diff --git a/actionpack/lib/action_dispatch/system_test_case.rb b/actionpack/lib/action_dispatch/system_test_case.rb
index 610cd4cf76866..c78131f16a462 100644
--- a/actionpack/lib/action_dispatch/system_test_case.rb
+++ b/actionpack/lib/action_dispatch/system_test_case.rb
@@ -161,7 +161,7 @@ def self.driven_by(driver, using: :chrome, screen_size: [1400, 1400], options: {
       self.driver = SystemTesting::Driver.new(driver, **driver_options, &capabilities)
     end
 
-    # Configuration for the System Test application server
+    # Configuration for the System Test application server.
     #
     # By default this is localhost. This method allows the host and port to be specified manually.
     def self.served_by(host:, port:)
diff --git a/railties/CHANGELOG.md b/railties/CHANGELOG.md
index 8fe54eafc2c3e..7ecf3338a7438 100644
--- a/railties/CHANGELOG.md
+++ b/railties/CHANGELOG.md
@@ -1,3 +1,19 @@
+*   Generate a .devcontainer folder and its contents when creating a new app.
+
+    The .devcontainer folder includes everything needed to boot the app and do development in a remote container.
+
+    The container setup includes:
+     - A redis container for Kredis, ActionCable etc.
+     - A database (SQLite, Postgres, MySQL or MariaDB)
+     - A Headless chrome container for system tests
+     - Active Storage configured to use the local disk and with preview features working
+
+    If any of these options are skipped in the app setup they will not be included in the container configuration.
+
+    These files can be skipped using the `--skip-devcontainer` option.
+
+    *Andrew Novoselac & Rafael Mendonça França*
+
 *   Introduce `SystemTestCase#served_by` for configuring the System Test application server
 
     By default this is localhost. This method allows the host and port to be specified manually.
diff --git a/railties/lib/rails/generators.rb b/railties/lib/rails/generators.rb
index fe261777227b0..16dbddc39a939 100644
--- a/railties/lib/rails/generators.rb
+++ b/railties/lib/rails/generators.rb
@@ -23,6 +23,7 @@ module Generators
     autoload :NamedBase,       "rails/generators/named_base"
     autoload :ResourceHelpers, "rails/generators/resource_helpers"
     autoload :TestCase,        "rails/generators/test_case"
+    autoload :Devcontainer,    "rails/generators/devcontainer"
 
     mattr_accessor :namespace
 
diff --git a/railties/lib/rails/generators/app_base.rb b/railties/lib/rails/generators/app_base.rb
index 1e84be276ca10..5080d2380a091 100644
--- a/railties/lib/rails/generators/app_base.rb
+++ b/railties/lib/rails/generators/app_base.rb
@@ -13,6 +13,7 @@ module Rails
   module Generators
     class AppBase < Base # :nodoc:
       include Database
+      include Devcontainer
       include AppName
 
       NODE_LTS_VERSION = "18.15.0"
@@ -109,6 +110,9 @@ def self.add_shared_options_for(name)
         class_option :skip_ci,             type: :boolean, default: nil,
                                            desc: "Skip GitHub CI files"
 
+        class_option :skip_devcontainer,   type: :boolean, default: false,
+                                           desc: "Skip devcontainer files"
+
         class_option :dev,                 type: :boolean, default: nil,
                                            desc: "Set up the #{name} with Gemfile pointing to your Rails checkout"
 
