diff --git a/.github/actions/publish-compose/action.yml b/.github/actions/publish-compose/action.yml
new file mode 100644
index 0000000000..89774c1715
--- /dev/null
+++ b/.github/actions/publish-compose/action.yml
@@ -0,0 +1,116 @@
+# Publishes a Compose model that uses local includes as one portable OCI
+# application. OCI Compose artifacts cannot contain local includes, so the
+# action flattens the model before applying the publication-only override while
+# leaving interpolation and project resource naming deferred to the consumer.
+name: "Publish Compose application"
+description: "Flatten local Compose includes and publish the resulting OCI application"
+
+inputs:
+  compose-file:
+    description: "Path to the root Compose file"
+    required: true
+  mode:
+    description: "Publication mode: dry-run or publish"
+    required: true
+  registry-prefix:
+    description: "Registry hostname and namespace, for example ghcr.io/0xmiden"
+    required: true
+  package:
+    description: "OCI package name"
+    required: true
+  tag:
+    description: "OCI package tag"
+    required: true
+  publish-override-file:
+    description: "Path to the portability override applied before publishing"
+    required: false
+    default: "compose/publish.yml"
+
+runs:
+  using: "composite"
+  steps:
+    - name: Validate inputs
+      shell: bash
+      env:
+        COMPOSE_FILE: ${{ inputs.compose-file }}
+        MODE: ${{ inputs.mode }}
+        PUBLISH_OVERRIDE_FILE: ${{ inputs.publish-override-file }}
+      run: |
+        set -euo pipefail
+
+        case "${MODE}" in
+          dry-run | publish) ;;
+          *)
+            echo "::error::Unsupported Compose publication mode: ${MODE}"
+            exit 1
+            ;;
+        esac
+
+        if [[ ! -f "${COMPOSE_FILE}" ]]; then
+          echo "::error::Compose file does not exist: ${COMPOSE_FILE}"
+          exit 1
+        fi
+
+        if [[ ! -f "${PUBLISH_OVERRIDE_FILE}" ]]; then
+          echo "::error::Compose publish override does not exist: ${PUBLISH_OVERRIDE_FILE}"
+          exit 1
+        fi
+
+    - name: Build publishable Compose model
+      shell: bash
+      env:
+        COMPOSE_FILE: ${{ inputs.compose-file }}
+        PUBLISH_OVERRIDE_FILE: ${{ inputs.publish-override-file }}
+      run: |
+        set -euo pipefail
+
+        docker compose \
+          -f "${COMPOSE_FILE}" \
+          --profile "*" \
+          config \
+          --no-interpolate \
+          --no-normalize \
+          --output "${RUNNER_TEMP}/compose.flattened.yml"
+        docker compose \
+          -f "${RUNNER_TEMP}/compose.flattened.yml" \
+          -f "${PUBLISH_OVERRIDE_FILE}" \
+          --profile "*" \
+          config \
+          --no-interpolate \
+          --no-normalize \
+          --output "${RUNNER_TEMP}/compose.publish.yml"
+
+    - name: Publish Compose application
+      shell: bash
+      env:
+        MODE: ${{ inputs.mode }}
+        PACKAGE: ${{ inputs.package }}
+        REGISTRY_PREFIX: ${{ inputs.registry-prefix }}
+        TAG: ${{ inputs.tag }}
+      run: |
+        set -euo pipefail
+
+        artifact_destination="${REGISTRY_PREFIX}/${PACKAGE}:${TAG}"
+
+        case "${MODE}" in
+          dry-run)
+            docker compose \
+              -f "${RUNNER_TEMP}/compose.publish.yml" \
+              --profile "*" \
+              publish \
+              --with-env \
+              --yes \
+              --dry-run \
+              "${artifact_destination}"
+            ;;
+          publish)
+            docker compose \
+              -f "${RUNNER_TEMP}/compose.publish.yml" \
+              --profile "*" \
+              publish \
+              --with-env \
+              --yes \
+              --resolve-image-digests \
+              "${artifact_destination}"
+            ;;
+        esac
diff --git a/.github/workflows/build-docker.yml b/.github/workflows/build-docker.yml
index 15ab218e54..2bafc35fe5 100644
--- a/.github/workflows/build-docker.yml
+++ b/.github/workflows/build-docker.yml
@@ -97,19 +97,16 @@ jobs:
           persist-credentials: false
 
       - name: Dry-run Compose publishing
+        uses: ./.github/actions/publish-compose
         env:
           MIDEN_NODE_IMAGE: ghcr.io/0xmiden/miden-node:dry-run
           MIDEN_VALIDATOR_IMAGE: ghcr.io/0xmiden/miden-validator:dry-run
           MIDEN_NTX_BUILDER_IMAGE: ghcr.io/0xmiden/miden-ntx-builder:dry-run
           MIDEN_REMOTE_PROVER_IMAGE: ghcr.io/0xmiden/miden-remote-prover:dry-run
           MIDEN_NETWORK_MONITOR_IMAGE: ghcr.io/0xmiden/miden-network-monitor:dry-run
-        run: |
-          docker compose \
-            -f docker-compose.yml \
-            -f compose/publish.yml \
