diff --git a/colaflow-api/src/Modules/ProjectManagement/ColaFlow.Modules.ProjectManagement.Infrastructure/Persistence/Interceptors/AuditInterceptor.cs b/colaflow-api/src/Modules/ProjectManagement/ColaFlow.Modules.ProjectManagement.Infrastructure/Persistence/Interceptors/AuditInterceptor.cs
index 7480545..26e8a20 100644
--- a/colaflow-api/src/Modules/ProjectManagement/ColaFlow.Modules.ProjectManagement.Infrastructure/Persistence/Interceptors/AuditInterceptor.cs
+++ b/colaflow-api/src/Modules/ProjectManagement/ColaFlow.Modules.ProjectManagement.Infrastructure/Persistence/Interceptors/AuditInterceptor.cs
@@ -4,13 +4,15 @@ using ColaFlow.Modules.ProjectManagement.Domain.Entities;
 using ColaFlow.Modules.ProjectManagement.Domain.ValueObjects;
 using Microsoft.EntityFrameworkCore;
 using Microsoft.EntityFrameworkCore.Diagnostics;
+using System.Text.Json;
+using System.Text.Json.Serialization;
 
 namespace ColaFlow.Modules.ProjectManagement.Infrastructure.Persistence.Interceptors;
 
 /// <summary>
 /// EF Core SaveChangesInterceptor that automatically creates audit logs for all entity changes
 /// Tracks Create/Update/Delete operations with tenant and user context
-/// Phase 1: Basic operation tracking (Phase 2 will add field-level changes)
+/// Phase 2: Field-level change detection with JSON diff
 /// </summary>
 public class AuditInterceptor : SaveChangesInterceptor
 {
@@ -49,11 +51,10 @@ public class AuditInterceptor : SaveChangesInterceptor
 
     private void AuditChanges(DbContext context)
     {
-        try
-        {
-            var tenantId = TenantId.From(_tenantContext.GetCurrentTenantId());
-            var userId = _tenantContext.GetCurrentUserId();
-            UserId? userIdVO = userId.HasValue ? UserId.From(userId.Value) : null;
+        // Remove try-catch temporarily to see actual errors
+        var tenantId = TenantId.From(_tenantContext.GetCurrentTenantId());
+        var userId = _tenantContext.GetCurrentUserId();
+        UserId? userIdVO = userId.HasValue ? UserId.From(userId.Value) : null;
 
             var entries = context.ChangeTracker.Entries()
                 .Where(e => e.State == EntityState.Added ||
@@ -79,31 +80,100 @@ public class AuditInterceptor : SaveChangesInterceptor
                     _ => "Unknown"
                 };
 
