diff --git a/schemas/dab.draft.schema.json b/schemas/dab.draft.schema.json
index 692b82b642..61fc4c19b9 100644
--- a/schemas/dab.draft.schema.json
+++ b/schemas/dab.draft.schema.json
@@ -410,6 +410,40 @@
               },
               "required": ["endpoint"]
             },
+            "file": {
+              "type": "object",
+              "additionalProperties": false,
+              "properties": {
+                "enabled": {
+                  "type": "boolean",
+                  "description": "Enable/disable file sink telemetry logging.",
+                  "default": false
+                },
+                "path": {
+                  "type": "string",
+                  "description": "File path for telemetry logs.",
+                  "default": "/logs/dab-log.txt"
+                },
+                "rolling-interval": {
+                  "type": "string",
+                  "description": "Rolling interval for log files.",
+                  "default": "day",
+                  "enum": ["hour", "day", "week"]
+                },
+                "retained-file-count-limit": {
+                  "type": "integer",
+                  "description": "Maximum number of retained log files.",
+                  "default": 1,
+                  "minimum": 1
+                },
+                "file-size-limit-bytes": {
+                  "type": "integer",
+                  "description": "Maximum file size in bytes before rolling.",
+                  "default": 1048576,
+                  "minimum": 1
+                }
+              }
+            },
             "log-level": {
               "type": "object",
               "description": "Global configuration of log level, defines logging severity levels for specific classes, when 'null' it will set logging level based on 'host: mode' property",
diff --git a/src/Cli/Commands/AddTelemetryOptions.cs b/src/Cli/Commands/AddTelemetryOptions.cs
index 8ec9313d14..f906db7429 100644
--- a/src/Cli/Commands/AddTelemetryOptions.cs
+++ b/src/Cli/Commands/AddTelemetryOptions.cs
@@ -27,6 +27,11 @@ public AddTelemetryOptions(
             string? openTelemetryHeaders = null,
             OtlpExportProtocol? openTelemetryExportProtocol = null,
             string? openTelemetryServiceName = null,
+            CliBool? fileSinkEnabled = null,
+            string? fileSinkPath = null,
+            RollingIntervalMode? fileSinkRollingInterval = null,
+            int? fileSinkRetainedFileCountLimit = null,
+            int? fileSinkFileSizeLimitBytes = null,
             string? config = null) : base(config)
         {
             AppInsightsConnString = appInsightsConnString;
@@ -36,6 +41,11 @@ public AddTelemetryOptions(
             OpenTelemetryHeaders = openTelemetryHeaders;
             OpenTelemetryExportProtocol = openTelemetryExportProtocol;
             OpenTelemetryServiceName = openTelemetryServiceName;
+            FileSinkEnabled = fileSinkEnabled;
+            FileSinkPath = fileSinkPath;
+            FileSinkRollingInterval = fileSinkRollingInterval;
+            FileSinkRetainedFileCountLimit = fileSinkRetainedFileCountLimit;
+            FileSinkFileSizeLimitBytes = fileSinkFileSizeLimitBytes;
         }
 
         // Connection string for the Application Insights resource to which telemetry data should be sent.
@@ -68,6 +78,26 @@ public AddTelemetryOptions(
         [Option("otel-service-name", Default = "dab", Required = false, HelpText = "(Default: dab) Headers for Open Telemetry for telemetry data")]
         public string? OpenTelemetryServiceName { get; }
 
+        // To specify whether File Sink telemetry should be enabled. This flag is optional and default value is false.
+        [Option("file-sink-enabled", Default = CliBool.False, Required = false, HelpText = "Enable/disable file sink telemetry logging. Default: false (boolean).")]
+        public CliBool? FileSinkEnabled { get; }
+
+        // Path for the File Sink resource to which telemetry data should be sent. This flag is optional and default value is '/logs/dab-log.txt'.
+        [Option("file-sink-path", Default = "/logs/dab-log.txt", Required = false, HelpText = "File path for telemetry logs. Default: '/logs/dab-log.txt' (string).")]
+        public string? FileSinkPath { get; }
+
+        // Rolling Interval for the File Sink resource to which telemetry data should be sent. This flag is optional and default value is new interval per Day.
+        [Option("file-sink-rolling-interval", Default = RollingIntervalMode.Day, Required = false, HelpText = "Rolling interval for log files. Default: Day. Allowed values: Hour, Day, Week.")]
+        public RollingIntervalMode? FileSinkRollingInterval { get; }
+
+        // Retained File Count Limit for the File Sink resource to which telemetry data should be sent. This flag is optional and default value is 1.
+        [Option("file-sink-retained-file-count-limit", Default = 1, Required = false, HelpText = "Maximum number of retained log files. Default: 1 (integer, minimum: 1).")]
+        public int? FileSinkRetainedFileCountLimit { get; }
+
+        // File Size Limit Bytes for the File Sink resource to which telemetry data should be sent. This flag is optional and default value is 1048576.
+        [Option("file-sink-file-size-limit-bytes", Default = 1048576, Required = false, HelpText = "Maximum file size in bytes before rolling. Default: 1048576 (integer, minimum: 1).")]
+        public int? FileSinkFileSizeLimitBytes { get; }
+
         public int Handler(ILogger logger, FileSystemRuntimeConfigLoader loader, IFileSystem fileSystem)
         {
             logger.LogInformation("{productName} {version}", PRODUCT_NAME, ProductInfo.GetProductVersion());
diff --git a/src/Cli/ConfigGenerator.cs b/src/Cli/ConfigGenerator.cs
index 7655b84cee..3b6aba16e3 100644
--- a/src/Cli/ConfigGenerator.cs
+++ b/src/Cli/ConfigGenerator.cs
@@ -1969,22 +1969,21 @@ public static bool TryAddTelemetry(AddTelemetryOptions options, FileSystemRuntim
                 ServiceName: options.OpenTelemetryServiceName
             );
 