@@ -400,6 +404,10 @@ def skip_ci?
         options[:skip_ci]
       end
 
+      def skip_devcontainer?
+        options[:skip_devcontainer]
+      end
+
       class GemfileEntry < Struct.new(:name, :version, :comment, :options, :commented_out)
         def initialize(name, version, comment, options = {}, commented_out = false)
           super
diff --git a/railties/lib/rails/generators/database.rb b/railties/lib/rails/generators/database.rb
index 2236092317cf0..443951adf179b 100644
--- a/railties/lib/rails/generators/database.rb
+++ b/railties/lib/rails/generators/database.rb
@@ -90,6 +90,14 @@ def mysql_socket
             "/opt/lampp/var/mysql/mysql.sock"         # xampp for linux
           ].find { |f| File.exist?(f) } unless Gem.win_platform?
         end
+
+        def mysql_database_host
+          if options[:skip_devcontainer]
+            "localhost"
+          else
+            "<%= ENV.fetch(\"DB_HOST\") { \"localhost\" } %>"
+          end
+        end
     end
   end
 end
diff --git a/railties/lib/rails/generators/devcontainer.rb b/railties/lib/rails/generators/devcontainer.rb
new file mode 100644
index 0000000000000..ae351a73bb2f0
--- /dev/null
+++ b/railties/lib/rails/generators/devcontainer.rb
@@ -0,0 +1,125 @@
+# frozen_string_literal: true
+
+module Rails
+  module Generators
+    module Devcontainer
+      private
+        def devcontainer_dependencies
+          return @devcontainer_dependencies if @devcontainer_dependencies
+
+          @devcontainer_dependencies = []
+
+          @devcontainer_dependencies << "selenium" if depends_on_system_test?
+          @devcontainer_dependencies << "redis" if devcontainer_needs_redis?
+          @devcontainer_dependencies << db_name_for_devcontainer if db_name_for_devcontainer
+          @devcontainer_dependencies
+        end
+
+        def devcontainer_variables
+          return @devcontainer_variables if @devcontainer_variables
+
+          @devcontainer_variables = {}
+
+          @devcontainer_variables["CAPYBARA_SERVER_PORT"] = "45678" if depends_on_system_test?
+          @devcontainer_variables["SELENIUM_HOST"] = "selenium" if depends_on_system_test?
+          @devcontainer_variables["REDIS_URL"] = "redis://redis:6379/1" if devcontainer_needs_redis?
+          @devcontainer_variables["DB_HOST"] = db_name_for_devcontainer if db_name_for_devcontainer
+
+          @devcontainer_variables
+        end
+
+        def devcontainer_volumes
+          return @devcontainer_volumes if @devcontainer_volumes
+
+          @devcontainer_volumes = []
+
+          @devcontainer_volumes << "redis-data" if devcontainer_needs_redis?
+          @devcontainer_volumes << db_volume_name_for_devcontainer if db_volume_name_for_devcontainer
+
+          @devcontainer_volumes
+        end
+
+        def devcontainer_needs_redis?
+          !(options.skip_action_cable? && options.skip_active_job?)
+        end
+
+        def db_name_for_devcontainer(database = options[:database])
+          case database
+          when "mysql"          then "mysql"
+          when "trilogy"        then "mariadb"
+          when "postgresql"     then "postgres"
+          end
+        end
+
+        def db_volume_name_for_devcontainer(database = options[:database])
+          case database
+          when "mysql"          then "mysql-data"
+          when "trilogy"        then "mariadb-data"
+          when "postgresql"     then "postgres-data"
+          end
+        end
+
+        def devcontainer_db_service_yaml(**options)
+          return unless service = db_service_for_devcontainer
+
+          service.to_yaml(**options)[4..-1]
+        end
+
+        def db_service_for_devcontainer(database = options[:database])
+          case database
+          when "mysql"          then mysql_service
+          when "trilogy"        then mariadb_service
+          when "postgresql"     then postgres_service
+          end
+        end
+
+        def postgres_service
+          {
+            "postgres" => {
+              "image" => "postgres:16.1",
+              "restart" => "unless-stopped",
+              "networks" => ["default"],
+              "volumes" => ["postgres-data:/var/lib/postgresql/data"],
+              "environment" => {
+                "POSTGRES_USER" => "postgres",
+                "POSTGRES_PASSWORD" => "postgres"
+              }
+            }
+          }
+        end
+
+        def mysql_service
+          {
+            "mysql" => {
+              "image" => "mysql/mysql-server:8.0",
+              "restart" => "unless-stopped",
+              "environment" => {
+                "MYSQL_ALLOW_EMPTY_PASSWORD" => true,
+                "MYSQL_ROOT_HOST" => "%"
+              },
+              "volumes" => ["mysql-data:/var/lib/mysql"],
+              "networks" => ["default"],
+            }
+          }
+        end
+
+        def mariadb_service
+          {
+            "mariadb" => {
+              "image" => "mariadb:10.5",
+              "restart" => "unless-stopped",
+              "networks" => ["dqefault"],
+              "volumes" => ["mariadb-data:/var/lib/mysql"],
+              "environment" => {
+                "MARIADB_ALLOW_EMPTY_ROOT_PASSWORD" => true,
+              },
+            }
+          }
+        end
+
+        def db_service_names
+          ["mysql", "mariadb", "postgres"]
+        end
+    end
+  end
+end
diff --git a/railties/lib/rails/generators/rails/app/app_generator.rb b/railties/lib/rails/generators/rails/app/app_generator.rb
index 51f08464ba55a..0310c7f7319a7 100644
--- a/railties/lib/rails/generators/rails/app/app_generator.rb
+++ b/railties/lib/rails/generators/rails/app/app_generator.rb
@@ -266,6 +266,14 @@ def vendor
     def config_target_version
       @config_target_version || Rails::VERSION::STRING.to_f
     end
+
+    def devcontainer
+      empty_directory ".devcontainer"
+
+      template ".devcontainer/devcontainer.json"
+      template ".devcontainer/Dockerfile"
+      template ".devcontainer/compose.yaml"
+    end
   end
 
   module Generators
@@ -455,6 +463,11 @@ def create_storage_files
         build(:storage)
       end
 
