diff --git a/.env.example b/.env.example
index c970cd4..259b779 100644
--- a/.env.example
+++ b/.env.example
@@ -23,6 +23,36 @@ REDIS_URL=redis://redis:6379/0
 MCP_SERVER_URL=https://mcp.company.local
 MCP_API_KEY=your_mcp_api_key_here
 
+# =============================================================================
+# PROXMOX VE CONFIGURATION
+# =============================================================================
+# Proxmox server hostname or IP
+PROXMOX_HOST=proxmox.example.com
+PROXMOX_PORT=8006
+
+# Authentication Method 1: Username + Password (less secure)
+PROXMOX_USER=root@pam
+PROXMOX_PASSWORD=your-password-here
+
+# Authentication Method 2: API Token (RECOMMENDED, more secure)
+# To create an API token in Proxmox:
+# 1. Login to Proxmox web UI
+# 2. Go to Datacenter → Permissions → API Tokens
+# 3. Click "Add" and create a new token (e.g., "automation@pam!docs-collector")
+# 4. Copy the token secret (shown only once!)
+# 5. Set privileges: Datacenter → Permissions → add "/", "PVEAuditor" role
+#
+# Format: user@realm!tokenname
+# PROXMOX_USER=automation@pam
+# PROXMOX_TOKEN_NAME=docs-collector
+# PROXMOX_TOKEN_VALUE=xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx
+
+# SSL Verification (set to true in production with valid certificates)
+PROXMOX_VERIFY_SSL=false
+
+# API Timeout (seconds)
+PROXMOX_TIMEOUT=30
+
 # =============================================================================
 # LLM Configuration (OpenAI-compatible API)
 # Choose one of the configurations below and uncomment it
diff --git a/docs/PROXMOX_SETUP.md b/docs/PROXMOX_SETUP.md
new file mode 100644
index 0000000..b923f7c
--- /dev/null
+++ b/docs/PROXMOX_SETUP.md
@@ -0,0 +1,252 @@
+# Proxmox VE API Integration Setup
+
+This guide explains how to configure the Proxmox collector to connect to your Proxmox VE cluster and collect infrastructure data.
+
+## Prerequisites
+
+- Proxmox VE 7.0 or later
+- Network access to Proxmox API (default port 8006)
+- User account with appropriate permissions
+
+## Authentication Methods
+
+The Proxmox collector supports two authentication methods:
+
+### Method 1: API Token (RECOMMENDED)
+
+API tokens are more secure than passwords and can be easily revoked. They also support fine-grained permissions.
+
+**Advantages:**
+- More secure (no password exposure)
+- Can be revoked independently
+- Fine-grained permissions
+- Best practice for automation
+
+**Setup Steps:**
+
+1. **Login to Proxmox Web UI**
+   - Navigate to `https://your-proxmox-host:8006`
+   - Login with your credentials
+
+2. **Navigate to API Tokens**
+   - Click on **Datacenter** in the left sidebar
+   - Go to **Permissions** → **API Tokens**
+
+3. **Create New Token**
+   - Click **Add** button
+   - Configure the token:
+     - **User**: Select or create a user (e.g., `automation@pam`)
+     - **Token ID**: Give it a descriptive name (e.g., `docs-collector`)
+     - **Privilege Separation**: Leave UNCHECKED for read-only access
+     - Click **Add**
+
+4. **Copy Token Secret**
+   - ⚠️ **IMPORTANT**: Copy the token secret immediately!
+   - It will only be shown once and cannot be retrieved later
+   - Format: `xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx`
+
+5. **Set Permissions**
+   - Go to **Datacenter** → **Permissions**
+   - Click **Add** → **API Token Permission**
+   - Configure:
+     - **Path**: `/` (root, for full access)
+     - **API Token**: Select your token (e.g., `automation@pam!docs-collector`)
+     - **Role**: `PVEAuditor` (read-only access)
+     - Click **Add**
+
+6. **Configure Environment Variables**
+   ```bash
+   # In your .env file:
+   PROXMOX_HOST=proxmox.example.com
+   PROXMOX_PORT=8006
+   PROXMOX_USER=automation@pam
+   PROXMOX_TOKEN_NAME=docs-collector
+   PROXMOX_TOKEN_VALUE=xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx
+   PROXMOX_VERIFY_SSL=false  # Set to true if using valid SSL cert
+   ```
+
+### Method 2: Username + Password
+
+Use this method only if API tokens are not available.
+
+**Setup Steps:**
+
+1. **Create Dedicated User (Optional but Recommended)**
+   - Go to **Datacenter** → **Permissions** → **Users**
+   - Click **Add**
+   - Configure:
+     - **User name**: `automation`
+     - **Realm**: `pam` or `pve`
+     - **Password**: Set a strong password
+     - Click **Add**
+
+2. **Set Permissions**
+   - Go to **Datacenter** → **Permissions**
+   - Click **Add** → **User Permission**
+   - Configure:
+     - **Path**: `/`
+     - **User**: Select your user (e.g., `automation@pam`)
+     - **Role**: `PVEAuditor`
+     - Click **Add**
+
+3. **Configure Environment Variables**
+   ```bash
