diff --git a/extensions/sql-database-projects/src/models/deploy/deployService.ts b/extensions/sql-database-projects/src/models/deploy/deployService.ts
index 4690502451..2aedc77eb7 100644
--- a/extensions/sql-database-projects/src/models/deploy/deployService.ts
+++ b/extensions/sql-database-projects/src/models/deploy/deployService.ts
@@ -15,6 +15,11 @@ import * as os from 'os';
 import { ConnectionResult } from 'azdata';
 import * as templates from '../../templates/templates';
 
+interface DockerImageSpec {
+	label: string;
+	containerName: string;
+	tag: string
+}
 export class DeployService {
 
 	constructor(private _outputChannel: vscode.OutputChannel) {
@@ -94,6 +99,28 @@ export class DeployService {
 		}
 	}
 
+	public getDockerImageSpec(projectName: string, baseImage: string, imageUniqueId?: string): DockerImageSpec {
+
+		imageUniqueId = imageUniqueId ?? UUID.generateUuid();
+		// Remove unsupported characters
+		//
+
+		// docker image name and tag can only include letters, digits, underscore, period and dash
+		const regexForDockerImageName = /[^a-zA-Z0-9_,\-]/g;
+
+		let imageProjectName = projectName.replace(regexForDockerImageName, '');
+		const tagMaxLength = 128;
+		const tag = baseImage.replace(':', '-').replace(constants.sqlServerDockerRegistry, '').replace(regexForDockerImageName, '');
+
+		// cut the name if it's too long
+		//
+		imageProjectName = imageProjectName.substring(0, tagMaxLength - (constants.dockerImageNamePrefix.length + tag.length + 2));
+		const imageLabel = `${constants.dockerImageLabelPrefix}-${imageProjectName}`.toLocaleLowerCase();
+		const imageTag = `${constants.dockerImageNamePrefix}-${imageProjectName}-${tag}`.toLocaleLowerCase();
+		const dockerName = `${constants.dockerImageNamePrefix}-${imageProjectName}-${imageUniqueId}`.toLocaleLowerCase();
+		return { label: imageLabel, tag: imageTag, containerName: dockerName };
+	}
+
 	public async deploy(profile: IDeployProfile, project: Project): Promise<string | undefined> {
 		return await this.executeTask(constants.deployDbTaskName, async () => {
 			if (!profile.localDbSetting) {
@@ -102,9 +129,8 @@ export class DeployService {
 
 			await this.verifyDocker();
 
-			const projectName = project.projectFileName;
-			const imageLabel = `${constants.dockerImageLabelPrefix}_${projectName}`.toLocaleLowerCase();
-			const imageName = `${constants.dockerImageNamePrefix}-${projectName}-${UUID.generateUuid()}`.toLocaleLowerCase();
+			const imageSpec = this.getDockerImageSpec(project.projectFileName, profile.localDbSetting.dockerBaseImage);
+
 			const root = project.projectFolderPath;
 			const mssqlFolderPath = path.join(root, constants.mssqlFolderName);
 			const commandsFolderPath = path.join(mssqlFolderPath, constants.commandsFolderName);
@@ -112,8 +138,8 @@ export class DeployService {
 			const startFilePath = path.join(commandsFolderPath, constants.startCommandName);
 
 			// Clean up existing docker image
-			const containerIds = await this.getCurrentDockerContainer(imageLabel);
-			if (containerIds && containerIds.length > 0) {
+			const containerIds = await this.getCurrentDockerContainer(imageSpec.label);
+			if (containerIds.length > 0) {
 				const result = await vscode.window.showWarningMessage(constants.containerAlreadyExistForProject, constants.yesString, constants.noString);
 				if (result === constants.yesString) {
 					this.logToOutput(constants.cleaningDockerImagesMessage);
@@ -125,19 +151,19 @@ export class DeployService {
 			// Create commands
 			//
 