+      def create_devcontainer_files
+        return if skip_devcontainer? || options[:dummy_app]
+        build(:devcontainer)
+      end
+
       def delete_app_assets_if_api_option
         if options[:api]
           remove_dir "app/assets"
diff --git a/railties/lib/rails/generators/rails/app/templates/.devcontainer/Dockerfile.tt b/railties/lib/rails/generators/rails/app/templates/.devcontainer/Dockerfile.tt
new file mode 100644
index 0000000000000..e8368c6ab30c6
--- /dev/null
+++ b/railties/lib/rails/generators/rails/app/templates/.devcontainer/Dockerfile.tt
@@ -0,0 +1,14 @@
+FROM mcr.microsoft.com/devcontainers/ruby:1-3-bookworm
+
+<%- unless options.skip_active_storage -%>
+# Install packages needed to build gems
+RUN apt-get update -qq && \
+    apt-get install --no-install-recommends -y \
+      libvips \
+      #  For video thumbnails
+      ffmpeg \
+      # For pdf thumbnails. If you want to use mupdf instead of poppler,
+      # you can install the following packages instead:
+      # mupdf mupdf-tools
+      poppler-utils
+<%- end -%>
\ No newline at end of file
diff --git a/railties/lib/rails/generators/rails/app/templates/.devcontainer/compose.yaml.tt b/railties/lib/rails/generators/rails/app/templates/.devcontainer/compose.yaml.tt
new file mode 100644
index 0000000000000..81a486080eaf8
--- /dev/null
+++ b/railties/lib/rails/generators/rails/app/templates/.devcontainer/compose.yaml.tt
@@ -0,0 +1,55 @@
+services:
+  rails-app:
+    build:
+      context: ..
+      dockerfile: .devcontainer/Dockerfile
+
+    volumes:
+    - ../..:/workspaces:cached
+
+    # Overrides default command so things don't shut down after the process ends.
+    command: sleep infinity
+
+    networks:
+    - default
+
+    # Uncomment the next line to use a non-root user for all processes.
+    # user: vscode
+
+    # Use "forwardPorts" in **devcontainer.json** to forward an app port locally.
+    # (Adding the "ports" property to this file will not forward from a Codespace.)
+    ports:
+    - 45678:45678
+<%- if !devcontainer_dependencies.empty? -%>
+    depends_on:
+<%- devcontainer_dependencies.each do |dependency| -%>
+    - <%= dependency %>
+<%- end -%>
+<%- end -%>
+
+<%- if depends_on_system_test? -%>
+  selenium:
+    image: seleniarm/standalone-chromium
+    restart: unless-stopped
+    networks:
+    - default
+<%- end -%>
+
+<%- if devcontainer_needs_redis? -%>
+  redis:
+    image: redis:7.2
+    restart: unless-stopped
+    networks:
+    - default
+    volumes:
+    - redis-data:/data
+<%- end -%>
+
+  <%= devcontainer_db_service_yaml(indentation: 4) %>
+
+<%- if !devcontainer_volumes.empty? -%>
+volumes:
+<%- devcontainer_volumes.each do |volume| -%>
+  <%= volume %>:
+<%- end -%>
+<%- end -%>
diff --git a/railties/lib/rails/generators/rails/app/templates/.devcontainer/devcontainer.json.tt b/railties/lib/rails/generators/rails/app/templates/.devcontainer/devcontainer.json.tt
new file mode 100644
index 0000000000000..18a9009b68b0d
--- /dev/null
+++ b/railties/lib/rails/generators/rails/app/templates/.devcontainer/devcontainer.json.tt
@@ -0,0 +1,34 @@
+// For format details, see https://aka.ms/devcontainer.json. For config options, see the
+// README at: https://github.com/devcontainers/templates/tree/main/src/ruby
+{
+  "name": "<%= app_name %>",
+  "dockerComposeFile": "compose.yaml",
+  "service": "rails-app",
+  "workspaceFolder": "/workspaces/${localWorkspaceFolderBasename}",
+
+  // Features to add to the dev container. More info: https://containers.dev/features.
+  "features": {
+    "ghcr.io/devcontainers/features/github-cli:1": {}
+  },
+
+<%- if !devcontainer_variables.empty? -%>
+  "containerEnv": {
+    <%= devcontainer_variables.map { |key, value| "\"#{key}\": \"#{value}\"" }.join(",\n    ") %>
+  },
+<%- end -%>
+
+  // Features to add to the dev container. More info: https://containers.dev/features.
+  // "features": {},
+
+  // Use 'forwardPorts' to make a list of ports inside the container available locally.
+  // "forwardPorts": [],
+
+  // Configure tool-specific properties.
+  // "customizations": {},
+
+  // Uncomment to connect as root instead. More info: https://aka.ms/dev-containers-non-root.
+  // "remoteUser": "root",
+
+  // Use 'postCreateCommand' to run commands after the container is created.
+  "postCreateCommand": "bin/setup"
+}
diff --git a/railties/lib/rails/generators/rails/app/templates/config/databases/mysql.yml.tt b/railties/lib/rails/generators/rails/app/templates/config/databases/mysql.yml.tt
index c0b48fae02916..ee69408107113 100644
--- a/railties/lib/rails/generators/rails/app/templates/config/databases/mysql.yml.tt
+++ b/railties/lib/rails/generators/rails/app/templates/config/databases/mysql.yml.tt
@@ -18,7 +18,7 @@ default: &default
 <% if mysql_socket -%>
   socket: <%= mysql_socket %>
 <% else -%>
-  host: localhost
+  host: <%= mysql_database_host %>
 <% end -%>
 
