diff --git a/build_debian.sh b/build_debian.sh
index b4384113a114..1010fbc26e0f 100755
--- a/build_debian.sh
+++ b/build_debian.sh
@@ -29,7 +29,7 @@
 set -x -e
 
 ## docker engine version (with platform)
-DOCKER_VERSION=1.11.1-0~stretch_amd64
+DOCKER_VERSION=5:18.09.0~3-0~debian-stretch
 LINUX_KERNEL_VERSION=4.9.0-8
 
 ## Working directory to prepare the file system
@@ -63,6 +63,11 @@ mkdir -p $FILESYSTEM_ROOT/$PLATFORM_DIR
 mkdir -p $FILESYSTEM_ROOT/$PLATFORM_DIR/x86_64-grub
 touch $FILESYSTEM_ROOT/$PLATFORM_DIR/firsttime
 
+## make / as a mountpoint in chroot env, needed by dockerd
+pushd $FILESYSTEM_ROOT
+sudo mount --bind . .
+popd
+
 ## Build a basic Debian system by debootstrap
 echo '[INFO] Debootstrap...'
 sudo http_proxy=$http_proxy debootstrap --variant=minbase --arch amd64 stretch $FILESYSTEM_ROOT http://debian-archive.trafficmanager.net/debian
@@ -159,12 +164,19 @@ echo '[INFO] Install docker'
 ## Install apparmor utils since they're missing and apparmor is enabled in the kernel
 ## Otherwise Docker will fail to start
 sudo LANG=C chroot $FILESYSTEM_ROOT apt-get -y install apparmor
-docker_deb_url=https://apt.dockerproject.org/repo/pool/main/d/docker-engine/docker-engine_${DOCKER_VERSION}.deb
-docker_deb_temp=`mktemp`
-trap_push "rm -f $docker_deb_temp"
-wget $docker_deb_url -qO $docker_deb_temp
-sudo dpkg --root=$FILESYSTEM_ROOT -i $docker_deb_temp || \
-    sudo LANG=C DEBIAN_FRONTEND=noninteractive chroot $FILESYSTEM_ROOT apt-get -y install -f
+sudo LANG=C chroot $FILESYSTEM_ROOT apt-get -y install apt-transport-https \
+                                                       ca-certificates \
+                                                       curl \
+                                                       gnupg2 \
+                                                       software-properties-common
+sudo LANG=C chroot $FILESYSTEM_ROOT curl -o /tmp/docker.gpg -fsSL https://download.docker.com/linux/debian/gpg
+sudo LANG=C chroot $FILESYSTEM_ROOT apt-key add /tmp/docker.gpg
+sudo LANG=C chroot $FILESYSTEM_ROOT rm /tmp/docker.gpg
+sudo LANG=C chroot $FILESYSTEM_ROOT add-apt-repository \
+                                    "deb [arch=amd64] https://download.docker.com/linux/debian stretch stable"
+sudo LANG=C chroot $FILESYSTEM_ROOT apt-get update
+sudo LANG=C chroot $FILESYSTEM_ROOT apt-get -y install docker-ce=${DOCKER_VERSION}
+sudo LANG=C chroot $FILESYSTEM_ROOT apt-get -y remove software-properties-common gnupg2
 
 ## Add docker config drop-in to select aufs, otherwise it may select other storage driver
 sudo mkdir -p $FILESYSTEM_ROOT/etc/systemd/system/docker.service.d/
diff --git a/files/build_templates/sonic_debian_extension.j2 b/files/build_templates/sonic_debian_extension.j2
index 3294068e71a6..ed8df864cd06 100644
--- a/files/build_templates/sonic_debian_extension.j2
+++ b/files/build_templates/sonic_debian_extension.j2
@@ -43,7 +43,8 @@ clean_sys() {
 trap_push clean_sys
 sudo LANG=C chroot $FILESYSTEM_ROOT mount sysfs /sys -t sysfs
 
-sudo bash -c "echo \"DOCKER_OPTS=\"--storage-driver=overlay\"\" >> $FILESYSTEM_ROOT/etc/default/docker"
+sudo bash -c "echo \"DOCKER_OPTS=\"--storage-driver=overlay2\"\" >> $FILESYSTEM_ROOT/etc/default/docker"
+sudo cp files/docker/docker $FILESYSTEM_ROOT/etc/init.d/
 sudo chroot $FILESYSTEM_ROOT service docker start
 
