diff --git a/app_python/app.py b/app_python/app.py
index e05047b8c4..c63be56286 100644
--- a/app_python/app.py
+++ b/app_python/app.py
@@ -1,118 +1,285 @@
-import os
-import socket
-import platform
-import logging
-from datetime import datetime, timezone
-from flask import Flask, jsonify, request
-
-logging.basicConfig(
-    level=logging.INFO,
-    format='%(asctime)s - %(name)s - %(levelname)s - %(message)s'
-)
-logger = logging.getLogger(__name__)
-
-app = Flask(__name__)
-
-# Configuration
-HOST = os.getenv('HOST', '0.0.0.0')
-PORT = int(os.getenv('PORT', 5000))
-DEBUG = os.getenv('DEBUG', 'False').lower() == 'true'
-
-# Application start time
-START_TIME = datetime.now(timezone.utc)
-
-def get_uptime():
-    """Calculation of the application's operating time."""
-    delta = datetime.now(timezone.utc) - START_TIME
-    seconds = int(delta.total_seconds())
-    hours = seconds // 3600
-    minutes = (seconds % 3600) // 60
-    return {
-        'seconds': seconds,
-        'human': f"{hours} hours, {minutes} minutes"
-    }
-
-def get_system_info():
-    """Collect system information."""
-    return {
-        'hostname': socket.gethostname(),
-        'platform': platform.system(),
-        'platform_version': get_platform_version(),
-        'architecture': platform.machine(),
-        'cpu_count': os.cpu_count(),
-        'python_version': platform.python_version()
-    }
-
-@app.route('/')
-def index():
-    """Main endpoint - service and system information."""
-    uptime = get_uptime()
-    
-    response = {
-        'service': {
-            'name': 'devops-info-service',
-            'version': '1.0.0',
-            'description': 'DevOps course info service',
-            'framework': 'Flask'
-        },
-        'system': get_system_info(),
-        'runtime': {
-            'uptime_seconds': uptime['seconds'],
-            'uptime_human': uptime['human'],
-            'current_time': datetime.now(timezone.utc).isoformat(timespec="milliseconds").replace("+00:00", "Z"),
-            'timezone': 'UTC'
-        },
-        'request': {
-            'client_ip': request.remote_addr,
-            'user_agent': request.headers.get('User-Agent'),
-            'method': request.method,
-            'path': request.path
-        },
-        'endpoints': [
-            {'path': '/', 'method': 'GET', 'description': 'Service information'},
-            {'path': '/health', 'method': 'GET', 'description': 'Health check'}
-        ]
-    }
-    
-    logger.info("Request %s %s from %s", request.method, request.path, request.remote_addr)
-    return jsonify(response)
-
-@app.route('/health')
-def health():
-    """Health check endpoint for monitoring."""
-    logger.info("Request %s %s from %s", request.method, request.path, request.remote_addr)
-    return jsonify({
-        'status': 'healthy',
-        'timestamp': datetime.now(timezone.utc).isoformat(timespec="milliseconds").replace("+00:00", "Z"),
-        'uptime_seconds': get_uptime()['seconds']
-    })
-
-@app.errorhandler(404)
-def not_found(error):
-    return jsonify({
-        'error': 'Not Found',
-        'message': 'Endpoint does not exist'
-    }), 404
-
-@app.errorhandler(500)
-def internal_error(error):
-    return jsonify({
-        'error': 'Internal Server Error',
-        'message': 'An unexpected error occurred'
-    }), 500
-
-def get_platform_version():
-    """Return a platform version."""
-    try:
-        if hasattr(platform, "freedesktop_os_release"):
-            info = platform.freedesktop_os_release()
-            if info.get("PRETTY_NAME"):
-                return info["PRETTY_NAME"]
-    except Exception:
-        pass
-    return platform.platform()
-
-
-if __name__ == '__main__':
-    logger.info(f'Starting DevOps Info Service on {HOST}:{PORT}')
-    app.run(host=HOST, port=PORT, debug=DEBUG)
\ No newline at end of file
+import json
+import logging
+import os
+import platform
+import socket
+import sys
+import time
+from datetime import datetime, timezone
+
+from flask import Flask, g, has_request_context, jsonify, request
+from werkzeug.exceptions import HTTPException
+
+SERVICE_NAME = "devops-info-service"
+SERVICE_VERSION = "1.0.0"
+HOST = os.getenv("HOST", "0.0.0.0")
+PORT = int(os.getenv("PORT", 5000))
+DEBUG = os.getenv("DEBUG", "False").lower() == "true"
+START_TIME = datetime.now(timezone.utc)
+
+
+class JSONFormatter(logging.Formatter):
+    """Format log records as structured JSON for Loki/Grafana."""
