diff --git a/.vscode/tools/setup_vscode.py b/.vscode/tools/setup_vscode.py
index 8156a1a943..7750be6f9f 100644
--- a/.vscode/tools/setup_vscode.py
+++ b/.vscode/tools/setup_vscode.py
@@ -31,11 +31,11 @@
 # check if the isaac-sim directory exists
 if not os.path.exists(isaacsim_dir):
     raise FileNotFoundError(
-        f"Could not find the isaac-sim directory: {isaacsim_dir}. There are two possible reasons for this:\n"
-        "\t1. The Isaac Sim directory does not exist as a symlink in the Isaac Lab directory.\n"
-        "\t2. The script could import the 'isaacsim' package. This could be due to the 'isaacsim' package not being "
+        f"Could not find the isaac-sim directory: {isaacsim_dir}. There are two possible reasons for this:"
+        f"\n\t1. The Isaac Sim directory does not exist as a symlink at: {os.path.join(ISAACLAB_DIR, '_isaac_sim')}"
+        "\n\t2. The script could import the 'isaacsim' package. This could be due to the 'isaacsim' package not being "
         "installed in the Python environment.\n"
-        "Please make sure that the Isaac Sim directory exists or that the 'isaacsim' package is installed."
+        "\nPlease make sure that the Isaac Sim directory exists or that the 'isaacsim' package is installed."
     )
 
 ISAACSIM_DIR = isaacsim_dir
@@ -48,39 +48,49 @@ def overwrite_python_analysis_extra_paths(isaaclab_settings: str) -> str:
     The extraPaths are replaced with the path names from the isaac-sim settings file that exists in the
     "{ISAACSIM_DIR}/.vscode/settings.json" file.
 
+    If the isaac-sim settings file does not exist, the extraPaths are not overwritten.
+
     Args:
         isaaclab_settings: The settings string to use as template.
 
     Returns:
         The settings string with overwritten python analysis extra paths.
-
-    Raises:
-        FileNotFoundError: If the isaac-sim settings file does not exist.
     """
     # isaac-sim settings
     isaacsim_vscode_filename = os.path.join(ISAACSIM_DIR, ".vscode", "settings.json")
-    # make sure the isaac-sim settings file exists
-    if not os.path.exists(isaacsim_vscode_filename):
-        raise FileNotFoundError(f"Could not find the isaac-sim settings file: {isaacsim_vscode_filename}")
-
-    # read the path names from the isaac-sim settings file
-    with open(isaacsim_vscode_filename) as f:
-        vscode_settings = f.read()
-    # extract the path names
-    # search for the python.analysis.extraPaths section and extract the contents
-    settings = re.search(r"\"python.analysis.extraPaths\": \[.*?\]", vscode_settings, flags=re.MULTILINE | re.DOTALL)
-    settings = settings.group(0)
-    settings = settings.split('"python.analysis.extraPaths": [')[-1]
-    settings = settings.split("]")[0]
-
-    # read the path names from the isaac-sim settings file
-    path_names = settings.split(",")
-    path_names = [path_name.strip().strip('"') for path_name in path_names]
-    path_names = [path_name for path_name in path_names if len(path_name) > 0]
-
-    # change the path names to be relative to the Isaac Lab directory
-    rel_path = os.path.relpath(ISAACSIM_DIR, ISAACLAB_DIR)
-    path_names = ['"${workspaceFolder}/' + rel_path + "/" + path_name + '"' for path_name in path_names]
+
+    # we use the isaac-sim settings file to get the python.analysis.extraPaths for kit extensions
+    # if this file does not exist, we will not add any extra paths
+    if os.path.exists(isaacsim_vscode_filename):
+        # read the path names from the isaac-sim settings file
+        with open(isaacsim_vscode_filename) as f:
+            vscode_settings = f.read()
+        # extract the path names
+        # search for the python.analysis.extraPaths section and extract the contents
+        settings = re.search(
+            r"\"python.analysis.extraPaths\": \[.*?\]", vscode_settings, flags=re.MULTILINE | re.DOTALL
+        )
+        settings = settings.group(0)
+        settings = settings.split('"python.analysis.extraPaths": [')[-1]
+        settings = settings.split("]")[0]
+
+        # read the path names from the isaac-sim settings file
+        path_names = settings.split(",")
+        path_names = [path_name.strip().strip('"') for path_name in path_names]
+        path_names = [path_name for path_name in path_names if len(path_name) > 0]
+
+        # change the path names to be relative to the Isaac Lab directory
+        rel_path = os.path.relpath(ISAACSIM_DIR, ISAACLAB_DIR)
+        path_names = ['"${workspaceFolder}/' + rel_path + "/" + path_name + '"' for path_name in path_names]
+    else:
+        path_names = []
+        print(
+            f"[WARN] Could not find Isaac Sim VSCode settings: {isaacsim_vscode_filename}."
+            "\n\tThis will result in missing 'python.analysis.extraPaths' in the VSCode"
+            "\n\tsettings, which limits the functionality of the Python language server."
+            "\n\tHowever, it does not affect the functionality of the Isaac Lab project."
+            "\n\tWe are working on a fix for this issue with the Isaac Sim team."
+        )
 
     # add the path names that are in the Isaac Lab extensions directory
     isaaclab_extensions = os.listdir(os.path.join(ISAACLAB_DIR, "source", "extensions"))
@@ -89,9 +99,9 @@ def overwrite_python_analysis_extra_paths(isaaclab_settings: str) -> str:
     # combine them into a single string
     path_names = ",\n\t\t".expandtabs(4).join(path_names)
     # deal with the path separator being different on Windows and Unix
-    path_names = path_names.replace("/", os.sep)
+    path_names = path_names.replace("\\", "/")
 
