diff --git a/CHANGELOG.md b/CHANGELOG.md
index d30ae5e2..81fe5621 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -7,6 +7,10 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ## 3.0.0b9
 - Removed deprecated `PrimaiteSession` class.
+- Added ability to set log levels via configuration.
+- Upgraded pydantic to version 2.7.0
+- Upgraded Ray to version >= 2.9
+- Added ipywidgets to the dependencies
 
 ## [Unreleased]
 - Made requests fail to reach their target if the node is off
diff --git a/docs/source/configuration/io_settings.rst b/docs/source/configuration/io_settings.rst
index 67734751..46b2f1b2 100644
--- a/docs/source/configuration/io_settings.rst
+++ b/docs/source/configuration/io_settings.rst
@@ -18,6 +18,8 @@ This section configures how PrimAITE saves data during simulation and training.
         save_step_metadata: False
         save_pcap_logs: False
         save_sys_logs: False
+        write_sys_log_to_terminal: False
+        sys_log_level: WARNING
 
 
 ``save_logs``
@@ -25,7 +27,6 @@ This section configures how PrimAITE saves data during simulation and training.
 
 *currently unused*.
 
-
 ``save_agent_actions``
 ----------------------
 
@@ -55,3 +56,35 @@ If ``True``, then the pcap files which contain all network traffic during the si
 Optional. Default value is ``False``.
 
 If ``True``, then the log files which contain all node actions during the simulation will be saved.
+
+
+``write_sys_log_to_terminal``
+-----------------------------
+
+Optional. Default value is ``False``.
+
+If ``True``, PrimAITE will print sys log to the terminal.
+
+
+``sys_log_level``
+-------------
+
+Optional. Default value is ``WARNING``.
+
+The level of logging that should be visible in the sys logs or the logs output to the terminal.
+
+``save_sys_logs`` or ``write_sys_log_to_terminal`` has to be set to ``True`` for this setting to be used.
+
+Available options are:
+
+- ``DEBUG``: Debug level items and the items below
+- ``INFO``: Info level items and the items below
+- ``WARNING``: Warning level items and the items below
+- ``ERROR``: Error level items and the items below
+- ``CRITICAL``: Only critical level logs
+
+See also |logging_levels|
+
+.. |logging_levels| raw:: html
+
+    <a href="https://docs.python.org/3/library/logging.html#logging-levels" target="blank">Python logging levels</a>
diff --git a/pyproject.toml b/pyproject.toml
index 19b5b7fa..333132bc 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -38,8 +38,9 @@ dependencies = [
     "stable-baselines3[extra]==2.1.0",
     "tensorflow==2.12.0",
     "typer[all]==0.9.0",
-    "pydantic==2.1.1",
-    "ray[rllib] == 2.8.0, < 3"
+    "pydantic==2.7.0",
+    "ray[rllib] >= 2.9, < 3",
+    "ipywidgets"
 ]
 
 [tool.setuptools.dynamic]
diff --git a/src/primaite/config/_package_data/data_manipulation.yaml b/src/primaite/config/_package_data/data_manipulation.yaml
index 8c365320..9dea1b14 100644
--- a/src/primaite/config/_package_data/data_manipulation.yaml
+++ b/src/primaite/config/_package_data/data_manipulation.yaml
@@ -3,6 +3,7 @@ io_settings:
   save_step_metadata: false
   save_pcap_logs: false
   save_sys_logs: false
+  sys_log_level: WARNING
 
 
 game:
diff --git a/src/primaite/config/_package_data/data_manipulation_marl.yaml b/src/primaite/config/_package_data/data_manipulation_marl.yaml
index 359d7c55..45779036 100644
--- a/src/primaite/config/_package_data/data_manipulation_marl.yaml
+++ b/src/primaite/config/_package_data/data_manipulation_marl.yaml
@@ -1061,6 +1061,8 @@ agents:
                 source_port_id: 1
                 dest_port_id: 1
                 protocol_id: 1
+                source_wildcard_id: 0
+                dest_wildcard_id: 0
           47: # old action num: 23 # "ACL: ADDRULE - Block outgoing traffic from client 2"
             action: "ROUTER_ACL_ADDRULE"
             options:
@@ -1072,6 +1074,8 @@ agents:
                 source_port_id: 1
                 dest_port_id: 1
                 protocol_id: 1
+                source_wildcard_id: 0
+                dest_wildcard_id: 0
           48: # old action num: 24 # block tcp traffic from client 1 to web app
             action: "ROUTER_ACL_ADDRULE"
             options:
@@ -1083,6 +1087,8 @@ agents:
                 source_port_id: 1
                 dest_port_id: 1
                 protocol_id: 3
+                source_wildcard_id: 0
+                dest_wildcard_id: 0
           49: # old action num: 25 # block tcp traffic from client 2 to web app
             action: "ROUTER_ACL_ADDRULE"
             options:
@@ -1094,6 +1100,8 @@ agents:
                 source_port_id: 1
                 dest_port_id: 1
                 protocol_id: 3
+                source_wildcard_id: 0
+                dest_wildcard_id: 0
           50: # old action num: 26
             action: "ROUTER_ACL_ADDRULE"
             options:
@@ -1105,6 +1113,8 @@ agents:
                 source_port_id: 1
                 dest_port_id: 1
                 protocol_id: 3
+                source_wildcard_id: 0
+                dest_wildcard_id: 0
           51: # old action num: 27
             action: "ROUTER_ACL_ADDRULE"
             options:
@@ -1116,6 +1126,8 @@ agents:
                 source_port_id: 1
                 dest_port_id: 1
                 protocol_id: 3
+                source_wildcard_id: 0
+                dest_wildcard_id: 0
           52: # old action num: 28
             action: "ROUTER_ACL_REMOVERULE"
             options:
diff --git a/src/primaite/game/agent/observations/host_observations.py b/src/primaite/game/agent/observations/host_observations.py
index b15ede9a..02c0d17f 100644
--- a/src/primaite/game/agent/observations/host_observations.py
+++ b/src/primaite/game/agent/observations/host_observations.py
@@ -227,6 +227,13 @@ class HostObservation(AbstractObservation, identifier="HOST"):
         applications = [ApplicationObservation.from_config(config=c, parent_where=where) for c in config.applications]
         folders = [FolderObservation.from_config(config=c, parent_where=where) for c in config.folders]
         nics = [NICObservation.from_config(config=c, parent_where=where) for c in config.network_interfaces]
+        # If list of network interfaces is not defined, assume we want to
+        # monitor the first N interfaces. Network interface numbering starts at 1.
+        count = 1
+        while len(nics) < config.num_nics:
+            nic_config = NICObservation.ConfigSchema(nic_num=count, include_nmne=config.include_nmne)
+            nics.append(NICObservation.from_config(config=nic_config, parent_where=where))
+            count += 1
 
         return cls(
             where=where,
diff --git a/src/primaite/game/agent/observations/observations.py b/src/primaite/game/agent/observations/observations.py
index 0d6ff2a3..1ba87a30 100644
--- a/src/primaite/game/agent/observations/observations.py
+++ b/src/primaite/game/agent/observations/observations.py
@@ -1,6 +1,6 @@
 """Manages the observation space for the agent."""
