diff --git a/packages/hoppscotch-common/locales/en.json b/packages/hoppscotch-common/locales/en.json
index 301448130..45b5420c8 100644
--- a/packages/hoppscotch-common/locales/en.json
+++ b/packages/hoppscotch-common/locales/en.json
@@ -24,6 +24,7 @@
     "go_back": "Go back",
     "go_forward": "Go forward",
     "group_by": "Group by",
+    "hide_secret": "Hide secret",
     "label": "Label",
     "learn_more": "Learn more",
     "less": "Less",
@@ -43,6 +44,7 @@
     "search": "Search",
     "send": "Send",
     "share": "Share",
+    "show_secret": "Show secret",
     "start": "Start",
     "starting": "Starting",
     "stop": "Stop",
@@ -238,6 +240,7 @@
     "profile": "Login to view your profile",
     "protocols": "Protocols are empty",
     "schema": "Connect to a GraphQL endpoint to view schema",
+    "secret_environments": "Secret environments are not synced to Hoppscotch hence user has to provide it's value during run-time.",
     "shared_requests": "Shared requests are empty",
     "shared_requests_logout": "Login to view your shared requests or create a new one",
     "subscription": "Subscriptions are empty",
@@ -269,6 +272,8 @@
     "quick_peek": "Environment Quick Peek",
     "replace_with_variable": "Replace with variable",
     "scope": "Scope",
+    "secret": "Secret",
+    "secret_value": "Secret value",
     "select": "Select environment",
     "set": "Set environment",
     "set_as_environment": "Set as environment",
@@ -277,6 +282,7 @@
     "updated": "Environment updated",
     "value": "Value",
     "variable": "Variable",
+    "variables":"Variables",
     "variable_list": "Variable List"
   },
   "error": {
@@ -413,6 +419,8 @@
     "description": "Inspect possible errors",
     "environment": {
       "add_environment": "Add to Environment",
+      "add_environment_value": "Add value",
+      "empty_value": "Environment value is empty for the variable '{variable}' ",
       "not_found": "Environment variable “{environment}” not found."
     },
     "header": {
diff --git a/packages/hoppscotch-common/src/components/environments/Add.vue b/packages/hoppscotch-common/src/components/environments/Add.vue
index 3d81d1116..3446d2349 100644
--- a/packages/hoppscotch-common/src/components/environments/Add.vue
+++ b/packages/hoppscotch-common/src/components/environments/Add.vue
@@ -21,7 +21,7 @@
           <label for="value" class="min-w-[2.5rem] font-semibold">{{
             t("environment.value")
           }}</label>
-          <input
+          <SmartEnvInput
             v-model="editingValue"
             type="text"
             class="input"
@@ -154,12 +154,14 @@ const addEnvironment = async () => {
     addGlobalEnvVariable({
       key: editingName.value,
       value: editingValue.value,
+      secret: false,
     })
     toast.success(`${t("environment.updated")}`)
   } else if (scope.value.type === "my-environment") {
     addEnvironmentVariable(scope.value.index, {
       key: editingName.value,
       value: editingValue.value,
+      secret: false,
     })
     toast.success(`${t("environment.updated")}`)
   } else {
diff --git a/packages/hoppscotch-common/src/components/environments/ImportExport.vue b/packages/hoppscotch-common/src/components/environments/ImportExport.vue
index d092aedbd..56c2f3869 100644
--- a/packages/hoppscotch-common/src/components/environments/ImportExport.vue
+++ b/packages/hoppscotch-common/src/components/environments/ImportExport.vue
@@ -9,7 +9,7 @@
 </template>
 
 <script setup lang="ts">
-import { Environment } from "@hoppscotch/data"
+import { Environment, NonSecretEnvironment } from "@hoppscotch/data"
 import * as E from "fp-ts/Either"
 import { ref } from "vue"
 
@@ -340,13 +340,13 @@ const showImportFailedError = () => {
 
 const handleImportToStore = async (
   environments: Environment[],
-  globalEnv?: Environment
+  globalEnv?: NonSecretEnvironment
 ) => {
   // if there's a global env, add them to the store
   if (globalEnv) {
-    globalEnv.variables.forEach(({ key, value }) => {
-      addGlobalEnvVariable({ key, value })
-    })
+    globalEnv.variables.forEach(({ key, value, secret }) =>
+      addGlobalEnvVariable({ key, value, secret })
+    )
   }
 
   if (props.environmentType === "MY_ENV") {
diff --git a/packages/hoppscotch-common/src/components/environments/Selector.vue b/packages/hoppscotch-common/src/components/environments/Selector.vue
index 085fa8f0c..f5e463b36 100644
--- a/packages/hoppscotch-common/src/components/environments/Selector.vue
+++ b/packages/hoppscotch-common/src/components/environments/Selector.vue
@@ -210,7 +210,10 @@
                   {{ variable.key }}
                 </span>
                 <span class="min-w-[9rem] w-full truncate text-secondaryLight">
-                  {{ variable.value }}
+                  <template v-if="variable.secret"> ******** </template>
+                  <template v-else>
+                    {{ variable.value }}
+                  </template>
                 </span>
               </div>
               <div v-if="globalEnvs.length === 0" class="text-secondaryLight">
@@ -265,7 +268,10 @@
                   {{ variable.key }}
                 </span>
                 <span class="min-w-[9rem] w-full truncate text-secondaryLight">
-                  {{ variable.value }}
+                  <template v-if="variable.secret"> ******** </template>
+                  <template v-else>
+                    {{ variable.value }}
+                  </template>
                 </span>
               </div>
               <div
@@ -479,15 +485,20 @@ const selectedEnv = computed(() => {
         type: "MY_ENV",
         index: props.modelValue.index,
         name: props.modelValue.environment?.name,
+        variables: props.modelValue.environment?.variables,
       }
     } else if (props.modelValue?.type === "team-environment") {
       return {
         type: "TEAM_ENV",
         name: props.modelValue.environment.environment.name,
         teamEnvID: props.modelValue.environment.id,
+        variables: props.modelValue.environment.environment.variables,
       }
     }
-    return { type: "global", name: "Global" }
+    return {
+      type: "global",
+      name: "Global",
+    }
   }
   if (selectedEnvironmentIndex.value.type === "MY_ENV") {
     const environment =
@@ -582,9 +593,7 @@ const environmentVariables = computed(() => {
 })
 
 const editGlobalEnv = () => {
-  invokeAction("modals.my.environment.edit", {
-    envName: "Global",
-  })
+  invokeAction("modals.global.environment.update", {})
 }
 
 const editEnv = () => {
diff --git a/packages/hoppscotch-common/src/components/environments/index.vue b/packages/hoppscotch-common/src/components/environments/index.vue
index ea526a16e..5d679bfa9 100644
--- a/packages/hoppscotch-common/src/components/environments/index.vue
+++ b/packages/hoppscotch-common/src/components/environments/index.vue
@@ -24,6 +24,8 @@
       :action="action"
       :editing-environment-index="editingEnvironmentIndex"
       :editing-variable-name="editingVariableName"
+      :env-vars="envVars"
+      :is-secret-option-selected="secretOptionSelected"
       @hide-modal="displayModalEdit(false)"
     />
     <EnvironmentsAdd
@@ -37,7 +39,7 @@
 
