diff --git a/lua/remote-nvim/providers/devpod/devpod_provider.lua b/lua/remote-nvim/providers/devpod/devpod_provider.lua
index 08b04d68..30bb5337 100644
--- a/lua/remote-nvim/providers/devpod/devpod_provider.lua
+++ b/lua/remote-nvim/providers/devpod/devpod_provider.lua
@@ -158,7 +158,11 @@ function DevpodProvider:_handle_provider_setup()
   if self._devpod_provider then
     self.local_provider:run_command(
       ("%s provider list --output json"):format(remote_nvim.config.devpod.binary),
-      ("Checking if the %s provider is present"):format(self._devpod_provider)
+      ("Checking if the %s provider is present"):format(self._devpod_provider),
+      nil,
+      nil,
+      false,
+      false
     )
     local stdout = self.local_provider.executor:job_stdout()
     local provider_list_output = vim.json.decode(vim.tbl_isempty(stdout) and "{}" or table.concat(stdout, "\n"))
diff --git a/lua/remote-nvim/providers/executor.lua b/lua/remote-nvim/providers/executor.lua
index d73336eb..61a867dd 100644
--- a/lua/remote-nvim/providers/executor.lua
+++ b/lua/remote-nvim/providers/executor.lua
@@ -11,6 +11,7 @@ local Executor = require("remote-nvim.middleclass")("Executor")
 ---@field additional_opts? string[] Additional options to pass to the `tar` command. See `man tar` for possible options
 
 ---@class remote-nvim.provider.Executor.JobOpts
+---@field pty boolean? Whether to set pty option
 ---@field additional_conn_opts string? Connection options
 ---@field stdout_cb function? Standard output callback
 ---@field exit_cb function? On exit callback
@@ -76,7 +77,7 @@ function Executor:run_executor_job(command, job_opts)
 
   self:reset() -- Reset job internal state variables
   self._job_id = vim.fn.jobstart(command, {
-    pty = true,
+    pty = job_opts.pty == nil or job_opts.pty,
     on_stdout = function(_, data_chunk)
       self:process_stdout(data_chunk, job_opts.stdout_cb)
     end,
diff --git a/lua/remote-nvim/providers/provider.lua b/lua/remote-nvim/providers/provider.lua
index d55dc026..2486b97c 100644
--- a/lua/remote-nvim/providers/provider.lua
+++ b/lua/remote-nvim/providers/provider.lua
@@ -1,7 +1,7 @@
 ---@alias provider_type "ssh"|"devpod"|"local"
 ---@alias os_type "macOS"|"Windows"|"Linux"
 ---@alias arch_type "x86_64"|"arm64"
----@alias neovim_install_method "binary"|"source"|"system"
+---@alias neovim_install_method "binary"|"tarball"|"source"|"system"
 
 ---@class remote-nvim.providers.WorkspaceConfig
 ---@field provider provider_type? Which provider is responsible for managing this workspace
@@ -17,6 +17,7 @@
 ---@field client_auto_start boolean? Flag indicating if the client should be auto started or not
 ---@field offline_mode boolean? Should we operate in offline mode
 ---@field devpod_source_opts remote-nvim.providers.DevpodSourceOpts? Devpod related source options
+---@field is_docker_container boolean? Flag indicating if the remote is running in a Docker container
 
 ---@class remote-nvim.providers.Provider: remote-nvim.Object
 ---@field host string Host name
@@ -175,6 +176,18 @@ function Provider:_setup_workspace_variables()
       self._host_config.neovim_install_method = "source"
       prompt_title = "Binary release not available. Choose Neovim version to install"
     end
+
+    -- Check if remote is running in Docker container and override install method
+    local is_docker = self:_is_remote_docker_container()
+    if is_docker and self._host_config.neovim_install_method == "binary" then
+      self._host_config.neovim_install_method = "tarball"
+      prompt_title = "Docker container detected. Choose Neovim version to install (using tarball)"
+      self.logger.info("Overriding install method from 'binary' to 'tarball' due to Docker container detection")
+    end
+
+    -- Store Docker detection result for future reference
+    self._host_config.is_docker_container = is_docker
+
     self._remote_neovim_install_method = self._host_config.neovim_install_method
     self._host_config.neovim_version = self:_get_remote_neovim_version_preference(prompt_title)
 
@@ -186,6 +199,7 @@ function Provider:_setup_workspace_variables()
     self._config_provider:update_workspace_config(self.unique_host_id, {
       neovim_install_method = self._host_config.neovim_install_method,
       neovim_version = self._host_config.neovim_version,
+      is_docker_container = self._host_config.is_docker_container,
     })
   end
   self._remote_neovim_version = self._host_config.neovim_version
@@ -358,6 +372,34 @@ function Provider:_get_remote_os_and_arch()
   return self._remote_os, self._remote_arch
 end
 
+---@private
+---Detect if the remote host is running in a Docker container
+---@return boolean is_docker True if running in Docker container
+function Provider:_is_remote_docker_container()
+  -- Check multiple indicators of container environment
+  local docker_checks = {
+    "test -f /.dockerenv", -- Standard Docker indicator file
+    "test -f /run/.containerenv", -- Standard Podman indicator file
+    'test -n "${container}"', -- Container environment variable
+    "grep -q 'docker\\|lxc' /proc/1/cgroup 2>/dev/null", -- Process cgroup check
+    "test -f /proc/self/mountinfo && grep -q 'docker' /proc/self/mountinfo 2>/dev/null", -- Mount info check
+  }
+
+  local check_cmd = table.concat(docker_checks, " || ")
+  local full_cmd = ("(%s) && echo 'DOCKER_DETECTED' || echo 'NOT_DOCKER'"):format(check_cmd)
+
+  self:run_command(full_cmd, "Checking if remote environment is a Docker container")
+  local cmd_output = self.executor:job_stdout()
+  local result = cmd_output[#cmd_output] or ""
+
+  local is_docker = result:find("DOCKER_DETECTED") ~= nil
+  if is_docker then
+    self.logger.info("Docker container detected on remote host - will use tarball installation instead of AppImage")
+  end
+
+  return is_docker
+end
+
 ---@private
 ---Get user's home directory on the remote host
 ---@return string home_path User's home directory path
@@ -655,7 +697,7 @@ function Provider:_setup_remote()
       )
       local local_upload_paths = { local_release_path }
 
-      if self._remote_neovim_install_method == "binary" then
+      if self._remote_neovim_install_method == "binary" or self._remote_neovim_install_method == "tarball" then
         table.insert(local_upload_paths, ("%s.sha256sum"):format(local_release_path))
       end
       self:upload(
@@ -1016,7 +1058,8 @@ end
 ---@param extra_opts string? Extra options to pass to the underlying command
 ---@param exit_cb function? Exit callback to execute
 ---@param on_local_executor boolean? Should run this command on the local executor
-function Provider:run_command(command, desc, extra_opts, exit_cb, on_local_executor)
+---@param pty boolean? Whether to use pty or not
+function Provider:run_command(command, desc, extra_opts, exit_cb, on_local_executor, pty)
   self.logger.fmt_debug("[%s][%s] Running %s", self.provider_type, self.unique_host_id, command)
   on_local_executor = on_local_executor or false
   local executor = on_local_executor and self.local_executor or self.executor
@@ -1033,6 +1076,7 @@ function Provider:run_command(command, desc, extra_opts, exit_cb, on_local_execu
     exit_cb = exit_cb(section_node)
   end
   executor:run_command(command, {
+    pty = pty == nil or pty,
     additional_conn_opts = extra_opts,
     exit_cb = exit_cb,
     stdout_cb = self:_get_stdout_fn_for_node(section_node),
diff --git a/scripts/neovim_download.sh b/scripts/neovim_download.sh
index e12e154f..6707e15b 100755
--- a/scripts/neovim_download.sh
+++ b/scripts/neovim_download.sh
@@ -19,7 +19,7 @@ Options:
   -v       Specify the desired Neovim version to download.
   -d       Specify directory inside which Neovim release should be downloaded.
   -o       OS whose binary is to be downloaded.
-  -t       What to download: 'binary' or 'source'
+  -t       What to download: 'binary', 'tarball' or 'source'
   -a       Specify architecture that should be downloaded.
   -h       Display this help message and exit.
 EOM
@@ -67,6 +67,39 @@ function download_neovim_source() {
 	info "Downloaded Neovim source version ${version} to ${download_path}"
 }
 
