diff --git a/packages/core/src/shared/sam/build.ts b/packages/core/src/shared/sam/build.ts
index 233c6f6d7ae..81179177b83 100644
--- a/packages/core/src/shared/sam/build.ts
+++ b/packages/core/src/shared/sam/build.ts
@@ -29,6 +29,7 @@ import {
 } from './utils'
 import { getConfigFileUri, validateSamBuildConfig } from './config'
 import { runInTerminal } from './processTerminal'
+import { SemVer } from 'semver'
 
 const buildMementoRootKey = 'samcli.build.params'
 export interface BuildParams {
@@ -210,10 +211,13 @@ export async function runBuild(arg?: TreeNode): Promise<SamBuildResult> {
     const projectRoot = params.projectRoot
 
     const defaultFlags: string[] = ['--cached', '--parallel', '--save-params', '--use-container']
+
+    const { path: samCliPath, parsedVersion } = await getSamCliPathAndVersion()
+
     // refactor
     const buildFlags: string[] =
         params.paramsSource === ParamsSource.Specify && params.buildFlags
-            ? JSON.parse(params.buildFlags)
+            ? await resolveBuildFlags(JSON.parse(params.buildFlags), parsedVersion)
             : await getBuildFlags(params.paramsSource, projectRoot, defaultFlags)
 
     // todo remove
@@ -229,8 +233,6 @@ export async function runBuild(arg?: TreeNode): Promise<SamBuildResult> {
     await updateRecentResponse(buildMementoRootKey, 'global', 'templatePath', templatePath)
 
     try {
-        const { path: samCliPath } = await getSamCliPathAndVersion()
-
         // Create a child process to run the SAM build command
         const buildProcess = new ChildProcess(samCliPath, ['build', ...buildFlags], {
             spawnOptions: await addTelemetryEnvVar({
@@ -281,3 +283,13 @@ function resolveBuildArgConflict(boundArgs: string[]): string[] {
     // }
     return Array.from(boundArgsSet)
 }
+export async function resolveBuildFlags(buildFlags: string[], samCliVersion: SemVer | null): Promise<string[]> {
+    // --no-use-container was not added until v1.133.0
+    if (samCliVersion?.compare('1.133.0') ?? -1 < 0) {
+        return buildFlags
+    }
+    if (!buildFlags.includes('--use-container')) {
+        buildFlags.push('--no-use-container')
+    }
+    return buildFlags
+}
diff --git a/packages/core/src/test/shared/sam/build.test.ts b/packages/core/src/test/shared/sam/build.test.ts
index 4375f792987..a7663788205 100644
--- a/packages/core/src/test/shared/sam/build.test.ts
+++ b/packages/core/src/test/shared/sam/build.test.ts
@@ -16,6 +16,7 @@ import {
     createParamsSourcePrompter,
     getBuildFlags,
     ParamsSource,
+    resolveBuildFlags,
     runBuild,
 } from '../../../shared/sam/build'
 import { TreeNode } from '../../../shared/treeview/resourceTreeDataProvider'
@@ -26,12 +27,14 @@ import { getProjectRootUri } from '../../../shared/sam/utils'
 import sinon from 'sinon'
 import { createMultiPick, DataQuickPickItem } from '../../../shared/ui/pickerPrompter'
 import * as config from '../../../shared/sam/config'
+import * as utils from '../../../shared/sam/utils'
 import { PrompterTester } from '../wizards/prompterTester'
 import { getWorkspaceFolder, TestFolder } from '../../testUtil'
 import { samconfigCompleteData, validTemplateData } from './samTestUtils'
 import { CloudFormationTemplateRegistry } from '../../../shared/fs/templateRegistry'
 import { getTestWindow } from '../vscode/window'
 import { CancellationError } from '../../../shared/utilities/timeoutUtils'
+import { SemVer } from 'semver'
 
 describe('SAM BuildWizard', async function () {
     const createTester = async (params?: Partial<BuildParams>, arg?: TreeNode | undefined) =>
@@ -229,6 +232,38 @@ describe('SAM build helper functions', () => {
             assert.deepStrictEqual(quickPick.items, expectedItems)
         })
     })
+
+    describe('resolveBuildFlags', () => {
+        let sandbox: sinon.SinonSandbox
+        beforeEach(() => {
+            sandbox = sinon.createSandbox()
+        })
+
+        afterEach(() => {
+            sandbox.restore()
+        })
+
+        it('uses --no-use-container when --use-container is absent', async () => {
+            const normalVersion = new SemVer('1.133.0')
+            const buildFlags = ['--cached', '--debug', '--parallel']
+            const expectedBuildFlags = ['--cached', '--debug', '--parallel', '--no-use-container']
+            return testResolveBuildFlags(sandbox, normalVersion, buildFlags, expectedBuildFlags)
+        })
+
+        it('preserves buildFlags when SAM CLI version < 1.133', async () => {
+            const lowerVersion = new SemVer('1.110.0')
+            const buildFlags = ['--cached', '--parallel', '--save-params']
+            const expectedBuildFlags = ['--cached', '--parallel', '--save-params']
+            return testResolveBuildFlags(sandbox, lowerVersion, buildFlags, expectedBuildFlags)
+        })
+
+        it('respects existing --use-container flag', async () => {
+            const normalVersion = new SemVer('1.110.0')
+            const buildFlags = ['--cached', '--parallel', '--save-params', '--use-container']
+            const expectedBuildFlags = ['--cached', '--parallel', '--save-params', '--use-container']
+            return testResolveBuildFlags(sandbox, normalVersion, buildFlags, expectedBuildFlags)
+        })
+    })
 })
 
 describe('SAM runBuild', () => {
@@ -551,3 +586,16 @@ describe('SAM runBuild', () => {
         })
     })
 })
+
+function testResolveBuildFlags(
+    sandbox: sinon.SinonSandbox,
+    parsedVersion: SemVer,
+    buildFlags: string[],
+    expectedBuildFlags: string[]
+) {
+    const pathAndVersionStub = sandbox.stub().resolves({ path: 'file:///path/to/cli', parsedVersion })
+    sandbox.stub(utils, 'getSamCliPathAndVersion').callsFake(pathAndVersionStub)
+    return resolveBuildFlags(buildFlags, parsedVersion).then((resolvedBuildFlags) => {
+        assert.deepEqual(resolvedBuildFlags, expectedBuildFlags)
+    })
+}
diff --git a/packages/toolkit/.changes/next-release/Bug Fix-f7a3ecad-06a7-48cd-896b-2285ea95bd84.json b/packages/toolkit/.changes/next-release/Bug Fix-f7a3ecad-06a7-48cd-896b-2285ea95bd84.json
new file mode 100644
index 00000000000..80e69eae92a
--- /dev/null
+++ b/packages/toolkit/.changes/next-release/Bug Fix-f7a3ecad-06a7-48cd-896b-2285ea95bd84.json	
@@ -0,0 +1,4 @@
+{
+	"type": "Bug Fix",
+	"description": "appBuilder: pass '--no-use-container' when '--use-container' is not selected in quickpick"
+}