diff --git a/tests/diff_base/docker/.bashrc b/tests/diff_base/docker/.bashrc
index a91c4e83..28a04289 100644
--- a/tests/diff_base/docker/.bashrc
+++ b/tests/diff_base/docker/.bashrc
@@ -1,4 +1,13 @@
 {PLACEHOLDER_MULTILINE}
+# Setup paths in `~/.profile` to allow unified environment variable across login/non-login shells
+# set PATH so it includes user's private bin if it exists
+if [ -d "$HOME/bin" ] ; then
+    PATH="$HOME/bin:$PATH"
+fi
+# set PATH so it includes user's private bin if it exists
+if [ -d "$HOME/.local/bin" ] ; then
+    PATH="$HOME/.local/bin:$PATH"
+fi
 # Source global ROS2 environment
 source /opt/ros/$ROS_DISTRO/setup.bash
 # Optionally perform apt update if it has not been executed yet
@@ -10,13 +19,14 @@ fi
 if [ ! -d $HOME/.ros/rosdep/sources.cache ]; then
     echo "rosdep update has not been executed yet. Running rosdep update..."
     rosdep update
+    cd $ROS2_WS
+    # Ref: https://docs.ros.org/en/humble/Tutorials/Intermediate/Rosdep.html
+    rosdep install --from-paths src --ignore-src -y -r
 fi
 # Optionally build the workspace if it has not been built yet
 if [ ! -f $ROS2_WS/install/setup.bash ]; then
     echo "Workspace has not been built yet. Building workspace..."
     cd $ROS2_WS
-    # Ref: https://docs.ros.org/en/humble/Tutorials/Intermediate/Rosdep.html
-    rosdep install --from-paths src --ignore-src -y -r
     # TODO: If command `arch` outputs `aarch64`, consider adding `--packages-ignore <package>` to ignore x86 packages
     # Ref: https://docs.ros.org/en/humble/Tutorials/Beginner-Client-Libraries/Creating-Your-First-ROS2-Package.html
     if [ $(arch) == "aarch64" ]; then
@@ -26,7 +36,17 @@ if [ ! -f $ROS2_WS/install/setup.bash ]; then
     fi
     echo "Workspace built."
 fi
+# Source gazebo environment
+{PLACEHOLDER_MULTILINE}
+# Ref: https://classic.gazebosim.org/tutorials?tut=ros2_installing&cat=connect_ros#InstallGazebo
+if [ $(arch) == "x86_64" ]; then
+  source /usr/share/gazebo/setup.bash
+fi
 # TODO: Source other workspace environments as underlay
 {PLACEHOLDER_MULTILINE}
+# Agree Isaac Sim EULA
+# Ref: https://docs.omniverse.nvidia.com/isaacsim/latest/installation/install_python.html#running-isaac-sim
+export OMNI_KIT_ACCEPT_EULA=YES
 # Source workspace environment
 source $ROS2_WS/install/setup.bash
+echo "Successfully built workspace and configured environment variables."