   <HoppSmartConfirmModal
     :show="showConfirmRemoveEnvModal"
-    :title="t('confirm.remove_team')"
+    :title="`${t('confirm.remove_environment')}`"
     @hide-modal="showConfirmRemoveEnvModal = false"
     @resolve="removeSelectedEnvironment()"
   />
@@ -67,6 +69,7 @@ import { deleteTeamEnvironment } from "~/helpers/backend/mutations/TeamEnvironme
 import { useToast } from "~/composables/toast"
 import { WorkspaceService } from "~/services/workspace.service"
 import { useService } from "dioc/vue"
+import { Environment } from "@hoppscotch/data"
 
 const t = useI18n()
 const toast = useToast()
@@ -88,6 +91,8 @@ const environmentType = ref<EnvironmentsChooseType>({
 const globalEnv = useReadonlyStream(globalEnv$, [])
 
 const globalEnvironment = computed(() => ({
+  v: 1 as const,
+  id: "Global",
   name: "Global",
   variables: globalEnv.value,
 }))
@@ -186,6 +191,7 @@ const action = ref<"new" | "edit">("edit")
 const editingEnvironmentIndex = ref<"Global" | null>(null)
 const editingVariableName = ref("")
 const editingVariableValue = ref("")
+const secretOptionSelected = ref(false)
 
 const position = ref({ top: 0, left: 0 })
 
@@ -203,6 +209,7 @@ const displayModalEdit = (shouldDisplay: boolean) => {
 const editEnvironment = (environmentIndex: "Global") => {
   editingEnvironmentIndex.value = environmentIndex
   action.value = "edit"
+  editingVariableName.value = ""
   displayModalEdit(true)
 }
 
@@ -232,6 +239,9 @@ const removeSelectedEnvironment = () => {
 
 const resetSelectedData = () => {
   editingEnvironmentIndex.value = null
+  editingVariableName.value = ""
+  editingVariableValue.value = ""
+  secretOptionSelected.value = false
 }
 
 defineActionHandler("modals.environment.new", () => {
@@ -243,11 +253,19 @@ defineActionHandler("modals.environment.delete-selected", () => {
   showConfirmRemoveEnvModal.value = true
 })
 
+const additionalVars = ref<Environment["variables"]>([])
+
+const envVars = () => [...globalEnv.value, ...additionalVars.value]
+
 defineActionHandler(
-  "modals.my.environment.edit",
-  ({ envName, variableName }) => {
-    if (variableName) editingVariableName.value = variableName
-    envName === "Global" && editEnvironment("Global")
+  "modals.global.environment.update",
+  ({ variables, isSecret }) => {
+    if (variables) {
+      additionalVars.value = variables
+    }
+    secretOptionSelected.value = isSecret ?? false
+    editEnvironment("Global")
+    editingVariableName.value = "Global"
   }
 )
 
diff --git a/packages/hoppscotch-common/src/components/environments/my/Details.vue b/packages/hoppscotch-common/src/components/environments/my/Details.vue
index 7b9d799aa..28f9f3da3 100644
--- a/packages/hoppscotch-common/src/components/environments/my/Details.vue
+++ b/packages/hoppscotch-common/src/components/environments/my/Details.vue
@@ -16,76 +16,103 @@
           @submit="saveEnvironment"
         />
 
