diff --git a/services/batch-agent/app/agent_runner.py b/services/batch-agent/app/agent_runner.py
index c8c40fa..39980f5 100644
--- a/services/batch-agent/app/agent_runner.py
+++ b/services/batch-agent/app/agent_runner.py
@@ -193,9 +193,11 @@ async def _run_agent_with_tools(
     user_message: str,
     tools: list[Any],
     max_steps: int,
+    langfuse_handler: Any | None = None,
 ) -> str:
     """Run an LLM agent with tool-calling, returning the final text response."""
-    llm = get_llm()
+    callbacks = [langfuse_handler] if langfuse_handler else None
+    llm = get_llm(callbacks=callbacks)
     llm_with_tools = llm.bind_tools(tools)
     messages: list[Any] = [
         SystemMessage(content=system_prompt),
@@ -396,6 +398,7 @@ async def _classify_file(
     file_content: str,
     projects: list[dict],
     config_data_types: list[str],
+    langfuse_handler: Any | None = None,
 ) -> tuple[str, list[str], str | None]:
     fallback: tuple[str, list[str], str | None] = ("new", list(config_data_types), None)
 
@@ -422,7 +425,7 @@ async def _classify_file(
         projects_list=projects_list,
     )
 
-    llm = get_llm()
+    llm = get_llm(callbacks=[langfuse_handler] if langfuse_handler else None)
     try:
         response = await llm.ainvoke([
             SystemMessage(content=system),
@@ -458,7 +461,7 @@ async def _classify_file(
 # ── Local agent runner (two-step per file) ────────────────────────────────
 
 
-async def run_local_agent(user_id: str, trigger_data: dict[str, Any]) -> None:
+async def run_local_agent(user_id: str, trigger_data: dict[str, Any], *, langfuse_handler: Any | None = None) -> None:
     """Execute a local directory agent run.
 
     In the microservice world, trigger_data is a serialized dict from
@@ -552,6 +555,7 @@ async def run_local_agent(user_id: str, trigger_data: dict[str, Any]) -> None:
                     file_content=file_content,
                     projects=projects,
                     config_data_types=data_types,
+                    langfuse_handler=langfuse_handler,
                 )
 
                 # Step 2 — resolve project_id, fetch entities, process
@@ -610,6 +614,7 @@ async def run_local_agent(user_id: str, trigger_data: dict[str, Any]) -> None:
                     ),
                     tools=processing_tools,
                     max_steps=_MAX_PROCESSING_STEPS,
+                    langfuse_handler=langfuse_handler,
                 )
                 logger.info(
                     "agent_runner: run=%s file=%r result=%s",
@@ -660,7 +665,7 @@ async def run_local_agent(user_id: str, trigger_data: dict[str, Any]) -> None:
 _CLOUD_DEFAULT_LOOKBACK_DAYS: int = 7
 
 
-async def run_cloud_agent(user_id: str, config_id: str) -> None:
+async def run_cloud_agent(user_id: str, config_id: str, *, langfuse_handler: Any | None = None) -> None:
     """Execute a cloud connector agent run.
 
     Loads the CloudAgentConfig from DB, decrypts OAuth tokens, fetches
@@ -789,6 +794,7 @@ async def run_cloud_agent(user_id: str, config_id: str) -> None:
                     user_message=f"Process this message content:\n\n{content_text[:8000]}",
                     tools=processing_tools,
                     max_steps=_MAX_PROCESSING_STEPS,
+                    langfuse_handler=langfuse_handler,
                 )
             except Exception as exc:
                 errors.append(f"LLM processing error for message {msg.id!r}: {exc}")
diff --git a/services/batch-agent/app/journey.py b/services/batch-agent/app/journey.py
index 5f18922..4f26b2e 100644
--- a/services/batch-agent/app/journey.py
+++ b/services/batch-agent/app/journey.py
@@ -190,6 +190,7 @@ async def _call_llm_with_tools(
     system_prompt: str,
     history: list[dict[str, Any]],
     tools: list[Any],
+    langfuse_handler: Any | None = None,
 ) -> str:
     """Build LangChain messages from history and invoke the LLM with tools.
 
