diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index be58a46e..6b9dcfc4 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -2,6 +2,8 @@
 
 ## 📋 Code Quality Requirements
 
+For instructions on setting up and running the local development environment, please see [Development Guide](docs/DEVELOPMENT.md).
+
 ### 🔧 Code Formatting Rules
 
 **MANDATORY**: All code must be properly formatted before committing. This project enforces strict formatting standards to maintain code consistency and readability.
diff --git a/Dockerfile.source b/Dockerfile.source
index c4d9a430..73a628cb 100644
--- a/Dockerfile.source
+++ b/Dockerfile.source
@@ -72,7 +72,7 @@ COPY Cargo.toml Cargo.lock ./
 # 2) workspace member manifests (adjust if workspace layout changes)
 COPY rustfs/Cargo.toml rustfs/Cargo.toml
 COPY crates/*/Cargo.toml crates/
-COPY cli/rustfs-gui/Cargo.toml cli/rustfs-gui/Cargo.toml
+
 
 # Pre-fetch dependencies for better caching
 RUN --mount=type=cache,target=/usr/local/cargo/registry \
@@ -117,6 +117,49 @@ RUN --mount=type=cache,target=/usr/local/cargo/registry \
     ;; \
     esac
 
+# -----------------------------
+# Development stage (keeps toolchain)
+# -----------------------------
+FROM builder AS dev
+
+ARG BUILD_DATE
+ARG VCS_REF
+
+LABEL name="RustFS (dev-source)" \
+    maintainer="RustFS Team" \
+    build-date="${BUILD_DATE}" \
+    vcs-ref="${VCS_REF}" \
+    description="RustFS - local development with Rust toolchain."
+
+# Install runtime dependencies that might be missing in partial builder
+# (builder already has build-essential, lld, etc.)
+WORKDIR /app
+
+ENV CARGO_INCREMENTAL=1
+
+# Ensure we have the same default env vars available
+ENV RUSTFS_ADDRESS=":9000" \
+    RUSTFS_ACCESS_KEY="rustfsadmin" \
+    RUSTFS_SECRET_KEY="rustfsadmin" \
+    RUSTFS_CONSOLE_ENABLE="true" \
+    RUSTFS_VOLUMES="/data" \
+    RUST_LOG="warn" \
+    RUSTFS_OBS_LOG_DIRECTORY="/logs" \
+    RUSTFS_USERNAME="rustfs" \
+    RUSTFS_GROUPNAME="rustfs" \
+    RUSTFS_UID="1000" \
+    RUSTFS_GID="1000"
+
+# Note: We don't COPY source here because we expect it to be mounted at /app
+# We rely on cargo run to build and run
+EXPOSE 9000 9001
+
+COPY entrypoint.sh /entrypoint.sh
+RUN chmod +x /entrypoint.sh
+
+ENTRYPOINT ["/entrypoint.sh"]
+CMD ["cargo", "run", "--bin", "rustfs", "--"]
+
 # -----------------------------
 # Runtime stage (Ubuntu minimal)
 # -----------------------------
diff --git a/docker-compose.yml b/docker-compose.yml
index 492803e3..2dd53a8c 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -12,8 +12,6 @@
 # See the License for the specific language governing permissions and
 # limitations under the License.
 
