diff --git a/README.md b/README.md
index 4dcf88b6..5f79f4f0 100644
--- a/README.md
+++ b/README.md
@@ -25,21 +25,16 @@ The Nasp kernel module comes with a user space [CLI](./cli/) written in Go. The
 ### Agent (server)
 
 The agent is the server side of the CLI. It is responsible for the following:
+
 - communicates with the kernel module directly
-- parses and compiles the policy file to Wasm and loads it to the kernel module
+- parses policy rule files and loads them to the kernel module
 - signs CSR requests generated by the kernel module
 - adds metadata from the host environment to enrich process data. (e.g. Kubernetes, AWS, etc...)
 
 Usage:
 
 ```bash
-sudo nasp agent
-```
-
-### Client
-
-```bash
-nasp load-policy --policy-file ./policy.json
+sudo nasp agent --rules-path $(pwd)/nasp.d/rules --sd-path $(pwd)/nasp.d/services
 ```
 
 ## Development
@@ -59,7 +54,7 @@ GOOS=linux make build
 ### Run the agent on the Lima guest
 
 ```bash
-sudo ./bin/nasp --rules-path $(pwd)/rules.d
+sudo ./bin/nasp --rules-path $(pwd)/nasp.d/rules --sd-path $(pwd)/nasp.d/services
 ```
 
 ## Installation
diff --git a/internal/cli/cmd/agent/agent.go b/internal/cli/cmd/agent/agent.go
index 8b705009..d1d0aca2 100644
--- a/internal/cli/cmd/agent/agent.go
+++ b/internal/cli/cmd/agent/agent.go
@@ -33,6 +33,7 @@ import (
 	"github.com/cisco-open/nasp/pkg/agent/server"
 	"github.com/cisco-open/nasp/pkg/config"
 	"github.com/cisco-open/nasp/pkg/rules"
+	"github.com/cisco-open/nasp/pkg/sd"
 	"github.com/cisco-open/nasp/pkg/tls"
 )
 
@@ -59,6 +60,7 @@ func NewCommand(c cli.CLI) *cobra.Command {
 	cmd.PersistentFlags().String("agent-local-address", "/tmp/nasp/agent.sock", "Local address")
 	cmd.Flags().String("kernel-module-device", "/dev/nasp", "Device for the Nasp kernel module")
 	cmd.Flags().StringSlice("rules-path", nil, "Rules path")
+	cmd.Flags().StringSlice("sd-path", nil, "Service discovery definition path")
 	cmd.Flags().String("trust-domain", config.DefaultTrustDomain, "Trust domain")
 	cmd.Flags().Duration("default-cert-ttl", config.DefaultCertTTLDuration, "Default certificate TTL")
 	cmd.Flags().String("ca-pem-path", "", "Path for CA pem")
@@ -116,8 +118,6 @@ func (c *agentCommand) run(cmd *cobra.Command) error {
 		logger.Info("sending config to kernel")
 		if cj, err := json.Marshal(config.KernelModuleConfig{TrustDomain: c.cli.Configuration().Agent.TrustDomain}); err != nil {
 			c.cli.Logger().Error(err, "could not marshal module config")
-
-			return
 		} else {
 			eventBus.Publish(messenger.MessageOutgoingTopic, messenger.NewCommand(messenger.Command{
 				Command: "load_config",
@@ -126,6 +126,25 @@ func (c *agentCommand) run(cmd *cobra.Command) error {
 		}
 	})
 