 development:
diff --git a/railties/lib/rails/generators/rails/app/templates/config/databases/postgresql.yml.tt b/railties/lib/rails/generators/rails/app/templates/config/databases/postgresql.yml.tt
index 3bb5a491dbb84..90725ac5df42b 100644
--- a/railties/lib/rails/generators/rails/app/templates/config/databases/postgresql.yml.tt
+++ b/railties/lib/rails/generators/rails/app/templates/config/databases/postgresql.yml.tt
@@ -18,6 +18,13 @@ default: &default
   # For details on connection pooling, see Rails configuration guide
   # https://guides.rubyonrails.org/configuring.html#database-pooling
   pool: <%%= ENV.fetch("RAILS_MAX_THREADS") { 5 } %>
+<% unless options[:skip_devcontainer] -%>
+  <%% if ENV["DB_HOST"] %>
+  host: <%%= ENV["DB_HOST"] %>
+  username: postgres
+  password: postgres
+  <%% end %>
+<% end %>
 
 development:
   <<: *default
diff --git a/railties/lib/rails/generators/rails/app/templates/config/databases/trilogy.yml.tt b/railties/lib/rails/generators/rails/app/templates/config/databases/trilogy.yml.tt
index a22ccca2acbfe..b0cd1e73f9cc1 100644
--- a/railties/lib/rails/generators/rails/app/templates/config/databases/trilogy.yml.tt
+++ b/railties/lib/rails/generators/rails/app/templates/config/databases/trilogy.yml.tt
@@ -18,7 +18,7 @@ default: &default
 <% if mysql_socket -%>
   socket: <%= mysql_socket %>
 <% else -%>
-  host: localhost
+  host: <%= mysql_database_host %>
 <% end -%>
 
 development:
diff --git a/railties/lib/rails/generators/rails/app/templates/test/application_system_test_case.rb.tt b/railties/lib/rails/generators/rails/app/templates/test/application_system_test_case.rb.tt
index cee29fd2143ea..b5e2a0b0a98cf 100644
--- a/railties/lib/rails/generators/rails/app/templates/test/application_system_test_case.rb.tt
+++ b/railties/lib/rails/generators/rails/app/templates/test/application_system_test_case.rb.tt
@@ -1,5 +1,18 @@
 require "test_helper"
 
 class ApplicationSystemTestCase < ActionDispatch::SystemTestCase
+<% if skip_devcontainer? -%>
   driven_by :selenium, using: :headless_chrome, screen_size: [ 1400, 1400 ]
+<% else -%>
+  if ENV["CAPYBARA_SERVER_PORT"]
+    served_by host: "rails-app", port: ENV["CAPYBARA_SERVER_PORT"]
+
+    driven_by :selenium, using: :headless_chrome, screen_size: [ 1400, 1400 ], options: {
+      browser: :remote,
+      url: "http://#{ENV["SELENIUM_HOST"]}:4444",
+    }
+  else
+    driven_by :selenium, using: :headless_chrome, screen_size: [ 1400, 1400 ]
+  end
+<% end -%>
 end
diff --git a/railties/lib/rails/generators/rails/db/system/change/change_generator.rb b/railties/lib/rails/generators/rails/db/system/change/change_generator.rb
index 5bfb56bef15c7..02a9c0a6475ee 100644
--- a/railties/lib/rails/generators/rails/db/system/change/change_generator.rb
+++ b/railties/lib/rails/generators/rails/db/system/change/change_generator.rb
@@ -8,6 +8,7 @@ module Db
       module System
         class ChangeGenerator < Base # :nodoc:
           include Database
+          include Devcontainer
           include AppName
 
           class_option :to, required: true,
@@ -54,6 +55,14 @@ def edit_dockerfile
             end
           end
 
