diff --git a/.gitignore b/.gitignore
index b8eecf8..fe29988 100644
--- a/.gitignore
+++ b/.gitignore
@@ -21,3 +21,7 @@ target
 #  and can be added to the global gitignore or merged into this file.  For a more nuclear
 #  option (not recommended) you can uncomment the following to ignore the entire idea folder.
 #.idea/
+
+# Session logs directory
+logs/
+*.json
diff --git a/README.md b/README.md
index 7280843..57b326b 100644
--- a/README.md
+++ b/README.md
@@ -107,6 +107,15 @@ cargo run
 g3 "implement a function to calculate fibonacci numbers"
 ```
 
+## Session Logs
+
+G3 automatically saves session logs for each interaction in the `logs/` directory. These logs contain:
+- Complete conversation history
+- Token usage statistics
+- Timestamps and session status
+
+The `logs/` directory is created automatically on first use and is excluded from version control.
+
 ## License
 
 MIT License - see LICENSE file for details
diff --git a/crates/g3-core/src/lib.rs b/crates/g3-core/src/lib.rs
index 0bdc57e..17142d8 100644
--- a/crates/g3-core/src/lib.rs
+++ b/crates/g3-core/src/lib.rs
@@ -789,11 +789,20 @@ The tool will execute immediately and you'll receive the result (success or erro
             .unwrap_or_default()
             .as_secs();
 
+        // Create logs directory if it doesn't exist
+        let logs_dir = std::path::Path::new("logs");
+        if !logs_dir.exists() {
+            if let Err(e) = std::fs::create_dir_all(logs_dir) {
+                error!("Failed to create logs directory: {}", e);
+                return;
+            }
+        }
+
         // Use session-based filename if we have a session ID, otherwise fall back to timestamp
         let filename = if let Some(ref session_id) = self.session_id {
-            format!("g3_session_{}.json", session_id)
+            format!("logs/g3_session_{}.json", session_id)
         } else {
-            format!("g3_context_{}.json", timestamp)
+            format!("logs/g3_context_{}.json", timestamp)
         };
 
         let context_data = serde_json::json!({