diff --git a/src/apptask.js b/src/apptask.js
index cc87b4071..08d48aa1b 100644
--- a/src/apptask.js
+++ b/src/apptask.js
@@ -226,7 +226,11 @@ async function downloadImage(manifest) {
 
     if (diskUsage.available < (1024*1024*1024)) throw new BoxError(BoxError.DOCKER_ERROR, `Not enough disk space to pull docker image. available: ${diskUsage.available}`);
 
-    await docker.downloadImage(manifest);
+    if (manifest.dockerImage.indexOf('file:') === 0) {
+        await docker.buildImage(manifest);
+    } else {
+        await docker.downloadImage(manifest);
+    }
 }
 
 async function updateChecklist(app, newChecks, acknowledged = false) {
diff --git a/src/docker.js b/src/docker.js
index e0419d222..1cf256bd0 100644
--- a/src/docker.js
+++ b/src/docker.js
@@ -5,6 +5,7 @@ exports = module.exports = {
 
     info,
     df,
+    buildImage,
     downloadImage,
     createContainer,
     startContainer,
@@ -159,6 +160,52 @@ async function pullImage(imageRef) {
     });
 }
 
+async function buildImage(manifest) {
+    assert.strictEqual(typeof manifest, 'object');
+
+    const sourceArchivePath = manifest.dockerImage.slice('file:'.length);
+    const imageTag = `local/${manifest.id}:${manifest.version}`;
+
+    debug(`buildImage: building ${imageTag} from ${sourceArchivePath}`);
+
+    const tarStream = fs.createReadStream(sourceArchivePath);
+    const [error, stream] = await safe(gConnection.buildImage(tarStream, { t: imageTag }));
+    if (error) throw new BoxError(BoxError.DOCKER_ERROR, `Unable to build image from ${sourceArchivePath}: ${error.message}`);
+
+    return new Promise((resolve, reject) => {
+        let buildError = null;
+
+        stream.on('data', (chunk) => {
+            const data = safe.JSON.parse(chunk) || {};
+
+            if (data.error) {
+                buildError = data.errorDetail || { message: data.error };
+            } else {
+                const message = (data.stream || data.status || data.aux?.ID || '').replace(/\n$/, '');
+                if (message) debug('buildImage: ' + message);
+            }
+        });
+
+        stream.on('end', () => {
+            if (buildError) {
+                debug(`buildImage: error ${buildError}`);
+                return reject(new BoxError(buildError.message.includes('no space') ? BoxError.FS_ERROR : BoxError.DOCKER_ERROR, buildError.message));
+            } else {
+                debug(`buildImage: success ${imageTag}`);
+            }
+
+            // TODO we should probably use that scheme directly instead of file:....
+            manifest.dockerImage = imageTag;
+            resolve();
+        });
+
+        stream.on('error', (error) => {
+            debug(`buildImage: error building image ${imageTag}: %o`, error);
+            reject(new BoxError(BoxError.DOCKER_ERROR, error.message));
+        });
+    });
+}
+
 async function downloadImage(manifest) {
     assert.strictEqual(typeof manifest, 'object');
 
diff --git a/src/routes/apps.js b/src/routes/apps.js
index 987adf399..9485754ac 100644
--- a/src/routes/apps.js
+++ b/src/routes/apps.js
@@ -206,6 +206,9 @@ async function install(req, res, next) {
     data.appStoreId = result.appStoreId;
     data.manifest = result.manifest;
 
+    // if we have a source archive upload, craft a custom docker image URI for later
+    if (req.files.sourceArchive?.path) data.manifest.dockerImage = 'file:' + req.files.sourceArchive.path;
+
     [error, result] = await safe(apps.install(data, AuditSource.fromRequest(req)));
     if (error) return next(BoxError.toHttpError(error));