diff --git a/.gitignore b/.gitignore
index 2d4d343a..39b75505 100644
--- a/.gitignore
+++ b/.gitignore
@@ -24,7 +24,7 @@ _testmain.go
 *.test
 *.prof
 
-lnd
+/lnd
 
 cmd/cmd
 **.key
diff --git a/docker/README.md b/docker/README.md
new file mode 100644
index 00000000..8b137891
--- /dev/null
+++ b/docker/README.md
@@ -0,0 +1 @@
+
diff --git a/docker/btcd/Dockerfile b/docker/btcd/Dockerfile
new file mode 100644
index 00000000..088d474e
--- /dev/null
+++ b/docker/btcd/Dockerfile
@@ -0,0 +1,25 @@
+FROM golang:1.6.2
+
+MAINTAINER Olaoluwa Osuntokun <laolu@lightning.network>
+
+# Grab and install the latest version of roasbeef's fork of btcd and all
+# related dependencies.
+RUN go get -u -v github.com/roasbeef/btcd/...
+
+# Expose the mainnet, testnet, simnet, and segnet listening ports.
+EXPOSE 8333 18333 18335 28901
+
+# Expose the mainnet, testnet, simnet, and segnet rpc ports.
+EXPOSE 8333 18333 18336 28902
+
+VOLUME ["/data"]
+
+RUN mkdir /root/.btcd && mkdir /root/.btcctl
+
+# Generate an automatic RPC conf.
+ADD initrpc.go /root/
+WORKDIR /root
+RUN go build -o gen-config && ./gen-config
+
+# TODO(roabeef): ENV or prog to parse --no-tls?
+ENTRYPOINT ["/go/bin/btcd", "--datadir=/data", "--logdir=/data", "--segnet", "--rpccert=/data/rpc.cert", "--rpckey=/data/rpc.key"]
diff --git a/docker/btcd/initrpc.go b/docker/btcd/initrpc.go
new file mode 100644
index 00000000..331da39b
--- /dev/null
+++ b/docker/btcd/initrpc.go
@@ -0,0 +1,64 @@
+package main
+
+import (
+	"bytes"
+	"crypto/rand"
+	"encoding/base64"
+	"flag"
+	"fmt"
+	"io/ioutil"
+	"log"
+	"text/template"
+
+	"github.com/roasbeef/btcutil"
+)
+
+var (
+	numRandBytes = flag.Int("num_rand_bytes", 32, "Number of random bytes to read for both the username and password")
+)
+
+const (
+	autoRpcTemplate = "[Application Options]\nrpcuser={{.Username}}\nrpcpass={{.Password}}"
+)
+
+type basicRpcOptions struct {
+	Username string
+	Password string
+}
+
+func randBase64string(numBytes int) string {
+	randBuf := make([]byte, numBytes)
+	if _, err := rand.Read(randBuf); err != nil {
+		log.Fatalf("unable to read random bytes: %v", err)
+	}
+	return base64.StdEncoding.EncodeToString(randBuf)
+}
+
+func main() {
+	fmt.Println("Creating random rpc config for btcd")
+	t := template.Must(template.New("rpcOptions").Parse(autoRpcTemplate))
+
+	randRpcOptions := basicRpcOptions{
+		Username: randBase64string(*numRandBytes),
+		Password: randBase64string(*numRandBytes),
+	}
+
+	var autoAuth bytes.Buffer
+	if err := t.Execute(&autoAuth, randRpcOptions); err != nil {
+		log.Fatalf("unable to generate random auth: %v")
+	}
+
+	btcdHomeDir := btcutil.AppDataDir("btcd", false)
+	btcctlHomeDir := btcutil.AppDataDir("btcctl", false)
+	btcdConfigPath := fmt.Sprintf("%s/btcd.conf", btcdHomeDir)
+	btcctlConfigPath := fmt.Sprintf("%s/btcctl.conf", btcctlHomeDir)
+
+	if err := ioutil.WriteFile(btcdConfigPath, autoAuth.Bytes(), 0644); err != nil {
+		log.Fatalf("unable to write config for btcd: %v", err)
+	}
+
+	if err := ioutil.WriteFile(btcctlConfigPath, autoAuth.Bytes(), 0644); err != nil {
+		log.Fatalf("unable to write config for btcctl: %v", err)
+	}
+	fmt.Println("fin.")
+}
diff --git a/docker/docker-compose.yml b/docker/docker-compose.yml
new file mode 100644
index 00000000..e790fb36
--- /dev/null
+++ b/docker/docker-compose.yml
@@ -0,0 +1,21 @@
+version: '2'
+services:
+    btcd:
+        container_name: btcd
+        build: btcd/
+        ports:
+            # TODO(roasbeef): switch to testnet after fixing peer discovery.
+            - "28901:28901"
+        volumes:
+            - shared-volume:/data
+    lnd:
+        container_name: lnd
+        build: lnd/
+        ports:
+            - "10009:10009"
+        volumes:
+            - shared-volume:/data
+        links:
+            - btcd
+volumes:
+  shared-volume: {}
diff --git a/docker/lnd/Dockerfile b/docker/lnd/Dockerfile
new file mode 100644
index 00000000..4d2de759
--- /dev/null
+++ b/docker/lnd/Dockerfile
@@ -0,0 +1,14 @@
+FROM golang:1.6.2
+
+MAINTAINER Olaoluwa Osuntokun <laolu@lightning.network>
+
+# Grab and install the latest version of lnd and all related dependencies.
+# TODO(roasbeef): replace with glide install
+RUN go get -u -v github.com/lightningnetwork/lnd/...
+
+VOLUME ["/data"]
+
+# Expose the p2p listening port, and the current RPC port.
+EXPOSE 10009 10011
+
+ENTRYPOINT ["/go/bin/lnd", "--datadir=/data", "--logdir=/data", "--segnet", "--btcdhost=btcd", "--rpccert=/data/rpc.cert"]