diff --git a/doc/ChangeLog.md b/doc/ChangeLog.md
index b0563ba4d..bfc144e24 100644
--- a/doc/ChangeLog.md
+++ b/doc/ChangeLog.md
@@ -16,6 +16,8 @@ All notable changes to the project are documented in this file.
   production environments. See the documentation for usage examples
 - Add support for "routing interfaces", issue #647.  Lists interfaces with IP
   forwarding.  Inspect from CLI using `show interface`, look for `⇅` flag
+- Add operational data journal to statd with hierarchical time-based retention
+  policy, keeping snapshots from every 5 minutes (recent) to yearly (historical)
 
 ### Fixes
 
diff --git a/src/statd/Makefile.am b/src/statd/Makefile.am
index 38d2be05a..9dd4fa4d7 100644
--- a/src/statd/Makefile.am
+++ b/src/statd/Makefile.am
@@ -2,10 +2,17 @@ DISTCLEANFILES      = *~ *.d
 ACLOCAL_AMFLAGS     = -I m4
 
 sbin_PROGRAMS       = statd
-statd_SOURCES       = statd.c shared.c shared.h
+statd_SOURCES       = statd.c shared.c shared.h journal.c journal_retention.c journal.h
 statd_CPPFLAGS      = -D_DEFAULT_SOURCE -D_GNU_SOURCE
 statd_CFLAGS        = -W -Wall -Wextra
 statd_CFLAGS       += $(jansson_CFLAGS) $(libyang_CFLAGS) $(sysrepo_CFLAGS)
 statd_CFLAGS       += $(libsrx_CFLAGS) $(libite_CFLAGS)
 statd_LDADD         = $(jansson_LIBS) $(libyang_LIBS) $(sysrepo_LIBS)
-statd_LDADD        += $(libsrx_LIBS) $(libite_LIBS)
+statd_LDADD        += $(libsrx_LIBS) $(libite_LIBS) $(EV_LIBS) -lz
+
+# Test stub for journal retention policy (no dependencies, standalone)
+noinst_PROGRAMS     = journal_retention_stub
+journal_retention_stub_SOURCES  = journal_retention_stub.c journal_retention.c journal.h
+journal_retention_stub_CPPFLAGS = -D_DEFAULT_SOURCE -D_GNU_SOURCE -DJOURNAL_RETENTION_STUB
+journal_retention_stub_CFLAGS   = -W -Wall -Wextra
+journal_retention_stub_LDFLAGS  = -static
diff --git a/src/statd/configure.ac b/src/statd/configure.ac
index 375fe8fc9..f01346a06 100644
--- a/src/statd/configure.ac
+++ b/src/statd/configure.ac
@@ -43,11 +43,14 @@ PKG_CHECK_MODULES([sysrepo], [sysrepo >= 2.2.36])
 PKG_CHECK_MODULES([libsrx],  [libsrx  >= 1.0.0])
 
 AC_CHECK_HEADER([ev.h],
-    [AC_CHECK_LIB([ev], [ev_loop_new],
-        [],
-	[AC_MSG_ERROR("libev not found")] )],
+    [saved_LIBS="$LIBS"
+     AC_CHECK_LIB([ev], [ev_loop_new],
+        [EV_LIBS="-lev"],
+	[AC_MSG_ERROR("libev not found")] )
+     LIBS="$saved_LIBS"],
     [AC_MSG_ERROR("ev.h not found")]
 )
+AC_SUBST([EV_LIBS])
 
