diff --git a/docker/vttestserver/Dockerfile.mysql57 b/docker/vttestserver/Dockerfile.mysql57
index 3ebed377933..20b25c8ae09 100644
--- a/docker/vttestserver/Dockerfile.mysql57
+++ b/docker/vttestserver/Dockerfile.mysql57
@@ -55,4 +55,7 @@ COPY --from=builder --chown=vitess:vitess /vt/install /vt
 VOLUME /vt/vtdataroot
 USER vitess
 
-CMD /vt/bin/vttestserver -port $PORT -keyspaces $KEYSPACES -num_shards $NUM_SHARDS -mysql_bind_host ${MYSQL_BIND_HOST:-127.0.0.1} -mysql_server_version ${MYSQL_SERVER_VERSION:-5.7.9-vitess}
+COPY docker/vttestserver/setup_vschema_folder.sh /vt/setup_vschema_folder.sh
+COPY docker/vttestserver/run.sh /vt/run.sh
+
+CMD /vt/run.sh "5.7.9-vitess"
diff --git a/docker/vttestserver/Dockerfile.mysql80 b/docker/vttestserver/Dockerfile.mysql80
index 71c0632c165..10c68e24e2b 100644
--- a/docker/vttestserver/Dockerfile.mysql80
+++ b/docker/vttestserver/Dockerfile.mysql80
@@ -55,4 +55,7 @@ COPY --from=builder --chown=vitess:vitess /vt/install /vt
 VOLUME /vt/vtdataroot
 USER vitess
 
-CMD /vt/bin/vttestserver -port $PORT -keyspaces $KEYSPACES -num_shards $NUM_SHARDS -mysql_bind_host ${MYSQL_BIND_HOST:-127.0.0.1} -mysql_server_version ${MYSQL_SERVER_VERSION:-8.0.21-vitess}
+COPY docker/vttestserver/setup_vschema_folder.sh /vt/setup_vschema_folder.sh
+COPY docker/vttestserver/run.sh /vt/run.sh
+
+CMD /vt/run.sh "8.0.21-vitess"
diff --git a/docker/vttestserver/run.sh b/docker/vttestserver/run.sh
new file mode 100755
index 00000000000..23de153459e
--- /dev/null
+++ b/docker/vttestserver/run.sh
@@ -0,0 +1,20 @@
+#!/bin/bash
+
+# Copyright 2021 The Vitess Authors.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+# Setup the Vschema Folder
+/vt/setup_vschema_folder.sh "$KEYSPACES" "$NUM_SHARDS"
+# Run the vttestserver binary
+/vt/bin/vttestserver -port "$PORT" -keyspaces "$KEYSPACES" -num_shards "$NUM_SHARDS" -mysql_bind_host "${MYSQL_BIND_HOST:-127.0.0.1}" -mysql_server_version "${MYSQL_SERVER_VERSION:-$1}" -vschema_ddl_authorized_users=% -schema_dir="/vt/schema/"
\ No newline at end of file
diff --git a/docker/vttestserver/setup_vschema_folder.sh b/docker/vttestserver/setup_vschema_folder.sh
new file mode 100755
index 00000000000..fcf1bf746f1
--- /dev/null
+++ b/docker/vttestserver/setup_vschema_folder.sh
@@ -0,0 +1,59 @@
+#!/bin/bash
+
+# Copyright 2021 The Vitess Authors.
+#
+# Licensed under the Apache License, Version 2.0 (the "License");
+# you may not use this file except in compliance with the License.
+# You may obtain a copy of the License at
+#
+#     http://www.apache.org/licenses/LICENSE-2.0
+#
+# Unless required by applicable law or agreed to in writing, software
+# distributed under the License is distributed on an "AS IS" BASIS,
+# WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+# See the License for the specific language governing permissions and
+# limitations under the License.
+
+# getLength gets the number of elements in a comma separated string
+function getLength() {
+  COUNT=0
+  for _ in ${1//,/ }
+  do
+    ((COUNT++))
+  done
+  echo "$COUNT"
+}
+
+# The first argument to the file is a comma separated list of keyspaces and the second argument is the comma separated list of number of shards.
+
+KEYSPACES="$1"
+NUM_SHARDS="$2"
+
+COUNT_KEYSPACES=$(getLength "$KEYSPACES")
+COUNT_NUM_SHARDS=$(getLength "$NUM_SHARDS")
+
+# Incase the number of keyspaces and num_shards do not match, throw an error
+if [ "$COUNT_KEYSPACES" != "$COUNT_NUM_SHARDS" ]; then
+    echo "Incompatible list of keyspaces and number of shards"
+    exit 1
+fi
+
+# Convert the strings to lists
+read -ra KEYSPACES_LIST <<<"${KEYSPACES//,/ }"
+read -ra NUM_SHARDS_LIST <<<"${NUM_SHARDS//,/ }"
+
+# create the main schema directory
+mkdir /vt/schema/
+
+i=0;
+for keyspace in "${KEYSPACES_LIST[@]}";
+do
+  # create a directory for each keyspace
+  mkdir "/vt/schema/$keyspace"
+  num_shard=${NUM_SHARDS_LIST[$i]}
+  # Create a vschema.json file only if the number of shards are more than 1
+  if [[ $num_shard -gt "1" ]]; then
+    printf "{\n\t\"sharded\": true\n}" > "/vt/schema/$keyspace/vschema.json"
+  fi
+  ((i++))
+done