diff --git a/backend/Dockerfile b/backend/Dockerfile
index 2854a57..7fe7d5f 100644
--- a/backend/Dockerfile
+++ b/backend/Dockerfile
@@ -6,11 +6,16 @@ WORKDIR /app
 # Install system dependencies for building Python packages
 RUN apt-get update && apt-get install -y --no-install-recommends \
     gcc \
+    g++ \
     python3-dev \
+    build-essential \
     && rm -rf /var/lib/apt/lists/*
 
 # Copy requirements and install dependencies
 COPY requirements.txt .
+# Upgrade pip and setuptools first
+RUN pip install --no-cache-dir --upgrade pip setuptools wheel
+# Install dependencies with user flag
 RUN pip install --no-cache-dir --user -r requirements.txt
 
 # Production stage
diff --git a/docker-compose.yml b/docker-compose.yml
index c905968..389b23e 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -30,6 +30,9 @@ services:
     build:
       context: ./frontend
       dockerfile: Dockerfile
+      args:
+        - NEXT_PUBLIC_API_URL=http://localhost:8000
+        - NEXT_PUBLIC_WS_URL=ws://localhost:8000
     container_name: bot-dashboard-frontend
     ports:
       - "3000:3000"
diff --git a/frontend/Dockerfile b/frontend/Dockerfile
index e5402db..77b35fd 100644
--- a/frontend/Dockerfile
+++ b/frontend/Dockerfile
@@ -16,6 +16,14 @@ COPY . .
 ENV NEXT_TELEMETRY_DISABLED 1
 ENV NODE_ENV production
 
+# Accept build arguments for API URLs
+ARG NEXT_PUBLIC_API_URL=http://localhost:8000
+ARG NEXT_PUBLIC_WS_URL=ws://localhost:8000
+
+# Set environment variables for Next.js build
+ENV NEXT_PUBLIC_API_URL=$NEXT_PUBLIC_API_URL
+ENV NEXT_PUBLIC_WS_URL=$NEXT_PUBLIC_WS_URL
+
 # Build the application
 RUN npm run build
 
@@ -46,4 +54,8 @@ EXPOSE 3000
 ENV PORT 3000
 ENV HOSTNAME "0.0.0.0"
 
+# Runtime environment variables (can be overridden by docker-compose)
+ENV NEXT_PUBLIC_API_URL=http://localhost:8000
+ENV NEXT_PUBLIC_WS_URL=ws://localhost:8000
+
 CMD ["node", "server.js"]