 test "x$prefix" = xNONE && prefix=$ac_default_prefix
 test "x$exec_prefix" = xNONE && exec_prefix='${prefix}'
diff --git a/src/statd/journal.c b/src/statd/journal.c
new file mode 100644
index 000000000..a869e13d0
--- /dev/null
+++ b/src/statd/journal.c
@@ -0,0 +1,232 @@
+/* SPDX-License-Identifier: BSD-3-Clause */
+
+#include <stdio.h>
+#include <stdlib.h>
+#include <unistd.h>
+#include <sysrepo.h>
+#include <ev.h>
+#include <string.h>
+#include <errno.h>
+#include <time.h>
+#include <sys/stat.h>
+#include <pthread.h>
+#include <dirent.h>
+#include <zlib.h>
+
+#include <srx/common.h>
+
+#include "journal.h"
+
+#define JOURNAL_DIR "/var/lib/statd"
+#define DUMP_FILE "/var/lib/statd/operational.json"
+#define DUMP_INTERVAL 300.0  /* 5 minutes in seconds */
+
+static void journal_stop_cb(struct ev_loop *loop, struct ev_async *, int)
+{
+	DEBUG("Journal thread stop signal received");
+	ev_break(loop, EVBREAK_ALL);
+}
+
+static void get_timestamp_filename(char *buf, size_t len, time_t ts)
+{
+	struct tm *tm = gmtime(&ts);
+
+	snprintf(buf, len, "%04d%02d%02d-%02d%02d%02d.json.gz",
+		 tm->tm_year + 1900, tm->tm_mon + 1, tm->tm_mday,
+		 tm->tm_hour, tm->tm_min, tm->tm_sec);
+}
+
+/* Compress a file using gzip */
+static int gzip_file(const char *src, const char *dst)
+{
+	FILE *in;
+	gzFile gz;
+	char buf[4096];
+	size_t n;
+
+	in = fopen(src, "r");
+	if (!in) {
+		ERROR("Error, opening %s: %s", src, strerror(errno));
+		return -1;
+	}
+
+	gz = gzopen(dst, "wb");
+	if (!gz) {
+		ERROR("Error, opening %s: %s", dst, strerror(errno));
+		fclose(in);
+		return -1;
+	}
+
+	while ((n = fread(buf, 1, sizeof(buf), in)) > 0) {
+		if (gzwrite(gz, buf, n) != (int)n) {
+			ERROR("Error, writing to %s", dst);
+			gzclose(gz);
+			fclose(in);
+			unlink(dst);
+			return -1;
+		}
+	}
+
+	gzclose(gz);
+	fclose(in);
+	return 0;
+}
+
+/* Create timestamped snapshot and update operational.json */
+static int create_snapshot(const struct lyd_node *tree)
+{
+	char timestamp_file[300];
+	char timestamp_path[512];
+	time_t now;
+	int ret;
+
+	/* Write latest snapshot as uncompressed operational.json for easy access */
+	ret = lyd_print_path(DUMP_FILE, tree, LYD_JSON, LYD_PRINT_WITHSIBLINGS);
+	if (ret != LY_SUCCESS) {
+		ERROR("Error, writing operational.json: %d", ret);
+		return -1;
+	}
+
+	/* Compress operational.json to timestamped archive */
+	now = time(NULL);
+	get_timestamp_filename(timestamp_file, sizeof(timestamp_file), now);
+	snprintf(timestamp_path, sizeof(timestamp_path), "%s/%s",
+		 JOURNAL_DIR, timestamp_file);
+
+	if (gzip_file(DUMP_FILE, timestamp_path) != 0) {
+		ERROR("Error, compressing snapshot to %s", timestamp_file);
+		return -1;
+	}
+
+	DEBUG("Created snapshot %s", timestamp_file);
+	return 0;
+}
+
+static void journal_timer_cb(struct ev_loop *, struct ev_timer *w, int)
+{
+	struct journal_ctx *jctx = (struct journal_ctx *)w->data;
+	struct timespec start, end;
+	struct snapshot *snapshots = NULL;
+	sr_conn_ctx_t *con;
+	const struct ly_ctx *ctx;
+	sr_data_t *sr_data = NULL;
+	sr_error_t err;
+	int snapshot_count = 0;
+	long duration_ms;
+
+	clock_gettime(CLOCK_MONOTONIC, &start);
+	DEBUG("Starting operational datastore dump");
+
+	con = sr_session_get_connection(jctx->sr_query_ses);
+	if (!con) {
+		ERROR("Error, getting sr connection for dump");
+		return;
+	}
+
+	ctx = sr_acquire_context(con);
+	if (!ctx) {
+		ERROR("Error, acquiring context for dump");
+		return;
+	}
+
+	/* Query ALL operational data via second session
+	 * This triggers our own operational callbacks running in main thread
+	 */
+	DEBUG("Calling sr_get_data on session %p", jctx->sr_query_ses);
+	err = sr_get_data(jctx->sr_query_ses, "/*", 0, 0, 0, &sr_data);
+	if (err != SR_ERR_OK) {
+		ERROR("Error, getting operational data: %s", sr_strerror(err));
+		sr_release_context(con);
+		return;
+	}
+	DEBUG("sr_get_data succeeded, got data tree: %p", sr_data ? sr_data->tree : NULL);
+
+	/* Create timestamped snapshot */
+	if (sr_data && sr_data->tree) {
+		if (create_snapshot(sr_data->tree) != 0) {
+			sr_release_data(sr_data);
+			sr_release_context(con);
+			return;
+		}
+	} else {
+		DEBUG("No operational data to dump");
+	}
+
+	sr_release_data(sr_data);