-            --profile "*" \
-            publish \
-            --with-env \
-            --yes \
-            --dry-run \
-            ghcr.io/0xmiden/miden-local-network:dry-run
+        with:
+          compose-file: docker-compose.yml
+          mode: dry-run
+          package: miden-local-network
+          registry-prefix: ghcr.io/0xmiden
+          tag: dry-run
diff --git a/.github/workflows/release.yml b/.github/workflows/release.yml
index c6ebf432e3..e05f6bd757 100644
--- a/.github/workflows/release.yml
+++ b/.github/workflows/release.yml
@@ -314,24 +314,19 @@ jobs:
           persist-credentials: false
 
       - name: Dry-run Compose publishing
+        uses: ./.github/actions/publish-compose
         env:
-          COMPOSE_PACKAGE: ${{ env.REGISTRY }}/0xmiden/miden-local-network
           MIDEN_NODE_IMAGE: ${{ env.REGISTRY }}/0xmiden/miden-node:${{ needs.preflight.outputs.tag }}
           MIDEN_VALIDATOR_IMAGE: ${{ env.REGISTRY }}/0xmiden/miden-validator:${{ needs.preflight.outputs.tag }}
           MIDEN_NTX_BUILDER_IMAGE: ${{ env.REGISTRY }}/0xmiden/miden-ntx-builder:${{ needs.preflight.outputs.tag }}
           MIDEN_REMOTE_PROVER_IMAGE: ${{ env.REGISTRY }}/0xmiden/miden-remote-prover:${{ needs.preflight.outputs.tag }}
           MIDEN_NETWORK_MONITOR_IMAGE: ${{ env.REGISTRY }}/0xmiden/miden-network-monitor:${{ needs.preflight.outputs.tag }}
-          TAG: ${{ needs.preflight.outputs.tag }}
-        run: |
-          docker compose \
-            -f docker-compose.yml \
-            -f compose/publish.yml \
-            --profile "*" \
-            publish \
-            --with-env \
-            --yes \
-            --dry-run \
-            "${COMPOSE_PACKAGE}:${TAG}"
+        with:
+          compose-file: docker-compose.yml
+          mode: dry-run
+          package: miden-local-network
+          registry-prefix: ${{ env.REGISTRY }}/0xmiden
+          tag: ${{ needs.preflight.outputs.tag }}
 
   publish-docker:
     name: Publish Docker ${{ matrix.component }}
@@ -433,24 +428,19 @@ jobs:
           password: ${{ secrets.GITHUB_TOKEN }}
 
       - name: Publish Compose application
+        uses: ./.github/actions/publish-compose
         env:
-          COMPOSE_PACKAGE: ${{ env.REGISTRY }}/0xmiden/miden-local-network
           MIDEN_NODE_IMAGE: ${{ env.REGISTRY }}/0xmiden/miden-node:${{ needs.preflight.outputs.tag }}
           MIDEN_VALIDATOR_IMAGE: ${{ env.REGISTRY }}/0xmiden/miden-validator:${{ needs.preflight.outputs.tag }}
           MIDEN_NTX_BUILDER_IMAGE: ${{ env.REGISTRY }}/0xmiden/miden-ntx-builder:${{ needs.preflight.outputs.tag }}
           MIDEN_REMOTE_PROVER_IMAGE: ${{ env.REGISTRY }}/0xmiden/miden-remote-prover:${{ needs.preflight.outputs.tag }}
           MIDEN_NETWORK_MONITOR_IMAGE: ${{ env.REGISTRY }}/0xmiden/miden-network-monitor:${{ needs.preflight.outputs.tag }}
-          TAG: ${{ needs.preflight.outputs.tag }}
-        run: |
-          docker compose \
-            -f docker-compose.yml \
-            -f compose/publish.yml \
-            --profile "*" \
-            publish \
-            --with-env \
-            --yes \
-            --resolve-image-digests \
-            "${COMPOSE_PACKAGE}:${TAG}"
+        with:
+          compose-file: docker-compose.yml
+          mode: publish
+          package: miden-local-network
+          registry-prefix: ${{ env.REGISTRY }}/0xmiden
+          tag: ${{ needs.preflight.outputs.tag }}
 
   publish-github-release:
     name: Publish GitHub release
diff --git a/compose/bootstrap.yml b/compose/bootstrap.yml
new file mode 100644
index 0000000000..c1b543335d
--- /dev/null
+++ b/compose/bootstrap.yml
@@ -0,0 +1,103 @@
+services:
+  bootstrap-validator:
+    image: ${MIDEN_VALIDATOR_IMAGE:-miden-validator}
+    pull_policy: missing
+    volumes:
+      - node-data:/data
+      - type: bind
+        source: ${MIDEN_GENESIS_CONFIG_FILE:-./genesis/dummy.toml}
+        target: /genesis.toml
+        read_only: true
+    environment:
+      MIDEN_NODE_VALIDATOR_USE_GENESIS_CONFIG: ${MIDEN_GENESIS_CONFIG_FILE:-}
+    entrypoint: ["/bin/sh", "-c"]
+    command:
+      - |
+        set -e
+        if [ -f /data/validator/.bootstrapped ]; then
+          echo "Validator already bootstrapped."
+          exit 0
+        fi
+
+        echo "Cleaning incomplete validator bootstrap state..."
+        rm -rf /data/genesis /data/validator /data/accounts
+        mkdir -p /data/genesis /data/validator /data/accounts
+
+        GENESIS_CONFIG_ARGS=""
+        if [ -n "$${MIDEN_NODE_VALIDATOR_USE_GENESIS_CONFIG:-}" ]; then
+          if [ ! -f /genesis.toml ]; then
+            echo "Genesis config requested but /genesis.toml is not mounted."