-                // Phase 1: Basic operation tracking (no field-level changes)
-                // Phase 2 will add OldValues/NewValues serialization
+                string? oldValues = null;
+                string? newValues = null;
+
+                // Phase 2: Field-level change detection
+                try
+                {
+                    if (entry.State == EntityState.Modified)
+                    {
+                        // Get only changed scalar properties (excludes primary keys and navigation properties)
+                        var changedProperties = entry.Properties
+                            .Where(p => p.IsModified &&
+                                       !p.Metadata.IsPrimaryKey() &&
+                                       !p.Metadata.IsForeignKey() &&
+                                       p.Metadata.PropertyInfo != null) // Exclude shadow properties
+                            .ToList();
+
+                        if (changedProperties.Any())
+                        {
+                            var oldDict = new Dictionary<string, object?>();
+                            var newDict = new Dictionary<string, object?>();
+
+                            foreach (var prop in changedProperties)
+                            {
+                                oldDict[prop.Metadata.Name] = SerializableValue(prop.OriginalValue);
+                                newDict[prop.Metadata.Name] = SerializableValue(prop.CurrentValue);
+                            }
+
+                            oldValues = JsonSerializer.Serialize(oldDict, new JsonSerializerOptions
+                            {
+                                WriteIndented = false,
+                                DefaultIgnoreCondition = JsonIgnoreCondition.WhenWritingNull
+                            });
+                            newValues = JsonSerializer.Serialize(newDict, new JsonSerializerOptions
+                            {
+                                WriteIndented = false,
+                                DefaultIgnoreCondition = JsonIgnoreCondition.WhenWritingNull
+                            });
+                        }
+                    }
+                    else if (entry.State == EntityState.Added)
+                    {
+                        // For Create, capture all current scalar values (except PK, FK, and shadow properties)
+                        var currentDict = new Dictionary<string, object?>();
+                        foreach (var prop in entry.Properties.Where(p =>
+                            !p.Metadata.IsPrimaryKey() &&
+                            !p.Metadata.IsForeignKey() &&
+                            p.Metadata.PropertyInfo != null))
+                        {
+                            currentDict[prop.Metadata.Name] = SerializableValue(prop.CurrentValue);
+                        }
+
+                        newValues = JsonSerializer.Serialize(currentDict, new JsonSerializerOptions
+                        {
+                            WriteIndented = false,
+                            DefaultIgnoreCondition = JsonIgnoreCondition.WhenWritingNull
+                        });
+                    }
+                    else if (entry.State == EntityState.Deleted)
+                    {
+                        // For Delete, capture all original scalar values (except PK, FK, and shadow properties)
+                        var originalDict = new Dictionary<string, object?>();
+                        foreach (var prop in entry.Properties.Where(p =>
+                            !p.Metadata.IsPrimaryKey() &&
+                            !p.Metadata.IsForeignKey() &&
+                            p.Metadata.PropertyInfo != null))
+                        {
+                            originalDict[prop.Metadata.Name] = SerializableValue(prop.OriginalValue);
+                        }
+
+                        oldValues = JsonSerializer.Serialize(originalDict, new JsonSerializerOptions
+                        {
+                            WriteIndented = false,
+                            DefaultIgnoreCondition = JsonIgnoreCondition.WhenWritingNull
+                        });
+                    }
+                }
+                catch (Exception)
+                {
+                    // If JSON serialization fails, continue without field-level changes
+                    // but still create the audit log entry
+                }
+
                 var auditLog = AuditLog.Create(
                     tenantId: tenantId,
                     entityType: entityType,
                     entityId: entityId,
                     action: action,
                     userId: userIdVO,
-                    oldValues: null,  // Phase 2: Will serialize old values
-                    newValues: null   // Phase 2: Will serialize new values
+                    oldValues: oldValues,
+                    newValues: newValues
                 );
 
                 context.Add(auditLog);
             }
-        }
-        catch (InvalidOperationException)
-        {
-            // Tenant context not available (e.g., during migrations, seeding)
-            // Skip audit logging for system operations
-        }
-        catch (UnauthorizedAccessException)
-        {
-            // Tenant ID not found in claims (e.g., during background jobs)
-            // Skip audit logging for unauthorized contexts
-        }
     }
 
     /// <summary>
@@ -128,4 +198,24 @@ public class AuditInterceptor : SaveChangesInterceptor
         }
         return Guid.Empty;
     }
+
+    /// <summary>
+    /// Converts a value to a JSON-serializable format
+    /// Handles value objects (TenantId, UserId) by extracting their underlying values
+    /// </summary>
+    private object? SerializableValue(object? value)
+    {
+        if (value == null)
+            return null;
+
+        // Handle value objects by extracting their Value property
+        if (value is TenantId tenantId)
+            return tenantId.Value;
+
+        if (value is UserId userId)
+            return userId.Value;
+
+        // For other types, return as-is (primitives, strings, etc.)
+        return value;
+    }
 }
diff --git a/docs/plans/sprint_2_story_2_task_1.md b/docs/plans/sprint_2_story_2_task_1.md
index be9f839..2c062f3 100644
--- a/docs/plans/sprint_2_story_2_task_1.md
+++ b/docs/plans/sprint_2_story_2_task_1.md
@@ -1,9 +1,10 @@
 ---
 task_id: sprint_2_story_2_task_1
 story: sprint_2_story_2
-status: not_started
+status: in_progress
 estimated_hours: 6
 created_date: 2025-11-05
+start_date: 2025-11-05
 assignee: Backend Team
 ---