+	// service discovery loader
+	eventBus.Subscribe(messenger.MessengerStartedTopic, func(topic string, _ bool) {
+		go func() {
+			l := sd.NewFilesLoader(c.cli.Viper().GetStringSlice("agent.sdPath"), logger)
+			if err := l.Run(cmd.Context(), func(entries sd.Entries) {
+				if j, err := json.Marshal(entries); err != nil {
+					c.cli.Logger().Error(err, "could not marshal module config")
+				} else {
+					eventBus.Publish(messenger.MessageOutgoingTopic, messenger.NewCommand(messenger.Command{
+						Command: "load_sd_info",
+						Code:    j,
+					}))
+				}
+			}); err != nil {
+				errChan <- err
+			}
+		}()
+	})
+
 	// rules loader
 	eventBus.Subscribe(messenger.MessengerStartedTopic, func(topic string, _ bool) {
 		go func() {
diff --git a/rules.d/ci.yaml b/nasp.d/rules/ci.yaml
similarity index 88%
rename from rules.d/ci.yaml
rename to nasp.d/rules/ci.yaml
index a485657c..34fe4e1a 100644
--- a/rules.d/ci.yaml
+++ b/nasp.d/rules/ci.yaml
@@ -20,7 +20,7 @@
   # local python or go file-server
   - linux:uid: [501, 1001]
     linux:binary:name: [python3.10, python3.11, file-server]
-    destination:port: 8000
+    destination:port: [8000, 8080]
   properties:
     mtls: true
     workloadID: accounting/department-a/important-backend
@@ -41,3 +41,8 @@
   properties:
     mtls: true
     workloadID: curl
+  egress:
+  - selectors:
+    - label: traefik
+    properties:
+      workloadID: specific-workload-id
diff --git a/nasp.d/services/ci.yaml b/nasp.d/services/ci.yaml
new file mode 100644
index 00000000..3ce652a3
--- /dev/null
+++ b/nasp.d/services/ci.yaml
@@ -0,0 +1,10 @@
+- tags:
+  - app:label:traefik
+  - linux:uid:500
+  - linux:binary:name:traefik
+  addresses:
+  - localhost:8000
+- addresses:
+  - localhost:8080
+  tags:
+  - app-label:python
diff --git a/pkg/sd/entry.go b/pkg/sd/entry.go
new file mode 100644
index 00000000..b1b90ae6
--- /dev/null
+++ b/pkg/sd/entry.go
@@ -0,0 +1,33 @@
+/*
+ * The MIT License (MIT)
+ * Copyright (c) 2023 Cisco and/or its affiliates. All rights reserved.
+ *
+ * Permission is hereby granted, free of charge, to any person obtaining a copy of this software
+ * and associated documentation files (the "Software"), to deal in the Software without restriction,
+ * including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense,
+ * and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so,
+ * subject to the following conditions:
+ *
+ * The above copyright notice and this permission notice shall be included in all copies or substantial
+ * portions of the Software.
+ *
+ * THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED
+ * TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL
+ * THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT,
+ * TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
+ */
+
+package sd
+
+type Entries map[string]Entry
+
+type RawEntries []*RawEntry
+
+type RawEntry struct {
+	Tags      []string `yaml:"tags,omitempty" json:"tags,omitempty"`
+	Addresses []string `yaml:"addresses,omitempty" json:"addresses,omitempty"`
+}
+
+type Entry struct {
+	Tags []string `yaml:"tags,omitempty" json:"tags,omitempty"`
+}
diff --git a/pkg/sd/loader.go b/pkg/sd/loader.go
new file mode 100644
index 00000000..261a32f4
--- /dev/null
+++ b/pkg/sd/loader.go
@@ -0,0 +1,154 @@
+/*
+ * The MIT License (MIT)
+ * Copyright (c) 2023 Cisco and/or its affiliates. All rights reserved.
+ *
+ * Permission is hereby granted, free of charge, to any person obtaining a copy of this software
+ * and associated documentation files (the "Software"), to deal in the Software without restriction,
+ * including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense,