+
+    EXTRA_FIELDS = (
+        "event",
+        "service",
+        "host",
+        "port",
+        "debug",
+        "method",
+        "path",
+        "endpoint",
+        "status_code",
+        "client_ip",
+        "user_agent",
+        "duration_ms",
+    )
+
+    def format(self, record: logging.LogRecord) -> str:
+        payload = {
+            "timestamp": datetime.fromtimestamp(
+                record.created, tz=timezone.utc
+            ).isoformat(timespec="milliseconds").replace("+00:00", "Z"),
+            "level": record.levelname,
+            "logger": record.name,
+            "message": record.getMessage(),
+            "service": SERVICE_NAME,
+        }
+
+        for field in self.EXTRA_FIELDS:
+            value = getattr(record, field, None)
+            if value is not None:
+                payload[field] = value
+
+        if record.exc_info:
+            payload["exception"] = self.formatException(record.exc_info)
+
+        return json.dumps(payload, ensure_ascii=False)
+
+
+def configure_logging() -> logging.Logger:
+    """Configure application logging to stdout in JSON format."""
+    handler = logging.StreamHandler(sys.stdout)
+    handler.setFormatter(JSONFormatter())
+
+    root_logger = logging.getLogger()
+    root_logger.handlers.clear()
+    root_logger.setLevel(logging.INFO)
+    root_logger.addHandler(handler)
+
+    werkzeug_logger = logging.getLogger("werkzeug")
+    werkzeug_logger.handlers.clear()
+    werkzeug_logger.propagate = False
+    werkzeug_logger.disabled = True
+
+    return logging.getLogger(SERVICE_NAME)
+
+
+logger = configure_logging()
+app = Flask(__name__)
+
+
+def get_platform_version() -> str:
+    """Return a platform version."""
+    try:
+        if hasattr(platform, "freedesktop_os_release"):
+            info = platform.freedesktop_os_release()
+            if info.get("PRETTY_NAME"):
+                return info["PRETTY_NAME"]
+    except Exception:
+        pass
+    return platform.platform()
+
+
+def get_uptime() -> dict:
+    """Calculate the application's uptime."""
+    delta = datetime.now(timezone.utc) - START_TIME
+    seconds = int(delta.total_seconds())
+    hours = seconds // 3600
+    minutes = (seconds % 3600) // 60
+    return {
+        "seconds": seconds,
+        "human": f"{hours} hours, {minutes} minutes",
+    }
+
+
+def get_system_info() -> dict:
+    """Collect system information."""
+    return {
+        "hostname": socket.gethostname(),
+        "platform": platform.system(),
+        "platform_version": get_platform_version(),
+        "architecture": platform.machine(),
+        "cpu_count": os.cpu_count(),
+        "python_version": platform.python_version(),
+    }
+
+
+def get_client_ip() -> str | None:
+    """Return the client IP, preferring X-Forwarded-For when present."""
+    if not has_request_context():
+        return None
+
+    forwarded_for = request.headers.get("X-Forwarded-For", "")
+    if forwarded_for:
+        return forwarded_for.split(",")[0].strip()
+    return request.remote_addr
+
+
+def build_request_log_context(status_code: int | None = None) -> dict:
+    """Build structured context for request-related logs."""
+    context: dict[str, object] = {"event": "http.request", "service": SERVICE_NAME}
+
+    if not has_request_context():
+        return context
+
+    context.update(
+        {
+            "method": request.method,
+            "path": request.path,
+            "endpoint": request.endpoint,
+            "client_ip": get_client_ip(),
+            "user_agent": request.headers.get("User-Agent"),
+        }
+    )
+
+    if status_code is not None:
+        context["status_code"] = status_code
+
+    started_at = getattr(g, "request_started_at", None)
+    if started_at is not None:
+        context["duration_ms"] = round((time.perf_counter() - started_at) * 1000, 2)
+
+    return context
+
+
+@app.before_request
+def track_request_start() -> None:
+    """Store request start time for structured logging."""
+    g.request_started_at = time.perf_counter()
+
+
+@app.after_request
+def log_response(response):
+    """Log every completed HTTP request as JSON."""
+    level = logging.INFO
+    if response.status_code >= 400:
+        level = logging.ERROR
+
+    logger.log(
+        level,
+        "HTTP request completed",
+        extra=build_request_log_context(response.status_code),
+    )
+    return response
+
+
+@app.route("/")
+def index():
+    """Main endpoint - service and system information."""
+    uptime = get_uptime()
+
+    response = {
+        "service": {
+            "name": SERVICE_NAME,
+            "version": SERVICE_VERSION,
+            "description": "DevOps course info service",
+            "framework": "Flask",
+        },
+        "system": get_system_info(),
+        "runtime": {
+            "uptime_seconds": uptime["seconds"],
+            "uptime_human": uptime["human"],
+            "current_time": datetime.now(timezone.utc)
+            .isoformat(timespec="milliseconds")
+            .replace("+00:00", "Z"),
+            "timezone": "UTC",
+        },
+        "request": {
+            "client_ip": get_client_ip(),
+            "user_agent": request.headers.get("User-Agent"),
+            "method": request.method,
+            "path": request.path,
+        },
+        "endpoints": [
+            {"path": "/", "method": "GET", "description": "Service information"},
+            {"path": "/health", "method": "GET", "description": "Health check"},
+        ],
+    }
+
+    return jsonify(response)
+
+
+@app.route("/health")
+def health():
+    """Health check endpoint for monitoring."""
