diff --git a/.dockerignore b/.dockerignore
index c0742e4..db17af9 100644
--- a/.dockerignore
+++ b/.dockerignore
@@ -57,5 +57,8 @@ changes.txt
 .env
 .env.local
 
-# Data directories (MongoDB, Redis, etc.)
-data/
\ No newline at end of file
+# Data directory (MongoDB, Redis, genesis files)
+data/
+
+# Logs directory
+logs/
\ No newline at end of file
diff --git a/.gitignore b/.gitignore
index 1f4126d..dbf2c2c 100644
--- a/.gitignore
+++ b/.gitignore
@@ -6,6 +6,7 @@ aggregator.log
 /performance-test
 bft-config
 /data/
+/logs/
 .cache/
 
 # Environment files with secrets
diff --git a/Makefile b/Makefile
index e2243b9..e7c1b86 100644
--- a/Makefile
+++ b/Makefile
@@ -125,11 +125,21 @@ docker-restart-ha:
 	@echo "HA Aggregator services restarted"
 
 
+docker-run-sh-clean-keep-tb:
+	@echo "Rebuilding services with clean state but preserving BFT config, with sharding enabled as current user..."
+	@docker compose -f sharding-compose.yml down
+	@rm -rf ./data/mongodb_shard1_data ./data/mongodb_shard2_data ./data/mongodb_root_data ./data/redis_shared_data
+	@mkdir -p ./data/genesis/root ./data/genesis-root ./data/mongodb_shard1_data ./data/mongodb_shard2_data ./data/mongodb_root_data ./data/redis_shared_data && chmod -R 777 ./data
+	@mkdir -p ./logs/shard1 ./logs/shard2 ./logs/root && chmod -R 777 ./logs
+	@USER_UID=$$(id -u) USER_GID=$$(id -g) LOG_LEVEL=debug docker compose -f sharding-compose.yml up --force-recreate -d --build
+	@echo "Services rebuilt with user UID=$$(id -u):$$(id -g)"
+
 docker-run-sh-ha-clean-keep-tb:
 	@echo "Rebuilding services with clean state but preserving BFT config, with sharding and HA enabled as current user..."
 	@docker compose -f sharding-ha-compose.yml down
 	@rm -rf ./data/mongodb_shard1_data_1 ./data/mongodb_shard1_data_2 ./data/mongodb_shard1_data_3 ./data/mongodb_shard2_data_1 ./data/mongodb_shard2_data_2 ./data/mongodb_shard2_data_3 ./data/mongodb_root_data_1 ./data/mongodb_root_data_2 ./data/mongodb_root_data_3 ./data/redis_data
 	@mkdir -p ./data/genesis/root ./data/genesis-root ./data/mongodb_shard1_data_1 ./data/mongodb_shard1_data_2 ./data/mongodb_shard1_data_3 ./data/mongodb_shard2_data_1 ./data/mongodb_shard2_data_2 ./data/mongodb_shard2_data_3 ./data/mongodb_root_data_1 ./data/mongodb_root_data_2 ./data/mongodb_root_data_3 ./data/redis_data && chmod -R 777 ./data
+	@mkdir -p ./logs/shard1-1 ./logs/shard1-2 ./logs/shard2-1 ./logs/shard2-2 ./logs/root-1 && chmod -R 777 ./logs
 	@USER_UID=$$(id -u) USER_GID=$$(id -g) LOG_LEVEL=debug docker compose -f sharding-ha-compose.yml up --force-recreate -d --build
 	@echo "Services rebuilt with user UID=$$(id -u):$$(id -g)"
 
diff --git a/cmd/aggregator/main.go b/cmd/aggregator/main.go
index 0d85144..eec18da 100644
--- a/cmd/aggregator/main.go
+++ b/cmd/aggregator/main.go
@@ -39,12 +39,17 @@ func main() {
 	}
 
 	// Initialize logger
-	baseLogger, err := logger.New(
-		cfg.Logging.Level,
-		cfg.Logging.Format,
-		cfg.Logging.Output,
-		cfg.Logging.EnableJSON,
-	)
+	baseLogger, err := logger.NewWithConfig(logger.LogConfig{
+		Level:           cfg.Logging.Level,
+		Format:          cfg.Logging.Format,
+		Output:          cfg.Logging.Output,
+		EnableJSON:      cfg.Logging.EnableJSON,
+		FilePath:        cfg.Logging.FilePath,
+		MaxSizeMB:       cfg.Logging.MaxSizeMB,
+		MaxBackups:      cfg.Logging.MaxBackups,
+		MaxAgeDays:      cfg.Logging.MaxAgeDays,
+		CompressBackups: cfg.Logging.CompressBackups,
+	})
 	if err != nil {
 		fmt.Printf("Failed to initialize logger: %v\n", err)
 		os.Exit(1)
@@ -66,6 +71,16 @@ func main() {
 		log = baseLogger
 	}
 
