diff --git a/.gitignore b/.gitignore
index e8f1ec8..35a9f11 100644
--- a/.gitignore
+++ b/.gitignore
@@ -8,3 +8,7 @@ node_modules
 # bower
 bower_components
 src/vendor
+
+# docker
+Dockerfile
+docker-compose.yaml
diff --git a/README.md b/README.md
index bb33bf7..52c8df7 100644
--- a/README.md
+++ b/README.md
@@ -33,6 +33,22 @@ Then just
 $ npm install -g hugulp
 ```
 
+Or you can build and run using [docker](https://www.docker.com):
+
+```bash
+# Default docker setup: 
+$ ./scripts/create-docker-machine-and-run-it
+
+# -- OR --
+
+# Run with custom machine name, specific hugo version, specific node version and run docker in detached mode:
+$ ./scripts/create-docker-machine-and-run-it -a app-devel -g 0.20.6 -n 6.10.0 -d
+```
+
+**Note:** You only run the `./scripts/create-docker-machine-and-run-it` if you want to create 
+a new docker machine. Once the docker machine is created, you have to use docker commands 
+to manage it. Please be familiar with docker in this regard.
+
 ## Getting Started
 *hugulp* requires you to create the following folders inside your hugo site:
 
diff --git a/docker/Dockerfile.template b/docker/Dockerfile.template
new file mode 100644
index 0000000..bce2035
--- /dev/null
+++ b/docker/Dockerfile.template
@@ -0,0 +1,24 @@
+FROM node:7.9.0-alpine
+# Set environment variable
+ARG RUN_AS=node
+ARG HUGO_VERSION=0.20.6
+ARG HUGO_BINARY="hugo_${HUGO_VERSION}_Linux-64bit"
+RUN apk update && apk add py-pygments && rm -rf /var/cache/apk/*
+# Download and install hugo
+RUN mkdir /usr/local/hugo
+ADD https://github.com/spf13/hugo/releases/download/v${HUGO_VERSION}/${HUGO_BINARY}.tar.gz \
+    /usr/local/hugo/
+RUN tar xzf /usr/local/hugo/${HUGO_BINARY}.tar.gz -C /usr/local/hugo/ \
+    && ln -s /usr/local/hugo/hugo /usr/local/bin/hugo \
+    && rm /usr/local/hugo/${HUGO_BINARY}.tar.gz
+RUN npm install -g hugulp
+ENV HOME=/home/$RUN_AS
+COPY package.json $HOME/web/
+RUN chmod 755 $HOME/* && chown -R $RUN_AS:$RUN_AS $HOME/*
+USER $RUN_AS
+# Change working directory
+WORKDIR $HOME/web/
+USER root
+COPY . $HOME/web/
+RUN chown -R $RUN_AS:$RUN_AS $HOME/*
+USER $RUN_AS
\ No newline at end of file
diff --git a/docker/docker-compose.yaml.template b/docker/docker-compose.yaml.template
new file mode 100644
index 0000000..ea48c92
--- /dev/null
+++ b/docker/docker-compose.yaml.template
@@ -0,0 +1,15 @@
+---
+version: '3'
+services:
+  app:
+    labels: 
+      app: "app"
+    build:
+      context: .
+    command: /bin/sh -c './scripts/create-hugo-site -a ./app;cd app;hugulp watch'
+    volumes:
+      - .:/home/node/app
+      - /home/node/app/node_modules
+    ports:
+      - "3000:3000"
+      - "3001:3001"
diff --git a/scripts/create-docker-machine-and-run-it b/scripts/create-docker-machine-and-run-it
new file mode 100755
index 0000000..47c85e3
--- /dev/null
+++ b/scripts/create-docker-machine-and-run-it
@@ -0,0 +1,156 @@
+#!/bin/bash
+#
+# Setup a docker machine for development
+set -eu
+
+readonly PROGNAME=$(basename "$0")
+readonly ARGS=("$@")
+# Docker settings
+HUGO_VERSION=0.20.6
+NODE_VERSION="7.9.0-alpine"
+APP_NAME="app"
+DETACHED=
+check_where_cmd_is_run() {
+  # Check if script is being run from the root directory
+  if [ ! -d 'gulp' ]; then
+    cat <<- EOF
+		Please run this script from the root directory.
+
+		Example:
+			./scripts/create-docker-machine-and-run-it
+
+		-- OR --
+
+		bash ./scripts/create-docker-machine-and-run-it
+		EOF
+		exit 1
+	fi
+}
+
+usage() {
+  cat <<- EOF
+	Usage: ./scripts/$PROGNAME optional options
+
+	Setups a docker machine and runs it for development.
+
+	OPTIONS:
+	   -g --hugo-version the hugo version to be installed. Minus v or version prefix. It defaults to 0.9
+	   -n --node-version the node version to be installed. Minus v or version prefix. It defaults to 6.10.0
+	   -a --app-name the name of the app. It defaults to app
+	   -d --detached detached mode: Run containers in the background, print new container names.