-    # replace the path names in the Isaac Lab settings file with the path names from the isaac-sim settings file
+    # replace the path names in the Isaac Lab settings file with the path names parsed
     isaaclab_settings = re.sub(
         r"\"python.analysis.extraPaths\": \[.*?\]",
         '"python.analysis.extraPaths": [\n\t\t'.expandtabs(4) + path_names + "\n\t]".expandtabs(4),
@@ -116,10 +126,7 @@ def overwrite_default_python_interpreter(isaaclab_settings: str) -> str:
         The settings string with overwritten default python interpreter.
     """
     # read executable name
-    python_exe = sys.executable
-    # if python interpreter is from conda, use that. Otherwise, use the template.
-    if "conda" not in python_exe:
-        return isaaclab_settings
+    python_exe = sys.executable.replace("\\", "/")
     # replace the default python interpreter in the Isaac Lab settings file with the path to the
     # python interpreter in the Isaac Lab directory
     isaaclab_settings = re.sub(
@@ -146,9 +153,9 @@ def main():
 
     # overwrite the python.analysis.extraPaths in the Isaac Lab settings file with the path names
     isaaclab_settings = overwrite_python_analysis_extra_paths(isaaclab_template_settings)
-    # overwrite the default python interpreter in the Isaac Lab settings file
-    # NOTE: thisis disabled since we don't need it. The default interpreter should always be the one from isaac-sim
-    # isaaclab_settings = overwrite_default_python_interpreter(isaaclab_settings)
+    # overwrite the default python interpreter in the Isaac Lab settings file with the path to the
+    # python interpreter used to call this script
+    isaaclab_settings = overwrite_default_python_interpreter(isaaclab_settings)
 
     # add template notice to the top of the file
     header_message = (
diff --git a/docker/Dockerfile.pip b/docker/Dockerfile.pip
new file mode 100644
index 0000000000..5053638c11
--- /dev/null
+++ b/docker/Dockerfile.pip
@@ -0,0 +1,100 @@
+# Copyright (c) 2022-2024, The Isaac Lab Project Developers.
+# All rights reserved.
+#
+# SPDX-License-Identifier: BSD-3-Clause
+
+# This Dockerfile is used to build a Docker image for the Isaac Lab framework.
+#
+# It uses the pip package manager to install Isaac Sim and the Isaac Lab framework.
+#
+# To build the Docker image and run the Docker container, follow the steps below:
+#
+# 1. Build the Docker image:
+#       docker build -t isaac-lab:latest -f docker/Dockerfile.pip .
+# 2. Run the Docker container:
+#       docker run -it --gpus all --rm --network=host --name isaac-lab -v $(pwd):/root/isaaclab isaac-lab:latest
+
+# Base image: Ubuntu 22.04
+FROM ubuntu:22.04 AS base
+
+# Set default RUN shell to bash
+SHELL ["/bin/bash", "-c"]
+
+# Adds labels to the Dockerfile
+LABEL version="1.0"
+LABEL description="Dockerfile for building and running the Isaac Lab framework in Ubuntu 22.04 container image."
+
+# Arguments
+# Path to the Isaac Lab directory
+ENV ISAACLAB_PATH=/root/isaaclab
+# Home dir of docker user, typically '/root'
+ENV DOCKER_USER_HOME=/root
+
+# Set environment variables
+ENV LANG=C.UTF-8
+ENV DEBIAN_FRONTEND=noninteractive
+
+USER root
+
+# Install dependencies and remove cache
+RUN --mount=type=cache,target=/var/cache/apt \
+    apt-get update && apt-get install -y --no-install-recommends \
+    build-essential \
+    cmake \
+    git \
+    libglib2.0-0 \
+    ncurses-term && \
+    apt -y autoremove && apt clean autoclean && \
+    rm -rf /var/lib/apt/lists/*
+
+# for singularity usage, have to create the directories that will binded
+RUN mkdir -p ${DOCKER_USER_HOME}/.cache/ov && \
+    mkdir -p ${DOCKER_USER_HOME}/.cache/pip && \
+    mkdir -p ${DOCKER_USER_HOME}/.cache/nvidia/GLCache &&  \
+    mkdir -p ${DOCKER_USER_HOME}/.nv/ComputeCache && \
+    mkdir -p ${DOCKER_USER_HOME}/.nvidia-omniverse/logs && \
+    mkdir -p ${DOCKER_USER_HOME}/.local/share/ov/data && \
+    mkdir -p ${DOCKER_USER_HOME}/Documents
+
+# for singularity usage, create NVIDIA binary placeholders
+RUN touch /bin/nvidia-smi && \
+    touch /bin/nvidia-debugdump && \
+    touch /bin/nvidia-persistenced && \
+    touch /bin/nvidia-cuda-mps-control && \
+    touch /bin/nvidia-cuda-mps-server && \
+    touch /etc/localtime && \
+    mkdir -p /var/run/nvidia-persistenced && \
+    touch /var/run/nvidia-persistenced/socket
+
+# Install python3 and pip
+RUN apt-get update && apt-get install -y --no-install-recommends \
+    python3 \
+    python3-pip && \
+    apt -y autoremove && apt clean autoclean && \
+    rm -rf /var/lib/apt/lists/*
+# Maintain python3 as the default python version
+RUN update-alternatives --install /usr/bin/python python /usr/bin/python3 1
+RUN update-alternatives --install /usr/bin/pip pip /usr/bin/pip3 1
+
+# Install python packages
+RUN pip3 install --no-cache-dir --upgrade pip && \
+    pip install torch==2.2.2 --index-url https://download.pytorch.org/whl/cu118
+
+RUN pip install isaacsim-rl isaacsim-replicator isaacsim-extscache-physics isaacsim-extscache-kit-sdk isaacsim-extscache-kit isaacsim-app --extra-index-url https://pypi.nvidia.com
+
+# Mount the Isaac Lab directory (files to exclude are defined in .dockerignore)
+COPY ../ ${ISAACLAB_PATH}
+
+# installing Isaac Lab dependencies
+# use pip caching to avoid reinstalling large packages
+RUN --mount=type=cache,target=${DOCKER_USER_HOME}/.cache/pip \
+    ${ISAACLAB_PATH}/isaaclab.sh --install
+
+# aliasing isaaclab.sh and python for convenience
+RUN echo "export ISAACLAB_PATH=${ISAACLAB_PATH}" >> ${HOME}/.bashrc && \
+    echo "alias isaaclab=${ISAACLAB_PATH}/isaaclab.sh" >> ${HOME}/.bashrc && \
+    echo "export TZ=$(date +%Z)" >> ${HOME}/.bashrc
+
+# make working directory as the Isaac Lab directory
+# this is the default directory when the container is run
+WORKDIR ${ISAACLAB_PATH}
diff --git a/docker/container.sh b/docker/container.sh
index cde4fd69ca..c8789bb36f 100755
--- a/docker/container.sh
+++ b/docker/container.sh
@@ -25,7 +25,7 @@ fi
 
