diff --git a/CHANGELOG.md b/CHANGELOG.md
index fc45f69e..986ce524 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -9,6 +9,13 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Improved
 
+- **Daemon Log Rotation**: Increased default rotation limits for better production use (bd-t7ds)
+  - Max size increased from 10MB to 50MB per file
+  - Max backups increased from 3 to 7 files
+  - Max age increased from 7 to 30 days
+  - Added comprehensive documentation in CONFIG.md
+  - Better handles long-running daemons with high log output
+
 - **Git Pre-Push Hook**: Better error messaging and auto-sync option
   - Error message now suggests `bd sync` instead of manual git commands
   - Interactive prompt offers to run `bd sync` automatically
@@ -1233,9 +1240,9 @@ See README.md for hash ID format details and birthday paradox collision analysis
   - Includes comprehensive test coverage
 - **Log Rotation**: Automatic daemon log rotation with configurable limits (bd-154)
   - Prevents unbounded log file growth for long-running daemons
-  - Configurable via environment variables: `BEADS_DAEMON_LOG_MAX_SIZE`, `BEADS_DAEMON_LOG_MAX_BACKUPS`, `BEADS_DAEMON_LOG_MAX_AGE`
+  - Configurable via environment variables: `BEADS_DAEMON_LOG_MAX_SIZE`, `BEADS_DAEMON_LOG_MAX_BACKUPS`, `BEADS_DAEMON_LOG_MAX_AGE`, `BEADS_DAEMON_LOG_COMPRESS`
   - Optional compression of rotated logs
-  - Defaults: 10MB max size, 3 backups, 7 day retention, compression enabled
+  - Defaults: 50MB max size, 7 backups, 30 day retention, compression enabled
 - **Batch Deletion**: Enhanced `bd delete` command with batch operations (bd-127)
   - Delete multiple issues at once: `bd delete bd-1 bd-2 bd-3 --force`
   - Read from file: `bd delete --from-file deletions.txt --force`
diff --git a/cmd/bd/daemon_logger.go b/cmd/bd/daemon_logger.go
index 390fd247..ecb29e05 100644
--- a/cmd/bd/daemon_logger.go
+++ b/cmd/bd/daemon_logger.go
@@ -18,9 +18,9 @@ func (d *daemonLogger) log(format string, args ...interface{}) {
 
 // setupDaemonLogger creates a rotating log file logger for the daemon
 func setupDaemonLogger(logPath string) (*lumberjack.Logger, daemonLogger) {
-	maxSizeMB := getEnvInt("BEADS_DAEMON_LOG_MAX_SIZE", 10)
-	maxBackups := getEnvInt("BEADS_DAEMON_LOG_MAX_BACKUPS", 3)
-	maxAgeDays := getEnvInt("BEADS_DAEMON_LOG_MAX_AGE", 7)
+	maxSizeMB := getEnvInt("BEADS_DAEMON_LOG_MAX_SIZE", 50)
+	maxBackups := getEnvInt("BEADS_DAEMON_LOG_MAX_BACKUPS", 7)
+	maxAgeDays := getEnvInt("BEADS_DAEMON_LOG_MAX_AGE", 30)
 	compress := getEnvBool("BEADS_DAEMON_LOG_COMPRESS", true)
 
 	logF := &lumberjack.Logger{
diff --git a/cmd/bd/daemon_rotation_test.go b/cmd/bd/daemon_rotation_test.go
index 05d610c2..9ade2623 100644
--- a/cmd/bd/daemon_rotation_test.go
+++ b/cmd/bd/daemon_rotation_test.go
@@ -107,19 +107,19 @@ func TestLogFileRotationDefaults(t *testing.T) {
 	os.Unsetenv("BEADS_DAEMON_LOG_MAX_AGE")
 	os.Unsetenv("BEADS_DAEMON_LOG_COMPRESS")
 
-	maxSize := getEnvInt("BEADS_DAEMON_LOG_MAX_SIZE", 10)
-	if maxSize != 10 {
-		t.Errorf("Expected default max size 10, got %d", maxSize)
+	maxSize := getEnvInt("BEADS_DAEMON_LOG_MAX_SIZE", 50)
+	if maxSize != 50 {
+		t.Errorf("Expected default max size 50, got %d", maxSize)
 	}
 
-	maxBackups := getEnvInt("BEADS_DAEMON_LOG_MAX_BACKUPS", 3)
-	if maxBackups != 3 {
-		t.Errorf("Expected default max backups 3, got %d", maxBackups)
+	maxBackups := getEnvInt("BEADS_DAEMON_LOG_MAX_BACKUPS", 7)
+	if maxBackups != 7 {
+		t.Errorf("Expected default max backups 7, got %d", maxBackups)
 	}
 
-	maxAge := getEnvInt("BEADS_DAEMON_LOG_MAX_AGE", 7)
-	if maxAge != 7 {
-		t.Errorf("Expected default max age 7, got %d", maxAge)
+	maxAge := getEnvInt("BEADS_DAEMON_LOG_MAX_AGE", 30)
+	if maxAge != 30 {
+		t.Errorf("Expected default max age 30, got %d", maxAge)
 	}
 
 	compress := getEnvBool("BEADS_DAEMON_LOG_COMPRESS", true)
diff --git a/docs/CONFIG.md b/docs/CONFIG.md
index f07ae4a4..47ad0462 100644
--- a/docs/CONFIG.md
+++ b/docs/CONFIG.md
@@ -38,6 +38,10 @@ Tool-level settings you can configure:
 | `actor` | `--actor` | `BD_ACTOR` | `$USER` | Actor name for audit trail |
 | `flush-debounce` | - | `BEADS_FLUSH_DEBOUNCE` | `5s` | Debounce time for auto-flush |
 | `auto-start-daemon` | - | `BEADS_AUTO_START_DAEMON` | `true` | Auto-start daemon if not running |
+| `daemon-log-max-size` | - | `BEADS_DAEMON_LOG_MAX_SIZE` | `50` | Max daemon log size in MB before rotation |
+| `daemon-log-max-backups` | - | `BEADS_DAEMON_LOG_MAX_BACKUPS` | `7` | Max number of old log files to keep |
+| `daemon-log-max-age` | - | `BEADS_DAEMON_LOG_MAX_AGE` | `30` | Max days to keep old log files |
+| `daemon-log-compress` | - | `BEADS_DAEMON_LOG_COMPRESS` | `true` | Compress rotated log files |
 
 ### Example Config File
 
@@ -54,6 +58,12 @@ flush-debounce: 10s
 
 # Auto-start daemon (default true)
 auto-start-daemon: true
+
+# Daemon log rotation settings
+daemon-log-max-size: 50      # MB per file (default 50)
+daemon-log-max-backups: 7    # Number of old logs to keep (default 7)
+daemon-log-max-age: 30       # Days to keep old logs (default 30)
+daemon-log-compress: true    # Compress rotated logs (default true)
 ```
 
 `.beads/config.yaml` (project-specific):