diff --git a/apps/api-service/src/middleware/promptEnhancement.ts b/apps/api-service/src/middleware/promptEnhancement.ts
index 57895b2..793b190 100644
--- a/apps/api-service/src/middleware/promptEnhancement.ts
+++ b/apps/api-service/src/middleware/promptEnhancement.ts
@@ -50,12 +50,21 @@ export const autoEnhancePrompt = async (
       promptEnhancementService = new PromptEnhancementService(apiKey);
     }
 
+    // Extract orgId and projectId from validated API key
+    const orgId = req.apiKey?.organizationSlug || "unknown";
+    const projectId = req.apiKey?.projectSlug || "unknown";
+
     const result = await promptEnhancementService.enhancePrompt(
       prompt,
       {
         ...enhancementOptions,
         ...(req.body.meta?.tags && { tags: req.body.meta.tags }),
       },
+      {
+        orgId,
+        projectId,
+        ...(req.body.meta && { meta: req.body.meta }),
+      },
     );
 
     if (result.success && result.enhancedPrompt) {
diff --git a/apps/api-service/src/routes/enhance.ts b/apps/api-service/src/routes/enhance.ts
index a55c89e..fc3c94a 100644
--- a/apps/api-service/src/routes/enhance.ts
+++ b/apps/api-service/src/routes/enhance.ts
@@ -133,9 +133,17 @@ enhanceRouter.post(
     console.log(`[${timestamp}] [${requestId}] Starting prompt enhancement`);
 
     try {
+      // Extract orgId and projectId from validated API key
+      const orgId = req.apiKey?.organizationSlug || "unknown";
+      const projectId = req.apiKey?.projectSlug || "unknown";
+
       const result = await promptEnhancementService.enhancePrompt(
         prompt,
         options || {},
+        {
+          orgId,
+          projectId,
+        },
       );
 