+# Download Neovim tarball
+function download_neovim_tarball() {
+	local os="$1" version="$2" download_dir="$3" arch_type="$4"
+
+	local download_url
+	local download_path
+	local checksum_path
+	local expected_checksum
+	local actual_checksum
+	download_url=$(safe_subshell build_tarball_github_uri "$version" "$os" "$arch_type")
+	download_path="$download_dir/$(basename "$download_url")"
+
+	checksum_path="$download_path".sha256sum
+	actual_checksum="$expected_checksum-actual" # This ensures that they do not match
+	expected_checksum=$(safe_subshell get_tarball_sha256 "$version" "$os" "$arch_type")
+
+	if [ -e "$download_path" ] && [ -e "$checksum_path" ]; then
+		expected_checksum=$(<"$checksum_path")
+		actual_checksum=$(sha256sum "$download_path" | cut -d ' ' -f 1)
+	fi
+
+	if [ "$actual_checksum" == "$expected_checksum" ]; then
+		info "Existing installation with matching checksum found. Skipping downloading..."
+		return 0
+	fi
+
+	download_file "$download_url" "$download_path"
+	info "Downloaded Neovim tarball ${version} for ${os} (${arch_type}) to ${download_path}"
+
+	# Save checksum for future verification
+	echo "$expected_checksum" >"$checksum_path"
+}
+
 # Parse command-line options
 while getopts "v:d:o:t:a:h" opt; do
 	case $opt in
@@ -129,8 +162,10 @@ fi
 
 if [[ $download_type == "source" ]]; then
 	download_neovim_source "$nvim_version" "$download_dir"
+elif [[ $download_type == "tarball" ]]; then
+	download_neovim_tarball "$os_name" "$nvim_version" "$download_dir" "$arch_type"
 elif [[ $download_type == "system" ]]; then
-	error "Cannot download a system-type Neovim release. Choose from either 'source' or 'binary'."
+	error "Cannot download a system-type Neovim release. Choose from 'source', 'binary', or 'tarball'."
 	exit 1
 else
 	download_neovim "$os_name" "$nvim_version" "$download_dir" "$arch_type"
diff --git a/scripts/neovim_install.sh b/scripts/neovim_install.sh
index 9644a4d9..5c14dda5 100755
--- a/scripts/neovim_install.sh
+++ b/scripts/neovim_install.sh
@@ -42,7 +42,7 @@ Options:
   -d       Specify directory for storing Neovim binaries.
            NOTE: Installation would happen in 'nvim-downloads' subdirectory.
   -f       Force installation. Would overwrite any existing installation.
-  -m       Installation method: binary, source, system
+  -m       Installation method: binary, tarball, source, system
   -a       Architecture type of the machine
   -o       Offline mode. Assume release is already downloaded.
   -h       Display this help message and exit.
@@ -126,6 +126,51 @@ function setup_neovim_linux_appimage() {
 	ln -sf "$nvim_version_dir"/usr/bin/nvim "$nvim_binary"
 }
 
