}/dist-packages
 COPY --from=devel /usr/local/bin /usr/local/bin
+COPY --from=devel /app/intel-extension-for-transformers/docker /app/licensing
diff --git a/docker/README.md b/docker/README.md
index f27e8896c09..7ca3499c1bb 100644
--- a/docker/README.md
+++ b/docker/README.md
@@ -9,7 +9,7 @@ To build and run this workload inside a Docker Container, ensure you have Docker
 ```bash
 DOCKER_CONFIG=${DOCKER_CONFIG:-$HOME/.docker}
 mkdir -p $DOCKER_CONFIG/cli-plugins
-curl -SL https://github.com/docker/compose/releases/download/v2.7.0/docker-compose-linux-x86_64 -o $DOCKER_CONFIG/cli-plugins/docker-compose
+curl -SL https://github.com/docker/compose/releases/download/v2.19.0/docker-compose-linux-x86_64 -o $DOCKER_CONFIG/cli-plugins/docker-compose
 chmod +x $DOCKER_CONFIG/cli-plugins/docker-compose
 docker compose version
 ```
@@ -23,17 +23,17 @@ docker compose build
 ```
 OR
 ```bash
-docker pull intel/ai-tools:itrex-0.1.1
-docker pull intel/ai-tools:itrex-devel-0.1.1
+docker pull intel/ai-tools:itrex-1.3.0
+docker pull intel/ai-tools:itrex-devel-1.3.0
 ```
 
 ## Use Docker Image
 Utilize the TLT CLI without installation by using the provided docker image and docker compose.
 
 ```bash
-docker compose run base-devel
-docker compose run base-devel python setup.py sdist
-docker compose run base-devel python tests/<test_mytest>.py
+docker compose run devel
+docker compose run devel python setup.py sdist
+docker compose run devel python tests/<test_mytest>.py
 ```
 
 # Kubernetes
diff --git a/docker/docker-compose.yml b/docker/docker-compose.yml
index f7b31c96113..d54b7723e11 100644
--- a/docker/docker-compose.yml
+++ b/docker/docker-compose.yml
@@ -12,16 +12,19 @@ services:
       context: ../
       dockerfile: ./docker/Dockerfile
       target: devel
-    command: python tests/test_config.py
+    command: python tests/CI/test_config.py
     environment:
       http_proxy: ${http_proxy}
       https_proxy: ${https_proxy}
       no_proxy: ${no_proxy}
     image: intel/ai-tools:itrex-devel-latest
-    privileged: true
+    pull_policy: always
   prod:
     extends:
       service: devel
     build:
       target: prod
     image: intel/ai-tools:itrex-prod-latest
+    volumes:
+      - $PWD/..:/app
+    working_dir: /app