diff --git a/docs/projects/Pokedex.Online/PROGRESS.md b/docs/projects/Pokedex.Online/PROGRESS.md
index 635452b..e8abcce 100644
--- a/docs/projects/Pokedex.Online/PROGRESS.md
+++ b/docs/projects/Pokedex.Online/PROGRESS.md
@@ -282,7 +282,7 @@ Last Updated: January 29, 2026
 
 ---
 
-## Phase 7: Production Deployment 🚧 (1/6 complete)
+## Phase 7: Production Deployment 🚧 (2/6 complete)
 **Duration**: 3-4 days  
 **Status**: In Progress
 
@@ -296,12 +296,14 @@ Last Updated: January 29, 2026
 - [x] Rename `Dockerfile` → `Dockerfile.frontend` for clarity
 - [x] Create `server/.env.example` for deployment reference
 
-### ⏳ Step 29: Update Nginx Configuration
-- [ ] Update `nginx.conf` for production
-- [ ] Configure SSL/TLS settings
-- [ ] Add security headers
-- [ ] Configure caching policies
-- [ ] Add rate limiting rules
+### ✅ Step 29: Update Nginx Configuration
+- [x] Update `nginx.conf` for production
+- [x] Add enhanced security headers (X-Frame-Options, CSP, Referrer-Policy)
+- [x] Configure caching policies (1y for assets, no-cache for HTML)
+- [x] Add improved gzip compression settings
+- [x] Add backend API proxy (`/api/` → `http://backend:3000/`)
+- [x] Add health check endpoint (`/health`)
+- [x] Improve proxy buffering and timeout settings
 
 ### ⏳ Step 30: Prepare Backend for Production
 - [ ] Review `server/` code for production readiness