 from abc import ABC, abstractmethod
-from typing import Any, Dict, Iterable, Type
+from typing import Any, Dict, Iterable, Optional, Type, Union
 
 from gymnasium import spaces
 from gymnasium.core import ObsType
@@ -9,7 +9,7 @@ from pydantic import BaseModel, ConfigDict
 from primaite import getLogger
 
 _LOGGER = getLogger(__name__)
-WhereType = Iterable[str | int] | None
+WhereType = Optional[Iterable[Union[str, int]]]
 
 
 class AbstractObservation(ABC):
diff --git a/src/primaite/game/agent/rewards.py b/src/primaite/game/agent/rewards.py
index 726afaa4..0222bfcc 100644
--- a/src/primaite/game/agent/rewards.py
+++ b/src/primaite/game/agent/rewards.py
@@ -26,7 +26,7 @@ the structure:
 ```
 """
 from abc import abstractmethod
-from typing import Callable, Dict, Iterable, List, Optional, Tuple, Type, TYPE_CHECKING
+from typing import Callable, Dict, Iterable, List, Optional, Tuple, Type, TYPE_CHECKING, Union
 
 from typing_extensions import Never
 
@@ -37,7 +37,7 @@ if TYPE_CHECKING:
     from primaite.game.agent.interface import AgentActionHistoryItem
 
 _LOGGER = getLogger(__name__)
-WhereType = Iterable[str | int] | None
+WhereType = Optional[Iterable[Union[str, int]]]
 
 
 class AbstractReward:
diff --git a/src/primaite/notebooks/Data-Manipulation-Customising-Red-Agent.ipynb b/src/primaite/notebooks/Data-Manipulation-Customising-Red-Agent.ipynb
index 56e9bf5a..74a1e0ef 100644
--- a/src/primaite/notebooks/Data-Manipulation-Customising-Red-Agent.ipynb
+++ b/src/primaite/notebooks/Data-Manipulation-Customising-Red-Agent.ipynb
@@ -362,7 +362,7 @@
     "    cfg = yaml.safe_load(f)\n",
     "    cfg['simulation']['network']\n",
     "    for node in cfg['simulation']['network']['nodes']:\n",
-    "      if node['ref'] in ['client_1', 'client_2']:\n",
+    "      if node['hostname'] in ['client_1', 'client_2']:\n",
     "        node['applications'] = change['applications']\n",
     "\n",
     "env = PrimaiteGymEnv(game_config = cfg)\n",
@@ -407,7 +407,7 @@
     "    cfg = yaml.safe_load(f)\n",
     "    cfg['simulation']['network']\n",
     "    for node in cfg['simulation']['network']['nodes']:\n",
-    "      if node['ref'] in ['client_1', 'client_2']:\n",
+    "      if node['hostname'] in ['client_1', 'client_2']:\n",
     "        node['applications'] = change['applications']\n",
     "\n",
     "env = PrimaiteGymEnv(game_config = cfg)\n",
diff --git a/src/primaite/session/io.py b/src/primaite/session/io.py
index 0b22f784..6aff6f9f 100644
--- a/src/primaite/session/io.py
+++ b/src/primaite/session/io.py
@@ -6,7 +6,7 @@ from typing import Dict, List, Optional
 from pydantic import BaseModel, ConfigDict
 
 from primaite import getLogger, PRIMAITE_PATHS
-from primaite.simulator import SIM_OUTPUT
+from primaite.simulator import LogLevel, SIM_OUTPUT
 
 _LOGGER = getLogger(__name__)
 
@@ -35,6 +35,8 @@ class PrimaiteIO:
         """Whether to save system logs."""
         write_sys_log_to_terminal: bool = False
         """Whether to write the sys log to the terminal."""
+        sys_log_level: LogLevel = LogLevel.INFO
+        """The level of log that should be included in the logfiles/logged into terminal."""
 
     def __init__(self, settings: Optional[Settings] = None) -> None:
         """
@@ -50,6 +52,7 @@ class PrimaiteIO:
         SIM_OUTPUT.save_pcap_logs = self.settings.save_pcap_logs
         SIM_OUTPUT.save_sys_logs = self.settings.save_sys_logs
         SIM_OUTPUT.write_sys_log_to_terminal = self.settings.write_sys_log_to_terminal
+        SIM_OUTPUT.sys_log_level = self.settings.sys_log_level
 
     def generate_session_path(self, timestamp: Optional[datetime] = None) -> Path:
         """Create a folder for the session and return the path to it."""
@@ -96,6 +99,10 @@ class PrimaiteIO:
     def from_config(cls, config: Dict) -> "PrimaiteIO":
         """Create an instance of PrimaiteIO based on a configuration dict."""
         config = config or {}
+
+        if config.get("sys_log_level"):
+            config["sys_log_level"] = LogLevel[config["sys_log_level"].upper()]  # convert to enum
+
         new = cls(settings=cls.Settings(**config))
 
         return new
diff --git a/src/primaite/simulator/__init__.py b/src/primaite/simulator/__init__.py
index 9e2ce9a1..3f371ee5 100644
--- a/src/primaite/simulator/__init__.py
+++ b/src/primaite/simulator/__init__.py
@@ -1,5 +1,6 @@
 """Warning: SIM_OUTPUT is a mutable global variable for the simulation output directory."""
 from datetime import datetime
+from enum import IntEnum
 from pathlib import Path
 
 from primaite import _PRIMAITE_ROOT
@@ -7,6 +8,21 @@ from primaite import _PRIMAITE_ROOT
 __all__ = ["SIM_OUTPUT"]
 
 
+class LogLevel(IntEnum):
+    """Enum containing all the available log levels for PrimAITE simulation output."""
+
+    DEBUG = 10
+    """Debug items will be output to terminal or log file."""
+    INFO = 20
+    """Info items will be output to terminal or log file."""
+    WARNING = 30
+    """Warnings will be output to terminal or log file."""
+    ERROR = 40
+    """Errors will be output to terminal or log file."""
+    CRITICAL = 50
+    """Critical errors will be output to terminal or log file."""
+
+
 class _SimOutput:
     def __init__(self):
         self._path: Path = (
@@ -15,6 +31,7 @@ class _SimOutput:
         self.save_pcap_logs: bool = False
         self.save_sys_logs: bool = False
         self.write_sys_log_to_terminal: bool = False
+        self.sys_log_level: LogLevel = LogLevel.WARNING  # default log level is at WARNING
 
     @property
     def path(self) -> Path:
diff --git a/src/primaite/simulator/file_system/file_system.py b/src/primaite/simulator/file_system/file_system.py
index aacb7d01..0eae6009 100644
--- a/src/primaite/simulator/file_system/file_system.py
+++ b/src/primaite/simulator/file_system/file_system.py
@@ -6,7 +6,6 @@ from typing import Dict, Optional
 
 from prettytable import MARKDOWN, PrettyTable
 
-from primaite import getLogger
 from primaite.interface.request import RequestResponse
 from primaite.simulator.core import RequestManager, RequestType, SimComponent
 from primaite.simulator.file_system.file import File
@@ -14,8 +13,6 @@ from primaite.simulator.file_system.file_type import FileType
 from primaite.simulator.file_system.folder import Folder
 from primaite.simulator.system.core.sys_log import SysLog
 
-_LOGGER = getLogger(__name__)
-
 
 class FileSystem(SimComponent):
     """Class that contains all the simulation File System."""
@@ -163,11 +160,11 @@ class FileSystem(SimComponent):
         :param folder_name: The name of the folder.
         """
         if folder_name == "root":
-            self.sys_log.warning("Cannot delete the root folder.")
+            self.sys_log.error("Cannot delete the root folder.")
             return False
         folder = self.get_folder(folder_name)
         if not folder:
-            _LOGGER.debug(f"Cannot delete folder as it does not exist: {folder_name}")
+            self.sys_log.error(f"Cannot delete folder as it does not exist: {folder_name}")
             return False
 
         # set folder to deleted state
@@ -180,7 +177,7 @@ class FileSystem(SimComponent):
         folder.remove_all_files()
 
         self.deleted_folders[folder.uuid] = folder
-        self.sys_log.info(f"Deleted folder /{folder.name} and its contents")
+        self.sys_log.warning(f"Deleted folder /{folder.name} and its contents")
         return True
 
     def delete_folder_by_id(self, folder_uuid: str) -> None:
@@ -283,7 +280,7 @@ class FileSystem(SimComponent):
         folder = self.get_folder(folder_name, include_deleted=include_deleted)
         if folder:
             return folder.get_file(file_name, include_deleted=include_deleted)
-        self.sys_log.info(f"File not found /{folder_name}/{file_name}")
+        self.sys_log.warning(f"File not found /{folder_name}/{file_name}")
 
     def get_file_by_id(
         self, file_uuid: str, folder_uuid: Optional[str] = None, include_deleted: Optional[bool] = False
@@ -499,7 +496,7 @@ class FileSystem(SimComponent):
         """
         folder = self.get_folder(folder_name=folder_name)
         if not folder:
-            _LOGGER.debug(f"Cannot restore file {file_name} in folder {folder_name} as the folder does not exist.")
+            self.sys_log.error(f"Cannot restore file {file_name} in folder {folder_name} as the folder does not exist.")
             return False
 
         file = folder.get_file(file_name=file_name, include_deleted=True)
diff --git a/src/primaite/simulator/file_system/folder.py b/src/primaite/simulator/file_system/folder.py
index 9f176660..51b7a819 100644
--- a/src/primaite/simulator/file_system/folder.py
+++ b/src/primaite/simulator/file_system/folder.py
@@ -4,14 +4,11 @@ from typing import Dict, Optional
 
 from prettytable import MARKDOWN, PrettyTable
 
-from primaite import getLogger
 from primaite.interface.request import RequestResponse
 from primaite.simulator.core import RequestManager, RequestType
 from primaite.simulator.file_system.file import File
 from primaite.simulator.file_system.file_system_item_abc import FileSystemItemABC, FileSystemItemHealthStatus
 
-_LOGGER = getLogger(__name__)
-
 
 class Folder(FileSystemItemABC):
     """Simulation Folder."""