diff --git a/tests/diff_base/docker/Dockerfile b/tests/diff_base/docker/Dockerfile
index 6c9c8594..a9242ee3 100644
--- a/tests/diff_base/docker/Dockerfile
+++ b/tests/diff_base/docker/Dockerfile
@@ -25,7 +25,7 @@ RUN rm -f /etc/apt/apt.conf.d/docker-clean; echo 'Binary::apt::APT::Keep-Downloa
 RUN --mount=type=cache,target=/var/cache/apt,sharing=private \
     apt-get update && apt-get upgrade -y \
     && rm -rf /var/lib/apt/lists/*
-{PLACEHOLDER_MULTILINE}
+
 # Install sudo and create a user with sudo privileges
 # Ref: https://stackoverflow.com/a/65434659
 RUN --mount=type=cache,target=/var/cache/apt,sharing=private \
@@ -57,12 +57,39 @@ RUN --mount=type=cache,target=/var/cache/apt,sharing=private \
     python3-pip \
     && rm -rf /var/lib/apt/lists/*
 
-# Install custom tools
+# Install GUI debugging tools
+# - `x11-apps` and `x11-utils` for `xeyes` and `xdpyinfo`
+#   Ref: https://packages.debian.org/sid/x11-apps
+#   Ref: https://packages.debian.org/sid/x11-utils
+# - `mesa-utils` for `glxgears` and `glxinfo`
+#   Ref: https://wiki.debian.org/Mesa
+# - `vulkan-tools` for `vkcube` and `vulkaninfo`
+#   Ref: https://docs.vulkan.org/tutorial/latest/02_Development_environment.html#_vulkan_packages
+#   Ref: https://gitlab.com/nvidia/container-images/vulkan/-/blob/master/docker/Dockerfile.ubuntu
 RUN --mount=type=cache,target=/var/cache/apt,sharing=private \
     apt-get update && apt-get install -y \
-    git-extras \
+    x11-apps x11-utils \
+    mesa-utils \
+    libgl1 vulkan-tools \
     && rm -rf /var/lib/apt/lists/*
 
+# Setup the required capabilities for the container runtime
+# Ref: https://docs.nvidia.com/datacenter/cloud-native/container-toolkit/latest/docker-specialized.html#driver-capabilities
+ENV NVIDIA_VISIBLE_DEVICES=all
+ENV NVIDIA_DRIVER_CAPABILITIES=all
+
+# Install Vulkan config files
+# Ref: https://gitlab.com/nvidia/container-images/vulkan
+RUN cat > /etc/vulkan/icd.d/nvidia_icd.json <<EOF
+{
+    "file_format_version" : "1.0.0",
+    "ICD": {
+        "library_path": "libGLX_nvidia.so.0",
+        "api_version" : "1.3.194"
+    }
+}
+EOF
+
 # Install ROS2 Gazebo packages for amd64
 RUN --mount=type=cache,target=/var/cache/apt,sharing=private \
     if [ "$TARGETARCH" = "amd64" ]; then \
@@ -78,17 +105,29 @@ RUN --mount=type=cache,target=/var/cache/apt,sharing=private \
     ros-$ROS_DISTRO-rviz2 \
     && rm -rf /var/lib/apt/lists/*
 
-# TODO: Add more commands here
-# For example, to install additional packages, uncomment the following lines and add the package names
-# RUN --mount=type=cache,target=/var/cache/apt,sharing=private \
-#     apt-get update && apt-get install -y \
-#     $OTHER_PACKAGES \
-#     && rm -rf /var/lib/apt/lists/*
-{PLACEHOLDER_MULTILINE}
 USER $USERNAME
+
 # Create Gazebo cache directory with correct ownership to avoid permission issues after volume mount
 RUN mkdir /home/$USERNAME/.gazebo
-# TODO: Run additional commands as non-root user here
+
+# Install Isaac Sim (requires Python 3.10)
+# Note that installing Isaac Sim with pip is experimental, keep this in mind when unexpected error occurs
+# TODO: Remove the note above when it is no longer experimental
+# Ref: https://docs.omniverse.nvidia.com/isaacsim/latest/installation/install_python.html#installation-using-pip
+RUN --mount=type=cache,target=/home/user/.cache/pip,sharing=private \
+    if [ "$TARGETARCH" = "amd64" ]; then \
+        python3 -V | grep "Python 3.10" \
+        && pip install isaacsim==4.1.0.0 --extra-index-url https://pypi.nvidia.com \
+        && pip install isaacsim-extscache-physics==4.1.0.0 isaacsim-extscache-kit==4.1.0.0 isaacsim-extscache-kit-sdk==4.1.0.0 --extra-index-url https://pypi.nvidia.com; \