+	sr_release_context(con);
+
+	/* Apply retention policy */
+	if (journal_scan_snapshots(JOURNAL_DIR, &snapshots, &snapshot_count) == 0) {
+		DEBUG("Applying retention policy to %d snapshots", snapshot_count);
+		journal_apply_retention_policy(JOURNAL_DIR, snapshots, snapshot_count, time(NULL));
+		free(snapshots);
+	}
+
+	clock_gettime(CLOCK_MONOTONIC, &end);
+	duration_ms = (end.tv_sec - start.tv_sec) * 1000 +
+		      (end.tv_nsec - start.tv_nsec) / 1000000;
+
+	INFO("Journal snapshot created and retention applied (took %ld ms)", duration_ms);
+}
+
+static void *journal_thread_fn(void *arg)
+{
+	struct journal_ctx *jctx = (struct journal_ctx *)arg;
+	struct ev_timer journal_timer;
+
+	INFO("Journal thread started");
+
+	if (mkdir("/var/lib/statd", 0755) != 0 && errno != EEXIST) {
+		ERROR("Error, creating directory /var/lib/statd: %s", strerror(errno));
+	}
+
+	jctx->journal_loop = ev_loop_new(EVFLAG_AUTO);
+	if (!jctx->journal_loop) {
+		ERROR("Error, creating journal thread event loop");
+		return NULL;
+	}
+
+	/* Setup async watcher for stop signal */
+	ev_async_init(&jctx->journal_stop, journal_stop_cb);
+	ev_async_start(jctx->journal_loop, &jctx->journal_stop);
+
+	/* Setup timer for periodic dumps */
+	ev_timer_init(&journal_timer, journal_timer_cb, DUMP_INTERVAL, DUMP_INTERVAL);
+	journal_timer.data = jctx;
+	ev_timer_start(jctx->journal_loop, &journal_timer);
+
+	DEBUG("Journal thread entering event loop");
+	ev_run(jctx->journal_loop, 0);
+
+	ev_timer_stop(jctx->journal_loop, &journal_timer);
+	ev_async_stop(jctx->journal_loop, &jctx->journal_stop);
+	ev_loop_destroy(jctx->journal_loop);
+
+	INFO("Journal thread exiting");
+	return NULL;
+}
+
+int journal_start(struct journal_ctx *jctx, sr_session_ctx_t *sr_query_ses)
+{
+	int err;
+
+	jctx->sr_query_ses = sr_query_ses;
+	jctx->journal_thread_running = 1;
+
+	err = pthread_create(&jctx->journal_thread, NULL, journal_thread_fn, jctx);
+	if (err) {
+		ERROR("Error, creating journal thread: %s", strerror(err));
+		return err;
+	}
+
+	INFO("Periodic operational dump enabled (every %.0f seconds)", DUMP_INTERVAL);
+	return 0;
+}
+
+void journal_stop(struct journal_ctx *jctx)
+{
+	/* Signal thread to exit immediately via async watcher */
+	jctx->journal_thread_running = 0;
+	ev_async_send(jctx->journal_loop, &jctx->journal_stop);
+	pthread_join(jctx->journal_thread, NULL);
+}
diff --git a/src/statd/journal.h b/src/statd/journal.h
new file mode 100644
index 000000000..dc5784fa7
--- /dev/null
+++ b/src/statd/journal.h
@@ -0,0 +1,31 @@
+/* SPDX-License-Identifier: BSD-3-Clause */
+
+#ifndef STATD_JOURNAL_H_
+#define STATD_JOURNAL_H_
+
+#include <pthread.h>
+#include <sysrepo.h>
+#include <ev.h>
+#include <time.h>
+
+/* Snapshot structure for tracking journal files */
+struct snapshot {
+	char filename[256];
+	time_t timestamp;
+};
+
+struct journal_ctx {
+	sr_session_ctx_t *sr_query_ses;  /* Consumer session for queries */
+	struct ev_loop *journal_loop;    /* Event loop for journal thread */
+	pthread_t journal_thread;        /* Thread for periodic dumps */
+	struct ev_async journal_stop;    /* Signal to stop journal thread */
+	volatile int journal_thread_running; /* Flag to stop journal thread */
+};
+
+int journal_start(struct journal_ctx *jctx, sr_session_ctx_t *sr_query_ses);
+void journal_stop(struct journal_ctx *jctx);
+
+int journal_scan_snapshots(const char *dir, struct snapshot **snapshots, int *count);
+void journal_apply_retention_policy(const char *dir, struct snapshot *snapshots, int count, time_t now);
+
+#endif
diff --git a/src/statd/journal_retention.c b/src/statd/journal_retention.c
new file mode 100644
index 000000000..313bf9cf0
--- /dev/null
+++ b/src/statd/journal_retention.c
@@ -0,0 +1,291 @@
+/* SPDX-License-Identifier: BSD-3-Clause */
+
+#include <stdio.h>
+#include <stdlib.h>
+#include <string.h>
+#include <time.h>
+#include <dirent.h>
+#include <unistd.h>
+#include <errno.h>
+
+#ifndef JOURNAL_RETENTION_STUB
+#include <srx/common.h>
+#else
+/* Simple logging for test stub without srx dependency */
+#define ERROR(fmt, ...) fprintf(stderr, "ERROR: " fmt "\n", ##__VA_ARGS__)
+#define DEBUG(fmt, ...) do { } while (0)
+#endif
+
+#include "journal.h"
+
+/* Retention policy age thresholds */