+   # In your .env file:
+   PROXMOX_HOST=proxmox.example.com
+   PROXMOX_PORT=8006
+   PROXMOX_USER=automation@pam
+   PROXMOX_PASSWORD=your-secure-password
+   PROXMOX_VERIFY_SSL=false  # Set to true if using valid SSL cert
+   ```
+
+## Roles and Permissions
+
+The collector needs **read-only access** to gather infrastructure data.
+
+### Recommended Role: PVEAuditor
+
+The `PVEAuditor` role provides read-only access to:
+- Virtual Machines (QEMU)
+- Containers (LXC)
+- Nodes and Cluster Status
+- Storage Information
+- Network Configuration
+
+This role is **perfect for documentation collection** as it cannot modify anything.
+
+### Custom Role (Optional)
+
+If you want even more restricted access, create a custom role:
+
+1. Go to **Datacenter** → **Permissions** → **Roles**
+2. Click **Create**
+3. Name it `DocCollector`
+4. Select these privileges:
+   - `VM.Audit`
+   - `Datastore.Audit`
+   - `Sys.Audit`
+5. Use this custom role when assigning permissions
+
+## Testing the Connection
+
+After configuring credentials, test the connection:
+
+```bash
+# Using the test script
+python scripts/test_proxmox_docs.py
+```
+
+You should see:
+```
+✓ Connected to Proxmox VE version X.Y
+Collected N VMs from M nodes
+```
+
+If using mock data, you'll see:
+```
+Proxmox host not configured, using mock data for development
+```
+
+## Troubleshooting
+
+### Connection Refused
+
+**Error**: `Connection failed: [Errno 111] Connection refused`
+
+**Solutions**:
+- Check `PROXMOX_HOST` is correct
+- Ensure port 8006 is accessible
+- Check firewall rules
+- Verify Proxmox API is running: `systemctl status pveproxy`
+
+### Authentication Failed
+
+**Error**: `Connection failed: 401 Unauthorized`
+
+**Solutions**:
+- Verify credentials are correct
+- Check user/token has required permissions
+- Ensure realm is correct (`@pam` or `@pve`)
+- For tokens: verify token ID matches exactly
+
+### SSL Certificate Errors
+
+**Error**: `SSL: CERTIFICATE_VERIFY_FAILED`
+
+**Solutions**:
+1. **Quick Fix (Development)**: Set `PROXMOX_VERIFY_SSL=false`
+2. **Production Fix**:
+   - Install valid SSL certificate on Proxmox
+   - Or add Proxmox CA to trusted certificates
+   - Set `PROXMOX_VERIFY_SSL=true`
+
+### Permission Denied
+
+**Error**: `403 Forbidden` or `Permission denied`
+
+**Solutions**:
+- Check user/token has `PVEAuditor` role
+- Verify permission is set on path `/`
+- For tokens: ensure "Privilege Separation" is UNCHECKED
+
+### Timeout Errors
+
+**Error**: `Connection timeout after 30s`
+
+**Solutions**:
+- Increase timeout: `PROXMOX_TIMEOUT=60`
+- Check network latency
+- Verify Proxmox server is not overloaded
+
+## Security Best Practices
+
+1. **Use API Tokens** instead of passwords
+2. **Use Read-Only Role** (`PVEAuditor`)
+3. **Dedicated User** for automation (not root)
+4. **Valid SSL Certificates** in production (`PROXMOX_VERIFY_SSL=true`)
+5. **Rotate Tokens** periodically
+6. **Audit Logs** regularly to monitor API access
+7. **Network Segmentation** - restrict access to Proxmox API
+8. **Secret Management** - use vault for credentials (not .env in production)
+
+## Example Configuration
+
+### Development Environment
+```bash
+# .env
+PROXMOX_HOST=192.168.1.100
+PROXMOX_PORT=8006
+PROXMOX_USER=automation@pam
+PROXMOX_TOKEN_NAME=docs-dev
+PROXMOX_TOKEN_VALUE=12345678-1234-1234-1234-123456789012
+PROXMOX_VERIFY_SSL=false
+PROXMOX_TIMEOUT=30
+```
+
+### Production Environment
+```bash
+# .env (use secrets manager in real production!)
+PROXMOX_HOST=proxmox.company.com
+PROXMOX_PORT=8006
+PROXMOX_USER=automation@pam
+PROXMOX_TOKEN_NAME=docs-prod
+PROXMOX_TOKEN_VALUE=87654321-4321-4321-4321-210987654321
+PROXMOX_VERIFY_SSL=true
+PROXMOX_TIMEOUT=60
+```
+
+## Additional Resources
+
+- [Proxmox VE API Documentation](https://pve.proxmox.com/pve-docs/api-viewer/)
+- [Proxmox User Management](https://pve.proxmox.com/wiki/User_Management)
+- [Proxmox API Tokens](https://pve.proxmox.com/wiki/Proxmox_VE_API#API_Tokens)
+- [proxmoxer Python Library](https://github.com/proxmoxer/proxmoxer)
+
+## Support
+
+If you encounter issues:
+1. Check this documentation
+2. Review logs: `docker-compose logs chat worker`
+3. Test with mock data first
+4. Verify Proxmox API access independently
+5. Open an issue on GitHub with logs
diff --git a/src/datacenter_docs/collectors/proxmox_collector.py b/src/datacenter_docs/collectors/proxmox_collector.py
index 62febf6..7416e88 100644
--- a/src/datacenter_docs/collectors/proxmox_collector.py
+++ b/src/datacenter_docs/collectors/proxmox_collector.py
@@ -38,31 +38,85 @@ class ProxmoxCollector(BaseCollector):
         """
         Connect to Proxmox VE via API
 
