diff --git a/.woodpecker.yaml b/.woodpecker.yaml
index 3d68271..9179249 100644
--- a/.woodpecker.yaml
+++ b/.woodpecker.yaml
@@ -29,7 +29,7 @@ steps:
       path:
         include: [ backend/** ]
     settings:
-      registry: harbor-core.dev-tools.svc.cluster.local
+      registry: harbor.dvirlabs.com
       repo: my-apps/${CI_REPO_NAME}-backend
       dockerfile: backend/Dockerfile
       context: backend
@@ -40,6 +40,11 @@ steps:
         from_secret: DOCKER_USERNAME
       password:
         from_secret: DOCKER_PASSWORD
+      # Kaniko options to handle large images
+      build_args:
+        - --compressed-caching=false
+        - --snapshot-mode=redo
+        - --use-new-run
 
   update-values-frontend:
     name: Update frontend tag in values.yaml
diff --git a/backend/.dockerignore b/backend/.dockerignore
index fb216e9..aa16f26 100644
--- a/backend/.dockerignore
+++ b/backend/.dockerignore
@@ -22,3 +22,18 @@ htmlcov/
 dmypy.json
 *.log
 .DS_Store
+# Test files
+test_*.py
+*_test.py
+# Development files
+.git
+.gitignore
+.dockerignore
+Dockerfile
+README.md
+*.md
+# Migration scripts (if not needed at runtime)
+migrations.sql
+migrate_production.sql
+run_migration.py
+run_production_migration.py
diff --git a/backend/Dockerfile b/backend/Dockerfile
index 1945138..bb24f86 100644
--- a/backend/Dockerfile
+++ b/backend/Dockerfile
@@ -1,29 +1,45 @@
-# Use Python 3.11 slim image as base
-FROM python:3.11-slim
+# Multi-stage build to reduce final image size
+FROM python:3.11-slim as builder
 
 # Set working directory
 WORKDIR /app
 
-# Install system dependencies
-RUN apt-get update && apt-get install -y \
+# Install build dependencies
+RUN apt-get update && apt-get install -y --no-install-recommends \
     gcc \
-    postgresql-client \
     && rm -rf /var/lib/apt/lists/*
 
 # Copy requirements file
 COPY requirements.txt .
 
-# Install Python dependencies
-RUN pip install --no-cache-dir -r requirements.txt
+# Install Python dependencies to a specific directory
+RUN pip install --no-cache-dir --prefix=/install -r requirements.txt
 
-# Copy application code
-COPY . .
+# Final stage - minimal runtime image
+FROM python:3.11-slim
+
+# Set working directory
+WORKDIR /app
+
+# Install only runtime dependencies
+RUN apt-get update && apt-get install -y --no-install-recommends \
+    postgresql-client \
+    && rm -rf /var/lib/apt/lists/* \
+    && apt-get clean
+
+# Copy installed packages from builder
+COPY --from=builder /install /usr/local
+
+# Copy only necessary application code (exclude test files, pycache, etc.)
+COPY *.py .
+COPY requirements.txt .
 
 # Expose port 8000
 EXPOSE 8000
 
 # Set environment variables
-ENV PYTHONUNBUFFERED=1
+ENV PYTHONUNBUFFERED=1 \
+    PYTHONDONTWRITEBYTECODE=1
 
 # Run the application
-CMD ["uvicorn", "main:app", "--host", "0.0.0.0", "--port", "8000"]
\ No newline at end of file
+CMD ["uvicorn", "main:app", "--host", "0.0.0.0", "--port", "8000"]