diff --git a/docs/monitoring.md b/docs/monitoring.md
new file mode 100644
index 0000000..f94913f
--- /dev/null
+++ b/docs/monitoring.md
@@ -0,0 +1,323 @@
+# Monitoring an Arc Node
+
+This guide describes a simple monitoring setup for operators running one Arc
+Execution Layer (EL) and one Arc Consensus Layer (CL) on the same Linux host.
+
+It uses:
+
+- **Prometheus** for metrics collection;
+- **Grafana** for dashboards;
+- **SSH port forwarding** for safe access to local-only monitoring endpoints.
+
+This guide assumes you already have a working Arc node by following
+[installation](./installation.md) and
+[running an Arc node](./running-an-arc-node.md).
+
+## Prerequisites
+
+Before setting up monitoring, confirm that:
+
+- your Arc node is already running;
+- the execution layer is exposing metrics on `127.0.0.1:9001`;
+- the consensus layer is exposing metrics on `127.0.0.1:29000`;
+- Docker Engine and Docker Compose are installed on the host.
+
+The examples in this guide assume the following metrics flags are present:
+
+### Execution layer
+
+```sh
+--metrics 127.0.0.1:9001
+```
+
+### Consensus layer
+
+```sh
+--metrics 127.0.0.1:29000
+```
+
+## Verify metrics endpoints
+
+Before deploying Prometheus and Grafana, verify that both metrics endpoints are
+reachable on the host.
+
+The execution layer exposes metrics at `/`:
+
+```sh
+curl -s http://127.0.0.1:9001 | head
+```
+
+The consensus layer exposes metrics at `/metrics`:
+
+```sh
+curl -s http://127.0.0.1:29000/metrics | head
+```
+
+If either command fails, first fix the Arc node startup or metrics flags before
+continuing.
+
+## Create a monitoring directory
+
+This guide stores monitoring files under `$ARC_HOME/monitoring`.
+
+```sh
+ARC_HOME="${ARC_HOME:-$HOME/.arc}"
+ARC_MONITORING="${ARC_MONITORING:-$ARC_HOME/monitoring}"
+
+mkdir -p "$ARC_MONITORING"/grafana-provisioning/datasources
+mkdir -p "$ARC_MONITORING"/grafana-provisioning/dashboards
+mkdir -p "$ARC_MONITORING"/prometheus-data
+mkdir -p "$ARC_MONITORING"/dashboards
+```
+
+## Reuse the existing Arc dashboards
+
+The repository already contains Grafana dashboard JSON files under
+`deployments/monitoring/config-grafana/provisioning/dashboards-data`.
+
+From the `arc-node` repository root, copy them into the monitoring directory:
+
+```sh
+cp -r deployments/monitoring/config-grafana/provisioning/dashboards-data/* \
+  "$ARC_MONITORING"/dashboards/
+```
+
+## Create the Prometheus configuration
+
+Write the following file to `$ARC_MONITORING/prometheus.yml`:
+
+```yaml
+global:
+  scrape_interval: 1s
+
+scrape_configs:
+  - job_name: "arc_execution"
+    metrics_path: "/"
+    scrape_interval: 1s
+    static_configs:
+      - targets: ["127.0.0.1:9001"]
+        labels:
+          client_name: "reth"
+          client_type: "execution"
+
+  - job_name: "arc_consensus"
+    metrics_path: "/metrics"
+    scrape_interval: 1s
+    static_configs:
+      - targets: ["127.0.0.1:29000"]
+        labels:
+          client_name: "malachite"
+          client_type: "consensus"
+```
+
+## Create the Grafana datasource configuration
+
+Write the following file to
+`$ARC_MONITORING/grafana-provisioning/datasources/prometheus.yml`:
+
+```yaml
+apiVersion: 1
+
+datasources:
+  - name: prometheus
+    uid: prometheus
+    type: prometheus
+    url: http://127.0.0.1:9090
+    isDefault: true
+    editable: true
+```
+
+## Create the Grafana dashboards provisioning file
+
+Write the following file to
+`$ARC_MONITORING/grafana-provisioning/dashboards/default.yml`:
+
+```yaml
+apiVersion: 1
+
+providers:
+  - name: "arc"
+    orgId: 1
+    folder: ""
+    type: file
+    disableDeletion: false
+    editable: true
+    updateIntervalSeconds: 10
+    options:
+      path: /var/lib/grafana/dashboards
+```
+
+## Create the Docker Compose file
+
+Write the following file to `$ARC_MONITORING/compose.yaml`:
+
+```yaml
+services:
+  prometheus:
+    image: prom/prometheus
+    user: "0"
+    network_mode: host
+    command:
+      - --config.file=/etc/prometheus/prometheus.yml
+      - --storage.tsdb.path=/prometheus
+      - --web.listen-address=127.0.0.1:9090
+    volumes:
+      - ./prometheus.yml:/etc/prometheus/prometheus.yml:ro
+      - ./prometheus-data:/prometheus
+    restart: unless-stopped
+
+  grafana:
+    image: grafana/grafana-oss
+    network_mode: host
+    environment:
+      GF_SERVER_HTTP_ADDR: 127.0.0.1
+      GF_SERVER_HTTP_PORT: 3000
+      GF_SECURITY_ADMIN_USER: admin
+      GF_SECURITY_ADMIN_PASSWORD: admin
+    volumes:
+      - ./grafana-provisioning:/etc/grafana/provisioning:ro
+      - ./dashboards:/var/lib/grafana/dashboards:ro
+    restart: unless-stopped
+```
+
+> **Why `network_mode: host`?** The Arc metrics endpoints in this guide are bound
+> to `127.0.0.1`, so host networking is the simplest way for Prometheus to scrape
+> them without changing the Arc node configuration or exposing metrics publicly.