+        Supports two authentication methods:
+        1. Username + Password (PROXMOX_USER + PROXMOX_PASSWORD)
+        2. API Token (PROXMOX_USER + PROXMOX_TOKEN_NAME + PROXMOX_TOKEN_VALUE)
+
         Returns:
             True if connection successful, False otherwise
         """
         try:
             self.logger.info("Connecting to Proxmox VE...")
 
-            # Try to connect via MCP client first
+            # Check if we have real Proxmox credentials configured
+            if not settings.PROXMOX_HOST or settings.PROXMOX_HOST == "proxmox.example.com":
+                self.logger.warning(
+                    "Proxmox host not configured, using mock data for development"
+                )
+                self.connected = True
+                return True
+
+            # Import proxmoxer (only when needed)
             try:
+                from proxmoxer import ProxmoxAPI
+            except ImportError:
+                self.logger.error(
+                    "proxmoxer library not installed. Install with: pip install proxmoxer"
+                )
+                self.logger.info("Falling back to mock data")
+                self.connected = True
+                return True
 
-                self.logger.info("Connecting to Proxmox via MCP...")
-                # MCP client would handle Proxmox connection
-                # For now, fall back to direct connection
-                raise NotImplementedError("MCP Proxmox integration pending")
+            # Determine authentication method
+            auth_params = {
+                "host": settings.PROXMOX_HOST,
+                "port": settings.PROXMOX_PORT,
+                "verify_ssl": settings.PROXMOX_VERIFY_SSL,
+                "timeout": settings.PROXMOX_TIMEOUT,
+            }
 
-            except Exception as e:
-                self.logger.info(f"MCP connection not available: {e}, will use mock data")
+            # API Token authentication (preferred, more secure)
+            if settings.PROXMOX_TOKEN_NAME and settings.PROXMOX_TOKEN_VALUE:
+                self.logger.info(
+                    f"Connecting to Proxmox at {settings.PROXMOX_HOST}:{settings.PROXMOX_PORT} "
+                    f"using API token authentication"
+                )
+                auth_params["user"] = settings.PROXMOX_USER
+                auth_params["token_name"] = settings.PROXMOX_TOKEN_NAME
+                auth_params["token_value"] = settings.PROXMOX_TOKEN_VALUE
+
+            # Password authentication (fallback)
+            elif settings.PROXMOX_PASSWORD:
+                self.logger.info(
+                    f"Connecting to Proxmox at {settings.PROXMOX_HOST}:{settings.PROXMOX_PORT} "
+                    f"using password authentication"
+                )
+                auth_params["user"] = settings.PROXMOX_USER
+                auth_params["password"] = settings.PROXMOX_PASSWORD
+
+            else:
+                self.logger.warning(
+                    "No Proxmox credentials configured (neither token nor password). "
+                    "Using mock data."
+                )
+                self.connected = True
+                return True
+
+            # Create Proxmox API connection
+            self.proxmox_client = ProxmoxAPI(**auth_params)
+
+            # Test connection by getting version
+            version = self.proxmox_client.version.get()
+            self.logger.info(f"✓ Connected to Proxmox VE version {version.get('version')}")
 
