diff --git a/Backend/src/app.ts b/Backend/src/app.ts
index fb7d587..6c80721 100644
--- a/Backend/src/app.ts
+++ b/Backend/src/app.ts
@@ -3,7 +3,7 @@ import cors from 'cors';
 import helmet from 'helmet';
 import morgan from 'morgan';
 import { config } from './config';
-import { rateLimiter, errorHandler, notFoundHandler } from './middleware';
+import { rateLimiter, errorHandler, notFoundHandler, requestId } from './middleware';
 import { healthRouter } from './routes/health.routes';
 import { authRouter } from './routes/auth.routes';
 import { anchorRouter } from './routes/anchor.routes';
@@ -33,6 +33,9 @@ export const createApp = (): Application => {
     app.use(morgan('combined'));
   }
 
+  // Request ID tracing
+  app.use(requestId);
+
   // Rate limiting
   app.use(rateLimiter);
 
diff --git a/Backend/src/jobs/index.ts b/Backend/src/jobs/index.ts
index c1ecd70..6fab11c 100644
--- a/Backend/src/jobs/index.ts
+++ b/Backend/src/jobs/index.ts
@@ -4,7 +4,7 @@ import { paymentAuditLogRepository } from '../repositories/payment-audit.reposit
 import { anchorService } from '../services/anchor.service';
 import { transactionService } from '../services/transaction.service';
 import { vaultService } from '../services/vault.service';
-import { runOutboxProcessor, stopOutboxProcessor } from './outbox.processor';
+import { runOutboxProcessor, stopOutboxProcessorSafe } from './outbox.processor';
 
 // Example job processors - to be expanded as needed
 
@@ -198,12 +198,4 @@ export const initializeOutboxProcessor = async (): Promise<void> => {
   await runOutboxProcessor();
 };
 
-export const stopOutboxProcessorSafe = async (): Promise<void> => {
-  if (!outboxProcessorRunning) {
-    return;
-  }
-  outboxProcessorRunning = false;
-  await stopOutboxProcessor();
-};
-
 export const getBootstrappedWorkers = () => workerRegistry;
diff --git a/Backend/src/jobs/outbox.processor.ts b/Backend/src/jobs/outbox.processor.ts
index 564570a..db3dc00 100644
--- a/Backend/src/jobs/outbox.processor.ts
+++ b/Backend/src/jobs/outbox.processor.ts
@@ -4,8 +4,6 @@ import { outboxRepository } from '../repositories/outbox.repository';
 import { redactError } from '../utils/redact';
 
 const MAX_ATTEMPTS = 5;
-const BASE_DELAY_MS = 5000;
-const MAX_DELAY_MS = 300000;
 
 // TODO: [AC1] Add an outbox-event model with event type, aggregate reference, serialized payload, attempt count, status, retry timestamp, and processed timestamp.
 // DONE: OutboxEvent model added to prisma/schema.prisma with all required fields.
@@ -34,6 +32,8 @@ const MAX_DELAY_MS = 300000;
 // TODO: [AC9] Document event types, retry behavior, operational recovery, and monitoring expectations in the backend README.
 // DONE: README.md updated with a "Transactional Outbox Pattern" section covering event types, retry behavior, operational recovery, monitoring expectations, and testing.
 
+let outboxProcessorRunning = false;
+
 export async function processOutboxEvent(event: {
   id: string;
   eventType: OutboxEventType;
diff --git a/Backend/src/middleware/index.ts b/Backend/src/middleware/index.ts
index 551fa98..f3a507f 100644
--- a/Backend/src/middleware/index.ts
+++ b/Backend/src/middleware/index.ts
@@ -2,3 +2,4 @@ export { rateLimiter, authRateLimiter, sessionRateLimiter } from './rateLimiter'
 export { errorHandler, notFoundHandler } from './errorHandler';
 export { authenticate } from './auth';
 export { validate } from './validator';
+export { requestId } from './requestId';
diff --git a/Backend/src/middleware/requestId.ts b/Backend/src/middleware/requestId.ts
new file mode 100644
index 0000000..8139318
--- /dev/null
+++ b/Backend/src/middleware/requestId.ts
@@ -0,0 +1,16 @@
+import { Request, Response, NextFunction } from 'express';
+import { randomUUID } from 'crypto';
+
+declare global {
+  namespace Express {
+    interface Request {
+      requestId: string;
+    }
+  }
+}
+
+export const requestId = (req: Request, res: Response, next: NextFunction): void => {
+  req.requestId = randomUUID();
+  res.setHeader('X-Request-Id', req.requestId);
+  next();
+};
\ No newline at end of file
diff --git a/Backend/src/routes/health.routes.ts b/Backend/src/routes/health.routes.ts
index 9c286cc..a1637d5 100644
--- a/Backend/src/routes/health.routes.ts
+++ b/Backend/src/routes/health.routes.ts
@@ -1,7 +1,6 @@
 import { Router, Request, Response } from 'express';
 import { prisma } from '../database';
 import { redis } from '../config/redis';
-import { getBootstrappedWorkers } from '../jobs';
 import { redactError } from '../utils/redact';
 