-        <div class="flex flex-1 items-center justify-between">
-          <label for="variableList" class="p-4">
-            {{ t("environment.variable_list") }}
-          </label>
-          <div class="flex">
-            <HoppButtonSecondary
-              v-tippy="{ theme: 'tooltip' }"
-              :title="t('action.clear_all')"
-              :icon="clearIcon"
-              @click="clearContent()"
-            />
-            <HoppButtonSecondary
-              v-tippy="{ theme: 'tooltip' }"
-              :icon="IconPlus"
-              :title="t('add.new')"
-              @click="addEnvironmentVariable"
-            />
-          </div>
-        </div>
-        <div
-          v-if="evnExpandError"
-          class="mb-2 w-full overflow-auto whitespace-normal rounded bg-primaryLight px-4 py-2 font-mono text-red-400"
-        >
-          {{ t("environment.nested_overflow") }}
-        </div>
-        <div class="divide-y divide-dividerLight rounded border border-divider">
+        <div class="my-4 flex flex-col border border-divider rounded">
           <div
-            v-for="({ id, env }, index) in vars"
-            :key="`variable-${id}-${index}`"
-            class="flex divide-x divide-dividerLight"
+            v-if="evnExpandError"
+            class="mb-2 w-full overflow-auto whitespace-normal rounded bg-primaryLight px-4 py-2 font-mono text-red-400"
           >
-            <input
-              v-model="env.key"
-              v-focus
-              class="flex flex-1 bg-transparent px-4 py-2"
-              :placeholder="`${t('count.variable', { count: index + 1 })}`"
-              :name="'param' + index"
-            />
-            <SmartEnvInput
-              v-model="env.value"
-              :select-text-on-mount="env.key === editingVariableName"
-              :placeholder="`${t('count.value', { count: index + 1 })}`"
-              :envs="liveEnvs"
-              :name="'value' + index"
-            />
-            <div class="flex">
-              <HoppButtonSecondary
-                id="variable"
-                v-tippy="{ theme: 'tooltip' }"
-                :title="t('action.remove')"
-                :icon="IconTrash"
-                color="red"
-                @click="removeEnvironmentVariable(index)"
-              />
-            </div>
+            {{ t("environment.nested_overflow") }}
           </div>
-          <HoppSmartPlaceholder
-            v-if="vars.length === 0"
-            :src="`/images/states/${colorMode.value}/blockchain.svg`"
-            :alt="`${t('empty.environments')}`"
-            :text="t('empty.environments')"
-          >
-            <template #body>
-              <HoppButtonSecondary
-                :label="`${t('add.new')}`"
-                filled
-                @click="addEnvironmentVariable"
-              />
+          <HoppSmartTabs v-model="selectedEnvOption" render-inactive-tabs>
+            <template #actions>
+              <div class="flex flex-1 items-center justify-between">
+                <HoppButtonSecondary
+                  v-tippy="{ theme: 'tooltip' }"
+                  to="https://docs.hoppscotch.io/documentation/features/environments"
+                  blank
+                  :title="t('app.wiki')"
+                  :icon="IconHelpCircle"
+                />
+                <HoppButtonSecondary
+                  v-tippy="{ theme: 'tooltip' }"
+                  :title="t('action.clear_all')"
+                  :icon="clearIcon"
+                  @click="clearContent()"
+                />
+                <HoppButtonSecondary
+                  v-tippy="{ theme: 'tooltip' }"
+                  :icon="IconPlus"
+                  :title="t('add.new')"
+                  @click="addEnvironmentVariable"
+                />
+              </div>
             </template>
-          </HoppSmartPlaceholder>
+
+            <HoppSmartTab
+              v-for="tab in tabsData"
+              :id="tab.id"
+              :key="tab.id"
+              :label="tab.label"
+            >
+              <div
+                class="divide-y divide-dividerLight rounded border border-divider"
+              >
+                <HoppSmartPlaceholder
+                  v-if="tab.variables.length === 0"
+                  :src="`/images/states/${colorMode.value}/blockchain.svg`"
+                  :alt="tab.emptyStateLabel"
+                  :text="tab.emptyStateLabel"
+                >
+                  <template #body>
+                    <HoppButtonSecondary
+                      :label="`${t('add.new')}`"
+                      filled
+                      :icon="IconPlus"
+                      @click="addEnvironmentVariable"
+                    />
+                  </template>
+                </HoppSmartPlaceholder>
+
+                <template v-else>
+                  <div
+                    v-for="({ id, env }, index) in tab.variables"
+                    :key="`variable-${id}-${index}`"
+                    class="flex divide-x divide-dividerLight"
+                  >
+                    <input
+                      v-model="env.key"
+                      v-focus
+                      class="flex flex-1 bg-transparent px-4 py-2"
+                      :placeholder="`${t('count.variable', {
+                        count: index + 1,
+                      })}`"
+                      :name="'param' + index"
+                    />
+                    <SmartEnvInput
+                      v-model="env.value"
+                      :placeholder="`${t('count.value', { count: index + 1 })}`"
+                      :envs="liveEnvs"
+                      :name="'value' + index"
+                      :secret="tab.isSecret"
+                      :select-text-on-mount="
+                        env.key ? env.key === editingVariableName : false
+                      "
+                    />
+                    <div class="flex">
+                      <HoppButtonSecondary
+                        id="variable"
+                        v-tippy="{ theme: 'tooltip' }"
+                        :title="t('action.remove')"
+                        :icon="IconTrash"
+                        color="red"
+                        @click="removeEnvironmentVariable(id)"
+                      />
+                    </div>
+                  </div>
+                </template>
+              </div>
+            </HoppSmartTab>
+          </HoppSmartTabs>
         </div>
       </div>
     </template>
@@ -112,8 +139,8 @@ import IconTrash2 from "~icons/lucide/trash-2"
 import IconDone from "~icons/lucide/check"
 import IconPlus from "~icons/lucide/plus"
 import IconTrash from "~icons/lucide/trash"
-import { clone } from "lodash-es"
-import { computed, ref, watch } from "vue"
+import IconHelpCircle from "~icons/lucide/help-circle"
+import { ComputedRef, computed, ref, watch } from "vue"
 import * as E from "fp-ts/Either"
 import * as A from "fp-ts/Array"
 import * as O from "fp-ts/Option"
@@ -136,12 +163,16 @@ import { useReadonlyStream } from "@composables/stream"
 import { useColorMode } from "@composables/theming"
 import { environmentsStore } from "~/newstore/environments"
 import { platform } from "~/platform"
+import { useService } from "dioc/vue"
+import { SecretEnvironmentService } from "~/services/secret-environment.service"
+import { uniqueId } from "lodash-es"
 
 type EnvironmentVariable = {
   id: number
   env: {
-    key: string
     value: string
+    key: string
+    secret: boolean
   }
 }
 
@@ -155,6 +186,7 @@ const props = withDefaults(
     action: "edit" | "new"
     editingEnvironmentIndex?: number | "Global" | null
     editingVariableName?: string | null
+    isSecretOptionSelected?: boolean
     envVars?: () => Environment["variables"]
   }>(),
   {
@@ -162,6 +194,7 @@ const props = withDefaults(
     action: "edit",
     editingEnvironmentIndex: null,
     editingVariableName: null,
+    isSecretOptionSelected: false,
     envVars: () => [],
   }
 )
@@ -172,11 +205,55 @@ const emit = defineEmits<{
 
 const idTicker = ref(0)
 
+const tabsData: ComputedRef<
+  {
+    id: string
+    label: string
+    emptyStateLabel: string
+    isSecret: boolean
+    variables: EnvironmentVariable[]
+  }[]
+> = computed(() => {
+  return [
+    {
+      id: "variables",
+      label: t("environment.variables"),
+      emptyStateLabel: t("empty.environments"),
+      isSecret: false,
+      variables: nonSecretVars.value,
+    },
+    {
+      id: "secret",
+      label: t("environment.secret"),
+      emptyStateLabel: t("empty.secret_environments"),
+      isSecret: true,
+      variables: secretVars.value,
+    },
+  ]
+})
+
 const editingName = ref<string | null>(null)
+const editingID = ref<string>("")
 const vars = ref<EnvironmentVariable[]>([
-  { id: idTicker.value++, env: { key: "", value: "" } },
+  { id: idTicker.value++, env: { key: "", value: "", secret: false } },
 ])
 
+const secretEnvironmentService = useService(SecretEnvironmentService)
+
+const secretVars = computed(() =>
+  pipe(
+    vars.value,
+    A.filter((e) => e.env.secret)
+  )
+)
+
+const nonSecretVars = computed(() =>
+  pipe(
+    vars.value,
+    A.filter((e) => !e.env.secret)
+  )
+)
+
 const clearIcon = refAutoReset<typeof IconTrash2 | typeof IconDone>(
   IconTrash2,
   1000
@@ -184,14 +261,23 @@ const clearIcon = refAutoReset<typeof IconTrash2 | typeof IconDone>(
 
 const globalVars = useReadonlyStream(globalEnv$, [])
 
