diff --git a/README.md b/README.md
index def68e97..882a07a7 100644
--- a/README.md
+++ b/README.md
@@ -49,6 +49,10 @@ The backend architecture:
 - [Installation](./docs/user_guide/install.md)
 - [Getting Started](./docs/user_guide/quick_start.md)
 
+## Logs
+
+Parallax mirrors every log message to both the terminal and a rotating log file stored at `logs/parallax.log` inside your project directory (created automatically). Override the location via `PARALLAX_LOG_DIR` or `PARALLAX_LOG_FILE`, and tweak rotation with `PARALLAX_LOG_MAX_BYTES` and `PARALLAX_LOG_BACKUP_COUNT`.
+
 ## Contributing
 
 We warmly welcome contributions of all kinds! For guidelines on how to get involved, please refer to our [Contributing Guide](./docs/CONTRIBUTING.md).
diff --git a/src/parallax_utils/logging_config.py b/src/parallax_utils/logging_config.py
index 7cb7f799..db2c258c 100644
--- a/src/parallax_utils/logging_config.py
+++ b/src/parallax_utils/logging_config.py
@@ -4,12 +4,26 @@
 import os
 import sys
 import threading
+from logging.handlers import RotatingFileHandler
+from pathlib import Path
 from typing import Optional
 
+from parallax_utils.file_util import get_project_root
+
 __all__ = ["get_logger", "use_parallax_log_handler", "set_log_level"]
 
 _init_lock = threading.Lock()
 _default_handler: logging.Handler | None = None
+_file_handler: logging.Handler | None = None
+
+DEFAULT_LOG_DIR_NAME = "logs"
+DEFAULT_LOG_FILE_NAME = "parallax.log"
+LOG_FILE_ENV = "PARALLAX_LOG_FILE"
+LOG_DIR_ENV = "PARALLAX_LOG_DIR"
+LOG_MAX_BYTES_ENV = "PARALLAX_LOG_MAX_BYTES"
+LOG_BACKUP_COUNT_ENV = "PARALLAX_LOG_BACKUP_COUNT"
+DEFAULT_LOG_MAX_BYTES = 10 * 1024 * 1024
+DEFAULT_LOG_BACKUP_COUNT = 5
 
 
 class _Ansi:
@@ -69,12 +83,69 @@ def __init__(self, prefixes):
         def filter(self, rec: logging.LogRecord) -> bool:
             return any(rec.name.startswith(p) for p in self._prefixes)
 
-    _default_handler.addFilter(_ModuleFilter(target_module_prefix))
-    root.addHandler(_default_handler)
+    handlers = []
+    if _default_handler is not None:
+        handlers.append(_default_handler)
+    if _file_handler is not None:
+        handlers.append(_file_handler)
+
+    for handler in handlers:
+        handler.addFilter(_ModuleFilter(target_module_prefix))
+        root.addHandler(handler)
+
+
+def _safe_int_from_env(var_name: str, default: int) -> int:
+    raw_value = os.getenv(var_name)
+    if raw_value is None:
+        return default
+    try:
+        parsed = int(raw_value)
+        return parsed if parsed > 0 else default
+    except (TypeError, ValueError):
+        return default
+
+
+def _resolve_log_file_path() -> Path:
+    env_file = os.getenv(LOG_FILE_ENV)
+    if env_file:
+        path = Path(env_file).expanduser()
+        path.parent.mkdir(parents=True, exist_ok=True)
+        return path
+
+    custom_dir = os.getenv(LOG_DIR_ENV)
+    if custom_dir:
+        directory = Path(custom_dir).expanduser()
+    else:
+        try:
+            directory = get_project_root() / DEFAULT_LOG_DIR_NAME
+        except Exception:
+            directory = Path.cwd() / DEFAULT_LOG_DIR_NAME
+    directory.mkdir(parents=True, exist_ok=True)
+    return directory / DEFAULT_LOG_FILE_NAME
+
+
+def _create_file_handler(formatter: logging.Formatter) -> logging.Handler | None:
+    try:
+        log_path = _resolve_log_file_path()
+    except Exception:
+        return None
+
+    max_bytes = _safe_int_from_env(LOG_MAX_BYTES_ENV, DEFAULT_LOG_MAX_BYTES)
+    backup_count = _safe_int_from_env(LOG_BACKUP_COUNT_ENV, DEFAULT_LOG_BACKUP_COUNT)
+    try:
+        handler = RotatingFileHandler(
+            log_path,
+            maxBytes=max_bytes,
+            backupCount=backup_count,
+        )
+        handler.setFormatter(formatter)
+        return handler
+    except Exception:
+        return None
 
 
 def _initialize_if_necessary():
-    global _default_handler
+    global _default_handler, _file_handler
 
     with _init_lock:
         if _default_handler is not None:
@@ -88,6 +159,7 @@ def _initialize_if_necessary():
         formatter = CustomFormatter(fmt=fmt, style="{", datefmt="%b %d %H:%M:%S")
         _default_handler = logging.StreamHandler(stream=sys.stdout)
         _default_handler.setFormatter(formatter)
+        _file_handler = _create_file_handler(formatter)
 
         # root level from env or INFO
         logging.getLogger().setLevel("INFO")