diff --git a/Dockerfile.template b/Dockerfile.template
index 99febb0d7..e6de2bb4d 100644
--- a/Dockerfile.template
+++ b/Dockerfile.template
@@ -1,4 +1,4 @@
-FROM python:${python_version}-slim as base
+FROM python:${python_version}-alpine as base
 
 LABEL vendor=${vendor}
 LABEL name="${name}"
@@ -11,8 +11,8 @@ LABEL build-date-iso8601="${build_date}"
 
 WORKDIR /root
 
-COPY ${tar_path}/${tar_name} .
-RUN ["pip", "install", "${tar_name}[full]"]
+RUN --mount=type=bind,source=${tar_path}/${tar_name},target=/tmp/${tar_name} \
+  pip install --no-cache-dir /tmp/${tar_name}[full]
 
 ENTRYPOINT ["b2"]
 CMD ["--help"]
diff --git a/changelog.d/+docker_optimization.changed.md b/changelog.d/+docker_optimization.changed.md
new file mode 100644
index 000000000..e5dcdabfa
--- /dev/null
+++ b/changelog.d/+docker_optimization.changed.md
@@ -0,0 +1 @@
+Reduce docker image size, from 170MB to 87MB by using alpine and other build optimizations