-version: "3.8"
-
 services:
   # RustFS main service
   rustfs:
@@ -30,11 +28,11 @@ services:
       - "9000:9000" # S3 API port
       - "9001:9001" # Console port
     environment:
-      - RUSTFS_VOLUMES=/data/rustfs{0...3}  # Define 4 storage volumes
+      - RUSTFS_VOLUMES=/data/rustfs{0..3} # Define 4 storage volumes
       - RUSTFS_ADDRESS=0.0.0.0:9000
       - RUSTFS_CONSOLE_ADDRESS=0.0.0.0:9001
       - RUSTFS_CONSOLE_ENABLE=true
-      - RUSTFS_EXTERNAL_ADDRESS=:9000  # Same as internal since no port mapping
+      - RUSTFS_EXTERNAL_ADDRESS=:9000 # Same as internal since no port mapping
       - RUSTFS_CORS_ALLOWED_ORIGINS=*
       - RUSTFS_CONSOLE_CORS_ALLOWED_ORIGINS=*
       - RUSTFS_ACCESS_KEY=rustfsadmin
@@ -43,9 +41,9 @@ services:
       - RUSTFS_TLS_PATH=/opt/tls
       - RUSTFS_OBS_ENDPOINT=http://otel-collector:4317
     volumes:
-      - deploy/data/pro:/data
-      - deploy/logs:/app/logs
-      - deploy/data/certs/:/opt/tls # TLS configuration, you should create tls directory and put your tls files in it and then specify the path here
+      - ./deploy/data/pro:/data
+      - ./deploy/logs:/app/logs
+      - ./deploy/data/certs/:/opt/tls # TLS configuration, you should create tls directory and put your tls files in it and then specify the path here
     networks:
       - rustfs-network
     restart: unless-stopped
@@ -61,7 +59,9 @@ services:
       retries: 3
       start_period: 40s
     depends_on:
-      - otel-collector
+      otel-collector:
+        condition: service_started
+        required: false
 
