Langfuse Self Hosting: A Complete Guide to Docker Compose Deployment, Setup, and Observability

In the growing landscape of LLM observability tools, Langfuse stands out for its open-source flexibility, robust tracing features, and intuitive prompt management. Whether you’re a solo developer experimenting with prompts or an MLOps engineer deploying across a large-scale pipeline, Langfuse self-hosting provides the transparency and control you need.

If you also want to know how to optimize your LLM using langfuse, check this out: The AI Engineer’s Guide to Debug, Optimize, and Ship Production-Ready LLM Apps

This guide walks you through everything you need to self-host Langfuse using Docker Compose, deploy on virtual machines, and explore Langfuse’s full feature set, turning your LLM applications into observable, scalable systems.

Langfuse Setup Guide: What You’ll Need

Before deploying Langfuse locally or on a VM, make sure you have:

• Git – to clone the Langfuse repository

• Docker & Docker Compose – recommended via Docker Desktop on Mac/Windows

• System Resources – 4+ CPU cores, 16 GiB RAM, 100 GiB disk for production use

  
  

💡 Tip: For VM deployments, Ubuntu is the preferred OS due to its Docker compatibility.

Deploy Langfuse Locally Using Docker Compose

One of the fastest ways to get started is to deploy Langfuse locally via Docker Compose. Here’s the streamlined process:

Step 1: Clone the Repo

bash

git clone https://github.com/langfuse/langfuse.git cd langfuse

Step 2: Update Secrets

Open the docker-compose.yml file and set your LANGFUSE_PUBLIC_KEY, LANGFUSE_SECRET_KEY, and host values securely.

Step 3: Launch Langfuse

bash

docker compose up

Within a few minutes, once you see "Ready" in langfuse-web-1, the service is live.

Step 4: Access the UI

Open your browser to http://localhost:3000 to interact with the Langfuse dashboard.

Langfuse Virtual Machine Deployment

For persistent environments or production needs, consider Langfuse virtual machine deployment:

Recommended Setup:

• OS: Ubuntu 22.04 LTS

• Specs: 4 CPUs, 16 GiB RAM, 100 GiB disk

• Security: Set up firewalls and secure SSH access

  
  

VM Deployment Steps:

1. SSH into your VM

2. Install Docker & Docker Compose

3. Clone the Langfuse repo

4. Edit your secrets in docker-compose.yml

5. Run docker compose up

🔐 Always restrict public access and use environment variables or secrets managers for sensitive data.

Understanding Docker Compose for Langfuse

Langfuse's Docker Compose deployment is perfect for development, testing, and small production loads but it has limitations:

Limitations:

• No built-in high availability

• Manual scaling of containers

• No native backup mechanism

  
  

If you’re planning a large-scale or mission-critical deployment, consider migrating to Kubernetes later for advanced orchestration.

Sending Data to Langfuse Locally

Langfuse can easily connect to your application via the Python SDK. Here's how to push trace data programmatically:

Example: langfuse_client.py

python

from langfuse import Langfuse from langfuse.langchain import CallbackHandler langfuse = Langfuse( public_key=os.getenv("LANGFUSE_PUBLIC_KEY"), secret_key=os.getenv("LANGFUSE_SECRET_KEY"), host=os.getenv("LANGFUSE_HOST") ) langfuse_handler = CallbackHandler()

Add Tags & Session IDs

python

def get_langfuse_config(agent, tags): return { "callbacks": [langfuse_handler], "metadata": { "langfuse_session_id": agent.get_context_id(), "langfuse_tags": tags }, }

Invoke LLM with Tracing

python

def invoke(agent, prompt: str, tags=[]): if os.getenv("LANGFUSE_ENABLED", "false").lower() == "true": config = get_langfuse_config(agent, tags) return agent.llm.invoke(prompt, config=config) return agent.llm.invoke(prompt)

Top Langfuse Features That Make a Difference

Langfuse isn’t just about visibility it’s about actionable insights. Whether you’re using Langfuse self hosted or a managed deployment, these features remain central.

Key Langfuse Features:

• Trace Management: Visualize end-to-end LLM flows

• Evaluation & Feedback: Human-in-the-loop scoring + automated evals

• Prompt Management System: Collaboratively version, test, and deploy prompts

• Latency & Cost Monitoring: Spot regressions, spikes, and optimization gaps

• Observability Dashboards: Get high-level views on usage, health, and model behavior

  
  

📊 Want to export traces to external tools? Langfuse lets you do that, too.

Deep Dive into Prompt Management in Langfuse

Langfuse’s prompt management functions like a CMS for your LLM prompts. Here’s what makes it powerful:

Key Capabilities:

• Edit & version prompts via UI, API, or SDKs

• Test prompt versions in a playground

• Tag and label prompts for easier organization

• Compare prompt performance (latency, cost, accuracy)

  
  

Example: Deploy “v1” of a customer support prompt, then test “v2” with new instructions and compare metrics before rolling it live.

Advanced Observability: Sessions, Graphs & Tags

Langfuse isn’t just a logger it’s an intelligent LLM observability platform.

Highlight Features:

• Sessions: Understand full conversation context

• Agent Graphs: Visualize multi-step agent workflows

• Custom Tags & Metadata: Organize, filter, and add contextual dimensions to traces

• Trace URLs & IDs: Share trace links, or use distributed tracing across services

  
  

These features position Langfuse among the top-tier LLM observability tools in the open-source ecosystem.

Why Self-Hosting Langfuse Matters

With self-hosted LLM monitoring, you maintain full control over infrastructure, data access, and compliance. Here’s what Langfuse self hosting unlocks

Self-Hosted Langfuse Features:

• Authentication & SSO Integration (e.g., Okta, Google SSO)

• Encrypted Storage for trace and user data

• UI Customization for branding or role-based dashboards

• Offline Mode & Air-Gapped Deployments for regulated environments

You own the data. You control the observability. You decide the access.

Maintenance & Upgrades

Running Langfuse in a production environment? Here are a few tips to keep things smooth:

• Stop containers safely using Docker Compose down

• Update versions by pulling the latest repo changes and restarting

• Troubleshoot multimodal tracing with logs and community support

• Backup regularly using Docker volumes or external scripts

  
  

Is Langfuse Self-Hosting Right for You?

If you're building anything serious with LLMs whether it's a research project, SaaS product, or internal tool Langfuse self-hosting gives you the observability muscle without locking you into a black-box solution.

You can start small (Docker Compose), scale later (Kubernetes), and customize every layer of your stack. From Docker Compose LLM tools to enterprise-ready virtual machine deployments, Langfuse adapts to your needs.

 Start using Langfuse to understand, improve, and scale it. Check this out: How to create a custom AI Agent.

Want to create an AI Agent for your enterprise

Contact Us