diff --git a/.changes/unreleased/fixed-20260607-134043.yaml b/.changes/unreleased/fixed-20260607-134043.yaml
new file mode 100644
index 00000000..e3d83b44
--- /dev/null
+++ b/.changes/unreleased/fixed-20260607-134043.yaml
@@ -0,0 +1,6 @@
+kind: fixed
+body: Restrict file and directory permissions on auth, config, context, and log paths to prevent local credential exposure on multi-user systems
+time: 2026-06-07T13:40:43+02:00
+custom:
+    Author: iemejia
+    AuthorLink: https://github.com/iemejia
diff --git a/src/fabric_cli/core/fab_auth.py b/src/fabric_cli/core/fab_auth.py
index a12b890c..09516ac1 100644
--- a/src/fabric_cli/core/fab_auth.py
+++ b/src/fabric_cli/core/fab_auth.py
@@ -56,8 +56,9 @@ def __init__(self):
         self._load_env()
 
     def _save_auth(self):
-        with open(self.auth_file, "w") as file:
-            file.write(json.dumps(self._get_auth_info()))
+        from fabric_cli.core.fab_state_config import _write_restricted_file
+
+        _write_restricted_file(self.auth_file, json.dumps(self._get_auth_info()))
 
     def _load_auth(self):
         if os.path.exists(self.auth_file) and os.stat(self.auth_file).st_size != 0:
diff --git a/src/fabric_cli/core/fab_context.py b/src/fabric_cli/core/fab_context.py
index 10c9da2e..27ec58d5 100644
--- a/src/fabric_cli/core/fab_context.py
+++ b/src/fabric_cli/core/fab_context.py
@@ -159,8 +159,11 @@ def _save_context_to_file(self) -> None:
             }
 
             try:
-                with open(self._context_file, "w") as f:
-                    json.dump(context_data, f)
+                from fabric_cli.core.fab_state_config import _write_restricted_file
+
+                _write_restricted_file(
+                    self._context_file, json.dumps(context_data)
+                )
             except Exception:
                 utils_ui.print_warning(
                     "Warning: Failed to save context file. Context persistence may not work as expected."
diff --git a/src/fabric_cli/core/fab_logger.py b/src/fabric_cli/core/fab_logger.py
index 9af40c27..fccf3e52 100644
--- a/src/fabric_cli/core/fab_logger.py
+++ b/src/fabric_cli/core/fab_logger.py
@@ -156,10 +156,21 @@ def log_debug_http_request_exception(e):
 def _get_log_file_path():
     """Create a log file path in the user's log directory."""
     log_dir = user_log_dir("fabric-cli")
-    os.makedirs(log_dir, exist_ok=True)
+    os.makedirs(log_dir, mode=0o700, exist_ok=True)
+    # Enforce permissions on pre-existing directories from older versions
+    _chmod_if_posix(log_dir, 0o700)
     return os.path.join(log_dir, "fabcli_debug.log")
 
 
+def _chmod_if_posix(path, mode):
+    """Best-effort chmod with warning on failure; no-op on Windows."""
+    if os.name != "nt":
+        try:
+            os.chmod(path, mode)
+        except OSError:
+            pass
+
+
 def get_logger():
     """Singleton logger instance with a single file handler."""
     global _logger_instance, log_file_path
diff --git a/src/fabric_cli/core/fab_state_config.py b/src/fabric_cli/core/fab_state_config.py
index 2e441390..817e8ac3 100644
--- a/src/fabric_cli/core/fab_state_config.py
+++ b/src/fabric_cli/core/fab_state_config.py
@@ -2,16 +2,31 @@
 # Licensed under the MIT License.
 