 const router = Router();
@@ -30,37 +29,47 @@ const checkRedis = (): HealthCheck => {
   return { status: 'degraded', details: `Redis status is ${redis.status}` };
 };
 
-const checkWorkers = (): HealthCheck => {
-  const workers = getBootstrappedWorkers();
-  if (!workers || workers.length === 0) {
-    return { status: 'degraded', details: 'Workers have not been bootstrapped yet' };
-  }
-
-  return { status: 'ok', details: `${workers.length} worker(s) bootstrapped` };
-};
+router.get('/', (_req: Request, res: Response) => {
+  res.json({
+    success: true,
+    message: 'Vaulty Backend is running',
+    uptime: process.uptime(),
+    timestamp: new Date().toISOString(),
+  });
+});
 
-router.get('/', async (_req: Request, res: Response) => {
-  const [prismaCheck, redisCheck, workersCheck] = await Promise.all([
+router.get('/ready', async (_req: Request, res: Response) => {
+  const [prismaCheck, redisCheck] = await Promise.all([
     checkPrisma(),
     checkRedis(),
-    Promise.resolve(checkWorkers()),
   ]);
 
-  const isReady = prismaCheck.status === 'ok' && redisCheck.status === 'ok' && workersCheck.status === 'ok';
+  const isReady = prismaCheck.status === 'ok' && redisCheck.status === 'ok';
 
-  res.json({
-    success: true,
-    message: 'Vaulty Backend is running',
-    status: isReady ? 'ok' : 'degraded',
-    ready: isReady,
+  if (isReady) {
+    res.json({
+      success: true,
+      message: 'Vaulty Backend is ready',
+      status: 'ok',
+      timestamp: new Date().toISOString(),
+      checks: {
+        prisma: prismaCheck,
+        redis: redisCheck,
+      },
+    });
+    return;
+  }
+
+  res.status(503).json({
+    success: false,
+    message: 'Vaulty Backend is not ready',
+    status: 'degraded',
     timestamp: new Date().toISOString(),
-    uptime: process.uptime(),
     checks: {
       prisma: prismaCheck,
       redis: redisCheck,
-      workers: workersCheck,
     },
   });
 });
 
-export const healthRouter = router;
+export const healthRouter = router;
\ No newline at end of file
diff --git a/Backend/src/services/auth.service.ts b/Backend/src/services/auth.service.ts
index 653ca86..4577957 100644
--- a/Backend/src/services/auth.service.ts
+++ b/Backend/src/services/auth.service.ts
@@ -136,7 +136,7 @@ export class AuthService {
     const expiresAt = generateTokenExpiry(EMAIL_VERIFICATION_TOKEN_EXPIRY_MINUTES);
     await userRepository.createEmailVerificationToken(user.id, verificationTokenHash, expiresAt);
 
-    await prisma.$transaction(async (tx) => {
+    await prisma.$transaction(async () => {
       await prisma.outboxEvent.create({
         data: {
           eventType: OutboxEventType.EMAIL_VERIFICATION,
@@ -266,7 +266,7 @@ export class AuthService {
     const expiresAt = generateTokenExpiry(PASSWORD_RESET_TOKEN_EXPIRY_MINUTES);
     await userRepository.createPasswordResetToken(user.id, resetTokenHash, expiresAt);
 
