diff --git a/libraries/microsoft-agents-activity/microsoft_agents/activity/__init__.py b/libraries/microsoft-agents-activity/microsoft_agents/activity/__init__.py
index b18336b7..7311abf2 100644
--- a/libraries/microsoft-agents-activity/microsoft_agents/activity/__init__.py
+++ b/libraries/microsoft-agents-activity/microsoft_agents/activity/__init__.py
@@ -101,7 +101,7 @@
 
 from .channel_adapter_protocol import ChannelAdapterProtocol
 from .turn_context_protocol import TurnContextProtocol
-from ._load_configuration import load_configuration_from_env
+from .config import load_configuration_from_env
 
 __all__ = [
     "AgentsModel",
diff --git a/libraries/microsoft-agents-activity/microsoft_agents/activity/config/__init__.py b/libraries/microsoft-agents-activity/microsoft_agents/activity/config/__init__.py
new file mode 100644
index 00000000..73eadc2b
--- /dev/null
+++ b/libraries/microsoft-agents-activity/microsoft_agents/activity/config/__init__.py
@@ -0,0 +1,8 @@
+# Copyright (c) Microsoft Corporation. All rights reserved.
+# Licensed under the MIT License.
+
+from ._load_configuration import load_configuration_from_env
+
+__all__ = [
+    "load_configuration_from_env",
+]
diff --git a/libraries/microsoft-agents-activity/microsoft_agents/activity/config/_configure_logging.py b/libraries/microsoft-agents-activity/microsoft_agents/activity/config/_configure_logging.py
new file mode 100644
index 00000000..eb76594e
--- /dev/null
+++ b/libraries/microsoft-agents-activity/microsoft_agents/activity/config/_configure_logging.py
@@ -0,0 +1,55 @@
+# Copyright (c) Microsoft Corporation. All rights reserved.
+# Licensed under the MIT License.
+
+import logging
+
+from ..errors import configuration_errors
+
+# in Python 3.11, we can move to using
+# logging.getLevelNamesMapping()
+_NAME_TO_LEVEL = {
+    "CRITICAL": logging.CRITICAL,
+    "FATAL": logging.FATAL,
+    "ERROR": logging.ERROR,
+    "WARN": logging.WARNING,
+    "WARNING": logging.WARNING,
+    "INFO": logging.INFO,
+    "INFORMATION": logging.INFO,  # .NET parity
+    "DEBUG": logging.DEBUG,
+    "NOTSET": logging.NOTSET,
+}
+
+
+def _configure_logging(logging_config: dict):
+    """Configures logging based on the provided logging configuration dictionary.
+
+    :param logging_config: A dictionary containing logging configuration.
+    :raises ValueError: If an invalid log level is provided in the configuration.
+    """
+
+    log_levels = logging_config.get("LOGLEVEL", {})
+
+    console_handler = logging.StreamHandler()
+    console_handler.setFormatter(
+        logging.Formatter(
+            "%(asctime)s - %(name)s - %(levelname)s - %(message)s (%(filename)s:%(lineno)d)"
+        )
+    )
+
+    for key in log_levels:
+        level_name = log_levels[key].upper()
+        level = _NAME_TO_LEVEL.get(level_name)
+        if level is None:
+            raise ValueError(
+                configuration_errors.InvalidLoggingConfiguration.format(key, level_name)
+            )
+
+        namespace = key.lower()
+        if namespace == "default":
+            logger = logging.getLogger()
+        else:
+            logger = logging.getLogger(namespace)
+
+        logger.handlers.clear()  # Remove existing handlers to prevent duplicates
+        logger.addHandler(console_handler)
+        logger.setLevel(level)
diff --git a/libraries/microsoft-agents-activity/microsoft_agents/activity/_load_configuration.py b/libraries/microsoft-agents-activity/microsoft_agents/activity/config/_load_configuration.py
similarity index 91%
rename from libraries/microsoft-agents-activity/microsoft_agents/activity/_load_configuration.py
rename to libraries/microsoft-agents-activity/microsoft_agents/activity/config/_load_configuration.py
index cfc8a420..ef0de9f3 100644
--- a/libraries/microsoft-agents-activity/microsoft_agents/activity/_load_configuration.py
+++ b/libraries/microsoft-agents-activity/microsoft_agents/activity/config/_load_configuration.py
@@ -3,6 +3,8 @@
 
 from typing import Any
 
+from ._configure_logging import _configure_logging
+
 
 def load_configuration_from_env(env_vars: dict[str, Any]) -> dict:
     """
@@ -26,6 +28,8 @@ def load_configuration_from_env(env_vars: dict[str, Any]) -> dict:
             conn for conn in result.get("CONNECTIONSMAP", {}).values()
         ]
 
+    _configure_logging(result.get("LOGGING", {}))
+
     return {
         "AGENTAPPLICATION": result.get("AGENTAPPLICATION", {}),
         "CONNECTIONS": result.get("CONNECTIONS", {}),
diff --git a/libraries/microsoft-agents-activity/microsoft_agents/activity/errors/__init__.py b/libraries/microsoft-agents-activity/microsoft_agents/activity/errors/__init__.py
index 90283f53..a9f63d69 100644
--- a/libraries/microsoft-agents-activity/microsoft_agents/activity/errors/__init__.py
+++ b/libraries/microsoft-agents-activity/microsoft_agents/activity/errors/__init__.py
@@ -6,9 +6,16 @@
 """
 
 from .error_message import ErrorMessage
-from .error_resources import ActivityErrorResources
+from .error_resources import ActivityErrorResources, ConfigurationErrorResources
 
 # Singleton instance
 activity_errors = ActivityErrorResources()
+configuration_errors = ConfigurationErrorResources()
 
-__all__ = ["ErrorMessage", "ActivityErrorResources", "activity_errors"]
+__all__ = [
+    "ErrorMessage",
+    "ActivityErrorResources",
+    "ConfigurationErrorResources",
+    "activity_errors",
+    "configuration_errors",
+]
diff --git a/libraries/microsoft-agents-activity/microsoft_agents/activity/errors/error_resources.py b/libraries/microsoft-agents-activity/microsoft_agents/activity/errors/error_resources.py
index 0b0b68e9..455f7bc4 100644
--- a/libraries/microsoft-agents-activity/microsoft_agents/activity/errors/error_resources.py
+++ b/libraries/microsoft-agents-activity/microsoft_agents/activity/errors/error_resources.py
@@ -50,3 +50,16 @@ class ActivityErrorResources:
     def __init__(self):
         """Initialize ActivityErrorResources."""
         pass
+
+
+class ConfigurationErrorResources:
+    """
+    Error messages for environment configuration operations.
+
+    Error codes are organized in the range -66000 to -66999.
+    """
+
+    InvalidLoggingConfiguration = ErrorMessage(
+        "Invalid logging level configured: {0} = {1}",
+        -66011,
+    )