diff --git a/VERSION_COMPATIBILITY.md b/VERSION_COMPATIBILITY.md
new file mode 100644
index 00000000..2341106d
--- /dev/null
+++ b/VERSION_COMPATIBILITY.md
@@ -0,0 +1,208 @@
+# Version Compatibility Guide
+
+## Overview
+
+This document explains the version compatibility requirements for the Midnight Indexer components to help avoid configuration issues like those described in [Issue #597](https://github.com/midnightntwrk/midnight-indexer/issues/597).
+
+## Critical Rule: Never Use `latest` Tag
+
+**⚠️ IMPORTANT:** Never use the `latest` tag for any component in production or development environments. Always specify exact version numbers.
+
+Using `latest` can lead to:
+- Incompatible component versions
+- API endpoint mismatches (404 errors on `/api/v3/graphql`)
+- Unpredictable behavior
+- Difficult-to-debug issues
+
+## Version Requirements
+
+### All Indexer Components Must Match
+
+All three Indexer components **MUST** use the **exact same version**:
+
+- `chain-indexer`
+- `wallet-indexer`
+- `indexer-api`
+
+### Midnight Node Compatibility
+
+Each Indexer version requires a specific Midnight Node version. Check the [`NODE_VERSION`](./NODE_VERSION) file in the repository root for the compatible Node version.
+
+## Current Version Compatibility
+
+| Indexer Version | Compatible Node Version |
+|----------------|------------------------|
+| 3.0.0 | 0.18.0 |
+| 3.0.0-alpha.19 | 0.18.0-rc.7 |
+
+## Example: Correct Configuration
+
+### Docker Compose
+
+```yaml
+version: '3.8'
+
+services:
+  midnight-node:
+    image: midnightntwrk/midnight-node:0.18.0  # ✅ Exact version from NODE_VERSION
+    # ... other configuration
+
+  chain-indexer:
+    image: midnightntwrk/chain-indexer:3.0.0  # ✅ Exact version
+    depends_on:
+      - midnight-node
+    # ... other configuration
+
+  wallet-indexer:
+    image: midnightntwrk/wallet-indexer:3.0.0  # ✅ Same version as chain-indexer
+    depends_on:
+      - midnight-node
+    # ... other configuration
+
+  indexer-api:
+    image: midnightntwrk/indexer-api:3.0.0  # ✅ Same version as other indexers
+    depends_on:
+      - chain-indexer
+      - wallet-indexer
+    ports:
+      - "3000:3000"
+    # ... other configuration
+```
+
+### Kubernetes
+
+```yaml
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: midnight-node
+spec:
+  template:
+    spec:
+      containers:
+      - name: midnight-node
+        image: midnightntwrk/midnight-node:0.18.0  # ✅ Exact version
+---
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: chain-indexer
+spec:
+  template:
+    spec:
+      containers:
+      - name: chain-indexer
+        image: midnightntwrk/chain-indexer:3.0.0  # ✅ Exact version
+---
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: wallet-indexer
+spec:
+  template:
+    spec:
+      containers:
+      - name: wallet-indexer
+        image: midnightntwrk/wallet-indexer:3.0.0  # ✅ Same version
+---
+apiVersion: apps/v1
+kind: Deployment
+metadata:
+  name: indexer-api
+spec:
+  template:
+    spec:
+      containers:
+      - name: indexer-api
+        image: midnightntwrk/indexer-api:3.0.0  # ✅ Same version
+```
+
+## Common Issues and Solutions
+
+### Issue: 404 on `/api/v3/graphql`
+
+**Symptom:**
+```bash
+curl -X POST http://localhost:3000/api/v3/graphql
+# Returns: HTTP/1.1 404 Not Found
+```
+
+**Cause:** Version mismatch between components, often due to using `latest` tag.
+
+**Solution:**
+1. Check the `NODE_VERSION` file for the correct Midnight Node version
+2. Ensure all Indexer components use the same exact version
+3. Update your Docker Compose or Kubernetes configuration with exact versions
+4. Restart all services
+
+### Issue: Different Author Values in Blocks Table
+
+**Symptom:** Two Indexers running on different servers produce different `author` values for the same blocks.