+#define AGE_1_HOUR    (60 * 60)
+#define AGE_1_DAY     (24 * AGE_1_HOUR)
+#define AGE_1_WEEK    (7 * AGE_1_DAY)
+#define AGE_1_MONTH   (30 * AGE_1_DAY)
+#define AGE_1_YEAR    (365 * AGE_1_DAY)
+
+static int parse_timestamp_filename(const char *filename, time_t *ts)
+{
+	struct tm tm = {0};
+	int year, mon, day, hour, min, sec;
+
+	if (sscanf(filename, "%4d%2d%2d-%2d%2d%2d.json.gz",
+		   &year, &mon, &day, &hour, &min, &sec) != 6)
+		return -1;
+
+	tm.tm_year = year - 1900;
+	tm.tm_mon = mon - 1;
+	tm.tm_mday = day;
+	tm.tm_hour = hour;
+	tm.tm_min = min;
+	tm.tm_sec = sec;
+
+	*ts = timegm(&tm);
+	return 0;
+}
+
+/* Comparison function for qsort */
+static int snapshot_compare(const void *a, const void *b)
+{
+	const struct snapshot *sa = (const struct snapshot *)a;
+	const struct snapshot *sb = (const struct snapshot *)b;
+
+	if (sa->timestamp < sb->timestamp)
+		return -1;
+	if (sa->timestamp > sb->timestamp)
+		return 1;
+	return 0;
+}
+
+int journal_scan_snapshots(const char *dir, struct snapshot **out_snapshots, int *out_count)
+{
+	DIR *d = opendir(dir);
+	struct dirent *entry;
+	struct snapshot *snapshots = NULL;
+	int count = 0;
+	int capacity = 0;
+
+	if (!d) {
+		ERROR("Failed to open directory %s: %s", dir, strerror(errno));
+		return -1;
+	}
+
+	while ((entry = readdir(d)) != NULL) {
+		time_t ts;
+
+		if (strcmp(entry->d_name, "operational.json") == 0)
+			continue;
+		if (!strstr(entry->d_name, ".json.gz"))
+			continue;
+
+		if (parse_timestamp_filename(entry->d_name, &ts) != 0)
+			continue;
+
+		if (count >= capacity) {
+			struct snapshot *new_snapshots;
+
+			capacity = capacity ? capacity * 2 : 32;
+			new_snapshots = realloc(snapshots, capacity * sizeof(struct snapshot));
+			if (!new_snapshots) {
+				ERROR("Failed to allocate memory for snapshots");
+				free(snapshots);
+				closedir(d);
+				return -1;
+			}
+			snapshots = new_snapshots;
+		}
+
+		/* Add snapshot */
+		snprintf(snapshots[count].filename, sizeof(snapshots[count].filename),
+			 "%s", entry->d_name);
+		snapshots[count].timestamp = ts;
+		count++;
+	}
+
+	closedir(d);
+
+	/* Sort by timestamp (oldest first) */
+	if (count > 0)
+		qsort(snapshots, count, sizeof(struct snapshot), snapshot_compare);
+
+	*out_snapshots = snapshots;
+	*out_count = count;
+	return 0;
+}
+
+static void delete_snapshot(const char *dir, const char *filename)
+{
+	char path[512];
+
+	snprintf(path, sizeof(path), "%s/%s", dir, filename);
+	if (unlink(path) != 0)
+		ERROR("Failed to delete snapshot %s: %s", filename, strerror(errno));
+	else
+		DEBUG("Deleted snapshot %s", filename);
+}
+
+/* Check if this is the first snapshot in the given period by checking if there's
+ * an earlier snapshot in the same period */
+static int is_first_in_period(struct snapshot *snapshots, int count, int idx,
+			       int (*same_period)(time_t a, time_t b))
+{
+	int i;
+
+	for (i = 0; i < idx; i++) {
+		if (same_period(snapshots[i].timestamp, snapshots[idx].timestamp))
+			return 0;  /* Found earlier snapshot in same period */
+	}
+
+	return 1;  /* This is the first */
+}
+
+/* Check if two timestamps are in the same hour */
+static int same_hour(time_t a, time_t b)
+{
+	struct tm tm_a, tm_b;
+
+	gmtime_r(&a, &tm_a);
+	gmtime_r(&b, &tm_b);
+
+	return tm_a.tm_year == tm_b.tm_year &&
+	       tm_a.tm_yday == tm_b.tm_yday &&
+	       tm_a.tm_hour == tm_b.tm_hour;
+}
+
+/* Check if two timestamps are in the same day */
+static int same_day(time_t a, time_t b)
+{
+	struct tm tm_a, tm_b;
+
+	gmtime_r(&a, &tm_a);
+	gmtime_r(&b, &tm_b);
+
+	return tm_a.tm_year == tm_b.tm_year &&
+	       tm_a.tm_yday == tm_b.tm_yday;
+}
+
+/* Check if two timestamps are in the same week (Sunday-based) */
+static int same_week(time_t a, time_t b)
+{
+	struct tm tm_a, tm_b;
+	time_t sunday_a, sunday_b;
+
+	gmtime_r(&a, &tm_a);
+	gmtime_r(&b, &tm_b);
+
+	/* Calculate Sunday midnight for each timestamp */
+	tm_a.tm_mday -= tm_a.tm_wday;
+	tm_a.tm_hour = 0;
+	tm_a.tm_min = 0;
+	tm_a.tm_sec = 0;
+	sunday_a = timegm(&tm_a);
+
+	tm_b.tm_mday -= tm_b.tm_wday;
+	tm_b.tm_hour = 0;
+	tm_b.tm_min = 0;
+	tm_b.tm_sec = 0;
+	sunday_b = timegm(&tm_b);
+
+	return sunday_a == sunday_b;
+}
+