+            exit 1
+          fi
+
+          GENESIS_CONFIG_ARGS="--config /genesis.toml"
+        fi
+
+        echo "Building genesis block..."
+        miden-validator genesis \
+          --genesis-block-directory /data/genesis \
+          --accounts-directory /data/accounts \
+          $$GENESIS_CONFIG_ARGS
+
+        echo "Bootstrapping validator..."
+        miden-validator bootstrap \
+          --data-directory /data/validator \
+          --genesis /data/genesis/genesis.dat
+
+        touch /data/validator/.bootstrapped
+
+  bootstrap-node:
+    image: ${MIDEN_NODE_IMAGE:-miden-node}
+    pull_policy: missing
+    volumes:
+      - node-data:/data
+    entrypoint: ["/bin/sh", "-c"]
+    depends_on:
+      bootstrap-validator:
+        condition: service_completed_successfully
+    command:
+      - |
+        set -e
+        if [ -f /data/node/.bootstrapped ]; then
+          echo "Node already bootstrapped."
+          exit 0
+        fi
+
+        echo "Cleaning incomplete node bootstrap state..."
+        rm -rf /data/node
+        mkdir -p /data/node
+
+        echo "Bootstrapping node..."
+        miden-node bootstrap \
+          --data-directory /data/node \
+          --genesis /data/genesis/genesis.dat
+
+        touch /data/node/.bootstrapped
+
+  bootstrap-ntx-builder:
+    image: ${MIDEN_NTX_BUILDER_IMAGE:-miden-ntx-builder}
+    pull_policy: missing
+    volumes:
+      - node-data:/data
+    entrypoint: ["/bin/sh", "-c"]
+    depends_on:
+      bootstrap-node:
+        condition: service_completed_successfully
+    command:
+      - |
+        set -e
+        if [ -f /data/ntx-builder/.bootstrapped ]; then
+          echo "Network transaction builder already bootstrapped."
+          exit 0
+        fi
+
+        echo "Cleaning incomplete network transaction builder bootstrap state..."
+        rm -rf /data/ntx-builder
+        mkdir -p /data/ntx-builder
+
+        echo "Bootstrapping network transaction builder..."
+        miden-ntx-builder bootstrap \
+          --data-directory /data/ntx-builder \
+          --genesis /data/genesis/genesis.dat
+
+        touch /data/ntx-builder/.bootstrapped
diff --git a/compose/monitor.yml b/compose/monitor.yml
new file mode 100644
index 0000000000..23465b564d
--- /dev/null
+++ b/compose/monitor.yml
@@ -0,0 +1,20 @@
+services:
+  monitor:
+    profiles: [monitor]
+    image: ${MIDEN_NETWORK_MONITOR_IMAGE:-miden-network-monitor}
+    pull_policy: missing
+    depends_on:
+      otel-collector:
+        condition: service_started
+      sequencer:
+        condition: service_started
+    command:
+      - miden-network-monitor
+      - start
+    environment:
+      MIDEN_MONITOR_RPC_URL: http://sequencer:57291
+      MIDEN_MONITOR_PORT: "3001"
+      MIDEN_MONITOR_NETWORK_NAME: Localhost
+      OTEL_EXPORTER_OTLP_ENDPOINT: http://otel-collector:4317
+    ports:
+      - "127.0.0.1:3001:3001"
diff --git a/compose/node.yml b/compose/node.yml
new file mode 100644
index 0000000000..866b92cab2
--- /dev/null
+++ b/compose/node.yml
@@ -0,0 +1,26 @@
+services:
+  sequencer:
+    image: ${MIDEN_NODE_IMAGE:-miden-node}
+    pull_policy: missing
+    volumes:
+      - node-data:/data
+    depends_on:
+      bootstrap-node:
+        condition: service_completed_successfully
+      otel-collector:
+        condition: service_started
+      validator:
+        condition: service_started
+    command:
+      - miden-node
+      - sequencer
+      - --rpc.listen=0.0.0.0:57291
+      - --data-directory=/data/node
+      - --validator.url=http://validator:50101
+      - --ntx-builder.url=http://ntx-builder:50301
+      - --rpc.network-tx-auth-header-value=secret_value
+    environment:
+      OTEL_EXPORTER_OTLP_ENDPOINT: http://otel-collector:4317
+      OTEL_RESOURCE_ATTRIBUTES: service.instance.id=sequencer
+    ports:
+      - "127.0.0.1:57291:57291"
diff --git a/compose/ntx-builder.yml b/compose/ntx-builder.yml
new file mode 100644
index 0000000000..a1ebc2290b
--- /dev/null
+++ b/compose/ntx-builder.yml
@@ -0,0 +1,25 @@
+services:
+  ntx-builder:
+    image: ${MIDEN_NTX_BUILDER_IMAGE:-miden-ntx-builder}
+    pull_policy: missing
+    volumes:
+      - node-data:/data
+    depends_on:
+      bootstrap-ntx-builder:
+        condition: service_completed_successfully
+      otel-collector:
+        condition: service_started
+      sequencer:
+        condition: service_started
+      tx-prover:
+        condition: service_started
+    command:
+      - miden-ntx-builder
+      - start
+      - --listen=0.0.0.0:50301
+      - --rpc.url=http://sequencer:57291
+      - --rpc.auth-header-value=secret_value
+      - --tx-prover.url=${MIDEN_REMOTE_PROVER_URL:-http://tx-prover:50051}
+      - --data-directory=/data/ntx-builder
+    environment:
+      OTEL_EXPORTER_OTLP_ENDPOINT: http://otel-collector:4317
diff --git a/compose/otel-collector.yml b/compose/otel-collector.yml
new file mode 100644
index 0000000000..af1d9f905c
--- /dev/null
+++ b/compose/otel-collector.yml
@@ -0,0 +1,85 @@
+services:
+  otel-collector:
+    image: otel/opentelemetry-collector-contrib:0.157.0
+    configs:
+      - source: otel-collector
+        target: /etc/otelcol-contrib/config.yaml
+    command: ["--config=/etc/otelcol-contrib/config.yaml"]
+
+configs:
+  otel-collector:
+    content: |
+      receivers:
+        # Miden services always send traces to this stable in-stack endpoint.
