diff --git a/.env.development b/.env.development
new file mode 100644
index 0000000..933b0e9
--- /dev/null
+++ b/.env.development
@@ -0,0 +1,37 @@
+# Development Environment Configuration
+# SMS alerts are disabled by default in development
+
+# Database Configuration
+DB_HOST=localhost
+DB_PORT=5433
+DB_NAME=drone_detection
+DB_USER=postgres
+DB_PASSWORD=your_secure_password_here
+
+# Redis Configuration  
+REDIS_HOST=localhost
+REDIS_PORT=6380
+
+# JWT Configuration
+JWT_SECRET=dev_jwt_secret_change_in_production
+
+# Server Configuration
+PORT=3002
+NODE_ENV=development
+
+# CORS Configuration
+CORS_ORIGIN=http://localhost:3001
+
+# Rate Limiting
+RATE_LIMIT_WINDOW_MS=900000
+RATE_LIMIT_MAX_REQUESTS=100
+
+# Twilio SMS Configuration (Disabled for development)
+# Uncomment and fill these to enable SMS alerts:
+# TWILIO_ACCOUNT_SID=ACxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
+# TWILIO_AUTH_TOKEN=your_auth_token
+# TWILIO_PHONE_NUMBER=+1234567890
+
+# Frontend Configuration
+VITE_API_URL=http://localhost:3002/api
+VITE_WS_URL=ws://localhost:3002
diff --git a/.env.docker b/.env.docker
index aa0f54f..1e09ba2 100644
--- a/.env.docker
+++ b/.env.docker
@@ -1,22 +1,44 @@
 # Docker Environment Configuration
 # Copy this file to .env and update with your actual values
 
+# Database Configuration (automatically set by docker-compose)
+DB_HOST=drone-detection-db
+DB_PORT=5432
+DB_NAME=drone_detection
+DB_USER=postgres
+DB_PASSWORD=your_secure_password_here
+
+# Redis Configuration (automatically set by docker-compose)
+REDIS_HOST=drone-detection-redis
+REDIS_PORT=6379
+
 # JWT Configuration
 JWT_SECRET=your-super-secret-jwt-key-change-in-production-make-it-long-and-random
 
+# Server Configuration
+PORT=3002
 NODE_ENV=development
 
-# Twilio Configuration (for SMS alerts)
+# CORS Configuration
+CORS_ORIGIN=http://localhost:3001
+
+# Rate Limiting
+RATE_LIMIT_WINDOW_MS=900000
+RATE_LIMIT_MAX_REQUESTS=100
+
+# Twilio SMS Configuration (Optional - leave empty to disable SMS)
+# Get these from https://console.twilio.com/
 TWILIO_ACCOUNT_SID=
 TWILIO_AUTH_TOKEN=
 TWILIO_PHONE_NUMBER=
 
+# Email Configuration (Optional - for future implementation)
 SMTP_HOST=
 SMTP_PORT=587
 SMTP_USER=
 SMTP_PASSWORD=
 SMTP_FROM=
 
-# Optional: Override default settings
-# NODE_ENV=production
-# CORS_ORIGIN=http://localhost:3000
+# Frontend Configuration
+VITE_API_URL=http://localhost:3002/api
+VITE_WS_URL=ws://localhost:3002
diff --git a/server/index.js b/server/index.js
index a9b57d6..0cb51de 100644
--- a/server/index.js
+++ b/server/index.js
@@ -11,6 +11,7 @@ require('dotenv').config();
 const { sequelize } = require('./models');
 const routes = require('./routes');
 const { initializeSocketHandlers } = require('./services/socketService');
+const AlertService = require('./services/alertService');
 const errorHandler = require('./middleware/errorHandler');
 
 const app = express();
@@ -81,8 +82,24 @@ async function startServer() {
     }
     
     server.listen(PORT, () => {
-      console.log(`Server running on port ${PORT}`);
-      console.log(`Environment: ${process.env.NODE_ENV}`);
+      console.log('\n🚀 Drone Detection System Started Successfully!');
+      console.log('================================================');
+      console.log(`📊 Environment: ${process.env.NODE_ENV || 'development'}`);
+      console.log(`🌐 Server Port: ${PORT}`);
+      console.log(`💾 Database: ${process.env.DB_HOST}:${process.env.DB_PORT}`);
+      console.log(`🔴 Redis: ${process.env.REDIS_HOST || 'localhost'}:${process.env.REDIS_PORT || 6379}`);
+      
+      // Initialize AlertService to check SMS status
+      const alertService = new AlertService();
+      if (alertService.twilioEnabled) {
+        console.log('📱 SMS Alerts: ✅ Enabled');
+      } else {
+        console.log('📱 SMS Alerts: ⚠️  Disabled (no Twilio credentials)');
+      }
+      
+      console.log(`📊 Health check: http://localhost:${PORT}/health`);
+      console.log(`🌐 API endpoint: http://localhost:${PORT}/api`);
+      console.log('================================================\n');
     });
   } catch (error) {
     console.error('Unable to start server:', error);
diff --git a/server/services/alertService.js b/server/services/alertService.js
index 050a008..ef18066 100644
--- a/server/services/alertService.js
+++ b/server/services/alertService.js
@@ -5,6 +5,8 @@ const { Op } = require('sequelize');
 class AlertService {
   constructor() {
     this.twilioClient = null;
+    this.twilioPhone = null;
+    this.twilioEnabled = false;
     this.initializeTwilio();
   }
 