+/* Check if two timestamps are in the same month */
+static int same_month(time_t a, time_t b)
+{
+	struct tm tm_a, tm_b;
+
+	gmtime_r(&a, &tm_a);
+	gmtime_r(&b, &tm_b);
+
+	return tm_a.tm_year == tm_b.tm_year &&
+	       tm_a.tm_mon == tm_b.tm_mon;
+}
+
+/* Check if two timestamps are in the same year */
+static int same_year(time_t a, time_t b)
+{
+	struct tm tm_a, tm_b;
+
+	gmtime_r(&a, &tm_a);
+	gmtime_r(&b, &tm_b);
+
+	return tm_a.tm_year == tm_b.tm_year;
+}
+
+/* Keep all snapshots in the 5-minute bucket */
+static int should_keep_5min(struct snapshot *snapshots, int count, int idx)
+{
+	(void)snapshots;
+	(void)count;
+	(void)idx;
+	return 1;  /* Keep all */
+}
+
+static int should_keep_hourly(struct snapshot *snapshots, int count, int idx)
+{
+	return is_first_in_period(snapshots, count, idx, same_hour);
+}
+
+static int should_keep_daily(struct snapshot *snapshots, int count, int idx)
+{
+	return is_first_in_period(snapshots, count, idx, same_day);
+}
+
+static int should_keep_weekly(struct snapshot *snapshots, int count, int idx)
+{
+	return is_first_in_period(snapshots, count, idx, same_week);
+}
+
+static int should_keep_monthly(struct snapshot *snapshots, int count, int idx)
+{
+	return is_first_in_period(snapshots, count, idx, same_month);
+}
+
+static int should_keep_yearly(struct snapshot *snapshots, int count, int idx)
+{
+	return is_first_in_period(snapshots, count, idx, same_year);
+}
+
+/* Apply retention policy to snapshots */
+void journal_apply_retention_policy(const char *dir, struct snapshot *snapshots, int count, time_t now)
+{
+	int *keep;
+	int i;
+
+	if (count == 0)
+		return;
+
+	/* Mark snapshots to keep (1) or delete (0) */
+	keep = calloc(count, sizeof(int));
+	if (!keep) {
+		ERROR("Failed to allocate memory for retention policy");
+		return;
+	}
+
+	for (i = 0; i < count; i++) {
+		time_t age = now - snapshots[i].timestamp;
+
+		if (age <= AGE_1_HOUR) {
+			keep[i] = should_keep_5min(snapshots, count, i);
+		} else if (age <= AGE_1_DAY) {
+			keep[i] = should_keep_hourly(snapshots, count, i);
+		} else if (age <= AGE_1_WEEK) {
+			keep[i] = should_keep_daily(snapshots, count, i);
+		} else if (age <= AGE_1_MONTH) {
+			keep[i] = should_keep_weekly(snapshots, count, i);
+		} else if (age <= AGE_1_YEAR) {
+			keep[i] = should_keep_monthly(snapshots, count, i);
+		} else {
+			keep[i] = should_keep_yearly(snapshots, count, i);
+		}
+	}
+
+	/* Delete snapshots not marked for keeping */
+	for (i = 0; i < count; i++) {
+		if (!keep[i])
+			delete_snapshot(dir, snapshots[i].filename);
+	}
+
+	free(keep);
+}
diff --git a/src/statd/journal_retention_stub.c b/src/statd/journal_retention_stub.c
new file mode 100644
index 000000000..9bcde53db
--- /dev/null
+++ b/src/statd/journal_retention_stub.c
@@ -0,0 +1,44 @@
+/* SPDX-License-Identifier: BSD-3-Clause */
+
+/*
+ * Test stub for journal retention policy
+ *
+ * This program applies the retention policy to a directory of timestamped
+ * JSON snapshots. It's used by the Python unit tests.
+ *
+ * Usage: journal_retention_stub <directory> <now>
+ *   directory: Path to directory containing timestamped JSON snapshots
+ *   now: Unix timestamp (seconds since epoch) representing "current time"
+ *
+ * Example:
+ *   journal_retention_stub /tmp/testdir 1704067200
+ */
+
+#include <stdio.h>
+#include <stdlib.h>
+
+#include "journal.h"
+
+int main(int argc, char *argv[])
+{
+	struct snapshot *snapshots;
+	int snapshot_count;
+	time_t now;
+
+	if (argc != 3) {
+		fprintf(stderr, "Usage: %s <directory> <unix_timestamp>\n", argv[0]);
+		fprintf(stderr, "  directory: Path to snapshots directory\n");
+		fprintf(stderr, "  unix_timestamp: Current time as seconds since epoch\n");
+		return 1;
+	}
+
+	now = (time_t)atol(argv[2]);
+
+	if (journal_scan_snapshots(argv[1], &snapshots, &snapshot_count) != 0)
+		return 1;
+
+	journal_apply_retention_policy(argv[1], snapshots, snapshot_count, now);
+
+	free(snapshots);
+	return 0;
+}
diff --git a/src/statd/statd.c b/src/statd/statd.c
index 816670d66..bdd0024ec 100644
--- a/src/statd/statd.c
+++ b/src/statd/statd.c
@@ -7,6 +7,9 @@
 #include <ev.h>
 #include <string.h>
 #include <errno.h>
+#include <time.h>
+#include <sys/stat.h>
+#include <pthread.h>
 