+        otlp:
+          protocols:
+            grpc:
+              endpoint: 0.0.0.0:4317
+        # An unset caller endpoint loops back through this sink receiver. This
+        # gives the upstream exporter a valid, quiet default destination.
+        otlp/null:
+          protocols:
+            grpc:
+              endpoint: 127.0.0.1:14317
+
+      processors:
+        batch:
+
+      exporters:
+        otlp_grpc/tempo:
+          endpoint: tempo:4317
+          tls:
+            insecure: true
+          retry_on_failure:
+            enabled: false
+          sending_queue:
+            enabled: false
+        otlp_grpc/upstream:
+          endpoint: ${OTEL_EXPORTER_OTLP_ENDPOINT:-127.0.0.1:14317}
+          tls:
+            insecure: true
+          retry_on_failure:
+            enabled: false
+          sending_queue:
+            enabled: false
+        file/null:
+          path: /dev/null
+
+      connectors:
+        # Each destination fails over independently. Unavailable destinations
+        # drop traces through file/null and are retried every five seconds.
+        failover/tempo:
+          priority_levels:
+            - [traces/tempo]
+            - [traces/null-tempo]
+          retry_interval: 5s
+        failover/upstream:
+          priority_levels:
+            - [traces/upstream]
+            - [traces/null-upstream]
+          retry_interval: 5s
+
+      service:
+        pipelines:
+          traces:
+            receivers: [otlp]
+            processors: [batch]
+            exporters: [failover/tempo, failover/upstream]
+          traces/tempo:
+            receivers: [failover/tempo]
+            exporters: [otlp_grpc/tempo]
+          traces/null-tempo:
+            receivers: [failover/tempo]
+            exporters: [file/null]
+          traces/upstream:
+            receivers: [failover/upstream]
+            exporters: [otlp_grpc/upstream]
+          traces/null-upstream:
+            receivers: [failover/upstream]
+            exporters: [file/null]
+          traces/local-null:
+            receivers: [otlp/null]
+            exporters: [file/null]
+        telemetry:
+          logs:
+            level: error
diff --git a/compose/telemetry.yml b/compose/telemetry.yml
new file mode 100644
index 0000000000..d633f9c5ef
--- /dev/null
+++ b/compose/telemetry.yml
@@ -0,0 +1,220 @@
+services:
+  tempo:
+    profiles: [telemetry]
+    image: grafana/tempo:2.10.4
+    configs:
+      - source: tempo
+        target: /etc/tempo.yaml
+    command: ["-config.file=/etc/tempo.yaml"]
+    ports:
+      - "127.0.0.1:3200:3200"
+      - "127.0.0.1:4317:4317"
+
+  grafana:
+    profiles: [telemetry]
+    image: grafana/grafana:12.4
+    configs:
+      - source: grafana-datasources
+        target: /etc/grafana/provisioning/datasources/datasources.yaml
+      - source: grafana-dashboards
+        target: /etc/grafana/provisioning/dashboards/dashboards.yaml
+      - source: grafana-miden-node-dashboard
+        target: /var/lib/grafana/dashboards/miden-node.json
+    environment:
+      GF_AUTH_ANONYMOUS_ENABLED: "true"
+      GF_AUTH_ANONYMOUS_ORG_ROLE: Admin
+      GF_DASHBOARDS_DEFAULT_HOME_DASHBOARD_PATH: /var/lib/grafana/dashboards/miden-node.json
+    ports:
+      - "127.0.0.1:3000:3000"
+    depends_on:
+      - tempo
+
+configs:
+  tempo:
+    content: |
+      stream_over_http_enabled: true
+
+      server:
+        http_listen_port: 3200
+
+      distributor:
+        receivers:
+          otlp:
+            protocols:
+              grpc:
+                endpoint: "0.0.0.0:4317"
+
+      storage:
+        trace:
+          backend: local
+          local:
+            path: /var/tempo/traces
+          wal:
+            path: /var/tempo/wal
+
+      metrics_generator:
+        registry:
+          external_labels:
+            source: tempo
+        storage:
+          path: /var/tempo/metrics/wal
+        traces_storage:
+          path: /var/tempo/metrics/traces
+
+      overrides:
+        metrics_generator_processors: [service-graphs, span-metrics, local-blocks] # enables metrics generator
+
+  grafana-datasources:
+    content: |
+      apiVersion: 1
+
+      datasources:
+        - name: Tempo
+          type: tempo
+          access: proxy
+          url: http://tempo:3200
+          isDefault: true
+          version: 1
+          editable: false
+          uid: tempo
+
+  grafana-dashboards:
+    content: |
+      apiVersion: 1
+
+      providers:
+        - name: default
+          orgId: 1
+          folder: ''
+          type: file
+          disableDeletion: false
+          editable: true
+          options:
+            path: /var/lib/grafana/dashboards
+            foldersFromFilesStructure: false
+
+  grafana-miden-node-dashboard:
+    content: |
+      {
+        "annotations": {
+          "list": []
+        },
+        "editable": true,
+        "fiscalYearStartMonth": 0,
+        "graphTooltip": 0,
+        "links": [],
+        "panels": [
+          {
+            "datasource": {
+              "type": "tempo",