+    return jsonify(
+        {
+            "status": "healthy",
+            "timestamp": datetime.now(timezone.utc)
+            .isoformat(timespec="milliseconds")
+            .replace("+00:00", "Z"),
+            "uptime_seconds": get_uptime()["seconds"],
+        }
+    )
+
+
+@app.errorhandler(404)
+def not_found(error):
+    return (
+        jsonify(
+            {
+                "error": "Not Found",
+                "message": "Endpoint does not exist",
+            }
+        ),
+        404,
+    )
+
+
+@app.errorhandler(405)
+def method_not_allowed(error):
+    return (
+        jsonify(
+            {
+                "error": "Method Not Allowed",
+                "message": "Method is not allowed for this endpoint",
+            }
+        ),
+        405,
+    )
+
+
+@app.errorhandler(Exception)
+def handle_unexpected_error(error):
+    if isinstance(error, HTTPException):
+        return error
+
+    logger.exception(
+        "Unhandled application error",
+        extra=build_request_log_context(status_code=500),
+    )
+    return (
+        jsonify(
+            {
+                "error": "Internal Server Error",
+                "message": "An unexpected error occurred",
+            }
+        ),
+        500,
+    )
+
+
+if __name__ == "__main__":
+    logger.info(
+        "Application startup",
+        extra={
+            "event": "app.startup",
+            "service": SERVICE_NAME,
+            "host": HOST,
+            "port": PORT,
+            "debug": DEBUG,
+        },
+    )
+    app.run(host=HOST, port=PORT, debug=DEBUG)
diff --git a/monitoring/docker-compose.yml b/monitoring/docker-compose.yml
new file mode 100644
index 0000000000..b5b18eaa6a
--- /dev/null
+++ b/monitoring/docker-compose.yml
@@ -0,0 +1,137 @@
+name: lab07-monitoring
+
+version: "3.8"
+
+x-default-resources: &default-resources
+  deploy:
+    resources:
+      limits:
+        cpus: "1.0"
+        memory: 1G
+      reservations:
+        cpus: "0.25"
+        memory: 256M
+
+services:
+  loki:
+    image: grafana/loki:3.0.0
+    container_name: loki
+    command:
+      - -config.file=/etc/loki/config.yml
+    ports:
+      - "3100:3100"
+    volumes:
+      - ./loki/config.yml:/etc/loki/config.yml:ro
+      - loki-data:/loki
+    networks:
+      - logging
+    labels:
+      logging: "promtail"
+      app: "devops-loki"
+    restart: unless-stopped
+    healthcheck:
+      test: ["CMD-SHELL", "wget --no-verbose --tries=1 --spider http://localhost:3100/ready || exit 1"]
+      interval: 10s
+      timeout: 5s
+      retries: 10
+      start_period: 15s
+    <<: *default-resources
+
+  promtail:
+    image: grafana/promtail:3.0.0
+    container_name: promtail
+    command:
+      - -config.file=/etc/promtail/config.yml
+    ports:
+      - "9080:9080"
+    volumes:
+      - ./promtail/config.yml:/etc/promtail/config.yml:ro
+      - promtail-positions:/tmp/positions
+      - /var/lib/docker/containers:/var/lib/docker/containers:ro
+      - /var/run/docker.sock:/var/run/docker.sock:ro
+    networks:
+      - logging
+    labels:
+      logging: "promtail"
+      app: "devops-promtail"
+    depends_on:
+      loki:
+        condition: service_healthy
+    restart: unless-stopped
+    <<: *default-resources
+
+  grafana:
+    image: grafana/grafana:12.3.1
+    container_name: grafana
+    ports:
+      - "3000:3000"
+    environment:
+      GF_AUTH_ANONYMOUS_ENABLED: "false"
+      GF_SECURITY_ALLOW_EMBEDDING: "false"
+      GF_USERS_ALLOW_SIGN_UP: "false"
+      GF_SECURITY_ADMIN_USER: "${GRAFANA_ADMIN_USER:-admin}"
+      GF_SECURITY_ADMIN_PASSWORD: "${GRAFANA_ADMIN_PASSWORD:?set GRAFANA_ADMIN_PASSWORD in monitoring/.env}"
+    volumes:
+      - grafana-data:/var/lib/grafana
+      - ./grafana/provisioning:/etc/grafana/provisioning:ro
+      - ./grafana/dashboards:/var/lib/grafana/dashboards:ro
+    networks:
+      - logging
+    labels:
+      logging: "promtail"
+      app: "devops-grafana"
+    depends_on:
+      loki:
+        condition: service_healthy
+    restart: unless-stopped
+    healthcheck:
+      test: ["CMD-SHELL", "wget --no-verbose --tries=1 --spider http://localhost:3000/api/health || exit 1"]
+      interval: 15s
+      timeout: 5s
+      retries: 10
+      start_period: 25s
+    <<: *default-resources
