diff --git a/README.md b/README.md
index 06adfba..10973ac 100644
--- a/README.md
+++ b/README.md
@@ -47,6 +47,7 @@ Visit the Github: [![FastAPI MCP LangGraph Template](https://img.shields.io/gith
 - [![FastAPI](https://img.shields.io/github/stars/fastapi/fastapi?logo=fastapi&label=fastapi)](https://github.com/fastapi/fastapi) for Python backend API
 - [![SQLModel](https://img.shields.io/github/stars/fastapi/sqlmodel?logo=sqlmodel&label=SQLModel)](https://github.com/fastapi/sqlmodel) for Python SQL database interactions (ORM + Validation).
   - Wrapper of [![SQLAlchemy](https://img.shields.io/github/stars/sqlalchemy/sqlalchemy?logo=sqlalchemy&label=SQLAlchemy)](https://github.com/sqlalchemy/sqlalchemy)
+- [![LangFuse](https://img.shields.io/github/stars/langfuse/langfuse?logo=langfuse&label=LangFuse)](https://github.com/langfuse/langfuse) for LLM Observability and LLM Metrics
 - [![Pydantic](https://img.shields.io/github/stars/pydantic/pydantic?logo=pydantic&label=Pydantic)](https://github.com/pydantic/pydantic) for Data Validation and Settings Management.
 - [![Supabase](https://img.shields.io/github/stars/supabase/supabase?logo=supabase&label=Supabase)](https://github.com/supabase/supabase) for DB RBAC
   - [![PostgreSQL](https://img.shields.io/github/stars/postgres/postgres?logo=postgresql&label=Postgres)](https://github.com/postgres/postgres) Relational DB
@@ -56,7 +57,6 @@ Visit the Github: [![FastAPI MCP LangGraph Template](https://img.shields.io/gith
 
 ### Planned Features
 
-- [![LangFuse](https://img.shields.io/github/stars/langfuse/langfuse?logo=langfuse&label=LangFuse)](https://github.com/langfuse/langfuse) for LLM Observability and LLM Metrics
 - [![Prometheus](https://img.shields.io/github/stars/prometheus/prometheus?logo=prometheus&label=Prometheus)](https://github.com/prometheus/prometheus) for scraping Metrics
 - [![Grafana](https://img.shields.io/github/stars/prometheus/prometheus?logo=grafana&label=Grafana)](https://github.com/grafana/grafana) for visualizing Metrics
 - [![Auth0](https://img.shields.io/badge/Auth0-white?logo=auth0)](https://auth0.com/docs) SaaS for Authentication and Authorization with OIDC & JWT via OAuth 2.0
@@ -199,6 +199,13 @@ Add your following API keys and value to the respective file: `./envs/backend.en
 ```bash
 OPENAI_API_KEY=sk-proj-...
 POSTGRES_DSN=postgresql://postgres...
+
+LANGFUSE_PUBLIC_KEY=pk-lf-...
+LANGFUSE_SECRET_KEY=sk-lf-...
+LANGFUSE_HOST=https://cloud.langfuse.com
+
+ENVIRONMENT=production
+
 YOUTUBE_API_KEY=...
 ```
 
diff --git a/backend/api/core/agent/orchestration.py b/backend/api/core/agent/orchestration.py
index 84a9b5a..dedd7b4 100644
--- a/backend/api/core/agent/orchestration.py
+++ b/backend/api/core/agent/orchestration.py
@@ -10,6 +10,7 @@
 from langgraph.prebuilt import ToolNode, tools_condition
 
 from api.core.agent.prompts import SYSTEM_PROMPT
+from api.core.dependencies import LangfuseHandlerDep
 
 
 class State(MessagesState):
@@ -70,7 +71,8 @@ def get_graph(
     return graph_factory(worker_node, tools, checkpointer, name)
 
 
-def get_config():
+def get_config(langfuse_handler: LangfuseHandlerDep):
     return dict(
         configurable=dict(thread_id="1"),
+        callbacks=[langfuse_handler],
     )
diff --git a/backend/api/core/config.py b/backend/api/core/config.py
index 2ba0ca3..ef07752 100644
--- a/backend/api/core/config.py
+++ b/backend/api/core/config.py
@@ -33,5 +33,11 @@ def checkpoint_conn_str(self) -> str:
         # with specifying psycopg driver explicitly
         return self.postgres_dsn.encoded_string()
 
+    langfuse_public_key: str = ""
+    langfuse_secret_key: str = ""
+    langfuse_host: str = "https://cloud.langfuse.com"
+
+    environment: str = "development"
+
 
 settings = Settings()
diff --git a/backend/api/core/dependencies.py b/backend/api/core/dependencies.py
index 20218e7..eddaecc 100644
--- a/backend/api/core/dependencies.py
+++ b/backend/api/core/dependencies.py
@@ -4,6 +4,7 @@
 from fastapi import Depends
 from langchain_mcp_adapters.tools import load_mcp_tools
 from langchain_openai import ChatOpenAI
+from langfuse.callback import CallbackHandler
 from sqlalchemy.ext.asyncio import AsyncEngine, create_async_engine
 
