diff --git a/Cargo.lock b/Cargo.lock
index f3948c5..692265f 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -840,6 +840,41 @@ dependencies = [
  "typenum",
 ]
 
+[[package]]
+name = "darling"
+version = "0.20.9"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "83b2eb4d90d12bdda5ed17de686c2acb4c57914f8f921b8da7e112b5a36f3fe1"
+dependencies = [
+ "darling_core",
+ "darling_macro",
+]
+
+[[package]]
+name = "darling_core"
+version = "0.20.9"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "622687fe0bac72a04e5599029151f5796111b90f1baaa9b544d807a5e31cd120"
+dependencies = [
+ "fnv",
+ "ident_case",
+ "proc-macro2",
+ "quote",
+ "strsim 0.11.1",
+ "syn 2.0.68",
+]
+
+[[package]]
+name = "darling_macro"
+version = "0.20.9"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "733cabb43482b1a1b53eee8583c2b9e8684d592215ea83efd305dd31bc2f0178"
+dependencies = [
+ "darling_core",
+ "quote",
+ "syn 2.0.68",
+]
+
 [[package]]
 name = "dashmap"
 version = "5.5.3"
@@ -883,6 +918,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "b42b6fa04a440b495c8b04d0e71b707c585f83cb9cb28cf8cd0d976c315e31b4"
 dependencies = [
  "powerfmt",
+ "serde",
 ]
 
 [[package]]
@@ -1086,6 +1122,15 @@ dependencies = [
  "log",
 ]
 
+[[package]]
+name = "envsubst"
+version = "0.2.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "cf2f29f6ee674d1229e5715dfc7e24f14395a20d66949e36032de68b31542643"
+dependencies = [
+ "thiserror",
+]
+
 [[package]]
 name = "equivalent"
 version = "1.0.1"
@@ -1573,6 +1618,12 @@ version = "0.3.9"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "d231dfb89cfffdbc30e7fc41579ed6066ad03abda9e567ccafae602b97ec5024"
 
+[[package]]
+name = "hex"
+version = "0.4.3"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "7f24254aa9a54b5c858eaee2f5bccdb46aaf0e486a595ed5fd8f86ba55232a70"
+
 [[package]]
 name = "hmac"
 version = "0.12.1"
@@ -1756,6 +1807,12 @@ version = "2.2.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "25a2bc672d1148e28034f176e01fffebb08b35768468cc954630da77a1449005"
 
+[[package]]
+name = "ident_case"
+version = "1.0.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "b9e0384b61958566e926dc50660321d12159025e767c18e043daf26b70104c39"
+
 [[package]]
 name = "idna"
 version = "0.5.0"
@@ -1789,6 +1846,7 @@ dependencies = [
  "autocfg",
  "hashbrown 0.12.3",
  "rustc-rayon 0.5.0",
+ "serde",
 ]
 
 [[package]]
@@ -2559,6 +2617,7 @@ dependencies = [
  "console",
  "dashmap 6.0.1",
  "dialoguer",
+ "envsubst",
  "figment",
  "futures",
  "indicatif",
@@ -2668,9 +2727,11 @@ dependencies = [
  "kclvm-sema",
  "logcraft-runtime",
  "rayon",
+ "regex",
  "reqwest",
  "serde",
  "serde_json",
+ "serde_with",
  "serde_yaml_ng",
  "similar",
  "tempfile",
@@ -4348,6 +4409,36 @@ dependencies = [
  "serde",
 ]
 
+[[package]]
+name = "serde_with"
+version = "3.8.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "0ad483d2ab0149d5a5ebcd9972a3852711e0153d863bf5a5d0391d28883c4a20"
+dependencies = [
+ "base64 0.22.1",
+ "chrono",
+ "hex",
+ "indexmap 1.9.3",
+ "indexmap 2.2.6",
+ "serde",
+ "serde_derive",
+ "serde_json",
+ "serde_with_macros",
+ "time 0.3.36",
+]
+
+[[package]]
+name = "serde_with_macros"
+version = "3.8.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "65569b702f41443e8bc8bbb1c5779bd0450bbe723b56198980e80ec45780bce2"
+dependencies = [
+ "darling",
+ "proc-macro2",
+ "quote",
+ "syn 2.0.68",
+]
+
 [[package]]
 name = "serde_yaml"
 version = "0.9.34+deprecated"
diff --git a/Cargo.toml b/Cargo.toml
index fb9f7fc..305a648 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -56,6 +56,7 @@ indicatif = "0.17"
 serde_json = "1.0"
 clap = { version = "4.5", features = ["derive", "env", "cargo"] }
 figment = { version = "0.10", features = ["yaml", "env"] }
+envsubst = "0.2"
 
 # Local dependencies
 logcraft-common = { path = "crates/common", version = "0.1.1" }
diff --git a/crates/common/src/utils.rs b/crates/common/src/utils.rs
index 15b394d..2c3ebba 100644
--- a/crates/common/src/utils.rs
+++ b/crates/common/src/utils.rs
@@ -44,3 +44,12 @@ pub fn ensure_kebab_case(name: &str) -> Result<&str> {
 
     Ok(name)
 }
+
+pub fn env_forbidden_chars(s: &str) -> bool {
+    for c in s.chars() {
+        if c == '$' || c == '{' || c == '}' {
+            return true;
+        }
+    }
+    false
+}
\ No newline at end of file
diff --git a/src/bin/lgc.rs b/src/bin/lgc.rs
index 93f2c03..b930831 100644
--- a/src/bin/lgc.rs
+++ b/src/bin/lgc.rs
@@ -7,7 +7,7 @@ use anyhow::Result;
 use clap::builder::styling;
 use clap::{crate_version, Subcommand};
 use clap::{CommandFactory, FromArgMatches, Parser};
-use figment::providers::{Format, Yaml};
+use figment::providers::{Env, Format, Yaml};
 use figment::Figment;
 use lgc::commands::{
     deploy::DeployCommand, destroy::DestroyCommand, diff::DiffCommand,
@@ -15,6 +15,9 @@ use lgc::commands::{
     services::ServicesCommands, validate::ValidateCommand,
 };
 use logcraft_common::configuration::{ProjectConfiguration, LGC_CONFIG_PATH};
+use logcraft_common::utils::env_forbidden_chars;
+use std::collections::HashMap;
+use std::{env, fs};
 use std::path::PathBuf;
 use tracing::Level;
 use tracing_subscriber::EnvFilter;
@@ -89,10 +92,29 @@ impl LogCraftCli {
             LogCraftCommands::Init(cmd) => return cmd.run(),
             _ => {
                 let configuration_path = PathBuf::from(LGC_CONFIG_PATH);
+
                 if configuration_path.is_file() {
+                    let mut configuration_file = fs::read_to_string(configuration_path)?;
+
+                    // Environment variables substitution
+                    if envsubst::is_templated(&configuration_file) {
+                        configuration_file = envsubst::substitute(
+                            configuration_file,
+                            &env::vars()
+                                .filter_map(|(key, value)| {
+                                    if !env_forbidden_chars(&key) && !env_forbidden_chars(&value) {
+                                        Some((key, value))
+                                    } else {
+                                        None
+                                    }
+                                })
+                                .collect::<HashMap<String, String>>()
+                        )?;
+                    }
+
                     cli.config = match Figment::new()
-                        .merge(Yaml::file(LGC_CONFIG_PATH))
-                        // .merge(Env::prefixed("LGC_"))
+                        .merge(Yaml::string(&configuration_file))
+                        .merge(Env::prefixed("LGC_").split("_"))
                         .extract()
                     {
                         Ok(config) => config,