diff --git a/Dockerfile b/Dockerfile
index 59b7c99..67ccc9b 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -24,8 +24,8 @@ RUN apk add --no-cache \
     sed \
     coreutils
 
-# Add Rust musl target
-RUN rustup target add x86_64-unknown-linux-musl
+# Install musl-dev for Rust musl targeting (Alpine handles this differently than rustup)
+RUN apk add --no-cache musl-dev
 
 # Create non-root user for builds
 RUN adduser -D -s /bin/bash builder && \
@@ -34,9 +34,10 @@ RUN adduser -D -s /bin/bash builder && \
 # Set working directory
 WORKDIR /workspace
 
-# Set environment variables for static linking
-ENV RUSTFLAGS="-C target-feature=+crt-static"
-ENV CC_x86_64_unknown_linux_musl="musl-gcc"
+# Set environment variables for musl static linking with Alpine's Rust
+ENV RUSTFLAGS="-C target-feature=+crt-static -C linker=musl-gcc"
+ENV CC="musl-gcc"
+ENV TARGET_CC="musl-gcc"
 ENV CARGO_TARGET_X86_64_UNKNOWN_LINUX_MUSL_LINKER="musl-gcc"
 
 # Default to builder user
diff --git a/scripts/lib/components.sh b/scripts/lib/components.sh
index 560bef5..98a2000 100644
--- a/scripts/lib/components.sh
+++ b/scripts/lib/components.sh
@@ -234,22 +234,42 @@ function components_build_component() {
 function components_setup_rust_env() {
     section_header "Setting Up Rust Environment"
     
-    # Ensure musl target is installed
-    if ! rustup target list --installed | grep -q "$RUST_TARGET"; then
-        log_info "Installing Rust target: ${RUST_TARGET}"
-        safe_execute rustup target add "$RUST_TARGET"
+    # Check if we have rustup (Ubuntu/GitHub Actions) or system Rust (Alpine container)
+    if command_exists "rustup"; then
+        log_info "Using rustup for Rust toolchain management"
+        
+        # Ensure musl target is installed
+        if ! rustup target list --installed | grep -q "$RUST_TARGET"; then
+            log_info "Installing Rust target: ${RUST_TARGET}"
+            safe_execute rustup target add "$RUST_TARGET"
+        else
+            log_info "Rust target already installed: ${RUST_TARGET}"
+        fi
+        
+        # Set environment variables for rustup
+        export RUSTFLAGS="-C target-feature=+crt-static"
+        export CC_x86_64_unknown_linux_musl="musl-gcc"
+        export CARGO_TARGET_X86_64_UNKNOWN_LINUX_MUSL_LINKER="musl-gcc"
     else
-        log_info "Rust target already installed: ${RUST_TARGET}"
+        log_info "Using system Rust (Alpine) with musl"
+        
+        # Verify musl-gcc is available
+        if ! command_exists "musl-gcc"; then
+            log_error "musl-gcc not found. Install with: apk add musl-dev"
+            return 1
+        fi
+        
+        # Set environment variables for system Rust
+        export RUSTFLAGS="-C target-feature=+crt-static -C linker=musl-gcc"
+        export CC="musl-gcc"
+        export TARGET_CC="musl-gcc"
+        export CARGO_TARGET_X86_64_UNKNOWN_LINUX_MUSL_LINKER="musl-gcc"
     fi
     
-    # Set environment variables for static linking
-    export RUSTFLAGS="-C target-feature=+crt-static"
-    export CC_x86_64_unknown_linux_musl="musl-gcc"
-    export CARGO_TARGET_X86_64_UNKNOWN_LINUX_MUSL_LINKER="musl-gcc"
-    
     log_info "Rust environment configured for musl builds"
     log_info "RUST_TARGET: ${RUST_TARGET}"
     log_info "RUSTFLAGS: ${RUSTFLAGS}"
+    log_info "CC: ${CC:-system-default}"
 }
 
 # Build function for zinit (standard Rust build)