+
+  app-python:
+    build:
+      context: ../app_python
+      dockerfile: Dockerfile
+    image: devops-info-service:lab07
+    container_name: app-python
+    environment:
+      HOST: 0.0.0.0
+      PORT: 8000
+      PYTHONUNBUFFERED: "1"
+    ports:
+      - "8000:8000"
+    networks:
+      - logging
+    labels:
+      logging: "promtail"
+      app: "devops-python"
+    depends_on:
+      promtail:
+        condition: service_started
+    restart: unless-stopped
+    healthcheck:
+      test:
+        [
+          "CMD",
+          "python",
+          "-c",
+          "import urllib.request; urllib.request.urlopen('http://localhost:8000/health', timeout=3)",
+        ]
+      interval: 15s
+      timeout: 5s
+      retries: 5
+      start_period: 10s
+    <<: *default-resources
+
+volumes:
+  loki-data:
+  grafana-data:
+  promtail-positions:
+
+networks:
+  logging:
+    driver: bridge
diff --git a/monitoring/docs/LAB07.md b/monitoring/docs/LAB07.md
new file mode 100644
index 0000000000..5c609ceba8
--- /dev/null
+++ b/monitoring/docs/LAB07.md
@@ -0,0 +1,343 @@
+# Lab 07 — Observability & Logging with Loki Stack
+
+## 1. Architecture
+
+This lab deploys a centralized logging stack based on the Grafana Loki ecosystem.
+
+### Components
+- **Loki** — stores and indexes logs.
+- **Promtail** — discovers Docker containers and ships logs to Loki.
+- **Grafana** — visualizes and queries logs with LogQL.
+- **Python application** — emits structured JSON logs to stdout.
+
+### Data flow
+1. The Python container writes JSON logs to stdout.
+2. Docker stores container logs.
+3. Promtail discovers running containers through the Docker socket and reads their logs.
+4. Promtail pushes log streams to Loki.
+5. Grafana connects to Loki as a data source and visualizes logs in Explore and on dashboards.
+
+### Services in the stack
+- `loki`
+- `promtail`
+- `grafana`
+- `app-python`
+
+## 2. Setup Guide
+
+### Directory structure
+```text
+monitoring/
+├── docker-compose.yml
+├── .env.example
+├── loki/
+│   └── config.yml
+├── promtail/
+│   └── config.yml
+├── grafana/
+│   ├── dashboards/
+│   │   └── lab07-observability.json
+│   └── provisioning/
+│       ├── dashboards/
+│       │   └── dashboard.yml
+│       └── datasources/
+│           └── loki.yml
+└── docs/
+    ├── LAB07.md
+    └── screenshots/
+```
+
+### Deployment steps
+1. Open the `monitoring` directory.
+2. Create a local `.env` file from the example:
+   ```bash
+   cp .env.example .env
+   ```
+   On Windows PowerShell:
+   ```powershell
+   Copy-Item .env.example .env
+   ```
+3. Set a Grafana admin password in `.env`:
+   ```env
+   GRAFANA_ADMIN_PASSWORD=your_secure_password
+   ```
+4. Start the stack:
+   ```bash
+   docker compose up -d --build
+   ```
+5. Check service status:
+   ```bash
+   docker compose ps
+   ```
+6. Open Grafana:
+   - URL: `http://localhost:3000`
+   - Username: value from `GF_SECURITY_ADMIN_USER` or default `admin`
+   - Password: value from `GRAFANA_ADMIN_PASSWORD`
+
+## 3. Configuration
+
+### Docker Compose
+The stack is defined in `monitoring/docker-compose.yml`.
+
+Key implementation details:
+- Loki uses image `grafana/loki:3.0.0` and exposes port `3100`.
+- Promtail uses image `grafana/promtail:3.0.0` and mounts:
+  - `/var/run/docker.sock`
+  - Docker log storage
+- Grafana uses image `grafana/grafana:12.3.1` and exposes port `3000`.
+- All services share the `logging` network.
+- Persistent named volumes are used for Loki and Grafana data.
+- Health checks are defined for Loki, Grafana, and the Python app.
+- Resource limits and reservations are configured for production readiness.
+
+### Loki configuration
+File: `monitoring/loki/config.yml`
+
+The Loki configuration includes:
+- `auth_enabled: false` for local development.
+- HTTP server on port `3100`.
+- TSDB storage backend with filesystem storage.
+- Schema version `v13`, which is recommended for Loki 3.x.
+- Retention period of **7 days** (`168h`).
+- Compactor enabled to enforce retention.
+
+Why this configuration was chosen:
+- TSDB is the recommended and more efficient index format for Loki 3.0.
+- Filesystem storage is sufficient for a single-node lab setup.
+- A 7-day retention policy is enough for lab validation while keeping storage bounded.
