diff --git a/bot_bottle/egress.py b/bot_bottle/egress.py
index 8c1c0c3..bff91c4 100644
--- a/bot_bottle/egress.py
+++ b/bot_bottle/egress.py
@@ -62,7 +62,7 @@ class EgressPlan:
     egress_network: str = ""
     mitmproxy_ca_host_path: Path = Path()
     mitmproxy_ca_cert_only_host_path: Path = Path()
-    log: bool = False
+    log: int = 0
 
 
 def egress_manifest_routes(
@@ -192,11 +192,11 @@ def _route_to_yaml_fields(r: Route) -> dict[str, object]:
 def egress_render_routes(
     routes: tuple[EgressRoute, ...],
     *,
-    log: bool = False,
+    log: int = 0,
 ) -> str:
     lines: list[str] = []
     if log:
-        lines.append("log: true")
+        lines.append(f"log: {log}")
     lines.append("routes:")
     if not routes:
         lines[-1] = "routes: []"
diff --git a/bot_bottle/egress_addon.py b/bot_bottle/egress_addon.py
index 1bf1234..a91eed6 100644
--- a/bot_bottle/egress_addon.py
+++ b/bot_bottle/egress_addon.py
@@ -15,6 +15,8 @@ from pathlib import Path
 from mitmproxy import http  # type: ignore[import-not-found]
 
 from egress_addon_core import (  # type: ignore[import-not-found]
+    LOG_BLOCKS,
+    LOG_FULL,
     Config,
     Route,
     decide,
@@ -51,10 +53,11 @@ class EgressAddon:
                 self.config = Config(routes=())
             return
         self.config = new_config
+        log_label = ("off", "blocks", "full")[self.config.log]
         sys.stderr.write(
             f"egress: loaded {len(self.config.routes)} route(s): "
             f"{', '.join(r.host for r in self.config.routes)}"
-            f"{' [log=on]' if self.config.log else ''}\n"
+            f" [log={log_label}]\n"
         )
 
     def _install_sighup(self) -> None:
@@ -84,8 +87,24 @@ class EgressAddon:
             {"Content-Type": "text/plain; charset=utf-8"},
         )
 
-    def _block(self, flow: http.HTTPFlow, reason: str) -> None:
-        sys.stderr.write(f"{reason}\n")
+    def _req_ctx(self, flow: http.HTTPFlow) -> dict[str, object]:
+        return {
+            "host": flow.request.pretty_host,
+            "method": flow.request.method,
+            "path": flow.request.path,
+        }
+
+    def _block(
+        self,
+        flow: http.HTTPFlow,
+        reason: str,
+        ctx: dict[str, object] | None = None,
+    ) -> None:
+        if self.config.log >= LOG_BLOCKS:
+            entry: dict[str, object] = {"event": "egress_block", "reason": reason}
+            if ctx:
+                entry.update(ctx)
+            sys.stderr.write(json.dumps(entry) + "\n")
         flow.response = http.Response.make(
             403,
             reason.encode("utf-8"),
@@ -135,7 +154,11 @@ class EgressAddon:
                 scan_text = auth_header + "\n" + body
             dlp_result = scan_outbound(route, scan_text, os.environ)
             if dlp_result is not None and dlp_result.severity == "block":
-                self._block(flow, f"egress DLP: {dlp_result.reason}")
+                self._block(
+                    flow,
+                    f"egress DLP: {dlp_result.reason}",
+                    ctx=self._req_ctx(flow),
+                )
                 return
 
         # Strip inbound Authorization — agent cannot smuggle tokens.
@@ -147,6 +170,7 @@ class EgressAddon:
                 "egress: git push over HTTPS is not supported; "
                 "use the bottle.git SSH path (gitleaks-scanned by "
                 "git-gate's pre-receive hook).",
+                ctx=self._req_ctx(flow),
             )
             return
 
@@ -163,13 +187,13 @@ class EgressAddon:
         )
 
         if decision.action == "block":
-            self._block(flow, decision.reason)
+            self._block(flow, decision.reason, ctx=self._req_ctx(flow))
             return
 
         if decision.inject_authorization is not None:
             flow.request.headers["authorization"] = decision.inject_authorization
 