+type SelectedEnv = "variables" | "secret"
+
+const selectedEnvOption = ref<SelectedEnv>("variables")
+
 const workingEnv = computed(() => {
   if (props.editingEnvironmentIndex === "Global") {
+    const vars =
+      props.editingVariableName === "Global"
+        ? props.envVars()
+        : getGlobalVariables()
     return {
       name: "Global",
-      variables: getGlobalVariables(),
+      variables: vars,
     } as Environment
   } else if (props.action === "new") {
     return {
+      id: uniqueId(),
       name: "",
       variables: props.envVars(),
     }
@@ -214,6 +300,7 @@ const evnExpandError = computed(() => {
 
   return pipe(
     variables,
+    A.filter(({ secret }) => !secret),
     A.exists(({ value }) => E.isLeft(parseTemplateStringE(value, variables)))
   )
 })
@@ -239,11 +326,29 @@ watch(
   (show) => {
     if (show) {
       editingName.value = workingEnv.value?.name ?? null
+      selectedEnvOption.value = props.isSecretOptionSelected
+        ? "secret"
+        : "variables"
+
+      if (props.editingEnvironmentIndex !== "Global") {
+        editingID.value = workingEnv.value?.id ?? uniqueId()
+      }
       vars.value = pipe(
         workingEnv.value?.variables ?? [],
-        A.map((e) => ({
+        A.mapWithIndex((index, e) => ({
           id: idTicker.value++,
-          env: clone(e),
+          env: {
+            key: e.key,
+            value: e.secret
+              ? secretEnvironmentService.getSecretEnvironmentVariable(
+                  props.editingEnvironmentIndex === "Global"
+                    ? "Global"
+                    : workingEnv.value?.id,
+                  index
+                )?.value ?? ""
+              : e.value,
+            secret: e.secret,
+          },
         }))
       )
     }
@@ -251,7 +356,10 @@ watch(
 )
 
 const clearContent = () => {
-  vars.value = []
+  vars.value = vars.value.filter((e) =>
+    selectedEnvOption.value === "secret" ? !e.env.secret : e.env.secret
+  )
+
   clearIcon.value = IconDone
   toast.success(`${t("state.cleared")}`)
 }
@@ -262,12 +370,16 @@ const addEnvironmentVariable = () => {
     env: {
       key: "",
       value: "",
+      secret: selectedEnvOption.value === "secret",
     },
   })
 }
 
-const removeEnvironmentVariable = (index: number) => {
-  vars.value.splice(index, 1)
+const removeEnvironmentVariable = (id: number) => {
+  const index = vars.value.findIndex((e) => e.id === id)
+  if (index !== -1) {
+    vars.value.splice(index, 1)
+  }
 }
 
 const saveEnvironment = () => {
@@ -276,7 +388,7 @@ const saveEnvironment = () => {
     return
   }
 
-  const filterdVariables = pipe(
+  const filteredVariables = pipe(
     vars.value,
     A.filterMap(
       flow(
@@ -286,14 +398,43 @@ const saveEnvironment = () => {
     )
   )
 
+  const secretVariables = pipe(
+    filteredVariables,
+    A.filterMapWithIndex((i, e) =>
+      e.secret ? O.some({ key: e.key, value: e.value, varIndex: i }) : O.none
+    )
+  )
+
+  if (editingID.value) {
+    secretEnvironmentService.addSecretEnvironment(
+      editingID.value,
+      secretVariables
+    )
+  } else if (props.editingEnvironmentIndex === "Global") {
+    secretEnvironmentService.addSecretEnvironment("Global", secretVariables)
+  }
+
+  const variables = pipe(
+    filteredVariables,
+    A.map((e) =>
+      e.secret ? { key: e.key, secret: e.secret, value: undefined } : e
+    )
+  )
+
   const environmentUpdated: Environment = {
+    v: 1,
+    id: uniqueId(),
     name: editingName.value,
-    variables: filterdVariables,
+    variables,
   }
 
   if (props.action === "new") {
     // Creating a new environment
-    createEnvironment(editingName.value, environmentUpdated.variables)
+    createEnvironment(
+      editingName.value,
+      environmentUpdated.variables,
+      editingID.value
+    )
     setSelectedEnvironmentIndex({
       type: "MY_ENV",
       index: envList.value.length - 1,
@@ -332,6 +473,7 @@ const saveEnvironment = () => {
 
 const hideModal = () => {
   editingName.value = null
+  selectedEnvOption.value = "variables"
   emit("hide-modal")
 }
 </script>
diff --git a/packages/hoppscotch-common/src/components/environments/my/Environment.vue b/packages/hoppscotch-common/src/components/environments/my/Environment.vue
index 04a272442..e5f8a80ea 100644
--- a/packages/hoppscotch-common/src/components/environments/my/Environment.vue
+++ b/packages/hoppscotch-common/src/components/environments/my/Environment.vue
@@ -135,6 +135,8 @@ import { useToast } from "@composables/toast"
 import { TippyComponent } from "vue-tippy"
 import { HoppSmartItem } from "@hoppscotch/ui"
 import { exportAsJSON } from "~/helpers/import-export/export/environment"
+import { useService } from "dioc/vue"
+import { SecretEnvironmentService } from "~/services/secret-environment.service"
 
 const t = useI18n()
 const toast = useToast()
@@ -150,6 +152,8 @@ const emit = defineEmits<{
 
 const confirmRemove = ref(false)
 
+const secretEnvironmentService = useService(SecretEnvironmentService)
+
 const exportEnvironmentAsJSON = () => {
   const { environment, environmentIndex } = props
   exportAsJSON(environment, environmentIndex)
@@ -168,6 +172,7 @@ const removeEnvironment = () => {
   if (props.environmentIndex === null) return
   if (props.environmentIndex !== "Global") {
     deleteEnvironment(props.environmentIndex, props.environment.id)
+    secretEnvironmentService.deleteSecretEnvironment(props.environment.id)
   }
   toast.success(`${t("state.deleted")}`)
 }
diff --git a/packages/hoppscotch-common/src/components/environments/my/index.vue b/packages/hoppscotch-common/src/components/environments/my/index.vue
index f066df1e4..9eaa2f00c 100644
--- a/packages/hoppscotch-common/src/components/environments/my/index.vue
+++ b/packages/hoppscotch-common/src/components/environments/my/index.vue
@@ -67,6 +67,7 @@
       :action="action"
       :editing-environment-index="editingEnvironmentIndex"
       :editing-variable-name="editingVariableName"
+      :is-secret-option-selected="secretOptionSelected"
       @hide-modal="displayModalEdit(false)"
     />
     <EnvironmentsImportExport
@@ -99,6 +100,7 @@ const showModalDetails = ref(false)
 const action = ref<"new" | "edit">("edit")
 const editingEnvironmentIndex = ref<number | null>(null)
 const editingVariableName = ref("")
+const secretOptionSelected = ref(false)
 