 # print the usage description
 print_help () {
-    echo -e "\nusage: $(basename "$0") [-h] [run] [start] [stop] -- Utility for handling docker in Isaac Lab."
+    echo -e "\nusage: $(basename "$0") [-h] [...] -- Utility for handling Docker in Isaac Lab."
     echo -e "\noptional arguments:"
     echo -e "\t-h, --help                  Display the help content."
     echo -e "\tstart [profile]             Build the docker image and create the container in detached mode."
@@ -36,8 +36,9 @@ print_help () {
     echo -e "\tjob [profile] [job_args]    Submit a job to the cluster."
     echo -e "\tconfig [profile]            Parse, resolve and render compose file in canonical format."
     echo -e "\n"
-    echo -e "[profile] is the optional container profile specification and [job_args] optional arguments specific"
-    echo -e "to the executed script"
+    echo -e "where: "
+    echo -e "\t[profile] is the optional container profile specification. Example: 'isaaclab', 'base', 'ros2'."
+    echo -e "\t[job_args] are optional arguments specific to the executed script."
     echo -e "\n" >&2
 }
 
@@ -56,8 +57,8 @@ install_apptainer() {
 
 install_yq() {
     # Installing yq to handle file parsing
-    # Installation procedure from here: https://github.com/mikefarah/yq
-    read -p "[INFO] Required 'yq' package could not be found. Would you like to install it via wget? (y/N)" yq_answer
+    # Installation procedure from here: https://github.com/mikefarah/yq?tab=readme-ov-file#linux-via-snap
+    read -p "[INFO] Required 'yq' package could not be found. Would you like to install it via snap? (y/N)" yq_answer
     if [ "$yq_answer" != "${yq_answer#[Yy]}" ]; then
         sudo snap install yq
     else
@@ -67,17 +68,29 @@ install_yq() {
 }
 
 set_statefile_variable() {
+    # Check if yq is installed
+    if ! command -v yq &> /dev/null; then
+        install_yq
+    fi
     # Stores key $1 with value $2 in yaml $STATEFILE
     yq -i '.["'"$1"'"] = "'"$2"'"' $STATEFILE
 }
 
 load_statefile_variable() {
+    # Check if yq is installed
+    if ! command -v yq &> /dev/null; then
+        install_yq
+    fi
     # Loads key $1 from yaml $STATEFILE as an envvar
     # If key does not exist, the loaded var will equal "null"
     eval $1="$(yq ".$1" $STATEFILE)"
 }
 
 delete_statefile_variable() {
+    # Check if yq is installed
+    if ! command -v yq &> /dev/null; then
+        install_yq
+    fi
     # Deletes key $1 from yaml $STATEFILE
     yq -i "del(.$1)" $STATEFILE
 }
@@ -270,10 +283,6 @@ if ! command -v docker &> /dev/null; then
     exit 1
 fi
 
-if ! command -v yq &> /dev/null; then
-    install_yq
-fi
-
 # parse arguments
 mode="$1"
 profile_arg="$2" # Capture the second argument as the potential profile argument
diff --git a/docs/source/setup/installation/binaries_installation.rst b/docs/source/setup/installation/binaries_installation.rst
index 7607758bd2..f8738c0547 100644
--- a/docs/source/setup/installation/binaries_installation.rst
+++ b/docs/source/setup/installation/binaries_installation.rst
@@ -1,3 +1,6 @@
+.. _isaacsim-binaries-installation:
+
+
 Installation using Isaac Sim Binaries
 =====================================
 
diff --git a/docs/source/setup/installation/pip_installation.rst b/docs/source/setup/installation/pip_installation.rst
index 0c58047253..7b42abe7a9 100644
--- a/docs/source/setup/installation/pip_installation.rst
+++ b/docs/source/setup/installation/pip_installation.rst
@@ -1,3 +1,5 @@
+.. _isaacsim-pip-installation:
+
 Installation using Isaac Sim pip
 ================================
 
