diff --git a/packages/hoppscotch-app/assets/scss/styles.scss b/packages/hoppscotch-app/assets/scss/styles.scss
index 4da6bc012..2f585bb51 100644
--- a/packages/hoppscotch-app/assets/scss/styles.scss
+++ b/packages/hoppscotch-app/assets/scss/styles.scss
@@ -132,6 +132,7 @@ a {
 
 .cm-tooltip {
   .tippy-box {
+    @apply shadow-none;
     @apply fixed;
     @apply inline-flex;
     @apply -mt-6;
@@ -166,10 +167,9 @@ a {
     }
 
     .env-icon {
+      @apply transition;
       @apply inline-flex;
       @apply items-center;
-      @apply mr-1;
-      @apply text-accentDark;
     }
   }
 
diff --git a/packages/hoppscotch-app/src/components/environments/index.vue b/packages/hoppscotch-app/src/components/environments/index.vue
index d5ccf86b2..df9b86520 100644
--- a/packages/hoppscotch-app/src/components/environments/index.vue
+++ b/packages/hoppscotch-app/src/components/environments/index.vue
@@ -155,9 +155,9 @@
         @update-selected-team="updateSelectedTeam"
       />
     </div>
-    <EnvironmentsMy v-if="environmentType.type === 'my-environments'" />
+    <EnvironmentsMy v-show="environmentType.type === 'my-environments'" />
     <EnvironmentsTeams
-      v-else
+      v-show="environmentType.type === 'team-environments'"
       :team="environmentType.selectedTeam"
       :team-environments="teamEnvironmentList"
       :loading="loading"
diff --git a/packages/hoppscotch-app/src/components/environments/my/Details.vue b/packages/hoppscotch-app/src/components/environments/my/Details.vue
index 581109d44..736bd7e42 100644
--- a/packages/hoppscotch-app/src/components/environments/my/Details.vue
+++ b/packages/hoppscotch-app/src/components/environments/my/Details.vue
@@ -62,6 +62,7 @@
             />
             <SmartEnvInput
               v-model="env.value"
+              :select-text-on-mount="env.key === editingVariableName"
               :placeholder="`${t('count.value', { count: index + 1 })}`"
               :envs="liveEnvs"
               :name="'value' + index"
@@ -163,6 +164,7 @@ const props = withDefaults(
     show: boolean
     action: "edit" | "new"
     editingEnvironmentIndex: number | "Global" | null
+    editingVariableName: string | null
     envVars?: () => Environment["variables"]
   }>(),
   {
diff --git a/packages/hoppscotch-app/src/components/environments/my/index.vue b/packages/hoppscotch-app/src/components/environments/my/index.vue
index 1979197c7..17557af95 100644
--- a/packages/hoppscotch-app/src/components/environments/my/index.vue
+++ b/packages/hoppscotch-app/src/components/environments/my/index.vue
@@ -64,6 +64,7 @@
       :show="showModalDetails"
       :action="action"
       :editing-environment-index="editingEnvironmentIndex"
+      :editing-variable-name="editingVariableName"
       @hide-modal="displayModalEdit(false)"
     />
     <EnvironmentsImportExport
@@ -83,6 +84,8 @@ import { useI18n } from "~/composables/i18n"
 import IconArchive from "~icons/lucide/archive"
 import IconPlus from "~icons/lucide/plus"
 import IconHelpCircle from "~icons/lucide/help-circle"
+import { Environment } from "@hoppscotch/data"
+import { defineActionHandler } from "~/helpers/actions"
 
 const t = useI18n()
 const colorMode = useColorMode()
@@ -100,6 +103,7 @@ const showModalImportExport = ref(false)
 const showModalDetails = ref(false)
 const action = ref<"new" | "edit">("edit")
 const editingEnvironmentIndex = ref<number | "Global" | null>(null)
+const editingVariableName = ref("")
 