+          def edit_devcontainer_files
+            devcontainer_path = File.expand_path(".devcontainer", destination_root)
+            return unless File.exist?(devcontainer_path)
+
+            edit_devcontainer_json
+            edit_compose_yaml
+          end
+
           private
             def all_database_gems
               DATABASES.map { |database| gem_for_database(database) }
@@ -88,6 +97,59 @@ def gem_entry_for(*gem_name_and_version)
               gem_name_and_version.map! { |segment| "\"#{segment}\"" }
               "gem #{gem_name_and_version.join(", ")}"
             end
+
+            def edit_devcontainer_json
+              devcontainer_json_path = File.expand_path(".devcontainer/devcontainer.json", destination_root)
+              return unless File.exist?(devcontainer_json_path)
+
+              container_env = JSON.parse(File.read(devcontainer_json_path))["containerEnv"]
+              db_name = db_name_for_devcontainer
+
+              if container_env["DB_HOST"]
+                if db_name
+                  container_env["DB_HOST"] = db_name
+                else
+                  container_env.delete("DB_HOST")
+                end
+              else
+                if db_name
+                  container_env["DB_HOST"] = db_name
+                end
+              end
+
+              new_json = JSON.pretty_generate(container_env, indent: "  ", object_nl: "\n  ")
+
+              gsub_file(".devcontainer/devcontainer.json", /("containerEnv"\s*:\s*){[^}]*}/, "\\1#{new_json}")
+            end
+
+            def edit_compose_yaml
+              compose_yaml_path = File.expand_path(".devcontainer/compose.yaml", destination_root)
+              return unless File.exist?(compose_yaml_path)
+
+              compose_config = YAML.load_file(compose_yaml_path)
+
+              db_service_names.each do |db_service_name|
+                compose_config["services"].delete(db_service_name)
+                compose_config["volumes"]&.delete("#{db_service_name}-data")
+                compose_config["services"]["rails-app"]["depends_on"]&.delete(db_service_name)
+              end
+
+              db_service = db_service_for_devcontainer
+
+              if db_service
+                compose_config["services"].merge!(db_service)
+                compose_config["volumes"] = { db_volume_name_for_devcontainer => nil }.merge(compose_config["volumes"] || {})
+                compose_config["services"]["rails-app"]["depends_on"] = [
+                  db_name_for_devcontainer,
+                  compose_config["services"]["rails-app"]["depends_on"]
+                ].flatten.compact
+              end
+
+              compose_config.delete("volumes") unless compose_config["volumes"]&.any?
+              compose_config["services"]["rails-app"].delete("depends_on") unless compose_config["services"]["rails-app"]["depends_on"]&.any?
+
+              File.write(compose_yaml_path, compose_config.to_yaml)
+            end
         end
       end
     end
diff --git a/railties/test/fixtures/.devcontainer/compose-minimal.yaml b/railties/test/fixtures/.devcontainer/compose-minimal.yaml
new file mode 100644
index 0000000000000..354762b3ea1ef
--- /dev/null
+++ b/railties/test/fixtures/.devcontainer/compose-minimal.yaml
@@ -0,0 +1,14 @@
+services:
+  rails-app:
+    build:
+      context: ..
+      dockerfile: .devcontainer/Dockerfile
+
+    volumes:
+    - ../..:/workspaces:cached
+
+    # Overrides default command so things don't shut down after the process ends.
+    command: sleep infinity
+
+    networks:
+    - default
diff --git a/railties/test/fixtures/.devcontainer/compose.yaml b/railties/test/fixtures/.devcontainer/compose.yaml
new file mode 100644
index 0000000000000..7ccf704b2bd77
--- /dev/null
+++ b/railties/test/fixtures/.devcontainer/compose.yaml
@@ -0,0 +1,45 @@
+services:
+  rails-app:
+    build:
+      context: ..
+      dockerfile: .devcontainer/Dockerfile
+
+    volumes:
+      - ../..:/workspaces:cached
+
+    # Overrides default command so things don't shut down after the process ends.
+    command: sleep infinity
+
+    networks:
+    - default
+
+    # Uncomment the next line to use a non-root user for all processes.
+    # user: vscode
+
+    # Use "forwardPorts" in **devcontainer.json** to forward an app port locally.
+    # (Adding the "ports" property to this file will not forward from a Codespace.)
+    ports:
+    - 45678:45678
+    depends_on:
+    - selenium
+    - redis
+
+  selenium:
+    image: seleniarm/standalone-chromium
+    restart: unless-stopped
+    networks:
+    - default
+
+  redis:
+    image: redis:7.2
+    restart: unless-stopped
+    networks:
+    - default
+    volumes:
+    - redis-data:/data
+
+
+
+
+volumes:
+  redis-data:
diff --git a/railties/test/fixtures/.devcontainer/devcontainer.json b/railties/test/fixtures/.devcontainer/devcontainer.json
new file mode 100644
index 0000000000000..ea5b7aa3c31b9
--- /dev/null
+++ b/railties/test/fixtures/.devcontainer/devcontainer.json
@@ -0,0 +1,34 @@
+// For format details, see https://aka.ms/devcontainer.json. For config options, see the
+// README at: https://github.com/devcontainers/templates/tree/main/src/ruby
+{
+  "name": "tmp",
+  "dockerComposeFile": "compose.yaml",
+  "service": "rails-app",
+  "workspaceFolder": "/workspaces/${localWorkspaceFolderBasename}",
+
+  // Features to add to the dev container. More info: https://containers.dev/features.
+  "features": {
+    "ghcr.io/devcontainers/features/github-cli:1": {}
+  },
+
+  "containerEnv": {
+    "CAPYBARA_SERVER_PORT": "45678",
+    "SELENIUM_HOST": "selenium",
+    "REDIS_URL": "redis://redis:6379/1"
+  },
+
+  // Features to add to the dev container. More info: https://containers.dev/features.
+  // "features": {},
+
+  // Use 'forwardPorts' to make a list of ports inside the container available locally.
+  // "forwardPorts": [],
+
+  // Configure tool-specific properties.
+  // "customizations": {},
+
+  // Uncomment to connect as root instead. More info: https://aka.ms/dev-containers-non-root.
+  // "remoteUser": "root",
+
+  // Use 'postCreateCommand' to run commands after the container is created.
+  "postCreateCommand": "bin/setup"
+}
diff --git a/railties/test/generators/app_generator_test.rb b/railties/test/generators/app_generator_test.rb
index dd7742d5d0fbd..3d3b4dd177332 100644
--- a/railties/test/generators/app_generator_test.rb
+++ b/railties/test/generators/app_generator_test.rb
@@ -5,6 +5,9 @@
 require "generators/shared_generator_tests"
 