 from api.core.agent.persistence import checkpointer_context
@@ -47,3 +48,17 @@ async def setup_graph() -> AsyncGenerator[Resource]:
                 tools=tools,
                 session=session,
             )
+
+
+def get_langfuse_handler() -> CallbackHandler:
+
+    return CallbackHandler(
+        public_key=settings.langfuse_public_key,
+        secret_key=settings.langfuse_secret_key,
+        host=settings.langfuse_host,
+        session_id=settings.environment,
+        environment=settings.environment,
+    )
+
+
+LangfuseHandlerDep = Annotated[CallbackHandler, Depends(get_langfuse_handler)]
diff --git a/backend/api/routers/llms.py b/backend/api/routers/llms.py
index b7035a8..ffba42c 100644
--- a/backend/api/routers/llms.py
+++ b/backend/api/routers/llms.py
@@ -8,7 +8,7 @@
 from starlette.responses import Response
 
 from api.core.agent.orchestration import get_config, get_graph
-from api.core.dependencies import LLMDep, setup_graph
+from api.core.dependencies import LangfuseHandlerDep, LLMDep, setup_graph
 from api.core.logs import print, uvicorn
 
 router = APIRouter(tags=["chat"])
@@ -26,13 +26,17 @@ async def completions(query: str, llm: LLMDep) -> Response:
 
 
 @router.get("/chat/agent")
-async def agent(query: str, llm: LLMDep) -> Response:
+async def agent(
+    query: str,
+    llm: LLMDep,
+    langfuse_handler: LangfuseHandlerDep,
+) -> Response:
     """Stream LangGraph completions as Server-Sent Events (SSE).
 
     This endpoint streams LangGraph-generated events in real-time, allowing the client
     to receive responses as they are processed, useful for agent-based workflows.
     """
-    return EventSourceResponse(stream_graph(query, llm))
+    return EventSourceResponse(stream_graph(query, llm, langfuse_handler))
 
 
 async def stream_completions(
@@ -57,17 +61,23 @@ async def checkpointer_setup(pool):
 async def stream_graph(
     query: str,
     llm: LLMDep,
+    langfuse_handler: LangfuseHandlerDep,
 ) -> AsyncGenerator[dict[str, str], None]:
     async with setup_graph() as resource:
         graph = get_graph(
             llm,
             tools=resource.tools,
             checkpointer=resource.checkpointer,
+            name="math_agent",
         )
-        config = get_config()
+        config = get_config(langfuse_handler)
         events = dict(messages=[HumanMessage(content=query)])
 
-        async for event in graph.astream_events(events, config, version="v2"):
-            if event.get("event").endswith("end"):
-                print(event)
+        async for event in graph.astream_events(
+            events,
+            config,
+            version="v2",
+            stream_mode="updates",
+        ):
             yield dict(data=event)
+        print(event)
diff --git a/docs/langfuse.md b/docs/langfuse.md
index 9b42905..6280766 100644
--- a/docs/langfuse.md
+++ b/docs/langfuse.md
@@ -5,3 +5,41 @@
 Learn more [here](https://langfuse.com/)
 
 [![LangFuse](https://img.shields.io/github/stars/langfuse/langfuse?logo=langfuse&label=LangFuse)](https://github.com/langfuse/langfuse)
+
+Below is an outline of the steps involved in a simple Math Agent. Key elements illustrated include:
+
+- A visual breakdown of each step—e.g., when the agent invokes a tool and when control returns to the agent
+- Inputs and outputs at each stage of the process:
+  - **User to Agent**: The user asks a natural language question — e.g., `What is 1 + 1?`
+  - **Agent to Tool**: The agent decides to call a calculator tool with structured arguments — e.g., `args: { a: 1, b: 1 }`.
+  - **Tool to Agent**: The tool executes the operation and returns the result — e.g., `2`.
+  - **Agent to User**: The agent responds with the final answer in natural language — e.g., `1 + 1 = 2`.
+- The full chat history throughout the interaction
+- Latency and cost associated with each node
+
+### Step 1: Math Agent (User to Agent → Agent to Tool)
+
+This section shows:
+
+- **User to Agent**: The user asks a natural language question — e.g., `What is 1 + 1?`
+- **Agent to Tool**: The agent decides to call a calculator tool with structured arguments — e.g., `args: { a: 1, b: 1 }`.
+- **Full Chat History Throughout the Interaction**: You can inspect earlier user-agent messages. For instance:
+
+```text
+User: reply only no
+Agent: No.
+```
+
+In this example, the agent responded directly without calling any tools.
+
+### Step 2: Tool Call (Tool to Agent)
+
+This section shows:
+
+  - **Tool to Agent**: The tool executes the operation and returns the result — e.g., `2`.
+
+### Step 3: Math Agent (Agent to User)
+
+This section shows:
+
+  - **Agent to User**: The agent responds with the final answer in natural language — e.g., `1 + 1 = 2`.
diff --git a/envs/backend.env b/envs/backend.env
index 4fa624a..c6edf59 100644
--- a/envs/backend.env
+++ b/envs/backend.env
@@ -1,3 +1,9 @@
 OPENAI_API_KEY=
 # do not specify driver (do not specify `+psycopg`)
 POSTGRES_DSN=
+
+LANGFUSE_PUBLIC_KEY=pk-lf-
+LANGFUSE_SECRET_KEY=sk-lf-
+LANGFUSE_HOST=https://cloud.langfuse.com
+
+ENVIRONMENT=production
diff --git a/nginx/nginx.conf b/nginx/nginx.conf
index a75d671..1dfb4e9 100644
--- a/nginx/nginx.conf
+++ b/nginx/nginx.conf
@@ -23,6 +23,9 @@ server {
         proxy_set_header Upgrade $http_upgrade;
         proxy_set_header Host $host;
 
+        proxy_read_timeout 600;
+        proxy_send_timeout 600;
+
         proxy_buffering off;
         proxy_redirect off;
         proxy_pass http://api/;