diff --git a/docs/developing-locally.rst b/docs/developing-locally.rst
index 4963a9cd..5cb51aed 100644
--- a/docs/developing-locally.rst
+++ b/docs/developing-locally.rst
@@ -41,7 +41,14 @@ You can now run the usual Django ``migrate`` and ``runserver`` commands::
 django-allauth sends an email to verify users (and superusers) after signup and login (if they are still not verified). To send email you need to `configure your email backend`_
 
 .. _configure your email backend: http://docs.djangoproject.com/en/1.9/topics/email/#smtp-backend
+{% if cookiecutter.use_docker == 'y' %}
+In development you can (optionally) use MailHog_ for email testing. MailHog is added as docker-container. To use MailHog::
 
+1. Make sure, that ``mailhog`` docker container is up and running
+2. Open your browser and go to ``http://127.0.0.1:8025``
+
+.. _Mailhog: https://github.com/mailhog/MailHog/
+{% else %}
 In development you can (optionally) use MailHog_ for email testing. MailHog is built with Go so there are no dependencies. To use MailHog::
 
 1. `Download the latest release`_ for your operating system
@@ -52,7 +59,7 @@ In development you can (optionally) use MailHog_ for email testing. MailHog is b
 
 .. _Mailhog: https://github.com/mailhog/MailHog/
 .. _Download the latest release: https://github.com/mailhog/MailHog/releases
-
+{% endif %}
 Alternatively simply output emails to the console via: ``EMAIL_BACKEND = 'django.core.mail.backends.console.EmailBackend'``
 
 In production basic email configuration is setup to send emails with Mailgun_
diff --git a/{{cookiecutter.project_slug}}/.gitignore b/{{cookiecutter.project_slug}}/.gitignore
index 709d3a92..a1f2fc27 100644
--- a/{{cookiecutter.project_slug}}/.gitignore
+++ b/{{cookiecutter.project_slug}}/.gitignore
@@ -68,5 +68,12 @@ node_modules/
 # User-uploaded media
 {{ cookiecutter.project_slug }}/media/
 
+=======
+{{ cookiecutter.repo_name }}/media/
+
+# Hitch directory
+tests/.hitch
+{% if cookiecutter.use_mailhog == 'y' and cookiecutter.use_docker == 'n'%}
 # MailHog binary
 mailhog
+{% endif %}
diff --git a/{{cookiecutter.project_slug}}/Gruntfile.js b/{{cookiecutter.project_slug}}/Gruntfile.js
index 1eaade28..e5fbccee 100644
--- a/{{cookiecutter.project_slug}}/Gruntfile.js
+++ b/{{cookiecutter.project_slug}}/Gruntfile.js
@@ -112,14 +112,14 @@ module.exports = function (grunt) {
       runDjango: {
         cmd: 'python <%= paths.manageScript %> runserver'
       },
-      {% if cookiecutter.use_mailhog == "y" -%}runMailHog: {
+      {% if cookiecutter.use_mailhog == "y" and cookiecutter.use_docker == 'n' -%}runMailHog: {
         cmd: './mailhog'
       },{%- endif %}
     }
   });
 
   grunt.registerTask('serve', [
-    {% if cookiecutter.use_mailhog == "y" -%}
+    {% if cookiecutter.use_mailhog == "y" and cookiecutter.use_docker == 'n' -%}
     'bgShell:runMailHog',
     {%- endif %}
     'bgShell:runDjango',
diff --git a/{{cookiecutter.project_slug}}/README.rst b/{{cookiecutter.project_slug}}/README.rst
index 4717b7b9..38d923b6 100644
--- a/{{cookiecutter.project_slug}}/README.rst
+++ b/{{cookiecutter.project_slug}}/README.rst
@@ -77,7 +77,16 @@ Please note: For Celery's import magic to work, it is important *where* the cele
 
 Email Server
 ^^^^^^^^^^^^
+{% if cookiecutter.use_docker == 'y' %}
+In development, it is often nice to be able to see emails that are being sent from your application. For that reason local SMTP server `MailHog`_ with a web interface is available as docker container.
 
+.. _mailhog: https://github.com/mailhog/MailHog
+
+Container mailhog will start automatically when you will run all docker containers.
+Please check `cookiecutter-django Docker documentation`_ for more details how to start all containers.
+
+With MailHog running, to view messages that are sent by your application, open your browser and go to ``http://127.0.0.1:8025``
+{% else %}
 In development, it is often nice to be able to see emails that are being sent from your application. If you choose to use `MailHog`_ when generating the project a local SMTP server with a web interface will be available.
 
 .. _mailhog: https://github.com/mailhog/MailHog
@@ -92,7 +101,7 @@ To start the service, make sure you have nodejs installed, and then type the fol
 To view messages that are sent by your application, open your browser and go to ``http://127.0.0.1:8025``
 
 The email server will exit when you exit the Grunt task on the CLI with Ctrl+C.
-
+{% endif %}
 {% endif %}
 
 {% if cookiecutter.use_sentry == "y" %}
diff --git a/{{cookiecutter.project_slug}}/config/settings/local.py b/{{cookiecutter.project_slug}}/config/settings/local.py
index b8408c0a..b3227a2b 100644
--- a/{{cookiecutter.project_slug}}/config/settings/local.py
+++ b/{{cookiecutter.project_slug}}/config/settings/local.py
@@ -23,12 +23,15 @@ SECRET_KEY = env('DJANGO_SECRET_KEY', default='CHANGEME!!!')
 
 # Mail settings
 # ------------------------------------------------------------------------------
-EMAIL_HOST = 'localhost'
+
 EMAIL_PORT = 1025
-{%if cookiecutter.use_mailhog == 'n' -%}
+{% if cookiecutter.use_mailhog == 'y' and cookiecutter.use_docker == 'y' %}
+EMAIL_HOST = env("EMAIL_HOST", default='mailhog')
+{% else %}
+EMAIL_HOST = 'localhost'
 EMAIL_BACKEND = env('DJANGO_EMAIL_BACKEND',
                     default='django.core.mail.backends.console.EmailBackend')
-{%- endif %}
+{% endif %}
 
 # CACHING
 # ------------------------------------------------------------------------------
diff --git a/{{cookiecutter.project_slug}}/dev.yml b/{{cookiecutter.project_slug}}/dev.yml
index ab60720b..725ae50e 100644
--- a/{{cookiecutter.project_slug}}/dev.yml
+++ b/{{cookiecutter.project_slug}}/dev.yml
@@ -28,6 +28,10 @@ services:
       - "8000:8000"
     links:
       - postgres
+{% if cookiecutter.use_mailhog == 'y' %}
+      - mailhog
+{% endif %}
+
 {% if cookiecutter.use_pycharm == 'y' %}
   pycharm:
     build:
@@ -42,3 +46,10 @@ services:
     links:
       - postgres
 {% endif %}
+
+{% if cookiecutter.use_mailhog == 'y' %}
+  mailhog:
+    image: mailhog/mailhog
+    ports:
+      - "8025:8025"
+{% endif %}