+	// Log file logging configuration if enabled
+	if cfg.Logging.FilePath != "" {
+		log.WithComponent("main").Info("File logging enabled",
+			"filePath", cfg.Logging.FilePath,
+			"maxSizeMB", cfg.Logging.MaxSizeMB,
+			"maxBackups", cfg.Logging.MaxBackups,
+			"maxAgeDays", cfg.Logging.MaxAgeDays,
+			"compress", cfg.Logging.CompressBackups)
+	}
+
 	log.WithComponent("main").Info("Starting Unicity Aggregator")
 
 	// create global context
@@ -241,6 +256,11 @@ func main() {
 	if asyncLogger != nil {
 		asyncLogger.Stop()
 	}
+
+	// Close file logger if enabled
+	if err := baseLogger.Close(); err != nil {
+		fmt.Printf("Failed to close file logger: %v\n", err)
+	}
 }
 
 type leaderSelector interface {
diff --git a/go.mod b/go.mod
index 1167d4d..b40c50b 100644
--- a/go.mod
+++ b/go.mod
@@ -19,6 +19,7 @@ require (
 	go.opentelemetry.io/otel/metric v1.38.0
 	go.opentelemetry.io/otel/trace v1.38.0
 	golang.org/x/net v0.45.0
+	gopkg.in/natefinch/lumberjack.v2 v2.2.1
 )
 
 require (
diff --git a/go.sum b/go.sum
index 3da3e31..c6cd25c 100644
--- a/go.sum
+++ b/go.sum
@@ -852,6 +852,8 @@ gopkg.in/check.v1 v1.0.0-20190902080502-41f04d3bba15/go.mod h1:Co6ibVJAznAaIkqp8
 gopkg.in/check.v1 v1.0.0-20201130134442-10cb98267c6c h1:Hei/4ADfdWqJk1ZMxUNpqntNwaWcugrBjAiHlqqRiVk=
 gopkg.in/check.v1 v1.0.0-20201130134442-10cb98267c6c/go.mod h1:JHkPIbrfpd72SG/EVd6muEfDQjcINNoR0C8j2r3qZ4Q=
 gopkg.in/inf.v0 v0.9.1/go.mod h1:cWUDdTG/fYaXco+Dcufb5Vnc6Gp2YChqWtbxRZE0mXw=
+gopkg.in/natefinch/lumberjack.v2 v2.2.1 h1:bBRl1b0OH9s/DuPhuXpNl+VtCaJXFZ5/uEFST95x9zc=
+gopkg.in/natefinch/lumberjack.v2 v2.2.1/go.mod h1:YD8tP3GAjkrDg1eZH7EGmyESg/lsYskCTPBJVb9jqSc=
 gopkg.in/yaml.v2 v2.2.1/go.mod h1:hI93XBmqTisBFMUTm0b8Fm+jr3Dg1NNxqwp+5A1VGuI=
 gopkg.in/yaml.v2 v2.2.2/go.mod h1:hI93XBmqTisBFMUTm0b8Fm+jr3Dg1NNxqwp+5A1VGuI=
 gopkg.in/yaml.v2 v2.2.8/go.mod h1:hI93XBmqTisBFMUTm0b8Fm+jr3Dg1NNxqwp+5A1VGuI=
diff --git a/internal/config/config.go b/internal/config/config.go
index 1a3f9e8..1e51d36 100644
--- a/internal/config/config.go
+++ b/internal/config/config.go
@@ -85,6 +85,12 @@ type LoggingConfig struct {
 	EnableJSON      bool   `mapstructure:"enable_json"`
 	EnableAsync     bool   `mapstructure:"enable_async"`
 	AsyncBufferSize int    `mapstructure:"async_buffer_size"`
+	// File logging with rotation
+	FilePath        string `mapstructure:"file_path"`        // Path to log file (empty = no file logging)
+	MaxSizeMB       int    `mapstructure:"max_size_mb"`      // Max size in MB before rotation (default 100)
+	MaxBackups      int    `mapstructure:"max_backups"`      // Max number of old log files to retain (default 30)
+	MaxAgeDays      int    `mapstructure:"max_age_days"`     // Max days to retain old log files (default 30)
+	CompressBackups bool   `mapstructure:"compress_backups"` // Compress rotated log files (default true)
 }
 