 #include <asm/types.h>
 #include <sys/socket.h>
@@ -26,6 +29,7 @@
 #include <srx/systemv.h>
 
 #include "shared.h"
+#include "journal.h"
 
 /* New kernel feature, not in sys/mman.h yet */
 #ifndef MFD_NOEXEC_SEAL
@@ -59,8 +63,11 @@ struct sub {
 
 struct statd {
 	struct sub_head subs;
-	sr_session_ctx_t *sr_ses;
+	sr_session_ctx_t *sr_ses;        /* Provider session with callbacks */
+	sr_session_ctx_t *sr_query_ses;  /* Consumer session for queries */
+	sr_conn_ctx_t *sr_conn;          /* Connection (owns YANG context) */
 	struct ev_loop *ev_loop;
+	struct journal_ctx journal;      /* Journal thread context */
 };
 
 static int ly_add_yanger_data(const struct ly_ctx *ctx, struct lyd_node **parent,
@@ -447,7 +454,6 @@ int main(int argc, char *argv[])
 	struct ev_signal sigint_watcher, sigusr1_watcher;
 	int log_opts = LOG_PID | LOG_NDELAY;
 	struct statd statd = {};
-	sr_conn_ctx_t *sr_conn;
 	const char *env;
 	int err;
 
@@ -464,24 +470,37 @@ int main(int argc, char *argv[])
 
 	INFO("Status daemon starting");
 
-	err = sr_connect(SR_CONN_DEFAULT, &sr_conn);
+	err = sr_connect(SR_CONN_DEFAULT, &statd.sr_conn);
 	if (err) {
 		ERROR("Error, connecting to sysrepo: %s", sr_strerror(err));
 		return EXIT_FAILURE;
 	}
 	DEBUG("Connected to sysrepo");
 
