diff --git a/Dockerfile.adapter-with-plugins b/Dockerfile.adapter-with-plugins
new file mode 100644
index 0000000..926e112
--- /dev/null
+++ b/Dockerfile.adapter-with-plugins
@@ -0,0 +1,32 @@
+FROM golang:1.24-bullseye AS builder
+
+WORKDIR /workspace/app
+
+# Specifically copy only the necessary files and directories
+COPY cmd/adapter/ ./cmd/adapter/
+COPY core/ ./core/
+COPY pkg/ ./pkg/
+COPY install/build-plugins.sh ./install/build-plugins.sh
+COPY go.mod .
+COPY go.sum .
+
+RUN go mod download
+
+# Build main server
+RUN go build -o server cmd/adapter/main.go
+
+# Make the build script executable and run it to build plugins
+RUN chmod +x install/build-plugins.sh && \
+    ./install/build-plugins.sh
+
+# Create minimal runtime image
+FROM cgr.dev/chainguard/wolfi-base
+WORKDIR /app
+
+# Copy binary and plugins built with same Go version
+COPY --from=builder /workspace/app/server .
+COPY --from=builder /workspace/app/plugins ./plugins
+
+EXPOSE 8081
+
+CMD ["sh", "-c", "./server --config=${CONFIG_FILE}"]
diff --git a/README.md b/README.md
index bd4f7f4..2c2a083 100644
--- a/README.md
+++ b/README.md
@@ -205,23 +205,28 @@ This automated script will:
 - Start ONIX adapter in Docker
 - Create environment configuration
 
-**Note:** Extract schemas before running: `unzip schemas.zip` (required for schema validation)
+**Note:** Extract schemas before running: `unzip schemas.zip` (required for schema validation) and before running the automated setup, build the adapter image ,update docker-compose-adapter2.yaml to use the correct image
 
+```bash
+# from the repository root
+docker build -f Dockerfile.adapter-with-plugins -t beckn-onix:latest .
+```
 **Services Started:**
 - Redis: localhost:6379
 - ONIX Adapter: http://localhost:8081
 
 ### Docker Deployment
 
+**Note:** Start redis before before running onix adapter.
+
 ```bash
 # Build the Docker image
-docker build -f Dockerfile.adapter -t beckn-onix:latest .
+ docker build -t beckn-onix:latest -f Dockerfile.adapter-with-plugins .
 
 # Run the container
 docker run -p 8081:8081 \
   -v $(pwd)/config:/app/config \
   -v $(pwd)/schemas:/app/schemas \
-  -v $(pwd)/plugins:/app/plugins \
   -e CONFIG_FILE="/app/config/local-simple.yaml" \
   beckn-onix:latest
 ```
diff --git a/SETUP.md b/SETUP.md
index cbe9f10..aa59ee1 100644
--- a/SETUP.md
+++ b/SETUP.md
@@ -88,7 +88,12 @@ This will automatically:
 
 **Key Management:** Uses `simplekeymanager` with embedded keys - no Vault setup required!
 
-**Note:** Extract schemas before running: `unzip schemas.zip` (required for schema validation)
+**Note:** Extract schemas before running: `unzip schemas.zip` (required for schema validation) and before running the automated setup, build the adapter image ,update docker-compose-adapter2.yaml to use the correct image
+
+```bash
+# from the repository root
+docker build -f Dockerfile.adapter-with-plugins -t beckn-onix:latest .
+```
 
 ### Option 2: Complete Beckn Network
 
@@ -120,12 +125,17 @@ This will automatically:
 - ONIX Adapter: http://localhost:8081
 - Redis: localhost:6379
 
-**Note:** Extract schemas before running: `unzip schemas.zip` (required for schema validation)
+**Note:** Extract schemas before running: `unzip schemas.zip` (required for schema validation) and before running the automated full-network setup, build the adapter image , update docker-compose-adapter2.yaml to use the correct image
+
+```bash
+# from the repository root
+docker build -f Dockerfile.adapter-with-plugins -t beckn-onix:latest .
+```
 
 **Intelligent Key Management:**
 The script reads `docker-compose-adapter2.yml` to detect which config file is being used (default: `local-simple.yaml`), extracts keys from protocol server configs, and automatically updates the `simplekeymanager` section in that config file - no manual configuration needed!
 
-**Note:** Update `docker-compose-adapter2.yml` to use the correct config file:
+**Note:** Update `docker-compose-adapter2.yml` to use the correct config file and correct image:
 - For combined setup (simplekeymanager): `CONFIG_FILE: "/app/config/local-simple.yaml"`
 - For combined setup (keymanager with Vault): `CONFIG_FILE: "/app/config/local-dev.yaml"`
 - For combined setup (production): `CONFIG_FILE: "/app/config/onix/adapter.yaml"`