diff --git a/logger/options.go b/logger/options.go
index 25a15dd..7859e80 100644
--- a/logger/options.go
+++ b/logger/options.go
@@ -15,6 +15,9 @@ package logger
 
 import (
 	"fmt"
+	"io"
+	"os"
+	"sync"
 )
 
 const (
@@ -23,6 +26,12 @@ const (
 	undefinedAppID     = ""
 )
 
+var (
+	// logOutputMu protects logOutputFile from concurrent access.
+	logOutputMu   sync.Mutex
+	logOutputFile *os.File
+)
+
 // Options defines the sets of options for Dapr logging.
 type Options struct {
 	// appID is the unique id of Dapr Application
@@ -33,6 +42,9 @@ type Options struct {
 
 	// OutputLevel is the level of logging
 	OutputLevel string
+
+	// OutputFile is the destination file path for logs.
+	OutputFile string
 }
 
 // SetOutputLevel sets the log output level.
@@ -62,6 +74,11 @@ func (o *Options) AttachCmdFlags(
 			"log-level",
 			defaultOutputLevel,
 			"Options are debug, info, warn, error, or fatal (default info)")
+		stringVar(
+			&o.OutputFile,
+			"log-file",
+			"",
+			"Path to a file where logs will be written")
 	}
 
 	if boolVar != nil {
@@ -79,6 +96,7 @@ func DefaultOptions() Options {
 		JSONFormatEnabled: defaultJSONOutput,
 		appID:             undefinedAppID,
 		OutputLevel:       defaultOutputLevel,
+		OutputFile:        "",
 	}
 }
 
@@ -104,5 +122,45 @@ func ApplyOptionsToLoggers(options *Options) error {
 		v.SetOutputLevel(daprLogLevel)
 	}
 
+	err := setLogOutput(options.OutputFile, internalLoggers)
+	if err != nil {
+		return err
+	}
+
+	return nil
+}
+
+// setLogOutput configures log output destination. If path is non-empty, logs
+// are written to the file at that path. If empty, output reverts to stdout.
+// Any previously opened log file is closed before opening a new one.
+func setLogOutput(path string, loggers map[string]Logger) error {
+	logOutputMu.Lock()
+	defer logOutputMu.Unlock()
+
+	// Close any previously opened log file.
+	if logOutputFile != nil {
+		logOutputFile.Close()
+		logOutputFile = nil
+	}
+
+	var out io.Writer = os.Stdout
+
+	if path != "" {
+		file, err := os.OpenFile(path, os.O_CREATE|os.O_WRONLY|os.O_APPEND, 0o644)
+		if err != nil {
+			return fmt.Errorf("failed to open log file %q: %w", path, err)
+		}
+
+		logOutputFile = file
+	}
+
+	if logOutputFile != nil {
+		out = logOutputFile
+	}
+
+	for _, v := range loggers {
+		v.SetOutput(out)
+	}
+
 	return nil
 }
diff --git a/logger/options_test.go b/logger/options_test.go
index e16ff89..ef3823d 100644
--- a/logger/options_test.go
+++ b/logger/options_test.go
@@ -14,6 +14,8 @@ limitations under the License.
 package logger
 
 import (
+	"os"
+	"path/filepath"
 	"testing"
 
 	"github.com/stretchr/testify/assert"
@@ -26,6 +28,7 @@ func TestOptions(t *testing.T) {
 		assert.Equal(t, defaultJSONOutput, o.JSONFormatEnabled)
 		assert.Equal(t, undefinedAppID, o.appID)
 		assert.Equal(t, defaultOutputLevel, o.OutputLevel)
+		assert.Empty(t, o.OutputFile)
 	})
 
 	t.Run("set dapr ID", func(t *testing.T) {
@@ -40,10 +43,15 @@ func TestOptions(t *testing.T) {
 		o := DefaultOptions()
 
 		logLevelAsserted := false
+		logFileAsserted := false
 		testStringVarFn := func(p *string, name string, value string, usage string) {
 			if name == "log-level" && value == defaultOutputLevel {
 				logLevelAsserted = true
 			}
+
+			if name == "log-file" && value == "" {
+				logFileAsserted = true
+			}
 		}
 
 		logAsJSONAsserted := false
@@ -57,6 +65,7 @@ func TestOptions(t *testing.T) {
 
 		// assert
 		assert.True(t, logLevelAsserted)
+		assert.True(t, logFileAsserted)
 		assert.True(t, logAsJSONAsserted)
 	})
 }
@@ -92,3 +101,72 @@ func TestApplyOptionsToLoggers(t *testing.T) {
 			(l.(*daprLogger)).logger.Logger.GetLevel())
 	}
 }
+
+func TestApplyOptionsToLoggersFileOutput(t *testing.T) {
+	logPath := filepath.Join(t.TempDir(), "dapr.log")
+
+	testOptions := Options{
+		OutputLevel: "debug",
+		OutputFile:  logPath,
+	}
+
+	l := NewLogger("testLoggerFileOutput")
+
+	require.NoError(t, ApplyOptionsToLoggers(&testOptions))
+
+	dl, ok := l.(*daprLogger)
+	require.True(t, ok)
+	fileOut, ok := dl.logger.Logger.Out.(*os.File)
+	require.True(t, ok)
+	assert.Equal(t, logPath, fileOut.Name())
+	t.Cleanup(func() {
+		// Revert to stdout, which also closes the log file.
+		require.NoError(t, ApplyOptionsToLoggers(&Options{
+			OutputLevel: "info",
+		}))
+	})
+
+	msg := "log-file-test-message"
+	l.Info(msg)
+
+	b, err := os.ReadFile(logPath)
+	require.NoError(t, err)
+	assert.Contains(t, string(b), msg)
+}
+
+func TestApplyOptionsToLoggersFileOutputReapply(t *testing.T) {
+	dir := t.TempDir()
+	logPath1 := filepath.Join(dir, "dapr1.log")
+	logPath2 := filepath.Join(dir, "dapr2.log")
+
+	l := NewLogger("testLoggerReapply")
+
+	// Apply first file output.
+	require.NoError(t, ApplyOptionsToLoggers(&Options{
+		OutputLevel: "debug",
+		OutputFile:  logPath1,
+	}))
+	l.Info("message-one")
+
+	// Re-apply with a different file — should close the first.
+	require.NoError(t, ApplyOptionsToLoggers(&Options{
+		OutputLevel: "debug",
+		OutputFile:  logPath2,
+	}))
+	l.Info("message-two")
+
+	t.Cleanup(func() {
+		require.NoError(t, ApplyOptionsToLoggers(&Options{
+			OutputLevel: "info",
+		}))
+	})
+
+	b1, err := os.ReadFile(logPath1)
+	require.NoError(t, err)
+	assert.Contains(t, string(b1), "message-one")
+	assert.NotContains(t, string(b1), "message-two")
+
+	b2, err := os.ReadFile(logPath2)
+	require.NoError(t, err)
+	assert.Contains(t, string(b2), "message-two")
+}