diff --git a/.gitignore b/.gitignore
index 708dd82..11619ed 100644
--- a/.gitignore
+++ b/.gitignore
@@ -60,6 +60,7 @@ frontend/coverage/
 # Docker Config Volume
 # ===================
 config/
+config-dev/
 
 # ===================
 # Environment & Secrets
diff --git a/README.md b/README.md
index 22b0bd9..0fa62b1 100644
--- a/README.md
+++ b/README.md
@@ -90,6 +90,22 @@ set `PUID`/`PGID` (see the commented lines in `docker-compose.yml`) to run
 the backend as that uid/gid — `/config` is chown'd accordingly on startup so
 the database and logs end up owned by your host user instead of root.
 
+### Development with Docker
+
+`docker-compose.dev.yml` runs both halves from source with auto-reload
+(uvicorn `--reload`, Vite HMR) — the production `docker-compose.yml` is
+untouched:
+
+```bash
+docker compose -f docker-compose.dev.yml up
+
+# Frontend (proxies /api and /ws): http://localhost:5173
+# Backend API directly:            http://localhost:8000
+```
+
+Dev data lives in `./config-dev` (separate from the production `./config`);
+dependencies are cached in named volumes, so only the first start installs.
+
 ### Manual Installation
 
 #### Backend
diff --git a/docker-compose.dev.yml b/docker-compose.dev.yml
new file mode 100644
index 0000000..f49ff43
--- /dev/null
+++ b/docker-compose.dev.yml
@@ -0,0 +1,48 @@
+# Development compose: source is bind-mounted and both services reload on
+# change (uvicorn --reload / vite HMR). Production stays docker-compose.yml.
+#
+#   docker compose -f docker-compose.dev.yml up
+#
+# Frontend: http://localhost:5173 (proxies /api and /ws to the backend).
+# Backend API directly: http://localhost:8000.
+# Data/logs live in ./config-dev so dev never touches the production ./config.
+# Dependencies are cached in named volumes; the first start installs them.
+
+services:
+  backend:
+    image: python:3.14-slim
+    container_name: steamselfgifter-dev-backend
+    working_dir: /app
+    command: >
+      bash -c "python -m venv /opt/venv &&
+               /opt/venv/bin/pip install --quiet -e '.[dev]' &&
+               cd src &&
+               /opt/venv/bin/uvicorn api.main:app --host 0.0.0.0 --port 8000 --reload"
+    volumes:
+      - ./backend:/app:z
+      - ./config-dev:/config:z
+      - backend-venv:/opt/venv
+    environment:
+      - ENVIRONMENT=development
+      - DEBUG=true
+    ports:
+      - "8000:8000"
+
+  frontend:
+    image: node:24-alpine
+    container_name: steamselfgifter-dev-frontend
+    working_dir: /app
+    command: sh -c "npm install --no-audit --no-fund && npm run dev -- --host 0.0.0.0"
+    volumes:
+      - ./frontend:/app:z
+      - frontend-node-modules:/app/node_modules
+    environment:
+      - VITE_PROXY_TARGET=http://backend:8000
+    ports:
+      - "5173:5173"
+    depends_on:
+      - backend
+
+volumes:
+  backend-venv:
+  frontend-node-modules:
diff --git a/frontend/vite.config.ts b/frontend/vite.config.ts
index 252b469..b30e88a 100644
--- a/frontend/vite.config.ts
+++ b/frontend/vite.config.ts
@@ -2,6 +2,10 @@ import { defineConfig } from 'vite'
 import react from '@vitejs/plugin-react'
 import path from 'path'
 
+// Backend the dev server proxies to; docker-compose.dev.yml points this at
+// the backend container, plain local dev keeps the localhost default.
+const proxyTarget = process.env.VITE_PROXY_TARGET || 'http://localhost:8000'
+
 // https://vitejs.dev/config/
 export default defineConfig({
   plugins: [react()],
@@ -15,11 +19,11 @@ export default defineConfig({
     proxy: {
       // Proxy API requests to backend
       '/api': {
-        target: 'http://localhost:8000',
+        target: proxyTarget,
         changeOrigin: true,
       },
       '/ws': {
-        target: 'ws://localhost:8000',
+        target: proxyTarget.replace(/^http/, 'ws'),
         ws: true,
       },
     },