diff --git a/server/build.gradle.kts b/server/build.gradle.kts
index 25592c617..186d5948c 100644
--- a/server/build.gradle.kts
+++ b/server/build.gradle.kts
@@ -79,11 +79,11 @@ val copyDockerFolder: TaskProvider<Copy> =
         into(dockerBuildRootDirectory)
     }
 
-// @todo(#343) - createProductionDotEnv is temporary and used by the suites,
+// @todo(#343) - createDotEnv is temporary and used by the suites,
 //  once the suites no longer rely on the .env file from the build root we
 //  should remove this task
-val createProductionDotEnv: TaskProvider<Exec> =
-    tasks.register<Exec>("createProductionDotEnv") {
+val createDotEnv: TaskProvider<Exec> =
+    tasks.register<Exec>("createDotEnv") {
         description = "Creates the default dotenv file for the Block Node Server"
         group = "docker"
 
diff --git a/simulator/build.gradle.kts b/simulator/build.gradle.kts
index 9887754d9..0bf920a59 100644
--- a/simulator/build.gradle.kts
+++ b/simulator/build.gradle.kts
@@ -96,6 +96,8 @@ tasks.named("sourcesJar") { dependsOn(tasks.named("untarTestBlockStream")) }
 
 // Vals
 val dockerProjectRootDirectory: Directory = layout.projectDirectory.dir("docker")
+var resourcesProjectRootDirectory: Directory = layout.projectDirectory.dir("src/main/resources")
+var distributionBuildRootDirectory: Directory = layout.buildDirectory.dir("distributions").get()
 val dockerBuildRootDirectory: Directory = layout.buildDirectory.dir("docker").get()
 
 // Docker related tasks
@@ -108,14 +110,47 @@ val copyDockerFolder: TaskProvider<Copy> =
         into(dockerBuildRootDirectory)
     }
 
+// Docker related tasks
+val copyDependenciesFolders: TaskProvider<Copy> =
+    tasks.register<Copy>("copyDependenciesFolders") {
+        description = "Copies the docker folder to the build root directory"
+        group = "docker"
+
+        dependsOn(copyDockerFolder, tasks.assemble)
+        from(resourcesProjectRootDirectory)
+        from(distributionBuildRootDirectory)
+        into(dockerBuildRootDirectory)
+    }
+
+val createDockerImage: TaskProvider<Exec> =
+    tasks.register<Exec>("createDockerImage") {
+        description = "Creates the docker image of the Block Stream Simulator"
+        group = "docker"
+
+        dependsOn(copyDependenciesFolders, tasks.assemble)
+        workingDir(dockerBuildRootDirectory)
+        commandLine("sh", "-c", "docker buildx build -t hedera-block-simulator:latest .")
+    }
+
+val createDotEnv: TaskProvider<Exec> =
+    tasks.register<Exec>("createDotEnv") {
+        description = "Creates .env file with needed environment variables for the simulator"
+        group = "docker"
+
+        dependsOn(createDockerImage, tasks.assemble)
+        workingDir(dockerBuildRootDirectory)
+        commandLine("sh", "-c", "./update-env.sh")
+    }
+
 val startDockerContainer: TaskProvider<Exec> =
     tasks.register<Exec>("startDockerContainer") {
         description = "Creates and starts the docker image of the Block Stream Simulator"
         group = "docker"
 
-        dependsOn(copyDockerFolder, tasks.assemble)
+        dependsOn(createDotEnv, tasks.assemble)
         workingDir(dockerBuildRootDirectory)
-        commandLine("sh", "-c", "./prepare-docker.sh")
+
+        commandLine("sh", "-c", "docker compose -p simulator up -d")
     }
 
 tasks.register<Exec>("stopDockerContainer") {
diff --git a/simulator/docker/prepare-docker.sh b/simulator/docker/prepare-docker.sh
deleted file mode 100755
index 0d98ff814..000000000
--- a/simulator/docker/prepare-docker.sh
+++ /dev/null
@@ -1,33 +0,0 @@
-#!/bin/bash
-
-# Exit on any error
-set -e
-
-echo "🚀 Preparing Docker build environment..."
-
-# Get the script's directory
-SCRIPT_DIR="$( cd "$( dirname "${BASH_SOURCE[0]}" )" && pwd )"
-PROJECT_ROOT="$SCRIPT_DIR/../../.."
-
-# Create docker directory if it doesn't exist
-mkdir -p "$SCRIPT_DIR"
-
-# Copy simulator distribution
-echo "📋 Copying simulator distribution..."
-cp ../distributions/simulator-*.tar "$SCRIPT_DIR/"
-
-# Copy block data
-echo "📋 Copying block data..."
-cp ../../src/main/resources/block-0.0.3.tar.gz "$SCRIPT_DIR/"
-
-# Copy logging properties
-echo "📋 Copying logging properties..."
-cp ../../src/main/resources/logging.properties "$SCRIPT_DIR/logging.properties"
-
-sh -c ./update-env.sh
-
-echo "✅ Docker build environment prepared successfully!"
-
-docker compose -p simulator up --build -d
-
-echo "✅ Docker images successfully built and started!"
diff --git a/suites/build.gradle.kts b/suites/build.gradle.kts
index 85af453d4..b3e80fc8d 100644
--- a/suites/build.gradle.kts
+++ b/suites/build.gradle.kts
@@ -43,8 +43,8 @@ tasks.register<Test>("runSuites") {
     group = "suites"
     modularity.inferModulePath = false
 
-    // @todo(#343) - :server:createProductionDotEnv should disappear
-    dependsOn(":server:createDockerImage", ":server:createProductionDotEnv")
+    // @todo(#343) - :server:createDotEnv should disappear
+    dependsOn(":server:createDockerImage", ":server:createDotEnv")
 
     useJUnitPlatform()
     testLogging { events("passed", "skipped", "failed") }