diff --git a/.github/actions/create-dev-env/action.yml b/.github/actions/create-dev-env/action.yml
index b8b3d3d40..8cae2abd9 100644
--- a/.github/actions/create-dev-env/action.yml
+++ b/.github/actions/create-dev-env/action.yml
@@ -21,7 +21,5 @@ runs:
               python-version: 3.x
 
         - name: Install Dev Dependencies 📦
-          run: |
-              pip install --upgrade pip
-              pip install --upgrade -r docker/requirements-dev.txt
+          run: pip install -r requirements-docker.txt
           shell: bash
diff --git a/Dockerfile b/Dockerfile
new file mode 100644
index 000000000..45d808de8
--- /dev/null
+++ b/Dockerfile
@@ -0,0 +1,47 @@
+# syntax=docker/dockerfile:1
+FROM ghcr.io/astral-sh/uv:0.2.18 as uv
+FROM ghcr.io/aiidalab/full-stack:2024.1021
+
+USER ${NB_USER}
+
+ENV QE_VERSION "7.2"
+
+# 1. Install Quantum Espresso into a conda environment
+RUN mamba create -n quantum-espresso --yes qe=${QE_VERSION} && \
+    mamba clean --all -f -y
+
+# 2. Prepare AiiDA profile and localhost computer
+# (we do this here for better caching during Docker build)
+RUN bash /usr/local/bin/before-notebook.d/20_start-postgresql.sh && \
+    bash /usr/local/bin/before-notebook.d/40_prepare-aiida.sh && \
+    verdi daemon stop && \
+    mamba run -n aiida-core-services pg_ctl stop
+
+# 3. Copy the whole repo
+ENV QE_APP_FOLDER ${AIIDALAB_APPS}/quantum-espresso
+COPY --chown=${NB_UID}:${NB_GID} . ${QE_APP_FOLDER}
+
+WORKDIR ${QE_APP_FOLDER}
+# 4.Install python dependencies
+# Use uv instead of pip to speed up installation, per docs:
+# https://github.com/astral-sh/uv/blob/main/docs/guides/docker.md#using-uv-temporarily
+# Use the same constraint file as pip
+ENV UV_CONSTRAINT ${PIP_CONSTRAINT}
+RUN --mount=from=uv,source=/uv,target=/bin/uv \
+    # Remove all untracked files and directories.
+    git clean -fx && \
+    uv pip install --system --no-cache .
+
+# 5. Install the QE pseudopotentials and codes
+RUN bash /usr/local/bin/before-notebook.d/20_start-postgresql.sh && \
+    python -m aiidalab_qe install-qe && \
+    python -m aiidalab_qe install-pseudos && \
+    mamba run -n aiida-core-services pg_ctl stop
+
+USER root
+COPY ./before-notebook.d/* /usr/local/bin/before-notebook.d/
+RUN fix-permissions "${CONDA_DIR}" && \
+    fix-permissions "/home/${NB_USER}"
+
+USER ${NB_USER}
+WORKDIR "/home/${NB_USER}"
diff --git a/before-notebook.d/00_untar_home.sh b/before-notebook.d/00_untar_home.sh
new file mode 100644
index 000000000..e81f23beb
--- /dev/null
+++ b/before-notebook.d/00_untar_home.sh
@@ -0,0 +1,19 @@
+#!/bin/bash
+#
+set -euo pipefail
+
+home="/home/${NB_USER}"
+
+if [[ ! -d ${home} ]]; then
+    echo "Directory $home does not exist!"
+    exit 1
+fi
+
+# Untar home archive file to restore home directory if it is empty
+if [[ $(ls -A ${home} | wc -l) = "0" ]];then
+  if [ -f /opt/home.tar ]; then
+    # untar /opt/home.tar to /home/jovyan to restore home directory
+    echo "Untarring /opt/home.tar to /home/jovyan"
+    tar -xf /opt/home.tar -C /home/jovyan
+  fi
+fi
diff --git a/docker/Dockerfile b/docker/Dockerfile
deleted file mode 100644
index cc6dc423c..000000000
--- a/docker/Dockerfile
+++ /dev/null
@@ -1,52 +0,0 @@
-# syntax=docker/dockerfile:1
-FROM ghcr.io/astral-sh/uv:0.2.18 as uv
-FROM base-image
-
-USER ${NB_USER}
-
-ENV QE_VERSION ${QE_VERSION}
-RUN mamba create -p /opt/conda/envs/quantum-espresso --yes \
-        qe=${QE_VERSION} \
-     && mamba clean --all -f -y && \
-     fix-permissions "${CONDA_DIR}" && \
-     fix-permissions "/home/${NB_USER}"
-
-# Copy whole repo and pre-install the dependencies and app to the tmp folder.
-# In the before notebook scripts the app will be re-installed by moving it to the app folder.
-ENV PREINSTALL_APP_FOLDER ${CONDA_DIR}/aiidalab-qe
-COPY --chown=${NB_UID}:${NB_GID} --from=src . ${PREINSTALL_APP_FOLDER}
-
-# Using uv to speed up installation, per docs:
-# https://github.com/astral-sh/uv/blob/main/docs/guides/docker.md#using-uv-temporarily
-# Use the same constraint file as PIP
-ENV UV_CONSTRAINT ${PIP_CONSTRAINT}
-RUN  --mount=from=uv,source=/uv,target=/bin/uv \
-     cd ${PREINSTALL_APP_FOLDER} && \
-     # Remove all untracked files and directories. For example the setup lock flag file.