+
+### Promtail configuration
+File: `monitoring/promtail/config.yml`
+
+Promtail is configured to:
+- expose its own HTTP endpoint on port `9080`;
+- store read offsets in a positions file;
+- send logs to `http://loki:3100/loki/api/v1/push`;
+- use Docker service discovery via `docker_sd_configs`;
+- relabel metadata from Docker into queryable labels such as:
+  - `container`
+  - `compose_service`
+  - `app`
+  - `job`
+- parse JSON/container log envelopes so logs appear correctly in Loki.
+
+Why this configuration matters:
+- Docker service discovery allows Promtail to automatically find running containers.
+- Labels make filtering in LogQL much easier.
+- Structured labels and parsed JSON logs enable targeted observability use cases.
+
+### Grafana provisioning
+Grafana is provisioned automatically with:
+- a Loki data source via `grafana/provisioning/datasources/loki.yml`;
+- a dashboard provider via `grafana/provisioning/dashboards/dashboard.yml`;
+- a prebuilt dashboard file `grafana/dashboards/lab07-observability.json`.
+
+This avoids manual setup after each redeploy.
+
+## 4. Application Logging
+
+The Python application was updated to emit **JSON logs** to stdout.
+
+### Logging requirements implemented
+The logs include structured fields such as:
+- `timestamp`
+- `level`
+- `logger`
+- `message`
+- `service`
+- `event`
+- `method`
+- `path`
+- `status_code`
+- `client_ip`
+- `user_agent`
+- `duration_ms`
+
+### Events logged
+- application startup;
+- successful HTTP requests;
+- failed requests, including `404` errors.
+
+### Why JSON logging was used
+JSON logs are better for aggregation because they:
+- can be parsed automatically;
+- support filtering by fields instead of only plain text matching;
+- integrate well with Loki and Grafana Explore.
+
+### Example JSON log
+```json
+{
+  "timestamp": "2026-03-11T17:55:15.191Z",
+  "level": "ERROR",
+  "logger": "devops-info-service",
+  "message": "HTTP request completed",
+  "service": "devops-info-service",
+  "event": "http.request",
+  "method": "GET",
+  "path": "/not-found",
+  "status_code": 404,
+  "client_ip": "172.18.0.1",
+  "duration_ms": 0.09
+}
+```
+
+## 5. Dashboard
+
+A Grafana dashboard named **Lab 07 - Loki Observability** was created and provisioned automatically.
+
+### Panels implemented
+1. **Logs Table**
+   - shows recent logs from all services;
+   - based on Loki log streams.
+
+2. **Request Rate by App**
+   - time series showing log rate per application;
+   - based on `rate()` aggregation grouped by `app`.
+
+3. **Error Logs**
+   - displays only logs with error-level data.
+
+4. **Log Level Distribution**
+   - shows how log entries are distributed by level.
+
+### Example LogQL queries used
+```logql
+{job="docker"}
+{app="devops-python"}
+{app="devops-python"} | json
+{app="devops-python"} | json | path="/health"
+{app="devops-python"} | json | status_code=404
+{app=~"devops-.*"}
+sum by (app) (rate({app=~"devops-.*"}[1m]))
+sum by (level) (count_over_time({app=~"devops-.*"} | json [5m]))
+```
+
+### What was verified in Grafana
+- the Loki data source was available and set as default;
+- logs were visible from multiple containers;
+- JSON fields were extracted and shown in Explore;
+- filtering by `path` and `status_code` worked;
+- the dashboard displayed real traffic data.
+
+## 6. Production Configuration
+
+Several production-readiness improvements were applied.
+
+### Security
+- Anonymous Grafana access was disabled.
+- Grafana credentials are supplied through environment variables.
+- Secrets are stored in `.env`, which should **not** be committed.
+
+### Resource limits
+Resource constraints were configured for the services to avoid uncontrolled resource usage.
+
+Example approach:
+```yaml
+resources:
+  limits:
+    cpus: "1.0"
+    memory: 1G
+  reservations:
+    cpus: "0.25"
+    memory: 256M
+```
+
+### Health checks
+Health checks were added for:
+- Loki: `http://localhost:3100/ready`
+- Grafana: `http://localhost:3000/api/health`
+- Python app: `http://localhost:8000/health`
+
+### Retention
+Loki retention was set to **7 days**.
+
+This provides a realistic baseline for centralized logging while keeping disk usage under control.
+
+## 7. Testing
+
+### Commands used to validate the stack
+```bash
+docker compose up -d --build
+docker compose ps
+docker compose logs app-python
+```
+
+### Traffic generation used for testing
+PowerShell examples:
+```powershell
+1..20 | ForEach-Object {
+  Invoke-WebRequest http://localhost:8000/ -UseBasicParsing | Out-Null
+  Invoke-WebRequest http://localhost:8000/health -UseBasicParsing | Out-Null
+}
+
+1..10 | ForEach-Object {
+  try {
+    Invoke-WebRequest http://localhost:8000/not-found -UseBasicParsing -ErrorAction Stop | Out-Null
+  } catch {}
+}
+```
+
+### Validation results
+- all containers started successfully;
+- health checks passed;
+- JSON logs were produced by `app-python`;
+- Grafana showed logs from multiple services;
+- Explore queries returned expected results for normal and error traffic.
