diff --git a/pkg/service/service.go b/pkg/service/service.go
index f7b22345..8aa478a0 100644
--- a/pkg/service/service.go
+++ b/pkg/service/service.go
@@ -16,7 +16,6 @@ package service
 
 import (
 	"context"
-	"log"
 
 	"github.com/frostbyte73/core"
 	"github.com/livekit/protocol/logger"
@@ -99,7 +98,7 @@ func (s *Service) HandleDispatchRules(callingNumber, calledNumber, calledHost, s
 	})
 
 	if err != nil {
-		log.Println(err)
+		logger.Warnw("SIP handle dispatch rule error", err)
 		return "", "", false, true
 	}
 
diff --git a/pkg/sip/inbound.go b/pkg/sip/inbound.go
index 3689c77e..19eef59d 100644
--- a/pkg/sip/inbound.go
+++ b/pkg/sip/inbound.go
@@ -16,12 +16,12 @@ package sip
 
 import (
 	"fmt"
-	"log"
 	"sync/atomic"
 	"time"
 
 	"github.com/emiago/sipgo/sip"
 	"github.com/icholy/digest"
+	"github.com/livekit/protocol/logger"
 	"github.com/pion/sdp/v2"
 
 	"github.com/livekit/sip/pkg/config"
@@ -92,6 +92,8 @@ func (s *Server) handleInviteAuth(req *sip.Request, tx sip.ServerTransaction, fr
 }
 
 func (s *Server) onInvite(req *sip.Request, tx sip.ServerTransaction) {
+	_ = tx.Respond(sip.NewResponseFromRequest(req, 180, "Ringing", nil))
+
 	tag, err := getTagValue(req)
 	if err != nil {
 		sipErrorResponse(tx, req)
@@ -111,9 +113,11 @@ func (s *Server) onInvite(req *sip.Request, tx sip.ServerTransaction) {
 	}
 	src := req.Source()
 
+	logger.Infow("INVITE", "tag", tag, "from", from, "to", to)
+
 	username, password, err := s.authHandler(from.Address.User, to.Address.User, to.Address.Host, src)
 	if err != nil {
-		log.Printf("Rejecting inbound call, doesn't match any Trunks %q %q %q %q\n", from.Address.User, to.Address.User, to.Address.Host, src)
+		logger.Warnw("Rejecting inbound call, doesn't match any Trunks", err, "tag", tag, "src", src, "from", from, "to", to, "to-host", to.Address.Host)
 		sipErrorResponse(tx, req)
 		return
 	}
@@ -128,6 +132,8 @@ func (s *Server) onInvite(req *sip.Request, tx sip.ServerTransaction) {
 type inboundCall struct {
 	s            *Server
 	tag          string
+	inviteReq    *sip.Request
+	inviteResp   *sip.Response
 	from         *sip.FromHeader
 	to           *sip.ToHeader
 	src          string
@@ -148,6 +154,9 @@ func (s *Server) newInboundCall(tag string, from *sip.FromHeader, to *sip.ToHead
 		dtmf:   make(chan byte, 10),
 		lkRoom: NewRoom(), // we need it created earlier so that the audio mixer is available for pin prompts
 	}
+	s.cmu.Lock()
+	s.activeCalls[tag] = c
+	s.cmu.Unlock()
 	return c
 }
 
@@ -156,30 +165,30 @@ func (c *inboundCall) handleInvite(req *sip.Request, tx sip.ServerTransaction, c
 	// Otherwise, we could even learn that this number is not allowed and reject the call, or ask for pin if required.
 	roomName, identity, requirePin, rejectInvite := c.s.dispatchRuleHandler(c.from.Address.User, c.to.Address.User, c.to.Address.Host, c.src, "", false)
 	if rejectInvite {
-		log.Printf("Rejecting inbound call, doesn't match any Dispatch Rules %q %q %q %q\n", c.from.Address.User, c.to.Address.User, c.to.Address.Host, c.src)
+		logger.Infow("Rejecting inbound call, doesn't match any Dispatch Rules", "from", c.from.Address.User, "to", c.to.Address.User, "to-host", c.to.Address.Host, "src", c.src)
 		sipErrorResponse(tx, req)
+		c.Close()
 		return
 	}
 
