diff --git a/config/docker_demo/.dockerignore b/config/docker_demo/.dockerignore
index f6511124..653cbf61 100644
--- a/config/docker_demo/.dockerignore
+++ b/config/docker_demo/.dockerignore
@@ -14,5 +14,8 @@
 /*/log/*
 /*/tmp/*
 
+# Ignore spec files.
+/*/spec/*
+
 # Ignore dockerfile
-Dockerfile
\ No newline at end of file
+Dockerfile
diff --git a/config/docker_demo/.env b/config/docker_demo/.env
index 18c039b5..b52fd852 100644
--- a/config/docker_demo/.env
+++ b/config/docker_demo/.env
@@ -1,3 +1,3 @@
 OPENSEARCH_VERSION=2.18.0
 ENV=local
-ELASTICGRAPH_PORT=9393
\ No newline at end of file
+ELASTICGRAPH_PORT=9393
diff --git a/config/docker_demo/Dockerfile b/config/docker_demo/Dockerfile
index 91a774c6..6b52b48e 100644
--- a/config/docker_demo/Dockerfile
+++ b/config/docker_demo/Dockerfile
@@ -1,55 +1,41 @@
 ARG PORT=9393
 ARG RUBY_VERSION=3.4
 
-# Use Ruby 3.x as the base image
 FROM ruby:${RUBY_VERSION}
 
-# Set working directory
 WORKDIR /app
 
-# Copy the entire project
-COPY . .
-
-
-# Retain just the files needed for building
-RUN find . \! -name "Gemfile" \! -name "*.gemspec" -mindepth 2 -maxdepth 2 -print | xargs rm -rf
-RUN find . \! -name "Gemfile*" \! -name "*.gemspec"  -maxdepth 1 -type f | xargs rm
-
-# Also need the version file. add it back
-COPY elasticgraph-support/lib/elastic_graph/version.rb ./elasticgraph-support/lib/elastic_graph/version.rb
-
-
-# Use Ruby 3.x as the base image
-FROM ruby:${RUBY_VERSION}
-
-WORKDIR /app/elasticgraph
-
-
-# Copy files from the first build stage.
-COPY --from=0 /app .
-
-# Install Ruby dependencies
+# Copy the minimal Gemfile and local ElasticGraph gems that we need.
+COPY config/docker_demo/Gemfile .
+COPY elasticgraph elasticgraph
+COPY elasticgraph-admin elasticgraph-admin
+COPY elasticgraph-datastore_core elasticgraph-datastore_core
+COPY elasticgraph-graphql elasticgraph-graphql
+COPY elasticgraph-indexer elasticgraph-indexer
+COPY elasticgraph-json_schema elasticgraph-json_schema
+COPY elasticgraph-local elasticgraph-local
+COPY elasticgraph-opensearch elasticgraph-opensearch
+COPY elasticgraph-query_registry elasticgraph-query_registry
+COPY elasticgraph-rack elasticgraph-rack
+COPY elasticgraph-schema_artifacts elasticgraph-schema_artifacts
+COPY elasticgraph-schema_definition elasticgraph-schema_definition
+COPY elasticgraph-support elasticgraph-support
+
+# Change the `ElasticGraph::VERSION` constant to a version that will never match any of the released
+# ElasticGraph gems. This ensures that when we `bundle install` in our demo project, it will not fall
+# back to released ElasticGraph gems. If we've failed to copy over any of the ElasticGraph gems needed
+# to boot the demo app, we want it to fail fast and tell us rather than pulling in released gems.
+RUN sed -i 's/^\(\s*\)VERSION = ".*"/\1VERSION = "999.999.999"/' elasticgraph-support/lib/elastic_graph/version.rb
+
+# Install dependencies
 RUN bundle install
 
-# Copy the entire project
-COPY . .
-
 # Running the new command will commit to git. Setup defaults
 RUN git config --global user.email "test@example.com"
 RUN git config --global user.name "Demo User"
 
-# Use the elasticgraph gem local to the container
-RUN sed -i 's|"#{VERSION}"|path: \"/app/elasticgraph\"|g' elasticgraph/lib/elastic_graph/cli.rb
-
-
-# Why does this need to run a second time?
-RUN bundle install
-
-WORKDIR /app
-
-# Create demo app using the locally build elasticgraph project
-RUN BUNDLE_GEMFILE=/app/elasticgraph/Gemfile bundle exec elasticgraph new demo
-
+# Create demo app using the locally built elasticgraph project
+RUN ELASTICGRAPH_GEMS_PATH=/app bundle exec elasticgraph new demo --datastore opensearch
 
 # Change work directory into the demo app
 WORKDIR /app/demo
@@ -57,6 +43,5 @@ WORKDIR /app/demo
 # Reference OpenSearch from the docker container
 RUN sed -i 's/localhost:9293/opensearch:9200/g' config/settings/local.yaml
 
-
-# Generate fake data and boot the graphiql api
+# Generate fake data and boot the GraphiQL UI
 CMD ["bundle", "exec", "rake", "index_fake_data:artists" ,"boot_graphiql[${PORT},--host=0.0.0.0,true]"]
diff --git a/config/docker_demo/Gemfile b/config/docker_demo/Gemfile
new file mode 100644
index 00000000..dcfef5c7
--- /dev/null
+++ b/config/docker_demo/Gemfile
@@ -0,0 +1,16 @@
+# Copyright 2024 Block, Inc.
+#
+# Use of this source code is governed by an MIT-style
+# license that can be found in the LICENSE file or at
+# https://opensource.org/licenses/MIT.
+#
+# frozen_string_literal: true
+
+source "https://rubygems.org"
+
+# This minimal Gemfile is used by the docker image and intentionally only contains
+# what is needed to be able to run `bundle exec elasticgraph new`. The resulting
+# demo project has its own `Gemfile` which will pull in the rest of the ElasticGraph
+# gems.
+gemspec path: "elasticgraph"
+gemspec path: "elasticgraph-support"
diff --git a/config/docker_demo/docker-compose.yaml b/config/docker_demo/docker-compose.yaml
index 788065ad..8ce18b02 100644
--- a/config/docker_demo/docker-compose.yaml
+++ b/config/docker_demo/docker-compose.yaml
@@ -9,8 +9,8 @@ services:
       context: ../../elasticgraph-local/lib/elastic_graph/local/opensearch/.
       dockerfile: Dockerfile
       args:
-        VERSION: 2.18.0
-    container_name: opensearch-2.18.0-${ENV}
+        VERSION: ${OPENSEARCH_VERSION}
+    container_name: opensearch-${OPENSEARCH_VERSION}-${ENV}
     healthcheck:
       interval: 10s
       retries: 80
@@ -38,18 +38,6 @@ services:
     - opensearch:/usr/share/opensearch/data
     ports:
     - 9200:9200
-  dashboards:
-    build:
-      context: ../../elasticgraph-local/lib/elastic_graph/local/opensearch/.
-      dockerfile: UI-Dockerfile
-      args:
-        VERSION: ${OPENSEARCH_VERSION}
-    container_name: dashboards-${OPENSEARCH_VERSION}-${ENV}
-    environment:
-    - OPENSEARCH_HOSTS=http://opensearch:9200
-    - DISABLE_SECURITY_DASHBOARDS_PLUGIN=true
-    ports:
-    - 5601:5601
   elasticgraph:
     build:
       context: ../..
@@ -64,4 +52,4 @@ services:
       opensearch:
         condition: service_healthy
 volumes:
-  opensearch:
\ No newline at end of file
+  opensearch: