Docker compose for local Kafka setup with kafka-ui

kafka-local-docker-compose.yaml

# This setup allows you to both connect from within the docker-compose context as well as from services running on your local
# machine but not as part of the docker-compose setup. Any client connecting to the broker from the outside can connect to
# localhost:9092 while services running as part of the docker-compose connect to broker:9093.
#
# To access kafka-ui: http://localhost:7777
#
# I hope this helps someone out there! :)

version: '3'
networks:
  local-kafka:
    driver: bridge

services:
  zookeeper:
    image: confluentinc/cp-zookeeper:7.0.1
    container_name: zookeeper
    networks:
      - local-kafka
    environment:
      ZOOKEEPER_CLIENT_PORT: 2181
      ZOOKEEPER_TICK_TIME: 2000

  broker:
    image: confluentinc/cp-kafka:7.0.1
    container_name: broker
    networks:
      - local-kafka
    ports:
    # To learn about configuring Kafka for access across networks see
    # https://www.confluent.io/blog/kafka-client-cannot-connect-to-broker-on-aws-on-docker-etc/
      - "9092:9092"
      - "9093:9093"
    depends_on:
      - zookeeper
    environment:
      KAFKA_BROKER_ID: 1
      KAFKA_ZOOKEEPER_CONNECT: 'zookeeper:2181'
      KAFKA_OFFSETS_TOPIC_REPLICATION_FACTOR: 1
      KAFKA_TRANSACTION_STATE_LOG_MIN_ISR: 1
      KAFKA_TRANSACTION_STATE_LOG_REPLICATION_FACTOR: 1
      KAFKA_LISTENERS: PLAINTEXT_INTERNAL://0.0.0.0:29092,PLAINTEXT_C://0.0.0.0:9093,PLAINTEXT_L://0.0.0.0:9092,
      KAFKA_ADVERTISED_LISTENERS: PLAINTEXT_INTERNAL://broker:29092,PLAINTEXT_L://localhost:9092,PLAINTEXT_C://broker:9093
      KAFKA_LISTENER_SECURITY_PROTOCOL_MAP: PLAINTEXT_INTERNAL:PLAINTEXT,PLAINTEXT_L:PLAINTEXT,PLAINTEXT_C:PLAINTEXT
      KAFKA_INTER_BROKER_LISTENER_NAME: PLAINTEXT_INTERNAL

  kafka-ui:
    image: provectuslabs/kafka-ui
    container_name: kafka-ui
    networks:
      - local-kafka
    depends_on: 
      - broker
    ports:
      - "7777:8080"
    restart: always
    environment:
      - KAFKA_CLUSTERS_0_NAME=broker
      - KAFKA_CLUSTERS_0_BOOTSTRAPSERVERS=broker:9093
      - KAFKA_CLUSTERS_0_ZOOKEEPER=zookeeper:2181

If you want to use latest version kafka, ie kafka 4.0.0, use the below docker-compose.yaml content.
System requirement is also less compared to the one given at top.

  broker:
    image: apache/kafka:latest
    hostname: broker
    container_name: broker
    ports:
      - 9092:9092
    environment:
      KAFKA_BROKER_ID: 1
      KAFKA_LISTENER_SECURITY_PROTOCOL_MAP: PLAINTEXT:PLAINTEXT,PLAINTEXT_HOST:PLAINTEXT,CONTROLLER:PLAINTEXT
      KAFKA_ADVERTISED_LISTENERS: PLAINTEXT://broker:29092,PLAINTEXT_HOST://localhost:9092
      KAFKA_OFFSETS_TOPIC_REPLICATION_FACTOR: 1
      KAFKA_GROUP_INITIAL_REBALANCE_DELAY_MS: 0
      KAFKA_TRANSACTION_STATE_LOG_MIN_ISR: 1
      KAFKA_TRANSACTION_STATE_LOG_REPLICATION_FACTOR: 1
      KAFKA_PROCESS_ROLES: broker,controller
      KAFKA_NODE_ID: 1
      KAFKA_CONTROLLER_QUORUM_VOTERS: 1@broker:29093
      KAFKA_LISTENERS: PLAINTEXT://broker:29092,CONTROLLER://broker:29093,PLAINTEXT_HOST://0.0.0.0:9092
      KAFKA_INTER_BROKER_LISTENER_NAME: PLAINTEXT
      KAFKA_CONTROLLER_LISTENER_NAMES: CONTROLLER
      KAFKA_LOG_DIRS: /tmp/kraft-combined-logs
      CLUSTER_ID: MkU3OEVBNTcwNTJENDM2Qk