-        if self.config.log:
+        if self.config.log >= LOG_FULL:
             self._log_request(flow)
 
     def response(self, flow: http.HTTPFlow) -> None:
@@ -179,7 +203,7 @@ class EgressAddon:
             return
         if flow.response is None:
             return
-        if self.config.log:
+        if self.config.log >= LOG_FULL:
             self._log_response(flow)
         body = flow.response.get_text(strict=False) or ""
         if not body:
@@ -187,10 +211,18 @@ class EgressAddon:
         result = scan_inbound(route, body)
         if result is None:
             return
+        resp_ctx = {**self._req_ctx(flow), "response_status": flow.response.status_code}
         if result.severity == "block":
-            self._block(flow, f"egress DLP: {result.reason}")
-        elif result.severity == "warn":
-            sys.stderr.write(f"egress DLP warn: {result.reason}\n")
+            self._block(flow, f"egress DLP: {result.reason}", ctx=resp_ctx)
+        elif result.severity == "warn" and self.config.log >= LOG_BLOCKS:
+            sys.stderr.write(
+                json.dumps({
+                    "event": "egress_warn",
+                    "reason": f"egress DLP: {result.reason}",
+                    **resp_ctx,
+                })
+                + "\n"
+            )
 
 
 addons = [EgressAddon()]
diff --git a/bot_bottle/egress_addon_core.py b/bot_bottle/egress_addon_core.py
index f81e35b..1e2a238 100644
--- a/bot_bottle/egress_addon_core.py
+++ b/bot_bottle/egress_addon_core.py
@@ -70,10 +70,15 @@ class Route:
     inbound_detectors: tuple[str, ...] | None = None
 
 
+LOG_OFF = 0    # no logging
+LOG_BLOCKS = 1  # log block/warn events with request context
+LOG_FULL = 2    # log block/warn events + full request and response bodies
+
+
 @dataclass(frozen=True)
 class Config:
     routes: tuple[Route, ...]
-    log: bool = False
+    log: int = LOG_OFF
 
 
 @dataclass(frozen=True)
@@ -341,14 +346,17 @@ def load_routes(text: str) -> tuple[Route, ...]:
 
 
 def parse_config(payload: object) -> "Config":
-    """Parse a full egress config payload (top-level log flag + routes)."""
+    """Parse a full egress config payload (top-level log level + routes)."""
     if not isinstance(payload, dict):
         raise ValueError("routes payload: top-level must be an object")
     payload_dict: dict[str, object] = typing.cast(dict[str, object], payload)
 
-    log_raw: object = payload_dict.get("log", False)
-    if not isinstance(log_raw, bool):
-        raise ValueError("routes payload: 'log' must be true or false")
+    log_raw: object = payload_dict.get("log", LOG_OFF)
+    if log_raw is True or log_raw is False or not isinstance(log_raw, int) \
+            or log_raw not in (LOG_OFF, LOG_BLOCKS, LOG_FULL):
+        raise ValueError(
+            f"routes payload: 'log' must be {LOG_OFF}, {LOG_BLOCKS}, or {LOG_FULL}"
+        )
 
     routes = parse_routes(payload)
     return Config(routes=routes, log=log_raw)
@@ -564,6 +572,9 @@ def scan_inbound(
 
 
 __all__ = [
+    "LOG_BLOCKS",
+    "LOG_FULL",
+    "LOG_OFF",
     "Config",
     "Decision",
     "HeaderMatch",
diff --git a/bot_bottle/manifest_egress.py b/bot_bottle/manifest_egress.py
index a86b372..cbdded4 100644
--- a/bot_bottle/manifest_egress.py
+++ b/bot_bottle/manifest_egress.py
@@ -346,10 +346,13 @@ def _parse_dlp_block(
     return outbound, inbound
 
 
+LOG_LEVELS = frozenset({0, 1, 2})
+
+
 @dataclass(frozen=True)
 class EgressConfig:
     routes: tuple[EgressRoute, ...] = ()
-    Log: bool = False
+    Log: int = 0
 
