diff --git a/default.nix b/default.nix
index 072d080..10118db 100644
--- a/default.nix
+++ b/default.nix
@@ -30,6 +30,44 @@
 }:
 
 let
+  # Camera SDK derivation - extracts and installs the SDK
+  camera-sdk = pkgs.stdenv.mkDerivation {
+    pname = "mindvision-camera-sdk";
+    version = "2.1.0.49";
+    
+    src = ./usda-vision/camera-management-api/camera_sdk/linuxSDK_V2.1.0.49(250108).tar.gz;
+    
+    nativeBuildInputs = [ pkgs.makeWrapper ];
+    buildInputs = [ pkgs.libusb1 ];
+    
+    unpackPhase = ''
+      tar xzf $src
+      cd "linuxSDK_V2.1.0.49(250108)"
+    '';
+    
+    installPhase = ''
+      mkdir -p $out/lib $out/include
+      
+      # Copy library files
+      if [ -d lib ]; then
+        cp -r lib/* $out/lib/ || true
+      fi
+      
+      # Copy header files
+      if [ -d include ]; then
+        cp -r include/* $out/include/ || true
+      fi
+      
+      # Make libraries executable
+      chmod +x $out/lib/*.so* 2>/dev/null || true
+    '';
+    
+    meta = {
+      description = "MindVision Camera SDK";
+      platforms = pkgs.lib.platforms.linux;
+    };
+  };
+  
   # Create a derivation that packages the usda-vision directory
   usda-vision-app = pkgs.stdenv.mkDerivation {
     pname = "usda-vision";
@@ -64,21 +102,58 @@ let
       echo "Source directory contents:"
       ls -la $src/ || true
       
-      # Process docker-compose.yml first and create it in a temp location
-      # Replace .env paths, volume mount paths, and hostnames
+      # Process docker-compose.yml - replace paths, hostnames, and configure SDK from Nix
       if [ -f $src/docker-compose.yml ]; then
-        ${pkgs.gnused}/bin/sed \
-          -e 's|env_file:.*management-dashboard-web-app/\.env|env_file: /var/lib/usda-vision/.env|g' \
-          -e 's|\./management-dashboard-web-app/\.env|/var/lib/usda-vision/.env|g' \
-          -e 's|\./management-dashboard-web-app|/var/lib/usda-vision/management-dashboard-web-app|g' \
-          -e 's|\./media-api|/var/lib/usda-vision/media-api|g' \
-          -e 's|\./video-remote|/var/lib/usda-vision/video-remote|g' \
-          -e 's|\./scheduling-remote|/var/lib/usda-vision/scheduling-remote|g' \
-          -e 's|\./vision-system-remote|/var/lib/usda-vision/vision-system-remote|g' \
-          -e 's|\./camera-management-api|/var/lib/usda-vision/camera-management-api|g' \
-          -e 's|exp-dash|192.168.1.156|g' \
-          -e 's|localhost|192.168.1.156|g' \
-          $src/docker-compose.yml > $TMPDIR/docker-compose.yml
+        # Use Python for multi-line block removal
+        ${pkgs.python3}/bin/python3 <<PYTHON_SCRIPT > $TMPDIR/docker-compose.yml
+import re
+
+with open('$src/docker-compose.yml', 'r') as f:
+    content = f.read()
+
+# Replace paths and hostnames
+replacements = [
+    (r'env_file:.*management-dashboard-web-app/\\.env', 'env_file: /var/lib/usda-vision/.env'),
+    (r'\\./management-dashboard-web-app/\\.env', '/var/lib/usda-vision/.env'),
+    (r'\\./management-dashboard-web-app', '/var/lib/usda-vision/management-dashboard-web-app'),
+    (r'\\./media-api', '/var/lib/usda-vision/media-api'),
+    (r'\\./video-remote', '/var/lib/usda-vision/video-remote'),
+    (r'\\./scheduling-remote', '/var/lib/usda-vision/scheduling-remote'),
+    (r'\\./vision-system-remote', '/var/lib/usda-vision/vision-system-remote'),
+    (r'\\./camera-management-api', '/var/lib/usda-vision/camera-management-api'),
+    ('exp-dash', '192.168.1.156'),
+    ('localhost', '192.168.1.156'),
+    ('LD_LIBRARY_PATH=/usr/local/lib:/lib:/usr/lib', 'LD_LIBRARY_PATH=/lib/camera-sdk:/usr/local/lib:/lib:/usr/lib'),
+]
+
+for pattern, replacement in replacements:
+    content = re.sub(pattern, replacement, content)
+
+# Add SDK volume mount after timezone mount
+content = re.sub(
+    r'(      - /etc/timezone:/etc/timezone:ro)',
+    r'\\1\\n      - \${camera-sdk}/lib:/lib/camera-sdk:ro',
+    content
+)
+
+# Remove SDK installation blocks (first block)
+content = re.sub(
+    r' # Only install system packages if not already installed.*?else\\n.*?echo.*?System dependencies already installed.*?fi\\n',
+    '',
+    content,
+    flags=re.DOTALL
+)
+
+# Remove SDK installation blocks (second block)
+content = re.sub(
+    r'        # Install camera SDK if not already installed.*?fi;\\n',
+    '',
+    content,
+    flags=re.DOTALL
+)
+
+print(content, end='')
+PYTHON_SCRIPT
       fi
       
       # Copy all application files using rsync with chmod, excluding files we'll provide separately
@@ -155,9 +230,17 @@ in
       # Supabase
       supabase-cli
       
+      # Camera SDK
+      camera-sdk
+      
       # USDA Vision application package with convenience scripts
       usda-vision-app
     ];
+    
+    # Make camera SDK libraries available system-wide
+    environment.variables = {
+      LD_LIBRARY_PATH = "${camera-sdk}/lib";
+    };
 
     # Enable Docker service with LXC-compatible settings
     virtualisation.docker = {