 const displayModalAdd = (shouldDisplay: boolean) => {
   action.value = "new"
@@ -122,4 +126,17 @@ const editEnvironment = (environmentIndex: number | "Global") => {
 const resetSelectedData = () => {
   editingEnvironmentIndex.value = null
 }
+
+defineActionHandler(
+  "modals.my.environment.edit",
+  ({ envName, variableName }) => {
+    editingVariableName.value = variableName
+    const envIndex: number = environments.value.findIndex(
+      (environment: Environment) => {
+        return environment.name === envName
+      }
+    )
+    editEnvironment(envIndex >= 0 ? envIndex : "Global")
+  }
+)
 </script>
diff --git a/packages/hoppscotch-app/src/components/environments/teams/Details.vue b/packages/hoppscotch-app/src/components/environments/teams/Details.vue
index 1a3abe80b..904f0ad02 100644
--- a/packages/hoppscotch-app/src/components/environments/teams/Details.vue
+++ b/packages/hoppscotch-app/src/components/environments/teams/Details.vue
@@ -65,6 +65,7 @@
             />
             <SmartEnvInput
               v-model="env.value"
+              :select-text-on-mount="env.key === editingVariableName"
               :placeholder="`${t('count.value', { count: index + 1 })}`"
               :envs="liveEnvs"
               :name="'value' + index"
@@ -173,6 +174,7 @@ const props = withDefaults(
     action: "edit" | "new"
     editingEnvironment: TeamEnvironment | null
     editingTeamId: string | undefined
+    editingVariableName: string | null
     isViewer: boolean
   }>(),
   {
diff --git a/packages/hoppscotch-app/src/components/environments/teams/index.vue b/packages/hoppscotch-app/src/components/environments/teams/index.vue
index e4910d614..0ef9bdac1 100644
--- a/packages/hoppscotch-app/src/components/environments/teams/index.vue
+++ b/packages/hoppscotch-app/src/components/environments/teams/index.vue
@@ -102,6 +102,7 @@
       :action="action"
       :editing-environment="editingEnvironment"
       :editing-team-id="team?.id"
+      :editing-variable-name="editingVariableName"
       :is-viewer="team?.myRole === 'VIEWER'"
       @hide-modal="displayModalEdit(false)"
     />
@@ -125,6 +126,7 @@ import IconPlus from "~icons/lucide/plus"
 import IconArchive from "~icons/lucide/archive"
 import IconHelpCircle from "~icons/lucide/help-circle"
 import { Team } from "~/helpers/backend/graphql"
+import { defineActionHandler } from "~/helpers/actions"
 
 const t = useI18n()
 
@@ -132,7 +134,7 @@ const colorMode = useColorMode()
 
 type SelectedTeam = Team | undefined
 
-defineProps<{
+const props = defineProps<{
   team: SelectedTeam
   teamEnvironments: TeamEnvironment[]
   adapterError: GQLError<string> | null
@@ -143,6 +145,7 @@ const showModalImportExport = ref(false)
 const showModalDetails = ref(false)
 const action = ref<"new" | "edit">("edit")
 const editingEnvironment = ref<TeamEnvironment | null>(null)
+const editingVariableName = ref("")
 
 const displayModalAdd = (shouldDisplay: boolean) => {
   action.value = "new"
@@ -178,4 +181,15 @@ const getErrorMessage = (err: GQLError<string>) => {
     }
   }
 }
+
+defineActionHandler(
+  "modals.team.environment.edit",
+  ({ envName, variableName }) => {
+    editingVariableName.value = variableName
+    const teamEnvToEdit = props.teamEnvironments.find(
+      (environment) => environment.environment.name === envName
+    )
+    if (teamEnvToEdit) editEnvironment(teamEnvToEdit)
+  }
+)
 </script>
diff --git a/packages/hoppscotch-app/src/components/smart/EnvInput.vue b/packages/hoppscotch-app/src/components/smart/EnvInput.vue
index 2da72850b..dbcbf36d8 100644
--- a/packages/hoppscotch-app/src/components/smart/EnvInput.vue
+++ b/packages/hoppscotch-app/src/components/smart/EnvInput.vue
@@ -27,7 +27,7 @@ import {
   keymap,
   tooltips,
 } from "@codemirror/view"
-import { EditorState, Extension } from "@codemirror/state"
+import { EditorSelection, EditorState, Extension } from "@codemirror/state"
 import { clone } from "lodash-es"
 import { history, historyKeymap } from "@codemirror/commands"
 import { inputTheme } from "~/helpers/editor/themes/baseTheme"
@@ -42,6 +42,7 @@ const props = withDefaults(
     styles?: string
     envs?: { key: string; value: string; source: string }[] | null
     focus?: boolean
+    selectTextOnMount?: boolean
     readonly?: boolean
   }>(),
   {
@@ -203,15 +204,28 @@ const initView = (el: any) => {
   })
 }
 