-			await this.createCommands(mssqlFolderPath, commandsFolderPath, dockerFilePath, startFilePath, imageLabel, profile.localDbSetting.dockerBaseImage);
+			await this.createCommands(mssqlFolderPath, commandsFolderPath, dockerFilePath, startFilePath, imageSpec.label, profile.localDbSetting.dockerBaseImage);
 
 			this.logToOutput(constants.runningDockerMessage);
 			// Building the image and running the docker
 			//
-			const createdDockerId: string | undefined = await this.buildAndRunDockerContainer(dockerFilePath, imageName, root, profile.localDbSetting, imageLabel);
+			const createdDockerId: string | undefined = await this.buildAndRunDockerContainer(dockerFilePath, imageSpec, root, profile.localDbSetting);
 			this.logToOutput(`Docker container created. Id: ${createdDockerId}`);
 
 
 			// Waiting a bit to make sure docker container doesn't crash
 			//
 			const runningDockerId = await utils.retry('Validating the docker container', async () => {
-				return await utils.executeCommand(`docker ps -q -a --filter label=${imageLabel} -q`, this._outputChannel);
+				return await utils.executeCommand(`docker ps -q -a --filter label=${imageSpec.label} -q`, this._outputChannel);
 			}, (dockerId) => {
 				return Promise.resolve({ validated: dockerId !== undefined, errorMessage: constants.dockerContainerNotRunningErrorMessage });
 			}, (dockerId) => {
@@ -161,7 +187,7 @@ export class DeployService {
 		});
 	}
 
-	private async buildAndRunDockerContainer(dockerFilePath: string, imageName: string, root: string, profile: ILocalDbSetting, imageLabel: string): Promise<string | undefined> {
+	private async buildAndRunDockerContainer(dockerFilePath: string, dockerImageSpec: DockerImageSpec, root: string, profile: ILocalDbSetting): Promise<string | undefined> {
 
 		// Sensitive data to remove from output console
 		const sensitiveData = [profile.password];
@@ -169,12 +195,12 @@ export class DeployService {
 		// Running commands to build the docker image
 		this.logToOutput('Building docker image ...');
 		await utils.executeCommand(`docker pull ${profile.dockerBaseImage}`, this._outputChannel);
-		await utils.executeCommand(`docker build -f ${dockerFilePath} -t ${imageName} ${root}`, this._outputChannel);
-		await utils.executeCommand(`docker images --filter label=${imageLabel}`, this._outputChannel);
+		await utils.executeCommand(`docker build -f ${dockerFilePath} -t ${dockerImageSpec.tag} ${root}`, this._outputChannel);
+		await utils.executeCommand(`docker images --filter label=${dockerImageSpec.label}`, this._outputChannel);
 
 		this.logToOutput('Running docker container ...');
-		await utils.executeCommand(`docker run -p ${profile.port}:1433 -e "MSSQL_SA_PASSWORD=${profile.password}" -d ${imageName}`, this._outputChannel, sensitiveData);
-		return await utils.executeCommand(`docker ps -q -a --filter label=${imageLabel} -q`, this._outputChannel);
+		await utils.executeCommand(`docker run -p ${profile.port}:1433 -e "MSSQL_SA_PASSWORD=${profile.password}" -d --name ${dockerImageSpec.containerName} ${dockerImageSpec.tag}`, this._outputChannel, sensitiveData);
+		return await utils.executeCommand(`docker ps -q -a --filter label=${dockerImageSpec.label} -q`, this._outputChannel);
 	}
 
 	private async getConnectionString(connectionUri: string): Promise<string | undefined> {
@@ -345,7 +371,7 @@ export class DeployService {
 		//
 		await this.createFile(startFilePath, 'echo starting the container!');
 		if (os.platform() !== 'win32') {
-			await utils.executeCommand(`chmod +x ${startFilePath}`, this._outputChannel);
+			await utils.executeCommand(`chmod +x '${startFilePath}'`, this._outputChannel);
 		}
 
