diff --git a/CHANGELOG.MD b/CHANGELOG.MD
index a6e10af..431f975 100644
--- a/CHANGELOG.MD
+++ b/CHANGELOG.MD
@@ -15,6 +15,7 @@ All notable changes to this project will be documented in this file.
 ### Added (3.2.1)
 - ✨ **Comprehensive Test Suite**: Consolidated all scattered test scripts into single `/tests/comprehensive_test_suite.sh` with 8 comprehensive test scenarios
 - ✨ **Auto-Detection Testing**: Test suite automatically detects local vs remote server endpoints
+- ✨ **Enhanced Container Builder**: Extended `builddocker.sh` with universal Docker & Podman support, auto-detection, and dedicated Podman compose file
 - ✨ **Project Structure Cleanup**: Removed 10+ redundant files, organized all tests in `/tests/` directory
 - ✨ **Universal Installation Documentation**: Enhanced README.md with complete installation framework and testing information
 
diff --git a/README.md b/README.md
index a7d0776..3ae8176 100644
--- a/README.md
+++ b/README.md
@@ -104,6 +104,30 @@ HMAC File Server 3.2 includes a comprehensive installation framework that suppor
 ./test clean    # Clean up test files
 ```
 
+### 🐳 **Enhanced Container Build Script**
+```bash
+# Universal container builder - auto-detects Docker & Podman
+./builddocker.sh
+
+# Use specific container engine
+./builddocker.sh docker          # Force Docker usage
+./builddocker.sh podman          # Force Podman usage
+
+# Build only (no services start)
+./builddocker.sh docker --build-only
+./builddocker.sh podman --build-only
+
+# Show usage help
+./builddocker.sh --help
+```
+
+**Features:**
+- ✅ **Auto-Detection**: Automatically finds available container engines (Docker/Podman)
+- ✅ **Engine Selection**: Interactive menu for multiple engines or force specific engine
+- ✅ **Compose Support**: Uses appropriate compose files (docker-compose.yml / podman-compose.yml)
+- ✅ **Podman Optimized**: SELinux labels, rootless support, security optimizations
+- ✅ **Build & Deploy**: Combined build and optional service startup in one command
+
 **Test Coverage:**
 - ✅ HMAC Authentication & File Upload Validation
 - ✅ XMPP Integration (MP4 uploads for Conversations/Gajim)
diff --git a/builddocker.sh b/builddocker.sh
index 9643764..44d3963 100755
--- a/builddocker.sh
+++ b/builddocker.sh
@@ -2,14 +2,234 @@
 
 set -e
 
+# Enhanced Container Build Script - Supports Docker & Podman
+# HMAC File Server 3.2.1 - Universal Container Support
+
 IMAGE_NAME="hmac-file-server"
 DOCKERFILE_PATH="dockerenv/dockerbuild/Dockerfile"
-COMPOSE_FILE="dockerenv/docker-compose.yml"
 
-echo "Building Docker image: $IMAGE_NAME"
-docker build -t "$IMAGE_NAME" -f "$DOCKERFILE_PATH" .
+# Select appropriate compose file based on engine
+get_compose_file() {
+    local engine="$1"
+    if [ "$engine" = "podman" ] && [ -f "dockerenv/podman-compose.yml" ]; then
+        echo "dockerenv/podman-compose.yml"
+    else
+        echo "dockerenv/docker-compose.yml"
+    fi
+}
 
-#echo "Starting services using $COMPOSE_FILE"
-#docker-compose -f "$COMPOSE_FILE" up -d
+# Colors for output
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+BLUE='\033[0;34m'
+NC='\033[0m' # No Color
 
-echo "Build and deployment complete."
+# Function to detect available container engines
+detect_container_engines() {
+    local engines=()
+    
+    if command -v docker &> /dev/null; then
+        engines+=("docker")
+    fi
+    
+    if command -v podman &> /dev/null; then
+        engines+=("podman")
+    fi
+    
+    echo "${engines[@]}"
+}
+
+# Function to select container engine
+select_container_engine() {
+    local available_engines=($(detect_container_engines))
+    
+    if [ ${#available_engines[@]} -eq 0 ]; then
+        echo -e "${RED}❌ Error: Neither Docker nor Podman is installed${NC}"
+        echo "Please install Docker or Podman to continue"
+        exit 1
+    fi
+    
+    # Check for user preference via argument
+    if [ "$1" = "docker" ] || [ "$1" = "podman" ]; then
+        local requested_engine="$1"
+        for engine in "${available_engines[@]}"; do
+            if [ "$engine" = "$requested_engine" ]; then
+                echo "$requested_engine"
+                return 0
+            fi
+        done
+        echo -e "${RED}❌ Error: $requested_engine is not available${NC}"
+        exit 1
+    fi
+    
+    # If only one engine available, use it
+    if [ ${#available_engines[@]} -eq 1 ]; then
+        echo "${available_engines[0]}"
+        return 0
+    fi
+    
+    # Multiple engines available, let user choose
+    echo -e "${BLUE}🐳 Multiple container engines detected:${NC}"
+    for i in "${!available_engines[@]}"; do
+        echo "  $((i+1))) ${available_engines[i]}"
+    done
+    
+    while true; do
+        read -p "Select container engine (1-${#available_engines[@]}): " choice
+        if [[ "$choice" =~ ^[0-9]+$ ]] && [ "$choice" -ge 1 ] && [ "$choice" -le ${#available_engines[@]} ]; then
+            echo "${available_engines[$((choice-1))]}"
+            return 0
+        fi
+        echo "Invalid choice. Please enter a number between 1 and ${#available_engines[@]}"
+    done
+}
+
+# Function to get compose command based on engine
+get_compose_command() {
+    local engine="$1"
+    
+    case "$engine" in
+        "docker")
+            if command -v docker-compose &> /dev/null; then
+                echo "docker-compose"
+            elif docker compose version &> /dev/null; then
+                echo "docker compose"
+            else
+                echo ""
+            fi
+            ;;
+        "podman")
+            if command -v podman-compose &> /dev/null; then
+                echo "podman-compose"
+            else
+                echo ""
+            fi
+            ;;
+        *)
+            echo ""
+            ;;
+    esac
+}
+
+# Function to build container image
+build_image() {
+    local engine="$1"
+    
+    echo -e "${BLUE}🔨 Building container image with $engine...${NC}"
+    echo "Image: $IMAGE_NAME"
+    echo "Dockerfile: $DOCKERFILE_PATH"
+    
+    if [ "$engine" = "podman" ]; then
+        # Podman specific build
+        podman build -t "$IMAGE_NAME" -f "$DOCKERFILE_PATH" .
+    else
+        # Docker build
+        docker build -t "$IMAGE_NAME" -f "$DOCKERFILE_PATH" .
+    fi
+    
+    if [ $? -eq 0 ]; then
+        echo -e "${GREEN}✅ Image built successfully with $engine${NC}"
+    else
+        echo -e "${RED}❌ Failed to build image with $engine${NC}"
+        exit 1
+    fi
+}
+
+# Function to start services (optional)
+start_services() {
+    local engine="$1"
+    local compose_file=$(get_compose_file "$engine")
+    local compose_cmd=$(get_compose_command "$engine")
+    
+    if [ -z "$compose_cmd" ]; then
+        echo -e "${YELLOW}⚠️  No compose command available for $engine${NC}"
+        echo "You can start the container manually:"
+        if [ "$engine" = "podman" ]; then
+            echo "  podman run -d --name hmac-file-server -p 8081:8080 -v ./dockerenv/config:/etc/hmac-file-server:Z -v ./dockerenv/data/uploads:/opt/hmac-file-server/data/uploads:Z $IMAGE_NAME"