       console.log(`[${timestamp}] [${requestId}] Enhancement completed:`, {
diff --git a/apps/api-service/src/services/EnhancementLogger.ts b/apps/api-service/src/services/EnhancementLogger.ts
new file mode 100644
index 0000000..c323fb1
--- /dev/null
+++ b/apps/api-service/src/services/EnhancementLogger.ts
@@ -0,0 +1,136 @@
+import { writeFileSync, readFileSync, existsSync, mkdirSync } from "fs";
+import { dirname } from "path";
+
+export interface EnhancementLogEntry {
+  timestamp: string;
+  orgId: string;
+  projectId: string;
+  originalPrompt: string;
+  enhancedPrompt: string;
+  meta?: {
+    tags?: string[];
+  };
+  template: string;
+  detectedLanguage?: string;
+  enhancements: string[];
+  model: string;
+}
+
+export class EnhancementLogger {
+  private static instance: EnhancementLogger | null = null;
+  private logFilePath: string | null = null;
+  private isEnabled: boolean = false;
+
+  private constructor() {
+    const enhLogPath = process.env["ENH_LOG"];
+
+    if (enhLogPath) {
+      this.logFilePath = enhLogPath;
+      this.isEnabled = true;
+      this.initializeLogFile();
+    }
+  }
+
+  static getInstance(): EnhancementLogger {
+    if (!EnhancementLogger.instance) {
+      EnhancementLogger.instance = new EnhancementLogger();
+    }
+    return EnhancementLogger.instance;
+  }
+
+  private initializeLogFile(): void {
+    if (!this.logFilePath) return;
+
+    try {
+      // Ensure directory exists
+      const dir = dirname(this.logFilePath);
+      if (!existsSync(dir)) {
+        mkdirSync(dir, { recursive: true });
+      }
+
+      // Reset/clear the log file on service start
+      writeFileSync(this.logFilePath, "# Prompt Enhancement Log\n\n", {
+        encoding: "utf-8",
+      });
+
+      console.log(
+        `[EnhancementLogger] Log file initialized: ${this.logFilePath}`,
+      );
+    } catch (error) {
+      console.error(
+        `[EnhancementLogger] Failed to initialize log file:`,
+        error,
+      );
+      this.isEnabled = false;
+    }
+  }
+
+  log(entry: EnhancementLogEntry): void {
+    if (!this.isEnabled || !this.logFilePath) {
+      return;
+    }
+
+    try {
+      const newLogEntry = this.formatLogEntry(entry);
+
+      // Read existing content
+      const existingContent = existsSync(this.logFilePath)
+        ? readFileSync(this.logFilePath, "utf-8")
+        : "# Prompt Enhancement Log\n\n";
+
+      // Insert new entry AFTER header but BEFORE old entries
+      const headerEnd = existingContent.indexOf("\n\n") + 2;
+      const header = existingContent.slice(0, headerEnd);
+      const oldEntries = existingContent.slice(headerEnd);
+
+      writeFileSync(
+        this.logFilePath,
+        header + newLogEntry + oldEntries,
+        "utf-8",
+      );
+    } catch (error) {
+      console.error(`[EnhancementLogger] Failed to write log entry:`, error);
+    }
+  }
+
+  private formatLogEntry(entry: EnhancementLogEntry): string {
+    const {
+      timestamp,
+      orgId,
+      projectId,
+      originalPrompt,
+      enhancedPrompt,
+      meta,
+      template,
+      detectedLanguage,
+      enhancements,
+      model,
+    } = entry;
+
+    // Format date from ISO timestamp
+    const date = new Date(timestamp);
+    const formattedDate = date.toISOString().replace("T", " ").slice(0, 19);
+
+    let logText = `## ${formattedDate}\n`;
+    logText += `${orgId}/${projectId}\n\n`;
+    logText += `**Original Prompt:** ${originalPrompt}\n\n`;
+    logText += `**Enhanced Prompt:** ${enhancedPrompt}\n\n`;
+
+    // Add tags if present
+    if (meta?.tags && meta.tags.length > 0) {
+      logText += `**Tags:** ${meta.tags.join(", ")}\n\n`;
+    }
+
+    logText += `**Template:** ${template}\n`;
+    if (detectedLanguage) {
+      logText += `**Language:** ${detectedLanguage}\n`;
+    }
+    if (enhancements.length > 0) {
+      logText += `**Enhancements:** ${enhancements.join(", ")}\n`;
+    }
+    logText += `**Model:** ${model}\n\n`;
+    logText += `---\n\n`;
+
+    return logText;
+  }
+}
diff --git a/apps/api-service/src/services/PromptEnhancementService.ts b/apps/api-service/src/services/PromptEnhancementService.ts
index b2b3703..6aa1966 100644
--- a/apps/api-service/src/services/PromptEnhancementService.ts
+++ b/apps/api-service/src/services/PromptEnhancementService.ts
@@ -1,4 +1,5 @@
 import { GoogleGenAI } from "@google/genai";
+import { EnhancementLogger, EnhancementLogEntry } from "./EnhancementLogger";
 
 export interface PromptEnhancementOptions {
   template?:
@@ -12,6 +13,14 @@ export interface PromptEnhancementOptions {
   tags?: string[]; // Optional tags - accepted but not used yet
 }
 
+export interface PromptEnhancementContext {
+  orgId: string;
+  projectId: string;
+  meta?: {
+    tags?: string[];
+  };
+}
+
 export interface PromptEnhancementResult {
   success: boolean;
   originalPrompt: string;
@@ -40,6 +49,7 @@ export class PromptEnhancementService {
   async enhancePrompt(
     rawPrompt: string,
     options: PromptEnhancementOptions = {},
+    context?: PromptEnhancementContext,
   ): Promise<PromptEnhancementResult> {
     const timestamp = new Date().toISOString();
 
@@ -105,6 +115,27 @@ export class PromptEnhancementService {
             enhancements: result.enhancements,
           },
         };
+
+        // Log the enhancement if context is provided
+        if (context) {
+          const logEntry: EnhancementLogEntry = {
+            timestamp,
+            orgId: context.orgId,
+            projectId: context.projectId,
+            originalPrompt: rawPrompt,
+            enhancedPrompt: result.enhancedPrompt,
+            ...(context.meta && { meta: context.meta }),
+            template: finalOptions.template,
+            ...(result.detectedLanguage && {
+              detectedLanguage: result.detectedLanguage,
+            }),
+            enhancements: result.enhancements,
+            model: this.model,
+          };
+
+          EnhancementLogger.getInstance().log(logEntry);
+        }
+
         return enhancementResult;
       }