+
+**Cause:** This was a bug in versions prior to the fix for [Issue #548](https://github.com/midnightntwrk/midnight-indexer/issues/548).
+
+**Solution:**
+1. Upgrade to the latest version that includes the fix
+2. Ensure both Indexers use the exact same version
+3. If needed, re-index from genesis to ensure consistency
+
+## Verification
+
+### Check Component Versions
+
+When the Indexer API starts, it will log version information:
+
+```
+╔════════════════════════════════════════════════════════════════════════════╗
+║                    Midnight Indexer API Version Info                      ║
+╠════════════════════════════════════════════════════════════════════════════╣
+║  Indexer API Version:        3.0.0                                        ║
+║  Expected Node Version:      0.18.0                                       ║
+╠════════════════════════════════════════════════════════════════════════════╣
+║  IMPORTANT: All Indexer components must use the SAME version:             ║
+║    - chain-indexer:3.0.0                                                  ║
+║    - wallet-indexer:3.0.0                                                 ║
+║    - indexer-api:3.0.0                                                    ║
+║                                                                            ║
+║  NEVER use 'latest' tag in production - always specify exact versions!    ║
+╚════════════════════════════════════════════════════════════════════════════╝
+```
+
+### Verify API Endpoints
+
+Test that the v3 API is available:
+
+```bash
+# Should return GraphQL schema, not 404
+curl -X POST http://localhost:3000/api/v3/graphql \
+  -H "Content-Type: application/json" \
+  -d '{"query": "{ __schema { types { name } } }"}'
+```
+
+## Upgrading
+
+When upgrading to a new version:
+
+1. Check the `NODE_VERSION` file for the new compatible Node version
+2. Update **all** components simultaneously to the same version
+3. Update the Midnight Node to the compatible version
+4. Test the upgrade in a non-production environment first
+5. Verify all API endpoints are accessible
+
+## Support
+
+If you encounter version-related issues:
+
+1. Check this document for common solutions
+2. Verify all versions match the requirements
+3. Check the [GitHub Issues](https://github.com/midnightntwrk/midnight-indexer/issues) for similar problems
+4. Open a new issue with:
+   - Exact versions of all components
+   - Configuration files (docker-compose.yml, etc.)
+   - Error messages and logs
+
+## References
+
+- [Issue #597: API v3 endpoint 404](https://github.com/midnightntwrk/midnight-indexer/issues/597)
+- [Issue #548: Different author values](https://github.com/midnightntwrk/midnight-indexer/issues/548)
+- [NODE_VERSION file](./NODE_VERSION)
diff --git a/indexer-api/src/lib.rs b/indexer-api/src/lib.rs
index 6b096b7c..3f5b5ca8 100644
--- a/indexer-api/src/lib.rs
+++ b/indexer-api/src/lib.rs
@@ -19,3 +19,5 @@ pub mod application;
 pub mod config;
 pub mod domain;
 pub mod infra;
+#[cfg(feature = "cloud")]
+pub mod version_validator;
diff --git a/indexer-api/src/main.rs b/indexer-api/src/main.rs
index ce99ea76..6f611e6e 100644
--- a/indexer-api/src/main.rs
+++ b/indexer-api/src/main.rs
@@ -56,6 +56,16 @@ async fn run() -> anyhow::Result<()> {
     // Load configuration.
     let config = Config::load().context("load configuration")?;
     info!(config:?; "starting");
+
+    // FIX #597: Log version information and validate compatibility
+    indexer_api::version_validator::log_version_info();
+    // Note: Version validation would require additional infrastructure to query
+    // component versions. For now, we log the expected versions to help users
+    // identify mismatches. Future enhancement: query actual versions from components.