+const triggerTextSelection = () => {
+  nextTick(() => {
+    view.value?.focus()
+    view.value?.dispatch({
+      selection: EditorSelection.create([
+        EditorSelection.range(0, props.modelValue.length),
+      ]),
+    })
+  })
+}
+
 onMounted(() => {
   if (editor.value) {
     if (!view.value) initView(editor.value)
+    if (props.selectTextOnMount) triggerTextSelection()
   }
 })
 
 watch(editor, () => {
   if (editor.value) {
     if (!view.value) initView(editor.value)
+    if (props.selectTextOnMount) triggerTextSelection()
   } else {
     view.value?.destroy()
     view.value = undefined
diff --git a/packages/hoppscotch-app/src/helpers/actions.ts b/packages/hoppscotch-app/src/helpers/actions.ts
index 89f43640e..deb0dbe3b 100644
--- a/packages/hoppscotch-app/src/helpers/actions.ts
+++ b/packages/hoppscotch-app/src/helpers/actions.ts
@@ -22,6 +22,8 @@ export type HoppAction =
   | "modals.search.toggle" // Shows the search modal
   | "modals.support.toggle" // Shows the support modal
   | "modals.share.toggle" // Shows the share modal
+  | "modals.my.environment.edit" // Edit current personal environment
+  | "modals.team.environment.edit" // Edit current team environment
   | "navigation.jump.rest" // Jump to REST page
   | "navigation.jump.graphql" // Jump to GraphQL page
   | "navigation.jump.realtime" // Jump to realtime page
@@ -36,31 +38,101 @@ export type HoppAction =
   | "response.file.download" // Download response as file
   | "response.copy" // Copy response to clipboard
 
+/**
+ * Defines the arguments, if present for a given type that is required to be passed on
+ * invocation and will be passed to action handlers.
+ *
+ * This type is supposed to be an object with the key being one of the actions mentioned above.
+ * The value to the key can be anything.
+ * If an action has no argument, you do not need to add it to this type.
+ *
+ * NOTE: We can't enforce type checks to make sure the key is Action, you
+ * will know if you got something wrong if there is a type error in this file
+ */
+type HoppActionArgs = {
+  "modals.my.environment.edit": {
+    envName: string
+    variableName: string
+  }
+  "modals.team.environment.edit": {
+    envName: string
+    variableName: string
+  }
+}
+
+/**
+ * HoppActions which require arguments for their invocation
+ */
+type HoppActionWithArgs = keyof HoppActionArgs
+
+/**
+ * HoppActions which do not require arguments for their invocation
+ */
+type HoppActionWithNoArgs = Exclude<HoppAction, HoppActionWithArgs>
+
+/**
+ * Resolves the argument type for a given HoppAction
+ */
+type ArgOfHoppAction<A extends HoppAction> = A extends HoppActionWithArgs
+  ? HoppActionArgs[A]
+  : undefined
+
+/**
+ * Resolves the action function for a given HoppAction, used by action handler function defs
+ */
+type ActionFunc<A extends HoppAction> = A extends HoppActionWithArgs
+  ? (arg: ArgOfHoppAction<A>) => void
+  : () => void
+
 type BoundActionList = {
   // eslint-disable-next-line no-unused-vars
-  [_ in HoppAction]?: Array<() => void>
+  [A in HoppAction]?: Array<ActionFunc<A>>
 }
 
 const boundActions: BoundActionList = {}
 
 export const activeActions$ = new BehaviorSubject<HoppAction[]>([])
 
