diff --git a/services/rag/llamaindex/PLANNING.md b/services/rag/llamaindex/PLANNING.md
index b77add6..10b9c47 100644
--- a/services/rag/llamaindex/PLANNING.md
+++ b/services/rag/llamaindex/PLANNING.md
@@ -11,7 +11,7 @@ Chosen data folder: relatve ./../../../data - from the current folder
 # Phase 1 (cli entrypoint)
 
 - [x] Create virtual env in the `venv` folder in the current directory.
-- [ ] Create cli.py file, with the usage of `click` python library. Make default command "ping" which will write output "pong"
+- [x] Create cli.py file, with the usage of `click` python library. Make default command "ping" which will write output "pong"
 
 # Phase 2 (installation of base framework for RAG solution and preparation for data loading)
 
diff --git a/services/rag/llamaindex/QWEN.md b/services/rag/llamaindex/QWEN.md
new file mode 100644
index 0000000..a6092de
--- /dev/null
+++ b/services/rag/llamaindex/QWEN.md
@@ -0,0 +1,136 @@
+# RAG Solution with LlamaIndex and Qdrant
+
+## Project Overview
+
+This is a Retrieval Augmented Generation (RAG) solution built using LlamaIndex as the primary framework and Qdrant as the vector storage. The project is designed to load documents from a shared data directory, store them in a vector database, and enable semantic search and chat capabilities using local Ollama models.
+
+### Key Technologies
+- **RAG Framework**: LlamaIndex
+- **Vector Storage**: Qdrant
+- **Embedding Models**: Ollama (configurable via environment variables)
+- **Chat Models**: Ollama (configurable via environment variables)
+- **Data Directory**: `./../../../data` (relative to project root)
+- **Logging**: loguru with file rotation and stdout logging
+
+### Architecture Components
+- CLI entry point (`cli.py`)
+- Document enrichment module (`enrichment.py`)
+- Vector storage configuration (`vector_storage.py`)
+- Retrieval module (`retrieval.py`)
+- Chat agent (`agent.py`)
+
+## Building and Running
+
+### Prerequisites
+1. Python virtual environment (already created in `venv` folder)
+2. Ollama running locally on default port 11434
+3. Qdrant running locally (REST API on port 6333, gRPC on port 6334)
+4. Data files in the `./../../../data` directory
+
+### Setup Process
+1. Activate the virtual environment:
+   ```bash
+   source venv/bin/activate
+   ```
+
+2. Install required packages based on the document extensions found in the data directory (see EXTENSIONS.md for details)
+
+3. Configure environment variables in `.env` file (copy from `.env.dist`)
+
+4. Run the CLI to initialize the system:
+   ```bash
+   python cli.py ping  # Should return "pong"
+   ```
+
+### Available Commands
+- `ping`: Basic connectivity test
+- `enrich`: Load and process documents from the data directory into vector storage
+- `chat`: Start an interactive chat session with the RAG system
+
+## Development Conventions
+
+### Logging
+- Use `loguru` for all logging
+- Log to both file (`logs/dev.log`) with rotation and stdout
+- Use appropriate log levels (DEBUG, INFO, WARNING, ERROR)
+
+### Environment Variables
+- `OLLAMA_EMBEDDING_MODEL`: Name of the Ollama model to use for embeddings
+- `OLLAMA_CHAT_MODEL`: Name of the Ollama model to use for chat functionality
+- API keys for external services (OpenRouter option available but commented out)
+
+### Document Processing
+- Support multiple file formats based on EXTENSIONS.md
+- Use text splitters appropriate for each document type
+- Store metadata (filename, page, section, paragraph) with embeddings
+- Track processed documents to avoid re-processing (using SQLite if needed)
+
+### Vector Storage
+- Collection name: "documents_llamaindex"
+- Initialize automatically if not exists
+- Support for Ollama embeddings by default
+- Optional OpenAI embedding support via OpenRouter (commented out)
+
+## Project Phases
+
+### Phase 1: CLI Entry Point
+- [x] Virtual environment setup
+- [x] CLI creation with `click` library
+- [x] Basic "ping" command implementation
+
+### Phase 2: Framework Installation
+- [x] LlamaIndex installation