+              "uid": "tempo"
+            },
+            "fieldConfig": {
+              "defaults": {},
+              "overrides": []
+            },
+            "gridPos": {
+              "h": 10,
+              "w": 24,
+              "x": 0,
+              "y": 0
+            },
+            "id": 1,
+            "targets": [
+              {
+                "datasource": {
+                  "type": "tempo",
+                  "uid": "tempo"
+                },
+                "queryType": "traceqlSearch",
+                "limit": 20,
+                "tableType": "traces",
+                "filters": [
+                  {
+                    "id": "service-name",
+                    "tag": "service.name",
+                    "operator": "=",
+                    "scope": "resource"
+                  }
+                ]
+              }
+            ],
+            "title": "Recent Traces",
+            "type": "table"
+          },
+          {
+            "datasource": {
+              "type": "tempo",
+              "uid": "tempo"
+            },
+            "fieldConfig": {
+              "defaults": {},
+              "overrides": []
+            },
+            "gridPos": {
+              "h": 10,
+              "w": 24,
+              "x": 0,
+              "y": 10
+            },
+            "id": 2,
+            "targets": [
+              {
+                "datasource": {
+                  "type": "tempo",
+                  "uid": "tempo"
+                },
+                "queryType": "traceql",
+                "query": "{name =~ \"block_builder.*\"}",
+                "limit": 20,
+                "tableType": "traces"
+              }
+            ],
+            "title": "Block Building Traces",
+            "type": "table"
+          },
+          {
+            "datasource": {
+              "type": "tempo",
+              "uid": "tempo"
+            },
+            "fieldConfig": {
+              "defaults": {},
+              "overrides": []
+            },
+            "gridPos": {
+              "h": 10,
+              "w": 24,
+              "x": 0,
+              "y": 20
+            },
+            "id": 3,
+            "targets": [
+              {
+                "datasource": {
+                  "type": "tempo",
+                  "uid": "tempo"
+                },
+                "queryType": "traceql",
+                "query": "{name =~ \"batch_builder.*\"}",
+                "limit": 20,
+                "tableType": "traces"
+              }
+            ],
+            "title": "Batch Building Traces",
+            "type": "table"
+          }
+        ],
+        "schemaVersion": 39,
+        "tags": ["miden"],
+        "templating": {
+          "list": []
+        },
+        "time": {
+          "from": "now-30m",
+          "to": "now"
+        },
+        "title": "Miden Node",
+        "uid": "miden-node",
+        "version": 2
+      }
diff --git a/compose/tx-prover.yml b/compose/tx-prover.yml
new file mode 100644
index 0000000000..ee1dc8fc26
--- /dev/null
+++ b/compose/tx-prover.yml
@@ -0,0 +1,13 @@
+services:
+  tx-prover:
+    image: ${MIDEN_REMOTE_PROVER_IMAGE:-miden-remote-prover}
+    pull_policy: missing
+    depends_on:
+      otel-collector:
+        condition: service_started
+    command:
+      - miden-remote-prover
+      - --kind=transaction
+      - --port=50051
+    environment:
+      OTEL_EXPORTER_OTLP_ENDPOINT: http://otel-collector:4317
diff --git a/compose/validator.yml b/compose/validator.yml
new file mode 100644
index 0000000000..68d2716985
--- /dev/null
+++ b/compose/validator.yml
@@ -0,0 +1,18 @@
+services:
+  validator:
+    image: ${MIDEN_VALIDATOR_IMAGE:-miden-validator}
+    pull_policy: missing
+    volumes:
+      - node-data:/data
+    depends_on:
+      bootstrap-validator:
+        condition: service_completed_successfully
+      otel-collector:
+        condition: service_started
+    command:
+      - miden-validator
+      - start
+      - --listen=0.0.0.0:50101
+      - --data-directory=/data/validator
+    environment:
+      OTEL_EXPORTER_OTLP_ENDPOINT: http://otel-collector:4317
diff --git a/docker-compose.yml b/docker-compose.yml
index b1b5860ec1..0ae61c374f 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -13,515 +13,17 @@
 #   are always sent to the bundled collector, which forwards them to this
 #   endpoint and to Tempo when the telemetry profile is enabled.
 
-services:
-  bootstrap-validator:
-    image: ${MIDEN_VALIDATOR_IMAGE:-miden-validator}
-    pull_policy: if_not_present
-    volumes:
-      - node-data:/data
-      - type: bind
-        source: ${MIDEN_GENESIS_CONFIG_FILE:-./compose/genesis/dummy.toml}
-        target: /genesis.toml
-        read_only: true
-    environment:
-      MIDEN_NODE_VALIDATOR_USE_GENESIS_CONFIG: ${MIDEN_GENESIS_CONFIG_FILE:-}
-    entrypoint: ["/bin/sh", "-c"]
-    command:
-      - |
-        set -e
-        if [ -f /data/validator/.bootstrapped ]; then
-          echo "Validator already bootstrapped."