-export function bindAction(action: HoppAction, handler: () => void) {
+export function bindAction<A extends HoppAction>(
+  action: A,
+  handler: ActionFunc<A>
+) {
   if (boundActions[action]) {
     boundActions[action]?.push(handler)
   } else {
-    boundActions[action] = [handler]
+    // 'any' assertion because TypeScript doesn't seem to be able to figure out the links.
+    boundActions[action] = [handler] as any
   }
 
   activeActions$.next(Object.keys(boundActions) as HoppAction[])
 }
 
-export function invokeAction(action: HoppAction) {
-  boundActions[action]?.forEach((handler) => handler())
+type InvokeActionFunc = {
+  (action: HoppActionWithNoArgs, args?: undefined): void
+  <A extends HoppActionWithArgs>(action: A, args: ArgOfHoppAction<A>): void
 }
 
-export function unbindAction(action: HoppAction, handler: () => void) {
-  boundActions[action] = boundActions[action]?.filter((x) => x !== handler)
+/**
+ * Invokes a action, triggering action handlers if any registered.
+ * The second argument parameter is optional if your action has no args required
+ * @param action The action to fire
+ * @param args The argument passed to the action handler. Optional if action has no args required
+ */
+export const invokeAction: InvokeActionFunc = <A extends HoppAction>(
+  action: A,
+  args: ArgOfHoppAction<A>
+) => {
+  boundActions[action]?.forEach((handler) => handler(args!))
+}
+
+export function unbindAction<A extends HoppAction>(
+  action: A,
+  handler: ActionFunc<A>
+) {
+  // 'any' assertion because TypeScript doesn't seem to be able to figure out the links.
+  boundActions[action] = boundActions[action]?.filter(
+    (x) => x !== handler
+  ) as any
 
   if (boundActions[action]?.length === 0) {
     delete boundActions[action]
@@ -69,7 +141,10 @@ export function unbindAction(action: HoppAction, handler: () => void) {
   activeActions$.next(Object.keys(boundActions) as HoppAction[])
 }
 
-export function defineActionHandler(action: HoppAction, handler: () => void) {
+export function defineActionHandler<A extends HoppAction>(
+  action: A,
+  handler: ActionFunc<A>
+) {
   onMounted(() => {
     bindAction(action, handler)
   })
diff --git a/packages/hoppscotch-app/src/helpers/editor/extensions/HoppEnvironment.ts b/packages/hoppscotch-app/src/helpers/editor/extensions/HoppEnvironment.ts
index 497459c89..5acfadce7 100644
--- a/packages/hoppscotch-app/src/helpers/editor/extensions/HoppEnvironment.ts
+++ b/packages/hoppscotch-app/src/helpers/editor/extensions/HoppEnvironment.ts
@@ -16,6 +16,7 @@ import {
   getAggregateEnvs,
   getSelectedEnvironmentType,
 } from "~/newstore/environments"
+import { invokeAction } from "~/helpers/actions"
 
 const HOPP_ENVIRONMENT_REGEX = /(<<[a-zA-Z0-9-_]+>>)/g
 
@@ -58,17 +59,13 @@ const cursorTooltipField = (aggregateEnvs: AggregateEnvironment[]) =>
       )
         return null
 
-      const envName =
-        aggregateEnvs.find(
-          (env) => env.key === text.slice(start - from, end - from)
-          // env.key === word.slice(wordSelection.from + 2, wordSelection.to - 2)
-        )?.sourceEnv ?? "Choose an Environment"
+      const parsedEnvKey = text.slice(start - from, end - from)
 
-      const envValue =
-        aggregateEnvs.find(
-          (env) => env.key === text.slice(start - from, end - from)
-          // env.key === word.slice(wordSelection.from + 2, wordSelection.to - 2)
-        )?.value ?? "Not found"
+      const tooltipEnv = aggregateEnvs.find((env) => env.key === parsedEnvKey)
+
+      const envName = tooltipEnv?.sourceEnv ?? "Choose an Environment"
+
+      const envValue = tooltipEnv?.value ?? "Not found"
 
       const result = parseTemplateStringE(envValue, aggregateEnvs)
 