 const displayModalAdd = (shouldDisplay: boolean) => {
   action.value = "new"
@@ -120,18 +122,23 @@ const editEnvironment = (environmentIndex: number) => {
 }
 const resetSelectedData = () => {
   editingEnvironmentIndex.value = null
+  editingVariableName.value = ""
+  secretOptionSelected.value = false
 }
 
 defineActionHandler(
   "modals.my.environment.edit",
-  ({ envName, variableName }) => {
+  ({ envName, variableName, isSecret }) => {
     if (variableName) editingVariableName.value = variableName
     const envIndex: number = environments.value.findIndex(
       (environment: Environment) => {
         return environment.name === envName
       }
     )
-    if (envName !== "Global") editEnvironment(envIndex)
+    if (envName !== "Global") {
+      editEnvironment(envIndex)
+      secretOptionSelected.value = isSecret ?? false
+    }
   }
 )
 </script>
diff --git a/packages/hoppscotch-common/src/components/environments/teams/Details.vue b/packages/hoppscotch-common/src/components/environments/teams/Details.vue
index d54d18034..906a7a608 100644
--- a/packages/hoppscotch-common/src/components/environments/teams/Details.vue
+++ b/packages/hoppscotch-common/src/components/environments/teams/Details.vue
@@ -16,90 +16,112 @@
           @submit="saveEnvironment"
         />
 
-        <div class="flex flex-1 items-center justify-between">
-          <label for="variableList" class="p-4">
-            {{ t("environment.variable_list") }}
-          </label>
-          <div v-if="!isViewer" class="flex">
-            <HoppButtonSecondary
-              v-tippy="{ theme: 'tooltip' }"
-              :title="t('action.clear_all')"
-              :icon="clearIcon"
-              @click="clearContent()"
-            />
-            <HoppButtonSecondary
-              v-tippy="{ theme: 'tooltip' }"
-              :icon="IconPlus"
-              :title="t('add.new')"
-              @click="addEnvironmentVariable"
-            />
-          </div>
-        </div>
-        <div
-          v-if="evnExpandError"
-          class="mb-2 w-full overflow-auto whitespace-normal rounded bg-primaryLight px-4 py-2 font-mono text-red-400"
-        >
-          {{ t("environment.nested_overflow") }}
-        </div>
-        <div class="divide-y divide-dividerLight rounded border border-divider">
+        <div class="my-4 flex flex-col border border-divider rounded">
           <div
-            v-for="({ id, env }, index) in vars"
-            :key="`variable-${id}-${index}`"
-            class="flex divide-x divide-dividerLight"
+            v-if="evnExpandError"
+            class="mb-2 w-full overflow-auto whitespace-normal rounded bg-primaryLight px-4 py-2 font-mono text-red-400"
           >
-            <input
-              v-model="env.key"
-              v-focus
-              class="flex flex-1 bg-transparent px-4 py-2"
-              :class="isViewer && 'opacity-25'"
-              :placeholder="`${t('count.variable', { count: index + 1 })}`"
-              :name="'param' + index"
-              :disabled="isViewer"
-            />
-            <SmartEnvInput
-              v-model="env.value"
-              :select-text-on-mount="env.key === editingVariableName"
-              :placeholder="`${t('count.value', { count: index + 1 })}`"
-              :envs="liveEnvs"
-              :name="'value' + index"
-              :readonly="isViewer"
-            />
-            <div v-if="!isViewer" class="flex">
-              <HoppButtonSecondary
-                id="variable"
-                v-tippy="{ theme: 'tooltip' }"
-                :title="t('action.remove')"
-                :icon="IconTrash"
-                color="red"
-                @click="removeEnvironmentVariable(index)"
-              />
-            </div>
+            {{ t("environment.nested_overflow") }}
           </div>
-          <HoppSmartPlaceholder
-            v-if="vars.length === 0"
-            :src="`/images/states/${colorMode.value}/blockchain.svg`"
-            :alt="`${t('empty.environments')}`"
-            :text="t('empty.environments')"
-          >
-            <template #body>
-              <HoppButtonSecondary
-                v-if="isViewer"
-                disabled
-                :label="`${t('add.new')}`"
-                filled
-              />
-              <HoppButtonSecondary
-                v-else
-                :label="`${t('add.new')}`"
-                filled
-                @click="addEnvironmentVariable"
-              />
+          <HoppSmartTabs v-model="selectedEnvOption" render-inactive-tabs>
+            <template #actions>
+              <div class="flex flex-1 items-center justify-between">
+                <HoppButtonSecondary
+                  v-tippy="{ theme: 'tooltip' }"
+                  to="https://docs.hoppscotch.io/documentation/features/environments"
+                  blank
+                  :title="t('app.wiki')"
+                  :icon="IconHelpCircle"
+                />
+                <HoppButtonSecondary
+                  v-if="!isViewer"
+                  v-tippy="{ theme: 'tooltip' }"
+                  :title="t('action.clear_all')"
+                  :icon="clearIcon"
+                  @click="clearContent()"
+                />
+                <HoppButtonSecondary
+                  v-if="!isViewer"
+                  v-tippy="{ theme: 'tooltip' }"
+                  :icon="IconPlus"
+                  :title="t('add.new')"
+                  @click="addEnvironmentVariable"
+                />
+              </div>
             </template>
-          </HoppSmartPlaceholder>
+
+            <HoppSmartTab
+              v-for="tab in tabsData"
+              :id="tab.id"
+              :key="tab.id"
+              :label="tab.label"
+            >
+              <div
+                class="divide-y divide-dividerLight rounded border border-divider"
+              >
+                <HoppSmartPlaceholder
+                  v-if="tab.variables.length === 0"
+                  :src="`/images/states/${colorMode.value}/blockchain.svg`"
+                  :alt="tab.emptyStateLabel"
+                  :text="tab.emptyStateLabel"
+                >
+                  <template #body>
+                    <HoppButtonSecondary
+                      v-if="!isViewer"
+                      :label="`${t('add.new')}`"
+                      filled
+                      :icon="IconPlus"
+                      @click="addEnvironmentVariable"
+                    />
+                  </template>
+                </HoppSmartPlaceholder>
+
+                <template v-else>
+                  <div
+                    v-for="({ id, env }, index) in tab.variables"
+                    :key="`variable-${id}-${index}`"
+                    class="flex divide-x divide-dividerLight"
+                  >
+                    <input
+                      v-model="env.key"
+                      v-focus
+                      class="flex flex-1 bg-transparent px-4 py-2"
+                      :placeholder="`${t('count.variable', {
+                        count: index + 1,
+                      })}`"
+                      :name="'param' + index"
+                      :disabled="isViewer"
+                    />
+                    <SmartEnvInput
+                      v-model="env.value"
+                      :select-text-on-mount="
+                        env.key ? env.key === editingVariableName : false
+                      "
+                      :placeholder="`${t('count.value', { count: index + 1 })}`"
+                      :envs="liveEnvs"
+                      :name="'value' + index"
+                      :secret="tab.isSecret"
+                      :readonly="isViewer && !tab.isSecret"
+                    />
+                    <div v-if="!isViewer" class="flex">
+                      <HoppButtonSecondary
+                        id="variable"
+                        v-tippy="{ theme: 'tooltip' }"
+                        :title="t('action.remove')"
+                        :icon="IconTrash"
+                        color="red"
+                        @click="removeEnvironmentVariable(id)"
+                      />
+                    </div>
+                  </div>
+                </template>
+              </div>
+            </HoppSmartTab>
+          </HoppSmartTabs>
         </div>
       </div>
     </template>
-    <template v-if="!isViewer" #footer>
+    <template #footer>
       <span class="flex space-x-2">
         <HoppButtonPrimary
           :label="`${t('action.save')}`"
@@ -119,7 +141,7 @@
 </template>
 
