diff --git a/README.md b/README.md
index 17d6cce2e..5e781f4d4 100644
--- a/README.md
+++ b/README.md
@@ -153,6 +153,9 @@ npm install -g allure-commandline --save-dev
 
 ```
 
+# Docker Setup Instructions
+
+This repository support building Docker image from bundled [Dockerfile](./docker/Dockerfile). If you want to use it for testing, please refer to the [related directory for details](./docker).
 
 ### Executing and Contributing new test cases
 
diff --git a/docker/README.md b/docker/README.md
index 1b754a33e..566ee4111 100644
--- a/docker/README.md
+++ b/docker/README.md
@@ -3,11 +3,28 @@
 ### Building a docker image
 
 From the root directory of this repository (wlan-testing) run the following command:
+
 ```bash
 docker build -f ./docker/Dockerfile -t wlantest .
 ```
+
 This will produce a docker image, which you can verify by running docker images command.
 
+By default image will run [setup_env.bash](../setup_env.bash) that will install all required dependencies for tests against all supported devices and version 2 of Cloud SDK (see https://github.com/Telecominfraproject/wlan-cloud-ucentral-deploy/ for details).
+
+If you want to modify this logic, you may pass different build arguments to the build. Supported arguments:
+
+- CLOUDSDK_LIBRARY - Cloud SDK library that should be used for tests (by default `tip_2x` will be used);
+- TEST_DEVICE_NAME - device type that should be installed as a depencency (by default `all` will be used).
+
+Check [setup_env.bash](../setup_env.bash) for more details on supported parameters.
+
+Example on how to pass build arguments:
+
+```bash
+docker build -f ./docker/Dockerfile -t wlantest --build-arg TEST_DEVICE_NAME=lanforge .
+```
+
 ### Running a docker image
 
 From the root directory of this repository (wlan-testing) run the following command. This command executes  
@@ -16,4 +33,4 @@ configuration.py and replace ${YOUR_ALLURE_RESULTS_DIR} with your allure result
 
 ```bash
 docker run -i -t -v $(YOUR_ALLURE_RESULT_DIR):/allure-results -v $(pwd)/configuration.py:/wlan-testing/configuration.py wlantest /bin/bash -c "cd tests; pytest -s -vvv --testbed=basic-02 -m client_connectivity_test --skip-testrail --alluredir=/allure-result"
-```
\ No newline at end of file
+```