 import json
+import logging
 import os
-from os.path import exists, expanduser
+from os.path import expanduser
 
 from fabric_cli.core import fab_constant
 
+_logger = logging.getLogger(__name__)
+
+
+def _chmod_if_posix(path, mode):
+    """Best-effort chmod with warning on failure; no-op on Windows."""
+    if os.name != "nt":
+        try:
+            os.chmod(path, mode)
+        except OSError as e:
+            _logger.warning(
+                "Failed to set permissions %o on %s: %s", mode, path, e
+            )
+
 
 def config_location():
     _location = expanduser("~/.config/fab/")
-    if not exists(_location):
-        os.makedirs(_location)
+    os.makedirs(_location, mode=0o700, exist_ok=True)
+    # Enforce permissions on pre-existing directories from older versions
+    _chmod_if_posix(_location, 0o700)
     return _location
 
 
@@ -29,8 +44,29 @@ def read_config(file_path) -> dict:
 
 
 def write_config(data):
-    with open(config_file, "w") as file:
-        json.dump(data, file, indent=4)
+    _write_restricted_file(config_file, json.dumps(data, indent=4))
+
+
+def _write_restricted_file(file_path, content):
+    """Write content to a file with owner-only permissions (0o600).
+
+    Handles both new file creation and tightening permissions on
+    pre-existing files from older CLI versions.
+    """
+    fd = os.open(file_path, os.O_WRONLY | os.O_CREAT | os.O_TRUNC, 0o600)
+    try:
+        with os.fdopen(fd, "w") as file:
+            file.write(content)
+    except Exception:
+        # os.fdopen may fail before wrapping fd; close to avoid leak.
+        # If os.fdopen succeeded, fd is already closed by the with block.
+        try:
+            os.close(fd)
+        except OSError:
+            pass
+        raise
+    # Enforce permissions on pre-existing files from older versions
+    _chmod_if_posix(file_path, 0o600)
 
 
 def set_config(key, value):
diff --git a/tests/test_core/test_context_persistence.py b/tests/test_core/test_context_persistence.py
index 0c675239..862503f4 100644
--- a/tests/test_core/test_context_persistence.py
+++ b/tests/test_core/test_context_persistence.py
@@ -46,16 +46,19 @@ def mock_get_config(key):
         # Create a mock workspace with the tenant as parent
         workspace = Workspace("test_workspace", "5678", tenant, "Workspace")
 
-        # Mock json.dump to avoid actually writing to the file system
-        with patch("json.dump") as mock_json_dump, patch("builtins.open", MagicMock()):
+        # Mock _write_restricted_file to avoid actually writing to the file system
+        with patch(
+            "fabric_cli.core.fab_state_config._write_restricted_file"
+        ) as mock_write:
 
             # Set the context
             context.context = workspace
 
-            # Check that json.dump was called with the right data
-            mock_json_dump.assert_called_once()
-            args, _ = mock_json_dump.call_args
-            assert args[0] == {"path": workspace.path}
+            # Check that _write_restricted_file was called with the right data
+            mock_write.assert_called_once()
+            args, _ = mock_write.call_args
+            assert args[0] == temp_context_file
+            assert json.loads(args[1]) == {"path": workspace.path}
     finally:
         os.remove(temp_context_file)
 
@@ -185,16 +188,18 @@ def mock_get_config(key):
         tenant = Tenant("test_tenant", "1234")
         workspace = Workspace("test_workspace", "5678", tenant, "Workspace")
 
-        # Mock json.dump to avoid actually writing to the file system
-        with patch("json.dump") as mock_json_dump, patch("builtins.open", MagicMock()):
+        # Mock _write_restricted_file to avoid actually writing to the file system
+        with patch(
+            "fabric_cli.core.fab_state_config._write_restricted_file"
+        ) as mock_write:
 