@@ -5,18 +7,18 @@ Installation using Isaac Sim pip
 Installing Isaac Sim
 --------------------
 
-.. note::
-
-   Installing Isaac Sim from pip is currently an experimental feature.
-   If errors occur, please report them to the
-   `Isaac Sim Forums <https://docs.omniverse.nvidia.com/isaacsim/latest/common/feedback.html>`_
-   and install Isaac Sim from pre-built binaries.
+From Isaac Sim 4.0 release, it is possible to install Isaac Sim using pip. This approach is experimental and may have
+compatibility issues with some Linux distributions. If you encounter any issues, please report them to the
+`Isaac Sim Forums <https://docs.omniverse.nvidia.com/isaacsim/latest/common/feedback.html>`_.
 
-.. note::
+.. attention::
 
    Installing Isaac Sim with pip requires GLIBC 2.34+ version compatibility.
    To check the GLIBC version on your system, use command ``ldd --version``.
 
+   This may pose compatibility issues with some Linux distributions. For instance, Ubuntu 20.04 LTS has GLIBC 2.31
+   by default. If you encounter compatibility issues, we recommend following the
+   :ref:`Isaac Sim Binaries Installation <isaacsim-binaries-installation>` approach.
 
 -  To use the pip installation approach for Isaac Sim, we recommend first creating a virtual environment.
    Ensure that the python version of the virtual environment is **Python 3.10**.
diff --git a/isaaclab.bat b/isaaclab.bat
index f48c331b0f..514f023f23 100644
--- a/isaaclab.bat
+++ b/isaaclab.bat
@@ -12,40 +12,57 @@ goto main
 
 rem Helper functions
 
-rem extract the python from isaacsim
-:extract_python_exe
-rem Check if IsaacSim directory manually specified
-rem Note: for manually build isaacsim, this: _build/linux-x86_64/release
-if not "%ISAACSIM_PATH%"=="" (
-    rem Use local build
-    set build_path=%ISAACSIM_PATH%
-) else (
-    rem Use TeamCity build
-    set build_path=%ISAACLAB_PATH%\_isaac_sim
-)
-rem check if using conda
+rem extract Isaac Sim directory
+:extract_isaacsim_path
+rem check if conda environment is activated and isaacsim package is installed
 if not "%CONDA_PREFIX%"=="" (
     rem use conda python
     set python_exe=%CONDA_PREFIX%\python
-) else (
-    rem check if isaacsim is installed
-    pip show isaacsim-rl > nul 2>&1
+    call !python_exe! -m pip show isaacsim-rl > nul 2>&1
     if errorlevel 1 (
-        rem use python from kit if Isaac Sim not installed from pip
-        set python_exe=%build_path%\python.bat
+        rem Use the sym-link path to Isaac Sim directory
+        set isaac_path=%ISAACLAB_PATH%\_isaac_sim
     ) else (
-        rem use current python if Isaac Sim is installed from pip
-        set "python_exe="
-        for /f "delims=" %%i in ('where python') do (
-            if not defined python_exe (
-                set "python_exe=%%i"
+        rem retrieve the isaacsim path from the installed package
+        set "isaac_path="
+        for /f "delims=" %%i in ('!python_exe! -c "import isaacsim; import os; print(os.environ['ISAAC_PATH'])"') do (
+            if not defined isaac_path (
+                set "isaac_path=%%i"
             )
         )
     )
+) else (
+    rem Use the sym-link path to Isaac Sim directory
+    set isaac_path=%ISAACLAB_PATH%\_isaac_sim
+)
+rem Check if the directory exists
+if not exist "%isaac_path%" (
+    echo [ERROR] Unable to find the Isaac Sim directory: %isaac_path%
+    echo %tab%This could be due to the following reasons:
+    echo %tab%1. Conda environment with Isaac Sim pip package is not activated.
+    echo %tab%2. Isaac Sim directory is not available at the default path: %ISAACLAB_PATH%\_isaac_sim
+    exit /b 1
+)
+goto :eof
+
+rem extract the python from isaacsim
+:extract_python_exe
+rem check if using conda
+if not "%CONDA_PREFIX%"=="" (
+    rem use conda python
+    set python_exe=%CONDA_PREFIX%\python
+) else (
+    rem obtain isaacsim path
+    call :extract_isaacsim_path
+    rem use python from kit if Isaac Sim not installed from pip
+    set python_exe=!isaac_path!\python.bat
 )
 rem check if there is a python path available
 if "%python_exe%"=="" (
-    echo [ERROR] No python executable found at path: %build_path%
+    echo [ERROR] Unable to find any Python executable at path: %isaac_path%
+    echo %tab%This could be due to the following reasons:
+    echo %tab%1. Conda environment is not activated.
+    echo %tab%2. Python executable is not available at the default path: %ISAACLAB_PATH%\_isaac_sim\python.bat
     exit /b 1
 )
 goto :eof
@@ -53,20 +70,20 @@ goto :eof
 