@@ -203,7 +204,8 @@ async def _call_llm_with_tools(
         else:
             messages.append(AIMessage(content=turn["content"]))
 
-    llm = get_llm(model=None, temperature=0.4)
+    callbacks = [langfuse_handler] if langfuse_handler else None
+    llm = get_llm(model=None, temperature=0.4, callbacks=callbacks)
     llm_with_tools = llm.bind_tools(tools)
     tool_map = {tool_def.name: tool_def for tool_def in tools}
 
@@ -247,6 +249,8 @@ async def _call_llm_with_tools(
 async def handle_journey_start(
     user_id: str,
     frame: dict[str, Any],
+    *,
+    langfuse_handler: Any | None = None,
 ) -> dict[str, Any]:
     """Handle a ``journey_start`` request.
 
@@ -277,6 +281,7 @@ async def handle_journey_start(
         system_prompt=system_prompt,
         history=seed_history,
         tools=list(FILESYSTEM_TOOLS),
+        langfuse_handler=langfuse_handler,
     )
 
     session.history.extend(seed_history)
@@ -313,6 +318,8 @@ async def handle_journey_start(
 async def handle_journey_message(
     user_id: str,
     frame: dict[str, Any],
+    *,
+    langfuse_handler: Any | None = None,
 ) -> dict[str, Any]:
     """Handle a ``journey_message`` request.
 
@@ -338,6 +345,7 @@ async def handle_journey_message(
         system_prompt=session.system_prompt,
         history=session.history,
         tools=list(FILESYSTEM_TOOLS),
+        langfuse_handler=langfuse_handler,
     )
 
     session.history.append({"role": "assistant", "content": ai_reply})
@@ -358,6 +366,7 @@ async def handle_journey_message(
                 system_prompt=session.system_prompt,
                 history=session.history,
                 tools=list(FILESYSTEM_TOOLS),
+                langfuse_handler=langfuse_handler,
             )
             session.history.append({"role": "assistant", "content": nudge_reply})
 
diff --git a/services/batch-agent/app/llm.py b/services/batch-agent/app/llm.py
index 929b358..67f8b0b 100644
--- a/services/batch-agent/app/llm.py
+++ b/services/batch-agent/app/llm.py
@@ -41,6 +41,7 @@ def get_llm(
     *,
     model: str | None = None,
     temperature: float = 0,
+    callbacks: list | None = None,
 ) -> ChatOpenAI | ChatLiteLLM:
     model = model or settings.LLM_MODEL
 
@@ -48,12 +49,13 @@ def get_llm(
         os.environ.setdefault("GITHUB_COPILOT_TOKEN_DIR", settings.GITHUB_COPILOT_TOKEN_DIR)
 
     if "/" in model:
-        return ChatLiteLLM(model=model, temperature=temperature)
+        return ChatLiteLLM(model=model, temperature=temperature, callbacks=callbacks)
 
     return ChatOpenAI(
         model=model,
         temperature=temperature,
         api_key=_api_key_for_model(model),
+        callbacks=callbacks,
     )
 
 
diff --git a/services/batch-agent/app/main.py b/services/batch-agent/app/main.py
index 52f9a82..ea9105e 100644
--- a/services/batch-agent/app/main.py
+++ b/services/batch-agent/app/main.py
@@ -29,6 +29,10 @@ logger = logging.getLogger(__name__)
 
 @asynccontextmanager
 async def lifespan(app: FastAPI) -> AsyncGenerator[None, None]:
+    # Initialise Langfuse tracing (no-op if keys are missing)
+    from app.tracing import init_langfuse
+    init_langfuse()
+
     logger.info("batch-agent: starting Redis consumer")
     task = asyncio.create_task(start_consumer())
     yield
@@ -37,6 +41,16 @@ async def lifespan(app: FastAPI) -> AsyncGenerator[None, None]:
         await task
     except asyncio.CancelledError:
         pass
+
+    from app.tracing import shutdown as shutdown_langfuse
+    shutdown_langfuse()
+
+    from shared.db import engine
+    await engine.dispose()
+
+    from shared.redis import redis_client
+    await redis_client.aclose()
+
     logger.info("batch-agent: Redis consumer stopped")
 
 
diff --git a/services/batch-agent/app/redis_consumer.py b/services/batch-agent/app/redis_consumer.py
index d0947d9..e1967c8 100644
--- a/services/batch-agent/app/redis_consumer.py
+++ b/services/batch-agent/app/redis_consumer.py
@@ -17,6 +17,7 @@ from typing import Any
 
 from shared.redis import redis_client, batch_request_channel, ws_out_channel
 
+import app.tracing as tracing
 from app.ws_context import set_current_user, clear_current_user
 
 logger = logging.getLogger(__name__)
@@ -32,15 +33,27 @@ async def _handle_journey_start(user_id: str, data: dict[str, Any]) -> None:
     """Handle a journey_start request from WS Gateway."""
     from app.journey import handle_journey_start
 
