diff --git a/contexts/_template/blueprint.jsonnet b/contexts/_template/blueprint.jsonnet
index d5007aad..54cde2ee 100644
--- a/contexts/_template/blueprint.jsonnet
+++ b/contexts/_template/blueprint.jsonnet
@@ -78,7 +78,9 @@ local kustomizeConfigs = {
       path: "telemetry/base",
       components: [
         "prometheus",
-        "prometheus/flux"
+        "prometheus/flux",
+        "fluentbit",
+        "fluentbit/prometheus"
       ],
     },
     {
@@ -90,7 +92,12 @@ local kustomizeConfigs = {
       components: [
         "metrics-server",
         "prometheus",
-        "prometheus/flux"
+        "prometheus/flux",
+        "fluentbit",
+        "fluentbit/containerd",
+        "fluentbit/fluentd",
+        "fluentbit/kubernetes",
+        "fluentbit/systemd"
       ],
     },
     {
@@ -167,6 +174,7 @@ local kustomizeConfigs = {
         "ingress"
       ],
       components: [
+        "fluentd",
         "grafana",
         "grafana/ingress",
         "grafana/prometheus",
@@ -182,7 +190,9 @@ local kustomizeConfigs = {
       path: "telemetry/base",
       components: [
         "prometheus",
-        "prometheus/flux"
+        "prometheus/flux",
+        "fluentbit",
+        "fluentbit/prometheus"
       ],
     },
     {
@@ -193,7 +203,12 @@ local kustomizeConfigs = {
       ],
       components: [
         "prometheus",
-        "prometheus/flux"
+        "prometheus/flux",
+        "fluentbit",
+        "fluentbit/containerd",
+        "fluentbit/fluentd",
+        "fluentbit/kubernetes",
+        "fluentbit/systemd"
       ],
     },
     {
@@ -261,6 +276,7 @@ local kustomizeConfigs = {
         "ingress"
       ],
       components: [
+        "fluentd",
         "grafana",
         "grafana/ingress",
         "grafana/prometheus",
@@ -417,6 +433,22 @@ local kustomizeConfigs = {
       components: [
         "webhook"
       ],
+    },
+    {
+      name: "observability",
+      path: "observability",
+      dependsOn: [
+        "ingress"
+      ],
+      components: [
+        "fluentd",
+        "grafana",
+        "grafana/ingress",
+        "grafana/prometheus",
+        "grafana/node",
+        "grafana/kubernetes",
+        "grafana/flux"
+      ],
     }
   ]
 };
diff --git a/kustomize/observability/base/kustomization.yaml b/kustomize/observability/base/kustomization.yaml
new file mode 100644
index 00000000..736967b1
--- /dev/null
+++ b/kustomize/observability/base/kustomization.yaml
@@ -0,0 +1,2 @@
+resources:
+  - namespace.yaml
diff --git a/kustomize/observability/base/namespace.yaml b/kustomize/observability/base/namespace.yaml
new file mode 100644
index 00000000..5544d5b6
--- /dev/null
+++ b/kustomize/observability/base/namespace.yaml
@@ -0,0 +1,9 @@
+apiVersion: v1
+kind: Namespace
+metadata:
+  name: system-observability
+  labels:
+    pod-security.kubernetes.io/enforce: baseline
+    pod-security.kubernetes.io/audit: baseline
+    pod-security.kubernetes.io/warn: baseline
+    use-custom-ca: "true"
diff --git a/kustomize/observability/fluentd/fluentd.yaml b/kustomize/observability/fluentd/fluentd.yaml
new file mode 100644
index 00000000..41aea384
--- /dev/null
+++ b/kustomize/observability/fluentd/fluentd.yaml
@@ -0,0 +1,51 @@