 		// Create the Dockerfile
diff --git a/extensions/sql-database-projects/src/test/deploy/deployService.test.ts b/extensions/sql-database-projects/src/test/deploy/deployService.test.ts
index 8a03afd6f9..a420d1b54e 100644
--- a/extensions/sql-database-projects/src/test/deploy/deployService.test.ts
+++ b/extensions/sql-database-projects/src/test/deploy/deployService.test.ts
@@ -13,8 +13,9 @@ import * as vscode from 'vscode';
 import * as azdata from 'azdata';
 import * as childProcess from 'child_process';
 import { AppSettingType, IDeployProfile } from '../../models/deploy/deployProfile';
-let fse = require('fs-extra');
-let path = require('path');
+import * as UUID from 'vscode-languageclient/lib/utils/uuid';
+import * as fse from 'fs-extra';
+import * as path from 'path';
 import * as constants from '../../common/constants';
 
 export interface TestContext {
@@ -90,7 +91,7 @@ describe('deploy service', function (): void {
 
 	});
 
-	it('Should deploy fails if docker is not running', async function (): Promise<void> {
+	it('Should fail the deploy if docker is not running', async function (): Promise<void> {
 		const testContext = createContext();
 		const deployProfile: IDeployProfile = {
 			localDbSetting: {
@@ -248,4 +249,47 @@ describe('deploy service', function (): void {
 		await deployService.cleanDockerObjects(ids, ['docker stop', 'docker rm']);
 		should(process.calledThrice);
 	});
+
+	it('Should create docker image info correctly', () => {
+		const testContext = createContext();
+		const deployService = new DeployService(testContext.outputChannel);
+		const id = UUID.generateUuid().toLocaleLowerCase();
+		const baseImage = 'baseImage:latest';
+		const tag = baseImage.replace(':', '-').replace(constants.sqlServerDockerRegistry, '').replace(/[^a-zA-Z0-9_,\-]/g, '').toLocaleLowerCase();
+
+		should(deployService.getDockerImageSpec('project-name123_test', baseImage, id)).deepEqual({
+			label: `${constants.dockerImageLabelPrefix}-project-name123_test`,
+			containerName: `${constants.dockerImageNamePrefix}-project-name123_test-${id}`,
+			tag: `${constants.dockerImageNamePrefix}-project-name123_test-${tag}`
+		});
+		should(deployService.getDockerImageSpec('project-name1', baseImage, id)).deepEqual({
+			label: `${constants.dockerImageLabelPrefix}-project-name1`,
+			containerName: `${constants.dockerImageNamePrefix}-project-name1-${id}`,
+			tag: `${constants.dockerImageNamePrefix}-project-name1-${tag}`
+		});
+		should(deployService.getDockerImageSpec('project-name2$#', baseImage, id)).deepEqual({
+			label: `${constants.dockerImageLabelPrefix}-project-name2`,
+			containerName: `${constants.dockerImageNamePrefix}-project-name2-${id}`,
+			tag: `${constants.dockerImageNamePrefix}-project-name2-${tag}`
+		});
+		should(deployService.getDockerImageSpec('project - name3', baseImage, id)).deepEqual({
+			label: `${constants.dockerImageLabelPrefix}-project-name3`,
+			containerName: `${constants.dockerImageNamePrefix}-project-name3-${id}`,
+			tag: `${constants.dockerImageNamePrefix}-project-name3-${tag}`
+		});
+		should(deployService.getDockerImageSpec('project_name4', baseImage, id)).deepEqual({
+			label: `${constants.dockerImageLabelPrefix}-project_name4`,
+			containerName: `${constants.dockerImageNamePrefix}-project_name4-${id}`,
+			tag: `${constants.dockerImageNamePrefix}-project_name4-${tag}`
+		});
+
+
+		const reallyLongName = new Array(128 + 1).join('a').replace(/[^a-zA-Z0-9_,\-]/g, '');
+		const imageProjectName = reallyLongName.substring(0, 128 - (constants.dockerImageNamePrefix.length + tag.length + 2));
+		should(deployService.getDockerImageSpec(reallyLongName, baseImage, id)).deepEqual({
+			label: `${constants.dockerImageLabelPrefix}-${imageProjectName}`,
+			containerName: `${constants.dockerImageNamePrefix}-${imageProjectName}-${id}`,
+			tag: `${constants.dockerImageNamePrefix}-${imageProjectName}-${tag}`
+		});
+	});
 });