   # Development environment
   rustfs-dev:
@@ -70,16 +70,17 @@ services:
     build:
       context: .
       dockerfile: Dockerfile.source
+      target: dev
       # Pure development environment
     ports:
       - "9010:9000" # S3 API port  
       - "9011:9001" # Console port
     environment:
-      - RUSTFS_VOLUMES=/data/rustfs{1...4}
+      - RUSTFS_VOLUMES=/data/rustfs{0..3}
       - RUSTFS_ADDRESS=0.0.0.0:9000
       - RUSTFS_CONSOLE_ADDRESS=0.0.0.0:9001
       - RUSTFS_CONSOLE_ENABLE=true
-      - RUSTFS_EXTERNAL_ADDRESS=:9010  # External port mapping 9010 -> 9000
+      - RUSTFS_EXTERNAL_ADDRESS=:9010 # External port mapping 9010 -> 9000
       - RUSTFS_CORS_ALLOWED_ORIGINS=*
       - RUSTFS_CONSOLE_CORS_ALLOWED_ORIGINS=*
       - RUSTFS_ACCESS_KEY=devadmin
@@ -88,7 +89,8 @@ services:
       - RUSTFS_OBS_LOG_DIRECTORY=/logs
     volumes:
       - .:/app # Mount source code to /app for development
-      - deploy/data/dev:/data
+      - cargo_registry:/usr/local/cargo/registry # Mount cargo registry to avoid re-downloading
+      - ./deploy/data/dev:/data
     networks:
       - rustfs-network
     restart: unless-stopped
@@ -230,3 +232,5 @@ volumes:
     driver: local
   logs:
     driver: local
+  cargo_registry:
+    driver: local
diff --git a/docs/DEVELOPMENT.md b/docs/DEVELOPMENT.md
new file mode 100644
index 00000000..60767eb6
--- /dev/null
+++ b/docs/DEVELOPMENT.md
@@ -0,0 +1,71 @@
+# RustFS Local Development Guide
+
+This guide explains how to set up and run a local development environment for RustFS using Docker. This approach allows you to build and run the code from source in a consistent environment without needing to install the Rust toolchain on your host machine.
+
+## Prerequisites
+
+- [Docker](https://docs.docker.com/get-docker/)
+- [Docker Compose](https://docs.docker.com/compose/install/)
+
+## Quick Start
+
+The development environment is configured as a Docker Compose profile named `dev`.
+
+### 1. Setup Console UI (Optional)
+
+If you want to use the Console UI, you must download the static assets first. The default source checkout does not include them.
+
+```bash
+bash scripts/static.sh
+```
+
+### 2. Start the Environment
+
+To start the development container:
+
+```bash
+docker compose --profile dev up -d rustfs-dev
+```
+
+**Note**: The first run will take some time (5-10 minutes) because it builds the docker image and compiles all Rust dependencies from source. Subsequent runs will be much faster.
+
+### 3. View Logs
+
+To follow the application logs:
+
+```bash
+docker compose --profile dev logs -f rustfs-dev
+```
+
+### 4. Access the Services
+
+- **S3 API**: `http://localhost:9010`
+- **Console UI**: `http://localhost:9011/rustfs/console/index.html`
+
+## Workflow
+
+### Making Changes
+The source code from your local `rustfs` directory is mounted into the container at `/app`. You can edit files in your preferred IDE on your host machine.
+
+### Applying Changes
+Since the application runs via `cargo run`, you need to restart the container to pick up changes. Thanks to incremental compilation, this is fast.
+
+```bash
+docker compose --profile dev restart rustfs-dev
+```
+
+### Rebuilding Dependencies
+If you modify `Cargo.toml` or `Cargo.lock`, you generally need to rebuild the Docker image to update the cached dependencies layer:
+
+```bash
+docker compose --profile dev build rustfs-dev
+```
+
+## Troubleshooting
+
+### `VolumeNotFound` Error
+If you see an error like `Error: Custom { kind: Other, error: VolumeNotFound }`, it means the `rustfs` binary was started without valid volume arguments.
+The development image uses `entrypoint.sh` to parse the `RUSTFS_VOLUMES` environment variable (supporting `{N..M}` syntax), create the directories, and pass them to `cargo run`. Ensure your `RUSTFS_VOLUMES` variable is correctly formatted.
+
+### Slow Initial Build
+This is expected. The `dev` stage in `Dockerfile.source` compiles all dependencies from scratch. Because the `/usr/local/cargo/registry` is mounted as a volume, these compiled artifacts are preserved between restarts, making future builds fast.
diff --git a/entrypoint.sh b/entrypoint.sh
index f9e605f6..e3466696 100755
--- a/entrypoint.sh
+++ b/entrypoint.sh
@@ -13,6 +13,8 @@ elif [ "${1#-}" != "$1" ]; then
 elif [ "$1" = "rustfs" ]; then
   shift
   set -- /usr/bin/rustfs "$@"
+elif [ "$1" = "cargo" ]; then
+  : # Pass through cargo command as-is
 else
   set -- /usr/bin/rustfs "$@"
 fi
@@ -22,8 +24,35 @@ DATA_VOLUMES=""
 process_data_volumes() {
   VOLUME_RAW="${RUSTFS_VOLUMES:-/data}"
   # Convert comma/tab to space
-  VOLUME_LIST=$(echo "$VOLUME_RAW" | tr ',\t' ' ')
+  VOLUME_LIST_RAW=$(echo "$VOLUME_RAW" | tr ',\t' ' ')
   
+  VOLUME_LIST=""
+  for vol in $VOLUME_LIST_RAW; do
+      # Helper to manually expand {N..M} since sh doesn't support it on variables
+      if echo "$vol" | grep -E -q "\{[0-9]+\.\.[0-9]+\}"; then
+           PREFIX=${vol%%\{*}
+           SUFFIX=${vol##*\}}
+           RANGE=${vol#*\{}
+           RANGE=${RANGE%\}}
+           START=${RANGE%%..*}
+           END=${RANGE##*..}
+           
+           # Check if START and END are numbers
+           if [ "$START" -eq "$START" ] 2>/dev/null && [ "$END" -eq "$END" 2>/dev/null ]; then
+               i=$START
+               while [ "$i" -le "$END" ]; do
+                 VOLUME_LIST="$VOLUME_LIST ${PREFIX}${i}${SUFFIX}"
+                 i=$((i+1))
+               done
+           else
+               # Fallback if not numbers
+               VOLUME_LIST="$VOLUME_LIST $vol"
+           fi
+      else
+           VOLUME_LIST="$VOLUME_LIST $vol"
+      fi
+  done
+
   for vol in $VOLUME_LIST; do
     case "$vol" in
       /*)