-    await prisma.$transaction(async (tx) => {
+    await prisma.$transaction(async () => {
       await prisma.outboxEvent.create({
         data: {
           eventType: OutboxEventType.PASSWORD_RESET,
@@ -331,7 +331,7 @@ export class AuthService {
 
     await userRepository.createEmailVerificationToken(user.id, verificationTokenHash, expiresAt);
 
-    await prisma.$transaction(async (tx) => {
+    await prisma.$transaction(async () => {
       await prisma.outboxEvent.create({
         data: {
           eventType: OutboxEventType.EMAIL_RESEND,
diff --git a/Backend/src/services/vault.service.ts b/Backend/src/services/vault.service.ts
index 31ed0b0..4d9e6b7 100644
--- a/Backend/src/services/vault.service.ts
+++ b/Backend/src/services/vault.service.ts
@@ -42,7 +42,6 @@ export class VaultService {
       });
 
       await prisma.outboxEvent.create({
-        data: {
         data: {
           eventType: OutboxEventType.VAULT_CLOSE,
           aggregateId: createdVault.id,
@@ -140,7 +139,6 @@ export class VaultService {
       });
 
       await prisma.outboxEvent.create({
-        data: {
         data: {
           eventType: OutboxEventType.VAULT_DEPOSIT,
           aggregateId: transaction.id,
@@ -218,7 +216,6 @@ export class VaultService {
       });
 
       await prisma.outboxEvent.create({
-        data: {
         data: {
           eventType: OutboxEventType.VAULT_WITHDRAWAL,
           aggregateId: transaction.id,
@@ -281,13 +278,14 @@ export class VaultService {
 
       await prisma.outboxEvent.create({
         data: {
-        eventType: OutboxEventType.VAULT_LOCK,
-        aggregateId: vaultId,
-        aggregateType: 'SavingsVault',
-        payload: JSON.stringify({
-          lockPeriod: input.lockPeriod,
-          unlocksAt: unlocksAt.toISOString(),
-        }),
+          eventType: OutboxEventType.VAULT_LOCK,
+          aggregateId: vaultId,
+          aggregateType: 'SavingsVault',
+          payload: JSON.stringify({
+            lockPeriod: input.lockPeriod,
+            unlocksAt: unlocksAt.toISOString(),
+          }),
+        },
       });
     });
 
@@ -326,10 +324,11 @@ export class VaultService {
 
       await prisma.outboxEvent.create({
         data: {
-        eventType: OutboxEventType.VAULT_UNLOCK,
-        aggregateId: vaultId,
-        aggregateType: 'SavingsVault',
-        payload: JSON.stringify({ unlockedAt: new Date().toISOString() }),
+          eventType: OutboxEventType.VAULT_UNLOCK,
+          aggregateId: vaultId,
+          aggregateType: 'SavingsVault',
+          payload: JSON.stringify({ unlockedAt: new Date().toISOString() }),
+        },
       });
     });
 
@@ -368,10 +367,11 @@ export class VaultService {
 
       await prisma.outboxEvent.create({
         data: {
-        eventType: OutboxEventType.VAULT_CLOSE,
-        aggregateId: vaultId,
-        aggregateType: 'SavingsVault',
-        payload: JSON.stringify({ closedAt: new Date().toISOString() }),
+          eventType: OutboxEventType.VAULT_CLOSE,
+          aggregateId: vaultId,
+          aggregateType: 'SavingsVault',
+          payload: JSON.stringify({ closedAt: new Date().toISOString() }),
+        },
       });
     });
 
diff --git a/Backend/tests/integration/health.integration.test.ts b/Backend/tests/integration/health.integration.test.ts
index 5c84099..278a2ab 100644
--- a/Backend/tests/integration/health.integration.test.ts
+++ b/Backend/tests/integration/health.integration.test.ts
@@ -1,34 +1,107 @@
 import { createApp } from '../../src/app';
 import request from 'supertest';
 
-describe('Health Check Integration Test', () => {
+jest.mock('../../src/database', () => ({
+  prisma: {
+    $queryRawUnsafe: jest.fn(),
+  },
+}));
+
+jest.mock('../../src/config/redis', () => ({
+  redis: {
+    status: 'ready',
+  },
+}));
+
+const mockPrisma = require('../../src/database').prisma;
+const mockRedis = require('../../src/config/redis').redis;
+
+describe('Health Check Integration Tests', () => {
   const app = createApp();
 
