diff --git a/README.md b/README.md
index cc1625e..a3615a8 100644
--- a/README.md
+++ b/README.md
@@ -71,6 +71,10 @@ $ veramo config check -f <path/to/>agent.yml
 Your Veramo configuration seems fine. An agent can be created and the 'agent.execute()' method can be called on it.
 ```
 
+### 5. Environment setup
+
+1. `LIT_PROTOCOL_DEBUG` - Set this to `true` to enable debug logging for the LIT protocol. By default it is set to `false`.
+
 ## 📖 Documentation
 
 [Tutorials, advanced configuration, and architecture for cheqd's Veramo plugin](https://docs.cheqd.io/identity/guides/sdk/veramo-sdk-for-cheqd) can be found on our [Identity Docs site](https://docs.cheqd.io/identity/).
diff --git a/src/dkg-threshold/lit-protocol/v2.ts b/src/dkg-threshold/lit-protocol/v2.ts
index 63b6a6b..0982122 100644
--- a/src/dkg-threshold/lit-protocol/v2.ts
+++ b/src/dkg-threshold/lit-protocol/v2.ts
@@ -7,6 +7,7 @@ import { JsonSaveEncryptionKeyRequest } from '@lit-protocol/types-v2';
 import { randomBytes } from '../../utils/helpers.js';
 import { isBrowser, isNode } from '../../utils/env.js';
 import { v4 } from 'uuid';
+import { LitProtocolDebugEnabled } from '../../utils/constants.js';
 
 export type EncryptionResultV2 = {
 	encryptedString: Blob;
@@ -96,8 +97,8 @@ export class LitProtocolV2 {
 
 		// set client as per environment
 		this.client = (function (that: LitProtocolV2) {
-			if (isNode) return new LitNodeClientNodeJs({ litNetwork: that.litNetwork });
-			if (isBrowser) return new LitNodeClient({ litNetwork: that.litNetwork });
+			if (isNode) return new LitNodeClientNodeJs({ litNetwork: that.litNetwork, debug: LitProtocolDebugEnabled });
+			if (isBrowser) return new LitNodeClient({ litNetwork: that.litNetwork, debug: LitProtocolDebugEnabled });
 			throw new Error('[did-provider-cheqd]: lit-protocol: Unsupported runtime environment');
 		})(this);
 	}
diff --git a/src/dkg-threshold/lit-protocol/v3.ts b/src/dkg-threshold/lit-protocol/v3.ts
index 7a69f5b..41f40dc 100644
--- a/src/dkg-threshold/lit-protocol/v3.ts
+++ b/src/dkg-threshold/lit-protocol/v3.ts
@@ -7,6 +7,7 @@ import { generateSymmetricKey, randomBytes } from '../../utils/helpers.js';
 import { isBrowser, isNode } from '../../utils/env.js';
 import { v4 } from 'uuid';
 import { fromString } from 'uint8arrays';
+import { LitProtocolDebugEnabled } from '../../utils/constants.js';
 
 export type ThresholdEncryptionResult = {
 	encryptedString: Uint8Array;
@@ -99,8 +100,8 @@ export class LitProtocol {
 
 		// set client as per environment
 		this.client = (function (that: LitProtocol) {
-			if (isNode) return new LitNodeClientNodeJs({ litNetwork: that.litNetwork });
-			if (isBrowser) return new LitNodeClient({ litNetwork: that.litNetwork });
+			if (isNode) return new LitNodeClientNodeJs({ litNetwork: that.litNetwork, debug: LitProtocolDebugEnabled });
+			if (isBrowser) return new LitNodeClient({ litNetwork: that.litNetwork, debug: LitProtocolDebugEnabled });
 			throw new Error('[did-provider-cheqd]: lit-protocol: Unsupported runtime environment');
 		})(this);
 	}
diff --git a/src/utils/constants.ts b/src/utils/constants.ts
new file mode 100644
index 0000000..ffbb345
--- /dev/null
+++ b/src/utils/constants.ts
@@ -0,0 +1 @@
+export const LitProtocolDebugEnabled = process.env.LIT_PROTOCOL_DEBUG === 'true';
\ No newline at end of file