diff --git a/.changeset/chilled-comics-beam.md b/.changeset/chilled-comics-beam.md
new file mode 100644
index 000000000..178ffa00a
--- /dev/null
+++ b/.changeset/chilled-comics-beam.md
@@ -0,0 +1,5 @@
+---
+"shadcn": minor
+---
+
+add support for envVars in schema
diff --git a/apps/v4/public/schema/registry-item.json b/apps/v4/public/schema/registry-item.json
index b343f77d1..7036e44ab 100644
--- a/apps/v4/public/schema/registry-item.json
+++ b/apps/v4/public/schema/registry-item.json
@@ -191,6 +191,13 @@
         ]
       }
     },
+    "envVars": {
+      "type": "object",
+      "description": "Environment variables required by the registry item. Key-value pairs that will be added to the project's .env file.",
+      "additionalProperties": {
+        "type": "string"
+      }
+    },
     "meta": {
       "type": "object",
       "description": "Additional metadata for the registry item. This is an object with any key value pairs.",
diff --git a/packages/shadcn/src/registry/api.ts b/packages/shadcn/src/registry/api.ts
index 452f9b42b..af2291c43 100644
--- a/packages/shadcn/src/registry/api.ts
+++ b/packages/shadcn/src/registry/api.ts
@@ -476,7 +476,12 @@ export async function registryResolveItemsTree(
       }
     })
 
-    return registryResolvedItemsTreeSchema.parse({
+    let envVars = {}
+    payload.forEach((item) => {
+      envVars = deepmerge(envVars, item.envVars ?? {})
+    })
+
+    const parsed = registryResolvedItemsTreeSchema.parse({
       dependencies: deepmerge.all(
         payload.map((item) => item.dependencies ?? [])
       ),
@@ -489,6 +494,12 @@ export async function registryResolveItemsTree(
       css,
       docs,
     })
+
+    if (Object.keys(envVars).length > 0) {
+      parsed.envVars = envVars
+    }
+
+    return parsed
   } catch (error) {
     handleError(error)
     return null
diff --git a/packages/shadcn/src/registry/schema.ts b/packages/shadcn/src/registry/schema.ts
index 3b3773fd7..272663e45 100644
--- a/packages/shadcn/src/registry/schema.ts
+++ b/packages/shadcn/src/registry/schema.ts
@@ -65,6 +65,8 @@ export const registryItemCssSchema = z.record(
   )
 )
 
+export const registryItemEnvVarsSchema = z.record(z.string(), z.string())
+
 export const registryItemSchema = z.object({
   $schema: z.string().optional(),
   extends: z.string().optional(),
@@ -80,6 +82,7 @@ export const registryItemSchema = z.object({
   tailwind: registryItemTailwindSchema.optional(),
   cssVars: registryItemCssVarsSchema.optional(),
   css: registryItemCssSchema.optional(),
+  envVars: registryItemEnvVarsSchema.optional(),
   meta: z.record(z.string(), z.any()).optional(),
   docs: z.string().optional(),
   categories: z.array(z.string()).optional(),
@@ -127,5 +130,6 @@ export const registryResolvedItemsTreeSchema = registryItemSchema.pick({
   tailwind: true,
   cssVars: true,
   css: true,
+  envVars: true,
   docs: true,
 })
diff --git a/packages/shadcn/src/utils/add-components.ts b/packages/shadcn/src/utils/add-components.ts
index 50507154a..dca9280ff 100644
--- a/packages/shadcn/src/utils/add-components.ts
+++ b/packages/shadcn/src/utils/add-components.ts
@@ -27,6 +27,7 @@ import { spinner } from "@/src/utils/spinner"
 import { updateCss } from "@/src/utils/updaters/update-css"
 import { updateCssVars } from "@/src/utils/updaters/update-css-vars"
 import { updateDependencies } from "@/src/utils/updaters/update-dependencies"
+import { updateEnvVars } from "@/src/utils/updaters/update-env-vars"
 import { updateFiles } from "@/src/utils/updaters/update-files"
 import { updateTailwindConfig } from "@/src/utils/updaters/update-tailwind-config"
 import { z } from "zod"
@@ -116,6 +117,10 @@ async function addProjectComponents(
     silent: options.silent,
   })
 
+  await updateEnvVars(tree.envVars, config, {
+    silent: options.silent,
+  })
+
   await updateDependencies(tree.dependencies, tree.devDependencies, config, {
     silent: options.silent,
   })
@@ -232,7 +237,14 @@ async function addWorkspaceComponents(
       )
     }
 
-    // 4. Update dependencies.
+    // 4. Update environment variables
+    if (component.envVars) {
+      await updateEnvVars(component.envVars, targetConfig, {
+        silent: true,
+      })
+    }
+
+    // 5. Update dependencies.
     await updateDependencies(
       component.dependencies,
       component.devDependencies,
@@ -242,7 +254,7 @@ async function addWorkspaceComponents(
       }
     )
 
-    // 5. Update files.
+    // 6. Update files.
     const files = await updateFiles(component.files, targetConfig, {
       overwrite: options.overwrite,
       silent: true,
diff --git a/packages/shadcn/src/utils/env-helpers.test.ts b/packages/shadcn/src/utils/env-helpers.test.ts
index 20a677a6b..59025d269 100644
--- a/packages/shadcn/src/utils/env-helpers.test.ts
+++ b/packages/shadcn/src/utils/env-helpers.test.ts
@@ -309,19 +309,7 @@ describe("findExistingEnvFile", () => {
     vi.clearAllMocks()
   })
 
-  test("should return .env if it exists", () => {
-    vi.mocked(existsSync).mockImplementation((path) => {
-      const pathStr = typeof path === "string" ? path : path.toString()
-      return pathStr.endsWith(".env")
-    })
-
-    const result = findExistingEnvFile("/test/dir")
-    expect(result).toBe("/test/dir/.env")
-    expect(existsSync).toHaveBeenCalledWith("/test/dir/.env")
-    expect(existsSync).toHaveBeenCalledTimes(1)
-  })
-
-  test("should return .env.local if .env doesn't exist", () => {
+  test("should return .env.local if it exists", () => {
     vi.mocked(existsSync).mockImplementation((path) => {
       const pathStr = typeof path === "string" ? path : path.toString()
       return pathStr.endsWith(".env.local")
@@ -329,8 +317,20 @@ describe("findExistingEnvFile", () => {
 
     const result = findExistingEnvFile("/test/dir")
     expect(result).toBe("/test/dir/.env.local")
-    expect(existsSync).toHaveBeenCalledWith("/test/dir/.env")
     expect(existsSync).toHaveBeenCalledWith("/test/dir/.env.local")
+    expect(existsSync).toHaveBeenCalledTimes(1)
+  })
+
+  test("should return .env if .env.local doesn't exist", () => {
+    vi.mocked(existsSync).mockImplementation((path) => {
+      const pathStr = typeof path === "string" ? path : path.toString()
+      return pathStr.endsWith(".env")
+    })
+
+    const result = findExistingEnvFile("/test/dir")
+    expect(result).toBe("/test/dir/.env")
+    expect(existsSync).toHaveBeenCalledWith("/test/dir/.env.local")
+    expect(existsSync).toHaveBeenCalledWith("/test/dir/.env")
     expect(existsSync).toHaveBeenCalledTimes(2)
   })
 