+apiVersion: fluentd.fluent.io/v1alpha1
+kind: Fluentd
+metadata:
+  labels:
+    app.kubernetes.io/name: fluentd
+  name: fluentd
+  namespace: system-observability
+spec:
+  fluentdCfgSelector:
+    matchLabels:
+      config.fluentd.fluent.io/enabled: "true"
+  globalInputs:
+  - forward:
+      bind: 0.0.0.0
+      port: 24224
+  image: ghcr.io/fluent/fluent-operator/fluentd:v1.17.0
+  logLevel: info
+  mode: collector
+  positionDB: {}
+  replicas: 1
+  resources:
+    limits:
+      cpu: 500m
+      memory: 500Mi
+    requests:
+      cpu: 100m
+      memory: 128Mi
+  service: {}
+status:
+  messages: all matched cfgs is valid
+  state: active
+---
+apiVersion: fluentd.fluent.io/v1alpha1
+kind: ClusterFluentdConfig
+metadata:
+  labels:
+    config.fluentd.fluent.io/enabled: "true"
+  name: fluentd-config
+spec:
+  clusterFilterSelector:
+    matchLabels:
+      filter.fluentd.fluent.io/enabled: "true"
+  clusterOutputSelector:
+    matchLabels:
+      output.fluentd.fluent.io/enabled: "true"
+  watchedNamespaces:
+  - kube-system
+  - default
+status:
+  messages: Generate fluentd configs successfully
+  state: valid
diff --git a/kustomize/observability/fluentd/helm-release.yaml b/kustomize/observability/fluentd/helm-release.yaml
new file mode 100644
index 00000000..d95ec49c
--- /dev/null
+++ b/kustomize/observability/fluentd/helm-release.yaml
@@ -0,0 +1,27 @@
+---
+apiVersion: helm.toolkit.fluxcd.io/v2
+kind: HelmRelease
+metadata:
+  name: fluent-operator-config
+  namespace: system-observability
+spec:
+  interval: 5m
+  timeout: 5m
+  chart:
+    spec:
+      chart: charts/fluent-operator
+      # chart: fluent-operator
+      # renovate: datasource=helm depName=fluent-operator package=fluent-operator helmRepo=https://fluent.github.io/helm-charts
+      # version: 3.2.0
+      sourceRef:
+        kind: GitRepository
+        name: fluent-operator
+        namespace: system-gitops
+  values:
+    containerRuntime: containerd
+    fluentd:
+      enable: true
+      crdsEnable: false
+    fluentbit:
+      enable: true
+      crdsEnable: false
diff --git a/kustomize/observability/fluentd/kustomization.yaml b/kustomize/observability/fluentd/kustomization.yaml
new file mode 100644
index 00000000..3aa9a8c5
--- /dev/null
+++ b/kustomize/observability/fluentd/kustomization.yaml
@@ -0,0 +1,4 @@
+apiVersion: kustomize.config.k8s.io/v1alpha1
+kind: Component
+resources:
+  - fluentd.yaml
diff --git a/kustomize/observability/fluentd/stdout/clusteroutput.yaml b/kustomize/observability/fluentd/stdout/clusteroutput.yaml
new file mode 100644
index 00000000..61a4a912
--- /dev/null
+++ b/kustomize/observability/fluentd/stdout/clusteroutput.yaml
@@ -0,0 +1,9 @@
+apiVersion: fluentd.fluent.io/v1alpha1
+kind: ClusterOutput
+metadata:
+  name: stdout
+  labels:
+    output.fluentd.fluent.io/enabled: "true"
+spec:
+  outputs:
+    - stdout: {}
diff --git a/kustomize/observability/fluentd/stdout/kustomization.yaml b/kustomize/observability/fluentd/stdout/kustomization.yaml
new file mode 100644
index 00000000..051eb969
--- /dev/null
+++ b/kustomize/observability/fluentd/stdout/kustomization.yaml
@@ -0,0 +1,4 @@
+apiVersion: kustomize.config.k8s.io/v1alpha1
+kind: Component
+resources:
+  - clusteroutput.yaml