diff --git a/skyrl-train/skyrl_train/entrypoints/main_base.py b/skyrl-train/skyrl_train/entrypoints/main_base.py
index fa6bc7000..46d1717e9 100644
--- a/skyrl-train/skyrl_train/entrypoints/main_base.py
+++ b/skyrl-train/skyrl_train/entrypoints/main_base.py
@@ -316,6 +316,11 @@ def run(self):
 
 @ray.remote(num_cpus=1)
 def skyrl_entrypoint(cfg: DictConfig):
+    from skyrl_train.utils.logging import setup_logging
+
+    # Set up logging with run name for log file organization
+    setup_logging(run_name=cfg.trainer.run_name)
+
     # make sure that the training loop is not run on the head node.
     exp = BasePPOExp(cfg)
     exp.run()
@@ -323,6 +328,11 @@ def skyrl_entrypoint(cfg: DictConfig):
 
 @hydra.main(config_path=config_dir, config_name="ppo_base_config", version_base=None)
 def main(cfg: DictConfig) -> None:
+    from skyrl_train.utils.logging import setup_logging
+
+    # Set up logging early to capture all logs
+    setup_logging(run_name=cfg.trainer.run_name)
+
     # validate the arguments
     validate_cfg(cfg)
 
diff --git a/skyrl-train/skyrl_train/env_vars.py b/skyrl-train/skyrl_train/env_vars.py
index 0fe18e357..3e5dca507 100644
--- a/skyrl-train/skyrl_train/env_vars.py
+++ b/skyrl-train/skyrl_train/env_vars.py
@@ -65,3 +65,25 @@
 