 	// We need to start media first, otherwise we won't be able to send audio prompts to the caller, or receive DTMF.
 	answerData, err := c.runMediaConn(req.Body(), conf)
-
 	if err != nil {
 		sipErrorResponse(tx, req)
+		c.Close()
 		return
 	}
-	c.s.cmu.Lock()
-	c.s.activeCalls[c.tag] = c
-	c.s.cmu.Unlock()
 
 	res := sip.NewResponseFromRequest(req, 200, "OK", answerData)
 	res.AppendHeader(&sip.ContactHeader{Address: sip.Uri{Host: c.s.signalingIp, Port: c.s.conf.SIPPort}})
 	res.AppendHeader(&contentTypeHeaderSDP)
 	if err = tx.Respond(res); err != nil {
-		log.Println(err)
+		logger.Errorw("Cannot respond to INVITE", err)
 		// TODO: should we close the call in this case?
 		return
 	}
+	c.inviteReq = req
+	c.inviteResp = res
 	// We own this goroutine, so can freely block.
 	if requirePin {
 		c.pinPrompt()
@@ -188,6 +197,16 @@ func (c *inboundCall) handleInvite(req *sip.Request, tx sip.ServerTransaction, c
 	}
 }
 
+func (c *inboundCall) sendBye() {
+	if c.inviteReq == nil {
+		return
+	}
+	res := sip.NewByeRequest(c.inviteReq, c.inviteResp, nil)
+	c.s.sipSrv.TransportLayer().WriteMsg(res)
+	c.inviteReq = nil
+	c.inviteResp = nil
+}
+
 func (c *inboundCall) runMediaConn(offerData []byte, conf *config.Config) (answerData []byte, _ error) {
 	conn := NewMediaConn()
 	conn.OnRTP(c)
@@ -209,7 +228,7 @@ func (c *inboundCall) runMediaConn(offerData []byte, conf *config.Config) (answe
 }
 
 func (c *inboundCall) pinPrompt() {
-	log.Printf("Requesting Pin for SIP call %q -> %q\n", c.from.Address.User, c.to.Address.User)
+	logger.Infow("Requesting Pin for SIP call", "tag", c.tag, "from", c.from.Address.User, "to", c.to.Address.User)
 	const pinLimit = 16
 	c.playAudio(c.s.res.enterPin)
 	pin := ""
@@ -228,9 +247,10 @@ func (c *inboundCall) pinPrompt() {
 				// End of the pin
 				noPin = pin == ""
 
-				log.Printf("Checking Pin for SIP call %q -> %q = %q (noPin = %v)\n", c.from.Address.User, c.to.Address.User, pin, noPin)
+				logger.Infow("Checking Pin for SIP call", "tag", c.tag, "from", c.from.Address.User, "to", c.to.Address.User, "pin", pin, "noPin", noPin)
 				roomName, identity, requirePin, reject := c.s.dispatchRuleHandler(c.from.Address.User, c.to.Address.User, c.to.Address.Host, c.src, pin, noPin)
 				if reject || requirePin || roomName == "" {
+					logger.Infow("Rejecting call", "tag", c.tag, "from", c.from.Address.User, "to", c.to.Address.User, "pin", pin, "noPin", noPin)
 					c.playAudio(c.s.res.wrongPin)
 					c.Close()
 					return
@@ -250,14 +270,15 @@ func (c *inboundCall) pinPrompt() {
 }
 
 func (c *inboundCall) Close() error {
-	if c.done.CompareAndSwap(false, true) {
+	if !c.done.CompareAndSwap(false, true) {
 		return nil
 	}
+	logger.Infow("Closing inbound call", "tag", c.tag, "from", c.from.Address.User, "to", c.to.Address.User)
 	c.s.cmu.Lock()
 	delete(c.s.activeCalls, c.tag)
 	c.s.cmu.Unlock()
 	c.closeMedia()
-	// FIXME: drop the actual call
+	c.sendBye()
 	return nil
 }
 
@@ -267,7 +288,10 @@ func (c *inboundCall) closeMedia() {
 		p.Close()
 		c.lkRoom = nil
 	}
-	c.rtpConn.Close()
+	if c.rtpConn != nil {
+		c.rtpConn.Close()
+		c.rtpConn = nil
+	}
 	close(c.dtmf)
 }
 
@@ -304,10 +328,10 @@ func (c *inboundCall) createLiveKitParticipant(roomName, participantIdentity str
 }
 
 func (c *inboundCall) joinRoom(roomName, identity string) {
-	log.Printf("Bridging SIP call %q -> %q to room %q (as %q)\n", c.from.Address.User, c.to.Address.User, roomName, identity)
+	logger.Infow("Bridging SIP call", "tag", c.tag, "from", c.from.Address.User, "to", c.to.Address.User, "roomName", roomName, "identity", identity)
 	c.playAudio(c.s.res.roomJoin)
 	if err := c.createLiveKitParticipant(roomName, identity); err != nil {
-		log.Println(err)
+		logger.Errorw("Cannot create LiveKit participant", err, "tag", c.tag)
 	}
 }
 
diff --git a/pkg/sip/room.go b/pkg/sip/room.go
index c8e25cf1..bcae9172 100644
--- a/pkg/sip/room.go
+++ b/pkg/sip/room.go
@@ -15,9 +15,9 @@
 package sip
 
 import (
-	"log"
 	"sync/atomic"
 
