diff --git a/sync-server.Dockerfile b/sync-server.Dockerfile
index 01668d8597..1175cd555b 100644
--- a/sync-server.Dockerfile
+++ b/sync-server.Dockerfile
@@ -26,6 +26,10 @@ FROM deps AS builder
 WORKDIR /app
 
 COPY packages/ ./packages/
+
+# Increase memory limit for the build process to 8GB
+ENV NODE_OPTIONS=--max_old_space_size=8192
+
 RUN yarn build:server
 
 # Focus the workspaces in production mode (including @actual-app/web you just built)
diff --git a/upcoming-release-notes/5695.md b/upcoming-release-notes/5695.md
new file mode 100644
index 0000000000..8de150c997
--- /dev/null
+++ b/upcoming-release-notes/5695.md
@@ -0,0 +1,6 @@
+---
+category: Maintenance
+authors: [MikesGlitch]
+---
+
+Fix local dockerfile build memory allocation