 See https://github.com/ray-project/ray/issues/56697 for details on why this is needed.
 """
+
+# ─────────────────────────────────────────────────────────────────────────────
+# Logging
+# ─────────────────────────────────────────────────────────────────────────────
+
+SKYRL_LOG_LEVEL = os.environ.get("SKYRL_LOG_LEVEL", "INFO").upper()
+"""
+Log level for SkyRL (default: INFO). Controls log filtering and Ray verbosity.
+
+- Application logs: Filters loguru output (DEBUG, INFO, WARNING, ERROR, CRITICAL)
+- Ray verbosity: DEBUG enables verbose Ray logging (worker/raylet logs to stdout);
+  INFO or higher suppresses Ray infrastructure logs
+"""
+
+SKYRL_LOG_DIR = os.environ.get("SKYRL_LOG_DIR", "/tmp/skyrl-logs")
+"""
+Directory for SkyRL log files (default: /tmp/skyrl-logs).
+
+All logs (infra + training) are written to {SKYRL_LOG_DIR}/{run_name}/logs.log.
+By default, only training progress logs go to stdout. Set SKYRL_LOG_LEVEL=DEBUG
+to also show infrastructure logs on stdout.
+"""
diff --git a/skyrl-train/skyrl_train/utils/logging.py b/skyrl-train/skyrl_train/utils/logging.py
new file mode 100644
index 000000000..3cb0c40af
--- /dev/null
+++ b/skyrl-train/skyrl_train/utils/logging.py
@@ -0,0 +1,227 @@
+"""
+Logging configuration for SkyRL.
+
+This module provides logging setup that separates training progress from infrastructure logs:
+- All logs go to a file in SKYRL_LOG_DIR
+- Only training progress logs go to stdout by default
+- Set SKYRL_LOG_LEVEL=DEBUG to show all logs on stdout
+"""
+
+import logging
+import os
+import sys
+from pathlib import Path
+from typing import Optional
+
+from loguru import logger
+
+from skyrl_train.env_vars import SKYRL_LOG_DIR, SKYRL_LOG_LEVEL
+
+# Logger names that are considered "training progress" and should go to stdout
+# All other loggers are considered "infrastructure" and only go to the log file
+TRAINING_PROGRESS_LOGGERS = frozenset(
+    {
+        "skyrl_train.trainer",
+        "skyrl_train.fully_async_trainer",
+        "skyrl_train.utils.tracking",
+        "skyrl_train.evaluate",
+    }
+)
+
+# Logger name prefixes to suppress from stdout (infrastructure loggers)
+INFRA_LOGGER_PREFIXES = (
+    "vllm",
+    "ray",
+    "transformers",
+    "torch",
+    "httpx",
+    "httpcore",
+    "urllib3",
+    "asyncio",
+    "skyrl_train.workers",
+    "skyrl_train.inference_engines",
+    "skyrl_train.distributed",
+    "skyrl_train.model_wrapper",
+    "skyrl_train.utils.utils",
+    "skyrl_train.utils.ppo_utils",
+    "skyrl_train.dataset",
+    "skyrl_train.generators",
+)
+
+
+class TrainingProgressFilter(logging.Filter):
+    """Filter that only allows training progress logs through."""
+
+    def filter(self, record: logging.LogRecord) -> bool:
+        # Allow if it's a training progress logger
+        if record.name in TRAINING_PROGRESS_LOGGERS:
+            return True
+
+        # Allow if it starts with a training progress logger prefix
+        for prefix in TRAINING_PROGRESS_LOGGERS:
+            if record.name.startswith(prefix + "."):
+                return True
+
+        # Block if it's an infrastructure logger
+        for prefix in INFRA_LOGGER_PREFIXES:
+            if record.name.startswith(prefix):
+                return False
+
+        # Allow other loggers (e.g., root logger, unknown loggers)
+        return True
+
+
+def setup_logging(run_name: Optional[str] = None) -> Path:
+    """
+    Set up SkyRL logging with file and console handlers.
+
+    All logs go to the log file. Only training progress logs go to stdout
+    unless SKYRL_LOG_LEVEL=DEBUG, in which case all logs go to stdout.
+
+    Args:
+        run_name: Name of the training run for organizing logs. If None,
+                  logs go directly to SKYRL_LOG_DIR.
+
+    Returns:
+        Path to the log directory.
+    """
+    # Create log directory
+    log_dir = Path(SKYRL_LOG_DIR)
+    if run_name:
+        log_dir = log_dir / run_name
+    log_dir.mkdir(parents=True, exist_ok=True)
+
+    log_file = log_dir / "logs.log"
+
+    # Determine if we should show all logs on stdout
+    verbose = SKYRL_LOG_LEVEL == "DEBUG"
+
+    # Configure loguru for file output (all logs)
+    logger.remove()
+
+    # File handler - all logs with colors
+    logger.add(
+        str(log_file),
+        colorize=True,
+        level="DEBUG",  # Capture all levels in file
+        enqueue=True,
+        backtrace=False,
+        diagnose=False,
+        format="<green>{time:YYYY-MM-DD HH:mm:ss.SSS}</green> | "
+        "<level>{level: <8}</level> | "
+        "<cyan>{name}</cyan>:<cyan>{function}</cyan>:<cyan>{line}</cyan> - "
+        "<level>{message}</level>",
+    )
+
+    # Console handler - filtered or all based on log level
+    def console_filter(record):
+        """Filter for console output - only training progress unless DEBUG."""
+        if verbose:
+            return True
+        name = record["name"]
+        # Check if it's a training progress logger
+        if name in TRAINING_PROGRESS_LOGGERS:
+            return True
+        for prefix in TRAINING_PROGRESS_LOGGERS:
+            if name.startswith(prefix + "."):
+                return True
+        # Check if it's an infra logger to block
+        for prefix in INFRA_LOGGER_PREFIXES:
+            if name.startswith(prefix):
+                return False
+        return True
+
+    logger.add(
+        sys.stderr,
+        colorize=True,
+        level=SKYRL_LOG_LEVEL,
+        filter=console_filter,
+        enqueue=True,
+        backtrace=False,
+        diagnose=False,
+        format="<green>{time:YYYY-MM-DD HH:mm:ss.SSS}</green> | "
+        "<level>{level: <8}</level> | "
+        "<cyan>{name}</cyan>:<cyan>{function}</cyan>:<cyan>{line}</cyan> - "
+        "<level>{message}</level>",
+    )
+
+    # Configure stdlib logging to route through loguru
+    _setup_stdlib_logging(log_file, verbose)
+
+    logger.info(f"Logging initialized. Log file: {log_file}")
+    return log_dir
+
+
+def _setup_stdlib_logging(log_file: Path, verbose: bool) -> None:
+    """
+    Configure stdlib logging to write to file and optionally stdout.
+
+    This captures logs from vLLM, transformers, and other third-party libraries.
+    """
+
+    class InterceptHandler(logging.Handler):
+        """Handler that routes stdlib logging to loguru."""
+
+        def emit(self, record: logging.LogRecord) -> None:
+            try:
+                level = logger.level(record.levelname).name
+            except ValueError:
+                level = record.levelno
+
+            # Find caller from where the logged message originated
+            frame, depth = logging.currentframe(), 2
+            while frame and frame.f_code.co_filename == logging.__file__:
+                frame = frame.f_back
+                depth += 1
+
+            logger.opt(depth=depth, exception=record.exc_info).log(level, record.getMessage())
+
+    # Remove existing handlers and add our interceptor
+    logging.root.handlers = [InterceptHandler()]
+    level = getattr(logging, SKYRL_LOG_LEVEL, logging.INFO)
+    logging.root.setLevel(level)
+
+    # Suppress noisy third-party loggers
+    for name in ["httpx", "httpcore", "urllib3", "asyncio"]:
+        logging.getLogger(name).setLevel(logging.WARNING)
+
+
+def configure_worker_logging() -> None:
+    """
+    Configure logging for Ray workers.
+
+    This is called within Ray workers to set up proper logging. Workers
+    write to stderr which is captured by Ray.
+    """
+    # Use the same setup but without run_name (workers don't create log dirs)
+    logger.remove()
+
+    level_name = SKYRL_LOG_LEVEL
+
+    # Console only for workers (Ray handles log forwarding)
+    logger.level("INFO", color="<bold><green>")
+    logger.add(
+        sys.stderr,
+        colorize=True,
+        level=level_name,
+        enqueue=True,
+        backtrace=False,
+        diagnose=False,
+        format="<green>{time:YYYY-MM-DD HH:mm:ss.SSS}</green> | "
+        "<level>{level: <8}</level> | "
+        "<cyan>{name}</cyan>:<cyan>{function}</cyan>:<cyan>{line}</cyan> - "
+        "<level>{message}</level>",
+    )
+
+    # Route stdlib logging through loguru
+    class InterceptHandler(logging.Handler):
+        def emit(self, record: logging.LogRecord) -> None:
+            try:
+                level = logger.level(record.levelname).name
+            except ValueError:
+                level = record.levelno
+            logger.opt(depth=6, exception=record.exc_info).log(level, record.getMessage())
+
+    logging.root.handlers = [InterceptHandler()]
+    level = getattr(logging, level_name, logging.INFO)
+    logging.root.setLevel(level)
diff --git a/skyrl-train/skyrl_train/utils/utils.py b/skyrl-train/skyrl_train/utils/utils.py
index 2c4dc8f7e..dcbcbe462 100644
--- a/skyrl-train/skyrl_train/utils/utils.py
+++ b/skyrl-train/skyrl_train/utils/utils.py
@@ -595,40 +595,15 @@ def prepare_runtime_environment(cfg: DictConfig) -> dict[str, str]:
 