+    fi
+
+# Install custom tools
+RUN --mount=type=cache,target=/var/cache/apt,sharing=private \
+    sudo apt-get update && sudo apt-get install -y \
+    git-extras \
+    && sudo rm -rf /var/lib/apt/lists/*
+
+# TODO: Add more commands here
 {PLACEHOLDER_MULTILINE}
 COPY .bashrc /home/$USERNAME/.bashrc
 # TODO: Copy additional files here
diff --git a/tests/diff_base/docker/compose.yaml b/tests/diff_base/docker/compose.yaml
index d18260d2..cf4cea07 100644
--- a/tests/diff_base/docker/compose.yaml
+++ b/tests/diff_base/docker/compose.yaml
@@ -1,5 +1,17 @@
 services:
+  volume-instantiation:
+    # Ref: https://github.com/moby/moby/issues/47842#issuecomment-2249050939
+    image: ubuntu:22.04
+    container_name: ros2-volume-instantiation
+    command: bash -c "
+        mkdir -p /isaac-sim/cache/{kit,ov,pip,glcache,computecache} &&
+        mkdir -p /isaac-sim/{logs,data,documents} &&
+        chown -R 1000:1000 /isaac-sim"
+    volumes:
+      - isaac-sim-cache:/isaac-sim
   {PLACEHOLDER}-ws:
+    depends_on:
+      - volume-instantiation
     build:
       context: .
       dockerfile: Dockerfile
@@ -62,6 +74,64 @@ services:
       # Reference: https://answers.ros.org/question/365658
       # Note that this volume is shared among all workspaces.
       - gazebo-cache:/home/user/.gazebo
+      # Mount Isaac Sim cache directories.
+      # Reference: https://docs.omniverse.nvidia.com/isaacsim/latest/installation/install_container.html#container-deployment
+      # Note that this volume is shared among all workspaces.
+      - type: volume
+        source: isaac-sim-cache
+        target: /isaac-sim/kit/cache
+        volume:
+          subpath: cache/kit
+      - type: volume
+        source: isaac-sim-cache
+        target: /home/user/.cache/ov
+        volume:
+          subpath: cache/ov
+      - type: volume
+        source: isaac-sim-cache
+        target: /home/user/.local/lib/python3.10/site-packages/omni/cache  # For Isaac Sim standalone
+        volume:
+          subpath: cache/ov
+      - type: volume
+        source: isaac-sim-cache
+        target: /home/user/.cache/pip
+        volume:
+          subpath: cache/pip
+      - type: volume
+        source: isaac-sim-cache
+        target: /home/user/.cache/nvidia/GLCache
+        volume:
+          subpath: cache/glcache
+      - type: volume
+        source: isaac-sim-cache
+        target: /home/user/.nv/ComputeCache
+        volume:
+          subpath: cache/computecache
+      - type: volume
+        source: isaac-sim-cache
+        target: /home/user/.nvidia-omniverse/logs
+        volume:
+          subpath: logs
+      - type: volume
+        source: isaac-sim-cache
+        target: /home/user/.local/lib/python3.10/site-packages/omni/logs  # For Isaac Sim standalone
+        volume:
+          subpath: logs
+      - type: volume
+        source: isaac-sim-cache
+        target: /home/user/.local/share/ov/data
+        volume:
+          subpath: data
+      - type: volume
+        source: isaac-sim-cache
+        target: /home/user/.local/lib/python3.10/site-packages/omni/data  # For Isaac Sim standalone
+        volume:
+          subpath: data
+      - type: volume
+        source: isaac-sim-cache
+        target: /home/user/Documents
+        volume:
+          subpath: documents
       # TODO: Add more volume mounts here.
 {PLACEHOLDER_MULTILINE}
       # Mount root workspace to allow easy access to all workspaces.
@@ -69,3 +139,5 @@ services:
 volumes:
   gazebo-cache:
     name: ros2-gazebo-cache
+  isaac-sim-cache:
+    name: ros2-isaac-sim-cache