     @classmethod
     def from_dict(cls, bottle_name: str, raw: object) -> "EgressConfig":
@@ -368,10 +371,11 @@ class EgressConfig:
                 for i, entry in enumerate(routes_list)
             )
             validate_egress_routes(bottle_name, routes)
-        log_raw = d.get("log", False)
-        if not isinstance(log_raw, bool):
+        log_raw = d.get("log", 0)
+        if isinstance(log_raw, bool) or not isinstance(log_raw, int) \
+                or log_raw not in LOG_LEVELS:
             raise ManifestError(
-                f"bottle '{bottle_name}' egress.log must be true or false"
+                f"bottle '{bottle_name}' egress.log must be 0, 1, or 2"
             )
         for k in d:
             if k not in ("routes", "log"):
diff --git a/docs/prds/0053-egress-traffic-logging.md b/docs/prds/0053-egress-traffic-logging.md
new file mode 100644
index 0000000..1e4f950
--- /dev/null
+++ b/docs/prds/0053-egress-traffic-logging.md
@@ -0,0 +1,148 @@
+# PRD 0053: Egress traffic logging
+
+- **Status:** Active
+- **Author:** claude
+- **Created:** 2026-06-06
+- **PR:** #207
+
+## Summary
+
+Adds structured log levels to the egress proxy so operators can observe
+traffic and security decisions without modifying any application code.
+Three integer levels control verbosity: `0` (off), `1` (security events
+only), and `2` (full request/response capture). All output is JSON lines
+written to stderr.
+
+## Problem
+
+The egress proxy makes per-request allow/block decisions and DLP scans, but
+until now those decisions are invisible unless something is actively blocked
+and the caller inspects the 403 body. Debugging unexpected blocks, auditing
+what an agent is sending upstream, and verifying DLP detector behaviour all
+require adding ad-hoc instrumentation or tailing the sidecar container logs
+with no structure to grep against.
+
+## Goals / Success Criteria
+
+1. **Level 0 (off, default):** no egress output to stderr beyond the boot
+   line. Existing behaviour for production deployments.
+2. **Level 1 (blocks):** every block or DLP warn event is emitted to stderr
+   as a JSON line with the event type, human-readable reason (including the
+   secret type detected for DLP hits), and the request context (host, method,
+   path; plus upstream status code for response-phase events). No traffic
+   bodies are logged.
+3. **Level 2 (full):** all level-1 events, plus a `egress_request` JSON line
+   for every forwarded request (method, path, headers, body after auth
+   injection) and an `egress_response` JSON line for every response that
+   passes DLP (status, headers, body).
+4. The log level is a single integer field `log` at the top of the egress
+   config (routes.yaml in the sidecar; `egress.log` in the bottle manifest).
+   Values other than 0, 1, 2 are rejected at parse time on both sides.
+5. The boot message includes the active log level label (`off`, `blocks`,
+   `full`).
+
+## Non-goals
+
+- Log rotation or file sinks — stderr output is captured by the container
+  runtime (Docker, smolmachines) and goes wherever the operator routes it.
+- Per-route log levels — all routes share the global level.
+- Redacting secrets from the level-2 body dump — at level 2 the operator
+  has explicitly requested full visibility; redaction belongs in the
+  log consumer, not the proxy.
+
+## Design
+
+### Wire format
+
+`routes.yaml` gains an optional top-level `log` key:
+
+```yaml
+log: 1          # 0 = off (default), 1 = blocks, 2 = full
+routes:
+  - host: "api.anthropic.com"
+    ...
+```
+
+The field is omitted entirely when the level is 0 (default).
+
+### Manifest format
+
+```yaml
+egress:
+  log: 1
+  routes:
+    - host: "api.anthropic.com"
+      ...
+```
+
+`egress.log` accepts integers 0, 1, or 2. Booleans and strings are rejected.
+
+### Log events
+
+**Block / DLP block (level ≥ 1):**
+```json
+{
+  "event": "egress_block",
+  "reason": "egress DLP: GitHub token (classic) found in request",
+  "host": "api.github.com",
+  "method": "POST",
+  "path": "/gists"
+}
+```
+
+Response-phase block also includes `"response_status"`.
+
+**DLP warn (level ≥ 1):**
+```json
+{
+  "event": "egress_warn",
+  "reason": "egress DLP: possible prompt injection detected",
+  "host": "api.anthropic.com",
+  "method": "POST",
+  "path": "/v1/messages",
+  "response_status": 200
+}
+```
+
+**Forwarded request (level 2):**
+```json
+{
+  "event": "egress_request",
+  "host": "api.anthropic.com",
+  "method": "POST",
+  "path": "/v1/messages",
+  "headers": { "authorization": "Bearer sk-ant-...", "content-type": "application/json" },
+  "body": "{\"model\": \"claude-opus-4-8\", ...}"
+}
+```
+
+The request is logged after auth injection, so the outgoing `Authorization`
+header is present. The agent's original `Authorization` header is stripped
+before logging.
+
+**Response (level 2):**
+```json
+{
+  "event": "egress_response",
+  "host": "api.anthropic.com",
+  "status": 200,
+  "headers": { "content-type": "application/json" },
+  "body": "{\"id\": \"msg_...\", ...}"
+}
+```
+
+Responses are logged before DLP scanning, so the body is always the raw
+upstream response.
+
+### Implementation
+
+- **`egress_addon_core.py`**: `Config.log: int = LOG_OFF` (`LOG_OFF=0`,
+  `LOG_BLOCKS=1`, `LOG_FULL=2`). `parse_config()` validates the integer and
+  rejects booleans.
+- **`egress_addon.py`**: `_block()` emits JSON when `log >= LOG_BLOCKS`. The
+  `_req_ctx()` helper builds `{host, method, path}` for every call site.
+  `_log_request()` / `_log_response()` fire when `log >= LOG_FULL`.
+- **`manifest_egress.py`**: `EgressConfig.Log: int = 0`, parsed from
+  `egress.log`, validated against `{0, 1, 2}`.
+- **`egress.py`**: `egress_render_routes(routes, *, log: int = 0)` emits
+  `log: N` at the top of routes.yaml when N > 0. `EgressPlan.log: int = 0`.
diff --git a/tests/unit/test_egress.py b/tests/unit/test_egress.py
index 50a3e9e..37af5d3 100644
--- a/tests/unit/test_egress.py
+++ b/tests/unit/test_egress.py
@@ -324,43 +324,45 @@ class TestRenderRoutes(unittest.TestCase):
         self.assertEqual(("token_patterns",), addon_routes[0].outbound_detectors)
         self.assertEqual((), addon_routes[0].inbound_detectors)
 