@@ -76,9 +73,27 @@ const cursorTooltipField = (aggregateEnvs: AggregateEnvironment[]) =>
 
       const selectedEnvType = getSelectedEnvironmentType()
 
-      const envTypeIcon = `<i class="inline-flex items-center pr-2 mr-2 -my-1 text-base border-r material-icons border-secondary">${
+      const envTypeIcon = `<i class="inline-flex -my-1 -mx-0.5 opacity-65 items-center text-base material-icons border-secondary">${
         selectedEnvType === "TEAM_ENV" ? "people" : "person"
       }</i>`
+
+      const appendEditAction = (tooltip: HTMLElement) => {
+        const editIcon = document.createElement("span")
+        editIcon.className =
+          "env-icon ml-2 text-accent cursor-pointer hover:text-accentDark"
+        editIcon.addEventListener("click", () => {
+          const isPersonalEnv =
+            envName === "Global" || selectedEnvType !== "TEAM_ENV"
+          const action = isPersonalEnv ? "my" : "team"
+          invokeAction(`modals.${action}.environment.edit`, {
+            envName,
+            variableName: parsedEnvKey,
+          })
+        })
+        editIcon.innerHTML = `<i class="inline-flex -my-1 -mx-1 items-center px-1 text-base material-icons border-secondary">drive_file_rename_outline</i>`
+        tooltip.appendChild(editIcon)
+      }
+
       return {
         pos: start,
         end: to,
@@ -90,11 +105,12 @@ const cursorTooltipField = (aggregateEnvs: AggregateEnvironment[]) =>
           const kbd = document.createElement("kbd")
           const icon = document.createElement("span")
           icon.innerHTML = envTypeIcon
-          icon.className = "env-icon"
+          icon.className = "env-icon mr-2"
           kbd.textContent = finalEnv
           tooltipContainer.appendChild(icon)
           tooltipContainer.appendChild(document.createTextNode(`${envName} `))
           tooltipContainer.appendChild(kbd)
+          if (tooltipEnv) appendEditAction(tooltipContainer)
           tooltipContainer.className = "tippy-content"
           dom.className = "tippy-box"
           dom.dataset.theme = "tooltip"
diff --git a/packages/hoppscotch-app/src/helpers/editor/themes/baseTheme.ts b/packages/hoppscotch-app/src/helpers/editor/themes/baseTheme.ts
index 2e3567b94..24e65634e 100644
--- a/packages/hoppscotch-app/src/helpers/editor/themes/baseTheme.ts
+++ b/packages/hoppscotch-app/src/helpers/editor/themes/baseTheme.ts
@@ -102,11 +102,14 @@ export const baseTheme = EditorView.theme({
     border: "none",
     borderRadius: "4px",
   },
+  ".cm-tooltip-arrow": {
+    color: "var(--tooltip-color)",
+  },
   ".cm-tooltip-arrow:after": {
-    borderTopColor: "var(--tooltip-color) !important",
+    borderTopColor: "inherit !important",
   },
   ".cm-tooltip-arrow:before": {
-    borderTopColor: "var(--tooltip-color) !important",
+    borderTopColor: "inherit !important",
   },
   ".cm-tooltip.cm-tooltip-autocomplete > ul": {
     fontFamily: "var(--font-mono)",
@@ -234,11 +237,14 @@ export const inputTheme = EditorView.theme({
     border: "none",
     borderRadius: "4px",
   },
+  ".cm-tooltip-arrow": {
+    color: "var(--tooltip-color)",
+  },
   ".cm-tooltip-arrow:after": {
-    borderTopColor: "var(--tooltip-color) !important",
+    borderTopColor: "currentColor !important",
   },
   ".cm-tooltip-arrow:before": {
-    borderTopColor: "var(--tooltip-color) !important",
+    borderTopColor: "currentColor !important",
   },
   ".cm-tooltip.cm-tooltip-autocomplete > ul": {
     fontFamily: "var(--font-mono)",