 <script setup lang="ts">
-import { computed, ref, watch } from "vue"
+import { ComputedRef, computed, ref, watch } from "vue"
 import * as E from "fp-ts/Either"
 import * as A from "fp-ts/Array"
 import * as O from "fp-ts/Option"
@@ -141,13 +163,17 @@ import IconTrash from "~icons/lucide/trash"
 import IconTrash2 from "~icons/lucide/trash-2"
 import IconDone from "~icons/lucide/check"
 import IconPlus from "~icons/lucide/plus"
+import IconHelpCircle from "~icons/lucide/help-circle"
 import { platform } from "~/platform"
+import { useService } from "dioc/vue"
+import { SecretEnvironmentService } from "~/services/secret-environment.service"
 
 type EnvironmentVariable = {
   id: number
   env: {
     key: string
     value: string
+    secret: boolean
   }
 }
 
@@ -163,6 +189,7 @@ const props = withDefaults(
     editingTeamId: string | undefined
     editingVariableName?: string | null
     isViewer?: boolean
+    isSecretOptionSelected?: boolean
     envVars?: () => Environment["variables"]
   }>(),
   {
@@ -172,6 +199,7 @@ const props = withDefaults(
     editingTeamId: "",
     editingVariableName: null,
     isViewer: false,
+    isSecretOptionSelected: false,
     envVars: () => [],
   }
 )
@@ -182,11 +210,59 @@ const emit = defineEmits<{
 
 const idTicker = ref(0)
 
+const tabsData: ComputedRef<
+  {
+    id: string
+    label: string
+    emptyStateLabel: string
+    isSecret: boolean
+    variables: EnvironmentVariable[]
+  }[]
+> = computed(() => {
+  return [
+    {
+      id: "variables",
+      label: t("environment.variables"),
+      emptyStateLabel: t("empty.environments"),
+      isSecret: false,
+      variables: nonSecretVars.value,
+    },
+    {
+      id: "secret",
+      label: t("environment.secret"),
+      emptyStateLabel: t("empty.secret_environments"),
+      isSecret: true,
+      variables: secretVars.value,
+    },
+  ]
+})
+
 const editingName = ref<string | null>(null)
+const editingID = ref<string | null>(null)
 const vars = ref<EnvironmentVariable[]>([
-  { id: idTicker.value++, env: { key: "", value: "" } },
+  { id: idTicker.value++, env: { key: "", value: "", secret: false } },
 ])
 
+const secretEnvironmentService = useService(SecretEnvironmentService)
+
+const secretVars = computed(() =>
+  pipe(
+    vars.value,
+    A.filter((e) => e.env.secret)
+  )
+)
+
+const nonSecretVars = computed(() =>
+  pipe(
+    vars.value,
+    A.filter((e) => !e.env.secret)
+  )
+)
+
+type SelectedEnv = "variables" | "secret"
+
+const selectedEnvOption = ref<SelectedEnv>("variables")
+
 const clearIcon = refAutoReset<typeof IconTrash2 | typeof IconDone>(
   IconTrash2,
   1000
@@ -215,22 +291,34 @@ watch(
   () => props.show,
   (show) => {
     if (show) {
+      editingName.value = props.editingEnvironment?.environment.name ?? null
+      selectedEnvOption.value = props.isSecretOptionSelected
+        ? "secret"
+        : "variables"
       if (props.action === "new") {
-        editingName.value = null
         vars.value = pipe(
           props.envVars() ?? [],
-          A.map((e: { key: string; value: string }) => ({
+          A.map((e) => ({
             id: idTicker.value++,
             env: clone(e),
           }))
         )
       } else if (props.editingEnvironment !== null) {
-        editingName.value = props.editingEnvironment.environment.name ?? null
+        editingID.value = props.editingEnvironment.id
         vars.value = pipe(
           props.editingEnvironment.environment.variables ?? [],
-          A.map((e: { key: string; value: string }) => ({
+          A.mapWithIndex((index, e) => ({
             id: idTicker.value++,
-            env: clone(e),
+            env: {
+              key: e.key,
+              value: e.secret
+                ? secretEnvironmentService.getSecretEnvironmentVariable(
+                    editingID.value ?? "",
+                    index
+                  )?.value ?? ""
+                : e.value,
+              secret: e.secret,
+            },
           }))
         )
       }
@@ -250,12 +338,16 @@ const addEnvironmentVariable = () => {
     env: {
       key: "",
       value: "",
+      secret: selectedEnvOption.value === "secret",
     },
   })
 }
 
-const removeEnvironmentVariable = (index: number) => {
-  vars.value.splice(index, 1)
+const removeEnvironmentVariable = (id: number) => {
+  const index = vars.value.findIndex((e) => e.id === id)
+  if (index !== -1) {
+    vars.value.splice(index, 1)
+  }
 }
 
 const isLoading = ref(false)
@@ -278,52 +370,102 @@ const saveEnvironment = async () => {
     )
   )
 