 rem extract the simulator exe from isaacsim
 :extract_isaacsim_exe
-rem Check if IsaacSim directory manually specified
-rem Note: for manually build isaacsim, this: _build\linux-x86_64\release
-if not "%ISAACSIM_PATH%"=="" (
-    rem Use local build
-    set build_path=%ISAACSIM_PATH%
+call :extract_python_exe
+call !python_exe! -m pip show isaacsim-rl > nul 2>&1
+if errorlevel 1 (
+    rem obtain isaacsim path
+    call :extract_isaacsim_path
+    rem python executable to use
+    set isaacsim_exe=!isaac_path!\isaac-sim.bat
 ) else (
-    rem Use TeamCity build
-    set build_path=%ISAACLAB_PATH%\_isaac_sim
+    rem if isaac sim installed from pip
+    set isaacsim_exe=isaacsim
 )
-rem python executable to use
-set isaacsim_exe=%build_path%\isaac-sim.bat
 rem check if there is a python path available
 if not exist "%isaacsim_exe%" (
-    echo [ERROR] No isaac-sim executable found at path: %build_path%
+    echo [ERROR] No isaac-sim executable found at path: !isaac_path!
     exit /b 1
 )
 goto :eof
@@ -95,15 +112,6 @@ if errorlevel 1 (
     echo [ERROR] Conda could not be found. Please install conda and try again.
     exit /b 1
 )
-rem check if Isaac Sim directory manually specified
-rem Note: for manually build Isaac Sim, this: _build\windows-x86_64\release
-if not "%ISAACSIM_PATH%"=="" (
-    rem Use local build
-    set "build_path=%ISAACSIM_PATH%"
-) else (
-    rem Use TeamCity build
-    set "build_path=%ISAACLAB_PATH%\_isaac_sim"
-)
 rem check if the environment exists
 call conda env list | findstr /c:"%env_name%" >nul
 if %errorlevel% equ 0 (
@@ -124,27 +132,34 @@ call conda activate %env_name%
 rem setup directories to load isaac-sim variables
 mkdir "%CONDA_PREFIX%\etc\conda\activate.d" 2>nul
 mkdir "%CONDA_PREFIX%\etc\conda\deactivate.d" 2>nul
+
+rem obtain isaacsim path
+call :extract_isaacsim_path
+
 rem add variables to environment during activation
 (
     echo @echo off
-    rem for isaac-sim
-    echo set CARB_APP_PATH=%build_path%\kit
-    echo set EXP_PATH=%build_path%\apps
-    echo set ISAAC_PATH=%build_path%
-    echo set PYTHONPATH=%PYTHONPATH%;%build_path%\site
+    echo rem for isaac-sim
     echo set "RESOURCE_NAME=IsaacSim"
+    echo set CARB_APP_PATH=!isaac_path!\kit
+    echo set EXP_PATH=!isaac_path!\apps
+    echo set ISAAC_PATH=!isaac_path!
+    echo set PYTHONPATH=%PYTHONPATH%;!isaac_path!\site
+    echo.
+    echo rem for isaac-lab
     echo doskey isaaclab=isaaclab.bat $*
 ) > "%CONDA_PREFIX%\etc\conda\activate.d\env_vars.bat"
 (
-    echo $env:CARB_APP_PATH="%build_path%\kit"
-    echo $env:EXP_PATH="%build_path%\apps"
-    echo $env:ISAAC_PATH="%build_path%"
-    echo $env:PYTHONPATH="%PYTHONPATH%;%build_path%\site"
+    echo $env:CARB_APP_PATH="!isaac_path!\kit"
+    echo $env:EXP_PATH="!isaac_path!\apps"
+    echo $env:ISAAC_PATH="!isaac_path!"
+    echo $env:PYTHONPATH="%PYTHONPATH%;!isaac_path!\site"
     echo $env:RESOURCE_NAME="IsaacSim"
 ) > "%CONDA_PREFIX%\etc\conda\activate.d\env_vars.ps1"
 
 rem reactivate the environment to load the variables
 call conda activate %env_name%
+
 rem remove variables from environment during deactivation
 (
     echo @echo off
@@ -153,6 +168,8 @@ rem remove variables from environment during deactivation
     echo set "EXP_PATH="
     echo set "ISAAC_PATH="
     echo set "RESOURCE_NAME="
+    echo.
+    echo rem for isaac-lab
     echo doskey isaaclab =
     echo.
     echo rem restore paths
@@ -160,9 +177,6 @@ rem remove variables from environment during deactivation
     echo set "LD_LIBRARY_PATH=%cache_ld_library_path%"
 ) > "%CONDA_PREFIX%\etc\conda\deactivate.d\unsetenv_vars.bat"
 (
-    echo $env:CARB_APP_PATH=""
-    echo $env:EXP_PATH=""
-    echo $env:ISAAC_PATH=""
     echo $env:RESOURCE_NAME=""
     echo $env:PYTHONPATH="%cache_pythonpath%"
     echo $env:LD_LIBRARY_PATH="%cache_pythonpath%"
@@ -171,6 +185,7 @@ rem remove variables from environment during deactivation
 rem install some extra dependencies
 echo [INFO] Installing extra dependencies (this might take a few minutes)...
 call conda install -c conda-forge -y importlib_metadata >nul 2>&1
+
 rem deactivate the environment
 call conda deactivate
 rem add information to the user about alias
@@ -179,8 +194,8 @@ echo [INFO] Created conda environment named '%env_name%'.
 echo.
 echo       1. To activate the environment, run:                conda activate %env_name%
 echo       2. To install Isaac Lab extensions, run:            isaaclab -i
-echo       4. To perform formatting, run:                      isaaclab -f
-echo       5. To deactivate the environment, run:              conda deactivate
+echo       3. To perform formatting, run:                      isaaclab -f
+echo       4. To deactivate the environment, run:              conda deactivate
 echo.
 goto :eof
 