@@ -254,7 +251,7 @@ class Folder(FileSystemItemABC):
             file.delete()
             self.sys_log.info(f"Removed file {file.name} (id: {file.uuid})")
         else:
-            _LOGGER.debug(f"File with UUID {file.uuid} was not found.")
+            self.sys_log.error(f"File with UUID {file.uuid} was not found.")
 
     def remove_file_by_id(self, file_uuid: str):
         """
diff --git a/src/primaite/simulator/network/airspace.py b/src/primaite/simulator/network/airspace.py
index abda587e..3c5c048c 100644
--- a/src/primaite/simulator/network/airspace.py
+++ b/src/primaite/simulator/network/airspace.py
@@ -161,7 +161,7 @@ class WirelessNetworkInterface(NetworkInterface, ABC):
             return
 
         if self._connected_node.operating_state != NodeOperatingState.ON:
-            self._connected_node.sys_log.info(
+            self._connected_node.sys_log.error(
                 f"Interface {self} cannot be enabled as the connected Node is not powered on"
             )
             return
diff --git a/src/primaite/simulator/network/hardware/base.py b/src/primaite/simulator/network/hardware/base.py
index 55636356..14137eb2 100644
--- a/src/primaite/simulator/network/hardware/base.py
+++ b/src/primaite/simulator/network/hardware/base.py
@@ -307,13 +307,13 @@ class WiredNetworkInterface(NetworkInterface, ABC):
             return False
 
         if self._connected_node.operating_state != NodeOperatingState.ON:
-            self._connected_node.sys_log.info(
+            self._connected_node.sys_log.warning(
                 f"Interface {self} cannot be enabled as the connected Node is not powered on"
             )
             return False
 
         if not self._connected_link:
-            self._connected_node.sys_log.info(f"Interface {self} cannot be enabled as there is no Link connected.")
+            self._connected_node.sys_log.warning(f"Interface {self} cannot be enabled as there is no Link connected.")
             return False
 
         self.enabled = True
@@ -1201,7 +1201,7 @@ class Node(SimComponent):
             self._nic_request_manager.add_request(new_nic_num, RequestType(func=network_interface._request_manager))
         else:
             msg = f"Cannot connect NIC {network_interface} as it is already connected"
-            self.sys_log.logger.error(msg)
+            self.sys_log.logger.warning(msg)
             raise NetworkError(msg)
 
     def disconnect_nic(self, network_interface: Union[NetworkInterface, str]):
@@ -1228,7 +1228,7 @@ class Node(SimComponent):
                 self._nic_request_manager.remove_request(network_interface_num)
         else:
             msg = f"Cannot disconnect Network Interface {network_interface} as it is not connected"
-            self.sys_log.logger.error(msg)
+            self.sys_log.logger.warning(msg)
             raise NetworkError(msg)
 
     def ping(self, target_ip_address: Union[IPv4Address, str], pings: int = 4) -> bool:
@@ -1360,7 +1360,6 @@ class Node(SimComponent):
         self.software_manager.install(application)
         application_instance = self.software_manager.software.get(str(application.__name__))
         self.applications[application_instance.uuid] = application_instance
-        self.sys_log.info(f"Installed application {application_instance.name}")
         _LOGGER.debug(f"Added application {application_instance.name} to node {self.hostname}")
         self._application_request_manager.add_request(
             application_instance.name, RequestType(func=application_instance._request_manager)
diff --git a/src/primaite/simulator/network/hardware/nodes/host/host_node.py b/src/primaite/simulator/network/hardware/nodes/host/host_node.py
index 8928e8ef..df254b1e 100644
--- a/src/primaite/simulator/network/hardware/nodes/host/host_node.py
+++ b/src/primaite/simulator/network/hardware/nodes/host/host_node.py
@@ -147,7 +147,7 @@ class HostARP(ARP):
         super()._process_arp_request(arp_packet, from_network_interface)
         # Unmatched ARP Request
         if arp_packet.target_ip_address != from_network_interface.ip_address:
-            self.sys_log.info(
+            self.sys_log.warning(
                 f"Ignoring ARP request for {arp_packet.target_ip_address}. Current IP address is "
                 f"{from_network_interface.ip_address}"
             )
diff --git a/src/primaite/simulator/network/hardware/nodes/network/router.py b/src/primaite/simulator/network/hardware/nodes/network/router.py
index ce188838..b7563937 100644
--- a/src/primaite/simulator/network/hardware/nodes/network/router.py
+++ b/src/primaite/simulator/network/hardware/nodes/network/router.py
@@ -933,7 +933,7 @@ class RouterICMP(ICMP):
         )
 
         if not network_interface:
-            self.sys_log.error(
+            self.sys_log.warning(
                 "Cannot send ICMP echo reply as there is no outbound Network Interface to use. Try configuring the "
                 "default gateway."
             )
@@ -1482,7 +1482,7 @@ class Router(NetworkNode):
             frame.ethernet.dst_mac_addr = target_mac
             network_interface.send_frame(frame)
         else:
-            self.sys_log.error(f"Frame dropped as there is no route to {frame.ip.dst_ip_address}")
+            self.sys_log.warning(f"Frame dropped as there is no route to {frame.ip.dst_ip_address}")
 
     def configure_port(self, port: int, ip_address: Union[IPv4Address, str], subnet_mask: Union[IPv4Address, str]):
         """
diff --git a/src/primaite/simulator/network/hardware/nodes/network/switch.py b/src/primaite/simulator/network/hardware/nodes/network/switch.py
index aa405e14..db1863e0 100644
--- a/src/primaite/simulator/network/hardware/nodes/network/switch.py
+++ b/src/primaite/simulator/network/hardware/nodes/network/switch.py
@@ -74,7 +74,7 @@ class SwitchPort(WiredNetworkInterface):
         if self.enabled:
             frame.decrement_ttl()
             if frame.ip and frame.ip.ttl < 1:
-                self._connected_node.sys_log.info("Frame discarded as TTL limit reached")
+                self._connected_node.sys_log.warning("Frame discarded as TTL limit reached")
                 return False
             self.pcap.capture_inbound(frame)
             self._connected_node.receive_frame(frame=frame, from_network_interface=self)
diff --git a/src/primaite/simulator/network/hardware/nodes/network/wireless_router.py b/src/primaite/simulator/network/hardware/nodes/network/wireless_router.py
index 62332269..f66ebd27 100644
--- a/src/primaite/simulator/network/hardware/nodes/network/wireless_router.py
+++ b/src/primaite/simulator/network/hardware/nodes/network/wireless_router.py
@@ -68,7 +68,7 @@ class WirelessAccessPoint(IPWirelessNetworkInterface):
         if self.enabled:
             frame.decrement_ttl()
             if frame.ip and frame.ip.ttl < 1:
-                self._connected_node.sys_log.info("Frame discarded as TTL limit reached")
+                self._connected_node.sys_log.warning("Frame discarded as TTL limit reached")
                 return False
             frame.set_received_timestamp()
             self.pcap.capture_inbound(frame)
diff --git a/src/primaite/simulator/system/applications/application.py b/src/primaite/simulator/system/applications/application.py
index ff71b51a..26603b43 100644
--- a/src/primaite/simulator/system/applications/application.py
+++ b/src/primaite/simulator/system/applications/application.py
@@ -2,13 +2,10 @@ from abc import abstractmethod
 from enum import Enum
 from typing import Any, Dict, Set
 
-from primaite import getLogger
 from primaite.interface.request import RequestResponse
 from primaite.simulator.core import RequestManager, RequestType
 from primaite.simulator.system.software import IOSoftware, SoftwareHealthState
 
-_LOGGER = getLogger(__name__)
-
 
 class ApplicationOperatingState(Enum):
     """Enumeration of Application Operating States."""