+  const secretVariables = pipe(
+    filterdVariables,
+    A.filterMapWithIndex((i, e) =>
+      e.secret ? O.some({ key: e.key, value: e.value, varIndex: i }) : O.none
+    )
+  )
+
+  const variables = pipe(
+    filterdVariables,
+    A.map((e) =>
+      e.secret ? { key: e.key, secret: e.secret, value: undefined } : e
+    )
+  )
+
+  const environmentUpdated: Environment = {
+    v: 1,
+    id: editingID.value ?? "",
+    name: editingName.value,
+    variables,
+  }
+
   if (props.action === "new") {
     platform.analytics?.logEvent({
       type: "HOPP_CREATE_ENVIRONMENT",
       workspaceType: "team",
     })
 
-    await pipe(
-      createTeamEnvironment(
-        JSON.stringify(filterdVariables),
-        props.editingTeamId,
-        editingName.value
-      ),
-      TE.match(
-        (err: GQLError<string>) => {
-          console.error(err)
-          toast.error(`${getErrorMessage(err)}`)
-        },
-        () => {
-          hideModal()
-          toast.success(`${t("environment.created")}`)
-        }
-      )
-    )()
+    if (!props.isViewer) {
+      await pipe(
+        createTeamEnvironment(
+          JSON.stringify(environmentUpdated.variables),
+          props.editingTeamId,
+          environmentUpdated.name
+        ),
+        TE.match(
+          (err: GQLError<string>) => {
+            console.error(err)
+            toast.error(`${getErrorMessage(err)}`)
+            isLoading.value = false
+          },
+          (res) => {
+            const envID = res.createTeamEnvironment.id
+            if (envID) {
+              secretEnvironmentService.addSecretEnvironment(
+                envID,
+                secretVariables
+              )
+            }
+            hideModal()
+            toast.success(`${t("environment.created")}`)
+            isLoading.value = false
+          }
+        )
+      )()
+    }
   } else {
     if (!props.editingEnvironment) {
       console.error("No Environment Found")
       return
     }
 
-    await pipe(
-      updateTeamEnvironment(
-        JSON.stringify(filterdVariables),
-        props.editingEnvironment.id,
-        editingName.value
-      ),
-      TE.match(
-        (err: GQLError<string>) => {
-          console.error(err)
-          toast.error(`${getErrorMessage(err)}`)
-        },
-        () => {
-          hideModal()
-          toast.success(`${t("environment.updated")}`)
-        }
+    if (editingID.value) {
+      secretEnvironmentService.addSecretEnvironment(
+        editingID.value,
+        secretVariables
       )
-    )()
+
+      // If the user is a viewer, we don't need to update the environment in BE
+      // just update the secret environment in the local storage
+      if (props.isViewer) {
+        hideModal()
+        toast.success(`${t("environment.updated")}`)
+      }
+    }
+
+    if (!props.isViewer) {
+      await pipe(
+        updateTeamEnvironment(
+          JSON.stringify(environmentUpdated.variables),
+          props.editingEnvironment.id,
+          environmentUpdated.name
+        ),
+        TE.match(
+          (err: GQLError<string>) => {
+            console.error(err)
+            toast.error(`${getErrorMessage(err)}`)
+            isLoading.value = false
+          },
+          () => {
+            hideModal()
+            toast.success(`${t("environment.updated")}`)
+            isLoading.value = false
+          }
+        )
+      )()
+    }
   }
 
   isLoading.value = false
@@ -331,6 +473,7 @@ const saveEnvironment = async () => {
 
 const hideModal = () => {
   editingName.value = null
+  selectedEnvOption.value = "variables"
   emit("hide-modal")
 }
 
diff --git a/packages/hoppscotch-common/src/components/environments/teams/Environment.vue b/packages/hoppscotch-common/src/components/environments/teams/Environment.vue
index 4bff99337..2271a997b 100644
--- a/packages/hoppscotch-common/src/components/environments/teams/Environment.vue
+++ b/packages/hoppscotch-common/src/components/environments/teams/Environment.vue
@@ -19,7 +19,6 @@
     </span>
     <span>
       <tippy
-        v-if="!isViewer"
         ref="options"
         interactive
         trigger="click"
@@ -57,6 +56,7 @@
             />
 
             <HoppSmartItem
+              v-if="!isViewer"
               ref="duplicate"
               :icon="IconCopy"
               :label="`${t('action.duplicate')}`"
@@ -69,6 +69,7 @@
               "
             />
             <HoppSmartItem
+              v-if="!isViewer"
               ref="exportAsJsonEl"
               :icon="IconEdit"
               :label="`${t('export.as_json')}`"
@@ -81,6 +82,7 @@
               "
             />
             <HoppSmartItem
+              v-if="!isViewer"
               ref="deleteAction"
               :icon="IconTrash2"
               :label="`${t('action.delete')}`"
@@ -124,6 +126,8 @@ import IconMoreVertical from "~icons/lucide/more-vertical"
 import { TippyComponent } from "vue-tippy"
 import { HoppSmartItem } from "@hoppscotch/ui"
 import { exportAsJSON } from "~/helpers/import-export/export/environment"
+import { useService } from "dioc/vue"
+import { SecretEnvironmentService } from "~/services/secret-environment.service"
 
 const t = useI18n()
 const toast = useToast()
@@ -137,6 +141,8 @@ const emit = defineEmits<{
   (e: "edit-environment"): void
 }>()
 
+const secretEnvironmentService = useService(SecretEnvironmentService)
+
 const confirmRemove = ref(false)
 
 const exportEnvironmentAsJSON = () =>
@@ -161,6 +167,7 @@ const removeEnvironment = () => {
       },
       () => {
         toast.success(`${t("team_environment.deleted")}`)
+        secretEnvironmentService.deleteSecretEnvironment(props.environment.id)
       }
     )
   )()
diff --git a/packages/hoppscotch-common/src/components/environments/teams/index.vue b/packages/hoppscotch-common/src/components/environments/teams/index.vue
index e1f161a84..b8aa2bfdf 100644
--- a/packages/hoppscotch-common/src/components/environments/teams/index.vue
+++ b/packages/hoppscotch-common/src/components/environments/teams/index.vue
@@ -105,6 +105,7 @@
       :editing-environment="editingEnvironment"
       :editing-team-id="team?.id"
       :editing-variable-name="editingVariableName"
+      :is-secret-option-selected="secretOptionSelected"
       :is-viewer="team?.myRole === 'VIEWER'"
       @hide-modal="displayModalEdit(false)"
     />
@@ -148,6 +149,7 @@ const showModalDetails = ref(false)
 const action = ref<"new" | "edit">("edit")
 const editingEnvironment = ref<TeamEnvironment | null>(null)
 const editingVariableName = ref("")
+const secretOptionSelected = ref(false)
 
 const isTeamViewer = computed(() => props.team?.myRole === "VIEWER")
 
