diff --git a/cognee-mcp/Dockerfile b/cognee-mcp/Dockerfile
index 8efb7c46e..f7a56b8a5 100644
--- a/cognee-mcp/Dockerfile
+++ b/cognee-mcp/Dockerfile
@@ -10,15 +10,30 @@ WORKDIR /app
 # Copy from the cache instead of linking since it's a mounted volume
 ENV UV_LINK_MODE=copy
 
+# Set build argument
+ARG DEBUG
+
+# Set environment variable based on the build argument
+ENV DEBUG=${DEBUG}
+
+# Install system dependencies
+RUN apt-get update && apt-get install -y \
+    gcc \
+    libpq-dev
+
+# Copy pyproject.toml and lockfile first for better caching
+COPY pyproject.toml uv.lock ./
+
 # Install the project's dependencies using the lockfile and settings
 RUN --mount=type=cache,target=/root/.cache/uv \
-    --mount=type=bind,source=uv.lock,target=uv.lock \
-    --mount=type=bind,source=pyproject.toml,target=pyproject.toml \
     uv sync --frozen --no-install-project --no-dev --no-editable
 
+# Copy .env file first if it exists (for environment variables)
+COPY .env* /app/
+
 # Then, add the rest of the project source code and install it
 # Installing separately from its dependencies allows optimal layer caching
-ADD . /app
+COPY . /app
 RUN --mount=type=cache,target=/root/.cache/uv \
     uv sync --frozen --no-dev --no-editable
 
@@ -27,9 +42,16 @@ FROM python:3.12-slim-bookworm
 WORKDIR /app
  
 COPY --from=uv /root/.local /root/.local
-COPY --from=uv --chown=app:app /app /app
+COPY --from=uv /app /app
 
 # Place executables in the environment at the front of the path
 ENV PATH="/app/.venv/bin:$PATH"
 
+# Set environment variables for MCP server
+ENV PYTHONUNBUFFERED=1
+ENV MCP_LOG_LEVEL=DEBUG
+ENV PYTHONPATH=/app
+
+# Use the application name from pyproject.toml for normal operation
+# For testing, we'll override this with a direct command
 ENTRYPOINT ["cognee"]