@@ -99,7 +96,7 @@ class Application(IOSoftware):
 
         if self.operating_state is not self.operating_state.RUNNING:
             # service is not running
-            _LOGGER.debug(f"Cannot perform action: {self.name} is {self.operating_state.name}")
+            self.sys_log.error(f"Cannot perform action: {self.name} is {self.operating_state.name}")
             return False
 
         return True
@@ -131,7 +128,6 @@ class Application(IOSoftware):
         """Install Application."""
         super().install()
         if self.operating_state == ApplicationOperatingState.CLOSED:
-            self.sys_log.info(f"Installing Application {self.name}")
             self.operating_state = ApplicationOperatingState.INSTALLING
 
     def receive(self, payload: Any, session_id: str, **kwargs) -> bool:
diff --git a/src/primaite/simulator/system/applications/database_client.py b/src/primaite/simulator/system/applications/database_client.py
index d304c200..8f451ce4 100644
--- a/src/primaite/simulator/system/applications/database_client.py
+++ b/src/primaite/simulator/system/applications/database_client.py
@@ -2,7 +2,6 @@ from ipaddress import IPv4Address
 from typing import Any, Dict, Optional
 from uuid import uuid4
 
-from primaite import getLogger
 from primaite.interface.request import RequestResponse
 from primaite.simulator.core import RequestManager, RequestType
 from primaite.simulator.network.transmission.network_layer import IPProtocol
@@ -10,8 +9,6 @@ from primaite.simulator.network.transmission.transport_layer import Port
 from primaite.simulator.system.applications.application import Application
 from primaite.simulator.system.core.software_manager import SoftwareManager
 
-_LOGGER = getLogger(__name__)
-
 
 class DatabaseClient(Application):
     """
@@ -136,7 +133,7 @@ class DatabaseClient(Application):
                 self.server_ip_address = server_ip_address
                 return True
             else:
-                self.sys_log.info(
+                self.sys_log.warning(
                     f"{self.name} {connection_id=}: DatabaseClient connection to {server_ip_address} declined"
                 )
                 return False
@@ -156,12 +153,12 @@ class DatabaseClient(Application):
     def disconnect(self) -> bool:
         """Disconnect from the Database Service."""
         if not self._can_perform_action():
-            self.sys_log.error(f"Unable to disconnect - {self.name} is {self.operating_state.name}")
+            self.sys_log.warning(f"Unable to disconnect - {self.name} is {self.operating_state.name}")
             return False
 
         # if there are no connections - nothing to disconnect
         if not self._server_connection_id:
-            self.sys_log.error(f"Unable to disconnect - {self.name} has no active connections.")
+            self.sys_log.warning(f"Unable to disconnect - {self.name} has no active connections.")
             return False
 
         # if no connection provided, disconnect the first connection
@@ -196,7 +193,7 @@ class DatabaseClient(Application):
             if success:
                 self.sys_log.info(f"{self.name}: Query successful {sql}")
                 return True
-            self.sys_log.info(f"{self.name}: Unable to run query {sql}")
+            self.sys_log.error(f"{self.name}: Unable to run query {sql}")
             return False
         else:
             software_manager: SoftwareManager = self.software_manager
@@ -236,7 +233,7 @@ class DatabaseClient(Application):
 
         if not connection_id:
             msg = "Cannot run sql query, could not establish connection with the server."
-            self.parent.sys_log(msg)
+            self.parent.sys_log.warning(msg)
             return False
 
         uuid = str(uuid4())
@@ -265,5 +262,5 @@ class DatabaseClient(Application):
                 status_code = payload.get("status_code")
                 self._query_success_tracker[query_id] = status_code == 200
                 if self._query_success_tracker[query_id]:
-                    _LOGGER.debug(f"Received payload {payload}")
+                    self.sys_log.debug(f"Received {payload=}")
         return True
diff --git a/src/primaite/simulator/system/applications/red_applications/data_manipulation_bot.py b/src/primaite/simulator/system/applications/red_applications/data_manipulation_bot.py
index ee276971..86dbbb7c 100644
--- a/src/primaite/simulator/system/applications/red_applications/data_manipulation_bot.py
+++ b/src/primaite/simulator/system/applications/red_applications/data_manipulation_bot.py
@@ -71,7 +71,7 @@ class DataManipulationBot(Application):
         """Return the database client that is installed on the same machine as the DataManipulationBot."""
         db_client = self.software_manager.software.get("DatabaseClient")
         if db_client is None:
-            _LOGGER.info(f"{self.__class__.__name__} cannot find a database client on its host.")
+            self.sys_log.warning(f"{self.__class__.__name__} cannot find a database client on its host.")
         return db_client
 
     def _init_request_manager(self) -> RequestManager:
@@ -127,7 +127,7 @@ class DataManipulationBot(Application):
         """
         if self.attack_stage == DataManipulationAttackStage.NOT_STARTED:
             # Bypass this stage as we're not dealing with logon for now
-            self.sys_log.info(f"{self.name}: ")
+            self.sys_log.debug(f"{self.name}: ")
             self.attack_stage = DataManipulationAttackStage.LOGON
 
     def _perform_port_scan(self, p_of_success: Optional[float] = 0.1):
@@ -145,7 +145,7 @@ class DataManipulationBot(Application):
                 # perform the port scan
                 port_is_open = True  # Temporary; later we can implement NMAP port scan.
                 if port_is_open:
-                    self.sys_log.info(f"{self.name}: ")
+                    self.sys_log.debug(f"{self.name}: ")
                     self.attack_stage = DataManipulationAttackStage.PORT_SCAN
 
     def _perform_data_manipulation(self, p_of_success: Optional[float] = 0.1):
@@ -177,7 +177,7 @@ class DataManipulationBot(Application):
                         self.sys_log.info(f"{self.name}: Data manipulation successful")
                         self.attack_stage = DataManipulationAttackStage.SUCCEEDED
                     else:
-                        self.sys_log.info(f"{self.name}: Data manipulation failed")
+                        self.sys_log.warning(f"{self.name}: Data manipulation failed")
                         self.attack_stage = DataManipulationAttackStage.FAILED
 
     def run(self):
@@ -191,7 +191,9 @@ class DataManipulationBot(Application):
     def attack(self) -> bool:
         """Perform the attack steps after opening the application."""
         if not self._can_perform_action():
-            _LOGGER.debug("Data manipulation application attempted to execute but it cannot perform actions right now.")
+            self.sys_log.warning(
+                "Data manipulation application attempted to execute but it cannot perform actions right now."
+            )
             self.run()
 
         self.num_executions += 1
@@ -206,7 +208,7 @@ class DataManipulationBot(Application):
         if not self._can_perform_action():
             return False
         if self.server_ip_address and self.payload:
-            self.sys_log.info(f"{self.name}: Running")
+            self.sys_log.debug(f"{self.name}: Running")
             self._logon()
             self._perform_port_scan(p_of_success=self.port_scan_p_of_success)
             self._perform_data_manipulation(p_of_success=self.data_manipulation_p_of_success)
@@ -220,7 +222,7 @@ class DataManipulationBot(Application):
             return True
 
         else:
-            self.sys_log.error(f"{self.name}: Failed to start as it requires both a target_ip_address and payload.")
+            self.sys_log.warning(f"{self.name}: Failed to start as it requires both a target_ip_address and payload.")
             return False
 
     def apply_timestep(self, timestep: int) -> None:
diff --git a/src/primaite/simulator/system/applications/red_applications/dos_bot.py b/src/primaite/simulator/system/applications/red_applications/dos_bot.py
index 27a4da05..53fc9740 100644
--- a/src/primaite/simulator/system/applications/red_applications/dos_bot.py
+++ b/src/primaite/simulator/system/applications/red_applications/dos_bot.py
@@ -122,7 +122,7 @@ class DoSBot(DatabaseClient):
 
         # DoS bot cannot do anything without a target
         if not self.target_ip_address or not self.target_port:
-            self.sys_log.error(
+            self.sys_log.warning(
                 f"{self.name} is not properly configured. {self.target_ip_address=}, {self.target_port=}"
             )
             return True
@@ -152,7 +152,7 @@ class DoSBot(DatabaseClient):
                 # perform the port scan
                 port_is_open = True  # Temporary; later we can implement NMAP port scan.
                 if port_is_open:
-                    self.sys_log.info(f"{self.name}: ")
+                    self.sys_log.debug(f"{self.name}: ")
                     self.attack_stage = DoSAttackStage.PORT_SCAN
 
     def _perform_dos(self):
diff --git a/src/primaite/simulator/system/applications/red_applications/ransomware_script.py b/src/primaite/simulator/system/applications/red_applications/ransomware_script.py
index 54880271..74d8a196 100644
--- a/src/primaite/simulator/system/applications/red_applications/ransomware_script.py
+++ b/src/primaite/simulator/system/applications/red_applications/ransomware_script.py
@@ -2,7 +2,6 @@ from enum import IntEnum
 from ipaddress import IPv4Address
 from typing import Dict, Optional
 
-from primaite import getLogger
 from primaite.game.science import simulate_trial
 from primaite.interface.request import RequestResponse
 from primaite.simulator.core import RequestManager, RequestType
@@ -11,8 +10,6 @@ from primaite.simulator.network.transmission.transport_layer import Port
 from primaite.simulator.system.applications.application import Application
 from primaite.simulator.system.applications.database_client import DatabaseClient
 
-_LOGGER = getLogger(__name__)
-
 
 class RansomwareAttackStage(IntEnum):
     """
@@ -94,7 +91,7 @@ class RansomwareScript(Application):
         """Return the database client that is installed on the same machine as the Ransomware Script."""
         db_client = self.software_manager.software.get("DatabaseClient")
         if db_client is None:
-            _LOGGER.info(f"{self.__class__.__name__} cannot find a database client on its host.")