+
+## 8. Challenges and Solutions
+
+### Challenge 1 — Grafana provisioning directories were missing
+At first, Grafana started but did not load the Loki data source or dashboard automatically.
+
+**Cause:**
+The provisioning subdirectories and files were missing or empty.
+
+**Solution:**
+Created and mounted:
+- `grafana/provisioning/datasources/loki.yml`
+- `grafana/provisioning/dashboards/dashboard.yml`
+- `grafana/dashboards/lab07-observability.json`
+
+### Challenge 2 — Application logs were plain text instead of JSON
+Initially the Python app wrote regular text logs, which limited structured querying.
+
+**Solution:**
+Updated the logging implementation so the application emits structured JSON logs to stdout.
+
+### Challenge 3 — PowerShell `curl` behavior on Windows
+On Windows, `curl` is aliased to `Invoke-WebRequest`, which caused prompts and different behavior.
+
+**Solution:**
+Used explicit PowerShell commands with `-UseBasicParsing` for reliable traffic generation.
+
+### Challenge 4 — Filtering logs in Explore
+Some filters did not work at first until the JSON parser and labels were confirmed.
+
+**Solution:**
+Verified labels and used queries such as:
+```logql
+{app="devops-python"} | json | status_code=404
+```
+
+## 9. Evidence
+
+The following evidence should be attached in `monitoring/docs/screenshots/`:
+- `01-datasource-loki.png` — Loki data source page in Grafana.
+- `02-dashboard-overview.png` — dashboard with all panels and real data.
+- `03-explore-queries.png` — Explore page with LogQL queries.
+- `04-explore-results.png` — Explore results with parsed JSON logs.
+- `05-json-logs-app-python.png` — terminal output with JSON logs from the app.
+- `06-docker-compose-ps.png` — all services running and healthy.
+
+## 10. Conclusion
+
+This lab successfully implemented a centralized logging stack using Loki, Promtail, and Grafana.
+
+The final solution provides:
+- centralized collection of container logs;
+- structured JSON application logging;
+- filtering and analysis through LogQL;
+- dashboard-based observability;
+- basic production-readiness features such as health checks, retention, and secured Grafana access.
+
+The stack is suitable as a foundation for further observability practices in later DevOps work.
diff --git a/monitoring/docs/screenshots/01-datasource-loki.png b/monitoring/docs/screenshots/01-datasource-loki.png
new file mode 100644
index 0000000000..9c644fe75d
Binary files /dev/null and b/monitoring/docs/screenshots/01-datasource-loki.png differ
diff --git a/monitoring/docs/screenshots/02-dashboard-overview.png b/monitoring/docs/screenshots/02-dashboard-overview.png
new file mode 100644
index 0000000000..3c794b05f1
Binary files /dev/null and b/monitoring/docs/screenshots/02-dashboard-overview.png differ
diff --git a/monitoring/docs/screenshots/03-explore-queries.png b/monitoring/docs/screenshots/03-explore-queries.png
new file mode 100644
index 0000000000..68f07b02dc
Binary files /dev/null and b/monitoring/docs/screenshots/03-explore-queries.png differ
diff --git a/monitoring/docs/screenshots/04-explore-results.png b/monitoring/docs/screenshots/04-explore-results.png
new file mode 100644
index 0000000000..c8b00bc22b
Binary files /dev/null and b/monitoring/docs/screenshots/04-explore-results.png differ
diff --git a/monitoring/docs/screenshots/05-json-logs-app-python.png b/monitoring/docs/screenshots/05-json-logs-app-python.png
new file mode 100644
index 0000000000..f867539b9e
Binary files /dev/null and b/monitoring/docs/screenshots/05-json-logs-app-python.png differ
diff --git a/monitoring/docs/screenshots/06-docker-compose-ps.png b/monitoring/docs/screenshots/06-docker-compose-ps.png
new file mode 100644
index 0000000000..1bb76cc9a0
Binary files /dev/null and b/monitoring/docs/screenshots/06-docker-compose-ps.png differ
diff --git a/monitoring/grafana/dashboards/lab07-observability.json b/monitoring/grafana/dashboards/lab07-observability.json
new file mode 100644
index 0000000000..958bcaf55a
--- /dev/null
+++ b/monitoring/grafana/dashboards/lab07-observability.json
@@ -0,0 +1,278 @@
+{
+  "annotations": {
+    "list": [
+      {
+        "builtIn": 1,
+        "datasource": {
+          "type": "grafana",
+          "uid": "-- Grafana --"
+        },
+        "enable": true,
+        "hide": true,
+        "iconColor": "rgba(0, 211, 255, 1)",
+        "name": "Annotations & Alerts",
+        "type": "dashboard"
+      }
+    ]
+  },
+  "editable": true,
+  "fiscalYearStartMonth": 0,
+  "graphTooltip": 0,
+  "id": null,