+    session_id = data.get("session_id", "")
     set_current_user(user_id)
     try:
-        reply = await handle_journey_start(user_id, data)
-        await _publish_to_user(user_id, reply)
+        with tracing.trace_span(
+            name="journey_start",
+            user_id=user_id,
+            session_id=session_id,
+            input=data.get("directory", ""),
+            metadata={"data_types": data.get("data_types", [])},
+            tags=["journey"],
+        ) as span:
+            langfuse_handler = tracing.get_langfuse_callback()
+            reply = await handle_journey_start(user_id, data, langfuse_handler=langfuse_handler)
+            span.update(output=reply.get("message", "")[:500])
+            await _publish_to_user(user_id, reply)
+        tracing.flush()
     except Exception as exc:
         logger.error("batch-agent: journey_start failed user=%s: %s", user_id, exc)
         await _publish_to_user(user_id, {
             "type": "journey_reply",
-            "session_id": data.get("session_id", ""),
+            "session_id": session_id,
             "message": f"Journey setup failed: {exc}",
             "done": True,
             "prompt_template": None,
@@ -53,15 +66,26 @@ async def _handle_journey_message(user_id: str, data: dict[str, Any]) -> None:
     """Handle a journey_message from WS Gateway."""
     from app.journey import handle_journey_message
 
+    session_id = data.get("session_id", "")
     set_current_user(user_id)
     try:
-        reply = await handle_journey_message(user_id, data)
-        await _publish_to_user(user_id, reply)
+        with tracing.trace_span(
+            name="journey_message",
+            user_id=user_id,
+            session_id=session_id,
+            input=data.get("message", "")[:200],
+            tags=["journey"],
+        ) as span:
+            langfuse_handler = tracing.get_langfuse_callback()
+            reply = await handle_journey_message(user_id, data, langfuse_handler=langfuse_handler)
+            span.update(output=reply.get("message", "")[:500])
+            await _publish_to_user(user_id, reply)
+        tracing.flush()
     except Exception as exc:
         logger.error("batch-agent: journey_message failed user=%s: %s", user_id, exc)
         await _publish_to_user(user_id, {
             "type": "journey_reply",
-            "session_id": data.get("session_id", ""),
+            "session_id": session_id,
             "message": f"Journey processing failed: {exc}",
             "done": True,
             "prompt_template": None,
@@ -74,15 +98,28 @@ async def _handle_agent_trigger(user_id: str, data: dict[str, Any]) -> None:
     """Handle an agent_trigger request from the REST route (forwarded via Redis)."""
     from app.agent_runner import run_local_agent
 