+            self.sys_log.warning(f"{self.__class__.__name__} cannot find a database client on its host.")
         return db_client
 
     def _init_request_manager(self) -> RequestManager:
@@ -158,7 +155,7 @@ class RansomwareScript(Application):
                 self.attack_stage = RansomwareAttackStage.NOT_STARTED
             return True
         else:
-            self.sys_log.error(f"{self.name}: Failed to start as it requires both a target_ip_address and payload.")
+            self.sys_log.warning(f"{self.name}: Failed to start as it requires both a target_ip_address and payload.")
             return False
 
     def configure(
@@ -254,7 +251,7 @@ class RansomwareScript(Application):
     def attack(self) -> bool:
         """Perform the attack steps after opening the application."""
         if not self._can_perform_action():
-            _LOGGER.debug("Ransomware application is unable to perform it's actions.")
+            self.sys_log.warning("Ransomware application is unable to perform it's actions.")
             self.run()
         self.num_executions += 1
         return self._application_loop()
@@ -289,7 +286,7 @@ class RansomwareScript(Application):
                         self.sys_log.info(f"{self.name}: Payload failed")
                         self.attack_stage = RansomwareAttackStage.FAILED
         else:
-            self.sys_log.error("Attack Attempted to launch too quickly")
+            self.sys_log.warning("Attack Attempted to launch too quickly")
             self.attack_stage = RansomwareAttackStage.FAILED
 
     def _local_download(self):
diff --git a/src/primaite/simulator/system/applications/web_browser.py b/src/primaite/simulator/system/applications/web_browser.py
index e669ca32..0e6fec00 100644
--- a/src/primaite/simulator/system/applications/web_browser.py
+++ b/src/primaite/simulator/system/applications/web_browser.py
@@ -97,7 +97,7 @@ class WebBrowser(Application):
         try:
             parsed_url = urlparse(url)
         except Exception:
-            self.sys_log.error(f"{url} is not a valid URL")
+            self.sys_log.warning(f"{url} is not a valid URL")
             return False
 
         # get the IP address of the domain name via DNS
@@ -114,7 +114,7 @@ class WebBrowser(Application):
                 self.domain_name_ip_address = IPv4Address(parsed_url.hostname)
             except Exception:
                 # unable to deal with this request
-                self.sys_log.error(f"{self.name}: Unable to resolve URL {url}")
+                self.sys_log.warning(f"{self.name}: Unable to resolve URL {url}")
                 return False
 
         # create HTTPRequest payload
@@ -140,7 +140,8 @@ class WebBrowser(Application):
             )
             return self.latest_response.status_code is HttpStatusCode.OK
         else:
-            self.sys_log.error(f"Error sending Http Packet {str(payload)}")
+            self.sys_log.warning(f"{self.name}: Error sending Http Packet")
+            self.sys_log.debug(f"{self.name}: {payload=}")
             self.history.append(
                 WebBrowser.BrowserHistoryItem(
                     url=url, status=self.BrowserHistoryItem._HistoryItemStatus.SERVER_UNREACHABLE
@@ -181,7 +182,8 @@ class WebBrowser(Application):
         :return: True if successful, False otherwise.
         """
         if not isinstance(payload, HttpResponsePacket):
-            self.sys_log.error(f"{self.name} received a packet that is not an HttpResponsePacket")
+            self.sys_log.warning(f"{self.name} received a packet that is not an HttpResponsePacket")
+            self.sys_log.debug(f"{self.name}: {payload=}")
             return False
         self.sys_log.info(f"{self.name}: Received HTTP {payload.status_code.value}")
         self.latest_response = payload
diff --git a/src/primaite/simulator/system/core/software_manager.py b/src/primaite/simulator/system/core/software_manager.py
index e6fe7b23..ddc391df 100644
--- a/src/primaite/simulator/system/core/software_manager.py
+++ b/src/primaite/simulator/system/core/software_manager.py
@@ -87,7 +87,7 @@ class SoftwareManager:
         # TODO: Software manager and node itself both have an install method. Need to refactor to have more logical
         # separation of concerns.
         if software_class in self._software_class_to_name_map:
-            self.sys_log.info(f"Cannot install {software_class} as it is already installed")
+            self.sys_log.warning(f"Cannot install {software_class} as it is already installed")
             return
         software = software_class(
             software_manager=self, sys_log=self.sys_log, file_system=self.file_system, dns_server=self.dns_server
@@ -97,7 +97,6 @@ class SoftwareManager:
         software.software_manager = self
         self.software[software.name] = software
         self.port_protocol_mapping[(software.port, software.protocol)] = software
-        self.sys_log.info(f"Installed {software.name}")
         if isinstance(software, Application):
             software.operating_state = ApplicationOperatingState.CLOSED
 
@@ -144,7 +143,7 @@ class SoftwareManager:
         if receiver:
             receiver.receive_payload(payload)
         else:
-            self.sys_log.error(f"No Service of Application found with the name {target_software}")
+            self.sys_log.warning(f"No Service of Application found with the name {target_software}")
 
     def send_payload_to_session_manager(
         self,
@@ -196,7 +195,7 @@ class SoftwareManager:
                 payload=payload, session_id=session_id, from_network_interface=from_network_interface, frame=frame
             )
         else:
-            self.sys_log.error(f"No service or application found for port {port} and protocol {protocol}")
+            self.sys_log.warning(f"No service or application found for port {port} and protocol {protocol}")
         pass
 
     def show(self, markdown: bool = False):
diff --git a/src/primaite/simulator/system/core/sys_log.py b/src/primaite/simulator/system/core/sys_log.py
index c10f7d3c..d3afce94 100644
--- a/src/primaite/simulator/system/core/sys_log.py
+++ b/src/primaite/simulator/system/core/sys_log.py
@@ -3,7 +3,7 @@ from pathlib import Path
 
 from prettytable import MARKDOWN, PrettyTable
 
-from primaite.simulator import SIM_OUTPUT
+from primaite.simulator import LogLevel, SIM_OUTPUT
 
 
 class _NotJSONFilter(logging.Filter):
@@ -52,6 +52,7 @@ class SysLog:
         file_handler.setFormatter(logging.Formatter(log_format))
 
         self.logger = logging.getLogger(f"{self.hostname}_sys_log")
+        self.logger.handlers.clear()  # clear handlers
         self.logger.setLevel(logging.DEBUG)
         self.logger.addHandler(file_handler)
 
@@ -99,6 +100,9 @@ class SysLog:
         :param msg: The message to be logged.
         :param to_terminal: If True, prints to the terminal too.
         """
+        if SIM_OUTPUT.sys_log_level > LogLevel.DEBUG:
+            return
+
         if SIM_OUTPUT.save_sys_logs:
             self.logger.debug(msg)
         self._write_to_terminal(msg, "DEBUG", to_terminal)
@@ -110,6 +114,9 @@ class SysLog:
         :param msg: The message to be logged.
         :param to_terminal: If True, prints to the terminal too.
         """
+        if SIM_OUTPUT.sys_log_level > LogLevel.INFO:
+            return
+
         if SIM_OUTPUT.save_sys_logs:
             self.logger.info(msg)
         self._write_to_terminal(msg, "INFO", to_terminal)
@@ -121,6 +128,9 @@ class SysLog:
         :param msg: The message to be logged.
         :param to_terminal: If True, prints to the terminal too.
         """
+        if SIM_OUTPUT.sys_log_level > LogLevel.WARNING:
+            return
+
         if SIM_OUTPUT.save_sys_logs:
             self.logger.warning(msg)
         self._write_to_terminal(msg, "WARNING", to_terminal)
@@ -132,6 +142,9 @@ class SysLog:
         :param msg: The message to be logged.
         :param to_terminal: If True, prints to the terminal too.
         """
+        if SIM_OUTPUT.sys_log_level > LogLevel.ERROR:
+            return
+
         if SIM_OUTPUT.save_sys_logs:
             self.logger.error(msg)
         self._write_to_terminal(msg, "ERROR", to_terminal)
@@ -143,6 +156,9 @@ class SysLog:
         :param msg: The message to be logged.
