diff --git a/.env.example b/.env.example
index 1ff28dd5b..2aafa0645 100644
--- a/.env.example
+++ b/.env.example
@@ -1,6 +1,12 @@
-REDIS_URL=redis://redis:6379
 SECRET_KEY_BASE=
 
+#redis config
+REDIS_URL=redis://redis:6379
+# If you are using docker-compose, set this variable's value to be any string,
+# which will be the password for the redis service running inside the docker-compose
+# to make it secure
+REDIS_PASSWORD=
+
 # Postgres Database config variables
 POSTGRES_HOST=postgres
 POSTGRES_USERNAME=postgres
diff --git a/config/cable.yml b/config/cable.yml
index cfe40a8a0..4c30fcd13 100644
--- a/config/cable.yml
+++ b/config/cable.yml
@@ -1,5 +1,7 @@
 development:
-  adapter: async
+  adapter: redis
+  url: <%= ENV.fetch('REDIS_URL', 'redis://127.0.0.1:6379') %>
+  password: <%= ENV.fetch('REDIS_PASSWORD', nil) %>
 
 test:
   adapter: test
@@ -7,7 +9,9 @@ test:
 staging:
   adapter: redis
   url: <%= ENV.fetch('REDIS_URL', 'redis://127.0.0.1:6379') %>
+  password: <%= ENV.fetch('REDIS_PASSWORD', nil) %>
 
 production:
   adapter: redis
   url: <%= ENV.fetch('REDIS_URL', 'redis://127.0.0.1:6379') %>
+  password: <%= ENV.fetch('REDIS_PASSWORD', nil) %>
diff --git a/config/initializers/redis.rb b/config/initializers/redis.rb
index 4b9bffc03..565b7030b 100644
--- a/config/initializers/redis.rb
+++ b/config/initializers/redis.rb
@@ -1,5 +1,8 @@
-uri = URI.parse(ENV.fetch('REDIS_URL', 'redis://127.0.0.1:6379'))
-redis = Rails.env.test? ? MockRedis.new : Redis.new(url: uri)
+app_redis_config = {
+    url: URI.parse(ENV.fetch('REDIS_URL', 'redis://127.0.0.1:6379')),
+    password: ENV.fetch('REDIS_PASSWORD', nil)
+}
+redis = Rails.env.test? ? MockRedis.new : Redis.new(app_redis_config)
 Nightfury.redis = Redis::Namespace.new('reports', redis: redis)
 
 # Alfred - Used currently for Round Robin. Add here as you use it for more features
diff --git a/config/initializers/sidekiq.rb b/config/initializers/sidekiq.rb
new file mode 100644
index 000000000..748b1e60c
--- /dev/null
+++ b/config/initializers/sidekiq.rb
@@ -0,0 +1,11 @@
+sidekiq_redis_config = {
+    url: ENV.fetch('REDIS_URL', 'redis://127.0.0.1:6379'),
+    password: ENV.fetch('REDIS_PASSWORD', nil)
+}
+Sidekiq.configure_client do |config|
+    config.redis = sidekiq_redis_config
+end
+
+Sidekiq.configure_server do |config|
+    config.redis = sidekiq_redis_config
+end
diff --git a/docker-compose.yaml b/docker-compose.yaml
index eedcc1109..8eb261644 100644
--- a/docker-compose.yaml
+++ b/docker-compose.yaml
@@ -53,7 +53,7 @@ services:
       - cache:/app/tmp/cache
     ports:
       - "3035" # Webpack dev server
-    env_file: .env.example
+    env_file: .env
     environment:
       - WEBPACKER_DEV_SERVER_HOST=0.0.0.0
       - NODE_ENV=development
@@ -76,6 +76,8 @@ services:
   redis:
     image: redis:alpine
     restart: always
+    command: ["sh", "-c", "redis-server --requirepass \"$REDIS_PASSWORD\""]
+    env_file: .env
     volumes:
       - redis:/data/redis
     ports:
diff --git a/docs/development/environment-setup/docker.md b/docs/development/environment-setup/docker.md
index fef84f37d..85380c444 100644
--- a/docs/development/environment-setup/docker.md
+++ b/docs/development/environment-setup/docker.md
@@ -7,6 +7,13 @@ title: "Docker Setup and Debugging Guide"
 
 After cloning the repo and installing docker on your machine, run the following command from the root directory of the project.
 
+```bash
+cp .env.example .env
+```
+
+Make changes to the `.env` file as required [Optional]. If you want to set the password for redis when you run
+docker-compose, set any string value to the environment variable `REDIS_PASSWORD` in the `.env` file. which will secure the redis running inside docker-compose with this password. This will be automatically picked up by app server and sidekiq, to authenticate while making connections to redis server.
+
 ```bash
 docker-compose build
 ```
diff --git a/docs/development/project-setup/environment-variables.md b/docs/development/project-setup/environment-variables.md
index 2c08f5200..9e1a182af 100644
--- a/docs/development/project-setup/environment-variables.md
+++ b/docs/development/project-setup/environment-variables.md
@@ -60,7 +60,7 @@ AWS_SECRET_ACCESS_KEY=
 AWS_REGION=
 ```
 
-### Configure Redis URL
+### Configure Redis
 
 For development, you can use the following url to connect to redis.
 
@@ -68,6 +68,13 @@ For development, you can use the following url to connect to redis.
 REDIS_URL='redis:://127.0.0.1:6379'
 ```
 
+To authenticate redis connections made by app server and sidekiq, if it's protected by a password, use the following
+environment variable to set the password.
+
+```bash
+REDIS_PASSWORD=
+```
+
 ### Configure Postgres host
 
 You can set the following environment variable to set the host for postgres.