-	err = sr_session_start(sr_conn, SR_DS_OPERATIONAL, &statd.sr_ses);
+	/* Session 1: Provider with operational callbacks */
+	err = sr_session_start(statd.sr_conn, SR_DS_OPERATIONAL, &statd.sr_ses);
 	if (err) {
-		ERROR("Error, start sysrepo session: %s", sr_strerror(err));
-		sr_disconnect(sr_conn);
+		ERROR("Error, start provider session: %s", sr_strerror(err));
+		sr_disconnect(statd.sr_conn);
 		return EXIT_FAILURE;
 	}
-	DEBUG("Session started (%p)", statd.sr_ses);
+	DEBUG("Provider session started (%p)", statd.sr_ses);
+
+	/* Session 2: Consumer for querying operational data */
+	err = sr_session_start(statd.sr_conn, SR_DS_OPERATIONAL, &statd.sr_query_ses);
+	if (err) {
+		ERROR("Error, start query session: %s", sr_strerror(err));
+		sr_session_stop(statd.sr_ses);
+		sr_disconnect(statd.sr_conn);
+		return EXIT_FAILURE;
+	}
+	DEBUG("Query session started (%p)", statd.sr_query_ses);
 
 	err = subscribe_to_all(&statd);
 	if (err) {
-		sr_disconnect(sr_conn);
+		sr_session_stop(statd.sr_query_ses);
+		sr_session_stop(statd.sr_ses);
+		sr_disconnect(statd.sr_conn);
 		return EXIT_FAILURE;
 	}
 
@@ -493,6 +512,14 @@ int main(int argc, char *argv[])
 	sigusr1_watcher.data = &statd;
 	ev_signal_start(statd.ev_loop, &sigusr1_watcher);
 
+	err = journal_start(&statd.journal, statd.sr_query_ses);
+	if (err) {
+		sr_session_stop(statd.sr_query_ses);
+		sr_session_stop(statd.sr_ses);
+		sr_disconnect(statd.sr_conn);
+		return EXIT_FAILURE;
+	}
+
 	/* Signal readiness to Finit */
 	pidfile(NULL);
 
@@ -501,9 +528,13 @@ int main(int argc, char *argv[])
 
 	/* We should never get here during normal operation */
 	INFO("Status daemon shutting down");
+
+	journal_stop(&statd.journal);
+
 	unsub_to_all(&statd);
+	sr_session_stop(statd.sr_query_ses);
 	sr_session_stop(statd.sr_ses);
-	sr_disconnect(sr_conn);
+	sr_disconnect(statd.sr_conn);
 
