Managed VMs allow users to run Docker containers on Google App Engine. This extends App Engine's capabilities by enabling the use of custom containers beyond the standard runtimes. With Managed VMs, users can build Docker images containing their applications and dependencies, deploy them to App Engine, and manage them similarly to how standard App Engine apps are deployed and managed. Traffic can be routed to apps running in both standard and custom Docker containers on Managed VMs modules through the use of a dispatch file.