diff --git a/Dockerfile b/Dockerfile
index ee1af9fb..d019dec9 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -56,5 +56,9 @@ RUN mkdir -p /app/src/lib/cli && ln -sf /app/src/esm/cli/alto.js /app/src/lib/cl
 # Always use JSON logs in production
 ENV ALTO_JSON=true
 
+# Add labels for log collection
+LABEL logging="alloy"
+LABEL environment="production"
+
 # start app
 ENTRYPOINT ["pnpm", "start"]
diff --git a/docker-compose.observability.yml b/docker-compose.observability.yml
new file mode 100644
index 00000000..7d8a9834
--- /dev/null
+++ b/docker-compose.observability.yml
@@ -0,0 +1,100 @@
+version: "3.8"
+
+services:
+  # Prometheus - Metrics collection and storage
+  prometheus:
+    image: prom/prometheus:v2.48.1
+    container_name: alto-prometheus
+    command:
+      - "--config.file=/etc/prometheus/prometheus.yml"
+      - "--storage.tsdb.path=/prometheus"
+      - "--web.console.libraries=/usr/share/prometheus/console_libraries"
+      - "--web.console.templates=/usr/share/prometheus/consoles"
+    ports:
+      - "9090:9090"
+    volumes:
+      - ./observability/prometheus.yml:/etc/prometheus/prometheus.yml:ro
+      - prometheus-data:/prometheus
+    networks:
+      - alto-observability
+    restart: unless-stopped
+
+  # Grafana Tempo - Distributed tracing backend
+  tempo:
+    image: grafana/tempo:2.3.1
+    container_name: alto-tempo
+    command: ["-config.file=/etc/tempo.yml"]
+    ports:
+      - "3200:3200" # Tempo query frontend
+      - "4318:4318" # OTLP HTTP receiver
+      - "4317:4317" # OTLP gRPC receiver
+    volumes:
+      - ./observability/tempo.yml:/etc/tempo.yml:ro
+      - tempo-data:/var/tempo
+    networks:
+      - alto-observability
+    restart: unless-stopped
+
+  # Grafana Loki - Log aggregation
+  loki:
+    image: grafana/loki:2.9.3
+    container_name: alto-loki
+    command: ["-config.file=/etc/loki/local-config.yaml"]
+    ports:
+      - "3100:3100"
+    volumes:
+      - ./observability/loki.yml:/etc/loki/local-config.yaml:ro
+      - loki-data:/loki
+    networks:
+      - alto-observability
+    restart: unless-stopped
+
+  # Grafana Alloy - Log collector
+  alloy:
+    image: grafana/alloy:v1.0.0
+    container_name: alto-alloy
+    command: run --server.http.listen-addr=0.0.0.0:12345 --storage.path=/var/lib/alloy/data /etc/alloy/config.alloy
+    environment:
+      - ALTO_CLUSTER_NAME=${ALTO_CLUSTER_NAME:-alto-bundler}
+    ports:
+      - "12345:12345"
+    volumes:
+      - ./observability/alloy.alloy:/etc/alloy/config.alloy:ro
+      - /var/run/docker.sock:/var/run/docker.sock:ro
+      - alloy-data:/var/lib/alloy
+    networks:
+      - alto-observability
+    depends_on:
+      - loki
+    restart: unless-stopped
+
+  # Grafana - Unified observability dashboard
+  grafana:
+    image: grafana/grafana:10.2.3
+    container_name: alto-grafana
+    ports:
+      - "3003:3000"
+    environment:
+      # Default credentials: admin/admin (change in production)
+      - GF_SECURITY_ADMIN_PASSWORD=admin
+    volumes:
+      - ./observability/grafana-provisioning:/etc/grafana/provisioning:ro
+      - grafana-data:/var/lib/grafana
+    networks:
+      - alto-observability
+    depends_on:
+      - prometheus
+      - tempo
+      - loki
+    restart: unless-stopped
+
+networks:
+  alto-observability:
+    driver: bridge
+
+volumes:
+  prometheus-data:
+  tempo-data:
+  loki-data:
+  alloy-data:
+  grafana-data:
diff --git a/docker-compose.yml b/docker-compose.yml
new file mode 100644
index 00000000..b05dc40c
--- /dev/null
+++ b/docker-compose.yml
@@ -0,0 +1,26 @@
+version: "3.8"
+
+services:
+  # Alto ERC-4337 Bundler
+  ultra-relay-provider:
+    build:
+      context: .