@@ -89,13 +91,40 @@ class AlertService {
   }
 
   initializeTwilio() {
-    if (process.env.TWILIO_ACCOUNT_SID && process.env.TWILIO_AUTH_TOKEN) {
-      this.twilioClient = twilio(
-        process.env.TWILIO_ACCOUNT_SID,
-        process.env.TWILIO_AUTH_TOKEN
-      );
-    } else {
-      console.warn('Twilio credentials not configured. SMS alerts will be disabled.');
+    // Check if Twilio credentials are provided
+    const accountSid = process.env.TWILIO_ACCOUNT_SID;
+    const authToken = process.env.TWILIO_AUTH_TOKEN;
+    const phoneNumber = process.env.TWILIO_PHONE_NUMBER;
+
+    // If any Twilio credential is missing, disable SMS functionality
+    if (!accountSid || !authToken || !phoneNumber || 
+        accountSid.trim() === '' || authToken.trim() === '' || phoneNumber.trim() === '') {
+      console.log('📱 Twilio credentials not configured - SMS alerts disabled');
+      console.log('ℹ️  To enable SMS alerts, set TWILIO_ACCOUNT_SID, TWILIO_AUTH_TOKEN, and TWILIO_PHONE_NUMBER');
+      this.twilioEnabled = false;
+      this.twilioClient = null;
+      return;
+    }
+
+    // Validate Twilio Account SID format
+    if (!accountSid.startsWith('AC')) {
+      console.log('⚠️  Invalid Twilio Account SID format - SMS alerts disabled');
+      console.log('ℹ️  Account SID must start with "AC"');
+      this.twilioEnabled = false;
+      this.twilioClient = null;
+      return;
+    }
+
+    try {
+      this.twilioClient = twilio(accountSid, authToken);
+      this.twilioPhone = phoneNumber;
+      this.twilioEnabled = true;
+      console.log('📱 Twilio SMS service initialized successfully');
+    } catch (error) {
+      console.error('❌ Failed to initialize Twilio:', error.message);
+      console.log('📱 SMS alerts disabled due to Twilio initialization error');
+      this.twilioEnabled = false;
+      this.twilioClient = null;
     }
   }
 
@@ -343,27 +372,63 @@ class AlertService {
   }
 
   async sendSMSAlert(phoneNumber, message, rule, detection) {
-    if (!this.twilioClient) {
-      throw new Error('Twilio not configured');
+    // Check if Twilio is enabled
+    if (!this.twilioEnabled || !this.twilioClient) {
+      console.log('📱 SMS alert skipped - Twilio not configured');
+      console.log(`📱 Would have sent to ${phoneNumber}: ${message}`);
+      
+      return await AlertLog.create({
+        alert_rule_id: rule.id,
+        detection_id: detection.id,
+        alert_type: 'sms',
+        recipient: phoneNumber,
+        message: message,
+        status: 'failed',
+        sent_at: new Date(),
+        external_id: null,
+        priority: rule.priority,
+        error_message: 'SMS service not configured'
+      });
     }
 
-    const twilioMessage = await this.twilioClient.messages.create({
-      body: message,
-      from: process.env.TWILIO_PHONE_NUMBER,
-      to: phoneNumber
-    });
+    try {
+      console.log(`📱 Sending SMS alert to ${phoneNumber}`);
+      
+      const twilioMessage = await this.twilioClient.messages.create({
+        body: message,
+        from: this.twilioPhone,
+        to: phoneNumber
+      });
 
-    return await AlertLog.create({
-      alert_rule_id: rule.id,
-      detection_id: detection.id,
-      alert_type: 'sms',
-      recipient: phoneNumber,
-      message: message,
-      status: 'sent',
-      sent_at: new Date(),
-      external_id: twilioMessage.sid,
-      priority: rule.priority
-    });
+      console.log(`✅ SMS sent successfully: ${twilioMessage.sid}`);
+
+      return await AlertLog.create({
+        alert_rule_id: rule.id,
+        detection_id: detection.id,
+        alert_type: 'sms',
+        recipient: phoneNumber,
+        message: message,
+        status: 'sent',
+        sent_at: new Date(),
+        external_id: twilioMessage.sid,
+        priority: rule.priority
+      });
+    } catch (error) {
+      console.error('❌ Failed to send SMS:', error.message);
+      
+      return await AlertLog.create({
+        alert_rule_id: rule.id,
+        detection_id: detection.id,
+        alert_type: 'sms',
+        recipient: phoneNumber,
+        message: message,
+        status: 'failed',
+        sent_at: new Date(),
+        external_id: null,
+        priority: rule.priority,
+        error_message: error.message
+      });
+    }
   }
 
   async sendEmailAlert(email, message, rule, detection) {