diff --git a/README.md b/README.md
index 5a3d8f9..f9c356e 100644
--- a/README.md
+++ b/README.md
@@ -33,20 +33,25 @@ python app.py
 
 ## Environment Variables
 
-This project requires a `.env` file for configuration.
 
-### **.env File Placement**
+1. Copy `.env.example` to `.env`
+2. Edit `.env` and fill in the required values.
+
+
+### **File Placement of .env in Development**
 - Place the `.env` file inside `src` directory.
 
 ### **Example `.env` File**
 ```ini
-QDRANT_HOST = "localhost"
-QDRANT_PORT = 6333
-QDRANT_API_KEY=''
+QDRANT_HOST=localhost
+QDRANT_PORT=6333
+QDRANT_API_KEY=
+QDRANT_HTTPS='true'
+QDRANT_SSL_VERIFY= 'false'
 QDRANT_CLUSTER=''
-QDRANT_COLLECTION_NAME='titan'
-TOKENIZER_FOLDER=''
-MODEL_FOLDER=''
+QDRANT_COLLECTION_NAME='mocktestdata'
+MODEL_FOLDER=
+TOKENIZER_FOLDER=
 ```
 ℹ️ **Note for production/docker container:**  
 `TOKENIZER_FOLDER` and `MODEL_FOLDER` are **only required for local development**.  
diff --git a/src/.env.example b/src/.env.example
new file mode 100644
index 0000000..1902de3
--- /dev/null
+++ b/src/.env.example
@@ -0,0 +1,12 @@
+# Qdrant configuration
+QDRANT_HOST=localhost
+QDRANT_PORT=6333
+QDRANT_API_KEY=
+QDRANT_HTTPS='true'
+QDRANT_SSL_VERIFY= 'false'
+QDRANT_CLUSTER=''
+QDRANT_COLLECTION_NAME='mocktestdata'
+
+# Local model/tokenizer folders (only needed in development)
+MODEL_FOLDER=
+TOKENIZER_FOLDER=