diff --git a/assets/config/gitlab-shell/config.yml b/assets/config/gitlab-shell/config.yml
index dd025d46..2fd82301 100644
--- a/assets/config/gitlab-shell/config.yml
+++ b/assets/config/gitlab-shell/config.yml
@@ -36,7 +36,7 @@ redis:
 
 # Log file.
 # Default is gitlab-shell.log in the root directory.
-# log_file: "/home/git/gitlab-shell/gitlab-shell.log"
+log_file: "/var/log/gitlab/gitlab-shell/gitlab-shell.log"
 
 # Log level. INFO by default
 log_level: INFO
diff --git a/assets/init b/assets/init
index 686c432f..6ed95f52 100755
--- a/assets/init
+++ b/assets/init
@@ -273,6 +273,7 @@ sed -i 's,HostKey /etc/ssh/,HostKey '"${GITLAB_DATA_DIR}"'/ssh/,g' -i /etc/ssh/s
 
 # populate /var/log/gitlab
 mkdir -m 0755 -p /var/log/gitlab/gitlab       && chown -R git:git /var/log/gitlab/gitlab
+mkdir -m 0755 -p /var/log/gitlab/gitlab-shell && chown -R git:git /var/log/gitlab/gitlab-shell
 
 cd ${GITLAB_INSTALL_DIR}
 
diff --git a/assets/setup/install b/assets/setup/install
index 142af2ae..a4f30a62 100755
--- a/assets/setup/install
+++ b/assets/setup/install
@@ -129,6 +129,19 @@ cat > /etc/logrotate.d/gitlab <<EOF
 }
 EOF
 
+# configure gitlab-shell log rotation
+cat > /etc/logrotate.d/gitlab <<EOF
+/var/log/gitlab/gitlab-shell/*.log {
+  weekly
+  missingok
+  rotate 52
+  compress
+  delaycompress
+  notifempty
+  copytruncate
+}
+EOF
+
 # configure supervisord to start unicorn
 cat > /etc/supervisor/conf.d/unicorn.conf <<EOF
 [program:unicorn]