diff --git a/README.md b/README.md
index ab8dd99..c1301db 100644
--- a/README.md
+++ b/README.md
@@ -1,10 +1,19 @@
 # baktainer
 Easily backup databases running in docker containers.
+
 ## Features
-- Backup MySQL, PostgreSQL, MongoDB, and SQLite databases
-- Run on a schedule using cron expressions
-- Backup databases running in docker containers
-- Define which databases to backup using docker labels
+- **Database Support**: MySQL, PostgreSQL, MongoDB, and SQLite databases
+- **Scheduled Backups**: Run on a schedule using cron expressions
+- **Container Discovery**: Define which databases to backup using docker labels
+- **Health Monitoring**: Web dashboard and REST API for monitoring backup status
+- **Notifications**: Multi-channel notifications (Slack, Discord, Teams, Email, Webhooks)
+- **Backup Rotation**: Automatic cleanup based on age, count, or disk space
+- **Encryption**: AES-256-GCM encryption for backup files
+- **Compression**: Gzip compression to reduce backup file sizes
+- **Performance Monitoring**: Real-time metrics and performance alerts
+- **Label Validation**: Schema-based validation with helpful error messages
+- **SSL/TLS Support**: Secure Docker API connections
+- **High Performance**: Multi-threaded backups with dynamic scaling
 ## Installation
 
 ⚠️ **Security Notice**: Baktainer requires Docker socket access which grants significant privileges. Please review [SECURITY.md](SECURITY.md) for important security considerations and recommended mitigations.
@@ -15,35 +24,91 @@ services:
     image: jamez001/baktainer:latest
     container_name: baktainer
     restart: unless-stopped
+    ports:
+      - "8080:8080"  # Health check dashboard
     volumes:
       - ./backups:/backups
       - /var/run/docker.sock:/var/run/docker.sock
     environment:
       - BT_CRON="0 0 * * *" # Backup every day at midnight
-      - "BT_DOCKER_URL=unix:///var/run/docker.sock" 
+      - BT_DOCKER_URL=unix:///var/run/docker.sock
       - BT_THREADS=4
       - BT_LOG_LEVEL=info
-      # Enable if using SSL over tcp
-      #- BT_SSL = true
-      #- BT_CA
-      #- BT_CERT
-      #- BT_KEY    
+      - BT_HEALTH_SERVER_ENABLED=true  # Enable health check server
+      - BT_COMPRESS=true               # Enable compression
+      - BT_ROTATION_ENABLED=true       # Enable backup rotation
+      - BT_RETENTION_DAYS=30          # Keep backups for 30 days
+      # SSL Configuration (if using remote Docker API)
+      #- BT_SSL=true
+      #- BT_CA=/path/to/ca.pem
+      #- BT_CERT=/path/to/cert.pem
+      #- BT_KEY=/path/to/key.pem
+      # Notification Configuration
+      #- BT_NOTIFICATION_CHANNELS=slack,log
+      #- BT_SLACK_WEBHOOK_URL=https://hooks.slack.com/...
+      #- BT_NOTIFY_FAILURES=true
+      # Encryption Configuration
+      #- BT_ENCRYPTION_ENABLED=true
+      #- BT_ENCRYPTION_KEY=your-hex-key
 ```
 
 For enhanced security, consider using a Docker socket proxy. See [SECURITY.md](SECURITY.md) for detailed security recommendations.
