diff --git a/README.md b/README.md
index 3a745b6..27ff7eb 100644
--- a/README.md
+++ b/README.md
@@ -165,6 +165,8 @@ The application will automatically retry connections (5 times) and provide a det
 | **Celery Tasks Stuck** | Tasks remain 'Pending' | Check Redis logs: `docker logs spectragraph-redis`. Ensure the worker is initialized. |
 | **UI Blank Screen** | `VITE_API_URL` error | Ensure `.env` has the correct API host (usually `http://localhost:5001`). |
 
+For additional setup issues and resolutions, see the full [Troubleshooting Guide](./docs/TROUBLESHOOTING.md).
+
 ---
 
 ## 🗺 SWoC 2026 Roadmap
diff --git a/docs/TROUBLESHOOTING.md b/docs/TROUBLESHOOTING.md
new file mode 100644
index 0000000..ee9a570
--- /dev/null
+++ b/docs/TROUBLESHOOTING.md
@@ -0,0 +1,111 @@
+# 🛠 Troubleshooting Guide
+
+This document lists common setup and development issues encountered while running SpectraGraph locally, along with their causes and resolutions.
+If you encounter an issue not listed here, feel free to open an issue or submit a PR.
+
+## Docker Services (Neo4j & Redis)
+
+### Symptom
+- `Connection refused` errors on ports `7474` (Neo4j) or `6379` (Redis)
+- API fails to start or background tasks remain pending
+
+### Cause
+- Docker containers are not running
+- Containers failed during startup
+- Docker daemon is not active
+
+### Solution
+1. Verify Docker is running:
+```bash
+docker ps
+```
+2. Check container status:
+```bash
+docker-compose ps
+```
+3. Inspect logs for failing services:
+```bash
+docker-compose logs neo4j
+docker-compose logs redis
+```
+4. Restart the stack:
+```bash
+make dev
+```
+
+## Vault Secret Integration
+
+### Symptom
+- Errors related to `MASTER_VAULT_KEY`
+- API crashes during startup or secret access
+- Integration tests involving Vault fail
+
+### Cause
+- Vault service is not running or unsealed
+- Required Vault environment variables are missing
+- Vault keys are not exported in the current shell
+
+### Solution
+1. Ensure the Vault container is running:
+```bash
+docker ps
+```
+2. Verify required environment variables are set:
+```bash
+echo $MASTER_VAULT_KEY_V1
+```
+3. If Vault was restarted, re-export keys and tokens before retrying.
+4. Re-run the stack after fixing Vault configuration:
+```bash
+make dev
+```
+
+## Python / Poetry Environment Issues
+
+### Symptom
+- `pyproject.toml` installation failures
+- Dependency conflicts across `api`, `core`, or `transforms`
+- Poetry commands behave inconsistently
+
+### Cause
+- Poetry cache corruption
+- Python version mismatch
+- Manual setup instead of standardized Makefile workflow
+
+### Solution
+1. Prefer using the Makefile for setup:
+```bash
+make dev
+```
+2. Clear Poetry cache if installation fails:
+```bash
+poetry cache clear pypi --all
+```
+3. Ensure the correct Python version is active:
+```bash
+python --version
+```
+4. Retry installation after clearing cache.
+
+## Common Port Conflicts
+
+### Symptom
+- `Address already in use`
+- Services fail to bind to ports `3000`, `5001`, or `5432`
+
+### Cause
+- Another local service is already using the required port
+
+### Solution
+1. Identify the process using the port:
+```bash
+lsof -i :3000
+```
+2. Stop the conflicting process or free the port:
+```bash
+kill -9 <PID>
+```
+3. Restart the SpectraGraph stack:
+```bash
+make dev
+```
\ No newline at end of file