diff --git a/build.assets/Dockerfile b/build.assets/Dockerfile
index 3ea95530efde6..4ab637440417c 100644
--- a/build.assets/Dockerfile
+++ b/build.assets/Dockerfile
@@ -7,6 +7,12 @@
 # teleport built on any newer Ubuntu version will not run on Centos 7 because
 # of this.
 
+# GRPC_NODE_PLUGIN_BINARY_TYPE has to be defined above the first FROM as it's
+# used in another FROM instruction. See the comment for grpc_node_plugin image
+# for more details.
+# Valid values are "prebuilt" and "compiled".
+ARG GRPC_NODE_PLUGIN_BINARY_TYPE
+
 ## LIBFIDO2 ###################################################################
 
 # Build libfido2 separately for isolation, speed and flexibility.
@@ -50,6 +56,33 @@ RUN git clone --depth=1 https://github.com/Yubico/libfido2.git -b 1.12.0 && \
     make install  && \
     make clean
 
+## GRPC_NODE_PLUGIN ###########################################################
+
+# grpc_node_plugin is built only on arm64.
+#
+# To generate JS protofiles, we need the grpc-tools npm package. Unfortunately,
+# it doesn't ship with a prebuilt grpc_node_plugin binary for Linux arm64. [1]
+#
+# We have to build it from source. Cloning all submodules takes a lot of time
+# and bandwith so we build the binary in a separate image.
+#
+# [1] https://github.com/grpc/grpc-node/issues/1405#issuecomment-1282201879
+
+FROM buildpack-deps:18.04 AS grpc_node_plugin
+RUN apt-get update && \
+    apt-get install -y --no-install-recommends cmake
+COPY teleterm_linux_arm64.toolchain.cmake ./linux_arm64.toolchain.cmake
+RUN git clone --depth=1 --branch=grpc-tools@1.11.2 https://github.com/grpc/grpc-node.git && \
+    mv linux_arm64.toolchain.cmake grpc-node/packages/grpc-tools/. && \
+    cd grpc-node && \
+    git submodule update --init --recursive && \
+    cd packages/grpc-tools && \
+    cmake -DCMAKE_TOOLCHAIN_FILE=linux_arm64.toolchain.cmake . && \
+    cmake --build . --target clean && cmake --build . --target grpc_node_plugin -- -j 12 && \
+    mv grpc_node_plugin ../../../. && \
+    cd ../../.. && \
+    rm -rf grpc-node
+
 ## BUILDBOX ###################################################################
 #
 # Image layers are ordered according to how slow that layer takes to build and
@@ -119,6 +152,8 @@ RUN apt-get -y update && \
         python3-setuptools \
         python3-wheel \
         pkg-config \
+        # Used during tag builds to build the RPM package of Connect.
+        rpm \
         shellcheck \
         softhsm2 \
         sudo \
@@ -173,16 +208,16 @@ RUN curl --proto '=https' --tlsv1.2 -sSf https://sh.rustup.rs | sh -s -- -y --pr
 # user.
 USER root
 
-# Install Nodejs
+# Install Node.js
 ARG NODE_VERSION
 ENV NODE_URL="https://nodejs.org/dist/v${NODE_VERSION}/node-v${NODE_VERSION}-linux-${BUILDARCH}.tar.xz"
 ENV NODE_PATH="/usr/local/lib/nodejs-linux"
 ENV PATH="$PATH:${NODE_PATH}/bin"
 RUN export NODE_ARCH=$(if [ "$BUILDARCH" = "amd64" ]; then echo "x64"; else echo "arm64"; fi) && \
-     export NODE_URL="https://nodejs.org/dist/v${NODE_VERSION}/node-v${NODE_VERSION}-linux-${NODE_ARCH}.tar.xz" && \
-     mkdir -p ${NODE_PATH} && \
-     curl -o /tmp/nodejs.tar.xz -L ${NODE_URL} && \
-     tar -xJf /tmp/nodejs.tar.xz -C /usr/local/lib/nodejs-linux --strip-components=1
+    export NODE_URL="https://nodejs.org/dist/v${NODE_VERSION}/node-v${NODE_VERSION}-linux-${NODE_ARCH}.tar.xz" && \
+    mkdir -p ${NODE_PATH} && \
+    curl -o /tmp/nodejs.tar.xz -L ${NODE_URL} && \
+    tar -xJf /tmp/nodejs.tar.xz -C /usr/local/lib/nodejs-linux --strip-components=1
 RUN corepack enable yarn
 