 	return EXIT_SUCCESS;
 }
diff --git a/test/case/statd/all.yaml b/test/case/statd/all.yaml
index b7993e159..ee1d006bb 100644
--- a/test/case/statd/all.yaml
+++ b/test/case/statd/all.yaml
@@ -5,5 +5,7 @@
   name: "containers"
 - case: interfaces-all/test
   name: "interfaces-all"
+- case: journal-retention/test.py
+  name: "journal-retention"
 - case: system/test
   name: "system"
diff --git a/test/case/statd/journal-retention/test.py b/test/case/statd/journal-retention/test.py
new file mode 100755
index 000000000..8888bc450
--- /dev/null
+++ b/test/case/statd/journal-retention/test.py
@@ -0,0 +1,157 @@
+#!/usr/bin/env python3
+"""
+Test journal retention policy
+
+This test simulates creating snapshots over a 13-month period and verifies
+that the retention policy keeps the first snapshot of each period:
+- Every 5 minutes for the last hour (13 snapshots)
+- First snapshot of each hour for the last day (23 snapshots)
+- First snapshot of each day for the last week (6 snapshots)
+- First snapshot of each week for the last month (3 snapshots)
+- First snapshot of each month for the last year (11 snapshots)
+- First snapshot of each year forever (1 snapshot per year)
+"""
+
+import os
+import sys
+import tempfile
+import subprocess
+from datetime import datetime
+
+from infamy.tap import Test
+
+def create_snapshot(test_dir, timestamp):
+    """Create an empty snapshot file with the given timestamp"""
+    dt = datetime.utcfromtimestamp(timestamp)
+    filename = dt.strftime("%Y%m%d-%H%M%S.json.gz")
+    path = os.path.join(test_dir, filename)
+    open(path, 'w').close()
+    return filename
+
+def count_snapshots(test_dir):
+    """Count compressed snapshot files in directory"""
+    return len([f for f in os.listdir(test_dir) if f.endswith('.json.gz')])
+
+def count_snapshots_by_age(test_dir, now):
+    """Count snapshots by age bucket"""
+    AGE_1_HOUR = 60 * 60
+    AGE_1_DAY = 24 * AGE_1_HOUR
+    AGE_1_WEEK = 7 * AGE_1_DAY
+    AGE_1_MONTH = 30 * AGE_1_DAY
+    AGE_1_YEAR = 365 * AGE_1_DAY
+
+    counts = {
+        'hour': 0,
+        'day': 0,
+        'week': 0,
+        'month': 0,
+        'year': 0,
+        'older': 0
+    }
+
+    for filename in os.listdir(test_dir):
+        if not filename.endswith('.json.gz'):
+            continue
+
+        # Parse timestamp from filename (YYYYMMDD-HHMMSS.json.gz)
+        try:
+            ts_str = filename.replace('.json.gz', '')
+            dt = datetime.strptime(ts_str, "%Y%m%d-%H%M%S")
+            ts = int(dt.timestamp())
+            age = now - ts
+
+            if age <= AGE_1_HOUR:
+                counts['hour'] += 1
+            elif age <= AGE_1_DAY:
+                counts['day'] += 1
+            elif age <= AGE_1_WEEK:
+                counts['week'] += 1
+            elif age <= AGE_1_MONTH:
+                counts['month'] += 1
+            elif age <= AGE_1_YEAR:
+                counts['year'] += 1
+            else:
+                counts['older'] += 1
+        except ValueError:
+            pass
+
+    return counts
+
+def run_retention_stub(stub_path, test_dir, now):
+    """Run the retention policy stub"""
+    result = subprocess.run(
+        [stub_path, test_dir, str(now)],
+        capture_output=True,
+        text=True
+    )
+    if result.returncode != 0:
+        print(f"Stub failed with exit code {result.returncode}")
+        print(f"Stderr: {result.stderr}")
+        print(f"Stdout: {result.stdout}")
+        raise Exception(f"Retention stub failed with exit code {result.returncode}")
+
+with Test() as test:
+    with test.step("Find journal_retention_stub binary"):
+        script_dir = os.path.dirname(os.path.abspath(__file__))
+        repo_root = os.path.abspath(os.path.join(script_dir, "../../../.."))
+        stub_path = os.path.join(repo_root, "output/build/statd-1.0/journal_retention_stub")
+
+        if not os.path.exists(stub_path):
+            stub_path = os.path.join(repo_root, "src/statd/journal_retention_stub")
+            if not os.path.exists(stub_path):
+                test.skip()
+
+        print(f"Using stub binary: {stub_path}")
+
+    with tempfile.TemporaryDirectory() as test_dir:
+        print(f"Using test directory: {test_dir}")
+
+        with test.step("Create 13 months of snapshots every 5 minutes"):
+            base_time = datetime(2024, 1, 1, 0, 0, 0)
+            start_time = int(base_time.timestamp())
+            interval_5min = 5 * 60
+            interval_1day = 24 * 3600
+            total_duration = 13 * 30 * 24 * 3600
+
+            t = start_time
+            last_retention_run = start_time
+            while t < start_time + total_duration:
+                create_snapshot(test_dir, t)
+                simulated_now = t
+
+                # Apply retention policy once per simulated day
+                if t - last_retention_run >= interval_1day:
+                    run_retention_stub(stub_path, test_dir, simulated_now)
+                    last_retention_run = t
+
+                t += interval_5min
+
+            # Final retention run
+            run_retention_stub(stub_path, test_dir, simulated_now)
+            print(f"Final simulated time: {datetime.utcfromtimestamp(simulated_now)}")
+
+        # Count remaining snapshots
+        counts = count_snapshots_by_age(test_dir, simulated_now)
+        print(f"Snapshot counts: hour={counts['hour']}, day={counts['day']}, "
+              f"week={counts['week']}, month={counts['month']}, "
+              f"year={counts['year']}, older={counts['older']}")
+
+        with test.step("Verify last hour retention (13 snapshots)"):
+            assert counts['hour'] == 13, f"Expected 13, got {counts['hour']}"
+
+        with test.step("Verify last day retention (23 snapshots)"):
+            assert counts['day'] == 23, f"Expected 23, got {counts['day']}"
+
+        with test.step("Verify last week retention (6 snapshots)"):
+            assert counts['week'] == 6, f"Expected 6, got {counts['week']}"
+
+        with test.step("Verify last month retention (3 snapshots)"):
+            assert counts['month'] == 3, f"Expected 3, got {counts['month']}"
+
+        with test.step("Verify last year retention (11 snapshots)"):
+            assert counts['year'] == 11, f"Expected 11, got {counts['year']}"
+
+        with test.step("Verify older than 1 year retention (1 snapshot)"):
+            assert counts['older'] == 1, f"Expected 1, got {counts['older']}"
+
+    test.succeed()