diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 1eedae23..e41cd7cd 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -46,6 +46,24 @@ After you've completed the set up steps, you can run the tests locally with
 $ pytest
 ```
 
+### Docker-compose setup
+Docker installation guide can be found [here](https://docs.docker.com/engine/install/)
+In short - all standard docker-compose commands can be used, but we also have some as shortcuts in [Makefile](Makefile).
+```bash
+make start
+```
+To run hello world example:
+```bash
+make hello-world
+```
+To run tests:
+```bash
+make test
+```
+To stop the image:
+```bash
+make stop
+```
 ### CI and Releases
 
 The CI for this project does a few different things:
diff --git a/Dockerfile b/Dockerfile
new file mode 100644
index 00000000..1ecf3e15
--- /dev/null
+++ b/Dockerfile
@@ -0,0 +1,22 @@
+FROM python:3.11
+
+RUN apt-get update && apt-get install -y \
+    build-essential \
+    curl
+# Get Rust
+RUN curl https://sh.rustup.rs -sSf | bash -s -- -y
+
+ENV PATH="/root/.cargo/bin:${PATH}"
+
+RUN curl https://wasmtime.dev/install.sh -sSf | bash
+
+COPY . /code/wasmtime-py
+WORKDIR /code/wasmtime-py
+RUN rustup target add wasm32-unknown-unknown wasm32-wasi &&  \
+    cargo install wasm-tools
+
+
+RUN python ci/download-wasmtime.py && \
+    python ci/build-rust.py &&  \
+    pip install -e .[testing]
+CMD sleep infinity
diff --git a/Makefile b/Makefile
new file mode 100644
index 00000000..41cc7d6f
--- /dev/null
+++ b/Makefile
@@ -0,0 +1,10 @@
+start:
+	docker-compose up -d
+test:
+	docker-compose exec -it app pytest
+hello-world:
+	docker-compose exec -it app python examples/hello.py
+exec:
+	docker-compose exec -it app bash
+stop:
+	docker-compose down
diff --git a/docker-compose.yml b/docker-compose.yml
new file mode 100644
index 00000000..f6b34802
--- /dev/null
+++ b/docker-compose.yml
@@ -0,0 +1,9 @@
+version: "3.8"
+services:
+  app:
+    build: .
+    volumes:
+      - .:/code/wasmtime-py
+      - /code/wasmtime-py/wasmtime/linux-x86_64
+      - /code/wasmtime-py/wasmtime/bindgen/generated
+    working_dir: /code/wasmtime-py
\ No newline at end of file