-          exit 0
-        fi
-
-        echo "Cleaning incomplete validator bootstrap state..."
-        rm -rf /data/genesis /data/validator /data/accounts
-        mkdir -p /data/genesis /data/validator /data/accounts
-
-        GENESIS_CONFIG_ARGS=""
-        if [ -n "$${MIDEN_NODE_VALIDATOR_USE_GENESIS_CONFIG:-}" ]; then
-          if [ ! -f /genesis.toml ]; then
-            echo "Genesis config requested but /genesis.toml is not mounted."
-            exit 1
-          fi
-
-          GENESIS_CONFIG_ARGS="--config /genesis.toml"
-        fi
-
-        echo "Building genesis block..."
-        miden-validator genesis \
-          --genesis-block-directory /data/genesis \
-          --accounts-directory /data/accounts \
-          $$GENESIS_CONFIG_ARGS
-
-        echo "Bootstrapping validator..."
-        miden-validator bootstrap \
-          --data-directory /data/validator \
-          --genesis /data/genesis/genesis.dat
-
-        touch /data/validator/.bootstrapped
-
-  bootstrap-node:
-    image: ${MIDEN_NODE_IMAGE:-miden-node}
-    pull_policy: if_not_present
-    volumes:
-      - node-data:/data
-    entrypoint: ["/bin/sh", "-c"]
-    depends_on:
-      bootstrap-validator:
-        condition: service_completed_successfully
-    command:
-      - |
-        set -e
-        if [ -f /data/node/.bootstrapped ]; then
-          echo "Node already bootstrapped."
-          exit 0
-        fi
-
-        echo "Cleaning incomplete node bootstrap state..."
-        rm -rf /data/node
-        mkdir -p /data/node
-
-        echo "Bootstrapping node..."
-        miden-node bootstrap \
-          --data-directory /data/node \
-          --genesis /data/genesis/genesis.dat
-
-        touch /data/node/.bootstrapped
-
-  bootstrap-ntx-builder:
-    image: ${MIDEN_NTX_BUILDER_IMAGE:-miden-ntx-builder}
-    pull_policy: if_not_present
-    volumes:
-      - node-data:/data
-    entrypoint: ["/bin/sh", "-c"]
-    depends_on:
-      bootstrap-node:
-        condition: service_completed_successfully
-    command:
-      - |
-        set -e
-        if [ -f /data/ntx-builder/.bootstrapped ]; then
-          echo "Network transaction builder already bootstrapped."
-          exit 0
-        fi
-
-        echo "Cleaning incomplete network transaction builder bootstrap state..."
-        rm -rf /data/ntx-builder
-        mkdir -p /data/ntx-builder
-
-        echo "Bootstrapping network transaction builder..."
-        miden-ntx-builder bootstrap \
-          --data-directory /data/ntx-builder \
-          --genesis /data/genesis/genesis.dat
-
-        touch /data/ntx-builder/.bootstrapped
-
-  sequencer:
-    image: ${MIDEN_NODE_IMAGE:-miden-node}
-    pull_policy: if_not_present
-    volumes:
-      - node-data:/data
-    depends_on:
-      bootstrap-node:
-        condition: service_completed_successfully
-      otel-collector:
-        condition: service_started
-      validator:
-        condition: service_started
-    command:
-      - miden-node
-      - sequencer
-      - --rpc.listen=0.0.0.0:57291
-      - --data-directory=/data/node
-      - --validator.url=http://validator:50101
-      - --ntx-builder.url=http://ntx-builder:50301
-      - --rpc.network-tx-auth-header-value=secret_value
-    environment:
-      OTEL_EXPORTER_OTLP_ENDPOINT: http://otel-collector:4317
-      OTEL_RESOURCE_ATTRIBUTES: service.instance.id=sequencer
-    ports:
-      - "127.0.0.1:57291:57291"
-
-  validator:
-    image: ${MIDEN_VALIDATOR_IMAGE:-miden-validator}
-    pull_policy: if_not_present
-    volumes:
-      - node-data:/data
-    depends_on:
-      bootstrap-validator:
-        condition: service_completed_successfully
-      otel-collector:
-        condition: service_started
-    command:
-      - miden-validator
-      - start
-      - --listen=0.0.0.0:50101
-      - --data-directory=/data/validator
-    environment:
-      OTEL_EXPORTER_OTLP_ENDPOINT: http://otel-collector:4317
-
-  tx-prover:
-    image: ${MIDEN_REMOTE_PROVER_IMAGE:-miden-remote-prover}
-    pull_policy: if_not_present
-    depends_on:
-      otel-collector:
-        condition: service_started
-    command:
-      - miden-remote-prover
-      - --kind=transaction
-      - --port=50051
-    environment:
