diff --git a/README.md b/README.md
index 2eeade0..cfee2d1 100644
--- a/README.md
+++ b/README.md
@@ -27,4 +27,27 @@ services:
     image: postgres:15
     environment:
       POSTGRES_DB: tradeflow
- 
\ No newline at end of file
+```
+
+## 🔒 Security & CORS
+
+The API is configured with strict Cross-Origin Resource Sharing (CORS) policies to ensure secure communication:
+
+- **Allowed Origins**:
+  - `http://localhost:3000` (Local Development)
+  - `https://tradeflow-web.vercel.app` (Production)
+- **Allowed Methods**: `GET`, `POST`, `PUT`, `PATCH`
+
+### Verifying CORS
+To verify the CORS configuration, ensure dependencies are installed and the server is running, then execute the test script:
+
+```bash
+# 1. Install dependencies
+npm install
+
+# 2. Start the server
+npm run start
+
+# 3. Run the CORS verification script (in a new terminal)
+node test-cors.js
+```
diff --git a/src/main.ts b/src/main.ts
index 8a9998d..5f2d972 100644
--- a/src/main.ts
+++ b/src/main.ts
@@ -4,7 +4,15 @@ import { DocumentBuilder, SwaggerModule } from '@nestjs/swagger';
 
 async function bootstrap() {
   const app = await NestFactory.create(AppModule);
-  app.enableCors(); // Vital for Frontend connection
+  // Configure CORS for secure cross-origin communication
+  app.enableCors({
+    origin: [
+      'http://localhost:3000', // Local development environment
+      'https://tradeflow-web.vercel.app', // Production environment
+    ],
+    methods: ['GET', 'POST', 'PUT', 'PATCH'],
+    credentials: true,
+  });
 
   const config = new DocumentBuilder()
     .setTitle('TradeFlow API')
diff --git a/test-cors.js b/test-cors.js
new file mode 100644
index 0000000..2697692
--- /dev/null
+++ b/test-cors.js
@@ -0,0 +1,63 @@
+const http = require('http');
+
+const options = {
+  hostname: 'localhost',
+  port: 3000,
+  path: '/health',
+  method: 'GET',
+  headers: {
+    'Origin': 'http://localhost:3000'
+  }
+};
+
+function checkCors(origin, expectedStatus, expectedAllowOrigin) {
+  return new Promise((resolve, reject) => {
+    const reqOptions = { ...options, headers: { 'Origin': origin } };
+    const req = http.request(reqOptions, (res) => {
+      const allowOrigin = res.headers['access-control-allow-origin'];
+      console.log(`Origin: ${origin}, Status: ${res.statusCode}, Access-Control-Allow-Origin: ${allowOrigin}`);
+      
+      if (expectedAllowOrigin) {
+        if (allowOrigin === expectedAllowOrigin) {
+          resolve(true);
+        } else {
+          reject(new Error(`Expected ${expectedAllowOrigin}, got ${allowOrigin}`));
+        }
+      } else {
+        if (!allowOrigin) {
+          resolve(true);
+        } else {
+          reject(new Error(`Expected no Access-Control-Allow-Origin, got ${allowOrigin}`));
+        }
+      }
+    });
+
+    req.on('error', (e) => {
+      reject(e);
+    });
+
+    req.end();
+  });
+}
+
+async function runTests() {
+  try {
+    console.log('Testing Allowed Origin 1: http://localhost:3000');
+    await checkCors('http://localhost:3000', 200, 'http://localhost:3000');
+    
+    console.log('Testing Allowed Origin 2: https://tradeflow-web.vercel.app');
+    await checkCors('https://tradeflow-web.vercel.app', 200, 'https://tradeflow-web.vercel.app');
+
+    console.log('Testing Disallowed Origin: http://evil.com');
+    await checkCors('http://evil.com', 200, undefined); // Should not return the header
+
+    console.log('All CORS tests passed!');
+  } catch (error) {
+    console.error('CORS Test Failed:', error.message);
+    process.exit(1);
+  }
+}
+
+// Give server a moment to start if needed, but this script assumes it's running.
+// If run via a command that starts server then runs this, we need a wait.
+runTests();