         :param to_terminal: If True, prints to the terminal too.
         """
+        if LogLevel.CRITICAL < SIM_OUTPUT.sys_log_level:
+            return
+
         if SIM_OUTPUT.save_sys_logs:
             self.logger.critical(msg)
         self._write_to_terminal(msg, "CRITICAL", to_terminal)
diff --git a/src/primaite/simulator/system/services/arp/arp.py b/src/primaite/simulator/system/services/arp/arp.py
index 75bb03ae..bfbc8c9c 100644
--- a/src/primaite/simulator/system/services/arp/arp.py
+++ b/src/primaite/simulator/system/services/arp/arp.py
@@ -147,7 +147,7 @@ class ARP(Service):
                 payload=arp_packet, dst_ip_address=target_ip_address, dst_port=self.port, ip_protocol=self.protocol
             )
         else:
-            self.sys_log.error(
+            self.sys_log.warning(
                 "Cannot send ARP request as there is no outbound Network Interface to use. Try configuring the default "
                 "gateway."
             )
@@ -173,7 +173,7 @@ class ARP(Service):
                 ip_protocol=self.protocol,
             )
         else:
-            self.sys_log.error(
+            self.sys_log.warning(
                 "Cannot send ARP reply as there is no outbound Network Interface to use. Try configuring the default "
                 "gateway."
             )
diff --git a/src/primaite/simulator/system/services/database/database_service.py b/src/primaite/simulator/system/services/database/database_service.py
index 833b1fa5..9fdd0cdd 100644
--- a/src/primaite/simulator/system/services/database/database_service.py
+++ b/src/primaite/simulator/system/services/database/database_service.py
@@ -57,7 +57,7 @@ class DatabaseService(Service):
 
         # check if the backup server was configured
         if self.backup_server_ip is None:
-            self.sys_log.error(f"{self.name} - {self.sys_log.hostname}: not configured.")
+            self.sys_log.warning(f"{self.name} - {self.sys_log.hostname}: not configured.")
             return False
 
         software_manager: SoftwareManager = self.software_manager
@@ -110,7 +110,7 @@ class DatabaseService(Service):
         db_file = self.file_system.get_file(folder_name="database", file_name="database.db", include_deleted=True)
 
         if db_file is None:
-            self.sys_log.error("Database file not initialised.")
+            self.sys_log.warning("Database file not initialised.")
             return False
 
         # if the file was deleted, get the old visible health state
@@ -170,12 +170,12 @@ class DatabaseService(Service):
                     # try to create connection
                     if not self.add_connection(connection_id=connection_id):
                         status_code = 500
-                        self.sys_log.info(f"{self.name}: Connect request for {connection_id=} declined")
+                        self.sys_log.warning(f"{self.name}: Connect request for {connection_id=} declined")
                     else:
                         self.sys_log.info(f"{self.name}: Connect request for {connection_id=} authorised")
                 else:
                     status_code = 401  # Unauthorised
-                    self.sys_log.info(f"{self.name}: Connect request for {connection_id=} declined")
+                    self.sys_log.warning(f"{self.name}: Connect request for {connection_id=} declined")
         else:
             status_code = 404  # service not found
         return {
@@ -206,7 +206,7 @@ class DatabaseService(Service):
         self.sys_log.info(f"{self.name}: Running {query}")
 
         if not self.db_file:
-            self.sys_log.info(f"{self.name}: Failed to run {query} because the database file is missing.")
+            self.sys_log.error(f"{self.name}: Failed to run {query} because the database file is missing.")
             return {"status_code": 404, "type": "sql", "data": False}
 
         if query == "SELECT":
@@ -276,7 +276,7 @@ class DatabaseService(Service):
                 return {"status_code": 401, "data": False}
         else:
             # Invalid query
-            self.sys_log.info(f"{self.name}: Invalid {query}")
+            self.sys_log.warning(f"{self.name}: Invalid {query}")
             return {"status_code": 500, "data": False}
 
     def describe_state(self) -> Dict:
diff --git a/src/primaite/simulator/system/services/dns/dns_client.py b/src/primaite/simulator/system/services/dns/dns_client.py
index 967af6b2..063ff74f 100644
--- a/src/primaite/simulator/system/services/dns/dns_client.py
+++ b/src/primaite/simulator/system/services/dns/dns_client.py
@@ -72,7 +72,7 @@ class DNSClient(Service):
 
         # check if DNS server is configured
         if self.dns_server is None:
-            self.sys_log.error(f"{self.name}: DNS Server is not configured")
+            self.sys_log.warning(f"{self.name}: DNS Server is not configured")
             return False
 
         # check if the target domain is in the client's DNS cache
@@ -88,7 +88,7 @@ class DNSClient(Service):
         else:
             # return False if already reattempted
             if is_reattempt:
-                self.sys_log.info(f"{self.name}: Domain lookup for {target_domain} failed")
+                self.sys_log.warning(f"{self.name}: Domain lookup for {target_domain} failed")
                 return False
             else:
                 # send a request to check if domain name exists in the DNS Server
@@ -143,7 +143,8 @@ class DNSClient(Service):
         """
         # The payload should be a DNS packet
         if not isinstance(payload, DNSPacket):
-            _LOGGER.debug(f"{payload} is not a DNSPacket")
+            self.sys_log.warning(f"{self.name}: Payload is not a DNSPacket")
+            self.sys_log.debug(f"{self.name}: {payload}")
             return False
 
         if payload.dns_reply is not None:
@@ -156,5 +157,5 @@ class DNSClient(Service):
                 self.dns_cache[payload.dns_request.domain_name_request] = payload.dns_reply.domain_name_ip_address
                 return True
 
-        self.sys_log.error(f"Failed to resolve domain name {payload.dns_request.domain_name_request}")
+        self.sys_log.warning(f"Failed to resolve domain name {payload.dns_request.domain_name_request}")
         return False
diff --git a/src/primaite/simulator/system/services/dns/dns_server.py b/src/primaite/simulator/system/services/dns/dns_server.py
index 4d0ebbb8..7dbc5d60 100644
--- a/src/primaite/simulator/system/services/dns/dns_server.py
+++ b/src/primaite/simulator/system/services/dns/dns_server.py
@@ -90,7 +90,8 @@ class DNSServer(Service):
 
         # The payload should be a DNS packet
         if not isinstance(payload, DNSPacket):
-            _LOGGER.debug(f"{payload} is not a DNSPacket")
+            self.sys_log.warning(f"{payload} is not a DNSPacket")
+            self.sys_log.debug(f"{payload} is not a DNSPacket")
             return False
 
         # cast payload into a DNS packet
diff --git a/src/primaite/simulator/system/services/ftp/ftp_client.py b/src/primaite/simulator/system/services/ftp/ftp_client.py
index 7c334ced..f2b78d52 100644
--- a/src/primaite/simulator/system/services/ftp/ftp_client.py
+++ b/src/primaite/simulator/system/services/ftp/ftp_client.py
@@ -82,7 +82,7 @@ class FTPClient(FTPServiceABC):
             else:
                 if is_reattempt:
                     # reattempt failed
-                    self.sys_log.info(
+                    self.sys_log.warning(
                         f"{self.name}: Unable to connect to FTP Server "
                         f"{dest_ip_address} via port {payload.ftp_command_args.value}"
                     )
@@ -93,7 +93,7 @@ class FTPClient(FTPServiceABC):
                         dest_ip_address=dest_ip_address, dest_port=dest_port, session_id=session_id, is_reattempt=True
                     )
         else:
-            self.sys_log.error(f"{self.name}: Unable to send FTPPacket")
+            self.sys_log.warning(f"{self.name}: Unable to send FTPPacket")
             return False
 
     def _disconnect_from_server(
@@ -158,7 +158,7 @@ class FTPClient(FTPServiceABC):
         # check if the file to transfer exists on the client
         file_to_transfer: File = self.file_system.get_file(folder_name=src_folder_name, file_name=src_file_name)
         if not file_to_transfer:
-            self.sys_log.error(f"Unable to send file that does not exist: {src_folder_name}/{src_file_name}")
+            self.sys_log.warning(f"Unable to send file that does not exist: {src_folder_name}/{src_file_name}")
             return False
 
         # check if FTP is currently connected to IP
@@ -253,7 +253,8 @@ class FTPClient(FTPServiceABC):
         :type: session_id: Optional[str]
         """
         if not isinstance(payload, FTPPacket):
-            self.sys_log.error(f"{payload} is not an FTP packet")
+            self.sys_log.warning(f"{self.name}: Payload is not an FTP packet")
+            self.sys_log.debug(f"{self.name}: {payload}")
             return False
 
         """
diff --git a/src/primaite/simulator/system/services/ftp/ftp_server.py b/src/primaite/simulator/system/services/ftp/ftp_server.py
index c5330de2..de714a10 100644
--- a/src/primaite/simulator/system/services/ftp/ftp_server.py
+++ b/src/primaite/simulator/system/services/ftp/ftp_server.py
@@ -70,7 +70,8 @@ class FTPServer(FTPServiceABC):
     def receive(self, payload: Any, session_id: Optional[str] = None, **kwargs) -> bool:
         """Receives a payload from the SessionManager."""