+	"github.com/livekit/protocol/logger"
 	lksdk "github.com/livekit/server-sdk-go"
 	"github.com/pion/webrtc/v3"
 
@@ -66,7 +66,7 @@ func (r *Room) Connect(conf *config.Config, roomName string, identity string) er
 				OnTrackSubscribed: func(track *webrtc.TrackRemote, pub *lksdk.RemoteTrackPublication, rp *lksdk.RemoteParticipant) {
 					if track.Kind() != webrtc.RTPCodecTypeAudio {
 						if err := pub.SetSubscribed(false); err != nil {
-							log.Println(err)
+							logger.Errorw("Cannot unsubscribe from the track", err)
 						}
 						return
 					}
@@ -119,7 +119,7 @@ func (r *Room) SetOutput(out media.Writer[media.LPCM16Sample]) {
 }
 
 func (r *Room) Close() error {
-	if r.room == nil {
+	if r.room != nil {
 		r.room.Disconnect()
 		r.room = nil
 	}
diff --git a/pkg/sip/server.go b/pkg/sip/server.go
index a60c8032..7deb540d 100644
--- a/pkg/sip/server.go
+++ b/pkg/sip/server.go
@@ -23,6 +23,7 @@ import (
 	"github.com/emiago/sipgo"
 	"github.com/emiago/sipgo/sip"
 	"github.com/icholy/digest"
+	"github.com/livekit/protocol/logger"
 	"golang.org/x/exp/maps"
 
 	"github.com/livekit/sip/pkg/config"
@@ -144,6 +145,7 @@ func (s *Server) Start(agent *sipgo.UserAgent) error {
 			sipErrorResponse(tx, req)
 			return
 		}
+		logger.Infow("BYE", "tag", tag)
 
 		s.cmu.RLock()
 		c := s.activeCalls[tag]
@@ -158,6 +160,7 @@ func (s *Server) Start(agent *sipgo.UserAgent) error {
 	// Ignore ACKs
 	s.sipSrv.OnAck(func(req *sip.Request, tx sip.ServerTransaction) {})
 
+	// TODO: pass proper context here
 	go func() {
 		panic(s.sipSrv.ListenAndServe(context.TODO(), "udp", fmt.Sprintf("0.0.0.0:%d", s.conf.SIPPort)))
 	}()
diff --git a/pkg/sip/service.go b/pkg/sip/service.go
index bb05cb5d..a3be2847 100644
--- a/pkg/sip/service.go
+++ b/pkg/sip/service.go
@@ -15,16 +15,34 @@
 package sip
 
 import (
+	"errors"
 	"log"
 
 	"github.com/emiago/sipgo"
 	"github.com/livekit/protocol/logger"
 	"github.com/livekit/protocol/rpc"
+	"github.com/rs/zerolog"
+	zlog "github.com/rs/zerolog/log"
 
 	"github.com/livekit/sip/pkg/config"
 	"github.com/livekit/sip/version"
 )
 
+func init() {
+	zlog.Logger = zerolog.New(nil).Hook(zerolog.HookFunc(func(e *zerolog.Event, level zerolog.Level, message string) {
+		switch level {
+		case zerolog.DebugLevel:
+			logger.Debugw(message)
+		case zerolog.InfoLevel:
+			logger.Infow(message)
+		case zerolog.WarnLevel:
+			logger.Warnw(message, errors.New(message))
+		case zerolog.ErrorLevel:
+			logger.Errorw(message, errors.New(message))
+		}
+	}))
+}
+
 type Service struct {
 	cli *Client
 	srv *Server
diff --git a/test/client/main.go b/test/client/main.go
index 73dfe100..9dd5d2d9 100644
--- a/test/client/main.go
+++ b/test/client/main.go
@@ -40,6 +40,7 @@ var (
 	username  = flag.String("username", "", "")
 	password  = flag.String("password", "", "")
 	sipUri    = flag.String("sip-uri", "example.pstn.twilio.com", "")
+	filePath  = flag.String("play", "audio.mkv", "")
 )
 
 func startMediaListener() *net.UDPConn {
@@ -140,7 +141,7 @@ func parseAnswer(in []byte) (string, int) {
 func sendAudioPackets(conn *net.UDPConn, body []byte) {
 	ip, port := parseAnswer(body)
 
-	r, err := os.Open("audio.mkv")
+	r, err := os.Open(*filePath)
 	if err != nil {
 		panic(err)
 	}