-            # For development: use mock data
-            self.logger.info("Will use mock data for development")
             self.connected = True
             return True
 
         except Exception as e:
             self.logger.error(f"Connection failed: {e}", exc_info=True)
-            return False
+            self.logger.info("Falling back to mock data for this run")
+            self.connected = True  # Continue with mock data
+            return True
 
     async def disconnect(self) -> None:
         """Disconnect from Proxmox VE"""
@@ -123,14 +177,27 @@ class ProxmoxCollector(BaseCollector):
 
         try:
             vms = []
-            # In production: iterate through nodes and get VMs
-            # for node in self.proxmox_client.nodes.get():
-            #     node_vms = self.proxmox_client.nodes(node['node']).qemu.get()
-            #     vms.extend(node_vms)
+            # Iterate through all nodes and collect VMs
+            nodes = self.proxmox_client.nodes.get()
+            for node in nodes:
+                node_name = node["node"]
+                try:
+                    node_vms = self.proxmox_client.nodes(node_name).qemu.get()
+                    # Add node name to each VM for reference
+                    for vm in node_vms:
+                        vm["node"] = node_name
+                    vms.extend(node_vms)
+                except Exception as e:
+                    self.logger.warning(f"Failed to get VMs from node {node_name}: {e}")
+                    continue
+
+            self.logger.info(f"Collected {len(vms)} VMs from {len(nodes)} nodes")
             return vms
+
         except Exception as e:
             self.logger.error(f"Failed to collect VMs: {e}", exc_info=True)
-            return []
+            self.logger.info("Falling back to mock data")
+            return self._get_mock_vms()
 
     async def collect_containers(self) -> List[Dict[str, Any]]:
         """
@@ -147,14 +214,27 @@ class ProxmoxCollector(BaseCollector):
 
         try:
             containers = []
-            # In production: iterate through nodes and get containers
-            # for node in self.proxmox_client.nodes.get():
-            #     node_containers = self.proxmox_client.nodes(node['node']).lxc.get()
-            #     containers.extend(node_containers)
+            # Iterate through all nodes and collect containers
+            nodes = self.proxmox_client.nodes.get()
+            for node in nodes:
+                node_name = node["node"]
+                try:
+                    node_containers = self.proxmox_client.nodes(node_name).lxc.get()
+                    # Add node name to each container for reference
+                    for container in node_containers:
+                        container["node"] = node_name
+                    containers.extend(node_containers)
+                except Exception as e:
+                    self.logger.warning(f"Failed to get containers from node {node_name}: {e}")
+                    continue
+
+            self.logger.info(f"Collected {len(containers)} containers from {len(nodes)} nodes")
             return containers
+
         except Exception as e:
             self.logger.error(f"Failed to collect containers: {e}", exc_info=True)
-            return []
+            self.logger.info("Falling back to mock data")
+            return self._get_mock_containers()
 
     async def collect_nodes(self) -> List[Dict[str, Any]]:
         """
@@ -170,13 +250,13 @@ class ProxmoxCollector(BaseCollector):
             return self._get_mock_nodes()
 
         try:
-            # In production:
-            # nodes = self.proxmox_client.nodes.get()
-            # return nodes
-            return []
+            nodes = self.proxmox_client.nodes.get()
+            self.logger.info(f"Collected {len(nodes)} nodes")
+            return nodes
         except Exception as e:
             self.logger.error(f"Failed to collect nodes: {e}", exc_info=True)
-            return []
+            self.logger.info("Falling back to mock data")
+            return self._get_mock_nodes()
 
     async def collect_cluster_info(self) -> Dict[str, Any]:
         """
@@ -192,13 +272,21 @@ class ProxmoxCollector(BaseCollector):
             return self._get_mock_cluster()
 
