diff --git a/.dev/docker/README.md b/.dev/docker/README.md
new file mode 100644
index 000000000..b4d97ca36
--- /dev/null
+++ b/.dev/docker/README.md
@@ -0,0 +1,69 @@
+# Pterodactyl Panel - Docker Image
+This is a ready to use docker image for the panel.
+
+## Requirements
+This docker image requires some additional software to function. The software can either be provided in other containers (see the [docker-compose.yml](docker-compose.yml) as an example) or as existing instances.
+
+A mysql database is required. We recommend [this](quay.io/parkervcp/mariadb-alpine) image if you prefer to run it in a docker container. As a non-containerized option we recommend mariadb.
+
+A caching software is required as well. You can choose any of the [supported options](#cache-drivers).
+
+You can provide additional settings using a custom `.env` file or by setting the appropriate environment variables.
+
+## Setup
+
+Start the docker container and the required dependencies (either provide existing ones or start containers as well, see the [docker-compose.yml](docker-compose.yml) file as an example).
+
+After the startup is complete you'll need to create a user.
+If you are running the docker container without docker-compose, use:
+```
+docker exec -it <container id> php artisan pterodactyl:user
+```
+If you are using docker compose use
+```
+docker-compose exec panel php artisan pterodactyl:user
+```
+
+## Environment Variables
+There are multiple environment variables to configure the panel when not providing your own `.env` file, see the following table for details on each available option.
+
+Note: If your `APP_URL` starts with `https://` you need to provide an `LETSENCRYPT_EMAIL` as well so Certificates can be generated.
+
+| Variable            | Description                                                                    | Required |
+| ------------------- | ------------------------------------------------------------------------------ | -------- |
+| `APP_URL`           | The URL the panel will be reachable with (including protocol)                  | yes      |
+| `LETSENCRYPT_EMAIL` | The email used for letsencrypt certificate generation                          | yes      |
+| `DB_HOST`           | The host of the mysql instance                                                 | yes      |
+| `DB_PORT`           | The port of the mysql instance                                                 | yes      |
+| `DB_DATABASE`       | The name of the mysql database                                                 | yes      |
+| `DB_USERNAME`       | The mysql user                                                                 | yes      |
+| `DB_PASSWORD`       | The mysql password for the specified user                                      | yes      |
+| `CACHE_DRIVER`      | The cache driver        (see [Cache drivers](#cache-drivers) for detais)       | yes      |
+| `MAIL_DRIVER`       | The email driver (see [Mail drivers](#mail-drivers) for details)               | yes      |
+| `MAIL_FROM`         | The email that should be used as the sender email                              | yes      |
+| `MAIL_HOST`         | The host of your mail driver instance                                          | maybe    |
+| `MAIL_PORT`         | The port of your mail driver instance                                          | maybe    |
+| `MAIL_USERNAME`     | The username for your mail driver                                              | maybe    |
+| `MAIL_PASSWORD`     | The password for your mail driver                                              | maybe    |
+| `APP_TIMEZONE`      | The timezone to use for the panel                                              | yes      |
+
+
+### Cache drivers
+You can choose between different cache drivers depending on what you prefer.
+We recommend redis when using docker as it can be started in a container easily.
+
+| Driver   | Description                          | Required variables                                     |
+| -------- | ------------------------------------ | ------------------------------------------------------ |
+| redis    |                                      | `REDIS_HOST`                                           |
+
+### Mail drivers
+You can choose between different mail drivers according to your needs.
+Every driver requires `MAIL_FROM` to be set.
+
+| Driver   | Description                          | Required variables                                            |
+| -------- | ------------------------------------ | ------------------------------------------------------------- |
+| mail     | uses the installed php mail          |                                                               |
+| mandrill | [Mandrill](http://www.mandrill.com/) | `MAIL_USERNAME`                                               |
+| postmark | [Postmark](https://postmarkapp.com/) | `MAIL_USERNAME`                                               |
+| mailgun  | [Mailgun](https://www.mailgun.com/)  | `MAIL_USERNAME`, `MAIL_HOST`                                  |
+| smtp     | Any SMTP server can be configured    | `MAIL_USERNAME`, `MAIL_HOST`, `MAIL_PASSWORD`, `MAIL_PORT`    |
diff --git a/.dev/entrypoint.sh b/.dev/docker/entrypoint.sh
similarity index 57%
rename from .dev/entrypoint.sh
rename to .dev/docker/entrypoint.sh
index 9cfcd0d53..ac4d8efb4 100644
--- a/.dev/entrypoint.sh
+++ b/.dev/docker/entrypoint.sh
@@ -10,14 +10,6 @@ do
   sleep 5
 done
 
-#sed -i s/DB_HOST=127.0.0.1/DB_HOST=$DB_HOST/g /app/.env
-#sed -i s/DB_DATABASE=panel/DB_DATABASE=$DB_DATABASE/g /app/.env
-#sed -i s/DB_USERNAME=pterodactyl/DB_USERNAME=$DB_USERNAME/g /app/.env
-#sed -i s/DB_PASSWORD=/DB_PASSWORD=$DB_PASSWORD/g /app/.env
-
-#chown -R www-data:www-data .
-chmod -R 777 storage/* bootstrap/cache /var/run/php /app/.env
-
 if [ "$(cat .env)" == "" ]; then
   cat /app/.env.example > /app/.env
 fi
diff --git a/Dockerfile b/Dockerfile
index 7901e66bc..fa0afd7b9 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -16,4 +16,4 @@ EXPOSE 80 443
 
 RUN chown -R nginx:nginx . && chmod -R 777 storage/* bootstrap/cache
 
-ENTRYPOINT ["ash", ".dev/entrypoint.sh"]
\ No newline at end of file
+ENTRYPOINT ["ash", ".dev/app/entrypoint.sh"]
\ No newline at end of file