 # Apply apt configuration files
@@ -280,6 +281,7 @@ sudo LANG=C chroot $FILESYSTEM_ROOT docker load < {{image}}
 sudo LANG=C chroot $FILESYSTEM_ROOT docker tag {{imagename}}:latest {{imagename}}:$(sonic_get_version)
 {% endfor %}
 sudo chroot $FILESYSTEM_ROOT service docker stop
+sudo rm $FILESYSTEM_ROOT/etc/init.d/docker
 {% for script in installer_start_scripts.split(' ') -%}
 sudo cp {{script}} $FILESYSTEM_ROOT/usr/bin/
 {% endfor %}
diff --git a/files/docker/README b/files/docker/README
new file mode 100644
index 000000000000..d6a1ef008c2a
--- /dev/null
+++ b/files/docker/README
@@ -0,0 +1,2 @@
+docker file is extracted from docker-ce 17.03.0~ce-0~debian-stretch to
+enable 'service docker start' in the build chroot env.
diff --git a/files/docker/docker b/files/docker/docker
new file mode 100755
index 000000000000..4f9d38dda5c6
--- /dev/null
+++ b/files/docker/docker
@@ -0,0 +1,152 @@
+#!/bin/sh
+set -e
+
+### BEGIN INIT INFO
+# Provides:           docker
+# Required-Start:     $syslog $remote_fs
+# Required-Stop:      $syslog $remote_fs
+# Should-Start:       cgroupfs-mount cgroup-lite
+# Should-Stop:        cgroupfs-mount cgroup-lite
+# Default-Start:      2 3 4 5
+# Default-Stop:       0 1 6
+# Short-Description:  Create lightweight, portable, self-sufficient containers.
+# Description:
+#  Docker is an open-source project to easily create lightweight, portable,
+#  self-sufficient containers from any application. The same container that a
+#  developer builds and tests on a laptop can run at scale, in production, on
+#  VMs, bare metal, OpenStack clusters, public clouds and more.
+### END INIT INFO
+
+export PATH=/sbin:/bin:/usr/sbin:/usr/bin:/usr/local/sbin:/usr/local/bin
+
+BASE=docker
+
+# modify these in /etc/default/$BASE (/etc/default/docker)
+DOCKERD=/usr/bin/dockerd
+# This is the pid file managed by docker itself
+DOCKER_PIDFILE=/var/run/$BASE.pid
+# This is the pid file created/managed by start-stop-daemon
+DOCKER_SSD_PIDFILE=/var/run/$BASE-ssd.pid
+DOCKER_LOGFILE=/var/log/$BASE.log
+DOCKER_OPTS=
+DOCKER_DESC="Docker"
+
+# Get lsb functions
+. /lib/lsb/init-functions
+
+if [ -f /etc/default/$BASE ]; then
+	. /etc/default/$BASE
+fi
+
+# Check docker is present
+if [ ! -x $DOCKERD ]; then
+	log_failure_msg "$DOCKERD not present or not executable"
+	exit 1
+fi
+
+check_init() {
+	# see also init_is_upstart in /lib/lsb/init-functions (which isn't available in Ubuntu 12.04, or we'd use it directly)
+	if [ -x /sbin/initctl ] && /sbin/initctl version 2>/dev/null | grep -q upstart; then
+		log_failure_msg "$DOCKER_DESC is managed via upstart, try using service $BASE $1"
+		exit 1
+	fi
+}
+
+fail_unless_root() {
+	if [ "$(id -u)" != '0' ]; then
+		log_failure_msg "$DOCKER_DESC must be run as root"
+		exit 1
+	fi
+}
+
+cgroupfs_mount() {
+	# see also https://github.com/tianon/cgroupfs-mount/blob/master/cgroupfs-mount
+	if grep -v '^#' /etc/fstab | grep -q cgroup \
+		|| [ ! -e /proc/cgroups ] \
+		|| [ ! -d /sys/fs/cgroup ]; then
+		return
+	fi
+	if ! mountpoint -q /sys/fs/cgroup; then
+		mount -t tmpfs -o uid=0,gid=0,mode=0755 cgroup /sys/fs/cgroup
+	fi
+	(
+		cd /sys/fs/cgroup
+		for sys in $(awk '!/^#/ { if ($4 == 1) print $1 }' /proc/cgroups); do
+			mkdir -p $sys
+			if ! mountpoint -q $sys; then
+				if ! mount -n -t cgroup -o $sys cgroup $sys; then
+					rmdir $sys || true
+				fi
+			fi
+		done
+	)
+}
+
+case "$1" in
+	start)
+		check_init
+		
+		fail_unless_root
+
+		cgroupfs_mount
+
+		touch "$DOCKER_LOGFILE"
+		chgrp docker "$DOCKER_LOGFILE"
+
+		ulimit -n 1048576
+
+		# Having non-zero limits causes performance problems due to accounting overhead
+		# in the kernel. We recommend using cgroups to do container-local accounting.
+		if [ "$BASH" ]; then
+			ulimit -u unlimited
+		else
+			ulimit -p unlimited
+		fi
+
+		log_begin_msg "Starting $DOCKER_DESC: $BASE"
+		start-stop-daemon --start --background \
+			--no-close \
+			--exec "$DOCKERD" \
+			--pidfile "$DOCKER_SSD_PIDFILE" \
+			--make-pidfile \
+			-- \
+				-p "$DOCKER_PIDFILE" \
+				$DOCKER_OPTS \
+					>> "$DOCKER_LOGFILE" 2>&1
+		log_end_msg $?
+		;;
+
+	stop)
+		check_init
+		fail_unless_root
+		log_begin_msg "Stopping $DOCKER_DESC: $BASE"
+		start-stop-daemon --stop --pidfile "$DOCKER_SSD_PIDFILE" --retry 10
+		log_end_msg $?
+		;;
+
+	restart)
+		check_init
+		fail_unless_root
+		docker_pid=`cat "$DOCKER_SSD_PIDFILE" 2>/dev/null`
+		[ -n "$docker_pid" ] \
+			&& ps -p $docker_pid > /dev/null 2>&1 \
+			&& $0 stop
+		$0 start
+		;;
+
+	force-reload)
+		check_init
+		fail_unless_root
+		$0 restart
+		;;
+
+	status)
+		check_init
+		status_of_proc -p "$DOCKER_SSD_PIDFILE" "$DOCKERD" "$DOCKER_DESC"
+		;;
+
+	*)
+		echo "Usage: service docker {start|stop|restart|status}"
+		exit 1
+		;;
+esac
diff --git a/files/docker/docker.service.conf b/files/docker/docker.service.conf
index b124d94f70d1..e9ba55c8afa8 100644
--- a/files/docker/docker.service.conf
+++ b/files/docker/docker.service.conf
@@ -1,3 +1,3 @@
 [Service]
 ExecStart=
-ExecStart=/usr/bin/docker daemon -H fd:// --storage-driver=overlay --bip=240.127.1.1/24  --iptables=false
+ExecStart=/usr/bin/dockerd -H unix:// --storage-driver=overlay2 --bip=240.127.1.1/24  --iptables=false