diff --git a/ENVEXAMPLE b/ENVEXAMPLE
new file mode 100644
index 00000000..d17b1fc5
--- /dev/null
+++ b/ENVEXAMPLE
@@ -0,0 +1,27 @@
+# App Setup
+NODE_ENV=production                     # Set to 'development' or 'production' as required
+JWT_SECRET=your_jwt_secret_key          # Replace with a secure JWT secret key
+DB_NAME=maxun                           # Your PostgreSQL database name
+DB_USER=postgres                        # PostgreSQL username
+DB_PASSWORD=postgres                    # PostgreSQL password
+DB_HOST=postgres                        # Host for PostgreSQL in Docker
+DB_PORT=5432                            # Port for PostgreSQL (default: 5432)
+ENCRYPTION_KEY=your_encryption_key      # Key for encrypting sensitive data (passwords and proxies)
+MINIO_ENDPOINT=minio                    # MinIO endpoint in Docker
+MINIO_PORT=9000                         # Port for MinIO (default: 9000)
+MINIO_ACCESS_KEY=minio_access_key       # MinIO access key
+MINIO_SECRET_KEY=minio_secret_key       # MinIO secret key
+REDIS_HOST=redis                        # Redis host in Docker
+REDIS_PORT=6379                         # Redis port (default: 6379)
+
+# Backend URLs
+BACKEND_URL=http://localhost:8080       # Internal URL for backend service
+VITE_BACKEND_URL=http://localhost:8080  # URL used by frontend to connect to backend
+
+# Optional Google OAuth settings for Google Sheet Integration
+GOOGLE_CLIENT_ID=your_google_client_id
+GOOGLE_CLIENT_SECRET=your_google_client_secret
+GOOGLE_REDIRECT_URI=your_google_redirect_uri
+
+# Telemetry Settings - Please keep it enabled. Keeping it enabled helps us understand how the product is used and assess the impact of any new changes. 
+MAXUN_TELEMETRY=true
diff --git a/README.md b/README.md
index 4bce9449..da0f0527 100644
--- a/README.md
+++ b/README.md
@@ -54,7 +54,10 @@ npm run start
 You can access the frontend at http://localhost:5173/ and backend at http://localhost:8080/
 
 
-# Envirnoment Variables
+# Environment Variables
+1. Create a file named `.env` in the root folder of the project
+2. Example env file can be viewed [here](https://github.com/getmaxun/maxun/blob/master/ENVEXAMPLE).
+
 | Variable              | Mandatory | Description                                                                                  | If Not Set                                                   |
 |-----------------------|-----------|----------------------------------------------------------------------------------------------|--------------------------------------------------------------|
 | `BACKEND_URL`            | Yes       | URL to run backend on.                                   | Backend won't start. If not sure, set to http://localhost:8080/ |