 DEFAULT_APP_FILES = %w(
+  .devcontainer/Dockerfile
+  .devcontainer/compose.yaml
+  .devcontainer/devcontainer.json
   .dockerignore
   .git
   .gitattributes
@@ -1229,6 +1232,185 @@ def test_name_option
     assert_file "config/application.rb", /^module MyApp$/
   end
 
+  def test_devcontainer
+    run_generator [destination_root, "--name=my-app"]
+
+    assert_file(".devcontainer/devcontainer.json") do |content|
+      assert_match(/"name": "my_app"/, content)
+      assert_match(/"REDIS_URL": "redis:\/\/redis:6379\/1"/, content)
+      assert_match(/"CAPYBARA_SERVER_PORT": "45678"/, content)
+      assert_match(/"SELENIUM_HOST": "selenium"/, content)
+    end
+    assert_file(".devcontainer/Dockerfile") do |content|
+      assert_match(/libvips/, content)
+      assert_match(/ffmpeg/, content)
+      assert_match(/poppler-utils/, content)
+    end
+    assert_compose_file do |compose_config|
+      expected_rails_app_config = {
+        "build" => {
+          "context" => "..",
+          "dockerfile" => ".devcontainer/Dockerfile"
+        },
+        "volumes" => ["../..:/workspaces:cached"],
+        "command" => "sleep infinity",
+        "networks" => ["default"],
+        "ports" => ["45678:45678"],
+        "depends_on" => ["selenium", "redis"]
+      }
+
+      assert_equal expected_rails_app_config, compose_config["services"]["rails-app"]
+
+      expected_selenium_conifg = {
+        "image" => "seleniarm/standalone-chromium",
+        "restart" => "unless-stopped",
+        "networks" => ["default"]
+      }
+
+      assert_equal expected_selenium_conifg, compose_config["services"]["selenium"]
+
+      expected_redis_config = {
+        "image" => "redis:7.2",
+        "restart" => "unless-stopped",
+        "networks" => ["default"],
+        "volumes" => ["redis-data:/data"]
+      }
+
+      assert_equal expected_redis_config, compose_config["services"]["redis"]
+      assert_equal ["redis-data"], compose_config["volumes"].keys
+    end
+  end
+
+  def test_devcontainer_no_redis_skipping_action_cable_and_active_job
+    run_generator [ destination_root, "--skip-action-cable", "--skip-active-job" ]
+
+    assert_compose_file do |compose_config|
+      assert_not_includes compose_config["services"]["rails-app"]["depends_on"], "redis"
+      assert_nil compose_config["services"]["redis"]
+      assert_nil compose_config["volumes"]
+    end
+  end
+
+  def test_devonctainer_postgresql
+    run_generator [ destination_root, "-d", "postgresql" ]
+
+    assert_compose_file do |compose_config|
+      assert_includes compose_config["services"]["rails-app"]["depends_on"], "postgres"
+
+      expected_postgres_config = {
+        "image" => "postgres:16.1",
+        "restart" => "unless-stopped",
+        "networks" => ["default"],
+        "volumes" => ["postgres-data:/var/lib/postgresql/data"],
+        "environment" => {
+          "POSTGRES_USER" => "postgres",
+          "POSTGRES_PASSWORD" => "postgres"
+        }
+      }
+
+      assert_equal expected_postgres_config, compose_config["services"]["postgres"]
+      assert_includes compose_config["volumes"].keys, "postgres-data"
+    end
+    assert_file(".devcontainer/devcontainer.json") do |content|
+      assert_match(/"DB_HOST": "postgres"/, content)
+    end
+    assert_file("config/database.yml") do |content|
+      assert_match(/host: <%= ENV\["DB_HOST"\] %>/, content)
+    end
+  end
+
+  def test_devonctainer_mysql
+    run_generator [ destination_root, "-d", "mysql" ]
+
+    assert_compose_file do |compose_config|
+      assert_includes compose_config["services"]["rails-app"]["depends_on"], "mysql"
