diff --git a/python-sdk/.dockerignore b/python-sdk/.dockerignore
new file mode 100644
index 0000000000..73576ad75f
--- /dev/null
+++ b/python-sdk/.dockerignore
@@ -0,0 +1,13 @@
+.coverage
+.env
+.git
+.idea
+.mypy_cache
+.nox
+.pytest_cache
+__pycache__
+docs
+example_dags
+mk
+tests
+dev/logs
diff --git a/python-sdk/Makefile b/python-sdk/Makefile
index ae0112ca86..8e8403d279 100644
--- a/python-sdk/Makefile
+++ b/python-sdk/Makefile
@@ -17,5 +17,11 @@ local: ## Set up local dev env
 run-local-lineage-server: ## Run flask based local Lineage server
 	FLASK_APP=dev/local_flask_lineage_server.py flask run --host 0.0.0.0 --port 5050
 
+tilt-up: ## Set up local dev env with Tilt
+	tilt up
+
+tilt-down: ## Tear down local dev env with Tilt
+	tilt down
+
 help:
 	@grep -E '^[a-zA-Z_-]+:.*?## .*$$' $(MAKEFILE_LIST) | sort | awk 'BEGIN {FS = ":.*?## "}; {printf "\033[36m%-41s\033[0m %s\n", $$1, $$2}'
diff --git a/python-sdk/Tiltfile b/python-sdk/Tiltfile
new file mode 100644
index 0000000000..d357709c6b
--- /dev/null
+++ b/python-sdk/Tiltfile
@@ -0,0 +1,16 @@
+docker_compose('dev/docker-compose.yaml')
+
+docker_build(
+  # Image name - must match the image in the docker-compose file
+  'astro-sdk-dev',
+  # Docker context
+  '.',
+  # Dockerfile
+  dockerfile = 'dev/Dockerfile',
+  live_update = [
+    sync('./pyproject.toml', '/usr/local/airflow/astro_sdk/pyproject.toml'),
+    sync('./src', '/usr/local/airflow/astro_sdk/src'),
+    run('cd /usr/local/airflow/astro_sdk && pip install -e ".[all,tests,doc]"', trigger='pyproject.toml'),
+    restart_container(),
+  ]
+)
diff --git a/python-sdk/docs/development/DEVELOPMENT.md b/python-sdk/docs/development/DEVELOPMENT.md
index 984352ea42..d22c5a29c7 100644
--- a/python-sdk/docs/development/DEVELOPMENT.md
+++ b/python-sdk/docs/development/DEVELOPMENT.md
@@ -191,6 +191,8 @@ You can configure the Docker-based testing environment to test your DAG
 * `make container target=restart` - To restart Scheduler & Triggerer containers
 * `make container target=restart-all` - To restart all the containers
 * `make container target=shell` - To run bash/shell within a container (Allows interactive session)
+* `make tilt-up` - To run Tilt (https://tilt.dev/) for local development
+* `make tilt-down` - To stop Tilt
 
 1. Following ports are accessible from the host machine: