diff --git a/images/lndbtc/entrypoint.sh b/images/lndbtc/entrypoint.sh
index 0961c1a19..e78fb5299 100755
--- a/images/lndbtc/entrypoint.sh
+++ b/images/lndbtc/entrypoint.sh
@@ -7,61 +7,55 @@ SCRIPT_PATH=$(dirname "$0")
 cd "$SCRIPT_PATH" || exit 1
 
 LND_DIR="/root/.lnd"
+LND_CONF="$LND_DIR/lnd.conf"
 mkdir -p $LND_DIR
 
-if [[ ! -e $LND_DIR/lnd.conf ]]; then
-  cp /root/lnd.conf $LND_DIR/lnd.conf
+if [[ ! -e $LND_CONF ]]; then
+    cp /root/lnd.conf "$LND_CONF"
 fi
 
-NEUTRINO=${NEUTRINO:-}
+echo "[entrypoint] Enabling $MODE mode"
+if [[ $MODE == "light" || $MODE == "neutrino" ]]; then
+    sed -i "s/bitcoin.node.*/bitcoin.node=neutrino/g" "$LND_CONF"
+    sed -i '/routing/,$d' "$LND_CONF"
+    if [[ $NETWORK == "testnet" ]]; then
+        cat <<EOF >> "$LND_CONF"
+[routing]
+routing.assumechanvalid=1
 
-if [ ! -z ${NEUTRINO} ]; then
-  PEERS="[neutrino]\n"
+[neutrino]
+neutrino.addpeer=bitcoin.michael1011.at:18333
+neutrino.addpeer=btc.kilrau.com:18333
+EOF
+    elif [[ $NETWORK == "mainnet" ]]; then
+        cat << EOF >> "$LND_CONF"
+[routing]
+routing.assumechanvalid=1
 
-  case $CHAIN in
-    bitcoin)
-      case $NETWORK in
-        testnet)
-          PEERS="${PEERS}neutrino.addpeer=bitcoin.michael1011.at:18333\nneutrino.addpeer=btc.kilrau.com:18333"
-          ;;
-        mainnet)
-          PEERS="${PEERS}neutrino.addpeer=bitcoin.michael1011.at:8333\nneutrino.addpeer=btc.kilrau.com:8333\nneutrino.addpeer=thun.droidtech.it:8333"
-          ;;
-        esac
-      ;;
-    litecoin)
-          case $NETWORK in
-        testnet)
-          PEERS="${PEERS}neutrino.connect=ltcd.michael1011.at:19335\nneutrino.connect=ltc.kilrau.com:19335"
-          ;;
-        mainnet)
-          PEERS="${PEERS}neutrino.connect=ltcd.michael1011.at:9333\nneutrino.connect=ltc.kilrau.com:9333"
-          ;;
-        esac
-      ;;
-  esac
-
-  echo "[DEBUG] Enabling neutrino"
-  case $CHAIN in
-    bitcoin)
-      sed -i "s/bitcoin.node=bitcoind/bitcoin.node=neutrino\n\n${PEERS}\n\n[routing]\nrouting.assumechanvalid=1/g" $LND_DIR/lnd.conf
-      ;;
-    litecoin)
-      sed -i "s/litecoin.node=litecoind/litecoin.node=neutrino\n\n${PEERS}\n\n[routing]\nrouting.assumechanvalid=1/g" $LND_DIR/lnd.conf
-      ;;
-  esac
+[neutrino]
+neutrino.addpeer=bitcoin.michael1011.at:8333
+neutrino.addpeer=btc.kilrau.com:8333
+neutrino.addpeer=thun.droidtech.it:8333
+EOF
+    fi
+elif [[ $MODE == "native" ]]; then
+    sed -i '/routing/,$d' "$LND_CONF"
+    sed -i "s/bitcoin.node=.*/bitcoin.node=bitcoind/g" "$LND_CONF"
+    sed -i "s/rpchost.*/rpchost=bitcoind/g" "$LND_CONF"
+    sed -i "s/rpcuser.*/rpcuser=xu/g" "$LND_CONF"
+    sed -i "s/rpcpass.*/rpcpass=xu/g" "$LND_CONF"
+    sed -i "s|zmqpubrawblock.*|zmqpubrawblock=tcp://bitcoind:28332|g" "$LND_CONF"
+    sed -i "s|zmqpubrawtx.*|zmqpubrawtx=tcp://bitcoind:28333|g" "$LND_CONF"
+elif [[ $MODE == "external" ]]; then
+    sed -i '/routing/,$d' "$LND_CONF"
+    sed -i "s/bitcoin.node=.*/bitcoin.node=bitcoind/g" "$LND_CONF"
+    sed -i "s/rpchost.*/rpchost=$RPCHOST/g" "$LND_CONF"
+    sed -i "s/rpcuser.*/rpcuser=$RPCUSER/g" "$LND_CONF"
+    sed -i "s/rpcpass.*/rpcpass=$RPCPASS/g" "$LND_CONF"
+    sed -i "s|zmqpubrawblock.*|zmqpubrawblock=$ZMQPUBRAWBLOCK|g" "$LND_CONF"
+    sed -i "s|zmqpubrawtx.*|zmqpubrawtx=$ZMQPUBRAWTX|g" "$LND_CONF"
 fi
 
-set +e
-
-[[ -n ${RPCHOST:-} ]] && sed -i "s/rpchost.*/rpchost=$RPCHOST/g" $LND_DIR/lnd.conf
-[[ -n ${RPCUSER:-} ]] && sed -i "s/rpcuser.*/rpcuser=$RPCUSER/g" $LND_DIR/lnd.conf
-[[ -n ${RPCPASS:-} ]] && sed -i "s/rpcpass.*/rpcpass=$RPCPASS/g" $LND_DIR/lnd.conf
-[[ -n ${ZMQPUBRAWBLOCK:-} ]] && sed -i "s|zmqpubrawblock.*|zmqpubrawblock=$ZMQPUBRAWBLOCK|g" $LND_DIR/lnd.conf
-[[ -n ${ZMQPUBRAWTX:-} ]] && sed -i "s|zmqpubrawtx.*|zmqpubrawtx=$ZMQPUBRAWTX|g" $LND_DIR/lnd.conf
-
-set -e
-
 LND_HOSTNAME="$HOME/.lnd/tor/hostname"
 echo "Waiting for lnd-$CHAIN onion address..."
 
diff --git a/images/lndltc/entrypoint.sh b/images/lndltc/entrypoint.sh
index faa281edd..4f9410cb1 100755
--- a/images/lndltc/entrypoint.sh
+++ b/images/lndltc/entrypoint.sh
@@ -7,61 +7,54 @@ SCRIPT_PATH=$(dirname "$0")
 cd "$SCRIPT_PATH" || exit 1
 
 LND_DIR="/root/.lnd"
+LND_CONF="$LND_DIR/lnd.conf"
 mkdir -p $LND_DIR
 
-if [[ ! -e $LND_DIR/lnd.conf ]]; then
-  cp /root/lnd.conf $LND_DIR/lnd.conf
+if [[ ! -e "$LND_CONF" ]]; then
+    cp /root/lnd.conf "$LND_CONF"
 fi
 
-NEUTRINO=${NEUTRINO:-}
+echo "[entrypoint] Enabling $MODE mode"
+if [[ $MODE == "light" || $MODE == "neutrino" ]]; then
+    sed -i "s/litecoin.node.*/litecoin.node=neutrino/g" "$LND_CONF"
+    sed -i '/routing/,$d' "$LND_CONF"
+    if [[ $NETWORK == "testnet" ]]; then
+        cat <<EOF >> "$LND_CONF"
+[routing]
+routing.assumechanvalid=1
 
-if [ ! -z ${NEUTRINO} ]; then
-  PEERS="[neutrino]\n"
+[neutrino]
+neutrino.connect=ltcd.michael1011.at:19335
+neutrino.connect=ltc.kilrau.com:19335
+EOF
+    elif [[ $NETWORK == "mainnet" ]]; then
+        cat << EOF >> "$LND_CONF"
+[routing]
+routing.assumechanvalid=1
 
-  case $CHAIN in
-    bitcoin)
-      case $NETWORK in
-        testnet)
-          PEERS="${PEERS}neutrino.addpeer=bitcoin.michael1011.at:18333\nneutrino.addpeer=btc.kilrau.com:18333"
-          ;;
-        mainnet)
-          PEERS="${PEERS}neutrino.addpeer=bitcoin.michael1011.at:8333\nneutrino.addpeer=btc.kilrau.com:8333"
-          ;;
-        esac
-      ;;
-    litecoin)
-          case $NETWORK in
-        testnet)
-          PEERS="${PEERS}neutrino.connect=ltcd.michael1011.at:19335\nneutrino.connect=ltc.kilrau.com:19335"
-          ;;
-        mainnet)
-          PEERS="${PEERS}neutrino.connect=ltcd.michael1011.at:9333\nneutrino.connect=ltc.kilrau.com:9333"
-          ;;
-        esac
-      ;;
-  esac
-
-  echo "[DEBUG] Enabling neutrino"
-  case $CHAIN in
-    bitcoin)
-      sed -i "s/bitcoin.node=bitcoind/bitcoin.node=neutrino\n\n${PEERS}\n\n[routing]\nrouting.assumechanvalid=1/g" $LND_DIR/lnd.conf
-      ;;
-    litecoin)
-      sed -i "s/litecoin.node=litecoind/litecoin.node=neutrino\n\n${PEERS}\n\n[routing]\nrouting.assumechanvalid=1/g" $LND_DIR/lnd.conf
-      ;;
-  esac
+[neutrino]
+neutrino.connect=ltcd.michael1011.at:9333
+neutrino.connect=ltc.kilrau.com:9333
+EOF
+    fi
+elif [[ $MODE == "native" ]]; then
+    sed -i '/routing/,$d' "$LND_CONF"
+    sed -i "s/litecoin.node=.*/litecoin.node=litecoind/g" "$LND_CONF"
+    sed -i "s/rpchost.*/rpchost=litecoind/g" "$LND_CONF"
+    sed -i "s/rpcuser.*/rpcuser=xu/g" "$LND_CONF"
+    sed -i "s/rpcpass.*/rpcpass=xu/g" "$LND_CONF"
+    sed -i "s|zmqpubrawblock.*|zmqpubrawblock=tcp://litecoind:28332|g" "$LND_CONF"
+    sed -i "s|zmqpubrawtx.*|zmqpubrawtx=tcp://litecoind:28333|g" "$LND_CONF"
+elif [[ $MODE == "external" ]]; then
+    sed -i '/routing/,$d' "$LND_CONF"
+    sed -i "s/litecoin.node=.*/litecoin.node=litecoind/g" "$LND_CONF"
+    sed -i "s/rpchost.*/rpchost=$RPCHOST/g" "$LND_CONF"
+    sed -i "s/rpcuser.*/rpcuser=$RPCUSER/g" "$LND_CONF"
+    sed -i "s/rpcpass.*/rpcpass=$RPCPASS/g" "$LND_CONF"
+    sed -i "s|zmqpubrawblock.*|zmqpubrawblock=$ZMQPUBRAWBLOCK|g" "$LND_CONF"
+    sed -i "s|zmqpubrawtx.*|zmqpubrawtx=$ZMQPUBRAWTX|g" "$LND_CONF"
 fi
 
-set +e
-
-[[ -n ${RPCHOST:-} ]] && sed -i "s/rpchost.*/rpchost=$RPCHOST/g" $LND_DIR/lnd.conf
-[[ -n ${RPCUSER:-} ]] && sed -i "s/rpcuser.*/rpcuser=$RPCUSER/g" $LND_DIR/lnd.conf
-[[ -n ${RPCPASS:-} ]] && sed -i "s/rpcpass.*/rpcpass=$RPCPASS/g" $LND_DIR/lnd.conf
-[[ -n ${ZMQPUBRAWBLOCK:-} ]] && sed -i "s|zmqpubrawblock.*|zmqpubrawblock=$ZMQPUBRAWBLOCK|g" $LND_DIR/lnd.conf
-[[ -n ${ZMQPUBRAWTX:-} ]] && sed -i "s|zmqpubrawtx.*|zmqpubrawtx=$ZMQPUBRAWTX|g" $LND_DIR/lnd.conf
-
-set -e
-
 LND_HOSTNAME="$HOME/.lnd/tor/hostname"
 echo "Waiting for lnd-$CHAIN onion address..."
 
diff --git a/images/utils/launcher/__init__.py b/images/utils/launcher/__init__.py
index 3a3a680b2..10422821f 100644
--- a/images/utils/launcher/__init__.py
+++ b/images/utils/launcher/__init__.py
@@ -1,7 +1,6 @@
 import logging
 import shlex
 import traceback
-import os
 
 from .config import Config, ConfigLoader
 from .shell import Shell
@@ -266,17 +265,17 @@ def launch(self):
             print()
         except ConfigError as e:
             if e.scope == ConfigErrorScope.COMMAND_LINE_ARGS:
-                print("❌ Failed to parse command-line arguments, exiting.")
-                print(f"Error details: {e.__cause__}")
+                print("Failed to parse command-line arguments, exiting.")
+                traceback.print_exc()
             elif e.scope == ConfigErrorScope.GENERAL_CONF:
-                print("❌ Failed to parse config file {}, exiting.".format(e.conf_file))
-                print(f"Error details: {e.__cause__}")
+                print("Failed to parse config file {}, exiting.".format(e.conf_file))
+                traceback.print_exc()
             elif e.scope == ConfigErrorScope.NETWORK_CONF:
-                print("❌ Failed to parse config file {}, exiting.".format(e.conf_file))
-                print(f"Error details: {e.__cause__}")
+                print("Failed to parse config file {}, exiting.".format(e.conf_file))
+                traceback.print_exc()
         except FatalError as e:
             if config and config.logfile:
-                print(f"❌ Error: {e}. For more details, see {config.logfile}")
+                print(f"Error: {e}. For more details, see {config.logfile}")
             else:
                 traceback.print_exc()
         except Exception:  # exclude system exceptions like SystemExit
diff --git a/images/utils/launcher/config/config.py b/images/utils/launcher/config/config.py
index e922545e4..0b1877e0d 100644
--- a/images/utils/launcher/config/config.py
+++ b/images/utils/launcher/config/config.py
@@ -279,6 +279,12 @@ def parse_command_line_arguments(self):
             action="store_true",
             help="Preserve xud xud.conf file during updates"
         )
+        group.add_argument(
+            "--xud.debug",
+            nargs='?',
+            metavar="<port>",
+            help="Run xud with NodeJS --inspect option on specific port (default: 9229)"
+        )
 
         group = parser.add_argument_group("arby")
         group.add_argument(
@@ -425,6 +431,29 @@ def update_ports(self, node, parsed, mapping=None):
                 if p not in node["ports"]:
                     node["ports"].append(p)
 
+    def update_debug(self, node, parsed):
+        node_name = node["name"]
+
+        def process(value):
+            if not value:
+                if node_name == "xud":
+                    value = 9229
+                else:
+                    raise RuntimeError("No default debug port for node %s" % node_name)
+            if isinstance(value, str):
+                value = int(value)
+            assert isinstance(value, int)
+            node["debug"] = value
+            p = PortPublish("%s" % value)
+            if p not in node["ports"]:
+                node["ports"].append(p)
+
+        if "debug" in parsed:
+            process(parsed["debug"])
+        opt = "{}.debug".format(node_name)
+        if hasattr(self.args, opt):
+            process(getattr(self.args, opt))
+
     def update_bitcoind_kind(self, node, parsed):
         if "external" in parsed:
             print("Warning: Using deprecated option \"external\". Please use \"mode\" instead.")
@@ -655,6 +684,7 @@ def update_xud(self, parsed):
         """
         node = self.nodes["xud"]
         self.update_ports(node, parsed)
+        self.update_debug(node, parsed)
 
     def update_disabled(self, node, parsed, opt):
         if "disabled" in parsed:
diff --git a/images/utils/launcher/config/mainnet.conf b/images/utils/launcher/config/mainnet.conf
index da2ea51ea..b1e5ae297 100644
--- a/images/utils/launcher/config/mainnet.conf
+++ b/images/utils/launcher/config/mainnet.conf
@@ -119,6 +119,7 @@
 # 8886 - gRPC port
 # 8080 - webproxy port
 #expose-ports = ["8885", "8886", "8080"]
+#debug = 9229
 
 [arby]
 #live-cex="false"
diff --git a/images/utils/launcher/config/simnet.conf b/images/utils/launcher/config/simnet.conf
index 6bbda51d6..20269b6db 100644
--- a/images/utils/launcher/config/simnet.conf
+++ b/images/utils/launcher/config/simnet.conf
@@ -32,6 +32,7 @@
 # 28886 - gRPC port
 # 28080 - webproxy port
 #expose-ports = ["28885", "28886", "28080:8080"]
+#debug = 9229
 
 [arby]
 #live-cex="false"
diff --git a/images/utils/launcher/config/testnet.conf b/images/utils/launcher/config/testnet.conf
index e67152369..6d2b54803 100644
--- a/images/utils/launcher/config/testnet.conf
+++ b/images/utils/launcher/config/testnet.conf
@@ -119,6 +119,7 @@
 # 18886 - gRPC port
 # 18080 - webproxy port
 #expose-ports = ["18885", "18886", "18080:8080"]
+#debug = 9229
 
 [arby]
 #live-cex="false"
diff --git a/images/utils/launcher/node/lnd.py b/images/utils/launcher/node/lnd.py
index 0f81da586..d48819956 100644
--- a/images/utils/launcher/node/lnd.py
+++ b/images/utils/launcher/node/lnd.py
@@ -88,11 +88,10 @@ def get_environment(self):
             else:
                 layer1_node = self.config.nodes["litecoind"]
 
-            if layer1_node["mode"] == "neutrino" or layer1_node["mode"] == "light":
-                environment.extend([
-                    f'NEUTRINO=True',
-                ])
-            elif layer1_node["mode"] == "external":
+            mode = layer1_node["mode"]
+            environment.append(f"MODE={mode}")
+
+            if mode == "external":
                 environment.extend([
                     f'RPCHOST={layer1_node["external_rpc_host"]}',
                     f'RPCUSER={layer1_node["external_rpc_user"]}',
diff --git a/images/utils/launcher/node/xud.py b/images/utils/launcher/node/xud.py
index afd69e310..76c015190 100644
--- a/images/utils/launcher/node/xud.py
+++ b/images/utils/launcher/node/xud.py
@@ -42,6 +42,10 @@ def __init__(self, name, ctx):
 
         self.container_spec.environment.append("NODE_ENV=production")
 
+        if "debug" in self.node_config:
+            debug_port = self.node_config["debug"]
+            self.container_spec.environment.append(f"DEBUG_PORT={debug_port}")
+
         self._cli = "xucli"
 
         self.api = XudApi(CliBackend(self.client, self.container_name, self._logger, self._cli))
diff --git a/images/xud/entrypoint.sh b/images/xud/entrypoint.sh
index fa4719ccb..98cddcb19 100755
--- a/images/xud/entrypoint.sh
+++ b/images/xud/entrypoint.sh
@@ -109,4 +109,10 @@ cat $XUD_CONF
 /xud-backup.sh &
 
 # use exec to properly respond to SIGINT
-exec xud $@
+if [[ -n ${DEBUG_PORT:-} ]]; then
+    export NODE_ENV=development
+    exec node --inspect-brk=0.0.0.0:$DEBUG_PORT bin/xud
+else
+    exec xud $@
+fi
+
diff --git a/setup.sh b/setup.sh
index b4a045684..90a059bfc 100644
--- a/setup.sh
+++ b/setup.sh
@@ -72,6 +72,7 @@ Connext options:
 Xud options:
     --xud.expose-ports <port>[,<port>]          Expose xud service ports to your host machine
     --xud.preserve-config                       Preserve xud xud.conf file during updates
+    --xud.debug [<port>]                        Run xud with NodeJS --inspect option on specific port (default: 9229)
 
 Arby options:
     --arby.live-cex [true|false]                Production/Demo mode (default: false)
diff --git a/tools/core/image.py b/tools/core/image.py
index 23d9095e5..70873232a 100644
--- a/tools/core/image.py
+++ b/tools/core/image.py
@@ -140,36 +140,44 @@ def repo(self) -> Optional[str]:
     def _run_command(self, cmd):
         self._logger.info(cmd)
 
-        stop = threading.Event()
-
-        def f():
-            nonlocal stop
-            counter = 0
-            on_travis = "TRAVIS_BRANCH" in os.environ
-            while not stop.is_set():
-                counter = counter + 1
-
-                if on_travis:
-                    print("Still building... ({})".format(counter), flush=True)
-                    stop.wait(10)
-                    continue
-
-                print(".", end="", flush=True)
-                stop.wait(1)
-            if not on_travis:
-                print()
-        threading.Thread(target=f).start()
-        try:
-            output = execute(cmd)
-            self._logger.debug("$ %s\n%s", cmd, output)
-            stop.set()
-        except CalledProcessError as e:
-            stop.set()
-            print(e.output.decode(), end="", flush=True)
-            raise SystemExit(1)
-        except:
-            stop.set()
-            raise
+        on_travis = "TRAVIS_BRANCH" in os.environ
+
+        if on_travis:
+            stop = threading.Event()
+
+            def f():
+                nonlocal stop
+                counter = 0
+
+                while not stop.is_set():
+                    counter = counter + 1
+
+                    if on_travis:
+                        print("Still building... ({})".format(counter), flush=True)
+                        stop.wait(10)
+                        continue
+
+                    print(".", end="", flush=True)
+                    stop.wait(1)
+                if not on_travis:
+                    print()
+            threading.Thread(target=f).start()
+            try:
+                output = execute(cmd)
+                self._logger.debug("$ %s\n%s", cmd, output)
+                stop.set()
+            except CalledProcessError as e:
+                stop.set()
+                print(e.output.decode(), end="", flush=True)
+                raise SystemExit(1)
+            except:
+                stop.set()
+                raise
+        else:
+            print("\033[1m$ %s\033[0m" % cmd)
+            exit_code = os.system(cmd)
+            if exit_code != 0:
+                raise RuntimeError("The command exits with non-zero code %s" % exit_code)
 
     def _build(self, args: List[str], build_dir: str, build_tag: str) -> None:
         cmd = "docker build {} {}".format(" ".join(args), build_dir)