 // ProcessingConfig holds batch processing configuration
@@ -283,6 +289,12 @@ func Load() (*Config, error) {
 			EnableJSON:      getEnvBoolOrDefault("LOG_ENABLE_JSON", true),
 			EnableAsync:     getEnvBoolOrDefault("LOG_ENABLE_ASYNC", true),
 			AsyncBufferSize: getEnvIntOrDefault("LOG_ASYNC_BUFFER_SIZE", 10000),
+			// File logging with rotation
+			FilePath:        getEnvOrDefault("LOG_FILE_PATH", ""),
+			MaxSizeMB:       getEnvIntOrDefault("LOG_MAX_SIZE_MB", 100),
+			MaxBackups:      getEnvIntOrDefault("LOG_MAX_BACKUPS", 30),
+			MaxAgeDays:      getEnvIntOrDefault("LOG_MAX_AGE_DAYS", 30),
+			CompressBackups: getEnvBoolOrDefault("LOG_COMPRESS_BACKUPS", true),
 		},
 		Processing: ProcessingConfig{
 			BatchLimit:             getEnvIntOrDefault("BATCH_LIMIT", 1000),
diff --git a/internal/logger/logger.go b/internal/logger/logger.go
index ac5062f..74897c0 100644
--- a/internal/logger/logger.go
+++ b/internal/logger/logger.go
@@ -6,6 +6,8 @@ import (
 	"log/slog"
 	"os"
 	"strings"
+
+	"gopkg.in/natefinch/lumberjack.v2"
 )
 
 // ContextKey type for context keys
@@ -21,13 +23,37 @@ const (
 // Logger wraps slog.Logger with additional functionality
 type Logger struct {
 	*slog.Logger
+	fileWriter io.Closer // holds reference to lumberjack for cleanup
+}
+
+// LogConfig holds the configuration for creating a logger
+type LogConfig struct {
+	Level           string
+	Format          string
+	Output          string
+	EnableJSON      bool
+	FilePath        string // Path to log file (empty = no file logging)
+	MaxSizeMB       int    // Max size in MB before rotation
+	MaxBackups      int    // Max number of old log files to retain
+	MaxAgeDays      int    // Max days to retain old log files
+	CompressBackups bool   // Compress rotated log files
 }
 
 // New creates a new logger instance
 func New(level, format, output string, enableJSON bool) (*Logger, error) {
+	return NewWithConfig(LogConfig{
+		Level:      level,
+		Format:     format,
+		Output:     output,
+		EnableJSON: enableJSON,
+	})
+}
+
+// NewWithConfig creates a new logger instance with full configuration including file rotation
+func NewWithConfig(cfg LogConfig) (*Logger, error) {
 	// Parse log level
 	var logLevel slog.Level
-	switch strings.ToLower(level) {
+	switch strings.ToLower(cfg.Level) {
 	case "debug":
 		logLevel = slog.LevelDebug
 	case "info":
@@ -40,19 +66,48 @@ func New(level, format, output string, enableJSON bool) (*Logger, error) {
 		logLevel = slog.LevelInfo
 	}
 
-	// Determine output writer
-	var writer io.Writer
-	switch output {
-	case "stdout", "":
-		writer = os.Stdout
+	// Determine console output writer
+	var consoleWriter io.Writer
+	switch cfg.Output {
 	case "stderr":
-		writer = os.Stderr
+		consoleWriter = os.Stderr
 	default:
-		file, err := os.OpenFile(output, os.O_CREATE|os.O_WRONLY|os.O_APPEND, 0666)
-		if err != nil {
-			return nil, err
+		consoleWriter = os.Stdout
+	}
+
+	// Build the final writer (console only, or multi-writer with file)
+	var writer io.Writer
+	var fileWriter *lumberjack.Logger
+
+	if cfg.FilePath != "" {
+		// Set defaults if not provided
+		maxSize := cfg.MaxSizeMB
+		if maxSize <= 0 {
+			maxSize = 100 // 100 MB default
 		}
-		writer = file
+		maxBackups := cfg.MaxBackups
+		if maxBackups <= 0 {
+			maxBackups = 30
+		}
+		maxAge := cfg.MaxAgeDays
+		if maxAge <= 0 {
+			maxAge = 30
+		}
+
+		// Create lumberjack logger for file rotation
+		fileWriter = &lumberjack.Logger{
+			Filename:   cfg.FilePath,
+			MaxSize:    maxSize,    // megabytes
+			MaxBackups: maxBackups, // number of backups
+			MaxAge:     maxAge,     // days
+			Compress:   cfg.CompressBackups,
+			LocalTime:  true, // use local time for backup timestamps
+		}
+
+		// Combine console and file writers
+		writer = io.MultiWriter(consoleWriter, fileWriter)
+	} else {
+		writer = consoleWriter
 	}
 
 	// Create handler options
@@ -62,14 +117,22 @@ func New(level, format, output string, enableJSON bool) (*Logger, error) {
 