+      dockerfile: Dockerfile
+    container_name: ultra-relay-provider
+    labels:
+      logging: "alloy"
+    networks:
+      - alto-observability
+    environment:
+      # Override with your configuration
+      - ALTO_RPC_URL=${ALTO_RPC_URL}
+      - ALTO_PORT=3000
+      - ALTO_ENABLE_TELEMETRY=true
+      - ALTO_OTLP_ENDPOINT=http://tempo:4318
+    ports:
+      - "3000:3000"
+    restart: unless-stopped
+
+networks:
+  alto-observability:
+    name: alto-observability
diff --git a/observability/alloy.alloy b/observability/alloy.alloy
new file mode 100644
index 00000000..c1ac6bb4
--- /dev/null
+++ b/observability/alloy.alloy
@@ -0,0 +1,63 @@
+// Grafana Alloy configuration for Docker log collection
+
+// Discover containers with the logging="alloy" label
+discovery.docker "containers" {
+  host = "unix:///var/run/docker.sock"
+
+  filter {
+    name   = "label"
+    values = ["logging=alloy"]
+  }
+}
+
+// Define relabel rules first
+loki.relabel "docker_labels" {
+  forward_to = [loki.write.loki.receiver]
+
+  rule {
+    source_labels = ["__meta_docker_container_name"]
+    target_label  = "container"
+    regex         = "/(.*)"
+    replacement   = "$1"
+  }
+
+  rule {
+    source_labels = ["__meta_docker_container_label_environment"]
+    target_label  = "environment"
+  }
+
+  rule {
+    source_labels = ["__meta_docker_container_label_com_docker_compose_service"]
+    target_label  = "service"
+  }
+
+  rule {
+    source_labels = ["__meta_docker_container_label_com_docker_compose_project"]
+    target_label  = "project"
+  }
+
+  rule {
+    source_labels = ["__meta_docker_container_id"]
+    target_label  = "container_id"
+    regex         = "(.{12}).*"
+    replacement   = "$1"
+  }
+}
+
+// Collect Docker logs
+loki.source.docker "docker_logs" {
+  host       = "unix:///var/run/docker.sock"
+  targets    = discovery.docker.containers.targets
+  forward_to = [loki.relabel.docker_labels.receiver]
+}
+
+loki.write "loki" {
+  endpoint {
+    url = "http://loki:3100/loki/api/v1/push"
+  }
+
+  external_labels = {
+    cluster = env("ALTO_CLUSTER_NAME"),
+    source  = "alloy",
+  }
+}
diff --git a/observability/grafana-provisioning/datasources/datasources.yml b/observability/grafana-provisioning/datasources/datasources.yml
new file mode 100644
index 00000000..cbb517f8
--- /dev/null
+++ b/observability/grafana-provisioning/datasources/datasources.yml
@@ -0,0 +1,47 @@
+apiVersion: 1
+
+datasources:
+  # Prometheus datasource for metrics
+  - name: Prometheus
+    type: prometheus
+    uid: prometheus
+    access: proxy
+    url: http://prometheus:9090
+    isDefault: true
+    editable: false
+    jsonData:
+      timeInterval: "15s"
+
+  # Tempo datasource for distributed tracing
+  - name: Tempo
+    type: tempo
+    uid: tempo
+    access: proxy
+    url: http://tempo:3200
+    editable: false
+    jsonData:
+      tracesToLogsV2:
+        datasourceUid: "loki"
+        spanStartTimeShift: "-1m"
+        spanEndTimeShift: "1m"
+        filterByTraceID: true
+        filterBySpanID: false
+        tags: ["trace_id"]
+      serviceMap:
+        datasourceUid: "prometheus"
+      nodeGraph:
+        enabled: true
+
+  # Loki datasource for logs
+  - name: Loki
+    type: loki
+    uid: loki
+    access: proxy
+    url: http://loki:3100
+    editable: false
+    jsonData:
+      derivedFields:
+        - datasourceUid: "tempo"
+          matcherRegex: "trace_id=(\\w+)"
+          name: "TraceID"
+          url: "$${__value.raw}"
diff --git a/observability/loki.yml b/observability/loki.yml