+# Install on Linux using tarball
+function setup_neovim_linux_tarball() {
+	local version="$1" arch_type="$2"
+
+	local nvim_release_name
+	local download_url
+	download_url=$(safe_subshell build_tarball_github_uri "$version" "Linux" "$arch_type")
+	nvim_release_name=$(basename "$download_url")
+	local nvim_tarball_temp_path="$temp_dir/$nvim_release_name"
+
+	if [ ! -e "$nvim_version_dir/$nvim_release_name" ]; then
+		error "Expected release to be present at $nvim_version_dir/$nvim_release_name. Aborting..."
+		exit 1
+	fi
+
+	cp "$nvim_version_dir/$nvim_release_name" "$nvim_tarball_temp_path"
+
+	info "Extracting Neovim tarball..."
+	tar -xzf "$nvim_tarball_temp_path" -C "$temp_dir"
+
+	info "Finishing up installing Neovim..."
+	# Determine the extracted directory name based on version
+	local extracted_dir
+	local is_lesser
+	is_lesser_version "$version" v0.10.4
+	is_lesser=$?
+
+	if [[ $is_lesser -eq 0 ]]; then
+		# Older versions extract to nvim-linux64
+		extracted_dir="nvim-linux64"
+	else
+		# Newer versions extract to nvim-linux-<arch>
+		extracted_dir="nvim-linux-${arch_type}"
+	fi
+
+	if [ ! -d "$temp_dir/$extracted_dir" ]; then
+		error "Expected extracted directory $temp_dir/$extracted_dir not found. Aborting..."
+		exit 1
+	fi
+
+	# Move extracted contents to version directory
+	mkdir -p "$nvim_version_dir"
+	mv -f "$temp_dir/$extracted_dir"/* "$nvim_version_dir"
+}
+
 # Function to download and decompress Neovim binary for macOS
 function setup_neovim_macos() {
 	local version="$1" arch_type="$2"
@@ -196,6 +241,22 @@ function install_neovim() {
 				echo "Unsupported operating system: $(uname)"
 				exit 1
 			fi
+		elif [[ $install_method == "tarball" ]]; then
+			if [ "$offline_mode" == true ]; then
+				info "Operating in offline mode. Will not download Neovim tarball"
+			else
+				"$download_neovim_script" -o "$os" -v "$nvim_version" -d "$nvim_version_dir" -t "tarball" -a "$arch_type"
+			fi
+
+			# Install Neovim tarball based on the detected OS
+			if [[ $os == "Linux" ]]; then
+				safe_subshell setup_neovim_linux_tarball "$nvim_version" "$arch_type"
+			elif [[ $os == "Darwin" ]]; then
+				safe_subshell setup_neovim_macos "$nvim_version" "$arch_type"
+			else
+				echo "Unsupported operating system: $(uname)"
+				exit 1
+			fi
 		elif [[ $install_method == "source" ]]; then
 			if [ "$offline_mode" == true ]; then
 				info "Operating in offline mode. Will not download Neovim source"
diff --git a/scripts/utils/neovim.sh b/scripts/utils/neovim.sh
index bb325381..668098fc 100755
--- a/scripts/utils/neovim.sh
+++ b/scripts/utils/neovim.sh
@@ -57,6 +57,23 @@ function _linux_asset_name {
 	echo "$asset_name"
 }
 
+function _linux_tarball_asset_name {
+	# If version is less than 0.10.4, tarball name is nvim-linux64.tar.gz
+	# else it includes architecture: nvim-linux-x86_64.tar.gz or nvim-linux-arm64.tar.gz
+	local version="$1" arch_type="$2"
+	local asset_name="nvim-linux-${arch_type}.tar.gz"
+
+	info "Determining tarball asset name for Neovim version $version on Linux with architecture $arch_type"
+	local is_lesser
+	is_lesser_version "$version" v0.10.4
+	is_lesser=$?
+
+	if [[ $is_lesser -eq 0 ]]; then
+		asset_name="nvim-linux64.tar.gz"
+	fi
+	echo "$asset_name"
+}
+
 function _macos_asset_name {
 	# If version is less than 0.10.0, there is no architecture in the download URL
 	# else it has to be added into the URL suffix.
@@ -89,6 +106,22 @@ function _get_asset_name {
 	echo "$asset_name"
 }
 