             # Set the context - this SHOULD trigger file save when persistence is enabled
             context.context = workspace
 
-            # Check that json.dump was called with the right data
-            mock_json_dump.assert_called_once()
-            args, _ = mock_json_dump.call_args
-            assert args[0] == {"path": workspace.path}
+            # Check that _write_restricted_file was called with the right data
+            mock_write.assert_called_once()
+            args, _ = mock_write.call_args
+            assert json.loads(args[1]) == {"path": workspace.path}
     finally:
         os.remove(temp_context_file)
 
diff --git a/tests/test_core/test_fab_auth.py b/tests/test_core/test_fab_auth.py
index 5cf2e568..55f2b826 100644
--- a/tests/test_core/test_fab_auth.py
+++ b/tests/test_core/test_fab_auth.py
@@ -1064,3 +1064,54 @@ def test_auth_mode_migration(tmp_path):
     assert (
         auth.get_identity_type() == "user"
     ), "get_identity_type returns wrong value after migration"
+
+
+# region security: auth file permission tests
+
+_skip_on_windows = pytest.mark.skipif(
+    os.name == "nt", reason="POSIX permission tests not applicable on Windows"
+)
+
+
+@_skip_on_windows
+def test_save_auth_creates_file_with_restricted_permissions(tmp_path):
+    """Verify auth.json is created with mode 0o600 (owner read/write only)."""
+    auth = FabAuth()
+    auth.auth_file = os.path.join(str(tmp_path), "auth.json")
+    auth._auth_info = {con.IDENTITY_TYPE: "user"}
+
+    auth._save_auth()
+
+    assert os.path.exists(auth.auth_file)
+    mode = oct(os.stat(auth.auth_file).st_mode & 0o777)
+    assert mode == "0o600", f"auth.json has mode {mode}, expected 0o600"
+
+    # Verify content is still correct
+    with open(auth.auth_file, "r") as f:
+        data = json.load(f)
+    assert data[con.IDENTITY_TYPE] == "user"
+
+
+@_skip_on_windows
+def test_save_auth_tightens_permissions_on_existing_file(tmp_path):
+    """Verify _save_auth() enforces 0o600 on a pre-existing permissive file."""
+    auth = FabAuth()
+    auth.auth_file = os.path.join(str(tmp_path), "auth.json")
+
+    # Create file with overly permissive mode (simulating old CLI version)
+    with open(auth.auth_file, "w") as f:
+        json.dump({con.IDENTITY_TYPE: "user"}, f)
+    os.chmod(auth.auth_file, 0o644)
+
+    auth._auth_info = {con.IDENTITY_TYPE: "spn"}
+    auth._save_auth()
+
+    mode = oct(os.stat(auth.auth_file).st_mode & 0o777)
+    assert mode == "0o600", f"auth.json has mode {mode} after overwrite, expected 0o600"
+
+    with open(auth.auth_file, "r") as f:
+        data = json.load(f)
+    assert data[con.IDENTITY_TYPE] == "spn"
+
+
+# endregion
diff --git a/tests/test_core/test_fab_logger.py b/tests/test_core/test_fab_logger.py
index 7ad67a36..3f96a725 100644
--- a/tests/test_core/test_fab_logger.py
+++ b/tests/test_core/test_fab_logger.py
@@ -249,3 +249,24 @@ def mock_log_warning():
 def mock_get_log_file_path():
     with patch("fabric_cli.core.fab_logger.get_log_file_path") as mock:
         yield mock
+
+
+# ── Security: log directory permissions ──────────────────────────────────────
+
+
+@pytest.mark.skipif(os.name == "nt", reason="POSIX permission tests not applicable on Windows")
+def test_get_log_file_path_creates_directory_with_restricted_permissions(
+    monkeypatch, tmp_path
+):
+    """Verify log directory is created with mode 0o700 (owner-only)."""
+    log_dir = tmp_path / "fabric-cli" / "log"
+    monkeypatch.setattr(
+        logger, "user_log_dir", lambda app_name: str(log_dir)
+    )
+
+    result = logger._get_log_file_path()
+    assert result.endswith("fabcli_debug.log")
+    assert log_dir.exists()
+
+    mode = oct(log_dir.stat().st_mode & 0o777)
+    assert mode == "0o700", f"Log directory has mode {mode}, expected 0o700"
diff --git a/tests/test_core/test_fab_state_config.py b/tests/test_core/test_fab_state_config.py
index df0b171c..e8e1dbd1 100644
--- a/tests/test_core/test_fab_state_config.py
+++ b/tests/test_core/test_fab_state_config.py
@@ -5,6 +5,8 @@
 import os
 import tempfile
 