@@ -189,7 +204,7 @@ rem Update the vscode settings from template and Isaac Sim settings
 :update_vscode_settings
 echo [INFO] Setting up vscode settings...
 rem Retrieve the python executable
-call :extract_python_exe python_exe
+call :extract_python_exe
 rem Path to setup_vscode.py
 set "setup_vscode_script=%ISAACLAB_PATH%\.vscode\tools\setup_vscode.py"
 rem Check if the file exists before attempting to run it
@@ -244,12 +259,6 @@ if "%arg%"=="-i" (
         set ext_folder="%%d"
         call :install_isaaclab_extension
     )
-    call !python_exe! -m pip show isaacsim-rl > nul 2>&1
-    rem if not installing from pip, set up VScode
-    if errorlevel 1 (
-        rem setup vscode settings
-        call :update_vscode_settings
-    )
     rem install the python packages for supported reinforcement learning frameworks
     echo [INFO] Installing extra requirements such as learning frameworks...
     if "%~2"=="" (
@@ -265,7 +274,7 @@ if "%arg%"=="-i" (
         shift
     )
     rem install the rl-frameworks specified
-    !python_exe! -m pip install -e %ISAACLAB_PATH%\source\extensions\omni.isaac.lab_tasks[!framework_name!]
+    call !python_exe! -m pip install -e %ISAACLAB_PATH%\source\extensions\omni.isaac.lab_tasks[!framework_name!]
     shift
 ) else if "%arg%"=="--install" (
     rem install the python packages in omni.isaac.rl/source directory
@@ -275,12 +284,6 @@ if "%arg%"=="-i" (
         set ext_folder="%%d"
         call :install_isaaclab_extension
     )
-    call !python_exe! -m pip show isaacsim-rl > nul 2>&1
-    rem if not installing from pip, set up VScode
-    if errorlevel 1 (
-        rem setup vscode settings
-        call :update_vscode_settings
-    )
     rem install the python packages for supported reinforcement learning frameworks
     echo [INFO] Installing extra requirements such as learning frameworks...
     if "%~2"=="" (
@@ -296,7 +299,10 @@ if "%arg%"=="-i" (
         shift
     )
     rem install the rl-frameworks specified
-    !python_exe! -m pip install -e %ISAACLAB_PATH%\source\extensions\omni.isaac.lab_tasks[!framework_name!]
+    call !python_exe! -m pip install -e %ISAACLAB_PATH%\source\extensions\omni.isaac.lab_tasks[!framework_name!]
+    rem update the vscode settings
+    rem once we have a docker container, we need to disable vscode settings
+    call :update_vscode_settings
     shift
 ) else if "%arg%"=="-c" (
     rem use default name if not provided
@@ -413,7 +419,7 @@ if "%arg%"=="-i" (
 ) else if "%arg%"=="-s" (
     rem run the simulator exe provided by isaacsim
     call :extract_isaacsim_exe
-    echo [INFO] Running isaac-sim from: %isaacsim_exe%
+    echo [INFO] Running isaac-sim from: !isaacsim_exe!
     set "allArgs="
     for %%a in (%*) do (
         REM Append each argument to the variable, skip the first one
@@ -428,7 +434,7 @@ if "%arg%"=="-i" (
 ) else if "%arg%"=="--sim" (
     rem run the simulator exe provided by Isaac Sim
     call :extract_isaacsim_exe
-    echo [INFO] Running isaac-sim from: %isaacsim_exe%
+    echo [INFO] Running isaac-sim from: !isaacsim_exe!
     set "allArgs="
     for %%a in (%*) do (
         REM Append each argument to the variable, skip the first one
diff --git a/isaaclab.sh b/isaaclab.sh
index 1ef84f013b..f3f27c90ee 100755
--- a/isaaclab.sh
+++ b/isaaclab.sh
@@ -22,34 +22,78 @@ export ISAACLAB_PATH="$( cd "$( dirname "${BASH_SOURCE[0]}" )" &> /dev/null && p
 # Helper functions
 #==
 