 
 ## Environment Variables
+
+### Core Configuration
 | Variable | Description | Default |
 | -------- | ----------- | ------- |
-| BT_CRON | Cron expression for scheduling backups | 0 0 * * * |
-| BT_THREADS | Number of threads to use for backups | 4 |
-| BT_LOG_LEVEL | Log level (debug, info, warn, error) | info |
-| BT_COMPRESS | Enable gzip compression for backups | true |
-| BT_SSL | Enable SSL for docker connection | false |
-| BT_CA | Path to CA certificate | none |
-| BT_CERT | Path to client certificate | none |
-| BT_KEY | Path to client key | none |
-| BT_DOCKER_URL | Docker URL | unix:///var/run/docker.sock |
+| BT_CRON | Cron expression for scheduling backups | `0 0 * * *` |
+| BT_THREADS | Number of threads to use for backups | `4` |
+| BT_LOG_LEVEL | Log level (debug, info, warn, error) | `info` |
+| BT_DOCKER_URL | Docker API URL | `unix:///var/run/docker.sock` |
+| BT_BACKUP_DIR | Directory to store backups | `/backups` |
+
+### Backup Options
+| Variable | Description | Default |
+| -------- | ----------- | ------- |
+| BT_COMPRESS | Enable gzip compression for backups | `true` |
+| BT_ROTATION_ENABLED | Enable automatic backup rotation | `true` |
+| BT_RETENTION_DAYS | Days to keep backups (0 = unlimited) | `30` |
+| BT_RETENTION_COUNT | Max backups per container (0 = unlimited) | `0` |
+| BT_MIN_FREE_SPACE_GB | Minimum free space in GB | `10` |
+
+### Health Monitoring
+| Variable | Description | Default |
+| -------- | ----------- | ------- |
+| BT_HEALTH_SERVER_ENABLED | Enable health check server | `false` |
+| BT_HEALTH_PORT | Port for health check server | `8080` |
+| BT_HEALTH_BIND | Bind address for health server | `0.0.0.0` |
+
+### SSL/TLS Configuration
+| Variable | Description | Default |
+| -------- | ----------- | ------- |
+| BT_SSL | Enable SSL for Docker connection | `false` |
+| BT_CA | Path to CA certificate or certificate data | none |
+| BT_CERT | Path to client certificate or certificate data | none |
+| BT_KEY | Path to client key or key data | none |
+
+### Encryption
+| Variable | Description | Default |
+| -------- | ----------- | ------- |
+| BT_ENCRYPTION_ENABLED | Enable AES-256-GCM encryption | `false` |
+| BT_ENCRYPTION_KEY | Encryption key (hex or base64) | none |
+| BT_ENCRYPTION_KEY_FILE | Path to encryption key file | none |
+| BT_ENCRYPTION_PASSPHRASE | Passphrase for key derivation | none |
+
+### Notifications
+| Variable | Description | Default |
+| -------- | ----------- | ------- |
+| BT_NOTIFICATION_CHANNELS | Comma-separated list of channels | `log` |
+| BT_NOTIFY_SUCCESS | Notify on successful backups | `false` |
+| BT_NOTIFY_FAILURES | Notify on backup failures | `true` |
+| BT_NOTIFY_WARNINGS | Notify on warnings | `true` |
+| BT_NOTIFY_HEALTH | Notify on health issues | `true` |
+| BT_SLACK_WEBHOOK_URL | Slack webhook URL | none |
+| BT_DISCORD_WEBHOOK_URL | Discord webhook URL | none |
+| BT_TEAMS_WEBHOOK_URL | Microsoft Teams webhook URL | none |
+| BT_WEBHOOK_URL | Generic webhook URL | none |
 
 ## Usage
 Add labels to your docker containers to specify which databases to backup. 