 	// Create handler based on format
 	var handler slog.Handler
-	if enableJSON || format == "json" {
+	if cfg.EnableJSON || cfg.Format == "json" {
 		handler = slog.NewJSONHandler(writer, opts)
 	} else {
 		handler = slog.NewTextHandler(writer, opts)
 	}
 
 	logger := slog.New(handler)
-	return &Logger{Logger: logger}, nil
+	return &Logger{Logger: logger, fileWriter: fileWriter}, nil
+}
+
+// Close closes any file writers (call on shutdown for clean log rotation)
+func (l *Logger) Close() error {
+	if l.fileWriter != nil {
+		return l.fileWriter.Close()
+	}
+	return nil
 }
 
 // WithContext creates a new logger with context values
diff --git a/sharding-compose.yml b/sharding-compose.yml
index 2a53efa..921b7bb 100644
--- a/sharding-compose.yml
+++ b/sharding-compose.yml
@@ -168,6 +168,7 @@ services:
       - default
     volumes:
       - ./data/genesis:/app/bft-config
+      - ./logs/shard1:/app/logs
       - ./certs:/app/certs:ro
     ulimits:
       nofile:
@@ -200,6 +201,7 @@ services:
       LOG_LEVEL: "debug"
       LOG_FORMAT: "json"
       LOG_ENABLE_JSON: "true"
+      LOG_FILE_PATH: "/app/logs/aggregator.log"
 
       # Processing Configuration
       BATCH_LIMIT: "1000"
@@ -273,6 +275,9 @@ services:
     container_name: aggregator-shard2
     ports:
       - "3002:3000"
+    volumes:
+      - ./data/genesis:/app/bft-config
+      - ./logs/shard2:/app/logs
     environment:
       <<: *environment-base
       MONGODB_URI: "mongodb://mongodb-shard2:27017/aggregator?replicaSet=rs-shard2&directConnection=true"
@@ -295,6 +300,9 @@ services:
     container_name: aggregator-root
     ports:
       - "3009:3000"
+    volumes:
+      - ./data/genesis:/app/bft-config
+      - ./logs/root:/app/logs
     environment:
       <<: *environment-base
       MONGODB_URI: "mongodb://mongodb-root:27017/aggregator?replicaSet=rs-root&directConnection=true"
diff --git a/sharding-ha-compose.yml b/sharding-ha-compose.yml
index 6c52671..93c6f24 100644
--- a/sharding-ha-compose.yml
+++ b/sharding-ha-compose.yml
@@ -287,6 +287,7 @@ services:
       - default
     volumes:
       - ./data/genesis:/app/bft-config
+      - ./logs/shard1-1:/app/logs
     depends_on:
       - mongo-setup-shard1
       - bft-aggregator-genesis-gen
@@ -308,6 +309,7 @@ services:
       LOG_LEVEL: "debug"
       LOG_FORMAT: "json"
       LOG_ENABLE_JSON: "true"
+      LOG_FILE_PATH: "/app/logs/aggregator.log"
       BATCH_LIMIT: "1000"
       COLLECT_PHASE_DURATION: "500ms"
       BFT_ENABLED: "false"
@@ -361,6 +363,9 @@ services:
     container_name: aggregator-shard1-2
     ports:
       - "3012:3000"
+    volumes:
+      - ./data/genesis:/app/bft-config
+      - ./logs/shard1-2:/app/logs
     environment:
       <<: *environment-base
       MONGODB_URI: "mongodb://mongodb-shard1-1:27017,mongodb-shard1-2:27017,mongodb-shard1-3:27017/aggregator?replicaSet=rs1"
@@ -375,6 +380,9 @@ services:
     container_name: aggregator-shard2-1
     ports:
       - "3021:3000"
+    volumes:
+      - ./data/genesis:/app/bft-config
+      - ./logs/shard2-1:/app/logs
     environment:
       <<: *environment-base
       MONGODB_URI: "mongodb://mongodb-shard2-1:27017,mongodb-shard2-2:27017,mongodb-shard2-3:27017/aggregator?replicaSet=rs2"
@@ -390,6 +398,9 @@ services:
     container_name: aggregator-shard2-2
     ports:
       - "3022:3000"
+    volumes:
+      - ./data/genesis:/app/bft-config
+      - ./logs/shard2-2:/app/logs
     environment:
       <<: *environment-base
       MONGODB_URI: "mongodb://mongodb-shard2-1:27017,mongodb-shard2-2:27017,mongodb-shard2-3:27017/aggregator?replicaSet=rs2"
@@ -410,6 +421,9 @@ services:
     container_name: aggregator-root-1
     ports:
       - "3009:3000"
+    volumes:
+      - ./data/genesis:/app/bft-config
+      - ./logs/root-1:/app/logs
     environment:
       <<: *environment-base
       MONGODB_URI: "mongodb://mongodb-root-1:27017,mongodb-root-2:27017,mongodb-root-3:27017/aggregator?replicaSet=rs-root"