-# extract the python from isaacsim
-extract_python_exe() {
-    # Check if IsaacSim directory manually specified
-    # Note: for manually build isaacsim, this: _build/linux-x86_64/release
-    if [ ! -z ${ISAACSIM_PATH} ];
-    then
-        # Use local build
-        build_path=${ISAACSIM_PATH}
+# extract isaac sim path
+extract_isaacsim_path() {
+    # Check if we have pip package installed inside conda environment
+    if ! [[ -z "${CONDA_PREFIX}" ]]; then
+        # Use the python executable to get the path
+        local python_exe=${CONDA_PREFIX}/bin/python
+        # Retrieve the path importing isaac sim and getting the environment path
+        if [ $(${python_exe} -m pip list | grep -c 'isaacsim-rl') ]; then
+            local isaac_path=$(${python_exe} -c "import isaacsim; import os; print(os.environ['ISAAC_PATH'])")
+        else
+            # If package not installed, try with the default path
+            local isaac_path=${ISAACLAB_PATH}/_isaac_sim
+        fi
+    elif command -v python &> /dev/null; then
+        # note: we need to deal with this case because of docker containers
+        # Retrieve the path importing isaac sim and getting the environment path
+        if [ $(python -m pip list | grep -c 'isaacsim-rl') ]; then
+            local isaac_path=$(python -c "import isaacsim; import os; print(os.environ['ISAAC_PATH'])")
+        else
+            # If package not installed, use an empty path for failure
+            local isaac_path=''
+        fi
     else
-        # Use TeamCity build
-        build_path=${ISAACLAB_PATH}/_isaac_sim
+        # Use the sym-link path to Isaac Sim directory
+        local isaac_path=${ISAACLAB_PATH}/_isaac_sim
+    fi
+    # check if there is a path available
+    if [ ! -d "${isaac_path}" ]; then
+        # throw an error if no path is found
+        echo -e "[ERROR] Unable to find the Isaac Sim directory: '${isaac_path}'" >&2
+        echo -e "\tThis could be due to the following reasons:" >&2
+        echo -e "\t1. Conda environment is not activated." >&2
+        echo -e "\t2. Isaac Sim pip package 'isaacsim-rl' is not installed." >&2
+        echo -e "\t3. Isaac Sim directory is not available at the default path: ${ISAACLAB_PATH}/_isaac_sim" >&2
+        # exit the script
+        exit 1
     fi
+    # return the result
+    echo ${isaac_path}
+}
+
+# extract the python from isaacsim
+extract_python_exe() {
     # check if using conda
     if ! [[ -z "${CONDA_PREFIX}" ]]; then
         # use conda python
         local python_exe=${CONDA_PREFIX}/bin/python
-    else
-        if pip show isaacsim-rl > /dev/null 2>&1; then
-            # use current python executable
-            python_exe=$(which python)
+    elif command -v python &> /dev/null; then
+        # note: we need to deal with this case because of docker containers
+        if [ $(python -m pip list | grep -c 'isaacsim-rl') ]; then
+            local python_exe=$(which python)
         else
-            # use python from kit
-            local python_exe=${build_path}/python.sh
+            # leave a blank path for failure
+            local python_exe=''
         fi
+    else
+        # use python from kit
+        local python_exe=${ISAACLAB_PATH}/_isaac_sim/python.sh
     fi
     # check if there is a python path available
     if [ ! -f "${python_exe}" ]; then
-        echo "[ERROR] No python executable found at path: ${build_path}" >&2
+        echo -e "[ERROR] Unable to find any Python executable at path: '${python_exe}'" >&2
+        echo -e "\tThis could be due to the following reasons:" >&2
+        echo -e "\t1. Conda environment is not activated." >&2
+        echo -e "\t2. Isaac Sim pip package 'isaacsim-rl' is not installed." >&2
+        echo -e "\t3. Python executable is not available at the default path: ${ISAACLAB_PATH}/_isaac_sim/python.sh" >&2
+        exit 1
+    fi
+    # kit dependencies are built with python 3.10 so any other version will not work
+    # this is needed in case users have multiple python versions installed and the wrong one is being used
+    if [ "$(${python_exe} --version | grep -c '3.10')" -eq 0 ]; then
+        echo "[ERROR] Found Python version: $(${python_exe} --version) while expecting 3.10. Please use the correct python version." >&2
         exit 1
     fi
     # return the result
@@ -58,21 +102,13 @@ extract_python_exe() {
 