new file mode 100644
index 00000000..0708e75d
--- /dev/null
+++ b/observability/loki.yml
@@ -0,0 +1,39 @@
+auth_enabled: false
+
+server:
+  http_listen_port: 3100
+
+common:
+  path_prefix: /loki
+  storage:
+    filesystem:
+      chunks_directory: /loki/chunks
+      rules_directory: /loki/rules
+  replication_factor: 1
+  ring:
+    kvstore:
+      store: inmemory
+
+schema_config:
+  configs:
+    - from: 2020-10-24
+      store: boltdb-shipper
+      object_store: filesystem
+      schema: v11
+      index:
+        prefix: index_
+        period: 24h
+
+limits_config:
+  enforce_metric_name: false
+  reject_old_samples: true
+  reject_old_samples_max_age: 168h
+  max_cache_freshness_per_query: 10m
+  split_queries_by_interval: 15m
+
+query_range:
+  align_queries_with_step: true
+  cache_results: true
+
+ruler:
+  alertmanager_url: http://localhost:9093
diff --git a/observability/prometheus.yml b/observability/prometheus.yml
new file mode 100644
index 00000000..904a0a23
--- /dev/null
+++ b/observability/prometheus.yml
@@ -0,0 +1,18 @@
+global:
+  scrape_interval: 15s
+  evaluation_interval: 15s
+  external_labels:
+    cluster: "alto-bundler"
+    environment: "local"
+
+scrape_configs:
+  # Alto Bundler metrics
+  # Using service name (ultra-relay-provider) for cross-platform Docker compatibility
+  # This works on Linux, macOS, and Windows when bundler runs in the same Docker network
+  - job_name: "alto-bundler"
+    static_configs:
+      - targets: ["ultra-relay-provider:3000"]
+        labels:
+          service: "alto-bundler"
+    metrics_path: "/metrics"
+    scrape_interval: 10s
diff --git a/observability/tempo.yml b/observability/tempo.yml
new file mode 100644
index 00000000..7885cea0
--- /dev/null
+++ b/observability/tempo.yml
@@ -0,0 +1,34 @@
+server:
+  http_listen_port: 3200
+
+distributor:
+  receivers:
+    otlp:
+      protocols:
+        http:
+          endpoint: 0.0.0.0:4318
+        grpc:
+          endpoint: 0.0.0.0:4317
+
+ingester:
+  trace_idle_period: 10s
+  max_block_bytes: 1_000_000
+  max_block_duration: 5m
+
+compactor:
+  compaction:
+    compaction_window: 1h
+    max_block_bytes: 100_000_000
+    block_retention: 1h
+    compacted_block_retention: 10m
+
+storage:
+  trace:
+    backend: local
+    local:
+      path: /var/tempo/traces
+    wal:
+      path: /var/tempo/wal
+    pool:
+      max_workers: 100
+      queue_depth: 10000
diff --git a/package.json b/package.json
index 356245a0..3491b34e 100644
--- a/package.json
+++ b/package.json
@@ -22,7 +22,7 @@
         "build:contracts:EPSimulations07": "forge build --quiet --root contracts --evm-version paris --out ../src/contracts/ src/v07/EntryPointSimulations.sol",
         "build:contracts:EPSimulations08": "forge build --quiet --root contracts --evm-version cancun --out ../src/contracts/ src/v08/EntryPointSimulations.sol",
         "build:contracts": "pnpm run build:contracts:PimlicoSimulations && pnpm run build:contracts:EPFilterOpsOverride06 && pnpm run build:contracts:EPFilterOpsOverride07 && pnpm run build:contracts:EPFilterOpsOverride08 && pnpm run build:contracts:EPGasEstimationOverride06 && pnpm run build:contracts:EPSimulations07 && pnpm run build:contracts:EPSimulations08",
-        "start": "node src/esm/cli/alto.js run",
+        "start": "node --require ./src/esm/cli/instrumentation.js src/esm/cli/alto.js run",
         "dev": "nodemon --ext ts,js,json --watch src --exec DOTENV_CONFIG_PATH=$(pwd)/.env tsx --tsconfig src/tsconfig.json src/cli/alto.ts run",