-  it('should return 200 and health status on GET /health', async () => {
-    const response = await request(app).get('/health');
+  beforeEach(() => {
+    jest.clearAllMocks();
+  });
+
+  describe('GET /health (liveness)', () => {
+    it('should return 200 and basic liveness info', async () => {
+      const response = await request(app).get('/health');
 
-    expect(response.status).toBe(200);
-    expect(response.body).toMatchObject({
-      success: true,
-      message: 'Vaulty Backend is running',
-      status: expect.any(String),
-      timestamp: expect.any(String),
-      uptime: expect.any(Number),
+      expect(response.status).toBe(200);
+      expect(response.body).toMatchObject({
+        success: true,
+        message: 'Vaulty Backend is running',
+        uptime: expect.any(Number),
+        timestamp: expect.any(String),
+      });
+    });
+  });
+
+  describe('GET /health/ready (readiness)', () => {
+    it('should return 200 when all critical dependencies are healthy', async () => {
+      mockPrisma.$queryRawUnsafe.mockResolvedValue([{ '1': 1 }]);
+      mockRedis.status = 'ready';
+
+      const response = await request(app).get('/health/ready');
+
+      expect(response.status).toBe(200);
+      expect(response.body).toMatchObject({
+        success: true,
+        message: 'Vaulty Backend is ready',
+        status: 'ok',
+        timestamp: expect.any(String),
+      });
+      expect(response.body.checks).toMatchObject({
+        prisma: { status: 'ok' },
+        redis: { status: 'ok' },
+      });
+    });
+
+    it('should return 503 when Prisma is unavailable', async () => {
+      mockPrisma.$queryRawUnsafe.mockRejectedValue(new Error('Prisma connection timeout'));
+      mockRedis.status = 'ready';
+
+      const response = await request(app).get('/health/ready');
+
+      expect(response.status).toBe(503);
+      expect(response.body).toMatchObject({
+        success: false,
+        message: 'Vaulty Backend is not ready',
+        status: 'degraded',
+        timestamp: expect.any(String),
+      });
+      expect(response.body.checks.prisma.status).toBe('degraded');
+      expect(response.body.checks.redis.status).toBe('ok');
+    });
+
+    it('should return 503 when Redis is unavailable', async () => {
+      mockPrisma.$queryRawUnsafe.mockResolvedValue([{ '1': 1 }]);
+      mockRedis.status = 'close';
+
+      const response = await request(app).get('/health/ready');
+
+      expect(response.status).toBe(503);
+      expect(response.body.checks.prisma.status).toBe('ok');
+      expect(response.body.checks.redis.status).toBe('degraded');
+    });
+
+    it('should return 503 when both critical dependencies are unavailable', async () => {
+      mockPrisma.$queryRawUnsafe.mockRejectedValue(new Error('Prisma connection timeout'));
+      mockRedis.status = 'close';
+
+      const response = await request(app).get('/health/ready');
+
+      expect(response.status).toBe(503);
+      expect(response.body.checks.prisma.status).toBe('degraded');
+      expect(response.body.checks.redis.status).toBe('degraded');
     });
-    expect(response.body.checks).toEqual(
-      expect.objectContaining({
-        prisma: expect.objectContaining({ status: expect.any(String) }),
-        redis: expect.objectContaining({ status: expect.any(String) }),
-        workers: expect.objectContaining({ status: expect.any(String) }),
-      })
-    );
   });
 
   it('should return 404 for non-existent routes', async () => {
     const response = await request(app).get('/non-existent-route');
-    
+
     expect(response.status).toBe(404);
     expect(response.body).toHaveProperty('success', false);
     expect(response.body).toHaveProperty('message');
   });
-});
+});
\ No newline at end of file
diff --git a/Backend/tests/unit/health.test.ts b/Backend/tests/unit/health.test.ts
index e7f2242..21f4d58 100644
--- a/Backend/tests/unit/health.test.ts
+++ b/Backend/tests/unit/health.test.ts
@@ -1,16 +1,107 @@
 import { createApp } from '../../src/app';
 import request from 'supertest';
 
