diff --git a/CHANGELOG.md b/CHANGELOG.md
index 0d109c69..ce1fc09d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -32,6 +32,7 @@ In previous releases, the name "Hypermode" was used for all three._
 - Remove `go generate` and fix docker build [#455](https://github.com/hypermodeinc/modus/pull/455)
 - Remove AWS Secrets Manager client [#456](https://github.com/hypermodeinc/modus/pull/456)
 - Make app path required [#457](https://github.com/hypermodeinc/modus/pull/457)
+- Improve `.env` file handling [#458](https://github.com/hypermodeinc/modus/pull/458)
 
 ## 2024-10-02 - Version 0.12.7
 
diff --git a/runtime/main.go b/runtime/main.go
index b34d090a..e2ac785f 100644
--- a/runtime/main.go
+++ b/runtime/main.go
@@ -21,8 +21,8 @@ import (
 	"github.com/hypermodeinc/modus/runtime/middleware"
 	"github.com/hypermodeinc/modus/runtime/services"
 	"github.com/hypermodeinc/modus/runtime/utils"
-
 	"github.com/joho/godotenv"
+	"github.com/rs/zerolog"
 )
 
 func main() {
@@ -37,18 +37,8 @@ func main() {
 		Str("environment", config.GetEnvironmentName()).
 		Msg("Starting Modus Runtime.")
 
-	// Load environment variables from plugins path
-	// note: .env file is optional, so don't log if it's not found
-	err := godotenv.Load(filepath.Join(config.AppPath, ".env"))
-	if err != nil && !os.IsNotExist(err) {
-		log.Warn().Err(err).Msg("Error reading .env file.  Ignoring.")
-	}
-	if config.IsDevEnvironment() {
-		err = godotenv.Load(filepath.Join(config.AppPath, ".env.local"))
-		if err != nil && !os.IsNotExist(err) {
-			log.Warn().Err(err).Msg("Error reading .env.local file.  Ignoring.")
-		}
-	}
+	// Load environment variables from .env file(s)
+	loadEnvFiles(log)
 
 	// Initialize Sentry
 	rootSourcePath := getRootSourcePath()
@@ -70,6 +60,26 @@ func main() {
 	httpserver.Start(ctx, local)
 }
 
+func loadEnvFiles(log *zerolog.Logger) {
+	envName := config.GetEnvironmentName()
+
+	files := []string{
+		".env." + envName + ".local",
+		".env." + envName,
+		".env.local",
+		".env",
+	}
+
+	for _, file := range files {
+		path := filepath.Join(config.AppPath, file)
+		if _, err := os.Stat(path); err == nil {
+			if err := godotenv.Load(path); err != nil {
+				log.Warn().Err(err).Msgf("Failed to load %s file.", file)
+			}
+		}
+	}
+}
+
 func getRootSourcePath() string {
 	_, filename, _, ok := runtime.Caller(0)
 	if !ok {