@@ -342,8 +342,8 @@ describe("findExistingEnvFile", () => {
 
     const result = findExistingEnvFile("/test/dir")
     expect(result).toBe("/test/dir/.env.development.local")
-    expect(existsSync).toHaveBeenCalledWith("/test/dir/.env")
     expect(existsSync).toHaveBeenCalledWith("/test/dir/.env.local")
+    expect(existsSync).toHaveBeenCalledWith("/test/dir/.env")
     expect(existsSync).toHaveBeenCalledWith("/test/dir/.env.development.local")
     expect(existsSync).toHaveBeenCalledTimes(3)
   })
@@ -361,8 +361,8 @@ describe("findExistingEnvFile", () => {
 
     findExistingEnvFile("/test/dir")
 
-    expect(existsSync).toHaveBeenCalledWith("/test/dir/.env")
     expect(existsSync).toHaveBeenCalledWith("/test/dir/.env.local")
+    expect(existsSync).toHaveBeenCalledWith("/test/dir/.env")
     expect(existsSync).toHaveBeenCalledWith("/test/dir/.env.development.local")
     expect(existsSync).toHaveBeenCalledWith("/test/dir/.env.development")
   })
diff --git a/packages/shadcn/src/utils/env-helpers.ts b/packages/shadcn/src/utils/env-helpers.ts
index 82b3d1e91..25836145d 100644
--- a/packages/shadcn/src/utils/env-helpers.ts
+++ b/packages/shadcn/src/utils/env-helpers.ts
@@ -12,8 +12,8 @@ export function isEnvFile(filePath: string) {
  */
 export function findExistingEnvFile(targetDir: string) {
   const variants = [
-    ".env",
     ".env.local",
+    ".env",
     ".env.development.local",
     ".env.development",
   ]
diff --git a/packages/shadcn/src/utils/updaters/update-env-vars.test.ts b/packages/shadcn/src/utils/updaters/update-env-vars.test.ts
new file mode 100644
index 000000000..ff761a16c
--- /dev/null
+++ b/packages/shadcn/src/utils/updaters/update-env-vars.test.ts
@@ -0,0 +1,183 @@
+import { existsSync, promises as fs } from "fs"
+import type { Config } from "@/src/utils/get-config"
+import { afterEach, beforeEach, describe, expect, test, vi } from "vitest"
+
+import { updateEnvVars } from "./update-env-vars"
+
+vi.mock("fs", () => ({
+  existsSync: vi.fn(),
+  promises: {
+    readFile: vi.fn(),
+    writeFile: vi.fn(),
+  },
+}))
+
+vi.mock("@/src/utils/logger", () => ({
+  logger: {
+    info: vi.fn(),
+    log: vi.fn(),
+    success: vi.fn(),
+    break: vi.fn(),
+  },
+}))
+
+vi.mock("@/src/utils/spinner", () => ({
+  spinner: vi.fn(() => ({
+    start: vi.fn().mockReturnThis(),
+    stop: vi.fn(),
+    succeed: vi.fn(),
+  })),
+}))
+
+const mockConfig: Config = {
+  style: "default",
+  rsc: false,
+  tailwind: {
+    config: "tailwind.config.js",
+    css: "app/globals.css",
+    baseColor: "slate",
+    prefix: "",
+    cssVariables: false,
+  },
+  tsx: true,
+  aliases: {
+    components: "@/components",
+    ui: "@/components/ui",
+    lib: "@/lib",
+    hooks: "@/hooks",
+    utils: "@/utils",
+  },
+  resolvedPaths: {
+    cwd: "/test/project",
+    tailwindConfig: "/test/project/tailwind.config.js",
+    tailwindCss: "/test/project/app/globals.css",
+    components: "/test/project/components",
+    ui: "/test/project/components/ui",
+    lib: "/test/project/lib",
+    hooks: "/test/project/hooks",
+    utils: "/test/project/utils",
+  },
+}
+
+describe("updateEnvVars", () => {
+  beforeEach(() => {
+    vi.clearAllMocks()
+  })
+
+  afterEach(() => {
+    vi.resetAllMocks()
+  })
+
+  test("should create new .env.local file when none exists", async () => {
