diff --git a/README.md b/README.md
index dc4e873165..3f23f8adee 100644
--- a/README.md
+++ b/README.md
@@ -492,10 +492,10 @@ All CLI and messaging sessions are stored in a SQLite database (`~/.hermes/state
 
 ### 📝 Session Logging
 
-Every conversation is logged to `~/.hermes-agent/logs/` for debugging:
+Every conversation is logged to `~/.hermes/sessions/` for debugging:
 
 ```
-logs/
+sessions/
 ├── session_20260201_143052_a1b2c3.json
 └── ...
 ```
@@ -1361,8 +1361,7 @@ All variables go in `~/.hermes/.env`. Run `hermes config set VAR value` to set t
 | `~/.hermes/auth.json` | OAuth provider credentials (managed by `hermes login`) |
 | `~/.hermes/cron/` | Scheduled jobs data |
 | `~/.hermes/sessions/` | Gateway session data |
-| `~/.hermes-agent/` | Installation directory |
-| `~/.hermes-agent/logs/` | Session logs |
+| `~/.hermes/hermes-agent/` | Installation directory |
 | `hermes_cli/` | CLI implementation |
 | `hermes_cli/auth.py` | Multi-provider auth system |
 | `tools/` | Tool implementations |
diff --git a/run_agent.py b/run_agent.py
index 9069944071..94074252d6 100644
--- a/run_agent.py
+++ b/run_agent.py
@@ -1295,9 +1295,10 @@ class AIAgent:
             short_uuid = uuid.uuid4().hex[:6]
             self.session_id = f"{timestamp_str}_{short_uuid}"
         
-        # Setup logs directory
-        self.logs_dir = Path(__file__).parent / "logs"
-        self.logs_dir.mkdir(exist_ok=True)
+        # Session logs go into ~/.hermes/sessions/ alongside gateway sessions
+        hermes_home = Path(os.getenv("HERMES_HOME", Path.home() / ".hermes"))
+        self.logs_dir = hermes_home / "sessions"
+        self.logs_dir.mkdir(parents=True, exist_ok=True)
         self.session_log_file = self.logs_dir / f"session_{self.session_id}.json"
         
         # Track conversation messages for session logging