 # Install Go.
@@ -240,6 +275,8 @@ RUN (git clone https://github.com/gogo/protobuf.git ${GOPATH}/src/github.com/gog
      git reset --hard ${GOGO_PROTO_TAG} && \
      make install)
 ENV PROTO_INCLUDE "/usr/local/include":"/go/src":"/go/src/github.com/gogo/protobuf/protobuf":"${GOGOPROTO_ROOT}":"${GOGOPROTO_ROOT}/protobuf"
+# Install protoc-gen-go for lib/teleterm as #17267 and #17302 were not backported to v10.
+RUN go install github.com/golang/protobuf/protoc-gen-go@v1.4.3
 
 # Install addlicense.
 RUN go install github.com/google/addlicense@v1.0.0
@@ -261,7 +298,7 @@ RUN BIN="/usr/local/bin" && \
       chmod +x "${BIN}/buf"
 
 # Copy libfido2 libraries.
-# Do this last to take better advantage of the multi-stage build.
+# Do this near the end to take better advantage of the multi-stage build.
 COPY --from=libfido2 /usr/local/include/ /usr/local/include/
 COPY --from=libfido2 /usr/local/lib/pkgconfig/ /usr/local/lib/pkgconfig/
 COPY --from=libfido2 \
@@ -276,5 +313,22 @@ RUN cd /usr/local/lib && \
     ldconfig
 COPY pkgconfig/buildbox/ /
 
+# Install JS gRPC tools
+RUN (npm install --global grpc_tools_node_protoc_ts@5.0.1)
+
+FROM buildbox AS grpc_node_plugin_binary_prebuilt
+ONBUILD RUN (npm install --global grpc-tools@1.11.2)
+
+FROM buildbox AS grpc_node_plugin_binary_compiled
+COPY --from=grpc_node_plugin grpc_node_plugin ./grpc_node_plugin
+ONBUILD RUN npm install --global --ignore-scripts grpc-tools@1.11.2 && \
+    mv grpc_node_plugin $(npm root -g)/grpc-tools/bin/. && \
+    # grpc-tools needs protoc but we already install it a couple of steps above.
+    ln -s $(which protoc) $(npm root -g)/grpc-tools/bin/protoc
+
+# A "conditional" FROM like this breaks up the number of steps in the progress bar of the given
+# image, so let's use it at the end. This way the progress bar for buildbox stays mostly untouched.
+FROM grpc_node_plugin_binary_${GRPC_NODE_PLUGIN_BINARY_TYPE} as buildbox
+
 VOLUME ["/go/src/github.com/gravitational/teleport"]
 EXPOSE 6600 2379 2380
diff --git a/build.assets/Makefile b/build.assets/Makefile
index ce9383b340261..26a95b7db7621 100644
--- a/build.assets/Makefile
+++ b/build.assets/Makefile
@@ -127,6 +127,7 @@ buildbox:
 			--build-arg GOLANG_VERSION=$(GOLANG_VERSION) \
 			--build-arg RUST_VERSION=$(RUST_VERSION) \
 			--build-arg NODE_VERSION=$(NODE_VERSION) \
+			--build-arg GRPC_NODE_PLUGIN_BINARY_TYPE=$(GRPC_NODE_PLUGIN_BINARY_TYPE) \
 			--build-arg PROTOC_VER=$(PROTOC_VER) \
 			--build-arg GOGO_PROTO_TAG=$(GOGO_PROTO_TAG) \
 			--build-arg LIBBPF_VERSION=$(LIBBPF_VERSION) \
@@ -214,33 +215,17 @@ buildbox-arm-fips: buildbox-fips
 		--cache-from $(BUILDBOX_ARM_FIPS) \
 		--tag $(BUILDBOX_ARM_FIPS) -f Dockerfile-arm-fips .
 
