diff --git a/README.md b/README.md
index 8ee2bae..4c9fc7a 100644
--- a/README.md
+++ b/README.md
@@ -76,6 +76,7 @@ Full example configuration (for Claude Desktop, Claude Code, and Cursor):
 {
   "mcpServers": {
     "octopusdeploy": {
+      "type": "stdio",
       "command": "npx",
       "args": ["-y", "@octopusdeploy/mcp-server", "--api-key", "YOUR_API_KEY", "--server-url", "https://your-octopus.com"]
     }
@@ -157,6 +158,13 @@ npx -y @octopusdeploy/mcp-server --toolsets core,projects --server-url https://y
 npx -y @octopusdeploy/mcp-server --toolsets all --read-only --server-url https://your-octopus.com --api-key YOUR_API_KEY
 ```
 
+#### Other command line arguments
+
+* `--log-level <level>` - Minimum log level (info, error)
+* `--log-file <path>` - Log file path or filename. If not specified, logs are written to console only
+* `-q, --quiet` - Disable file logging, only log errors to console
+* `--list-tools-by-version` - List all registered tools by their supported Octopus Server version and exit
+
 ## 🔨 Tools
 
 ### Core Tools
diff --git a/src/index.ts b/src/index.ts
index 6a03b93..fc56f12 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -11,9 +11,15 @@ import { getClientConfigurationFromEnvironment } from "./helpers/getClientConfig
 import { setClientInfo } from "./utils/clientInfo.js";
 import { logger } from "./utils/logger.js";
 import packageJson from "../package.json" with { type: "json" };
+import { fileURLToPath } from "url";
+import { dirname, join, isAbsolute } from "path";
 
 export const SEMVER_VERSION = packageJson.version;
 
+// Set entry directory for logger (ESM equivalent of __dirname)
+const __filename = fileURLToPath(import.meta.url);
+const __dirname = dirname(__filename);
+
 dotenv.config({ quiet: true });
 
 // Parse command line arguments
@@ -27,7 +33,7 @@ program
   .option("--toolsets <toolsets>", `Comma-separated list of toolsets to enable, or "all" (default: all). Available toolsets: ${DEFAULT_TOOLSETS.join(", ")}`)
   .option("--read-only", "Enable read-only mode (default: enabled)", true)
   .option("--log-level <level>", "Minimum log level (info, error)", "info")
-  .option("--log-file <path>", "Log file path or filename (default: mcp-server-log.txt)")
+  .option("--log-file <path>", 'Log file path or filename. If not specified, logs are written to console only.')
   .option("-q, --quiet", "Disable file logging, only log errors to console", false)
   .option("--list-tools-by-version", "List all registered tools by their supported Octopus Server version and exit")
   .parse();
@@ -49,8 +55,13 @@ if (options.listToolsByVersion) {
 }
 
 if (options.logFile) {
-  logger.setLogFilePath(options.logFile);
+  if (dirname(options.logFile) === '.') {
+    logger.setLogFilePath(join(__dirname, options.logFile));
+  } else {
+    logger.setLogFilePath(options.logFile);
+  }
 }
+
 logger.setLogLevel(logger.parseLogLevel(options.logLevel));
 logger.setQuietMode(options.quiet);
 
diff --git a/src/utils/logger.ts b/src/utils/logger.ts
index f0a08af..ca4403f 100644
--- a/src/utils/logger.ts
+++ b/src/utils/logger.ts
@@ -1,5 +1,4 @@
 import * as fs from "fs";
-import * as path from "path";
 
 export enum LogLevel {
   INFO = 1,
@@ -7,7 +6,7 @@ export enum LogLevel {
 }
 
 interface LoggerConfig {
-  logFilePath: string;
+  logFilePath?: string | undefined;
   minLevel: LogLevel;
   quietMode: boolean;
 }
@@ -16,22 +15,18 @@ interface LoggerConfig {
  * Default logger configuration
  */
 const config: LoggerConfig = {
-  logFilePath: "mcp-server-log.txt",
+  logFilePath: undefined,
   minLevel: LogLevel.INFO,
   quietMode: false
 };
 
+
 /**
  * Set custom log file path
  * @param filePath Path to the log file (can be full path or just filename)
  */
 function setLogFilePath(filePath: string): void {
-  // If it's just a filename (no path separators), use current directory
-  if (!filePath.includes('/') && !filePath.includes('\\')) {
-    config.logFilePath = path.join(process.cwd(), filePath);
-  } else {
-    config.logFilePath = filePath;
-  }
+  config.logFilePath = filePath;
 }
 
 /**
@@ -98,8 +93,8 @@ function shouldLog(level: LogLevel): boolean {
  * @param message Message to log
  */
 function writeToFile(level: LogLevel, message: string): void {
-  if (config.quietMode) {
-    return; // Don't write to file in quiet mode
+  if (config.quietMode || config.logFilePath === undefined) {
+    return; // Don't write to file if the log file path is not defined
   }
 
   const timestamp = new Date().toISOString();