+  "links": [],
+  "liveNow": false,
+  "panels": [
+    {
+      "datasource": {
+        "type": "loki",
+        "uid": "loki"
+      },
+      "gridPos": {
+        "h": 10,
+        "w": 24,
+        "x": 0,
+        "y": 0
+      },
+      "id": 1,
+      "options": {
+        "dedupStrategy": "none",
+        "enableInfiniteScrolling": false,
+        "enableLogDetails": true,
+        "prettifyLogMessage": false,
+        "showCommonLabels": false,
+        "showLabels": true,
+        "showTime": true,
+        "sortOrder": "Descending",
+        "wrapLogMessage": true
+      },
+      "targets": [
+        {
+          "datasource": {
+            "type": "loki",
+            "uid": "loki"
+          },
+          "editorMode": "code",
+          "expr": "{app=~\"devops-.*\"}",
+          "queryType": "range",
+          "refId": "A"
+        }
+      ],
+      "title": "Recent Logs",
+      "type": "logs"
+    },
+    {
+      "datasource": {
+        "type": "loki",
+        "uid": "loki"
+      },
+      "fieldConfig": {
+        "defaults": {
+          "color": {
+            "mode": "palette-classic"
+          },
+          "custom": {
+            "axisBorderShow": false,
+            "axisCenteredZero": false,
+            "axisColorMode": "text",
+            "axisLabel": "",
+            "axisPlacement": "auto",
+            "barAlignment": 0,
+            "drawStyle": "line",
+            "fillOpacity": 12,
+            "gradientMode": "none",
+            "hideFrom": {
+              "legend": false,
+              "tooltip": false,
+              "viz": false
+            },
+            "lineInterpolation": "linear",
+            "lineWidth": 2,
+            "pointSize": 4,
+            "scaleDistribution": {
+              "type": "linear"
+            },
+            "showPoints": "never",
+            "spanNulls": false,
+            "stacking": {
+              "group": "A",
+              "mode": "none"
+            },
+            "thresholdsStyle": {
+              "mode": "off"
+            }
+          },
+          "unit": "logs/sec"
+        },
+        "overrides": []
+      },
+      "gridPos": {
+        "h": 8,
+        "w": 12,
+        "x": 0,
+        "y": 10
+      },
+      "id": 2,
+      "options": {
+        "legend": {
+          "calcs": [],
+          "displayMode": "list",
+          "placement": "bottom",
+          "showLegend": true
+        },
+        "tooltip": {
+          "mode": "multi",
+          "sort": "desc"
+        }
+      },
+      "targets": [
+        {
+          "datasource": {
+            "type": "loki",
+            "uid": "loki"
+          },
+          "editorMode": "code",
+          "expr": "sum by (app) (rate({app=~\"devops-.*\"}[1m]))",
+          "legendFormat": "{{app}}",
+          "queryType": "range",
+          "refId": "A"
+        }
+      ],
+      "title": "Request Rate by App",
+      "type": "timeseries"
+    },
+    {
+      "datasource": {
+        "type": "loki",
+        "uid": "loki"
+      },
+      "gridPos": {
+        "h": 8,
+        "w": 12,
+        "x": 12,
+        "y": 10
+      },
+      "id": 3,
+      "options": {
+        "dedupStrategy": "none",
+        "enableInfiniteScrolling": false,
+        "enableLogDetails": true,
+        "prettifyLogMessage": false,
+        "showCommonLabels": false,
+        "showLabels": true,
+        "showTime": true,
+        "sortOrder": "Descending",
+        "wrapLogMessage": true
+      },
+      "targets": [
+        {
+          "datasource": {
+            "type": "loki",
+            "uid": "loki"
+          },
+          "editorMode": "code",
+          "expr": "{app=~\"devops-.*\"} | json | level=\"ERROR\"",
+          "queryType": "range",
+          "refId": "A"
+        }
+      ],
+      "title": "Error Logs",
+      "type": "logs"
+    },
+    {
+      "datasource": {
+        "type": "loki",
+        "uid": "loki"
+      },
+      "fieldConfig": {
+        "defaults": {
+          "color": {
+            "mode": "palette-classic"
+          },
+          "custom": {
+            "hideFrom": {
+              "legend": false,
+              "tooltip": false,
+              "viz": false
+            }
+          },
+          "mappings": [],
+          "thresholds": {
+            "mode": "absolute",
+            "steps": [
+              {
+                "color": "green",
+                "value": null
+              }
+            ]
+          }
+        },
+        "overrides": []
+      },