+            FileSinkOptions fileSinkOptions = new(
+                Enabled: options.FileSinkEnabled is CliBool.True ? true : false,
+                Path: options.FileSinkPath,
+                RollingInterval: options.FileSinkRollingInterval,
+                RetainedFileCountLimit: options.FileSinkRetainedFileCountLimit,
+                FileSizeLimitBytes: options.FileSinkFileSizeLimitBytes
+            );
+
             runtimeConfig = runtimeConfig with
             {
                 Runtime = runtimeConfig.Runtime with
                 {
                     Telemetry = runtimeConfig.Runtime.Telemetry is null
-                        ? new TelemetryOptions(ApplicationInsights: applicationInsightsOptions, OpenTelemetry: openTelemetryOptions)
-                        : runtimeConfig.Runtime.Telemetry with { ApplicationInsights = applicationInsightsOptions, OpenTelemetry = openTelemetryOptions }
-                }
-            };
-            runtimeConfig = runtimeConfig with
-            {
-                Runtime = runtimeConfig.Runtime with
-                {
-                    Telemetry = runtimeConfig.Runtime.Telemetry is null
-                        ? new TelemetryOptions(ApplicationInsights: applicationInsightsOptions)
-                        : runtimeConfig.Runtime.Telemetry with { ApplicationInsights = applicationInsightsOptions }
+                        ? new TelemetryOptions(ApplicationInsights: applicationInsightsOptions, OpenTelemetry: openTelemetryOptions, File: fileSinkOptions)
+                        : runtimeConfig.Runtime.Telemetry with { ApplicationInsights = applicationInsightsOptions, OpenTelemetry = openTelemetryOptions, File = fileSinkOptions }
                 }
             };
 
diff --git a/src/Config/ObjectModel/FileSinkOptions.cs b/src/Config/ObjectModel/FileSinkOptions.cs
new file mode 100644
index 0000000000..d01ba3f1ce
--- /dev/null
+++ b/src/Config/ObjectModel/FileSinkOptions.cs
@@ -0,0 +1,25 @@
+// Copyright (c) Microsoft Corporation.
+// Licensed under the MIT License.
+
+namespace Azure.DataApiBuilder.Config.ObjectModel;
+
+/// <summary>
+/// Represents the options for configuring file sink telemetry.
+/// </summary>
+public record FileSinkOptions(
+    bool Enabled = false,
+    string? Path = "/logs/dab-log.txt",
+    RollingIntervalMode? RollingInterval = RollingIntervalMode.Day,
+    int? RetainedFileCountLimit = 1,
+    int? FileSizeLimitBytes = 1048576)
+{
+    public bool Enabled { get; init; } = Enabled;
+
+    public string? Path { get; init; } = Path;
+
+    public RollingIntervalMode? RollingInterval { get; init; } = RollingInterval;
+
+    public int? RetainedFileCountLimit { get; init; } = RetainedFileCountLimit;
+
+    public int? FileSizeLimitBytes { get; init; } = FileSizeLimitBytes;
+}
diff --git a/src/Config/ObjectModel/FileSinkRollingIntervalMode.cs b/src/Config/ObjectModel/FileSinkRollingIntervalMode.cs
new file mode 100644
index 0000000000..a807a9b0aa
--- /dev/null
+++ b/src/Config/ObjectModel/FileSinkRollingIntervalMode.cs
@@ -0,0 +1,18 @@
+// Copyright (c) Microsoft Corporation.
+// Licensed under the MIT License.
+
+using System.Text.Json.Serialization;
+
+namespace Azure.DataApiBuilder.Config.ObjectModel;
+
+/// <summary>
+/// Represents the rolling interval options for file sink.
+/// The time it takes between the creation of new files.
+/// </summary>
+[JsonConverter(typeof(JsonStringEnumConverter))]
+public enum RollingIntervalMode
+{
+    Hour,
+    Day,
+    Week
+}
diff --git a/src/Config/ObjectModel/TelemetryOptions.cs b/src/Config/ObjectModel/TelemetryOptions.cs
index ed2099f2a4..9956deee82 100644
--- a/src/Config/ObjectModel/TelemetryOptions.cs
+++ b/src/Config/ObjectModel/TelemetryOptions.cs
@@ -9,7 +9,7 @@ namespace Azure.DataApiBuilder.Config.ObjectModel;
 /// <summary>
 /// Represents the options for telemetry.
 /// </summary>
-public record TelemetryOptions(ApplicationInsightsOptions? ApplicationInsights = null, OpenTelemetryOptions? OpenTelemetry = null, Dictionary<string, LogLevel?>? LoggerLevel = null)
+public record TelemetryOptions(ApplicationInsightsOptions? ApplicationInsights = null, OpenTelemetryOptions? OpenTelemetry = null, FileSinkOptions? File = null, Dictionary<string, LogLevel?>? LoggerLevel = null)
 {
     [JsonPropertyName("log-level")]
     public Dictionary<string, LogLevel?>? LoggerLevel { get; init; } = LoggerLevel;