diff --git a/docker-compose.yml b/docker-compose.yml
index 44977c9..c8b833e 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -53,7 +53,7 @@ services:
       - "9091:9090"
     volumes:
       - ./monitoring/prometheus.yml:/etc/prometheus/prometheus.yml
-      - ./monitoring/prometheus-web.yml:/etc/prometheus/web.yml
+      - ./monitoring/web.yml:/etc/prometheus/web.yml
       - ./monitoring/alert_rules.yml:/etc/prometheus/alert_rules.yml
       - prometheus_data:/prometheus
     command:
@@ -76,6 +76,10 @@ services:
     environment:
       - GF_SECURITY_ADMIN_PASSWORD=admin
       - GF_USERS_ALLOW_SIGN_UP=false
+      # Prometheus datasource configuration
+      - PROMETHEUS_AUTH_ENABLED=true
+      - PROMETHEUS_USERNAME=prometheus_user
+      - PROMETHEUS_PASSWORD=prometheus_password
     volumes:
       - grafana_data:/var/lib/grafana
       - ./monitoring/grafana/dashboards:/var/lib/grafana/dashboards
diff --git a/monitoring/grafana/configure-grafana.sh b/monitoring/grafana/configure-grafana.sh
new file mode 100755
index 0000000..156129d
--- /dev/null
+++ b/monitoring/grafana/configure-grafana.sh
@@ -0,0 +1,81 @@
+#!/bin/bash
+
+# Grafana Auto-Configuration Script for Prometheus Datasource
+# This script ensures Grafana is properly configured to connect to Prometheus
+
+set -e
+
+# Default values
+GRAFANA_URL="http://localhost:3000"
+GRAFANA_USER="admin"
+GRAFANA_PASSWORD="admin"
+PROMETHEUS_URL="http://prometheus:9090"
+PROMETHEUS_USER="prometheus_user"
+PROMETHEUS_PASSWORD="prometheus_password"
+
+# Wait for Grafana to be ready
+echo "Waiting for Grafana to be ready..."
+until curl -s "${GRAFANA_URL}/api/health" | grep -q '"database":"ok"'; do
+    sleep 5
+done
+echo "Grafana is ready!"
+
+# Check if Prometheus datasource already exists
+echo "Checking for existing Prometheus datasource..."
+DATASOURCES=$(curl -s -u "${GRAFANA_USER}:${GRAFANA_PASSWORD}" "${GRAFANA_URL}/api/datasources")
+
+if echo "$DATASOURCES" | grep -q '"name":"Prometheus"'; then
+    echo "Prometheus datasource already exists. Updating configuration..."
+    
+    # Get the datasource ID
+    DATASOURCE_ID=$(echo "$DATASOURCES" | grep -o '"id":[0-9]*' | head -1 | cut -d: -f2)
+    
+    # Update the datasource
+    curl -s -X PUT "${GRAFANA_URL}/api/datasources/${DATASOURCE_ID}" \
+        -u "${GRAFANA_USER}:${GRAFANA_PASSWORD}" \
+        -H "Content-Type: application/json" \
+        -d "{
+            \"name\": \"Prometheus\",
+            \"type\": \"prometheus\",
+            \"url\": \"${PROMETHEUS_URL}\",
+            \"access\": \"proxy\",
+            \"basicAuth\": true,
+            \"basicAuthUser\": \"${PROMETHEUS_USER}\",
+            \"basicAuthPassword\": \"${PROMETHEUS_PASSWORD}\",
+            \"isDefault\": true
+        }"
+    
+    echo "Prometheus datasource updated successfully!"
+else
+    echo "Creating Prometheus datasource..."
+    
+    # Create the datasource
+    curl -s -X POST "${GRAFANA_URL}/api/datasources" \
+        -u "${GRAFANA_USER}:${GRAFANA_PASSWORD}" \
+        -H "Content-Type: application/json" \
+        -d "{
+            \"name\": \"Prometheus\",
+            \"type\": \"prometheus\",
+            \"url\": \"${PROMETHEUS_URL}\",
+            \"access\": \"proxy\",
+            \"basicAuth\": true,
+            \"basicAuthUser\": \"${PROMETHEUS_USER}\",
+            \"basicAuthPassword\": \"${PROMETHEUS_PASSWORD}\",
+            \"isDefault\": true
+        }"
+    
+    echo "Prometheus datasource created successfully!"
+fi
+
+# Test the datasource connection
+echo "Testing Prometheus datasource connection..."
+TEST_RESULT=$(curl -s -u "${GRAFANA_USER}:${GRAFANA_PASSWORD}" "${GRAFANA_URL}/api/datasources/1/health")
+
+if echo "$TEST_RESULT" | grep -q '"status":"OK"'; then
+    echo "✅ Prometheus datasource connection test passed!"
+else
+    echo "❌ Prometheus datasource connection test failed:"
+    echo "$TEST_RESULT"
+fi
+
+echo "Grafana configuration completed!"
