diff --git a/README.md b/README.md
index 11774a0..ea6bfd8 100644
--- a/README.md
+++ b/README.md
@@ -20,18 +20,24 @@ streamline Stable Diffusion capabilities, all while tapping into the power of In
    * `ENABLE_OPENAI_API` and `ENABLE_OLLAMA_API` flags are set to off and on, respectively, allowing interactions via Ollama only.
    * `ENABLE_IMAGE_GENERATION` is set to true, allowing you to generate images from the UI.
    * `IMAGE_GENERATION_ENGINE` is set to automatic1111 (SD.Next is compatible).
-3. SD.Next
+
+4. SD.Next
    * Uses as the base container the official [Intel® Extension for PyTorch](https://pytorch-extension.intel.com/installation?platform=gpu&version=v2.6.10%2Bxpu&os=linux%2Fwsl2&package=docker)
    * Uses a customized version of the SD.Next [docker file](https://github.com/vladmandic/sdnext/blob/dev/configs/Dockerfile.ipex), making it compatible with the Intel Extension for Pytorch image.
 
 ## Setup
-Run the following commands to start your AI instance
+Run the following commands to start your Ollama instance with Open WebUI
 ```bash
 $ git clone https://github.com/eleiton/ollama-intel-arc.git
 $ cd ollama-intel-arc
 $ podman compose up
 ```
 
+Additionally, if you want to run the SD.Next service for image generation, run this command in a different terminal:
+```bash
+$ podman compose -f docker-compose.sdnext.yml up
+```
+
 ## Validate
 Run the following command to verify your Ollama instance is up and running
 ```bash
diff --git a/docker-compose.sdnext.yml b/docker-compose.sdnext.yml
new file mode 100644
index 0000000..36bfb06
--- /dev/null
+++ b/docker-compose.sdnext.yml
@@ -0,0 +1,25 @@
+version: '3'
+
+services:
+  sdnext-ipex:
+    build:
+      context: sdnext
+      dockerfile: Dockerfile
+    image: sdnext-ipex:latest
+    container_name: sdnext-ipex
+    restart: unless-stopped
+    devices:
+      - /dev/dri:/dev/dri
+    ports:
+      - 7860:7860
+    volumes:
+      - sdnext-app-volume:/app
+      - sdnext-mnt-volume:/mnt
+      - sdnext-huggingface-volume:/root/.cache/huggingface
+      - sdnext-python-volume:/usr/local/lib/python3.10
+
+volumes:
+  sdnext-app-volume: {}
+  sdnext-mnt-volume: {}
+  sdnext-python-volume: {}
+  sdnext-huggingface-volume: {}
diff --git a/docker-compose.yml b/docker-compose.yml
index 6100136..6d4207c 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -45,25 +45,6 @@ services:
       - host.docker.internal:host-gateway
     restart: unless-stopped
 
-  sdnext-ipex:
-    build:
-      context: sdnext
-      dockerfile: Dockerfile
-    image: sdnext-ipex:latest
-    container_name: sdnext-ipex
-    restart: unless-stopped
-    devices:
-      - /dev/dri:/dev/dri
-    ports:
-      - 7860:7860
-    volumes:
-      - sdnext-app-volume:/app
-      - sdnext-mnt-volume:/mnt
-      - sdnext-huggingface-volume:/root/.cache/huggingface
-
 volumes:
   ollama-volume: {}
   open-webui-volume: {}
-  sdnext-app-volume: {}
-  sdnext-mnt-volume: {}
-  sdnext-huggingface-volume: {}
diff --git a/sdnext/Dockerfile b/sdnext/Dockerfile
index fa611b6..ce47f06 100644
--- a/sdnext/Dockerfile
+++ b/sdnext/Dockerfile
@@ -1,46 +1,16 @@
 FROM intel/intel-extension-for-pytorch:2.6.10-xpu
 
-# essentials
-RUN apt-get update && \
-    apt-get install -y --no-install-recommends --fix-missing \
-    software-properties-common \
-    build-essential \
-    ca-certificates \
-    wget \
-    gpg \
-    git
-
-# python3.10
-RUN apt-get install -y --no-install-recommends --fix-missing python3.10-venv
-
-# jemalloc is not required but it is highly recommended (also used with optional ipexrun)
-RUN apt-get install -y --no-install-recommends --fix-missing libjemalloc-dev
-ENV LD_PRELOAD=libjemalloc.so.2
-
-# cleanup
-RUN /usr/sbin/ldconfig
-RUN apt-get clean && rm -rf /var/lib/apt/lists/*
-
-# stop pip and uv from caching
-ENV PIP_NO_CACHE_DIR=true
-ENV UV_NO_CACHE=true
-
 # set paths to use with sdnext
-ENV SD_DOCKER=true
 ENV SD_DATADIR="/mnt/data"
 ENV SD_MODELSDIR="/mnt/models"
-ENV venv_dir="/mnt/python/venv"
 
 # git clone and start sdnext
-RUN echo '#!/bin/bash\ngit status || git clone https://github.com/vladmandic/sdnext.git .\n/app/webui.sh "$@"' | tee /bin/startup.sh
+RUN echo '#!/bin/bash\ngit status || git clone https://github.com/vladmandic/sdnext.git .\npython /app/launch.py "$@"' | tee /bin/startup.sh
 RUN chmod 755 /bin/startup.sh
 
 # run sdnext
 WORKDIR /app
 ENTRYPOINT [ "startup.sh", "-f", "--use-ipex", "--uv", "--listen", "--debug", "--api-log", "--log", "sdnext.log" ]
 
-# expose port
-EXPOSE 7860
-
 # stop signal
 STOPSIGNAL SIGINT