+ * and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so,
+ * subject to the following conditions:
+ *
+ * The above copyright notice and this permission notice shall be included in all copies or substantial
+ * portions of the Software.
+ *
+ * THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED
+ * TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL
+ * THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT,
+ * TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
+ */
+
+package sd
+
+import (
+	"context"
+	"fmt"
+	"net"
+	"net/netip"
+	"strconv"
+	"strings"
+	"sync"
+
+	"github.com/go-logr/logr"
+	"gopkg.in/yaml.v2"
+
+	"github.com/cisco-open/nasp/pkg/util"
+)
+
+type FilesLoader interface {
+	Run(context.Context, EntryHandlerFunc) error
+}
+
+type filesLoader struct {
+	fileContentLoader util.FileContentLoader
+	logger            logr.Logger
+
+	mu sync.Mutex
+}
+
+type EntryHandlerFunc func(Entries)
+
+func NewFilesLoader(paths []string, logger logr.Logger) FilesLoader {
+	l := logger.WithName("sdFileLoader")
+
+	return &filesLoader{
+		fileContentLoader: util.NewFileContentLoader(paths, l),
+		logger:            l,
+
+		mu: sync.Mutex{},
+	}
+}
+
+func (r *filesLoader) Run(ctx context.Context, h EntryHandlerFunc) error {
+	return r.fileContentLoader.Run(ctx, func(contents map[string][]byte) {
+		loadedEntries := make(Entries, 0)
+
+		for file, content := range contents {
+			var rawEntries RawEntries
+			if err := yaml.Unmarshal(content, &rawEntries); err != nil {
+				r.logger.Error(err, "error during sd file parsing", "path", file)
+				continue
+			}
+
+			for _, entry := range rawEntries {
+				// skip invalid entries
+				if len(entry.Tags) == 0 || len(entry.Addresses) == 0 {
+					continue
+				}
+				for _, address := range entry.Addresses {
+					addrs := resolveAddress(address)
+					for _, addr := range addrs {
+						loadedEntries[addressToString(addr)] = Entry{
+							Tags: entry.Tags,
+						}
+					}
+				}
+			}
+		}
+
+		h(loadedEntries)
+	})
+}
+
+func addressToString(addr netip.AddrPort) string {
+	if addr.Port() == 0 {
+		return addr.Addr().StringExpanded()
+	}
+
+	return fmt.Sprintf("%s:%d", addr.Addr().StringExpanded(), addr.Port())
+}
+
+func resolveAddress(address string) []netip.AddrPort {
+	hasPort := strings.ContainsRune(address, ':')
+	addrporrs := make([]netip.AddrPort, 0)
+
+	var host, port string
+	var err error
+
+	if hasPort {
+		host, port, err = net.SplitHostPort(address)
+		if err != nil {
+			return nil
+		}
+	} else {
+		host = address
+	}
+
+	var intport int
+	if port != "" {
+		intport, err = strconv.Atoi(port)
+		if err != nil {
+			return nil
+		}
+	}
+
+	// there are some issues at some systems retrieving ipv4 address when there are ipv6 addresses as well
+	// for that reason there is a separate direct ipv4 lookup
+	// TODO @wayne - more investigation needed
+	addrs := make(map[netip.Addr]struct{})
+	if addr, err := netip.ParseAddr(host); err != nil {
+		netips, err := net.DefaultResolver.LookupIP(context.Background(), "ip4", host)
+		if err == nil {
+			for _, ip := range netips {
+				if addr, ok := netip.AddrFromSlice(ip.To4()); ok {
+					addrs[addr] = struct{}{}
+				}
+			}
+		}
+		netips, err = net.DefaultResolver.LookupIP(context.Background(), "ip", host)
+		if err == nil {
+			for _, ip := range netips {
+				if addr, ok := netip.AddrFromSlice(ip); ok {
+					addrs[addr] = struct{}{}
+				}
+			}
+		}
+	} else {
+		addrs[addr] = struct{}{}
+	}
+
+	for addr := range addrs {
+		addrporrs = append(addrporrs, netip.AddrPortFrom(addr, uint16(intport)))
+	}
+
+	return addrporrs
+}