+function _get_tarball_asset_name {
+	local version="$1" os="$2" arch_type="$3"
+
+	local asset_name
+	if [[ $os == "Linux" ]]; then
+		asset_name=$(safe_subshell _linux_tarball_asset_name "$version" "$arch_type")
+	elif [[ $os == "Darwin" ]]; then
+		asset_name=$(safe_subshell _macos_asset_name "$version" "$arch_type")
+	else
+		fatal --status=3 "Unsupported OS: $os"
+	fi
+
+	debug "Tarball asset name for ${os} ${arch_type} version ${version}: ${asset_name}"
+	echo "$asset_name"
+}
+
 # Get release download URL based on OS, Arch type and version
 function build_github_uri {
 	local VERSION=$1 OS=$2 ARCH_TYPE=$3
@@ -101,6 +134,18 @@ function build_github_uri {
 	echo "${BASE_GITHUB_URI_PATH}/${ASSET_NAME}"
 }
 
+# Get tarball download URL based on OS, Arch type and version
+function build_tarball_github_uri {
+	local VERSION=$1 OS=$2 ARCH_TYPE=$3
+
+	local BASE_GITHUB_URI_PATH="https://github.com/neovim/neovim/releases/download/${VERSION}"
+
+	local ASSET_NAME
+	ASSET_NAME=$(safe_subshell _get_tarball_asset_name "$VERSION" "$OS" "$ARCH_TYPE")
+
+	echo "${BASE_GITHUB_URI_PATH}/${ASSET_NAME}"
+}
+
 function _find_sha256_for_version {
 	local url="$1"
 	local release_json
@@ -168,3 +213,43 @@ function get_sha256 {
 	debug "SHA256 sum: $SHA256_SUM for release item $DOWNLOAD_URI"
 	echo "$SHA256_SUM"
 }
+
+function get_tarball_sha256 {
+	local VERSION=$1 OS=$2 ARCH_TYPE=$3
+
+	local DOWNLOAD_URI
+	DOWNLOAD_URI=$(safe_subshell build_tarball_github_uri "$VERSION" "$OS" "$ARCH_TYPE")
+
+	local is_lesser
+	is_lesser_version "$VERSION" v0.11.3
+	is_lesser=$?
+
+	local SHA256_URI
+	local SHA256_SUM
+	if [[ $is_lesser -eq 0 ]]; then
+		info "Neovim version $VERSION is less than 0.11.3, using legacy checksum file"
+
+		SHA256_URI="${DOWNLOAD_URI}.sha256sum"
+		SHA256_SUM=$(safe_subshell run_api_call "$SHA256_URI")
+
+		SHA256_SUM=$(safe_subshell printf '%s\n' "$SHA256_SUM" | awk '{print $1}')
+	else
+		info "Neovim version $VERSION is greater than or equal to 0.11.3, using GitHub's checksum API"
+
+		SHA256_URI="https://api.github.com/repos/neovim/neovim/releases/tags/${VERSION}"
+		debug "Downloading SHA256 from $SHA256_URI"
+
+		local response
+		response=$(safe_subshell run_api_call "$SHA256_URI")
+		debug "Response from GitHub API: $response"
+
+		SHA256_SUM=$(safe_subshell printf '%s\n' "$response" | _find_sha256_for_version "$DOWNLOAD_URI")
+	fi
+
+	if [[ -z $SHA256_SUM ]]; then
+		fatal --status=3 "Failed to retrieve SHA256 sum for release item $DOWNLOAD_URI"
+	fi
+
+	debug "SHA256 sum: $SHA256_SUM for release item $DOWNLOAD_URI"
+	echo "$SHA256_SUM"
+}
diff --git a/tests/remote-nvim/providers/provider_spec.lua b/tests/remote-nvim/providers/provider_spec.lua
index 055e1141..6c69140a 100644
--- a/tests/remote-nvim/providers/provider_spec.lua
+++ b/tests/remote-nvim/providers/provider_spec.lua
@@ -114,6 +114,7 @@ describe("Provider", function()
       assert.are.same({
         provider = "local",
         host = provider.host,
+        is_docker_container = false,
         arch = "x86_64",
         neovim_install_method = "binary",
         connection_options = provider.conn_opts,