+        else
+            echo "  docker run -d --name hmac-file-server -p 8081:8080 -v ./dockerenv/config:/etc/hmac-file-server -v ./dockerenv/data/uploads:/opt/hmac-file-server/data/uploads $IMAGE_NAME"
+        fi
+        return 0
+    fi
+    
+    echo -e "${BLUE}🚀 Starting services with $compose_cmd...${NC}"
+    echo "Using compose file: $compose_file"
+    
+    if [ "$compose_cmd" = "docker compose" ]; then
+        docker compose -f "$compose_file" up -d
+    else
+        $compose_cmd -f "$compose_file" up -d
+    fi
+    
+    if [ $? -eq 0 ]; then
+        echo -e "${GREEN}✅ Services started successfully${NC}"
+        echo "Server accessible at: http://localhost:8081"
+    else
+        echo -e "${RED}❌ Failed to start services${NC}"
+        exit 1
+    fi
+}
+
+# Main execution
+main() {
+    echo -e "${BLUE}🐳 HMAC File Server - Universal Container Builder${NC}"
+    echo "Version: 3.2.1 - Docker & Podman Support"
+    echo
+
+    # Select container engine
+    CONTAINER_ENGINE=$(select_container_engine "$1")
+    echo -e "${GREEN}📦 Using container engine: $CONTAINER_ENGINE${NC}"
+    echo
+
+    # Build image
+    build_image "$CONTAINER_ENGINE"
+    echo
+
+    # Ask about starting services
+    if [ "$2" != "--build-only" ]; then
+        read -p "Start services now? (y/n): " start_choice
+        if [[ "$start_choice" =~ ^[Yy] ]]; then
+            start_services "$CONTAINER_ENGINE"
+        else
+            echo -e "${YELLOW}ℹ️  Build complete. Services not started.${NC}"
+            echo "To start manually, use:"
+            local compose_file=$(get_compose_file "$CONTAINER_ENGINE")
+            local compose_cmd=$(get_compose_command "$CONTAINER_ENGINE")
+            if [ -n "$compose_cmd" ]; then
+                if [ "$compose_cmd" = "docker compose" ]; then
+                    echo "  docker compose -f $compose_file up -d"
+                else
+                    echo "  $compose_cmd -f $compose_file up -d"
+                fi
+            fi
+        fi
+    fi
+
+    echo
+    echo -e "${GREEN}🎉 Container build process completed successfully!${NC}"
+}
+
+# Show usage if help requested
+if [ "$1" = "--help" ] || [ "$1" = "-h" ]; then
+    echo "HMAC File Server - Universal Container Builder"
+    echo "Usage: $0 [engine] [options]"
+    echo
+    echo "Engines:"
+    echo "  docker    - Use Docker engine"
+    echo "  podman    - Use Podman engine"
+    echo "  (auto)    - Auto-detect and select available engine"
+    echo
+    echo "Options:"
+    echo "  --build-only    - Build image only, don't start services"
+    echo "  --help, -h      - Show this help message"
+    echo
+    echo "Examples:"
+    echo "  $0                    # Auto-detect engine and interactive mode"
+    echo "  $0 docker            # Use Docker specifically"
+    echo "  $0 podman --build-only # Use Podman, build only"
+    exit 0
+fi
+
+# Run main function
+main "$@"
diff --git a/dockerenv/podman-compose.yml b/dockerenv/podman-compose.yml
new file mode 100644
index 0000000..701ccb9
--- /dev/null
+++ b/dockerenv/podman-compose.yml
@@ -0,0 +1,22 @@
+# Podman Compose Configuration for HMAC File Server
+# Version: 3.2.1 - Podman optimized
+
+services:
+  hmac-file-server:
+    container_name: hmac-file-server
+    image: hmac-file-server:latest
+    ports:
+      - "8081:8080"
+    volumes:
+      - ./config:/etc/hmac-file-server:Z
+      - ./data/uploads:/opt/hmac-file-server/data/uploads:Z
+      - ./data/duplicates:/opt/hmac-file-server/data/duplicates:Z
+      - ./data/temp:/opt/hmac-file-server/data/temp:Z
+      - ./data/logs:/opt/hmac-file-server/data/logs:Z
+    environment:
+      - CONFIG_PATH=/etc/hmac-file-server/config.toml
+    restart: unless-stopped
+    security_opt:
+      - label=disable
+    # Podman specific optimizations
+    userns_mode: "keep-id"