+	   -h --help show this help
+
+	Examples:
+	Run with default settings:
+
+	   ./scripts/$PROGNAME
+
+	Run with custom machine name, specific hugo version, specific node version and run docker in detached mode:
+
+	   bash ./scripts/$PROGNAME -a app-name -g 0.9 -n 6.10.0
+	EOF
+}
+
+cmdline() {
+  local arg=
+  local args=
+  for arg; do
+    local delim=""
+    case "$arg" in
+      # Copied from: http://www.kfirlavi.com/blog/2012/11/14/defensive-bash-programming/
+      # Translate --machine-name to -m (short options)
+      --hugo-version)   args="${args}-g ";;
+      --node-version)   args="${args}-n ";;
+      --app-name)       args="${args}-a ";;
+      --detached)       args="${args}-d ";;
+      --help)           args="${args}-h ";;
+      #pass through anything else
+      *) [[ "${arg:0:1}" == "-" ]] || delim="\""
+          args="${args}${delim}${arg}${delim} ";;
+    esac
+  done
+  while getopts "g:n:a:dh" OPTION; do
+    case "$OPTION" in
+      h)
+        usage
+        exit 0
+        ;;
+      g)
+        HUGO_VERSION=$OPTARG
+        ;;
+      n)
+        NODE_VERSION=$OPTARG
+        ;;
+      a)
+        APP_NAME=$OPTARG
+        ;;
+      d)
+        DETACHED='-d'
+        ;;
+    esac
+  done
+  return 0
+}
+
+create_docker_file() {
+  # Check to make sure Dockerfile exist
+  if [ ! -f './docker/Dockerfile.template' ]; then
+    echo "This script requires ./docker/Dockerfile.template file to setup docker."
+  exit 1
+  fi
+  echo "Creating Dockerfile file..."
+  cp ./docker/Dockerfile.template ./Dockerfile
+  # Replace some lines in existing Dockerfile.
+  # Set sed -i option to '' to prevent it from creating backup files
+  # Replace node version set value
+  sed -i '' -e "s|^FROM node:\([0-9\.]*\).*|FROM node:$NODE_VERSION|" \
+    Dockerfile
+  # Replace hugo version with set value
+  sed -i '' -e "s|^ARG HUGO_VERSION=\([0-9\.]*\).*|ARG HUGO_VERSION=$HUGO_VERSION|" \
+    Dockerfile
+  # Replace app home directory with set value
+  sed -i '' -e "s|\$HOME/[a-zA-Z0-9]*/$|\$HOME/$APP_NAME/|g" \
+    Dockerfile
+  echo "Dockerfile successfully created."
+}
+
+setup_docker() {
+  # Check if docker is installed on the machine
+  if ! docker version > /dev/null; then
+    echo "Please docker-engine and docker-compose are required to be installed on the host machine"
+    echo "https://docs.docker.com/engine/installation/"
+    echo "https://docs.docker.com/compose/"
+    exit 1
+  fi
+  create_docker_file
+}
+
+setup_docker_compose() {
+  # Check to make sure docker-compose template file exist
+  if [ ! -f './docker/docker-compose.yaml.template' ]; then
+    echo "This script requires ./docker/docker-compose.yaml.template file to setup docker-compose."
+    exit 1
+  fi
+  echo "Creating docker-compose.yaml file..."
+  cp ./docker/docker-compose.yaml.template ./docker-compose.yaml
+  echo "docker-compose.yaml successfully created."
+  sed -i '' -e "s/app:/${APP_NAME}:/" \
+    docker-compose.yaml
+  sed -i '' -e "s/app/$APP_NAME/g" \
+    docker-compose.yaml
+  if [[ "$DETACHED" != "" ]]; then
+    docker-compose up --build "$DETACHED" "$APP_NAME"
+  else
+    docker-compose up --build "$APP_NAME"
+  fi
+}
+
+#######################
+#    Main function    #
+#######################
+if [[ $# -gt 0 ]]; then
+  cmdline "${ARGS[@]}"
+fi
+check_where_cmd_is_run
+setup_docker
+setup_docker_compose
diff --git a/scripts/create-hugo-site b/scripts/create-hugo-site
new file mode 100755
index 0000000..8570374
--- /dev/null
+++ b/scripts/create-hugo-site
@@ -0,0 +1,80 @@
+#!/bin/sh
+#
+# Creates pre-requiste hugo site
+set -eu
+
+readonly PROGNAME=$(basename "$0")
+readonly ARGS="$@"
+APP_NAME="app"
+
+usage() {
+	cat <<- EOF
+	Usage: ./scripts/$PROGNAME optional options
+
+	Creates folders needed to run hulgulp if they do not exist
+
+	OPTIONS:
+		-a --app-name the name of the app. It defaults to app
+		-h --help show this help
+
+	Example:
+	Run with a hugo website name set to website
+
+		./scripts/$PROGNAME -a website
+	EOF
+}
+
+cmdline() {
+  local arg=
+  local args=
+  for arg; do
+    local delim=""
+    case "$arg" in
+      # Copied from: http://www.kfirlavi.com/blog/2012/11/14/defensive-bash-programming/
+      # Translate --machine-name to -m (short options)
+      --app-name)       args="${args}-a ";;
+      --help)           args="${args}-h ";;
+      #pass through anything else
+      *) [[ "${arg:0:1}" == "-" ]] || delim="\""
+          args="${args}${delim}${arg}${delim} ";;
+    esac
+  done
+
+  OPTIND=1
+  while getopts "ha:" OPTION; do
+    case "$OPTION" in
+      h)
+        usage
+        exit 0
+        ;;
+      a)
+        APP_NAME=$OPTARG
+        ;;
+    esac
+  done
+  shift "$((OPTIND-1))" # Shift off the options and optional --.
+  return 0
+}
+
+create_hugo_site() {
+  if [ ! -d "$APP_NAME" ]; then
+    hugo new site "$APP_NAME"
+  fi
+}
+
+create_assets_folders() {
+  if [ ! -d "${APP_NAME}/assets" ]; then
+    mkdir -p "${APP_NAME}"/assets/img
+    mkdir -p "${APP_NAME}"/assets/styles
+    mkdir -p "${APP_NAME}"/assets/scripts
+  fi
+}
+
+#######################
+#    Main function    #
+#######################
+if [[ $# -gt 0 ]]; then
+  cmdline "$@"
+fi
+create_hugo_site
+create_assets_folders