@@ -68,16 +133,26 @@ services:
       - baktainer.name="MyApp"
 ```
 
-## Possible Values for Labels
-| Label | Description |
-| ----- | ----------- |
-| baktainer.backup | Set to true to enable backup for this container |
-| baktainer.db.engine | Database engine (mysql, postgres, mongodb, sqlite) |
-| baktainer.db.name | Name of the database to backup |
-| baktainer.db.user | Username for the database |
-| baktainer.db.password | Password for the database |
-| baktainer.name | Name of the application (optional). Determines name of sql dump file. |
-| baktainer.compress | Enable gzip compression for this container's backups (true/false). Overrides BT_COMPRESS. |
+## Docker Labels for Container Configuration
+
+### Required Labels
+| Label | Description | Required For |
+| ----- | ----------- | ------------ |
+| baktainer.backup | Set to `true` to enable backup for this container | All |
+| baktainer.db.engine | Database engine: `mysql`, `postgres`, `mongodb`, `sqlite` | All |
+| baktainer.db.name | Name of the database to backup | All |
+| baktainer.db.user | Username for the database | MySQL, PostgreSQL, MongoDB |
+| baktainer.db.password | Password for the database | MySQL, PostgreSQL, MongoDB |
+
+### Optional Labels
+| Label | Description | Default |
+| ----- | ----------- | ------- |
+| baktainer.name | Application name for backup files | Database name |
+| baktainer.compress | Enable compression for this container (`true`/`false`) | `BT_COMPRESS` value |
+| baktainer.encrypt | Enable encryption for this container (`true`/`false`) | `BT_ENCRYPTION_ENABLED` value |
+| baktainer.backup.priority | Backup priority: `low`, `normal`, `high`, `critical` | `normal` |
+| baktainer.backup.retention.days | Days to keep backups for this container | `BT_RETENTION_DAYS` value |
+| baktainer.backup.retention.count | Max backups to keep for this container | `BT_RETENTION_COUNT` value |
 
 ## Backup Files
 The backup files will be stored in the directory specified by the `BT_BACKUP_DIR` environment variable. The files will be named according to the following format:
@@ -88,6 +163,103 @@ Where `<date>` is the date of the backup ('YY-MM-DD' format) `<db_name>` is the
 
 By default, backups are compressed with gzip. To disable compression, set `BT_COMPRESS=false` or add `baktainer.compress=false` label to specific containers.
 
+## Health Monitoring & Dashboard
+
+Baktainer includes a comprehensive health monitoring system with a web dashboard and REST API.
+
+### Accessing the Dashboard
+When `BT_HEALTH_SERVER_ENABLED=true`, visit **http://localhost:8080** for:
+- Real-time backup status and metrics
+- Container discovery and configuration
+- Performance monitoring with auto-refresh
+- System health checks and alerts
+
+### Health Check Endpoints
+| Endpoint | Description |
+| -------- | ----------- |
+| `GET /` | Interactive monitoring dashboard |
+| `GET /health` | Health check (200 = healthy, 503 = unhealthy) |
+| `GET /status` | Detailed system status and metrics |
+| `GET /backups` | Backup history and statistics |
+| `GET /containers` | Discovered containers with backup labels |
+| `GET /config` | Configuration (credentials sanitized) |
+| `GET /metrics` | Prometheus-format metrics |
+
+### Prometheus Integration
+Use the `/metrics` endpoint to integrate with monitoring systems:
+```yaml
+# Prometheus scrape config
+scrape_configs:
+  - job_name: 'baktainer'
+    static_configs:
+      - targets: ['baktainer:8080']
+    metrics_path: '/metrics'
+    scrape_interval: 30s
+```
+
+## Notifications
+
+Configure multi-channel notifications for backup events:
+
+### Supported Channels
+- **Slack**: Set `BT_SLACK_WEBHOOK_URL`
+- **Discord**: Set `BT_DISCORD_WEBHOOK_URL`  
+- **Microsoft Teams**: Set `BT_TEAMS_WEBHOOK_URL`
+- **Generic Webhook**: Set `BT_WEBHOOK_URL`
+- **Logs**: Always available
+
+### Example Configuration
+```yaml
+environment:
+  - BT_NOTIFICATION_CHANNELS=slack,log
+  - BT_SLACK_WEBHOOK_URL=https://hooks.slack.com/services/YOUR/WEBHOOK/URL
+  - BT_NOTIFY_FAILURES=true
+  - BT_NOTIFY_SUCCESS=false
+  - BT_NOTIFY_WARNINGS=true
+```
+
+## Backup Encryption
+
+Secure your backups with AES-256-GCM encryption:
+
+```yaml
+environment:
+  - BT_ENCRYPTION_ENABLED=true
+  - BT_ENCRYPTION_KEY=your-256-bit-hex-key
+  # Or use a key file:
+  # - BT_ENCRYPTION_KEY_FILE=/path/to/keyfile
+  # Or derive from passphrase:
+  # - BT_ENCRYPTION_PASSPHRASE=your-secure-passphrase
+```
+
+Encrypted files use `.enc` extension and include authentication data for integrity verification.