         if not isinstance(payload, FTPPacket):
-            self.sys_log.error(f"{payload} is not an FTP packet")
+            self.sys_log.warning(f"{self.name}: Payload is not an FTP packet")
+            self.sys_log.debug(f"{self.name}: {payload}")
             return False
 
         if not super().receive(payload=payload, session_id=session_id, **kwargs):
diff --git a/src/primaite/simulator/system/services/icmp/icmp.py b/src/primaite/simulator/system/services/icmp/icmp.py
index 103d1c60..c4b4173f 100644
--- a/src/primaite/simulator/system/services/icmp/icmp.py
+++ b/src/primaite/simulator/system/services/icmp/icmp.py
@@ -95,7 +95,7 @@ class ICMP(Service):
         network_interface = self.software_manager.session_manager.resolve_outbound_network_interface(target_ip_address)
 
         if not network_interface:
-            self.sys_log.error(
+            self.sys_log.warning(
                 "Cannot send ICMP echo request as there is no outbound Network Interface to use. Try configuring the "
                 "default gateway."
             )
@@ -130,7 +130,7 @@ class ICMP(Service):
         )
 
         if not network_interface:
-            self.sys_log.error(
+            self.sys_log.warning(
                 "Cannot send ICMP echo reply as there is no outbound Network Interface to use. Try configuring the "
                 "default gateway."
             )
diff --git a/src/primaite/simulator/system/services/ntp/ntp_client.py b/src/primaite/simulator/system/services/ntp/ntp_client.py
index fe351dba..dcc502c7 100644
--- a/src/primaite/simulator/system/services/ntp/ntp_client.py
+++ b/src/primaite/simulator/system/services/ntp/ntp_client.py
@@ -87,7 +87,7 @@ class NTPClient(Service):
         :return: True if successful, False otherwise.
         """
         if not isinstance(payload, NTPPacket):
-            _LOGGER.debug(f"{self.name}: Failed to parse NTP update")
+            self.sys_log.warning(f"{self.name}: Failed to parse NTP update")
             return False
         if payload.ntp_reply.ntp_datetime:
             self.time = payload.ntp_reply.ntp_datetime
@@ -115,7 +115,6 @@ class NTPClient(Service):
         :param timestep: The current timestep number. (Amount of time since simulation episode began)
         :type timestep: int
         """
-        self.sys_log.info(f"{self.name} apply_timestep")
         super().apply_timestep(timestep)
         if self.operating_state == ServiceOperatingState.RUNNING:
             # request time from server
diff --git a/src/primaite/simulator/system/services/ntp/ntp_server.py b/src/primaite/simulator/system/services/ntp/ntp_server.py
index f9d9ee7c..01d10b84 100644
--- a/src/primaite/simulator/system/services/ntp/ntp_server.py
+++ b/src/primaite/simulator/system/services/ntp/ntp_server.py
@@ -51,7 +51,8 @@ class NTPServer(Service):
         :return: True if valid NTP request else False.
         """
         if not (isinstance(payload, NTPPacket)):
-            _LOGGER.debug(f"{payload} is not a NTPPacket")
+            self.sys_log.warning(f"{self.name}: Payload is not a NTPPacket")
+            self.sys_log.debug(f"{self.name}: {payload}")
             return False
         payload: NTPPacket = payload
 
diff --git a/src/primaite/simulator/system/services/service.py b/src/primaite/simulator/system/services/service.py
index b2a6f685..caaefc06 100644
--- a/src/primaite/simulator/system/services/service.py
+++ b/src/primaite/simulator/system/services/service.py
@@ -59,7 +59,7 @@ class Service(IOSoftware):
 
         if self.operating_state is not ServiceOperatingState.RUNNING:
             # service is not running
-            _LOGGER.debug(f"Cannot perform action: {self.name} is {self.operating_state.name}")
+            self.sys_log.debug(f"Cannot perform action: {self.name} is {self.operating_state.name}")
             return False
 
         return True
@@ -187,6 +187,6 @@ class Service(IOSoftware):
         super().apply_timestep(timestep)
         if self.operating_state == ServiceOperatingState.RESTARTING:
             if self.restart_countdown <= 0:
-                _LOGGER.debug(f"Restarting finished for service {self.name}")
+                self.sys_log.debug(f"Restarting finished for service {self.name}")
                 self.operating_state = ServiceOperatingState.RUNNING
             self.restart_countdown -= 1
diff --git a/src/primaite/simulator/system/services/web_server/web_server.py b/src/primaite/simulator/system/services/web_server/web_server.py
index 5e7591e9..c0eb0632 100644
--- a/src/primaite/simulator/system/services/web_server/web_server.py
+++ b/src/primaite/simulator/system/services/web_server/web_server.py
@@ -167,7 +167,8 @@ class WebServer(Service):
 
         # check if the payload is an HTTPPacket
         if not isinstance(payload, HttpRequestPacket):
-            self.sys_log.error("Payload is not an HTTPPacket")
+            self.sys_log.warning(f"{self.name}: Payload is not an HTTPPacket")
+            self.sys_log.debug(f"{self.name}: {payload}")
             return False
 
         return self._process_http_request(payload=payload, session_id=session_id)
diff --git a/src/primaite/simulator/system/software.py b/src/primaite/simulator/system/software.py
index 50c96c17..b609b0b2 100644
--- a/src/primaite/simulator/system/software.py
+++ b/src/primaite/simulator/system/software.py
@@ -6,7 +6,7 @@ from ipaddress import IPv4Address, IPv4Network
 from typing import Any, Dict, Optional, TYPE_CHECKING, Union
 
 from primaite.interface.request import RequestResponse
-from primaite.simulator.core import _LOGGER, RequestManager, RequestType, SimComponent
+from primaite.simulator.core import RequestManager, RequestType, SimComponent
 from primaite.simulator.file_system.file_system import FileSystem, Folder
 from primaite.simulator.network.hardware.node_operating_state import NodeOperatingState
 from primaite.simulator.network.transmission.network_layer import IPProtocol
@@ -287,7 +287,9 @@ class IOSoftware(Software):
         Returns true if the software can perform actions.
         """
         if self.software_manager and self.software_manager.node.operating_state != NodeOperatingState.ON:
-            _LOGGER.debug(f"{self.name} Error: {self.software_manager.node.hostname} is not online.")
+            self.software_manager.node.sys_log.error(
+                f"{self.name} Error: {self.software_manager.node.hostname} is not online."
+            )
             return False
         return True
 
@@ -308,7 +310,7 @@ class IOSoftware(Software):
         # if over or at capacity, set to overwhelmed
         if len(self._connections) >= self.max_sessions:
             self.set_health_state(SoftwareHealthState.OVERWHELMED)
-            self.sys_log.error(f"{self.name}: Connect request for {connection_id=} declined. Service is at capacity.")
+            self.sys_log.warning(f"{self.name}: Connect request for {connection_id=} declined. Service is at capacity.")
             return False
         else:
             # if service was previously overwhelmed, set to good because there is enough space for connections
@@ -327,7 +329,7 @@ class IOSoftware(Software):
                 self.sys_log.info(f"{self.name}: Connect request for {connection_id=} authorised")
                 return True
             # connection with given id already exists
-            self.sys_log.error(
+            self.sys_log.warning(
                 f"{self.name}: Connect request for {connection_id=} declined. Connection already exists."