+
+      expected_mysql_config = {
+        "image" => "mysql/mysql-server:8.0",
+        "restart" => "unless-stopped",
+        "environment" => {
+          "MYSQL_ALLOW_EMPTY_PASSWORD" => true,
+          "MYSQL_ROOT_HOST" => "%"
+        },
+        "volumes" => ["mysql-data:/var/lib/mysql"],
+        "networks" => ["default"],
+      }
+
+      assert_equal expected_mysql_config, compose_config["services"]["mysql"]
+      assert_includes compose_config["volumes"].keys, "mysql-data"
+    end
+    assert_file(".devcontainer/devcontainer.json") do |content|
+      assert_match(/"DB_HOST": "mysql"/, content)
+    end
+    assert_file("config/database.yml") do |content|
+      assert_match(/host: <%= ENV.fetch\("DB_HOST"\) \{ "localhost" } %>/, content)
+    end
+  end
+
+  def test_devonctainer_mariadb
+    run_generator [ destination_root, "-d", "trilogy" ]
+
+    assert_compose_file do |compose_config|
+      assert_includes compose_config["services"]["rails-app"]["depends_on"], "mariadb"
+      expected_mariadb_config = {
+        "image" => "mariadb:10.5",
+        "restart" => "unless-stopped",
+        "networks" => ["dqefault"],
+        "volumes" => ["mariadb-data:/var/lib/mysql"],
+        "environment" => {
+          "MARIADB_ALLOW_EMPTY_ROOT_PASSWORD" => true,
+        },
+      }
+
+      assert_equal expected_mariadb_config, compose_config["services"]["mariadb"]
+      assert_includes compose_config["volumes"].keys, "mariadb-data"
+    end
+    assert_file(".devcontainer/devcontainer.json") do |content|
+      assert_match(/"DB_HOST": "mariadb"/, content)
+    end
+    assert_file("config/database.yml") do |content|
+      assert_match(/host: <%= ENV.fetch\("DB_HOST"\) \{ "localhost" } %>/, content)
+    end
+  end
+
+  def test_devcontainer_no_selenium_when_skipping_system_test
+    run_generator [ destination_root, "--skip-system-test" ]
+
+    assert_compose_file do |compose_config|
+      assert_not_includes compose_config["services"]["rails-app"]["depends_on"], "selenium"
+      assert_not_includes compose_config["services"].keys, "selenium"
+    end
+    assert_file(".devcontainer/devcontainer.json") do |content|
+      assert_no_match(/CAPYBARA_SERVER_PORT/, content)
+    end
+  end
+
+  def test_devcontainer_no_Dockerfile_packages_when_skipping_active_storage
+    run_generator [ destination_root, "--skip-active-storage" ]
+
+    assert_file(".devcontainer/Dockerfile") do |content|
+      assert_no_match(/libvips/, content)
+      assert_no_match(/ffmpeg/, content)
+      assert_no_match(/poppler-utils/, content)
+    end
+  end
+
+  def test_devcontainer_no_depends_on_when_no_dependencies
+    run_generator [ destination_root, "--minimal" ]
+
+    assert_compose_file do |compose_config|
+      assert_not_includes compose_config["services"]["rails-app"].keys, "depends_on"
+    end
+  end
+
+  def test_skip_devcontainer
+    run_generator [ destination_root, "--skip-devcontainer" ]
+
+    assert_no_file(".devcontainer/devcontainer.json")
+    assert_no_file(".devcontainer/Dockerfile")
+    assert_no_file(".devcontainer/compose.yaml")
+  end
+
   private
     def assert_node_files
       assert_file ".node-version" do |content|
diff --git a/railties/test/generators/db_system_change_generator_test.rb b/railties/test/generators/db_system_change_generator_test.rb
index 77ca07fba17e3..4e0e2a2ee5d0b 100644
--- a/railties/test/generators/db_system_change_generator_test.rb
+++ b/railties/test/generators/db_system_change_generator_test.rb
@@ -17,6 +17,7 @@ class ChangeGeneratorTest < Rails::Generators::TestCase
             ENTRY
 
