diff --git a/cmd/root.go b/cmd/root.go
index 909203e4..2fe00e1c 100644
--- a/cmd/root.go
+++ b/cmd/root.go
@@ -114,7 +114,7 @@ func Execute(ctx context.Context) error {
 
 	logger.Info("lstk %s starting", version.Version())
 
-	// Resolve auth token for telemetry: keyring first, then env var.
+	// Resolve auth token for telemetry correlation: keyring first, then env var.
 	resolvedToken := cfg.AuthToken
 	if tokenStorage, err := auth.NewTokenStorage(cfg.ForceFileKeyring, logger); err == nil {
 		if token, err := tokenStorage.GetAuthToken(); err == nil && token != "" {
diff --git a/internal/container/telemetry_test.go b/internal/container/telemetry_test.go
index f0bcdee4..51ff11f2 100644
--- a/internal/container/telemetry_test.go
+++ b/internal/container/telemetry_test.go
@@ -68,7 +68,7 @@ func TestStop_EmitsLifecycleStopEvent(t *testing.T) {
 	assert.Equal(t, "aws", payload["emulator"])
 
 	env := payload["environment"].(map[string]any)
-	assert.Equal(t, "ls-abc", env["auth_token_id"])
+	assert.Equal(t, telemetry.FingerprintToken("ls-abc"), env["auth_token_id"])
 }
 
 func TestEmitEmulatorLifecycleEvent_SendsStartErrorEvent(t *testing.T) {
diff --git a/internal/telemetry/client.go b/internal/telemetry/client.go
index 8b1ad5aa..c5f71906 100644
--- a/internal/telemetry/client.go
+++ b/internal/telemetry/client.go
@@ -3,6 +3,8 @@ package telemetry
 import (
 	"bytes"
 	"context"
+	"crypto/sha256"
+	"encoding/hex"
 	"encoding/json"
 	"fmt"
 	"net/http"
@@ -22,10 +24,10 @@ func userAgent() string {
 }
 
 type Client struct {
-	enabled   bool
-	sessionID string
-	machineID string
-	authToken string
+	enabled     bool
+	sessionID   string
+	machineID   string
+	authTokenID string
 
 	httpClient *http.Client
 	endpoint   string
@@ -36,10 +38,20 @@ type Client struct {
 	machineIDOnce sync.Once
 }
 
-// SetAuthToken stores the resolved auth token for inclusion in telemetry events.
-// Call this once the token is known (e.g. after keyring resolution or interactive login).
+// SetAuthToken stores a one-way fingerprint of the auth token for telemetry
+// correlation. The raw token is not retained.
 func (c *Client) SetAuthToken(token string) {
-	c.authToken = token
+	c.authTokenID = FingerprintToken(token)
+}
+
+// FingerprintToken returns a 16-character lowercase hex prefix of the token's
+// SHA-256 digest. Empty input yields empty output.
+func FingerprintToken(token string) string {
+	if token == "" {
+		return ""
+	}
+	sum := sha256.Sum256([]byte(token))
+	return hex.EncodeToString(sum[:])[:16]
 }
 
 func New(endpoint string, disabled bool) *Client {
diff --git a/internal/telemetry/events.go b/internal/telemetry/events.go
index 20b1d6a3..291daa94 100644
--- a/internal/telemetry/events.go
+++ b/internal/telemetry/events.go
@@ -89,15 +89,16 @@ func ToMap(v any) map[string]any {
 	return m
 }
 
-// GetEnvironment returns the common environment payload for telemetry events,
-// using the auth token set via SetAuthToken.
+// GetEnvironment returns the common environment payload for telemetry events.
+// AuthTokenID is a one-way fingerprint of the token registered via
+// SetAuthToken, not the token itself.
 func (c *Client) GetEnvironment(ctx context.Context) Environment {
 	c.machineIDOnce.Do(func() {
 		c.machineID = LoadOrCreateMachineID(ctx)
 	})
 	return Environment{
 		LstkVersion: version.Version(),
-		AuthTokenID: c.authToken,
+		AuthTokenID: c.authTokenID,
 		OS:          runtime.GOOS,
 		Arch:        runtime.GOARCH,
 		MachineID:   c.machineID,
diff --git a/internal/telemetry/events_test.go b/internal/telemetry/events_test.go
index 4749027c..f5d37307 100644
--- a/internal/telemetry/events_test.go
+++ b/internal/telemetry/events_test.go
@@ -7,6 +7,7 @@ import (
 	"net/http"
 	"net/http/httptest"
 	"runtime"
+	"strings"
 	"testing"
 	"time"
 
@@ -51,7 +52,7 @@ func TestGetEnvironment_PopulatesAllFields(t *testing.T) {
 	env := c.GetEnvironment(context.Background())
 
 	assert.Equal(t, version.Version(), env.LstkVersion)
-	assert.Equal(t, "ls-abc123", env.AuthTokenID)
+	assert.Equal(t, FingerprintToken("ls-abc123"), env.AuthTokenID)
 	assert.Equal(t, runtime.GOOS, env.OS)
 	assert.Equal(t, runtime.GOARCH, env.Arch)
 	assert.NotEmpty(t, env.MachineID)
@@ -63,6 +64,15 @@ func TestGetEnvironment_OmitsAuthTokenWhenEmpty(t *testing.T) {
 	assert.Empty(t, env.AuthTokenID)
 }
 
+func TestFingerprintToken_IsStableAndIrreversible(t *testing.T) {
+	assert.Empty(t, FingerprintToken(""))
+
+	fp := FingerprintToken("ls-secret-token")
+	assert.Len(t, fp, 16)
+	assert.Equal(t, fp, FingerprintToken("ls-secret-token"), "fingerprint must be deterministic")
+	assert.NotEqual(t, fp, FingerprintToken("ls-secret-token2"), "different inputs must yield different fingerprints")
+}
+
 func TestEmitCommand_SendsCorrectEventNameAndStructure(t *testing.T) {
 	tel, ch := captureEvents(t)
 
@@ -85,7 +95,7 @@ func TestEmitCommand_SendsCorrectEventNameAndStructure(t *testing.T) {
 	env, ok := payload["environment"].(map[string]any)
 	require.True(t, ok)
 	assert.Equal(t, version.Version(), env["lstk_version"])
-	assert.Equal(t, "ls-token", env["auth_token_id"])
+	assert.Equal(t, FingerprintToken("ls-token"), env["auth_token_id"])
 
 	params, ok := payload["parameters"].(map[string]any)
 	require.True(t, ok)
@@ -98,6 +108,19 @@ func TestEmitCommand_SendsCorrectEventNameAndStructure(t *testing.T) {
 	assert.InDelta(t, 0, result["exit_code"], 0)
 }
 
+func TestEmitCommand_NeverSerializesRawAuthToken(t *testing.T) {
+	tel, ch := captureEvents(t)
+
+	const rawToken = "ls-super-secret-do-not-leak"
+	tel.SetAuthToken(rawToken)
+	tel.EmitCommand(context.Background(), "status", nil, 0, 0, "")
+
+	got := drainEvent(t, tel, ch)
+	serialized, err := json.Marshal(got)
+	require.NoError(t, err)
+	assert.False(t, strings.Contains(string(serialized), rawToken), "raw auth token must not appear in telemetry payload")
+}
+
 func TestEmitCommand_IncludesErrorMsgOnFailure(t *testing.T) {
 	tel, ch := captureEvents(t)