diff --git a/docker/localnet/docker-compose.env b/docker/localnet/docker-compose.env
index c5d584c65..b156dc3f2 100644
--- a/docker/localnet/docker-compose.env
+++ b/docker/localnet/docker-compose.env
@@ -7,6 +7,6 @@
 CHEQD_NODE_IMAGE="ghcr.io/cheqd/cheqd-node"
 
 # Define cheqd-noded software release version
-# Current MAINNET recommended version: v0.5.0
-# Current TESTNET recommended version: v0.5.0
-DOCKER_IMAGE_VERSION="0.5.0"
+# Current MAINNET recommended version: v0.6.7
+# Current TESTNET recommended version: v0.6.7
+DOCKER_IMAGE_VERSION="0.6.7"
diff --git a/docker/localnet/docker-compose.yml b/docker/localnet/docker-compose.yml
index c422db392..4c243d8b0 100644
--- a/docker/localnet/docker-compose.yml
+++ b/docker/localnet/docker-compose.yml
@@ -144,6 +144,7 @@ services:
         published: 9491     # gRPC-Gateway port
       - target: 26660
         published: 27060    # Prometheus metrics port
+    entrypoint: [ "node-start" ]
     volumes:
       - type: volume
         source: seed-0-data
@@ -175,6 +176,7 @@ services:
         published: 9591     # gRPC-Gateway port
       - target: 26660
         published: 27160    # Prometheus metrics port
+    entrypoint: [ "node-start" ]
     volumes:
       - type: volume
         source: observer-0-data