diff --git a/dev.Dockerfile b/dev.Dockerfile
index 5cc1a3fd2..7751d7f2d 100644
--- a/dev.Dockerfile
+++ b/dev.Dockerfile
@@ -70,7 +70,13 @@ ARG NO_UI
 ARG CGO_ENABLED=1
 
 # Install dependencies and install/build lightning-terminal.
-RUN apk add --no-cache --update alpine-sdk make \
+# Note: When using `docker build`, setting the environmental variable
+# `DOCKER_BUILDKIT=1` is required to enable
+# [BuildKit](https://docs.docker.com/build/buildkit)
+# so that the cache mounts can be used.
+RUN --mount=type=cache,target=/go/pkg/mod \
+  --mount=type=cache,target=/root/.cache/go-build \
+  apk add --no-cache --update alpine-sdk make \
   && cd /go/src/github.com/lightninglabs/lightning-terminal \
   # If a custom lnd version is supplied, force it now.
   && if [ -n "$LND_VERSION" ]; then \
diff --git a/docs/release-notes/release-notes-0.16.0.md b/docs/release-notes/release-notes-0.16.0.md
index 4c3785ce0..d11385bde 100644
--- a/docs/release-notes/release-notes-0.16.0.md
+++ b/docs/release-notes/release-notes-0.16.0.md
@@ -17,6 +17,18 @@
 
 ### Functional Changes/Additions
 
+* `dev.Dockerfile` now uses 
+  [cache mounts](https://docs.docker.com/build/cache/optimize/#use-cache-mounts)
+  to cache the `GOMODCACHE` and `GOCACHE` directories so that dependencies don't
+  need to be re-downloaded and re-built every time the image is re-created.
+  As a result of this change, `dev.Dockerfile` now requires
+  [BuildKit](https://docs.docker.com/build/buildkit) to build. When using
+  `docker build`, this can be enabled by setting the environmental variable
+  `DOCKER_BUILDKIT=1`. BuildKit also does not unnecessarily rebuild images when
+  the build context is a remote git repository because COPY layers are more
+  smartly compared to cache.
+
+
 ### Technical and Architectural Updates
 
 ## RPC Updates
@@ -30,7 +42,11 @@ and also added coverage to verify support for channel versioning:
     - https://github.com/lightninglabs/lightning-terminal/pull/1106
     - https://github.com/lightninglabs/lightning-terminal/pull/1097
     - https://github.com/lightninglabs/lightning-terminal/pull/1138
- 
+
+- LND is now built with the `monitoring` tag enabled, which has been the default
+  in standalone LND release builds since
+  https://github.com/lightningnetwork/lnd/commit/8491d0da433c23051b723f4c018e2f041df548c8
+  .
 
 ### LND
 
diff --git a/make/compile_flags.mk b/make/compile_flags.mk
index 4d324dbc9..ce5fcbc27 100644
--- a/make/compile_flags.mk
+++ b/make/compile_flags.mk
@@ -1 +1 @@
-COMPILE_TAGS = autopilotrpc signrpc walletrpc chainrpc invoicesrpc watchtowerrpc neutrinorpc peersrpc kvdb_postgres kvdb_etcd kvdb_sqlite
\ No newline at end of file
+COMPILE_TAGS = autopilotrpc signrpc walletrpc chainrpc invoicesrpc watchtowerrpc neutrinorpc monitoring peersrpc kvdb_postgres kvdb_etcd kvdb_sqlite
\ No newline at end of file