-#
-# Builds a Docker buildbox which has tools needed to install grpc-tools npm package on arm64.
-# See the `grpc-teleterm` target in the main Makefile for more details.
-#
-.PHONY:buildbox-teleterm
-buildbox-teleterm: buildbox
-	@if [[ $${DRONE} == "true" ]] && ! docker inspect --type=image $(BUILDBOX_TELETERM) 2>&1 >/dev/null; then docker pull $(BUILDBOX_TELETERM) || true; fi;
-	docker build \
-		--build-arg BUILDBOX_VERSION=$(BUILDBOX_VERSION) \
-		--build-arg NODE_VERSION=$(NODE_VERSION) \
-		--build-arg BUILDARCH=$(RUNTIME_ARCH) \
-		--build-arg GRPC_NODE_PLUGIN_BINARY_TYPE=$(GRPC_NODE_PLUGIN_BINARY_TYPE) \
-		--cache-from $(BUILDBOX) \
-		--cache-from $(BUILDBOX_TELETERM) \
-		--tag $(BUILDBOX_TELETERM) -f Dockerfile-teleterm .
-
 CONNECT_VERSION ?= $(VERSION)
 ifeq ($(CONNECT_VERSION),)
 CONNECT_VERSION := $(BUILDBOX_VERSION)-dev
 endif
 
 #
-# Builds Teleport Connect inside the buildbox-teleterm container.
+# Builds Teleport Connect inside the buildbox container.
 #
 .PHONY:teleterm
-teleterm: buildbox-teleterm
-	docker run $(DOCKERFLAGS) $(NOROOT) $(BUILDBOX_TELETERM) \
+teleterm: buildbox
+	docker run $(DOCKERFLAGS) $(NOROOT) $(BUILDBOX) \
 		bash -c "cd $(SRCDIR) && export CONNECT_TSH_BIN_PATH=\$$PWD/../teleport/build/tsh && yarn install --frozen-lockfile && yarn build-term && yarn package-term -c.extraMetadata.version=$(CONNECT_VERSION)"
 
 # Builds webassets inside Docker.
@@ -253,16 +238,9 @@ ui: buildbox
 .PHONY: grpc
 grpc: buildbox
 	docker run \
-		$(DOCKERFLAGS) -e CLANG_FORMAT=/usr/bin/clang-format-10 -t $(BUILDBOX) \
+		$(DOCKERFLAGS) -t $(BUILDBOX) \
 		make -C /go/src/github.com/gravitational/teleport grpc/host
 
-# grpc-teleterm generates GRPC stubs for Teleterm from inside buildbox-teleterm
-.PHONY: grpc-teleterm
-grpc-teleterm: buildbox-teleterm
-	docker run \
-		$(DOCKERFLAGS) -e CLANG_FORMAT=/usr/bin/clang-format-10 -t $(BUILDBOX_TELETERM) \
-		make -C /go/src/github.com/gravitational/teleport grpc-teleterm/host
-
 # protos-up-to-date checks if GRPC stubs are up to date from inside the buildbox
 .PHONY: protos-up-to-date
 protos-up-to-date: buildbox
@@ -381,14 +359,6 @@ enter/centos7: buildbox
 	docker run $(DOCKERFLAGS) -ti $(NOROOT) \
 		-e HOME=$(SRCDIR)/build.assets -w $(SRCDIR) $(BUILDBOX_CENTOS7) /bin/bash
 
-#
-# Starts shell inside the teleterm container
-#
-.PHONY:enter/teleterm
-enter/teleterm: buildbox-teleterm
-	docker run $(DOCKERFLAGS) -ti $(NOROOT) \
-		-e HOME=$(SRCDIR)/build.assets -w $(SRCDIR) $(BUILDBOX_TELETERM) /bin/bash
-
 #
 # Create a Teleport package using the build container.
 # Don't use this target directly; call named Makefile targets like release-amd64.