+    run_context = data.get("run_context", {})
+    agent_id = run_context.get("agent_id", "")
     set_current_user(user_id)
     try:
-        await run_local_agent(user_id, data)
+        with tracing.trace_span(
+            name="agent_trigger",
+            user_id=user_id,
+            trace_id=run_context.get("run_id"),
+            input={"agent_id": agent_id, "directory": data.get("directory", "")},
+            metadata={"data_types": data.get("data_types", [])},
+            tags=["batch", "agent_run"],
+        ) as span:
+            langfuse_handler = tracing.get_langfuse_callback()
+            await run_local_agent(user_id, data, langfuse_handler=langfuse_handler)
+            span.update(output={"status": "completed"})
+        tracing.flush()
     except Exception as exc:
         logger.error("batch-agent: agent_trigger failed user=%s: %s", user_id, exc)
         await _publish_to_user(user_id, {
             "type": "run_complete",
             "status": "error",
-            "run_context": data.get("run_context", {}),
+            "run_context": run_context,
         })
     finally:
         clear_current_user()
diff --git a/services/batch-agent/app/tracing.py b/services/batch-agent/app/tracing.py
new file mode 100644
index 0000000..613210a
--- /dev/null
+++ b/services/batch-agent/app/tracing.py
@@ -0,0 +1,264 @@
+"""Langfuse tracing & prompt management for the Batch Agent Service (v4 SDK).
+
+Provides:
+- ``init_langfuse()`` — initialise the singleton client at startup
+- ``trace_span()`` — context manager that creates a trace + span
+- ``get_langfuse_callback()`` — LangChain callback handler (auto-inherits trace)
+- ``get_prompt()`` — fetch a managed prompt from Langfuse by name
+- ``flush()`` / ``shutdown()`` — lifecycle management
+
+All functions gracefully degrade to no-ops when Langfuse is not configured,
+so the service works identically with or without observability keys.
+
+Requires ``langfuse >= 3.0.0`` (v4 / "Fast Preview" SDK).
+"""
+
+from __future__ import annotations
+
+import logging
+from contextlib import contextmanager
+from typing import Any
+
+from shared.config import settings
+
+logger = logging.getLogger(__name__)
+
+# ── State ────────────────────────────────────────────────────────────────
+
+_initialised: bool = False
+_disabled: bool = False
+
+
+def _is_configured() -> bool:
+    return bool(settings.LANGFUSE_SECRET_KEY and settings.LANGFUSE_PUBLIC_KEY)
+
+
+def init_langfuse() -> None:
+    """Initialise the Langfuse singleton. Call once at startup."""
+    global _initialised, _disabled
+
+    if _initialised or _disabled:
+        return
+
+    if not _is_configured():
+        _disabled = True
+        logger.info("tracing: Langfuse keys not set — tracing disabled")
+        return
+
+    try:
+        from langfuse import Langfuse
+
+        Langfuse(
+            secret_key=settings.LANGFUSE_SECRET_KEY,
+            public_key=settings.LANGFUSE_PUBLIC_KEY,
+            host=settings.LANGFUSE_HOST,
+        )
+        _initialised = True
+        logger.info("tracing: Langfuse client initialised (host=%s)", settings.LANGFUSE_HOST)
+    except Exception as exc:
+        _disabled = True
+        logger.warning("tracing: failed to initialise Langfuse: %s", exc)
+
+
+def _get_client() -> Any | None:
+    """Return the singleton Langfuse client, or *None* if disabled."""
+    if _disabled:
+        return None
+    if not _initialised:
+        init_langfuse()
+    if _disabled:
+        return None
+    try:
+        from langfuse import get_client
+        return get_client()
+    except Exception:
+        return None
+
+
+# ── Null span (no-op when Langfuse is disabled) ─────────────────────────
+
+
+class _NullSpan:
+    """Drop-in replacement when Langfuse is disabled."""
+
+    def update(self, **_: Any) -> None: ...
+    def set_trace_io(self, **_: Any) -> None: ...
+    def score_trace(self, **_: Any) -> None: ...
+
+
+# ── Trace context manager ───────────────────────────────────────────────
+
+
+@contextmanager
+def trace_span(
+    *,
+    name: str,
+    user_id: str,
+    session_id: str | None = None,
+    trace_id: str | None = None,
+    input: Any = None,
+    metadata: dict[str, Any] | None = None,
+    tags: list[str] | None = None,
+):
+    """Context manager that creates a Langfuse trace/span.
+
+    Yields the span object (or a ``_NullSpan`` if Langfuse is disabled).
+    A ``CallbackHandler`` created inside this block auto-inherits the trace
+    context, so there is no need to pass trace IDs manually.
+    """
+    lf = _get_client()
+    if lf is None:
+        yield _NullSpan()
+        return
+
+    try:
+        from langfuse import Langfuse, propagate_attributes
+