-      OTEL_EXPORTER_OTLP_ENDPOINT: http://otel-collector:4317
-
-  ntx-builder:
-    image: ${MIDEN_NTX_BUILDER_IMAGE:-miden-ntx-builder}
-    pull_policy: if_not_present
-    volumes:
-      - node-data:/data
-    depends_on:
-      bootstrap-ntx-builder:
-        condition: service_completed_successfully
-      otel-collector:
-        condition: service_started
-      sequencer:
-        condition: service_started
-      tx-prover:
-        condition: service_started
-    command:
-      - miden-ntx-builder
-      - start
-      - --listen=0.0.0.0:50301
-      - --rpc.url=http://sequencer:57291
-      - --rpc.auth-header-value=secret_value
-      - --tx-prover.url=${MIDEN_REMOTE_PROVER_URL:-http://tx-prover:50051}
-      - --data-directory=/data/ntx-builder
-    environment:
-      OTEL_EXPORTER_OTLP_ENDPOINT: http://otel-collector:4317
-
-  otel-collector:
-    image: otel/opentelemetry-collector-contrib:0.157.0
-    configs:
-      - source: otel-collector
-        target: /etc/otelcol-contrib/config.yaml
-    command: ["--config=/etc/otelcol-contrib/config.yaml"]
-
-  tempo:
-    profiles: [telemetry]
-    image: grafana/tempo:2.10.4
-    configs:
-      - source: tempo
-        target: /etc/tempo.yaml
-    command: ["-config.file=/etc/tempo.yaml"]
-    ports:
-      - "127.0.0.1:3200:3200"
-      - "127.0.0.1:4317:4317"
-
-  grafana:
-    profiles: [telemetry]
-    image: grafana/grafana:12.4
-    configs:
-      - source: grafana-datasources
-        target: /etc/grafana/provisioning/datasources/datasources.yaml
-      - source: grafana-dashboards
-        target: /etc/grafana/provisioning/dashboards/dashboards.yaml
-      - source: grafana-miden-node-dashboard
-        target: /var/lib/grafana/dashboards/miden-node.json
-    environment:
-      GF_AUTH_ANONYMOUS_ENABLED: "true"
-      GF_AUTH_ANONYMOUS_ORG_ROLE: Admin
-      GF_DASHBOARDS_DEFAULT_HOME_DASHBOARD_PATH: /var/lib/grafana/dashboards/miden-node.json
-    ports:
-      - "127.0.0.1:3000:3000"
-    depends_on:
-      - tempo
-
-  monitor:
-    profiles: [monitor]
-    image: ${MIDEN_NETWORK_MONITOR_IMAGE:-miden-network-monitor}
-    pull_policy: if_not_present
-    depends_on:
-      otel-collector:
-        condition: service_started
-      sequencer:
-        condition: service_started
-    command:
-      - miden-network-monitor
-      - start
-    environment:
-      MIDEN_MONITOR_RPC_URL: http://sequencer:57291
-      MIDEN_MONITOR_PORT: "3001"
-      MIDEN_MONITOR_NETWORK_NAME: Localhost
-      OTEL_EXPORTER_OTLP_ENDPOINT: http://otel-collector:4317
-    ports:
-      - "127.0.0.1:3001:3001"
+# Keep the complete local application discoverable from the root so direct
+# `docker compose` commands and profiles do not require additional `-f` flags.
+include:
+  - compose/bootstrap.yml
+  - compose/validator.yml
+  - compose/node.yml
+  - compose/ntx-builder.yml
+  - compose/tx-prover.yml
+  - compose/otel-collector.yml
+  - compose/telemetry.yml
+  - compose/monitor.yml
 
 volumes:
   node-data:
-
-configs:
-  otel-collector:
-    content: |
-      receivers:
-        # Miden services always send traces to this stable in-stack endpoint.
-        otlp:
-          protocols:
-            grpc:
-              endpoint: 0.0.0.0:4317
-        # An unset caller endpoint loops back through this sink receiver. This
-        # gives the upstream exporter a valid, quiet default destination.
-        otlp/null:
-          protocols:
-            grpc:
-              endpoint: 127.0.0.1:14317
-
-      processors:
-        batch:
-
-      exporters:
-        otlp_grpc/tempo:
-          endpoint: tempo:4317
-          tls:
-            insecure: true
-          retry_on_failure:
-            enabled: false
-          sending_queue:
-            enabled: false
-        otlp_grpc/upstream:
-          endpoint: ${OTEL_EXPORTER_OTLP_ENDPOINT:-127.0.0.1:14317}
-          tls:
-            insecure: true
-          retry_on_failure:
-            enabled: false
-          sending_queue:
-            enabled: false
-        file/null:
-          path: /dev/null
-
-      connectors:
-        # Each destination fails over independently. Unavailable destinations
-        # drop traces through file/null and are retried every five seconds.