+
+## Start the monitoring stack
+
+```sh
+cd "$ARC_MONITORING"
+docker compose up -d
+```
+
+Check that both containers are running:
+
+```sh
+docker compose ps
+```
+
+## Verify Prometheus and Grafana
+
+Check that Grafana is healthy:
+
+```sh
+curl -s http://127.0.0.1:3000/api/health
+```
+
+Check that Prometheus is ready:
+
+```sh
+curl -s http://127.0.0.1:9090/-/ready
+```
+
+You can also inspect Prometheus targets in the browser later at:
+
+- `http://localhost:9090/targets`
+
+## Access the dashboards
+
+This setup binds Grafana and Prometheus to `127.0.0.1` only.
+That is intentional: the services are not exposed to the public internet.
+
+If you are on the same machine, open:
+
+- `http://127.0.0.1:3000` for Grafana;
+- `http://127.0.0.1:9090` for Prometheus.
+
+If you are connecting to a remote server, use SSH port forwarding from your
+local machine:
+
+```sh
+ssh -N \
+  -L 3000:127.0.0.1:3000 \
+  -L 9090:127.0.0.1:9090 \
+  user@YOUR_SERVER_IP
+```
+
+Then open on your local machine:
+
+- `http://localhost:3000`
+- `http://localhost:9090`
+
+Grafana default credentials from the Compose file above are:
+
+- username: `admin`
+- password: `admin`
+
+Change them before exposing Grafana through any reverse proxy or shared access setup.
+
+## What to expect
+
+Once Prometheus starts scraping both endpoints and Grafana loads the provisioned
+dashboards, you should see metrics for:
+
+- execution layer activity;
+- consensus layer activity;
+- block height;
+- validator-related consensus telemetry;
+- connected peers and chain progress.
+
+If some panels show no data immediately after startup, wait a minute and refresh.
+A newly started Prometheus instance needs a short time to collect enough samples.
+
+## Troubleshooting
+
+### Browser shows `ERR_CONNECTION_REFUSED`
+
+If you are using a remote server, make sure you are opening:
+
+- `http://localhost:3000`
+- `http://localhost:9090`
+
+on your **local machine**, not `http://YOUR_SERVER_IP:3000`.
+
+Also confirm that the SSH tunnel is still running.
+
+### Prometheus is restarting with a permissions error
+
+If Prometheus logs include an error about `queries.active` or write permission
+under `/prometheus`, fix the ownership of the local data directory:
+
+```sh
+sudo chown -R 65534:65534 "$ARC_MONITORING"/prometheus-data
+docker compose restart prometheus
+```
+
+### Grafana is healthy but dashboards show no data
+
+First, confirm Prometheus targets are up:
+
+```sh
+curl -s http://127.0.0.1:9090/api/v1/targets
+```
+
+Then re-check the Arc metrics endpoints:
+
+```sh
+curl -s http://127.0.0.1:9001 | head
+curl -s http://127.0.0.1:29000/metrics | head
+```
+
+If Prometheus can reach the targets but some dashboard panels are still empty,
+wait for more samples to accumulate and refresh the dashboard.
+
+### Check Arc node health directly
+
+You can still verify the Arc node independently of Grafana:
+
+```sh
+cast block-number --rpc-url http://127.0.0.1:8545
+sudo journalctl -u arc-execution -f
+sudo journalctl -u arc-consensus -f
+```
+
+## Next steps
+
+This guide keeps monitoring intentionally minimal and local-only.
+For more advanced deployments, operators may want to add:
+
+- persistent Grafana storage;
+- HTTPS and authentication through a reverse proxy;
+- Alertmanager-based alerting;
+- system metrics exporters such as `node_exporter`.
diff --git a/docs/running-an-arc-node.md b/docs/running-an-arc-node.md
index cb8b7c0..6fe28a7 100644
--- a/docs/running-an-arc-node.md
+++ b/docs/running-an-arc-node.md
@@ -393,6 +393,8 @@ sudo systemctl start arc-execution arc-consensus
 
 ### Monitoring
 
+For a Prometheus + Grafana setup on a single host, see [Monitoring an Arc Node](./monitoring.md).
+
 ```sh
 # Check service status
 sudo systemctl status arc-execution