+    vi.mocked(existsSync).mockReturnValue(false)
+
+    const envVars = {
+      API_KEY: "test-key",
+      API_URL: "https://api.example.com",
+    }
+
+    const result = await updateEnvVars(envVars, mockConfig, { silent: true })
+
+    expect(vi.mocked(fs.writeFile)).toHaveBeenCalledWith(
+      "/test/project/.env.local",
+      "API_KEY=test-key\nAPI_URL=https://api.example.com\n",
+      "utf-8"
+    )
+    expect(result).toEqual({
+      envVarsAdded: ["API_KEY", "API_URL"],
+      envFileUpdated: null,
+      envFileCreated: ".env.local",
+    })
+  })
+
+  test("should update existing .env.local file with new variables", async () => {
+    vi.mocked(existsSync).mockReturnValue(true)
+    vi.mocked(fs.readFile).mockResolvedValue("EXISTING_KEY=existing-value\n")
+
+    const envVars = {
+      NEW_KEY: "new-value",
+      ANOTHER_KEY: "another-value",
+    }
+
+    const result = await updateEnvVars(envVars, mockConfig, { silent: true })
+
+    expect(vi.mocked(fs.writeFile)).toHaveBeenCalledWith(
+      "/test/project/.env.local",
+      "EXISTING_KEY=existing-value\n\nNEW_KEY=new-value\nANOTHER_KEY=another-value\n",
+      "utf-8"
+    )
+    expect(result).toEqual({
+      envVarsAdded: ["NEW_KEY", "ANOTHER_KEY"],
+      envFileUpdated: ".env.local",
+      envFileCreated: null,
+    })
+  })
+
+  test("should skip when all variables already exist", async () => {
+    vi.mocked(existsSync).mockReturnValue(true)
+    vi.mocked(fs.readFile).mockResolvedValue(
+      "API_KEY=existing-key\nAPI_URL=existing-url\n"
+    )
+
+    const envVars = {
+      API_KEY: "new-key",
+      API_URL: "new-url",
+    }
+
+    const result = await updateEnvVars(envVars, mockConfig, { silent: true })
+
+    expect(vi.mocked(fs.writeFile)).not.toHaveBeenCalled()
+    expect(result).toEqual({
+      envVarsAdded: [],
+      envFileUpdated: null,
+      envFileCreated: null,
+    })
+  })
+
+  test("should find and use .env.local when .env doesn't exist", async () => {
+    vi.mocked(existsSync).mockImplementation((path) => {
+      const pathStr = typeof path === "string" ? path : path.toString()
+      return pathStr.endsWith(".env.local")
+    })
+    vi.mocked(fs.readFile).mockResolvedValue("EXISTING_VAR=value\n")
+
+    const envVars = {
+      NEW_VAR: "new-value",
+    }
+
+    const result = await updateEnvVars(envVars, mockConfig, { silent: true })
+
+    expect(vi.mocked(fs.writeFile)).toHaveBeenCalledWith(
+      "/test/project/.env.local",
+      "EXISTING_VAR=value\n\nNEW_VAR=new-value\n",
+      "utf-8"
+    )
+    expect(result).toEqual({
+      envVarsAdded: ["NEW_VAR"],
+      envFileUpdated: ".env.local",
+      envFileCreated: null,
+    })
+  })
+
+  test("should return early when no env vars provided", async () => {
+    const result = await updateEnvVars(undefined, mockConfig, { silent: true })
+
+    expect(vi.mocked(fs.writeFile)).not.toHaveBeenCalled()
+    expect(result).toEqual({
+      envVarsAdded: [],
+      envFileUpdated: null,
+      envFileCreated: null,
+    })
+  })
+
+  test("should return early when empty env vars object provided", async () => {
+    const result = await updateEnvVars({}, mockConfig, { silent: true })
+
+    expect(vi.mocked(fs.writeFile)).not.toHaveBeenCalled()
+    expect(result).toEqual({
+      envVarsAdded: [],
+      envFileUpdated: null,
