diff --git a/backend/Dockerfile b/backend/Dockerfile
index b2b0e42..46d0c97 100755
--- a/backend/Dockerfile
+++ b/backend/Dockerfile
@@ -28,6 +28,9 @@ COPY reference_docs/ ./reference_docs/
 # Set reference docs path for container
 ENV REFERENCE_DOCS_PATH=/app/reference_docs
 
+# Set file storage path for container
+ENV FILE_STORAGE_PATH=/app/storage
+
 EXPOSE 8000
 
 CMD ["uvicorn", "app.main:app", "--host", "0.0.0.0", "--port", "8000"]
diff --git a/backend/app/websocket/handlers.py b/backend/app/websocket/handlers.py
index df7c4d5..b007d33 100755
--- a/backend/app/websocket/handlers.py
+++ b/backend/app/websocket/handlers.py
@@ -148,9 +148,9 @@ async def handle_analyze_message(
                         file_type=file_type,
                     )
 
-                    # Generate thumbnail for small files
+                    # Generate thumbnail for images up to 10MB (data URLs are ~33% larger than binary)
                     thumbnail_url = None
-                    if len(file_data) < 500000:  # < 500KB
+                    if len(file_data) < 10000000 and file_type.startswith('image/'):
                         thumbnail_url = await storage_service.generate_thumbnail_data_url(file_data, file_type)
 
                     # Save proof and version
diff --git a/docker-compose.yml b/docker-compose.yml
index 5963351..7b44d12 100755
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -29,6 +29,9 @@ services:
       - HOST=0.0.0.0
       - PORT=8000
       - DATABASE_URL=postgresql+asyncpg://${POSTGRES_USER:-modcomms}:${POSTGRES_PASSWORD:-modcomms_dev}@postgres:5432/${POSTGRES_DB:-modcomms}
+      - FILE_STORAGE_PATH=/app/storage
+    volumes:
+      - file_storage:/app/storage
     depends_on:
       postgres:
         condition: service_healthy
@@ -42,3 +45,4 @@ services:
 
 volumes:
   postgres_data:
+  file_storage:
diff --git a/frontend/services/apiService.ts b/frontend/services/apiService.ts
index a87dd5b..1220945 100755
--- a/frontend/services/apiService.ts
+++ b/frontend/services/apiService.ts
@@ -184,7 +184,7 @@ class ApiService {
 
     async getFile(storageKey: string): Promise<File> {
         const headers = await this.getHeaders();
-        const response = await fetch(`${API_URL}/api/files/${encodeURIComponent(storageKey)}`, { headers });
+        const response = await fetch(`${API_URL}/api/files/${storageKey}`, { headers });
         if (!response.ok) {
             throw new Error(`Failed to fetch file: HTTP ${response.status}`);
         }