+import pytest
+
 import fabric_cli.core.fab_state_config as cfg
 from fabric_cli.core import fab_constant
 
@@ -165,3 +167,85 @@ def test_init_defaults_preserves_user_overrides_success(monkeypatch, tmp_path):
     assert result[fab_constant.FAB_CACHE_ENABLED] == "false"
 
 # endregion
+
+
+# region security: file permission tests
+
+_skip_on_windows = pytest.mark.skipif(
+    os.name == "nt", reason="POSIX permission tests not applicable on Windows"
+)
+
+
+@_skip_on_windows
+def test_config_location_creates_directory_with_restricted_permissions(
+    monkeypatch, tmp_path
+):
+    """Verify config directory is created with mode 0o700 (owner-only access)."""
+    monkeypatch.setattr(
+        "fabric_cli.core.fab_state_config.expanduser",
+        lambda path: path.replace("~", str(tmp_path)),
+    )
+
+    location = cfg.config_location()
+    assert os.path.isdir(location)
+
+    mode = oct(os.stat(location).st_mode & 0o777)
+    assert mode == "0o700", f"Config directory has mode {mode}, expected 0o700"
+
+
+@_skip_on_windows
+def test_config_location_tightens_permissions_on_existing_directory(
+    monkeypatch, tmp_path
+):
+    """Verify config_location() enforces 0o700 on a pre-existing permissive directory."""
+    config_dir = tmp_path / ".config" / "fab"
+    config_dir.mkdir(parents=True, mode=0o755)
+    monkeypatch.setattr(
+        "fabric_cli.core.fab_state_config.expanduser",
+        lambda path: path.replace("~", str(tmp_path)),
+    )
+
+    cfg.config_location()
+
+    mode = oct(config_dir.stat().st_mode & 0o777)
+    assert mode == "0o700", f"Config directory has mode {mode}, expected 0o700"
+
+
+@_skip_on_windows
+def test_write_config_creates_file_with_restricted_permissions(monkeypatch, tmp_path):
+    """Verify config files are created with mode 0o600 (owner read/write only)."""
+    config_file = os.path.join(str(tmp_path), "config.json")
+    monkeypatch.setattr(cfg, "config_file", config_file)
+
+    cfg.write_config({"key": "value"})
+
+    assert os.path.exists(config_file)
+    mode = oct(os.stat(config_file).st_mode & 0o777)
+    assert mode == "0o600", f"Config file has mode {mode}, expected 0o600"
+
+    # Verify content is still correct
+    data = cfg.read_config(config_file)
+    assert data == {"key": "value"}
+
+
+@_skip_on_windows
+def test_write_config_tightens_permissions_on_existing_file(monkeypatch, tmp_path):
+    """Verify write_config() enforces 0o600 on a pre-existing permissive file."""
+    config_file = os.path.join(str(tmp_path), "config.json")
+    monkeypatch.setattr(cfg, "config_file", config_file)
+
+    # Create file with overly permissive mode (simulating old CLI version)
+    with open(config_file, "w") as f:
+        json.dump({"old": "data"}, f)
+    os.chmod(config_file, 0o644)
+
+    cfg.write_config({"new": "data"})
+
+    mode = oct(os.stat(config_file).st_mode & 0o777)
+    assert mode == "0o600", f"Config file has mode {mode} after overwrite, expected 0o600"
+
+    data = cfg.read_config(config_file)
+    assert data == {"new": "data"}
+
+
+# endregion