+    indexer_api::version_validator::validate_versions(None, None, None)
+        .unwrap_or_else(|err| {
+            warn!("Version validation warnings: {}", err);
+        });
     let Config {
         run_migrations,
         application_config,
diff --git a/indexer-api/src/version_validator.rs b/indexer-api/src/version_validator.rs
new file mode 100644
index 00000000..e2079e68
--- /dev/null
+++ b/indexer-api/src/version_validator.rs
@@ -0,0 +1,252 @@
+// This file is part of midnight-indexer.
+// Copyright (C) 2025 Midnight Foundation
+// SPDX-License-Identifier: Apache-2.0
+// Licensed under the Apache License, Version 2.0 (the "License");
+// You may not use this file except in compliance with the License.
+// You may obtain a copy of the License at
+// http://www.apache.org/licenses/LICENSE-2.0
+// Unless required by applicable law or agreed to in writing, software
+// distributed under the License is distributed on an "AS IS" BASIS,
+// WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+// See the License for the specific language governing permissions and
+// limitations under the License.
+
+//! Version validation module to ensure compatibility between Indexer components and Midnight Node.
+//!
+//! This module addresses issue #597 by providing validation and warnings when version
+//! mismatches are detected, helping users avoid configuration errors.
+
+use log::{error, info, warn};
+
+/// The expected Midnight Node version compatible with this Indexer version.
+/// This value should match the content of the NODE_VERSION file in the repository root.
+const EXPECTED_NODE_VERSION: &str = "0.18.0";
+
+/// The current Indexer version.
+const INDEXER_VERSION: &str = env!("CARGO_PKG_VERSION");
+
+/// Validates version compatibility and logs warnings if issues are detected.
+///
+/// This function should be called during application startup to help users
+/// identify version mismatches early.
+///
+/// # Arguments
+///
+/// * `node_version` - Optional Midnight Node version string. If None, a warning is logged.
+/// * `chain_indexer_version` - Optional chain-indexer version. If None, a warning is logged.
+/// * `wallet_indexer_version` - Optional wallet-indexer version. If None, a warning is logged.
+///
+/// # Returns
+///
+/// Returns `Ok(())` if all versions are compatible, or an error message if critical
+/// mismatches are detected.
+pub fn validate_versions(
+    node_version: Option<&str>,
+    chain_indexer_version: Option<&str>,
+    wallet_indexer_version: Option<&str>,
+) -> Result<(), String> {
+    info!(
+        indexer_api_version = INDEXER_VERSION,
+        expected_node_version = EXPECTED_NODE_VERSION;
+        "validating component versions"
+    );
+
+    let mut warnings = Vec::new();
+    let mut errors = Vec::new();
+
+    // Validate Midnight Node version
+    match node_version {
+        Some(version) if version != EXPECTED_NODE_VERSION => {
+            let msg = format!(
+                "Midnight Node version mismatch: expected '{}', found '{}'. \
+                This may cause API endpoint incompatibilities (see issue #597). \
+                Check the NODE_VERSION file in the repository for the correct version.",
+                EXPECTED_NODE_VERSION, version
+            );
+            warnings.push(msg);
+        }
+        None => {
+            warnings.push(
+                "Unable to determine Midnight Node version. \
+                Please ensure you are using the correct Node version as specified in NODE_VERSION."
+                    .to_string(),
+            );
+        }
+        _ => {
+            info!(
+                node_version = node_version.unwrap();
+                "Midnight Node version is compatible"
+            );
+        }
+    }
+
+    // Validate chain-indexer version
+    match chain_indexer_version {
+        Some(version) if version != INDEXER_VERSION => {
+            let msg = format!(
+                "chain-indexer version mismatch: expected '{}', found '{}'. \
+                All Indexer components (chain-indexer, wallet-indexer, indexer-api) \
+                must use the same version.",
+                INDEXER_VERSION, version
+            );
+            errors.push(msg);
+        }
+        None => {
+            warnings.push(
+                "Unable to determine chain-indexer version. \
+                Ensure all Indexer components use the same version."
