diff --git a/dogfood/coder/main.tf b/dogfood/coder/main.tf
index 5bf9e682bbf43..e9df01a4a12f3 100644
--- a/dogfood/coder/main.tf
+++ b/dogfood/coder/main.tf
@@ -425,10 +425,16 @@ resource "docker_container" "workspace" {
# CPU limits are unnecessary since Docker will load balance automatically
memory = data.coder_workspace_owner.me.name == "code-asher" ? 65536 : 32768
runtime = "sysbox-runc"
- # Ensure the workspace is given time to execute shutdown scripts.
- destroy_grace_seconds = 60
- stop_timeout = 60
+
+ # Ensure the workspace is given time to:
+ # - Execute shutdown scripts
+ # - Stop the in workspace Docker daemon
+ # - Stop the container, especially when using devcontainers,
+ # deleting the overlay filesystem can take a while.
+ destroy_grace_seconds = 300
+ stop_timeout = 300
stop_signal = "SIGINT"
+
env = [
"CODER_AGENT_TOKEN=${coder_agent.dev.token}",
"USE_CAP_NET_ADMIN=true",
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