+- [ ] Data folder analysis and EXTENSIONS.md creation
+- [ ] Required loader libraries installation
+
+### Phase 3: Vector Storage Setup
+- [ ] Qdrant library installation
+- [ ] Vector storage initialization module
+- [ ] Embedding model configuration with Ollama
+- [ ] Collection creation strategy
+
+### Phase 4: Document Enrichment
+- [ ] Document loading module with appropriate loaders
+- [ ] Text splitting strategies implementation
+- [ ] Document tracking mechanism
+- [ ] CLI command for enrichment
+
+### Phase 5: Retrieval Feature
+- [ ] Retrieval module configuration
+- [ ] Query processing with metadata retrieval
+
+### Phase 6: Chat Agent
+- [ ] Agent module with Ollama integration
+- [ ] Integration with retrieval module
+- [ ] CLI command for chat functionality
+
+## File Structure
+```
+llamaindex/
+├── venv/                 # Python virtual environment
+├── cli.py               # CLI entry point
+├── vector_storage.py    # Vector storage configuration (to be created)
+├── enrichment.py        # Document loading and processing (to be created)
+├── retrieval.py         # Search and retrieval functionality (to be created)
+├── agent.py             # Chat agent implementation (to be created)
+├── EXTENSIONS.md        # Supported file extensions and loaders (to be created)
+├── .env.dist            # Environment variable template
+├── .env                 # Local environment variables (git-ignored)
+├── logs/                # Log files directory
+│   └── dev.log          # Main log file with rotation
+└── PLANNING.md          # Project planning document
+```
+
+## Data Directory
+The system expects documents to be placed in `./../../../data` relative to the project root. The system will analyze this directory to determine supported file types and appropriate loaders.
+
+## Testing
+- Unit tests for individual modules
+- Integration tests for end-to-end functionality
+- CLI command tests
+
+## Troubleshooting
+- Ensure Ollama is running on port 11434
+- Verify Qdrant is accessible on ports 6333 (REST) and 6334 (gRPC)
+- Check that the data directory contains supported file types
+- Review logs in `logs/dev.log` for detailed error information
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diff --git a/services/rag/llamaindex/cli.py b/services/rag/llamaindex/cli.py
new file mode 100644
index 0000000..1f12106
--- /dev/null
+++ b/services/rag/llamaindex/cli.py
@@ -0,0 +1,61 @@
+#!/usr/bin/env python3
+"""
+CLI entry point for the RAG solution using LlamaIndex and Qdrant.
+"""
+
+import click
+from loguru import logger
+import sys
+from pathlib import Path
+
+
+def setup_logging():
+    """Setup logging with loguru to file and stdout."""
+    # Create logs directory if it doesn't exist
+    logs_dir = Path("logs")
+    logs_dir.mkdir(exist_ok=True)
+    
+    # Remove default logger to customize it
+    logger.remove()
+    
+    # Add file handler with rotation
+    logger.add(
+        "logs/dev.log",
+        rotation="10 MB",
+        retention="10 days",
+        level="INFO",
+        format="{time:YYYY-MM-DD HH:mm:ss} | {level} | {file}:{line} | {message}"
+    )
+    
+    # Add stdout handler
+    logger.add(
+        sys.stdout,
+        level="INFO",
+        format="{time:YYYY-MM-DD HH:mm:ss} | {level} | {message}",
+        colorize=True
+    )
+
+
+@click.group()
+@click.version_option(version='1.0.0')
+def main():
+    """Main CLI entry point for the RAG solution."""
+    setup_logging()
+    logger.info("Starting RAG solution CLI")
+
+
+@main.command(help="Basic connectivity test that returns 'pong'")
+@click.option('--verbose', '-v', is_flag=True, help="Enable verbose output")
+def ping(verbose):
+    """Ping command that outputs 'pong'."""
+    if verbose:
+        logger.info("Executing ping command")
+        click.echo("pong")
+        logger.info("Ping command completed successfully")
+    else:
+        click.echo("pong")
+        logger.info("Ping command executed")
+
+
+if __name__ == '__main__':
+    main()
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