             )
             return False
diff --git a/tests/assets/configs/basic_switched_network.yaml b/tests/assets/configs/basic_switched_network.yaml
index 15dd377e..37505f6e 100644
--- a/tests/assets/configs/basic_switched_network.yaml
+++ b/tests/assets/configs/basic_switched_network.yaml
@@ -8,6 +8,7 @@ io_settings:
   save_step_metadata: false
   save_pcap_logs: true
   save_sys_logs: true
+  sys_log_level: WARNING
 
 
 game:
@@ -60,6 +61,102 @@ agents:
         frequency: 4
         variance: 3
 
+
+
+  - ref: defender
+    team: BLUE
+    type: ProxyAgent
+
+    observation_space:
+      type: CUSTOM
+      options:
+        components:
+          - type: NODES
+            label: NODES
+            options:
+              hosts:
+                - hostname: client_1
+                - hostname: client_2
+                - hostname: client_3
+              num_services: 1
+              num_applications: 0
+              num_folders: 1
+              num_files: 1
+              num_nics: 2
+              include_num_access: false
+              include_nmne: true
+              routers:
+                - hostname: router_1
+              num_ports: 0
+              ip_list:
+                - 192.168.10.21
+                - 192.168.10.22
+                - 192.168.10.23
+              wildcard_list:
+                - 0.0.0.1
+              port_list:
+                - 80
+                - 5432
+              protocol_list:
+                - ICMP
+                - TCP
+                - UDP
+              num_rules: 10
+
+          - type: LINKS
+            label: LINKS
+            options:
+              link_references:
+                - switch_1:eth-1<->client_1:eth-1
+                - switch_1:eth-2<->client_2:eth-1
+          - type: "NONE"
+            label: ICS
+            options: {}
+
+    action_space:
+      action_list:
+        - type: DONOTHING
+
+      action_map:
+          0:
+            action: DONOTHING
+            options: {}
+      options:
+        nodes:
+        - node_name: switch
+        - node_name: client_1
+        - node_name: client_2
+        - node_name: client_3
+        max_folders_per_node: 2
+        max_files_per_folder: 2
+        max_services_per_node: 2
+        max_nics_per_node: 8
+        max_acl_rules: 10
+        ip_list:
+          - 192.168.10.21
+          - 192.168.10.22
+          - 192.168.10.23
+
+    reward_function:
+      reward_components:
+        - type: DATABASE_FILE_INTEGRITY
+          weight: 0.5
+          options:
+            node_hostname: database_server
+            folder_name: database
+            file_name: database.db
+
+
+        - type: WEB_SERVER_404_PENALTY
+          weight: 0.5
+          options:
+            node_hostname: web_server
+            service_name: web_server_web_service
+
+
+    agent_settings:
+      flatten_obs: true
+
 simulation:
   network:
     nodes:
@@ -75,6 +172,7 @@ simulation:
       default_gateway: 192.168.10.1
       dns_server: 192.168.1.10
       applications:
+      - type: RansomwareScript
       - type: WebBrowser
         options:
           target_url: http://arcd.com/users/
diff --git a/tests/integration_tests/configuration_file_parsing/test_io_settings.py b/tests/integration_tests/configuration_file_parsing/test_io_settings.py
new file mode 100644
index 00000000..e66350cf
--- /dev/null
+++ b/tests/integration_tests/configuration_file_parsing/test_io_settings.py
@@ -0,0 +1,36 @@
+from pathlib import Path
+from typing import Union
+
+import yaml
+
+from primaite.config.load import data_manipulation_config_path
+from primaite.game.game import PrimaiteGame
+from primaite.session.environment import PrimaiteGymEnv
+from primaite.simulator import LogLevel
+from tests import TEST_ASSETS_ROOT
+
+BASIC_CONFIG = TEST_ASSETS_ROOT / "configs/basic_switched_network.yaml"
+
+
+def load_config(config_path: Union[str, Path]) -> PrimaiteGame:
+    """Returns a PrimaiteGame object which loads the contents of a given yaml path."""
+    with open(config_path, "r") as f:
+        cfg = yaml.safe_load(f)
+
+    return PrimaiteGame.from_config(cfg)
+
+
+def test_io_settings():
+    """Test that the io_settings are loaded correctly."""
+    with open(BASIC_CONFIG, "r") as f:
+        cfg = yaml.safe_load(f)
+        env = PrimaiteGymEnv(game_config=cfg)
+
+        assert env.io.settings is not None
+
+        assert env.io.settings.sys_log_level is LogLevel.WARNING
+        assert env.io.settings.save_pcap_logs
+        assert env.io.settings.save_sys_logs
+        assert env.io.settings.save_step_metadata is False
+
+        assert env.io.settings.write_sys_log_to_terminal is False  # false by default
diff --git a/tests/unit_tests/_primaite/_simulator/_system/core/test_sys_log.py b/tests/unit_tests/_primaite/_simulator/_system/core/test_sys_log.py
new file mode 100644
index 00000000..56b58d71
--- /dev/null
+++ b/tests/unit_tests/_primaite/_simulator/_system/core/test_sys_log.py
@@ -0,0 +1,126 @@
+from uuid import uuid4
+
+import pytest
+
+from primaite.simulator import LogLevel, SIM_OUTPUT
+from primaite.simulator.system.core.sys_log import SysLog
+
+
+@pytest.fixture(scope="function")
+def syslog() -> SysLog:
+    return SysLog(hostname="test")
+
+
+def test_debug_sys_log_level(syslog, capsys):
+    """Test that the debug log level logs debug syslogs and above."""
+    SIM_OUTPUT.sys_log_level = LogLevel.DEBUG
+    SIM_OUTPUT.write_sys_log_to_terminal = True
+
+    test_string = str(uuid4())
+
+    syslog.debug(test_string)
+    syslog.info(test_string)
+    syslog.warning(test_string)
+    syslog.error(test_string)
+    syslog.critical(test_string)
+
+    captured = "".join(capsys.readouterr())
+
+    assert test_string in captured
+    assert "DEBUG" in captured
+    assert "INFO" in captured
+    assert "WARNING" in captured
+    assert "ERROR" in captured
+    assert "CRITICAL" in captured
+
+
+def test_info_sys_log_level(syslog, capsys):
+    """Test that the debug log level logs debug syslogs and above."""
+    SIM_OUTPUT.sys_log_level = LogLevel.INFO
+    SIM_OUTPUT.write_sys_log_to_terminal = True
+
+    test_string = str(uuid4())
+
+    syslog.debug(test_string)
+    syslog.info(test_string)
+    syslog.warning(test_string)
+    syslog.error(test_string)
+    syslog.critical(test_string)
+
+    captured = "".join(capsys.readouterr())
+
+    assert test_string in captured
+    assert "DEBUG" not in captured
+    assert "INFO" in captured
+    assert "WARNING" in captured
+    assert "ERROR" in captured
+    assert "CRITICAL" in captured
+
+
+def test_warning_sys_log_level(syslog, capsys):
+    """Test that the debug log level logs debug syslogs and above."""
+    SIM_OUTPUT.sys_log_level = LogLevel.WARNING
+    SIM_OUTPUT.write_sys_log_to_terminal = True
+
+    test_string = str(uuid4())
+
+    syslog.debug(test_string)
+    syslog.info(test_string)
+    syslog.warning(test_string)
+    syslog.error(test_string)
+    syslog.critical(test_string)
+
+    captured = "".join(capsys.readouterr())
+
+    assert test_string in captured
+    assert "DEBUG" not in captured
+    assert "INFO" not in captured
+    assert "WARNING" in captured
+    assert "ERROR" in captured
+    assert "CRITICAL" in captured
+
+
+def test_error_sys_log_level(syslog, capsys):
+    """Test that the debug log level logs debug syslogs and above."""
+    SIM_OUTPUT.sys_log_level = LogLevel.ERROR
+    SIM_OUTPUT.write_sys_log_to_terminal = True
+
+    test_string = str(uuid4())
+
+    syslog.debug(test_string)
+    syslog.info(test_string)
+    syslog.warning(test_string)
+    syslog.error(test_string)
+    syslog.critical(test_string)
+
+    captured = "".join(capsys.readouterr())
+
+    assert test_string in captured
+    assert "DEBUG" not in captured
+    assert "INFO" not in captured
+    assert "WARNING" not in captured
+    assert "ERROR" in captured
+    assert "CRITICAL" in captured
+
+
+def test_critical_sys_log_level(syslog, capsys):
+    """Test that the debug log level logs debug syslogs and above."""
+    SIM_OUTPUT.sys_log_level = LogLevel.CRITICAL
+    SIM_OUTPUT.write_sys_log_to_terminal = True
+
+    test_string = str(uuid4())
+
+    syslog.debug(test_string)
+    syslog.info(test_string)
+    syslog.warning(test_string)
+    syslog.error(test_string)
+    syslog.critical(test_string)
+
+    captured = "".join(capsys.readouterr())
+
+    assert test_string in captured
+    assert "DEBUG" not in captured
+    assert "INFO" not in captured
+    assert "WARNING" not in captured
+    assert "ERROR" not in captured
+    assert "CRITICAL" in captured