+                    .to_string(),
+            );
+        }
+        _ => {
+            info!(
+                chain_indexer_version = chain_indexer_version.unwrap();
+                "chain-indexer version is compatible"
+            );
+        }
+    }
+
+    // Validate wallet-indexer version
+    match wallet_indexer_version {
+        Some(version) if version != INDEXER_VERSION => {
+            let msg = format!(
+                "wallet-indexer version mismatch: expected '{}', found '{}'. \
+                All Indexer components (chain-indexer, wallet-indexer, indexer-api) \
+                must use the same version.",
+                INDEXER_VERSION, version
+            );
+            errors.push(msg);
+        }
+        None => {
+            warnings.push(
+                "Unable to determine wallet-indexer version. \
+                Ensure all Indexer components use the same version."
+                    .to_string(),
+            );
+        }
+        _ => {
+            info!(
+                wallet_indexer_version = wallet_indexer_version.unwrap();
+                "wallet-indexer version is compatible"
+            );
+        }
+    }
+
+    // Log all warnings
+    for warning in &warnings {
+        warn!("{}", warning);
+    }
+
+    // Log all errors and return error if any
+    if !errors.is_empty() {
+        for error_msg in &errors {
+            error!("{}", error_msg);
+        }
+        return Err(errors.join("\n"));
+    }
+
+    if warnings.is_empty() {
+        info!("all component versions are compatible");
+    }
+
+    Ok(())
+}
+
+/// Logs a helpful message about version requirements.
+///
+/// This should be called when the API starts to inform users about proper version usage.
+pub fn log_version_info() {
+    info!(
+        "╔════════════════════════════════════════════════════════════════════════════╗"
+    );
+    info!(
+        "║                    Midnight Indexer API Version Info                      ║"
+    );
+    info!(
+        "╠════════════════════════════════════════════════════════════════════════════╣"
+    );
+    info!(
+        "║  Indexer API Version:        {}                                        ║",
+        INDEXER_VERSION
+    );
+    info!(
+        "║  Expected Node Version:      {}                                      ║",
+        EXPECTED_NODE_VERSION
+    );
+    info!(
+        "╠════════════════════════════════════════════════════════════════════════════╣"
+    );
+    info!(
+        "║  IMPORTANT: All Indexer components must use the SAME version:             ║"
+    );
+    info!(
+        "║    - chain-indexer:{}                                                 ║",
+        INDEXER_VERSION
+    );
+    info!(
+        "║    - wallet-indexer:{}                                                ║",
+        INDEXER_VERSION
+    );
+    info!(
+        "║    - indexer-api:{}                                                   ║",
+        INDEXER_VERSION
+    );
+    info!(
+        "║                                                                            ║"
+    );
+    info!(
+        "║  NEVER use 'latest' tag in production - always specify exact versions!    ║"
+    );
+    info!(
+        "║                                                                            ║"
+    );
+    info!(
+        "║  For more information, see:                                                ║"
+    );
+    info!(
+        "║  https://github.com/midnightntwrk/midnight-indexer/blob/main/NODE_VERSION ║"
+    );
+    info!(
+        "╚════════════════════════════════════════════════════════════════════════════╝"
+    );
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    #[test]
+    fn test_validate_versions_all_compatible() {
+        let result = validate_versions(
+            Some(EXPECTED_NODE_VERSION),
+            Some(INDEXER_VERSION),
+            Some(INDEXER_VERSION),
+        );
+        assert!(result.is_ok());
+    }
+
+    #[test]
+    fn test_validate_versions_node_mismatch() {
+        let result = validate_versions(Some("0.17.0"), Some(INDEXER_VERSION), Some(INDEXER_VERSION));
+        // Should return Ok but log warnings
+        assert!(result.is_ok());
+    }
+
+    #[test]
+    fn test_validate_versions_indexer_mismatch() {
+        let result = validate_versions(
+            Some(EXPECTED_NODE_VERSION),
+            Some("2.0.0"),
+            Some(INDEXER_VERSION),
+        );
+        // Should return Err due to indexer version mismatch
+        assert!(result.is_err());
+    }
+
+    #[test]
+    fn test_validate_versions_missing_versions() {
+        let result = validate_versions(None, None, None);
+        // Should return Ok but log warnings
+        assert!(result.is_ok());
+    }
+}