diff --git a/.github/workflows/build-images.yml b/.github/workflows/build-images.yml
index 90218f3345..e167c990ba 100644
--- a/.github/workflows/build-images.yml
+++ b/.github/workflows/build-images.yml
@@ -58,6 +58,9 @@ jobs:
           - file: ./src/loadgenerator/Dockerfile
             tag_suffix: loadgenerator
             context: ./
+          - file: ./src/otelcollector/Dockerfile
+            tag_suffix: otelcollector
+            context: ./
           - file: ./src/paymentservice/Dockerfile
             tag_suffix: paymentservice
             context: ./
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4305c7d21c..9ab5070ecf 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -63,6 +63,8 @@ release.
   ([#988](https://github.com/open-telemetry/opentelemetry-demo/pull/988))
 * [FraudDetectionService] Updated Kotlin version and OTel dependencies
   ([#987](https://github.com/open-telemetry/opentelemetry-demo/pull/987))
+* [otelcol] Use the collector builder to produce otelcol docker image
+  ([#944](https://github.com/open-telemetry/opentelemetry-demo/pull/944))
 
 ## 1.4.0
 
diff --git a/docker-compose.yml b/docker-compose.yml
index 4c7468c3eb..3331a75f8d 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -645,8 +645,13 @@ services:
 
   # OpenTelemetry Collector
   otelcol:
-    image: otel/opentelemetry-collector-contrib:0.76.1
+    image: ${IMAGE_NAME}:${IMAGE_VERSION}-otelcol
     container_name: otel-col
+    build:
+      context: ./
+      dockerfile: ./src/otelcollector/Dockerfile
+      cache_from:
+        - ${IMAGE_NAME}:${IMAGE_VERSION}-otelcol
     deploy:
       resources:
         limits:
diff --git a/src/otelcollector/Dockerfile b/src/otelcollector/Dockerfile
new file mode 100644
index 0000000000..4281d69ae2
--- /dev/null
+++ b/src/otelcollector/Dockerfile
@@ -0,0 +1,31 @@
+# Copyright The OpenTelemetry Authors
+# SPDX-License-Identifier: Apache-2.0
+
+FROM golang:latest as build
+
+ARG TARGETARCH=arm64
+ARG BUILDER_VERSION=0.81.0
+
+RUN curl -L -o /builder https://github.com/open-telemetry/opentelemetry-collector/releases/download/cmd%2Fbuilder%2Fv${BUILDER_VERSION}/ocb_${BUILDER_VERSION}_linux_${TARGETARCH}
+RUN chmod +x /builder
+WORKDIR /build
+COPY ./src/otelcollector/manifest.yml ./
+ENV GOARCH=arm64
+ENV CGO_ENABLED=0
+RUN /builder --config ./manifest.yml --output-path /build/_build
+RUN ls /build/_build
+
+FROM alpine:3.16 as certs
+RUN apk --update add ca-certificates
+
+FROM alpine
+
+ARG USER_UID=10001
+USER ${USER_UID}
+
+COPY --from=certs /etc/ssl/certs/ca-certificates.crt /etc/ssl/certs/ca-certificates.crt
+COPY --from=build --chmod=755 /build/_build/otelcol-demo /otelcol-demo
+COPY ./src/otelcollector/otelcol-*.yml /etc/otelcol/
+ENTRYPOINT ["/otelcol-demo"]
+CMD ["--config", "/etc/otelcol/otelcol-config.yml"]
+EXPOSE 4317 4318
diff --git a/src/otelcollector/manifest.yml b/src/otelcollector/manifest.yml
new file mode 100644
index 0000000000..985623e8b4
--- /dev/null
+++ b/src/otelcollector/manifest.yml
@@ -0,0 +1,24 @@
+# Copyright The OpenTelemetry Authors
+# SPDX-License-Identifier: Apache-2.0
+
+dist:
+  module: github.com/open-telemetry/opentelemetry-demo/src/otelcollector
+  name: otelcol-demo
+  description: OpenTelemetry Collector for OpenTelemetry Demo
+  version: 0.81.0
+  output_path: ./_build
+  otelcol_version: 0.81.0
+
+receivers:
+  - gomod: go.opentelemetry.io/collector/receiver/otlpreceiver v0.81.0
+
+exporters:
+  - gomod: go.opentelemetry.io/collector/exporter/loggingexporter v0.81.0
+  - gomod: go.opentelemetry.io/collector/exporter/otlpexporter v0.81.0
+  - gomod: go.opentelemetry.io/collector/exporter/otlphttpexporter v0.81.0
+  - gomod: github.com/open-telemetry/opentelemetry-collector-contrib/exporter/prometheusexporter v0.81.0
+processors:
+  - gomod: go.opentelemetry.io/collector/processor/batchprocessor v0.81.0
+  - gomod: github.com/open-telemetry/opentelemetry-collector-contrib/processor/filterprocessor v0.81.0
+connectors:
+  - gomod: github.com/open-telemetry/opentelemetry-collector-contrib/connector/spanmetricsconnector v0.81.0