 def configure_ray_worker_logging() -> None:
     """
+    Configure logging for Ray workers.
+
     In Ray workers, stderr/stdout are not TTYs, so Loguru disables color.
-    This method forces color and formatting (e.g., bold) and routes stdlib `logging`
-    through Loguru so third-party logs match formatting
+    This method forces color and formatting and routes stdlib logging
+    through Loguru so third-party logs match formatting.
     """
-    level_name = os.getenv("LOG_LEVEL", "INFO").upper()
-
-    # 1) Loguru formatting (force colors)
-    logger.remove()
-    logger.level("INFO", color="<bold><green>")
-    logger.add(
-        sys.stderr,
-        colorize=True,  # keep ANSI even without a TTY
-        level=level_name,  # ensure Loguru filters below this level
-        enqueue=True,
-        backtrace=False,
-        diagnose=False,
-        format="<green>{time:YYYY-MM-DD HH:mm:ss.SSS}</green> | "
-        "<level>{level: <8}</level> | "
-        "<cyan>{name}</cyan>:<cyan>{function}</cyan>:<cyan>{line}</cyan> - "
-        "<level>{message}</level>",
-    )
-
-    # 2) Route stdlib logging -> Loguru (so vLLM/transformers/etc. are formatted)
-    class _InterceptHandler(logging.Handler):
-        def emit(self, record: logging.LogRecord) -> None:
-            try:
-                level = logger.level(record.levelname).name
-            except ValueError:
-                level = record.levelno
-            logger.opt(depth=6, exception=record.exc_info).log(level, record.getMessage())
+    from skyrl_train.utils.logging import configure_worker_logging
 
-    logging.root.handlers = [_InterceptHandler()]
-    level = getattr(logging, level_name, logging.INFO)
-    logging.root.setLevel(level)
+    configure_worker_logging()
 
 
 def initialize_ray(cfg: DictConfig):
@@ -639,9 +614,19 @@ def initialize_ray(cfg: DictConfig):
         cfg: Training config
     """
     from .ppo_utils import sync_registries
+    from skyrl_train.env_vars import SKYRL_LOG_LEVEL
+
+    # SKYRL_LOG_LEVEL=DEBUG enables verbose Ray logging
+    verbose_logging = SKYRL_LOG_LEVEL == "DEBUG"
+
+    if not verbose_logging:
+        # Suppress C++ logs (metrics exporter errors) on stdout
+        os.environ["RAY_BACKEND_LOG_LEVEL"] = "fatal"
 
     env_vars = prepare_runtime_environment(cfg)
-    ray.init(runtime_env={"env_vars": env_vars})
+
+    # log_to_driver=False suppresses worker/raylet logs forwarding to driver stdout
+    ray.init(runtime_env={"env_vars": env_vars}, log_to_driver=verbose_logging)
 
     # create the named ray actors for the registries to make available to all workers
     sync_registries()