         "test": "pnpm --filter e2e run test",
         "test:ci": "pnpm --filter e2e run test:ci",
diff --git a/src/cli/config/bundler.ts b/src/cli/config/bundler.ts
index a0023eec..fef1950f 100644
--- a/src/cli/config/bundler.ts
+++ b/src/cli/config/bundler.ts
@@ -340,9 +340,6 @@ export type IGasEstimationArgsInput = z.input<typeof gasEstimationArgsSchema>
 export type IMempoolArgs = z.infer<typeof mempoolArgsSchema>
 export type IMempoolArgsInput = z.input<typeof mempoolArgsSchema>
 
-export type IOptions = z.infer<typeof optionArgsSchema>
-export type IOptionsInput = z.input<typeof optionArgsSchema>
-
 export type IRedisArgs = z.infer<typeof redisArgsSchema>
 export type IRedisArgsInput = z.input<typeof redisArgsSchema>
 
@@ -358,3 +355,6 @@ export const optionArgsSchema = z.object({
     ...mempoolArgsSchema.shape,
     ...redisArgsSchema.shape
 })
+
+export type IOptions = z.infer<typeof optionArgsSchema>
+export type IOptionsInput = z.input<typeof optionArgsSchema>
diff --git a/src/cli/instrumentation.ts b/src/cli/instrumentation.ts
index a9025ca9..dcf1336b 100644
--- a/src/cli/instrumentation.ts
+++ b/src/cli/instrumentation.ts
@@ -51,23 +51,30 @@ class CustomSampler implements Sampler {
     }
 }
 
-const sdk = new NodeSDK({
-    traceExporter: new OTLPTraceExporter(),
-    instrumentations: [
-        new HttpInstrumentation({
-            requireParentforOutgoingSpans: true
-        }),
-        new UndiciInstrumentation({
-            requireParentforSpans: true
+if (process.env.ALTO_ENABLE_TELEMETRY === "true") {
+    const otlpEndpoint =
+        process.env.ALTO_OTLP_ENDPOINT || "http://localhost:4318/v1/traces"
+
+    const sdk = new NodeSDK({
+        traceExporter: new OTLPTraceExporter({
+            url: otlpEndpoint
         }),
-        new FastifyInstrumentation(),
-        new PinoInstrumentation(),
-        new ViemInstrumentation({
-            captureOperationResult: true
-        })
-    ],
-    sampler: new ParentBasedSampler({ root: new CustomSampler() })
-})
+        instrumentations: [
+            new HttpInstrumentation({
+                requireParentforOutgoingSpans: true
+            }),
+            new UndiciInstrumentation({
+                requireParentforSpans: true
+            }),
+            new FastifyInstrumentation(),
+            new PinoInstrumentation(),
+            new ViemInstrumentation({
+                captureOperationResult: true
+            })
+        ],
+        sampler: new ParentBasedSampler({ root: new CustomSampler() })
+    })
 
-sdk.start()
-await waitForAllMessagesAcknowledged()
+    sdk.start()
+    await waitForAllMessagesAcknowledged()
+}
diff --git a/src/executor/bundleManager.ts b/src/executor/bundleManager.ts
index cd35bf7f..7525c504 100644
--- a/src/executor/bundleManager.ts
+++ b/src/executor/bundleManager.ts
@@ -7,7 +7,12 @@ import type {
 } from "@alto/mempool"
 import type { ReceiptCache } from "@alto/receiptCache"
 import { createReceiptCache } from "@alto/receiptCache"
-import type { HexData32, SubmittedBundleInfo, UserOpInfo } from "@alto/types"
+import type {
+    HexData32,
+    RejectedUserOp,
+    SubmittedBundleInfo,
+    UserOpInfo
+} from "@alto/types"
 import type { UserOperationReceipt } from "@alto/types"
 import type { Logger, Metrics } from "@alto/utils"
 import { parseUserOpReceipt } from "@alto/utils"
@@ -194,7 +199,7 @@ export class BundleManager {
 
             // Fire and forget
             // Check if any rejected userOps were frontruns, if not mark as reverted onchain.
