diff --git a/Makefile b/Makefile
index defe95e..6d8722c 100644
--- a/Makefile
+++ b/Makefile
@@ -10,9 +10,5 @@ db:
 db_down:
 	docker compose down db
 
-apply_migrations:
-	@cd scripts && pwsh apply_migrations.ps1
-	@cd ../
-
-.PHONY: dev no-reload db db_down apply_migrations
+.PHONY: dev no-reload db db_down
 .DEFAULT_GOAL := dev
diff --git a/README.md b/README.md
index 1e2cc6e..69f33e0 100644
--- a/README.md
+++ b/README.md
@@ -31,16 +31,9 @@ or in bash/zsh
 dotnet dev-certs https -ep .aspnet/https/aspnetapp.pfx -p devcertpasswd --trust
 ```
 
-Next go to the `scripts` directory and run `apply_migrations.ps1`
-Next You should go back to the main directory and run `docker compose --profile hot-reload up --build --watch`
-This can be done with the following snippet.
+Database migrations will be automatically applied when executing docker-compose via the `migrations` service.
 
-```powershell
-cd scripts
-.\apply_migrations.ps1
-cd ..\
-docker compose --profile hot-reload up --build --watch
-```
+Next You should go back to the main directory and run `docker compose --profile hot-reload up --build --watch`
 
 You can now visit the site at: <http://localhost:8888/>
 
@@ -51,15 +44,19 @@ Directory `scripts` contains some helpful scripts which automate some parts of w
 ## Development
 
 The application is started using the following command (with hot-reload feature):
+
 ```bash
 make
 ```
+
 or without the hot-reload feature:
+
 ```bash
 make no-reload
 ```
 
 If you want to run the application manually you can use the following command:
+
 ```bash
 docker compose --profile hot-reload up --build --watch
 ```
@@ -75,6 +72,10 @@ The `--watch` parameter starts containers with the `hot-reload` feature. This en
 > The `hot-reload` feature for backend applications uses `dotnet watch`, which only detects changes to existing files. It will not restart the container if new files are added (dotnet watch [issue](https://github.com/dotnet/aspnetcore/issues/8321)).
 
 ### DB Migrations
+
 When working with migrations remember to add parameter for project and startup project.
 For example when generating a new migration while in backend directory:
-`dotnet ef migrations add -p ./src/infrastructure -s ./src/api "Example"`
+
+```bash
+dotnet ef migrations add -p ./src/infrastructure -s ./src/api "Example"
+```
diff --git a/backend/Dockerfile b/backend/Dockerfile
index efa78e6..4d31524 100644
--- a/backend/Dockerfile
+++ b/backend/Dockerfile
@@ -1,17 +1,28 @@
 #See https://aka.ms/containerfastmode to understand how Visual Studio uses this Dockerfile to build your images for faster debugging.
 
-FROM mcr.microsoft.com/dotnet/aspnet:8.0 AS base
+ARG DOTNET_RUNTIME=mcr.microsoft.com/dotnet/aspnet
+ARG DOTNET_SDK=mcr.microsoft.com/dotnet/sdk
+ARG DOTNET_VERSION=8.0
+
+FROM ${DOTNET_RUNTIME}:${DOTNET_VERSION} AS base
 WORKDIR /app
 EXPOSE 80
 EXPOSE 443
 
-FROM mcr.microsoft.com/dotnet/sdk:8.0 AS development
+FROM ${DOTNET_SDK}:${DOTNET_VERSION} AS development
 COPY . /src
 WORKDIR /src
 CMD ["dotnet", "watch", "--verbose", "--non-interactive", "--no-launch-profile", "--project", "src/api/"]
 
+FROM ${DOTNET_SDK}:${DOTNET_VERSION} AS migrations
+COPY . /src
+WORKDIR /src
+RUN dotnet tool install --global dotnet-ef
+ENV PATH="$PATH:/root/.dotnet/tools"
+ENTRYPOINT [ "dotnet", "ef", "database", "update", "-p", "src/infrastructure", "-s", "src/api" ]
+
 #Todo: clean it up for multiproject build
-FROM mcr.microsoft.com/dotnet/sdk:8.0 AS build
+FROM ${DOTNET_SDK}:${DOTNET_VERSION} AS build
 WORKDIR /src
 COPY src/api/api.csproj src/api/
 RUN dotnet restore "src/api/api.csproj"
diff --git a/docker-compose.yml b/docker-compose.yml
index db315d9..658eb39 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -1,12 +1,30 @@
+# Common configuration between services
+x-frontend: &frontend-base
+  build:
+    context: ./frontend
+  ports:
+    - "8888:8888"
+
+x-backend: &backend-base
+  ports:
+    - "5001:80"
+    - "5000:443"
+  environment:
+    ASPNETCORE_ENVIRONMENT: "Development"
+    ConnectionStrings__KSummarized: "Host=db;Database=ksummarized;Username=${POSTGRES_USER};Password=${POSTGRES_PASSWORD}"
+    ASPNETCORE_Kestrel__Certificates__Default__Path: "/https/aspnetapp.pfx"
+    ASPNETCORE_Kestrel__Certificates__Default__Password: "devcertpasswd"
+    ASPNETCORE_URLS: "https://+:443;http://+:80"
+    DOTNET_USE_POLLING_FILE_WATCHER: true  # dotnet watch uses a a polling file watcher. Required for running it in docker.