-    def test_log_false_omitted_from_render(self):
+    def test_log_zero_omitted_from_render(self):
         b = _bottle([{"host": "x.example"}])
         routes = egress_routes_for_bottle(b)
-        rendered = egress_render_routes(routes, log=False)
+        rendered = egress_render_routes(routes, log=0)
         self.assertNotIn("log:", rendered)
 
-    def test_log_true_emitted_at_top_level(self):
+    def test_log_level_emitted_at_top_level(self):
         b = _bottle([{"host": "x.example"}])
         routes = egress_routes_for_bottle(b)
-        rendered = egress_render_routes(routes, log=True)
-        self.assertTrue(rendered.startswith("log: true\n"))
+        for level in (1, 2):
+            with self.subTest(level=level):
+                rendered = egress_render_routes(routes, log=level)
+                self.assertTrue(rendered.startswith(f"log: {level}\n"))
 
-    def test_log_true_round_trips_to_addon_core(self):
-        from bot_bottle.egress_addon_core import load_config
+    def test_log_level_round_trips_to_addon_core(self):
+        from bot_bottle.egress_addon_core import load_config, LOG_FULL
         b = _bottle([{"host": "x.example"}])
         routes = egress_routes_for_bottle(b)
-        rendered = egress_render_routes(routes, log=True)
+        rendered = egress_render_routes(routes, log=LOG_FULL)
         cfg = load_config(rendered)
-        self.assertTrue(cfg.log)
+        self.assertEqual(LOG_FULL, cfg.log)
         self.assertEqual("x.example", cfg.routes[0].host)
 
     def test_log_via_manifest_flows_to_render(self):
         from bot_bottle.manifest import Manifest
-        from bot_bottle.egress_addon_core import load_config
+        from bot_bottle.egress_addon_core import load_config, LOG_BLOCKS
         m = Manifest.from_json_obj({
             "bottles": {"dev": {"egress": {
-                "log": True,
+                "log": 1,
                 "routes": [{"host": "x.example"}],
             }}},
             "agents": {"demo": {"skills": [], "prompt": "", "bottle": "dev"}},
         })
         bottle = m.bottles["dev"]
-        self.assertTrue(bottle.egress.Log)
+        self.assertEqual(LOG_BLOCKS, bottle.egress.Log)
         routes = egress_routes_for_bottle(bottle)
         rendered = egress_render_routes(routes, log=bottle.egress.Log)
         cfg = load_config(rendered)
-        self.assertTrue(cfg.log)
+        self.assertEqual(LOG_BLOCKS, cfg.log)
 
 
 class TestResolveTokenValues(unittest.TestCase):
diff --git a/tests/unit/test_egress_addon_core.py b/tests/unit/test_egress_addon_core.py
index 4f64826..c2bdc07 100644
--- a/tests/unit/test_egress_addon_core.py
+++ b/tests/unit/test_egress_addon_core.py
@@ -13,6 +13,9 @@ from pathlib import Path
 from urllib.parse import urlsplit
 
 from bot_bottle.egress_addon_core import (
+    LOG_BLOCKS,
+    LOG_FULL,
+    LOG_OFF,
     Config,
     Decision,
     HeaderMatch,
@@ -278,23 +281,34 @@ class TestLoadRoutes(unittest.TestCase):
 
 
 class TestLoadConfig(unittest.TestCase):
-    def test_log_defaults_to_false(self):
+    def test_log_defaults_to_off(self):
         cfg = load_config('routes:\n  - host: "api.example"\n')
-        self.assertFalse(cfg.log)
+        self.assertEqual(LOG_OFF, cfg.log)
         self.assertEqual(1, len(cfg.routes))
 