 # extract the simulator exe from isaacsim
 extract_isaacsim_exe() {
-    # Check if IsaacSim directory manually specified
-    # Note: for manually build isaacsim, this: _build/linux-x86_64/release
-    if [ ! -z ${ISAACSIM_PATH} ];
-    then
-        # Use local build
-        build_path=${ISAACSIM_PATH}
-    else
-        # Use TeamCity build
-        build_path=${ISAACLAB_PATH}/_isaac_sim
-    fi
+    # obtain the isaac sim path
+    local isaac_path=$(extract_isaacsim_path)
     # python executable to use
-    local isaacsim_exe=${build_path}/isaac-sim.sh
+    local isaacsim_exe=${isaac_path}/isaac-sim.sh
     # check if there is a python path available
     if [ ! -f "${isaacsim_exe}" ]; then
-        echo "[ERROR] No isaac-sim executable found at path: ${build_path}" >&2
+        echo "[ERROR] No Isaac Sim executable found at path: ${isaacsim_exe}" >&2
         exit 1
     fi
     # return the result
@@ -100,16 +136,7 @@ setup_conda_env() {
         echo "[ERROR] Conda could not be found. Please install conda and try again."
         exit 1
     fi
-    # Check if IsaacSim directory manually specified
-    # Note: for manually build isaacsim, this: _build/linux-x86_64/release
-    if [ ! -z ${ISAACSIM_PATH} ];
-    then
-        # Use local build
-        build_path=${ISAACSIM_PATH}
-    else
-        # Use TeamCity build
-        build_path=${ISAACLAB_PATH}/_isaac_sim
-    fi
+
     # check if the environment exists
     if { conda env list | grep -w ${env_name}; } >/dev/null 2>&1; then
         echo -e "[INFO] Conda environment named '${env_name}' already exists."
@@ -117,6 +144,7 @@ setup_conda_env() {
         echo -e "[INFO] Creating conda environment named '${env_name}'..."
         conda create -y --name ${env_name} python=3.10
     fi
+
     # cache current paths for later
     cache_pythonpath=$PYTHONPATH
     cache_ld_library_path=$LD_LIBRARY_PATH
@@ -129,12 +157,9 @@ setup_conda_env() {
     # setup directories to load Isaac Sim variables
     mkdir -p ${CONDA_PREFIX}/etc/conda/activate.d
     mkdir -p ${CONDA_PREFIX}/etc/conda/deactivate.d
+
     # add variables to environment during activation
-    local isaacsim_setup_conda_env_script=${ISAACLAB_PATH}/_isaac_sim/setup_conda_env.sh
     printf '%s\n' '#!/usr/bin/env bash' '' \
-        '# for Isaac Sim' \
-        'source '${isaacsim_setup_conda_env_script}'' \
-        '' \
         '# for Isaac Lab' \
         'export ISAACLAB_PATH='${ISAACLAB_PATH}'' \
         'alias isaaclab='${ISAACLAB_PATH}'/isaaclab.sh' \
@@ -142,28 +167,51 @@ setup_conda_env() {
         '# show icon if not runninng headless' \
         'export RESOURCE_NAME="IsaacSim"' \
         '' > ${CONDA_PREFIX}/etc/conda/activate.d/setenv.sh
+
+    # check if we have _isaac_sim directory -> if so that means binaries were installed.
+    # we need to setup conda variables to load the binaries
+    local isaacsim_setup_conda_env_script=${ISAACLAB_PATH}/_isaac_sim/setup_conda_env.sh
+    if [ -f "${isaacsim_setup_conda_env_script}" ]; then
+        # add variables to environment during activation
+        printf '' \
+            '# for Isaac Sim' \
+            'source '${isaacsim_setup_conda_env_script}'' \
+            '' >> ${CONDA_PREFIX}/etc/conda/activate.d/setenv.sh
+    fi
+
     # reactivate the environment to load the variables
     # needed because deactivate complains about Isaac Lab alias since it otherwise doesn't exist
     conda activate ${env_name}
+
     # remove variables from environment during deactivation
     printf '%s\n' '#!/usr/bin/env bash' '' \
         '# for Isaac Lab' \
         'unalias isaaclab &>/dev/null' \
         'unset ISAACLAB_PATH' \
         '' \
-        '# for Isaac Sim' \
-        'unset CARB_APP_PATH' \
-        'unset EXP_PATH' \
-        'unset ISAAC_PATH' \
-        'unset RESOURCE_NAME' \
-        '' \
         '# restore paths' \
         'export PYTHONPATH='${cache_pythonpath}'' \
         'export LD_LIBRARY_PATH='${cache_ld_library_path}'' \
+        '' \
+        '# for Isaac Sim' \
+        'unset RESOURCE_NAME' \
         '' > ${CONDA_PREFIX}/etc/conda/deactivate.d/unsetenv.sh
+
+    # check if we have _isaac_sim directory -> if so that means binaries were installed.
+    if [ -f "${isaacsim_setup_conda_env_script}" ]; then
+        # add variables to environment during activation
+        printf '' \
+            '# for Isaac Sim' \
+            'unset CARB_APP_PATH' \
+            'unset EXP_PATH' \
+            'unset ISAAC_PATH' \
+            '' >> ${CONDA_PREFIX}/etc/conda/deactivate.d/unsetenv.sh
+    fi
+
     # install some extra dependencies
     echo -e "[INFO] Installing extra dependencies (this might take a few minutes)..."
     conda install -c conda-forge -y importlib_metadata &> /dev/null
+
     # deactivate the environment
     conda deactivate
     # add information to the user about alias
@@ -187,7 +235,7 @@ update_vscode_settings() {
     if [ -f "${setup_vscode_script}" ]; then
         ${python_exe} "${setup_vscode_script}"
     else
-        echo "[WARNING] setup_vscode.py not found. Aborting vscode settings setup."
+        echo "[WARNING] Unable to find the script 'setup_vscode.py'. Aborting vscode settings setup."
     fi
 }
 
@@ -234,12 +282,6 @@ while [[ $# -gt 0 ]]; do
             export -f install_isaaclab_extension
             # source directory
             find -L "${ISAACLAB_PATH}/source/extensions" -mindepth 1 -maxdepth 1 -type d -exec bash -c 'install_isaaclab_extension "{}"' \;
-            # unset local variables
-            unset install_isaaclab_extension
-            # setup vscode settings
-            if ! ${python_exe} -m pip show isaacsim-rl &>/dev/null; then
-                update_vscode_settings
-            fi
             # install the python packages for supported reinforcement learning frameworks
             echo "[INFO] Installing extra requirements such as learning frameworks..."
             # check if specified which rl-framework to install
@@ -257,6 +299,19 @@ while [[ $# -gt 0 ]]; do
             fi
             # install the rl-frameworks specified
             ${python_exe} -m pip install -e ${ISAACLAB_PATH}/source/extensions/omni.isaac.lab_tasks["${framework_name}"]
+
+            # check if we are inside a docker container (in that case don't setup VSCode)
+            if [ -f "/.dockerenv" ]; then
+                echo "[INFO] Running inside a docker container. Skipping VSCode settings setup."
+                echo "[INFO] To setup VSCode settings, run 'isaaclab -v'."
+            else
+                # update the vscode settings
+                update_vscode_settings
+            fi
+
+            # unset local variables
+            unset extract_python_exe
+            unset install_isaaclab_extension
             shift # past argument
             ;;
         -c|--conda)
@@ -283,7 +338,7 @@ while [[ $# -gt 0 ]]; do
             fi
             # run the formatter over the repository
             # check if pre-commit is installed
-            if ! command -v pre-commit &>/dev/null; then
+            if [ ! command -v pre-commit &>/dev/null ]; then
                 echo "[INFO] Installing pre-commit..."
                 pip install pre-commit
             fi