+        trace_ctx: dict[str, str] = {}
+        if trace_id is not None:
+            trace_ctx["trace_id"] = Langfuse.create_trace_id(seed=trace_id)
+
+        with lf.start_as_current_observation(
+            as_type="span",
+            name=name,
+            input=input,
+            metadata=metadata or {},
+            **({"trace_context": trace_ctx} if trace_ctx else {}),
+        ) as span:
+            with propagate_attributes(
+                user_id=user_id,
+                session_id=session_id,
+                tags=tags or [],
+            ):
+                yield span
+    except Exception as exc:
+        logger.warning("tracing: trace_span(%s) failed: %s", name, exc)
+        yield _NullSpan()
+
+
+# ── LangChain callback handler ──────────────────────────────────────────
+
+
+def get_langfuse_callback() -> Any | None:
+    """Return a LangChain ``CallbackHandler`` that auto-inherits the current trace.
+
+    Must be called inside a ``trace_span()`` block for proper linking.
+    Returns *None* when Langfuse is disabled.
+    """
+    if _disabled and not _initialised:
+        return None
+
+    try:
+        from langfuse.langchain import CallbackHandler
+        return CallbackHandler()
+    except Exception as exc:
+        logger.warning("tracing: get_langfuse_callback failed: %s", exc)
+        return None
+
+
+# ── Prompt management ────────────────────────────────────────────────────
+
+
+def get_prompt(
+    name: str,
+    *,
+    version: int | None = None,
+    label: str | None = None,
+    fallback: str | None = None,
+    cache_ttl_seconds: int = 300,
+) -> str | None:
+    """Fetch a managed prompt from Langfuse by name.
+
+    Returns the compiled prompt string, or *fallback* if the prompt is not
+    found or Langfuse is disabled.
+    """
+    lf = _get_client()
+    if lf is None:
+        return fallback
+
+    try:
+        kwargs: dict[str, Any] = {
+            "name": name,
+            "cache_ttl_seconds": cache_ttl_seconds,
+        }
+        if version is not None:
+            kwargs["version"] = version
+        if label is not None:
+            kwargs["label"] = label
+        prompt = lf.get_prompt(**kwargs)
+        return prompt.prompt
+    except Exception as exc:
+        logger.warning("tracing: get_prompt(%s) failed: %s", name, exc)
+        return fallback
+
+
+def link_prompt_to_trace(
+    span: Any,
+    prompt_name: str,
+    *,
+    version: int | None = None,
+    label: str | None = None,
+) -> None:
+    """Attach prompt metadata to a span/trace."""
+    lf = _get_client()
+    if lf is None or isinstance(span, _NullSpan):
+        return
+
+    try:
+        kwargs: dict[str, Any] = {"name": prompt_name}
+        if version is not None:
+            kwargs["version"] = version
+        if label is not None:
+            kwargs["label"] = label
+        prompt = lf.get_prompt(**kwargs)
+        span.update(metadata={"prompt": {"name": prompt_name, "version": prompt.version}})
+    except Exception as exc:
+        logger.warning("tracing: link_prompt_to_trace(%s) failed: %s", prompt_name, exc)
+
+
+# ── Scoring helper ───────────────────────────────────────────────────────
+
+
+def score_trace(
+    trace_id: str,
+    name: str,
+    value: float,
+    *,
+    comment: str | None = None,
+) -> None:
+    """Post a score to a trace (e.g. user feedback, latency, quality)."""
+    lf = _get_client()
+    if lf is None:
+        return
+
+    try:
+        lf.create_score(trace_id=trace_id, name=name, value=value, comment=comment)
+    except Exception as exc:
+        logger.warning("tracing: score_trace failed: %s", exc)
+
+
+# ── Shutdown ─────────────────────────────────────────────────────────────
+
+
+def flush() -> None:
+    """Flush pending Langfuse events."""
+    lf = _get_client()
+    if lf is not None:
+        try:
+            lf.flush()
+        except Exception as exc:
+            logger.warning("tracing: flush failed: %s", exc)
+
+
+def shutdown() -> None:
+    """Flush and close the Langfuse client."""
+    global _initialised, _disabled
+    lf = _get_client()
+    if lf is not None:
+        try:
+            lf.flush()
+            lf.shutdown()
+        except Exception as exc:
+            logger.warning("tracing: shutdown failed: %s", exc)
+    _initialised = False
+    _disabled = False
diff --git a/services/batch-agent/requirements.txt b/services/batch-agent/requirements.txt
index 42e9b67..1c61ea5 100644
--- a/services/batch-agent/requirements.txt
+++ b/services/batch-agent/requirements.txt
@@ -14,6 +14,7 @@ langchain-litellm>=0.3.0
 litellm>=1.50.0
 openai>=1.50.0
 httpx>=0.27.0
+langfuse>=3.0.0
 croniter>=2.0.0
 google-api-python-client>=2.130.0
 google-auth>=2.30.0