-        failover/tempo:
-          priority_levels:
-            - [traces/tempo]
-            - [traces/null-tempo]
-          retry_interval: 5s
-        failover/upstream:
-          priority_levels:
-            - [traces/upstream]
-            - [traces/null-upstream]
-          retry_interval: 5s
-
-      service:
-        pipelines:
-          traces:
-            receivers: [otlp]
-            processors: [batch]
-            exporters: [failover/tempo, failover/upstream]
-          traces/tempo:
-            receivers: [failover/tempo]
-            exporters: [otlp_grpc/tempo]
-          traces/null-tempo:
-            receivers: [failover/tempo]
-            exporters: [file/null]
-          traces/upstream:
-            receivers: [failover/upstream]
-            exporters: [otlp_grpc/upstream]
-          traces/null-upstream:
-            receivers: [failover/upstream]
-            exporters: [file/null]
-          traces/local-null:
-            receivers: [otlp/null]
-            exporters: [file/null]
-        telemetry:
-          logs:
-            level: error
-
-  tempo:
-    content: |
-      stream_over_http_enabled: true
-
-      server:
-        http_listen_port: 3200
-
-      distributor:
-        receivers:
-          otlp:
-            protocols:
-              grpc:
-                endpoint: "0.0.0.0:4317"
-
-      storage:
-        trace:
-          backend: local
-          local:
-            path: /var/tempo/traces
-          wal:
-            path: /var/tempo/wal
-
-      metrics_generator:
-        registry:
-          external_labels:
-            source: tempo
-        storage:
-          path: /var/tempo/metrics/wal
-        traces_storage:
-          path: /var/tempo/metrics/traces
-
-      overrides:
-        metrics_generator_processors: [service-graphs, span-metrics, local-blocks] # enables metrics generator
-
-  grafana-datasources:
-    content: |
-      apiVersion: 1
-
-      datasources:
-        - name: Tempo
-          type: tempo
-          access: proxy
-          url: http://tempo:3200
-          isDefault: true
-          version: 1
-          editable: false
-          uid: tempo
-
-  grafana-dashboards:
-    content: |
-      apiVersion: 1
-
-      providers:
-        - name: default
-          orgId: 1
-          folder: ''
-          type: file
-          disableDeletion: false
-          editable: true
-          options:
-            path: /var/lib/grafana/dashboards
-            foldersFromFilesStructure: false
-
-  grafana-miden-node-dashboard:
-    content: |
-      {
-        "annotations": {
-          "list": []
-        },
-        "editable": true,
-        "fiscalYearStartMonth": 0,
-        "graphTooltip": 0,
-        "links": [],
-        "panels": [
-          {
-            "datasource": {
-              "type": "tempo",
-              "uid": "tempo"
-            },
-            "fieldConfig": {
-              "defaults": {},
-              "overrides": []
-            },
-            "gridPos": {
-              "h": 10,
-              "w": 24,
-              "x": 0,
-              "y": 0
-            },
-            "id": 1,
-            "targets": [
-              {
-                "datasource": {
-                  "type": "tempo",
-                  "uid": "tempo"
-                },
-                "queryType": "traceqlSearch",
-                "limit": 20,
-                "tableType": "traces",
-                "filters": [
-                  {
-                    "id": "service-name",
-                    "tag": "service.name",
-                    "operator": "=",
-                    "scope": "resource"
-                  }
-                ]
-              }
-            ],
-            "title": "Recent Traces",
-            "type": "table"
-          },
-          {
-            "datasource": {
-              "type": "tempo",
-              "uid": "tempo"
-            },
-            "fieldConfig": {
-              "defaults": {},
-              "overrides": []
-            },
-            "gridPos": {
-              "h": 10,
-              "w": 24,
-              "x": 0,
-              "y": 10
-            },
-            "id": 2,
-            "targets": [
-              {
-                "datasource": {
-                  "type": "tempo",
-                  "uid": "tempo"
-                },
-                "queryType": "traceql",
-                "query": "{name =~ \"block_builder.*\"}",
-                "limit": 20,
-                "tableType": "traces"
-              }
-            ],
-            "title": "Block Building Traces",
-            "type": "table"
-          },
-          {
-            "datasource": {
-              "type": "tempo",
-              "uid": "tempo"
-            },
-            "fieldConfig": {
-              "defaults": {},
-              "overrides": []
-            },
-            "gridPos": {
-              "h": 10,
-              "w": 24,
-              "x": 0,
-              "y": 20
-            },
-            "id": 3,
-            "targets": [
-              {
-                "datasource": {
-                  "type": "tempo",
-                  "uid": "tempo"
-                },
-                "queryType": "traceql",
-                "query": "{name =~ \"batch_builder.*\"}",
-                "limit": 20,
-                "tableType": "traces"
-              }
-            ],
-            "title": "Batch Building Traces",
-            "type": "table"
-          }
-        ],
-        "schemaVersion": 39,
-        "tags": ["miden"],
-        "templating": {
-          "list": []
-        },
-        "time": {
-          "from": "now-30m",
-          "to": "now"
-        },
-        "title": "Miden Node",
-        "uid": "miden-node",
-        "version": 2
-      }
diff --git a/docs/internal/src/releases.md b/docs/internal/src/releases.md
index f398133c29..ee83c463fe 100644
--- a/docs/internal/src/releases.md
+++ b/docs/internal/src/releases.md
@@ -28,9 +28,14 @@ delete release tags.
 4. After those checks pass, the workflow creates the GitHub release and release notes, then starts the crates.io and
    Debian publishing workflows.
 
-The Compose publication jobs merge `docker-compose.yml` with `compose/publish.yml`. The main model supports custom
-genesis configuration through a local bind mount, which cannot be included in a portable OCI artifact.
-`compose/publish.yml` uses Compose's `!override` tag to replace that volume list and configures the published
+The root `docker-compose.yml` includes the component models under `compose/`, keeping direct local Compose commands and
+profiles independent of additional `-f` arguments. Local includes cannot be published directly, so the
+`.github/actions/publish-compose` action first renders the complete, all-profile model without interpolating its
+variables or normalizing project resource names. It then merges `compose/publish.yml` into that flattened model using
+the same options and either dry-runs or performs the publication.
+
+The local model supports custom genesis configuration through a bind mount, which cannot be included in a portable OCI
+artifact. `compose/publish.yml` uses Compose's `!override` tag to replace that volume list and configures the published
 application to use the validator's built-in genesis configuration.
 
 The workflow uses a broad `v*` trigger because GitHub Actions does not use the same pattern language as repository