-     git clean -fx && \
-     # It is important to install from `aiidalab install` to mimic the exact installation operation as
-     # from the app store.
-     # The command wil first install the dependencies from list by parsing setup config files,
-     # (for `aiidalab/aiidalab<23.03.2` the `setup.py` should be in the root folder of the app https://github.com/aiidalab/aiidalab/pull/382).
-     # and then the app and restart the daemon in the end.
-     # But since the aiida profile not yet exists, the daemon restart will fail but it is not a problem.
-     # Because we only need the dependencies to be installed.
-     # aiidalab install --yes --python ${CONDA_DIR}/bin/python  "quantum-espresso@file://${PREINSTALL_APP_FOLDER}" && \
-     # However, have to use `pip install` explicitly because `aiidalab install` call `pip install --user` which will install the app to `/home/${NB_USER}/.local`.
-     # It won't cause issue for docker but for k8s deployment the home folder is not bind mounted to the pod and the dependencies won't be found. (see issue in `jupyter/docker-stacks` https://github.com/jupyter/docker-stacks/issues/815)
-     uv pip install --system --no-cache . && \
-     fix-permissions "${CONDA_DIR}" && \
-     fix-permissions "/home/${NB_USER}"
-
-# The app version is used for installing the app when first time the container is started.
-ARG APP_VERSION
-ENV APP_VERSION ${APP_VERSION}
-
-# Download the QE pseudopotentials to the folder for afterware installation.
-ENV PSEUDO_FOLDER ${CONDA_DIR}/pseudo
-RUN mkdir -p ${PSEUDO_FOLDER} && \
-    python -m aiidalab_qe download-pseudos --dest ${PSEUDO_FOLDER}
-
-COPY before-notebook.d/* /usr/local/bin/before-notebook.d/
-
-WORKDIR "/home/${NB_USER}"
diff --git a/docker/before-notebook.d/70_prepare-qe-executable.sh b/docker/before-notebook.d/70_prepare-qe-executable.sh
deleted file mode 100644
index 41ba2d391..000000000
--- a/docker/before-notebook.d/70_prepare-qe-executable.sh
+++ /dev/null
@@ -1,16 +0,0 @@
-#!/bin/bash -e
-
-# Debugging.
-set -x
-
-# Copy quantum espresso env to user space.
-mkdir -p /home/${NB_USER}/.conda/envs
-if [ ! -d /home/${NB_USER}/.conda/envs/quantum-espresso-${QE_VERSION} ]; then
-  ln -s /opt/conda/envs/quantum-espresso /home/${NB_USER}/.conda/envs/quantum-espresso-${QE_VERSION}
-
-  # Install qe so the progress bar not shown in the notebook when first time using app.
-  echo "Installing qe."
-  python -m aiidalab_qe install-qe
-else
-  echo "Quantum ESPRESSO app is already installed."
-fi
diff --git a/docker/before-notebook.d/71_install-qeapp.sh b/docker/before-notebook.d/71_install-qeapp.sh
deleted file mode 100644
index 849d92849..000000000
--- a/docker/before-notebook.d/71_install-qeapp.sh
+++ /dev/null
@@ -1,21 +0,0 @@
-#!/bin/bash -e
-
-# Debugging.
-set -x
-
-# Install qeapp if it is not already installed.
-if aiidalab list | grep -q quantum-espresso; then
-    echo "Quantum ESPRESSO app is already installed."
-else
-    echo "Installing Quantum ESPRESSO app."
-    # Install by move the repo folder that is already in the image.
-    mv ${PREINSTALL_APP_FOLDER} /home/${NB_USER}/apps/quantum-espresso
-fi
-
-# Install the pseudo libraries if not already installed.
-if aiida-pseudo list | grep -q "no pseudo potential families"; then
-    echo "Installing pseudo potential families."
-    python -m aiidalab_qe install-pseudos --source ${PSEUDO_FOLDER}
-else
-    echo "Pseudo potential families are already installed."
-fi
diff --git a/docker/build.json b/docker/build.json
deleted file mode 100644
index 44dc1b92a..000000000
--- a/docker/build.json
+++ /dev/null
@@ -1,10 +0,0 @@
-{
-  "variable": {
-    "AIIDALAB_BASE_IMAGE": {
-      "default": "ghcr.io/aiidalab/full-stack:2024.1019"
-    },
-    "QE_VERSION": {
-      "default": "7.2"
-    }
-  }
-}
diff --git a/docker/docker-bake.hcl b/docker/docker-bake.hcl
deleted file mode 100644
index 97017844f..000000000
--- a/docker/docker-bake.hcl
+++ /dev/null
@@ -1,27 +0,0 @@
-# docker-bake.hcl for building QeApp images
-group "default" {
-  targets = ["qe"]
-}
-
-variable "QE_VERSION" {
-}
-
-variable "BASE_IMAGE" {
-  default = "aiidalab/full-stack:latest"
-}
-
-variable "ORGANIZATION" {
-  default = "aiidalab"
-}
-
-target "qe" {
-  tags = ["${ORGANIZATION}/qe:newly-baked"]
-  context = "."
-  contexts = {
-    src = ".."
-    base-image = "docker-image://${BASE_IMAGE}"
-  }
-  args = {
-    "QE_VERSION" = "${QE_VERSION}"
-  }
-}
diff --git a/docker/requirements-dev.txt b/requirements-docker.txt
similarity index 100%
rename from docker/requirements-dev.txt
rename to requirements-docker.txt