diff --git a/bot.py b/bot.py
index 8b818d8..907a692 100644
--- a/bot.py
+++ b/bot.py
@@ -73,6 +73,8 @@ CONFLUENCE_USER = os.environ.get("CONFLUENCE_USER", "")
 CONFLUENCE_TOKEN = os.environ.get("CONFLUENCE_TOKEN", "")
 PORTAL_URL = os.environ.get("PORTAL_URL", "")
 BOT_API_KEY = os.environ.get("BOT_API_KEY", "")
+RAG_ENDPOINT = os.environ.get("RAG_ENDPOINT", "")  # Customer-VM RAG service (e.g. http://127.0.0.1:8765)
+RAG_AUTH_TOKEN = os.environ.get("RAG_AUTH_TOKEN", "")  # Bearer token for local RAG
 BRAVE_API_KEY = os.environ.get("BRAVE_API_KEY", "")
 MAX_TOOL_ITERATIONS = 5
 
@@ -316,16 +318,49 @@ Manage settings at [matrixhost.eu/settings](https://matrixhost.eu/settings)."""
 
 
 class DocumentRAG:
-    """Search documents via MatrixHost API (replaces WildFiles)."""
+    """Search documents via customer-VM RAG service or central portal fallback."""
 
-    def __init__(self, portal_url: str, bot_api_key: str):
+    def __init__(self, portal_url: str, bot_api_key: str,
+                 rag_endpoint: str = "", rag_auth_token: str = ""):
         self.portal_url = portal_url.rstrip("/")
         self.bot_api_key = bot_api_key
-        self.enabled = bool(portal_url and bot_api_key)
+        self.rag_endpoint = rag_endpoint.rstrip("/") if rag_endpoint else ""
+        self.rag_auth_token = rag_auth_token
+        self.use_local_rag = bool(self.rag_endpoint)
+        self.enabled = bool(self.rag_endpoint) or bool(portal_url and bot_api_key)
 
     async def search(self, query: str, top_k: int = 3, api_key: str | None = None, org_slug: str | None = None, matrix_user_id: str | None = None) -> list[dict]:
         if not self.enabled or not matrix_user_id:
             return []
+
+        # Prefer customer-VM RAG service (encrypted, local)
+        if self.use_local_rag:
+            return await self._search_local(query, top_k)
+
+        # Fallback: central portal API (legacy, unencrypted)
+        return await self._search_portal(query, top_k, matrix_user_id)
+
+    async def _search_local(self, query: str, top_k: int) -> list[dict]:
+        """Search via customer-VM RAG service (localhost)."""
+        try:
+            body = {"query": query, "limit": top_k}
+            headers: dict[str, str] = {"Content-Type": "application/json"}
+            if self.rag_auth_token:
+                headers["Authorization"] = f"Bearer {self.rag_auth_token}"
+            async with httpx.AsyncClient(timeout=15.0) as client:
+                resp = await client.post(
+                    f"{self.rag_endpoint}/rag/search",
+                    json=body,
+                    headers=headers,
+                )
+                resp.raise_for_status()
+                return resp.json().get("results", [])
+        except Exception:
+            logger.debug("Local RAG search failed", exc_info=True)
+            return []
+
+    async def _search_portal(self, query: str, top_k: int, matrix_user_id: str) -> list[dict]:
+        """Search via central portal API (legacy fallback)."""
         try:
             body = {"query": query, "limit": top_k, "matrix_user_id": matrix_user_id}
             async with httpx.AsyncClient(timeout=15.0) as client:
@@ -337,16 +372,23 @@ class DocumentRAG:
                 resp.raise_for_status()
                 return resp.json().get("results", [])
         except Exception:
-            logger.debug("Document search failed", exc_info=True)
+            logger.debug("Portal document search failed", exc_info=True)
             return []
 
-    async def validate_key(self, api_key: str) -> dict | None:
-        """Legacy: no longer used (keys replaced by portal auth)."""
-        return None
-
-    async def get_org_stats(self, org_slug: str) -> dict | None:
-        """Legacy: no longer used."""
-        return None
+    async def health(self) -> dict | None:
+        """Check local RAG service health."""
+        if not self.use_local_rag:
+            return None
+        try:
+            headers: dict[str, str] = {}
+            if self.rag_auth_token:
+                headers["Authorization"] = f"Bearer {self.rag_auth_token}"
+            async with httpx.AsyncClient(timeout=5.0) as client:
+                resp = await client.get(f"{self.rag_endpoint}/health", headers=headers)
+                resp.raise_for_status()
+                return resp.json()
+        except Exception:
+            return None
 
     def format_context(self, results: list[dict]) -> str:
         if not results:
@@ -896,7 +938,8 @@ class Bot:
         self.voice_sessions: dict[str, VoiceSession] = {}
         self.active_calls = set()  # rooms where we've sent call member event
         self.active_callers: dict[str, set[str]] = {}  # room_id → set of caller user IDs
-        self.rag = DocumentRAG(PORTAL_URL, BOT_API_KEY)
+        self.rag = DocumentRAG(PORTAL_URL, BOT_API_KEY,
+                               rag_endpoint=RAG_ENDPOINT, rag_auth_token=RAG_AUTH_TOKEN)
         self.memory = MemoryClient(MEMORY_SERVICE_URL)
         self.atlassian = AtlassianClient(PORTAL_URL, BOT_API_KEY)
         self.llm = AsyncOpenAI(base_url=LITELLM_URL, api_key=LITELLM_KEY) if LITELLM_URL else None
@@ -911,13 +954,21 @@ class Bot:
         self._room_document_context: dict[str, list[dict]] = {}  # room_id -> [{type, filename, text, timestamp}, ...]
 
     async def _has_documents(self, matrix_user_id: str) -> bool:
-        """Check if user has documents via MatrixHost portal API.
+        """Check if user has documents via local RAG or MatrixHost portal API.
 
         Results are cached per session.
         """
         if matrix_user_id in self._documents_cache:
             return self._documents_cache[matrix_user_id] is not None
 
+        # Check local RAG service first (customer-VM encrypted RAG)
+        if self.rag.use_local_rag:
+            health = await self.rag.health()
+            if health and health.get("document_count", 0) > 0:
+                self._documents_cache[matrix_user_id] = "connected"
+                return True
+
+        # Fallback: check via central portal
         if self.atlassian.enabled:
             try:
                 async with httpx.AsyncClient(timeout=10.0) as client: