diff --git a/api/app/core/memory/agent/mcp_server/mcp_instance.py b/api/app/core/memory/agent/mcp_server/mcp_instance.py
index 3a2eeb78..c072a438 100644
--- a/api/app/core/memory/agent/mcp_server/mcp_instance.py
+++ b/api/app/core/memory/agent/mcp_server/mcp_instance.py
@@ -8,4 +8,7 @@ from mcp.server.fastmcp import FastMCP
 
 # Initialize FastMCP server instance
 # This instance is shared across all tool modules
-mcp = FastMCP('data_flow')
+mcp = FastMCP(
+    'data_flow',
+    allowed_hosts=["mcp-server", "localhost"]
+)
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diff --git a/api/docker-compose.yml b/api/docker-compose.yml
index 48ec137d..e0919c3b 100644
--- a/api/docker-compose.yml
+++ b/api/docker-compose.yml
@@ -26,9 +26,35 @@ services:
       - default
       - celery
 
+  # FastAPI application - connects to  MCP server
+  # MCP Server - standalone service
+  mcp-server:
+    image: redbear-mem-open:latest
+    container_name: mcp-server
+    ports:
+      - "8081:8081"  # MCP server port
+    env_file:
+      - .env
+    environment:
+      - SERVER_IP=0.0.0.0  # Bind to all interfaces
+    volumes:
+      - ./files:/files
+      - /etc/localtime:/etc/localtime:ro
+    command: python -m app.core.memory.agent.mcp_server.server
+    healthcheck:
+      test: ["CMD", "python", "-c", "import urllib.request; urllib.request.urlopen('http://localhost:8081/sse')"]
+      interval: 10s
+      timeout: 5s
+      retries: 5
+      start_period: 30s
+    restart: unless-stopped
+    networks:
+      - default
+      - celery
+
   # FastAPI application - connects to  MCP server
   api:
-    image: redbear-mem:latest
+    image: redbear-mem-open:latest
     container_name: api
     ports:
       - "8002:8000"
@@ -37,6 +63,9 @@ services:
     environment:
       - MCP_SERVER_URL=http://mcp-server:8081
       - SERVER_IP=0.0.0.0  # Ensure MCP server binds to all interfaces
+    environment:
+      - MCP_SERVER_URL=http://mcp-server:8081  # Back to using container name
+      - SERVER_IP=0.0.0.0  # Ensure MCP server binds to all interfaces
     volumes:
       - ./files:/files
       - /etc/localtime:/etc/localtime:ro
@@ -51,15 +80,16 @@ services:
 
   # Celery worker - connects to MCP server
   worker:
-    image: redbear-mem:latest
+    image: redbear-mem-open:latest
     container_name: worker
     env_file:
       - .env
     environment:
-      - MCP_SERVER_URL=http://mcp-server:8081
+      - MCP_SERVER_URL=http://mcp-server:8081  # Back to using container name
     volumes:
       - ./files:/files
       - /etc/localtime:/etc/localtime:ro
+      - /etc/localtime:/etc/localtime:ro
     command: celery -A app.celery_worker.celery_app worker --loglevel=info
     depends_on:
       mcp-server:
@@ -67,5 +97,13 @@ services:
     restart: unless-stopped
     networks:
       - celery
+networks:
+  celery:
+    depends_on:
+      mcp-server:
+        condition: service_healthy
+    restart: unless-stopped
+    networks:
+      - celery
 networks:
   celery:
\ No newline at end of file