             copy_dockerfile
+            copy_devcontainer_files
           end
 
           test "change to invalid database" do
@@ -50,6 +51,28 @@ class ChangeGeneratorTest < Rails::Generators::TestCase
               assert_match "build-essential git libpq-dev", content
               assert_match "curl libvips postgresql-client", content
             end
+
+            assert_file(".devcontainer/devcontainer.json") do |content|
+              assert_match(/"DB_HOST": "postgres"/, content)
+            end
+
+            assert_compose_file do |compose_config|
+              assert_includes compose_config["services"]["rails-app"]["depends_on"], "postgres"
+
+              expected_postgres_config = {
+                "image" => "postgres:16.1",
+                "restart" => "unless-stopped",
+                "networks" => ["default"],
+                "volumes" => ["postgres-data:/var/lib/postgresql/data"],
+                "environment" => {
+                  "POSTGRES_USER" => "postgres",
+                  "POSTGRES_PASSWORD" => "postgres"
+                }
+              }
+
+              assert_equal expected_postgres_config, compose_config["services"]["postgres"]
+              assert_includes compose_config["volumes"].keys, "postgres-data"
+            end
           end
 
           test "change to mysql" do
@@ -69,6 +92,28 @@ class ChangeGeneratorTest < Rails::Generators::TestCase
               assert_match "build-essential default-libmysqlclient-dev git", content
               assert_match "curl default-mysql-client libvips", content
             end
+
+            assert_file(".devcontainer/devcontainer.json") do |content|
+              assert_match(/"DB_HOST": "mysql"/, content)
+            end
+
+            assert_compose_file do |compose_config|
+              assert_includes compose_config["services"]["rails-app"]["depends_on"], "mysql"
+
+              expected_postgres_config = {
+                "image" => "mysql/mysql-server:8.0",
+                "restart" => "unless-stopped",
+                "environment" => {
+                  "MYSQL_ALLOW_EMPTY_PASSWORD" => true,
+                  "MYSQL_ROOT_HOST" => "%"
+                },
+                "volumes" => ["mysql-data:/var/lib/mysql"],
+                "networks" => ["default"],
+              }
+
+              assert_equal expected_postgres_config, compose_config["services"]["mysql"]
+              assert_includes compose_config["volumes"].keys, "mysql-data"
+            end
           end
 
           test "change to sqlite3" do
@@ -88,6 +133,10 @@ class ChangeGeneratorTest < Rails::Generators::TestCase
               assert_match "build-essential git libvips", content
               assert_match "curl libsqlite3-0 libvips", content
             end
+
+            assert_file(".devcontainer/devcontainer.json") do |content|
+              assert_no_match(/"DB_HOST"/, content)
+            end
           end
 
           test "change to trilogy" do
@@ -108,6 +157,27 @@ class ChangeGeneratorTest < Rails::Generators::TestCase
               assert_match "curl libvips", content
               assert_no_match "default-libmysqlclient-dev", content
             end
+
+            assert_file(".devcontainer/devcontainer.json") do |content|
+              assert_match(/"DB_HOST": "mariadb"/, content)
+            end
+
+            assert_compose_file do |compose_config|
+              assert_includes compose_config["services"]["rails-app"]["depends_on"], "mariadb"
+
+              expected_postgres_config = {
+                "image" => "mariadb:10.5",
+                "restart" => "unless-stopped",
+                "networks" => ["dqefault"],
+                "volumes" => ["mariadb-data:/var/lib/mysql"],
+                "environment" => {
+                  "MARIADB_ALLOW_EMPTY_ROOT_PASSWORD" => true,
+                },
+              }
+
+              assert_equal expected_postgres_config, compose_config["services"]["mariadb"]
+              assert_includes compose_config["volumes"].keys, "mariadb-data"
+            end
           end
 
           test "change from versioned gem to other versioned gem" do
@@ -124,6 +194,23 @@ class ChangeGeneratorTest < Rails::Generators::TestCase
               assert_match 'gem "mysql2", "~> 0.5"', content
             end
           end
+
+          test "change from db with devcontainer service to one without" do
+            copy_minimal_devcontainer_compose_file
+
+            run_generator ["--to", "mysql"]
+            run_generator ["--to", "sqlite3", "--force"]
+
+            assert_file(".devcontainer/devcontainer.json") do |content|
+              assert_no_match(/"DB_HOST"/, content)
+            end
+
+            assert_compose_file do |compose_config|
+              assert_not_includes compose_config["services"]["rails-app"].keys, "depends_on"
+              assert_not_includes compose_config["services"].keys, "mysql"
+              assert_not_includes compose_config.keys, "volumes"
+            end
+          end
         end
       end
     end
diff --git a/railties/test/generators/generators_test_helper.rb b/railties/test/generators/generators_test_helper.rb
index e9f2d98713712..9e18c7adc3162 100644
--- a/railties/test/generators/generators_test_helper.rb
+++ b/railties/test/generators/generators_test_helper.rb
@@ -82,6 +82,25 @@ def copy_dockerfile
     File.write File.join(destination, "Dockerfile"), dockerfile
   end
 
+  def copy_devcontainer_files
+    destination = File.join(destination_root, ".devcontainer")
+    mkdir_p(destination)
+
+    devcontainer_json = File.read(File.expand_path("../fixtures/.devcontainer/devcontainer.json", __dir__))
+    File.write File.join(destination, "devcontainer.json"), devcontainer_json
+
+    compose_yaml = File.read(File.expand_path("../fixtures/.devcontainer/compose.yaml", __dir__))
+    File.write File.join(destination, "compose.yaml"), compose_yaml
+  end
+
+  def copy_minimal_devcontainer_compose_file
+    destination = File.join(destination_root, ".devcontainer")
+    mkdir_p(destination)
+
+    compose_yaml = File.read(File.expand_path("../fixtures/.devcontainer/compose-minimal.yaml", __dir__))
+    File.write File.join(destination, "compose.yaml"), compose_yaml
+  end
+
   def evaluate_template(file, locals = {})
     erb = ERB.new(File.read(file), trim_mode: "-", eoutvar: "@output_buffer")
     context = Class.new do
@@ -97,6 +116,12 @@ def evaluate_template_docker(file)
     erb.result()
   end
 
+  def assert_compose_file
+    assert_file ".devcontainer/compose.yaml" do |content|
+      yield YAML.load(content)
+    end
+  end
+
   private
     def gemfile_locals
       {