+
+## Backup Rotation & Cleanup
+
+Automatic backup cleanup keeps your storage manageable:
+
+### Configuration Options
+```yaml
+environment:
+  - BT_ROTATION_ENABLED=true      # Enable automatic cleanup
+  - BT_RETENTION_DAYS=30          # Keep backups for 30 days
+  - BT_RETENTION_COUNT=0          # Max backups per container (0 = unlimited)
+  - BT_MIN_FREE_SPACE_GB=10       # Trigger cleanup when free space < 10GB
+```
+
+### Per-Container Overrides
+```yaml
+labels:
+  - baktainer.backup.retention.days=7    # Keep this container's backups for 7 days
+  - baktainer.backup.retention.count=5   # Keep max 5 backups for this container
+```
+
+### Cleanup Behavior
+- **Time-based**: Remove backups older than specified days
+- **Count-based**: Keep only N most recent backups per container
+- **Space-based**: Automatic cleanup when disk space is low
+- **Smart cleanup**: Removes empty date directories after cleanup
+
 ## Testing
 
 The project includes comprehensive test coverage with both unit and integration tests.
@@ -125,20 +297,32 @@ bin/test --all --coverage
 bin/test --integration --setup --cleanup
 ```
 
-## Roadmap
-- [x] Add support for SQLite backups
-- [x] Add support for MongoDB backups
-- [x] Add support for MySQL backups
-- [x] Add support for PostgreSQL backups
-- [x] Add support for cron scheduling
-- [x] Add support for Docker labels to specify which databases to backup
-- [x] Add support for Docker socket
-- [x] Add support for Docker API over TCP
-- [x] Add support for Docker API over SSL
-- [x] Add support for Docker API over HTTP
-- [x] Add support for Docker API over HTTPS
-- [x] Add support for Docker API over Unix socket
-- [x] Add comprehensive test coverage (94.94% line coverage)
-- [ ] Add individual hook for completed backups
-- [ ] Add hook for fullly completed backups
-- [ ] Optionally limit time for each backup
+## Development Roadmap
+
+### ✅ Completed Features
+- [x] **Database Support**: MySQL, PostgreSQL, MongoDB, and SQLite backups
+- [x] **Scheduling**: Cron-based backup scheduling
+- [x] **Container Discovery**: Docker label-based configuration
+- [x] **Docker Integration**: Support for socket, TCP, SSL/TLS connections
+- [x] **Compression**: Gzip compression for backup files
+- [x] **Health Monitoring**: Web dashboard and REST API monitoring
+- [x] **Notifications**: Multi-channel notifications (Slack, Discord, Teams, Webhooks)
+- [x] **Backup Rotation**: Automatic cleanup based on age, count, and disk space
+- [x] **Encryption**: AES-256-GCM encryption for backup files
+- [x] **Performance Monitoring**: Real-time metrics and alerts
+- [x] **Label Validation**: Schema-based validation with helpful error messages
+- [x] **High Performance**: Multi-threaded backups with dynamic scaling
+- [x] **Comprehensive Testing**: 94.94% line coverage with unit and integration tests
+
+### 🔄 In Progress
+- [ ] Backup streaming for large databases
+- [ ] Advanced retry strategies with exponential backoff
+
+### 📋 Future Enhancements
+- [ ] Individual hooks for completed backups
+- [ ] Hooks for fully completed backup cycles
+- [ ] Configurable timeout limits for each backup
+- [ ] Database-specific optimization settings
+- [ ] Backup verification and integrity checking
+- [ ] Multi-region backup replication
+- [ ] Advanced alerting rules and thresholds