diff --git a/CHANGELOG.md b/CHANGELOG.md
index 157d8f34..7bfa136c 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -14,6 +14,10 @@ Changes since the last non-beta release.
 
 _Please add entries here for your pull requests that have not yet been released._
 
+### Changed
+
+- Redact sensitive data (Authorization headers, tokens) from `--trace` output. [PR 261](https://github.com/shakacode/control-plane-flow/pull/261) by [Sergey Tarasov](https://github.com/dzirtusss).
+
 ## [4.1.1] - 2025-03-14
 
 
diff --git a/lib/core/config.rb b/lib/core/config.rb
index 54d963e6..9c076f42 100644
--- a/lib/core/config.rb
+++ b/lib/core/config.rb
@@ -25,7 +25,7 @@ def initialize(args, options, required_options)
     return unless trace_mode
 
     ControlplaneApiDirect.trace = trace_mode
-    Shell.warn("Trace mode is enabled, this will print sensitive information to the console.")
+    Shell.warn("Trace mode is enabled. Sensitive data is redacted, but please review output before sharing.")
   end
 
   def org
diff --git a/lib/core/controlplane_api_direct.rb b/lib/core/controlplane_api_direct.rb
index 6f27c19a..a672ffe6 100644
--- a/lib/core/controlplane_api_direct.rb
+++ b/lib/core/controlplane_api_direct.rb
@@ -1,5 +1,27 @@
 # frozen_string_literal: true
 
+class RedactedDebugOutput
+  SAFE_HEADERS = %w[Content-Type Content-Length Accept Host Date Cache-Control Connection].freeze
+  HEADER_REGEX = /^([A-Za-z\-]+): (.+)$/.freeze
+
+  def <<(msg)
+    $stdout << redact(msg)
+  end
+
+  private
+
+  def redact(msg)
+    msg.lines.map { |line| redact_line(line) }.join
+  end
+
+  def redact_line(line)
+    match = line.match(HEADER_REGEX)
+    return line.gsub(/[\w\-._]{50,}/, "[REDACTED]") unless match
+
+    SAFE_HEADERS.any? { |h| h.casecmp(match[1]).zero? } ? line : "#{match[1]}: [REDACTED]\n"
+  end
+end
+
 class ControlplaneApiDirect
   API_METHODS = {
     get: Net::HTTP::Get,
@@ -37,7 +59,7 @@ def call(url, method:, host: :api, body: nil) # rubocop:disable Metrics/MethodLe
 
     http = Net::HTTP.new(uri.hostname, uri.port)
     http.use_ssl = uri.scheme == "https"
-    http.set_debug_output($stdout) if trace
+    http.set_debug_output(RedactedDebugOutput.new) if trace
 
     response = http.start { |ht| ht.request(request) }