+      "gridPos": {
+        "h": 8,
+        "w": 24,
+        "x": 0,
+        "y": 18
+      },
+      "id": 4,
+      "options": {
+        "displayLabels": [
+          "name",
+          "percent",
+          "value"
+        ],
+        "legend": {
+          "displayMode": "list",
+          "placement": "right",
+          "showLegend": true
+        },
+        "pieType": "pie",
+        "reduceOptions": {
+          "calcs": [
+            "lastNotNull"
+          ],
+          "fields": "",
+          "values": false
+        },
+        "tooltip": {
+          "mode": "single"
+        }
+      },
+      "targets": [
+        {
+          "datasource": {
+            "type": "loki",
+            "uid": "loki"
+          },
+          "editorMode": "code",
+          "expr": "sum by (level) (count_over_time({app=~\"devops-.*\"} | json [5m]))",
+          "legendFormat": "{{level}}",
+          "queryType": "range",
+          "refId": "A"
+        }
+      ],
+      "title": "Log Level Distribution (Last 5m)",
+      "type": "piechart"
+    }
+  ],
+  "refresh": "10s",
+  "schemaVersion": 39,
+  "tags": [
+    "lab07",
+    "loki",
+    "observability"
+  ],
+  "templating": {
+    "list": []
+  },
+  "time": {
+    "from": "now-15m",
+    "to": "now"
+  },
+  "timepicker": {},
+  "timezone": "browser",
+  "title": "Lab 07 - Loki Observability",
+  "uid": "lab07-loki-observability",
+  "version": 1,
+  "weekStart": ""
+}
diff --git a/monitoring/grafana/provisioning/dashboards/dashboard.yml b/monitoring/grafana/provisioning/dashboards/dashboard.yml
new file mode 100644
index 0000000000..65a14e803e
--- /dev/null
+++ b/monitoring/grafana/provisioning/dashboards/dashboard.yml
@@ -0,0 +1,12 @@
+apiVersion: 1
+
+providers:
+  - name: lab07-dashboards
+    orgId: 1
+    folder: Lab 07
+    type: file
+    disableDeletion: false
+    editable: true
+    updateIntervalSeconds: 30
+    options:
+      path: /var/lib/grafana/dashboards
diff --git a/monitoring/grafana/provisioning/datasources/loki.yml b/monitoring/grafana/provisioning/datasources/loki.yml
new file mode 100644
index 0000000000..34782cbc5b
--- /dev/null
+++ b/monitoring/grafana/provisioning/datasources/loki.yml
@@ -0,0 +1,13 @@
+apiVersion: 1
+
+datasources:
+  - name: Loki
+    uid: loki
+    type: loki
+    access: proxy
+    url: http://loki:3100
+    isDefault: true
+    editable: true
+    jsonData:
+      timeout: 60
+      maxLines: 1000
diff --git a/monitoring/loki/config.yml b/monitoring/loki/config.yml
new file mode 100644
index 0000000000..a97c3d13ee
--- /dev/null
+++ b/monitoring/loki/config.yml
@@ -0,0 +1,44 @@
+auth_enabled: false
+
+server:
+  http_listen_port: 3100
+
+common:
+  instance_addr: 127.0.0.1
+  path_prefix: /loki
+  replication_factor: 1
+  ring:
+    kvstore:
+      store: inmemory
+
+schema_config:
+  configs:
+    - from: 2024-01-01
+      store: tsdb
+      object_store: filesystem
+      schema: v13
+      index:
+        prefix: index_
+        period: 24h
+
+storage_config:
+  filesystem:
+    directory: /loki/chunks
+  tsdb_shipper:
+    active_index_directory: /loki/tsdb-index
+    cache_location: /loki/tsdb-cache
+
+limits_config:
+  reject_old_samples: true
+  reject_old_samples_max_age: 168h
+  retention_period: 168h
+
+compactor:
+  working_directory: /loki/compactor
+  compaction_interval: 10m
+  retention_enabled: true
+  retention_delete_delay: 2h
+  delete_request_store: filesystem
+
+analytics:
+  reporting_enabled: false
diff --git a/monitoring/promtail/config.yml b/monitoring/promtail/config.yml
new file mode 100644
index 0000000000..6f414f0ccc
--- /dev/null
+++ b/monitoring/promtail/config.yml
@@ -0,0 +1,30 @@
+server:
+  http_listen_port: 9080
+  grpc_listen_port: 0
+
+positions:
+  filename: /tmp/positions/positions.yml
+
+clients:
+  - url: http://loki:3100/loki/api/v1/push
+
+scrape_configs:
+  - job_name: docker
+    docker_sd_configs:
+      - host: unix:///var/run/docker.sock
+        refresh_interval: 5s
+        filters:
+          - name: label
+            values: ["logging=promtail"]
+    pipeline_stages:
+      - docker: {}
+    relabel_configs:
+      - source_labels: ["__meta_docker_container_name"]
+        regex: "/(.*)"
+        target_label: "container"
+      - source_labels: ["__meta_docker_container_label_app"]
+        target_label: "app"
+      - source_labels: ["__meta_docker_container_label_com_docker_compose_service"]
+        target_label: "compose_service"
+      - target_label: "job"
+        replacement: "docker"