-            rejectedUserOps.map(async (userOpInfo) => {
+            rejectedUserOps.map(async (userOpInfo: RejectedUserOp) => {
                 const status = await this.getUserOpStatus({
                     userOpInfo,
                     entryPoint: submittedBundle.bundle.entryPoint,
diff --git a/src/rpc/methods/eth_sendUserOperation.ts b/src/rpc/methods/eth_sendUserOperation.ts
index 9d8bea63..920e5eb8 100644
--- a/src/rpc/methods/eth_sendUserOperation.ts
+++ b/src/rpc/methods/eth_sendUserOperation.ts
@@ -222,7 +222,6 @@ export const ethSendUserOperationHandler = createMethodHandler({
     method: "eth_sendUserOperation",
     schema: sendUserOperationSchema,
     handler: async ({ rpcHandler, params, apiVersion }) => {
-        console.log("=== eth_sendUserOperation called ===")
         const [userOp, entryPoint] = params
 
         let status: "added" | "queued" | "rejected" = "rejected"
diff --git a/src/rpc/validation/UnsafeValidator.ts b/src/rpc/validation/UnsafeValidator.ts
index c9e6e6b3..20387d1f 100644
--- a/src/rpc/validation/UnsafeValidator.ts
+++ b/src/rpc/validation/UnsafeValidator.ts
@@ -617,7 +617,6 @@ export class UnsafeValidator implements InterfaceValidator {
 
             return validationResult
         } catch (e) {
-            // console.log(e)
             this.metrics.userOperationsValidationFailure.inc()
             throw e
         }
diff --git a/src/rpc/validation/tracer.ts b/src/rpc/validation/tracer.ts
index 0703d95f..b282ddb5 100644
--- a/src/rpc/validation/tracer.ts
+++ b/src/rpc/validation/tracer.ts
@@ -38,20 +38,10 @@ export async function debug_traceCall(
         })
         .catch((e: unknown) => {
             if (e instanceof Error) {
-                // console.log("ex=", e.message)
-                // console.log(
-                //     "tracer=",
-                //     traceOptions.tracer
-                //         ?.toString()
-                //         .split("\n")
-                //         .map((line, index) => `${index + 1}: ${line}`)
-                //         .join("\n")
-                // )
                 throw e
             }
             sentry.captureException(e)
         })
-    // console.log("ret=", ret)
     return ret
 }
 
diff --git a/src/utils/toViemStateOverrides.ts b/src/utils/toViemStateOverrides.ts
index 29f930fd..8d344e3f 100644
--- a/src/utils/toViemStateOverrides.ts
+++ b/src/utils/toViemStateOverrides.ts
@@ -54,7 +54,7 @@ export function toViemStateOverrides(
 
             result.push(entry)
         } catch (_e) {
-            console.warn(`Invalid address in state override: ${address}`)
+            // Invalid address in state override - silently skip
         }
     }
 
diff --git a/test-observability.sh b/test-observability.sh
new file mode 100755
index 00000000..aa1a9c80
--- /dev/null
+++ b/test-observability.sh
@@ -0,0 +1,338 @@
+#!/bin/bash
+set -e
+
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+BLUE='\033[0;34m'
+NC='\033[0m' # No Color
+
+echo -e "${BLUE}━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━${NC}"
+echo -e "${BLUE}  Alto Observability Stack - Automated Validation${NC}"
+echo -e "${BLUE}━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━${NC}\n"
+
+FAILED=0
+
+# Cleanup function
+cleanup() {
+    echo -e "\n${YELLOW}🧹 Cleaning up...${NC}"
+    docker-compose -f docker-compose.observability.yml down -v > /dev/null 2>&1 || true
+    if [ ! -z "$ALTO_PID" ]; then
+        kill $ALTO_PID > /dev/null 2>&1 || true
+    fi
+    if [ ! -z "$ANVIL_PID" ]; then
+        kill $ANVIL_PID > /dev/null 2>&1 || true
+    fi
+}
+
+trap cleanup EXIT
+
+# Check if jq is available
+if ! command -v jq &> /dev/null; then
+    echo -e "${RED}✗${NC}  jq is required but not installed"
+    echo -e "${YELLOW}   Install jq:${NC}"
+    echo -e "${YELLOW}   - macOS: brew install jq${NC}"
+    echo -e "${YELLOW}   - Ubuntu/Debian: apt-get install jq${NC}"
+    echo -e "${YELLOW}   - Fedora: dnf install jq${NC}"
+    echo -e "${YELLOW}   - Or visit: https://jqlang.github.io/jq/download/${NC}"
+    exit 1
+fi
+
+# Check if Anvil is available
+if ! command -v anvil &> /dev/null; then
+    echo -e "${YELLOW}⚠${NC}  Anvil not found. Install Foundry: https://book.getfoundry.sh/getting-started/installation"
+    echo -e "${YELLOW}   Falling back to localhost:8545 (may not work)${NC}\n"
+    USE_ANVIL=false
+else
+    USE_ANVIL=true
+fi
+
+# Check if RPC URL is set
+if [ -z "$ALTO_RPC_URL" ]; then
+    echo -e "${YELLOW}⚠${NC}  ALTO_RPC_URL not set, using default localhost"
+    ALTO_RPC_URL="http://localhost:8545"
+fi
+
+# Generate test private keys if not set
+if [ -z "$ALTO_EXECUTOR_PRIVATE_KEYS" ]; then
+    echo -e "${YELLOW}⚠${NC}  ALTO_EXECUTOR_PRIVATE_KEYS not set, using test key"
+    ALTO_EXECUTOR_PRIVATE_KEYS="0xac0974bec39a17e36ba4a6b4d238ff944bacb478cbed5efcae784d7bf4f2ff80"
+fi
+
+if [ -z "$ALTO_UTILITY_PRIVATE_KEY" ]; then
+    echo -e "${YELLOW}⚠${NC}  ALTO_UTILITY_PRIVATE_KEY not set, using test key"
+    # Use second Anvil test key
+    ALTO_UTILITY_PRIVATE_KEY="0x59c6995e998f97a5a0044966f0945389dc9e86dae88c7a8412f4603b6b78690d"
+fi
+
+# Set default entrypoint if not set
+if [ -z "$ALTO_ENTRYPOINTS" ]; then
+    echo -e "${YELLOW}⚠${NC}  ALTO_ENTRYPOINTS not set, using v0.7 default"
+    ALTO_ENTRYPOINTS="0x0000000071727De22E5E9d8BAf0edAc6f37da032"
+fi
+
+# Step 1: Build Alto
+echo -e "${BLUE}[1/9]${NC} Building Alto..."