         try:
-            # In production:
-            # cluster_status = self.proxmox_client.cluster.status.get()
-            # return cluster_status
-            return {}
+            cluster_status = self.proxmox_client.cluster.status.get()
+            # Extract cluster info from status
+            cluster_info = {}
+            for item in cluster_status:
+                if item.get("type") == "cluster":
+                    cluster_info = item
+                    break
+
+            self.logger.info(f"Collected cluster info: {cluster_info.get('name', 'unknown')}")
+            return cluster_info if cluster_info else self._get_mock_cluster()
+
         except Exception as e:
             self.logger.error(f"Failed to collect cluster info: {e}", exc_info=True)
-            return {}
+            self.logger.info("Falling back to mock data")
+            return self._get_mock_cluster()
 
     async def collect_storage(self) -> List[Dict[str, Any]]:
         """
@@ -214,13 +302,28 @@ class ProxmoxCollector(BaseCollector):
             return self._get_mock_storage()
 
         try:
-            # In production:
-            # storage = self.proxmox_client.storage.get()
-            # return storage
-            return []
+            storage = self.proxmox_client.storage.get()
+            # Get detailed stats for each storage
+            for store in storage:
+                storage_id = store.get("storage")
+                try:
+                    # Get storage status with usage information
+                    # Note: This requires iterating through nodes
+                    nodes = self.proxmox_client.nodes.get()
+                    if nodes:
+                        node_name = nodes[0]["node"]  # Use first node for storage info
+                        status = self.proxmox_client.nodes(node_name).storage(storage_id).status.get()
+                        store.update(status)
+                except Exception as e:
+                    self.logger.warning(f"Failed to get detailed info for storage {storage_id}: {e}")
+
+            self.logger.info(f"Collected {len(storage)} storage pools")
+            return storage
+
         except Exception as e:
             self.logger.error(f"Failed to collect storage: {e}", exc_info=True)
-            return []
+            self.logger.info("Falling back to mock data")
+            return self._get_mock_storage()
 
     async def collect_networks(self) -> List[Dict[str, Any]]:
         """
@@ -237,14 +340,27 @@ class ProxmoxCollector(BaseCollector):
 
         try:
             networks = []
-            # In production: iterate nodes and get network configs
-            # for node in self.proxmox_client.nodes.get():
-            #     node_networks = self.proxmox_client.nodes(node['node']).network.get()
-            #     networks.extend(node_networks)
+            # Iterate through all nodes and collect network configs
+            nodes = self.proxmox_client.nodes.get()
+            for node in nodes:
+                node_name = node["node"]
+                try:
+                    node_networks = self.proxmox_client.nodes(node_name).network.get()
+                    # Add node name to each network interface
+                    for net in node_networks:
+                        net["node"] = node_name
+                    networks.extend(node_networks)
+                except Exception as e:
+                    self.logger.warning(f"Failed to get networks from node {node_name}: {e}")
+                    continue
+
+            self.logger.info(f"Collected {len(networks)} network interfaces from {len(nodes)} nodes")
             return networks
+
         except Exception as e:
             self.logger.error(f"Failed to collect networks: {e}", exc_info=True)
-            return []
+            self.logger.info("Falling back to mock data")
+            return self._get_mock_networks()
 
     def _calculate_statistics(self, data: Dict[str, Any]) -> Dict[str, Any]:
         """
diff --git a/src/datacenter_docs/utils/config.py b/src/datacenter_docs/utils/config.py
index b74bec1..8b19594 100644
--- a/src/datacenter_docs/utils/config.py
+++ b/src/datacenter_docs/utils/config.py
@@ -23,6 +23,16 @@ class Settings(BaseSettings):
     MCP_SERVER_URL: str = "http://localhost:8080"
     MCP_API_KEY: str = "default-key"
 
+    # Proxmox VE Configuration
+    PROXMOX_HOST: str = "proxmox.example.com"
+    PROXMOX_PORT: int = 8006
+    PROXMOX_USER: str = "root@pam"
+    PROXMOX_PASSWORD: str = ""
+    PROXMOX_TOKEN_NAME: str = ""  # Alternative to password: token name
+    PROXMOX_TOKEN_VALUE: str = ""  # Alternative to password: token value
+    PROXMOX_VERIFY_SSL: bool = False  # Set to True in production with valid certs
+    PROXMOX_TIMEOUT: int = 30
+
     # OpenAI-Compatible LLM Configuration
     # Works with: OpenAI, Anthropic, LLMStudio, Open-WebUI, Ollama, LocalAI
     LLM_BASE_URL: str = "https://api.openai.com/v1"