diff --git a/Dockerfile b/Dockerfile
index 7690e80..92779ef 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -19,14 +19,11 @@ RUN pip install --no-cache-dir -r requirements.txt
 # Copy the source code
 COPY . .
 
-# Set Python path to include src directory
-ENV PYTHONPATH=/app/src
-
-# Install the package in editable mode
-RUN pip install -e .
-
-# Verify package installation
-RUN pip show simpleguardhome
+# Clean any previous installations and install the package
+RUN pip uninstall -y simpleguardhome || true && \
+    pip install -e . && \
+    pip show simpleguardhome && \
+    python3 -c "import simpleguardhome; print('Package found at:', simpleguardhome.__file__)"
 
 # Copy and set up entrypoint script
 COPY docker-entrypoint.sh /usr/local/bin/
diff --git a/docker-entrypoint.sh b/docker-entrypoint.sh
index 40fa669..22d6d0f 100644
--- a/docker-entrypoint.sh
+++ b/docker-entrypoint.sh
@@ -12,9 +12,13 @@ handle_term() {
 # Set up signal handlers
 trap handle_term SIGTERM SIGINT
 
+# Verify package can be imported
+echo "Verifying package installation..."
+python3 -c "import simpleguardhome" || exit 1
+
 # Start the application
 echo "Starting SimpleGuardHome server..."
-cd /app && PYTHONPATH=/app/src python3 -m simpleguardhome.main &
+exec python3 -m simpleguardhome.main
 
 # Store child PID
 child=$!
diff --git a/setup.py b/setup.py
index ce2ba6c..5664815 100644
--- a/setup.py
+++ b/setup.py
@@ -3,7 +3,8 @@ from setuptools import setup, find_packages
 setup(
     name="simpleguardhome",
     version="0.1.0",
-    packages=find_packages(),
+    packages=find_packages(where="src"),
+    package_dir={"": "src"},
     include_package_data=True,
     package_data={
         "simpleguardhome": ["templates/*"]