+      envFileCreated: null,
+    })
+  })
+})
diff --git a/packages/shadcn/src/utils/updaters/update-env-vars.ts b/packages/shadcn/src/utils/updaters/update-env-vars.ts
new file mode 100644
index 000000000..5a0eaf845
--- /dev/null
+++ b/packages/shadcn/src/utils/updaters/update-env-vars.ts
@@ -0,0 +1,108 @@
+import { existsSync, promises as fs } from "fs"
+import path from "path"
+import { registryItemEnvVarsSchema } from "@/src/registry/schema"
+import {
+  findExistingEnvFile,
+  getNewEnvKeys,
+  mergeEnvContent,
+} from "@/src/utils/env-helpers"
+import { Config } from "@/src/utils/get-config"
+import { highlighter } from "@/src/utils/highlighter"
+import { logger } from "@/src/utils/logger"
+import { spinner } from "@/src/utils/spinner"
+import { z } from "zod"
+
+export async function updateEnvVars(
+  envVars: z.infer<typeof registryItemEnvVarsSchema> | undefined,
+  config: Config,
+  options: {
+    silent?: boolean
+  }
+) {
+  if (!envVars || Object.keys(envVars).length === 0) {
+    return {
+      envVarsAdded: [],
+      envFileUpdated: null,
+      envFileCreated: null,
+    }
+  }
+
+  options = {
+    silent: false,
+    ...options,
+  }
+
+  const envSpinner = spinner(`Adding environment variables.`, {
+    silent: options.silent,
+  })?.start()
+
+  const projectRoot = config.resolvedPaths.cwd
+
+  // Find existing env file or use .env.local as default.
+  let envFilePath = path.join(projectRoot, ".env.local")
+  const existingEnvFile = findExistingEnvFile(projectRoot)
+
+  if (existingEnvFile) {
+    envFilePath = existingEnvFile
+  }
+
+  const envFileExists = existsSync(envFilePath)
+  const envFileName = path.basename(envFilePath)
+
+  // Convert envVars object to env file format
+  const newEnvContent = Object.entries(envVars)
+    .map(([key, value]) => `${key}=${value}`)
+    .join("\n")
+
+  let envVarsAdded: string[] = []
+  let envFileUpdated: string | null = null
+  let envFileCreated: string | null = null
+
+  if (envFileExists) {
+    const existingContent = await fs.readFile(envFilePath, "utf-8")
+    const mergedContent = mergeEnvContent(existingContent, newEnvContent)
+    envVarsAdded = getNewEnvKeys(existingContent, newEnvContent)
+
+    if (envVarsAdded.length > 0) {
+      await fs.writeFile(envFilePath, mergedContent, "utf-8")
+      envFileUpdated = path.relative(projectRoot, envFilePath)
+
+      envSpinner?.succeed(
+        `Added the following variables to ${highlighter.info(envFileName)}:`
+      )
+
+      if (!options.silent) {
+        for (const key of envVarsAdded) {
+          logger.log(`  ${highlighter.success("+")} ${key}`)
+        }
+      }
+    } else {
+      envSpinner?.stop()
+    }
+  } else {
+    // Create new env file
+    await fs.writeFile(envFilePath, newEnvContent + "\n", "utf-8")
+    envFileCreated = path.relative(projectRoot, envFilePath)
+    envVarsAdded = Object.keys(envVars)
+
+    envSpinner?.succeed(
+      `Added the following variables to ${highlighter.info(envFileName)}:`
+    )
+
+    if (!options.silent) {
+      for (const key of envVarsAdded) {
+        logger.log(`  ${highlighter.success("+")} ${key}`)
+      }
+    }
+  }
+
+  if (!options.silent && envVarsAdded.length > 0) {
+    logger.break()
+  }
+
+  return {
+    envVarsAdded,
+    envFileUpdated,
+    envFileCreated,
+  }
+}