diff --git a/demos/weather_forecast_logfire/README.md b/demos/weather_forecast_logfire/README.md
new file mode 100644
index 00000000..5334d4a5
--- /dev/null
+++ b/demos/weather_forecast_logfire/README.md
@@ -0,0 +1,27 @@
+# Function calling
+This demo shows how you can use Arch's core function calling capabilites.
+
+# Starting the demo
+1. Please make sure the [pre-requisites](https://github.com/katanemo/arch/?tab=readme-ov-file#prerequisites) are installed correctly
+2. Start Arch
+
+3.
+   ```sh
+   sh run_demo.sh
+   ```
+4. Navigate to http://localhost:18080/
+5. You can type in queries like "how is the weather?"
+
+# Observability
+Arch gateway publishes stats endpoint at http://localhost:19901/stats. In this demo we are using prometheus to pull stats from arch and we are using grafana to visalize the stats in dashboard. To see grafana dashboard follow instructions below,
+
+1. Start grafana and prometheus using following command
+   ```yaml
+   docker compose --profile monitoring up
+   ```
+1. Navigate to http://localhost:3000/ to open grafana UI (use admin/grafana as credentials)
+1. From grafana left nav click on dashboards and select "Intelligent Gateway Overview" to view arch gateway stats
+
+
+Here is a sample interaction,
+<img width="575" alt="image" src="https://github.com/user-attachments/assets/e0929490-3eb2-4130-ae87-a732aea4d059">
diff --git a/demos/weather_forecast_logfire/arch_config.yaml b/demos/weather_forecast_logfire/arch_config.yaml
new file mode 100644
index 00000000..35a3f430
--- /dev/null
+++ b/demos/weather_forecast_logfire/arch_config.yaml
@@ -0,0 +1,78 @@
+version: "0.1-beta"
+
+listener:
+  address: 0.0.0.0
+  port: 10000
+  message_format: huggingface
+  connect_timeout: 0.005s
+
+endpoints:
+  weather_forecast_service:
+    endpoint: host.docker.internal:18083
+    connect_timeout: 0.005s
+
+overrides:
+  # confidence threshold for prompt target intent matching
+  prompt_target_intent_matching_threshold: 0.6
+
+llm_providers:
+  - name: gpt-4o-mini
+    access_key: $OPENAI_API_KEY
+    provider: openai
+    model: gpt-4o-mini
+    default: true
+
+  - name: gpt-3.5-turbo-0125
+    access_key: $OPENAI_API_KEY
+    provider: openai
+    model: gpt-3.5-turbo-0125
+
+  - name: gpt-4o
+    access_key: $OPENAI_API_KEY
+    provider: openai
+    model: gpt-4o
+
+system_prompt: |
+  You are a helpful assistant.
+
+prompt_guards:
+  input_guards:
+    jailbreak:
+      on_exception:
+        message: Looks like you're curious about my abilities, but I can only provide assistance for weather forecasting.
+
+prompt_targets:
+  - name: weather_forecast
+    description: Check weather information for a given city.
+    parameters:
+      - name: city
+        description: the name of the city
+        required: true
+        type: str
+      - name: days
+        description: the number of days
+        type: int
+        required: true
+      - name: units
+        description: the temperature unit, e.g., Celsius and Fahrenheit
+        type: str
+        default: Fahrenheit
+    endpoint:
+      name: weather_forecast_service
+      path: /weather
+
+  - name: default_target
+    default: true
+    description: This is the default target for all unmatched prompts.
+    endpoint:
+      name: weather_forecast_service
+      path: /default_target
+    system_prompt: |
+      You are a helpful assistant! Summarize the user's request and provide a helpful response.
+    # if it is set to false arch will send response that it received from this prompt target to the user
+    # if true arch will forward the response to the default LLM
+    auto_llm_dispatch_on_response: false
+
+tracing:
+  random_sampling: 100
+  trace_arch_internal: true
diff --git a/demos/weather_forecast_logfire/run_demo.sh b/demos/weather_forecast_logfire/run_demo.sh
new file mode 100644
index 00000000..e6c678e8
--- /dev/null
+++ b/demos/weather_forecast_logfire/run_demo.sh
@@ -0,0 +1,47 @@
+#!/bin/bash
+set -e
+
+# Function to start the demo
+start_demo() {
+  # Step 1: Check if .env file exists
+  if [ -f ".env" ]; then
+    echo ".env file already exists. Skipping creation."
+  else
+    # Step 2: Create `.env` file and set OpenAI key
+    if [ -z "$OPENAI_API_KEY" ]; then
+      echo "Error: OPENAI_API_KEY environment variable is not set for the demo."
+      exit 1
+    fi
+
+    echo "Creating .env file..."
+    echo "OPENAI_API_KEY=$OPENAI_API_KEY" > .env
+    echo ".env file created with OPENAI_API_KEY."
+  fi
+
+  # Step 3: Start Arch
+  echo "Starting Arch with arch_config.yaml..."
+  archgw up arch_config.yaml
+
+  # Step 4: Start Network Agent
+  echo "Starting Network Agent using Docker Compose..."
+  docker compose up -d  # Run in detached mode
+}
+
+# Function to stop the demo
+stop_demo() {
+  # Step 1: Stop Docker Compose services
+  echo "Stopping Network Agent using Docker Compose..."
+  docker compose down
+
+  # Step 2: Stop Arch
+  echo "Stopping Arch..."
+  archgw down
+}
+
+# Main script logic
+if [ "$1" == "down" ]; then
+  stop_demo
+else
+  # Default action is to bring the demo up
+  start_demo
+fi