-    def test_log_true_parsed(self):
-        cfg = load_config('log: true\nroutes:\n  - host: "api.example"\n')
-        self.assertTrue(cfg.log)
-        self.assertEqual(1, len(cfg.routes))
+    def test_log_level_1_parsed(self):
+        cfg = load_config('log: 1\nroutes:\n  - host: "api.example"\n')
+        self.assertEqual(LOG_BLOCKS, cfg.log)
 
-    def test_log_false_explicit(self):
-        cfg = load_config('log: false\nroutes:\n  - host: "api.example"\n')
-        self.assertFalse(cfg.log)
+    def test_log_level_2_parsed(self):
+        cfg = load_config('log: 2\nroutes:\n  - host: "api.example"\n')
+        self.assertEqual(LOG_FULL, cfg.log)
 
-    def test_log_non_bool_rejected(self):
+    def test_log_level_0_explicit(self):
+        cfg = load_config('log: 0\nroutes:\n  - host: "api.example"\n')
+        self.assertEqual(LOG_OFF, cfg.log)
+
+    def test_log_invalid_level_rejected(self):
         with self.assertRaises(ValueError):
-            load_config('log: "yes"\nroutes: []\n')
+            load_config('log: 3\nroutes: []\n')
+
+    def test_log_bool_rejected(self):
+        with self.assertRaises(ValueError):
+            load_config('log: true\nroutes: []\n')
+
+    def test_log_string_rejected(self):
+        with self.assertRaises(ValueError):
+            load_config('log: "full"\nroutes: []\n')
 
     def test_routes_accessible_via_config(self):
         cfg = load_config('routes:\n  - host: "x.example"\n')
diff --git a/tests/unit/test_manifest_egress.py b/tests/unit/test_manifest_egress.py
index d23dd2a..d41863f 100644
--- a/tests/unit/test_manifest_egress.py
+++ b/tests/unit/test_manifest_egress.py
@@ -346,21 +346,44 @@ class TestConfigShape(unittest.TestCase):
                                      "bottle": "dev"}},
             })
 
-    def test_log_defaults_false(self):
+    def test_log_defaults_zero(self):
         b = _bottle([])
-        self.assertFalse(b.egress.Log)
+        self.assertEqual(0, b.egress.Log)
 
-    def test_log_true_accepted(self):
+    def test_log_level_1_accepted(self):
         b = Manifest.from_json_obj({
-            "bottles": {"dev": {"egress": {"log": True, "routes": []}}},
+            "bottles": {"dev": {"egress": {"log": 1, "routes": []}}},
             "agents": {"demo": {"skills": [], "prompt": "", "bottle": "dev"}},
         }).bottles["dev"]
-        self.assertTrue(b.egress.Log)
+        self.assertEqual(1, b.egress.Log)
 
-    def test_log_non_bool_rejected(self):
+    def test_log_level_2_accepted(self):
+        b = Manifest.from_json_obj({
+            "bottles": {"dev": {"egress": {"log": 2, "routes": []}}},
+            "agents": {"demo": {"skills": [], "prompt": "", "bottle": "dev"}},
+        }).bottles["dev"]
+        self.assertEqual(2, b.egress.Log)
+
+    def test_log_invalid_level_rejected(self):
         with self.assertRaises(ManifestError):
             Manifest.from_json_obj({
-                "bottles": {"dev": {"egress": {"log": "yes"}}},
+                "bottles": {"dev": {"egress": {"log": 3}}},
+                "agents": {"demo": {"skills": [], "prompt": "",
+                                     "bottle": "dev"}},
+            })
+
+    def test_log_bool_rejected(self):
+        with self.assertRaises(ManifestError):
+            Manifest.from_json_obj({
+                "bottles": {"dev": {"egress": {"log": True}}},
+                "agents": {"demo": {"skills": [], "prompt": "",
+                                     "bottle": "dev"}},
+            })
+
+    def test_log_string_rejected(self):
+        with self.assertRaises(ManifestError):
+            Manifest.from_json_obj({
+                "bottles": {"dev": {"egress": {"log": "full"}}},
                 "agents": {"demo": {"skills": [], "prompt": "",
                                      "bottle": "dev"}},
             })