+if pnpm build > /tmp/alto-build.log 2>&1; then
+    echo -e "${GREEN}✓${NC} Build successful"
+else
+    echo -e "${RED}✗${NC} Build failed"
+    cat /tmp/alto-build.log
+    exit 1
+fi
+
+# Step 2: Start Observability Stack
+echo -e "\n${BLUE}[2/9]${NC} Starting observability stack..."
+docker-compose -f docker-compose.observability.yml up -d
+
+# Step 3: Wait for services to be healthy
+echo -e "\n${BLUE}[3/9]${NC} Waiting for services to be ready..."
+
+wait_for_service() {
+    local name=$1
+    local url=$2
+    local max_attempts=30
+    local attempt=1
+
+    while [ $attempt -le $max_attempts ]; do
+        if curl -sf "$url" > /dev/null 2>&1; then
+            echo -e "${GREEN}✓${NC} $name ready"
+            return 0
+        fi
+        sleep 2
+        attempt=$((attempt + 1))
+    done
+
+    echo -e "${RED}✗${NC} $name failed to start"
+    FAILED=$((FAILED + 1))
+    return 1
+}
+
+wait_for_service "Prometheus" "http://localhost:9090/-/healthy"
+wait_for_service "Tempo" "http://localhost:3200/ready"
+wait_for_service "Loki" "http://localhost:3100/ready"
+wait_for_service "Alloy" "http://localhost:12345/-/ready"
+wait_for_service "Grafana" "http://localhost:3003/api/health"
+
+# Step 4: Start Anvil (local Ethereum node)
+echo -e "\n${BLUE}[4/9]${NC} Starting local Ethereum node..."
+
+if [ "$USE_ANVIL" = true ]; then
+    anvil --host 0.0.0.0 --port 8545 > /tmp/anvil.log 2>&1 &
+    ANVIL_PID=$!
+
+    # Wait for Anvil to be ready
+    sleep 3
+
+    if kill -0 $ANVIL_PID 2>/dev/null; then
+        echo -e "${GREEN}✓${NC} Anvil started (PID: $ANVIL_PID)"
+        ALTO_RPC_URL="http://localhost:8545"
+    else
+        echo -e "${RED}✗${NC} Anvil failed to start"
+        cat /tmp/anvil.log
+        ANVIL_PID=""
+    fi
+else
+    echo -e "${YELLOW}⚠${NC}  Skipping (Anvil not installed)"
+fi
+
+# Step 5: Start Alto with telemetry
+echo -e "\n${BLUE}[5/9]${NC} Starting Alto with telemetry enabled..."
+
+ALTO_ENABLE_TELEMETRY=true \
+ALTO_OTLP_ENDPOINT=http://localhost:4318/v1/traces \
+ALTO_RPC_URL="$ALTO_RPC_URL" \
+ALTO_ENTRYPOINTS="$ALTO_ENTRYPOINTS" \
+ALTO_EXECUTOR_PRIVATE_KEYS="$ALTO_EXECUTOR_PRIVATE_KEYS" \
+ALTO_UTILITY_PRIVATE_KEY="$ALTO_UTILITY_PRIVATE_KEY" \
+ALTO_PORT=3000 \
+ALTO_JSON=true \
+ALTO_SAFE_MODE=false \
+pnpm start > /tmp/alto.log 2>&1 &
+
+ALTO_PID=$!