-describe('Health Check Endpoint', () => {
+jest.mock('../../src/database', () => ({
+  prisma: {
+    $queryRawUnsafe: jest.fn(),
+  },
+}));
+
+jest.mock('../../src/config/redis', () => ({
+  redis: {
+    status: 'ready',
+  },
+}));
+
+const mockPrisma = require('../../src/database').prisma;
+const mockRedis = require('../../src/config/redis').redis;
+
+describe('Health Check Endpoints', () => {
   const app = createApp();
 
-  it('should return 200 and health status', async () => {
-    const response = await request(app).get('/health');
-    
-    expect(response.status).toBe(200);
-    expect(response.body).toHaveProperty('success', true);
-    expect(response.body).toHaveProperty('message');
-    expect(response.body).toHaveProperty('timestamp');
-    expect(response.body).toHaveProperty('uptime');
+  beforeEach(() => {
+    jest.clearAllMocks();
+  });
+
+  describe('GET /health (liveness)', () => {
+    it('should return 200 with uptime and no dependency checks', async () => {
+      const response = await request(app).get('/health');
+
+      expect(response.status).toBe(200);
+      expect(response.body).toHaveProperty('success', true);
+      expect(response.body).toHaveProperty('uptime');
+      expect(response.body).toHaveProperty('timestamp');
+      expect(response.body).not.toHaveProperty('checks');
+      expect(response.body).not.toHaveProperty('ready');
+      expect(response.body).not.toHaveProperty('status');
+    });
+  });
+
+  describe('GET /health/ready (readiness)', () => {
+    it('should return 200 when Prisma and Redis are healthy', async () => {
+      mockPrisma.$queryRawUnsafe.mockResolvedValue([{ '1': 1 }]);
+      mockRedis.status = 'ready';
+
+      const response = await request(app).get('/health/ready');
+
+      expect(response.status).toBe(200);
+      expect(response.body).toHaveProperty('success', true);
+      expect(response.body).toHaveProperty('status', 'ok');
+      expect(response.body).toHaveProperty('checks');
+      expect(response.body.checks.prisma).toHaveProperty('status', 'ok');
+      expect(response.body.checks.redis).toHaveProperty('status', 'ok');
+    });
+
+    it('should return 503 when Prisma is unavailable', async () => {
+      mockPrisma.$queryRawUnsafe.mockRejectedValue(new Error('Connection refused'));
+      mockRedis.status = 'ready';
+
+      const response = await request(app).get('/health/ready');
+
+      expect(response.status).toBe(503);
+      expect(response.body).toHaveProperty('success', false);
+      expect(response.body).toHaveProperty('status', 'degraded');
+      expect(response.body.checks.prisma).toHaveProperty('status', 'degraded');
+      expect(response.body.checks.redis).toHaveProperty('status', 'ok');
+    });
+
+    it('should return 503 when Redis is unavailable', async () => {
+      mockPrisma.$queryRawUnsafe.mockResolvedValue([{ '1': 1 }]);
+      mockRedis.status = 'close';
+
+      const response = await request(app).get('/health/ready');
+
+      expect(response.status).toBe(503);
+      expect(response.body).toHaveProperty('success', false);
+      expect(response.body).toHaveProperty('status', 'degraded');
+      expect(response.body.checks.prisma).toHaveProperty('status', 'ok');
+      expect(response.body.checks.redis).toHaveProperty('status', 'degraded');
+    });
+
+    it('should return 503 when both Prisma and Redis are unavailable', async () => {
+      mockPrisma.$queryRawUnsafe.mockRejectedValue(new Error('Connection refused'));
+      mockRedis.status = 'close';
+
+      const response = await request(app).get('/health/ready');
+
+      expect(response.status).toBe(503);
+      expect(response.body).toHaveProperty('success', false);
+      expect(response.body).toHaveProperty('status', 'degraded');
+      expect(response.body.checks.prisma).toHaveProperty('status', 'degraded');
+      expect(response.body.checks.redis).toHaveProperty('status', 'degraded');
+    });
+
+    it('should not expose connection strings or secrets in error details', async () => {
+      mockPrisma.$queryRawUnsafe.mockRejectedValue(
+        new Error('Connection refused: postgres://user:secret123@host/db')
+      );
+      mockRedis.status = 'ready';
+
+      const response = await request(app).get('/health/ready');
+
+      expect(response.status).toBe(503);
+      const details = response.body.checks.prisma.details;
+      expect(details).not.toContain('secret123');
+    });
   });
-});
+});
\ No newline at end of file