diff --git a/Dockerfile b/Dockerfile
new file mode 100644
index 00000000..9dc1d690
--- /dev/null
+++ b/Dockerfile
@@ -0,0 +1,28 @@
+FROM opensuse:42.1
+RUN zypper -q -n --non-interactive install update-alternatives ruby-devel make gcc gcc-c++ libxml2 libxml2-devel libxslt-devel nodejs screen libmysqld-devel sqlite3-devel imagemagick
+
+ENV APP_HOME /osem
+RUN mkdir $APP_HOME
+WORKDIR $APP_HOME
+
+ADD Gemfile* $APP_HOME/
+COPY Gemfile Gemfile
+COPY Gemfile.lock Gemfile.lock
+
+RUN echo 'install: --no-format-executable' >> /etc/gemrc
+RUN gem install bundler
+RUN gem install nokogiri -v '1.6.7.2' -- --use-system-libraries
+RUN bundle install
+RUN gem install tzinfo
+RUN gem install tzinfo-data
+
+ADD . $APP_HOME
+ADD config/database.yml.example config/database.yml
+ADD config/config.yml.example config/config.yml
+ADD config/secrets.yml.example config/secrets.yml
+RUN touch db/production.sqlite3
+RUN touch db/development.sqlite3
+RUN touch db/test.sqlite3
+
+EXPOSE 8080
+CMD rake db:create && rake db:migrate && rails:update:bin && rails s -p 8080 -b '0.0.0.0'
diff --git a/Gemfile b/Gemfile
index e7593f2f..0d9012c6 100644
--- a/Gemfile
+++ b/Gemfile
@@ -56,6 +56,9 @@ gem 'sass-rails', '>= 4.0.2'
 # as compressor for JavaScript assets
 gem 'uglifier', '>= 1.3.0'
 
+# for correct time zones at some environments
+gem 'tzinfo-data'
+
 # as the front-end framework
 gem 'bootstrap-sass', '~> 3.3.4.1'
 gem 'autoprefixer-rails'
diff --git a/Gemfile.lock b/Gemfile.lock
index 5af62e75..fc3d42c4 100644
--- a/Gemfile.lock
+++ b/Gemfile.lock
@@ -464,6 +464,8 @@ GEM
       coffee-rails
     tzinfo (1.2.2)
       thread_safe (~> 0.1)
+    tzinfo-data (1.2016.3)
+      tzinfo (>= 1.0.0)
     uglifier (2.5.0)
       execjs (>= 0.3.0)
       json (>= 1.8.0)
@@ -574,8 +576,12 @@ DEPENDENCIES
   timecop
   transitions
   turbolinks
+  tzinfo-data
   uglifier (>= 1.3.0)
   unobtrusive_flash (>= 3)
   web-console (~> 2.0)
   webmock
   whenever
+
+BUNDLED WITH
+   1.11.2
diff --git a/INSTALL.md b/INSTALL.md
index e9e031cd..331b0087 100644
--- a/INSTALL.md
+++ b/INSTALL.md
@@ -52,6 +52,57 @@ You can access the app [localhost:3000](http://localhost:3000). Whatever you cha
     ```
     vagrant exec rake db:migrate
     ```
+### Run OSEM in Docker containter using Docker Compose tool
+
+1. Install [Docker](https://docs.docker.com/linux/step_one/) and [Docker-Compose](https://docs.docker.com/compose/install/). It is better run on Linux, but you can run it on MacOS or Windows with Docker-Machine. Don't forget to add your user to ```docker``` group.
+
+2. Clone this code repository:
+
+    ```
+    git clone https://github.com/openSUSE/osem.git
+    ```
+
+3. Change current directory to OSEM project:
+
+    ```
+    cd osem/
+    ```
+
+4. Start building your OSEM rails app container:
+
+    ```
+    docker-compose build
+    ```
+
+5. Run your OSEM rails app container for the first time:
+
+    ```
+    docker-compose up
+    ```
+
+6. In another terminal change directory to your OSEM rails app and make a create db and make migrations:
+
+    ```
+    docker-compose run web rake db:create db:migrate
+    ```
+
+7. Press ```Ctrl-C``` in previous terminal to stop running container and start container again:
+
+    ```
+    docker-compose start
+    ```
+
+8. Check that new OSEM rails app container is running:
+
+    ```
+    docker-compose ps
+    ```
+
+9. Now you can look at browser by passing url ```http:\\localhost:8080\```. Stop container with
+
+    ```
+    docker-compose stop
+    ```
 
 **Note**: We use [letter_opener](https://github.com/ryanb/letter_opener) in development environment.
 However, letter_opener uses launchy to present the emails in your browser which doesn't work in combination with Vagrant.
diff --git a/docker-compose.yml b/docker-compose.yml
new file mode 100644
index 00000000..2b31838c
--- /dev/null
+++ b/docker-compose.yml
@@ -0,0 +1,7 @@
+web:
+  build: .
+  command: bash -c "bundle exec rails s -p 8080 -b '0.0.0.0'"
+  volumes:
+    - ./:/osem
+  ports:
+    - "8080:8080"