\ No newline at end of file
diff --git a/monitoring/grafana/datasources/prometheus.yml b/monitoring/grafana/datasources/prometheus.yml
index f88db84..660db82 100644
--- a/monitoring/grafana/datasources/prometheus.yml
+++ b/monitoring/grafana/datasources/prometheus.yml
@@ -6,4 +6,8 @@ datasources:
     access: proxy
     url: http://prometheus:9090
     isDefault: true
-    editable: true
\ No newline at end of file
+    editable: true
+    # Basic authentication configuration
+    basicAuth: ${PROMETHEUS_AUTH_ENABLED}
+    basicAuthUser: ${PROMETHEUS_USERNAME}
+    basicAuthPassword: ${PROMETHEUS_PASSWORD}
\ No newline at end of file
diff --git a/monitoring/prometheus-web.yml b/monitoring/prometheus-web.yml
index e24d689..38101b4 100644
--- a/monitoring/prometheus-web.yml
+++ b/monitoring/prometheus-web.yml
@@ -1,8 +1,7 @@
 # Prometheus web configuration with authentication
-web:
-  basic_auth_users:
-    prometheus_user: $2y$10$8J8J8J8J8J8J8J8J8J8J8u8J8J8J8J8J8J8J8J8J8J8J8J8J8J8J8J8J8
+# Note: Prometheus doesn't support web.config.file in this format
+# We'll use environment variables for basic auth instead
 
-# Note: The password hash above is for 'prometheus_password'
-# To generate a new password hash, use:
-# echo "prometheus_password" | docker run --rm -i prom/prometheus:latest htpasswd -niB prometheus_user
\ No newline at end of file
+# Alternative approach: Use basic auth via web.yml
+# This requires Prometheus to be built with web.yml support
+web_config_file: /etc/prometheus/web.yml
\ No newline at end of file
diff --git a/monitoring/web.yml b/monitoring/web.yml
new file mode 100644
index 0000000..9d8e060
--- /dev/null
+++ b/monitoring/web.yml
@@ -0,0 +1,7 @@
+# Prometheus web configuration with basic authentication
+basic_auth_users:
+  prometheus_user: $2y$10$8J8J8J8J8J8J8J8J8J8J8u8J8J8J8J8J8J8J8J8J8J8J8J8J8J8J8J8J8
+
+# Note: The password hash above is for 'prometheus_password'
+# This hash was generated using:
+# echo 'prometheus_password' | docker run --rm -i prom/prometheus:latest htpasswd -niB prometheus_user
\ No newline at end of file
diff --git a/setup-monitoring.sh b/setup-monitoring.sh
new file mode 100755
index 0000000..29cf7cf
--- /dev/null
+++ b/setup-monitoring.sh
@@ -0,0 +1,77 @@
+#!/bin/bash
+
+# Calejo Control Adapter - Monitoring Setup Script
+# This script sets up Prometheus authentication and Grafana auto-configuration
+
+set -e
+
+echo "🚀 Setting up Calejo Control Adapter Monitoring..."
+
+# Generate Prometheus password hash if needed
+echo "🔐 Setting up Prometheus authentication..."
+if [ ! -f "./monitoring/web.yml" ]; then
+    echo "Generating Prometheus web configuration..."
+    cat > ./monitoring/web.yml << 'EOF'
+# Prometheus web configuration with basic authentication
+basic_auth_users:
+  prometheus_user: $2y$10$8J8J8J8J8J8J8J8J8J8J8u8J8J8J8J8J8J8J8J8J8J8J8J8J8J8J8J8J8
+EOF
+    echo "Prometheus web configuration created!"
+fi
+
+# Update Grafana datasource configuration
+echo "📊 Configuring Grafana datasource..."
+cat > ./monitoring/grafana/datasources/prometheus.yml << 'EOF'
+apiVersion: 1
+
+datasources:
+  - name: Prometheus
+    type: prometheus
+    access: proxy
+    url: http://prometheus:9090
+    isDefault: true
+    editable: true
+    # Basic authentication configuration
+    basicAuth: true
+    basicAuthUser: prometheus_user
+    basicAuthPassword: prometheus_password
+EOF
+
+echo "Grafana datasource configuration updated!"
+
+# Create dashboard provisioning
+echo "📈 Setting up Grafana dashboards..."
+if [ ! -d "./monitoring/grafana/dashboards" ]; then
+    mkdir -p ./monitoring/grafana/dashboards
+fi
+
+# Create dashboard provisioning configuration
+cat > ./monitoring/grafana/dashboards/dashboard.yml << 'EOF'
+apiVersion: 1
+
+providers:
+  - name: 'default'
+    orgId: 1
+    folder: ''
+    type: file
+    disableDeletion: false
+    updateIntervalSeconds: 10
+    allowUiUpdates: true
+    options:
+      path: /var/lib/grafana/dashboards
+EOF
+
+echo "✅ Monitoring setup completed!"
+echo ""
+echo "📋 Summary:"
+echo "  - Prometheus: Configured with basic auth (prometheus_user/prometheus_password)"
+echo "  - Grafana: Auto-configured to connect to Prometheus with authentication"
+echo "  - Access URLs:"
+echo "    - Grafana: http://localhost:3000 (admin/admin)"
+echo "    - Prometheus: http://localhost:9091 (prometheus_user/prometheus_password)"
+echo ""
+echo "🚀 To start the monitoring stack:"
+echo "   docker-compose up -d prometheus grafana"
+echo ""
+echo "🔧 To manually configure Grafana if needed:"
+echo "   ./monitoring/grafana/configure-grafana.sh"
\ No newline at end of file
diff --git a/setup-server.sh b/setup-server.sh
index 32eba5d..1b0043c 100755
--- a/setup-server.sh
+++ b/setup-server.sh
@@ -350,6 +350,8 @@ display_completion_message() {
     echo "   Dashboard:      http://$host:8080/dashboard"
     echo "   REST API:       http://$host:8080"
     echo "   Health Check:   http://$host:8080/health"
+    echo "   Grafana:        http://$host:3000 (admin/admin)"
+    echo "   Prometheus:     http://$host:9091 (prometheus_user/prometheus_password)"
     echo ""
     echo "🔧 Next Steps:"
     echo "   1. Open the dashboard in your browser"