+
+# Wait for Alto to start
+sleep 5
+
+if kill -0 $ALTO_PID 2>/dev/null; then
+    echo -e "${GREEN}✓${NC} Alto started (PID: $ALTO_PID)"
+
+    # Wait for Alto to be responsive
+    if wait_for_service "Alto" "http://localhost:3000/metrics"; then
+        ALTO_RUNNING=true
+    else
+        echo -e "${YELLOW}⚠${NC} Alto not responding (likely RPC connection issue)"
+        echo -e "${YELLOW}   Check /tmp/alto.log for details${NC}"
+        ALTO_RUNNING=false
+        kill $ALTO_PID 2>/dev/null || true
+        ALTO_PID=""
+    fi
+else
+    echo -e "${YELLOW}⚠${NC}  Alto failed to start (likely RPC connection issue)"
+    echo -e "${YELLOW}   Continuing with observability stack validation...${NC}"
+    ALTO_RUNNING=false
+    ALTO_PID=""
+fi
+
+# Step 6: Generate test traffic
+echo -e "\n${BLUE}[6/10]${NC} Generating test traffic..."
+
+if [ "$ALTO_RUNNING" = true ]; then
+    for i in {1..5}; do
+        curl -sf -X POST http://localhost:3000 \
+            -H "Content-Type: application/json" \
+            -d '{
+                "jsonrpc": "2.0",
+                "id": 1,
+                "method": "eth_supportedEntryPoints",
+                "params": []
+            }' > /dev/null
+        sleep 1
+    done
+
+    echo -e "${GREEN}✓${NC} Generated 5 test requests"
+
+    # Give telemetry time to propagate
+    echo -e "${YELLOW}⏳${NC} Waiting 10s for telemetry to propagate..."
+    sleep 10
+else
+    echo -e "${YELLOW}⚠${NC}  Skipping (Alto not running)"
+fi
+
+# Step 7: Validate Metrics
+echo -e "\n${BLUE}[7/10]${NC} Validating metrics collection..."
+
+if [ "$ALTO_RUNNING" = true ]; then
+    METRICS=$(curl -sf http://localhost:3000/metrics)
+
+    if echo "$METRICS" | grep -q "process_cpu_seconds_total"; then
+        echo -e "${GREEN}✓${NC} Alto exposing metrics"
+    else
+        echo -e "${YELLOW}⚠${NC} Alto not exposing metrics"
+    fi
+
+    PROM_TARGETS=$(curl -sf http://localhost:9090/api/v1/targets | jq -r '.data.activeTargets[] | select(.labels.job == "alto-bundler") | .health')
+
+    if [ "$PROM_TARGETS" = "up" ]; then
+        echo -e "${GREEN}✓${NC} Prometheus scraping Alto metrics"
+    else
+        echo -e "${YELLOW}⚠${NC}  Prometheus not scraping Alto (Alto not running)"
+    fi
+else
+    echo -e "${YELLOW}⚠${NC}  Skipping (Alto not running)"
+    echo -e "${BLUE}ℹ${NC}  Prometheus ready at http://localhost:9090"
+fi
+
+# Step 8: Validate Logs
+echo -e "\n${BLUE}[8/10]${NC} Validating logs collection..."
+
+if [ "$ALTO_RUNNING" = true ]; then
+    LOKI_QUERY=$(curl -sf -G "http://localhost:3100/loki/api/v1/query" \
+        --data-urlencode 'query={logging="alloy"}' \
+        --data-urlencode "time=$(date +%s)000000000" | jq -r '.data.result | length')
+
+    if [ "$LOKI_QUERY" -gt 0 ]; then
+        echo -e "${GREEN}✓${NC} Loki collecting logs ($LOKI_QUERY streams found)"
+    else
+        echo -e "${YELLOW}⚠${NC}  Loki not collecting logs yet (Alto just started)"
+    fi
+else
+    echo -e "${YELLOW}⚠${NC}  Skipping (Alto not running)"
+    echo -e "${BLUE}ℹ${NC}  Loki ready at http://localhost:3100"
+fi
+
+# Step 9: Validate Traces
+echo -e "\n${BLUE}[9/10]${NC} Validating traces collection..."