+  volumes:
+    - .aspnet/https:/https/:ro  # read-only on the container
+
 services:
-  frontend: &frontend-base
+  frontend:
+    <<: *frontend-base
     container_name: ks-frontend
     profiles:
       - without-hot-reload
-    build:
-      context: ./frontend
-    ports:
-      - "8888:8888"
 
   frontend-hot-reload:
     <<: *frontend-base
@@ -24,27 +42,19 @@ services:
         - action: rebuild
           path: package.json
 
-  backend: &backend-base
+  backend:
+    <<: *backend-base
     container_name: ks-backend
     build:
       context: ./backend
+      target: final
     profiles:
       - without-hot-reload
-    ports:
-      - "5001:80"
-      - "5000:443"
-    environment:
-      ASPNETCORE_ENVIRONMENT: "Development"
-      ConnectionStrings__KSummarized: "Host=db;Database=ksummarized;Username=${POSTGRES_USER};Password=${POSTGRES_PASSWORD}"
-      ASPNETCORE_Kestrel__Certificates__Default__Path: "/https/aspnetapp.pfx"
-      ASPNETCORE_Kestrel__Certificates__Default__Password: "devcertpasswd"
-      ASPNETCORE_URLS: "https://+:443;http://+:80"
-      DOTNET_USE_POLLING_FILE_WATCHER: true  # dotnet watch uses a a polling file watcher. Required for running it in docker.
-    volumes:
-      - .aspnet/https:/https/:ro  # read-only on the container
     depends_on:
       db:
         condition: service_healthy
+      migrations:
+        condition: service_completed_successfully
 
   backend-hot-reload:
     <<: *backend-base
@@ -54,12 +64,28 @@ services:
       target: development
     profiles:
       - hot-reload
+    depends_on:
+      db:
+        condition: service_healthy
+      migrations:
+        condition: service_completed_successfully
     develop:
       watch:
         - action: sync
           path: ./backend
           target: /src
 
+  migrations:
+    <<: *backend-base
+    container_name: ks-migrations
+    restart: no
+    build:
+      context: ./backend
+      target: migrations
+    depends_on:
+      db:
+        condition: service_healthy
+
   db:
     image: postgres:14.0-alpine
     container_name: ks-database
@@ -71,7 +97,7 @@ services:
     env_file: .env
     healthcheck:
       test: ["CMD-SHELL", "sh -c 'pg_isready -U ${POSTGRES_USER}'"]
-      interval: 10s
+      interval: 3s
       timeout: 5s
       retries: 3
 
diff --git a/scripts/README.md b/scripts/README.md
index 9739734..424f38b 100644
--- a/scripts/README.md
+++ b/scripts/README.md
@@ -6,7 +6,6 @@ Right now there are this scripts:
 - `create_branch.ps1`
 - `clean_branches.ps1`
 - `create_pr.ps1`
-- `apply_migrations.ps1`
 
 Two out of those (`create_branch.ps1` and `create_pr.ps1`) require user to have GitHub CLI installed and to be logged in.
 
@@ -33,5 +32,3 @@ Two out of those (`create_branch.ps1` and `create_pr.ps1`) require user to have
     - `.\scripts\create_branch.ps1 -Assignee sojusan`
 
 - `clean_branches.ps1` - clears all of the local branches except for master and the current one.
-
-- `apply_migrations.ps1` - runs a project database in a docker container and performs migrations in the database.
diff --git a/scripts/apply_migrations.ps1 b/scripts/apply_migrations.ps1
deleted file mode 100755
index 773a305..0000000
--- a/scripts/apply_migrations.ps1
+++ /dev/null
@@ -1,31 +0,0 @@
-#!/usr/bin/env pwsh
-Write-Host "Loading Env"
-get-content ../.env | foreach {
-    if($_.StartsWith("#") -or [string]::IsNullOrWhitespace($_)){
-        return
-    }
-    $name, $value = $_.split('=')
-    set-content env:\$name $value
-}
-
-Write-Host "Starting DB"
-docker compose up db -d 2>&1 > $null
-Write-Output "Generateing migration script"
-Set-Location ../backend
-mkdir migration_scripts 2>&1 > $null
-dotnet ef migrations script --idempotent -o ./migration_scripts/migration.sql -p ./src/infrastructure -s ./src/api
-
-Write-Output "Applying.."
-$passwd = "PGPASSWORD=" + $Env:POSTGRES_PASSWORD
-$src = Join-Path $(Get-Location).Path migration_scripts
-docker run --network host -e $passwd -v ${src}:/migrations/ --rm postgres `
-    psql -h localhost -U $Env:POSTGRES_USER -d ksummarized -f /migrations/migration.sql `
-    2>&1 > $null
-
-Write-Output "Cleanup"
-Remove-Item -Recurse -Force migration_scripts
-Set-Location ../scripts
-Write-Output "Migrations had been applyed!"
-Write-Host "Stoping DB"
-docker stop ks-database 2>&1 > $null
-Write-Host "Done"