+
+if [ "$ALTO_RUNNING" = true ]; then
+    TEMPO_TRACES=$(curl -sf "http://localhost:3200/api/search?limit=100" | jq -r '.traces | length')
+
+    if [ "$TEMPO_TRACES" -gt 0 ]; then
+        echo -e "${GREEN}✓${NC} Tempo collecting traces ($TEMPO_TRACES traces found)"
+
+        # Validate trace details
+        TRACE_ID=$(curl -sf "http://localhost:3200/api/search?limit=1" | jq -r '.traces[0].traceID')
+
+        if [ ! -z "$TRACE_ID" ] && [ "$TRACE_ID" != "null" ]; then
+            TRACE_DETAILS=$(curl -sf "http://localhost:3200/api/traces/$TRACE_ID")
+
+            if echo "$TRACE_DETAILS" | jq -e '.batches[0].resource.attributes[] | select(.key == "service.name" and .value.stringValue == "alto")' > /dev/null 2>&1; then
+                echo -e "${GREEN}✓${NC} Traces contain Alto service spans"
+            fi
+
+            SPAN_COUNT=$(echo "$TRACE_DETAILS" | jq -r '.batches[0].scopeSpans[0].spans | length' 2>/dev/null || echo "0")
+            if [ "$SPAN_COUNT" -gt 0 ]; then
+                echo -e "${GREEN}✓${NC} Trace contains $SPAN_COUNT spans"
+            fi
+        fi
+    else
+        echo -e "${YELLOW}⚠${NC}  Tempo not collecting traces yet (Alto just started)"
+    fi
+else
+    echo -e "${YELLOW}⚠${NC}  Skipping (Alto not running)"
+    echo -e "${BLUE}ℹ${NC}  Tempo ready at http://localhost:3200"
+fi
+
+# Step 10: Validate Grafana Datasources
+echo -e "\n${BLUE}[10/10]${NC} Validating Grafana datasources..."
+
+DATASOURCES=$(curl -sf -u admin:admin http://localhost:3003/api/datasources | jq -r '.[].name')
+
+check_datasource() {
+    local name=$1
+    if echo "$DATASOURCES" | grep -q "$name"; then
+        echo -e "${GREEN}✓${NC} $name datasource configured"
+    else
+        echo -e "${RED}✗${NC} $name datasource missing"
+        FAILED=$((FAILED + 1))
+    fi
+}
+
+check_datasource "Prometheus"
+check_datasource "Tempo"
+check_datasource "Loki"
+
+# Final Report
+echo -e "\n${BLUE}━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━${NC}"
+echo -e "${BLUE}  Validation Results${NC}"
+echo -e "${BLUE}━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━${NC}\n"
+
+if [ $FAILED -eq 0 ]; then
+    echo -e "${GREEN}✅ Observability stack validation complete!${NC}\n"
+
+    if [ "$ALTO_RUNNING" = true ]; then
+        echo -e "${GREEN}✓ Alto running with telemetry enabled${NC}"
+    else
+        echo -e "${YELLOW}⚠ Alto not running (requires valid RPC endpoint)${NC}"
+        echo -e "  To test with Alto, set ALTO_RPC_URL and re-run\n"
+    fi
+
+    echo -e "Access the observability stack:"
+    echo -e "  • Grafana:    ${BLUE}http://localhost:3003${NC} (admin/admin)"
+    echo -e "  • Prometheus: ${BLUE}http://localhost:9090${NC}"
+    echo -e "  • Tempo:      ${BLUE}http://localhost:3200${NC}"
+    echo -e "  • Loki:       ${BLUE}http://localhost:3100${NC}"
+
+    if [ "$ALTO_RUNNING" = true ]; then
+        echo -e "  • Alto:       ${BLUE}http://localhost:3000${NC}"
+    fi
+
+    echo -e "\n${YELLOW}Stack will remain running. Press Ctrl+C to stop and cleanup.${NC}\n"
+
+    # Keep running if Alto is running
+    if [ ! -z "$ALTO_PID" ]; then
+        wait $ALTO_PID
+    else
+        # Just wait indefinitely if Alto isn't running
+        echo "Press Ctrl+C to stop..."
+        while true; do sleep 1; done
+    fi
+    exit 0
+else
+    echo -e "${RED}❌ $FAILED check(s) failed${NC}\n"
+    echo -e "${YELLOW}Logs available at:${NC}"
+    echo -e "  • Alto:  /tmp/alto.log"
+    echo -e "  • Build: /tmp/alto-build.log\n"
+    exit 1
+fi