@@ -171,6 +173,8 @@ const editEnvironment = (environment: TeamEnvironment | null) => {
 }
 const resetSelectedData = () => {
   editingEnvironment.value = null
+  editingVariableName.value = ""
+  secretOptionSelected.value = false
 }
 
 const getErrorMessage = (err: GQLError<string>) => {
@@ -187,12 +191,15 @@ const getErrorMessage = (err: GQLError<string>) => {
 
 defineActionHandler(
   "modals.team.environment.edit",
-  ({ envName, variableName }) => {
+  ({ envName, variableName, isSecret }) => {
     if (variableName) editingVariableName.value = variableName
     const teamEnvToEdit = props.teamEnvironments.find(
       (environment) => environment.environment.name === envName
     )
-    if (teamEnvToEdit) editEnvironment(teamEnvToEdit)
+    if (teamEnvToEdit) {
+      editEnvironment(teamEnvToEdit)
+      secretOptionSelected.value = isSecret ?? false
+    }
   }
 )
 </script>
diff --git a/packages/hoppscotch-common/src/components/http/CodegenModal.vue b/packages/hoppscotch-common/src/components/http/CodegenModal.vue
index a793dbef1..6747a1c13 100644
--- a/packages/hoppscotch-common/src/components/http/CodegenModal.vue
+++ b/packages/hoppscotch-common/src/components/http/CodegenModal.vue
@@ -187,6 +187,8 @@ const copyCodeIcon = refAutoReset<typeof IconCopy | typeof IconCheck>(
 const requestCode = computed(() => {
   const aggregateEnvs = getAggregateEnvs()
   const env: Environment = {
+    v: 1,
+    id: "env",
     name: "Env",
     variables: aggregateEnvs,
   }
diff --git a/packages/hoppscotch-common/src/components/http/Headers.vue b/packages/hoppscotch-common/src/components/http/Headers.vue
index 1bf7effd8..49ec74461 100644
--- a/packages/hoppscotch-common/src/components/http/Headers.vue
+++ b/packages/hoppscotch-common/src/components/http/Headers.vue
@@ -553,7 +553,7 @@ const clearContent = () => {
 const aggregateEnvs = useReadonlyStream(aggregateEnvs$, getAggregateEnvs())
 
 const computedHeaders = computed(() =>
-  getComputedHeaders(request.value, aggregateEnvs.value).map(
+  getComputedHeaders(request.value, aggregateEnvs.value, false).map(
     (header, index) => ({
       id: `header-${index}`,
       ...header,
@@ -606,7 +606,8 @@ const inheritedProperties = computed(() => {
   const computedAuthHeader = getComputedAuthHeaders(
     aggregateEnvs.value,
     request.value,
-    props.inheritedProperties.auth.inheritedAuth
+    props.inheritedProperties.auth.inheritedAuth,
+    false
   )[0]
 
   if (
diff --git a/packages/hoppscotch-common/src/components/http/OAuth2Authorization.vue b/packages/hoppscotch-common/src/components/http/OAuth2Authorization.vue
index ee9d2f1c0..b2aca464f 100644
--- a/packages/hoppscotch-common/src/components/http/OAuth2Authorization.vue
+++ b/packages/hoppscotch-common/src/components/http/OAuth2Authorization.vue
@@ -112,7 +112,7 @@ const handleAccessTokenRequest = async () => {
   }
 
   const envs = getCombinedEnvVariables()
-  const envVars = [...envs.selected, ...envs.global]
+  const envVars = [...envs.selected.variables, ...envs.global]
 
   try {
     const tokenReqParams = {
diff --git a/packages/hoppscotch-common/src/components/http/TabHead.vue b/packages/hoppscotch-common/src/components/http/TabHead.vue
index 22ff669a8..5f90c7056 100644
--- a/packages/hoppscotch-common/src/components/http/TabHead.vue
+++ b/packages/hoppscotch-common/src/components/http/TabHead.vue
@@ -64,7 +64,6 @@
             :icon="IconShare2"
             :label="t('tab.share_tab_request')"
             :shortcut="['S']"
-            :new="true"
             @click="
               () => {
                 emit('share-tab-request')
diff --git a/packages/hoppscotch-common/src/components/http/TestResult.vue b/packages/hoppscotch-common/src/components/http/TestResult.vue
index e87ecf286..2d5aaa2a6 100644
--- a/packages/hoppscotch-common/src/components/http/TestResult.vue
+++ b/packages/hoppscotch-common/src/components/http/TestResult.vue
@@ -211,7 +211,6 @@ import { useI18n } from "@composables/i18n"
 import {
   globalEnv$,
   selectedEnvironmentIndex$,
-  setGlobalEnvVariables,
   setSelectedEnvironmentIndex,
 } from "~/newstore/environments"
 import { HoppTestResult } from "~/helpers/types/HoppTestResult"
@@ -225,6 +224,7 @@ import { useColorMode } from "~/composables/theming"
 import { useVModel } from "@vueuse/core"
 import { useService } from "dioc/vue"
 import { WorkspaceService } from "~/services/workspace.service"
+import { invokeAction } from "~/helpers/actions"
 
 const props = defineProps<{
   modelValue: HoppTestResult | null | undefined
@@ -304,9 +304,10 @@ const globalHasAdditions = computed(() => {
 
 const addEnvToGlobal = () => {
   if (!testResults.value?.envDiff.selected.additions) return
-  setGlobalEnvVariables([
-    ...globalEnvVars.value,
-    ...testResults.value.envDiff.selected.additions,
-  ])
+
+  invokeAction("modals.global.environment.update", {
+    variables: testResults.value.envDiff.selected.additions,
+    isSecret: false,
+  })
 }
 </script>
diff --git a/packages/hoppscotch-common/src/components/smart/EnvInput.vue b/packages/hoppscotch-common/src/components/smart/EnvInput.vue
index f2a899f4f..72be1bb01 100644
--- a/packages/hoppscotch-common/src/components/smart/EnvInput.vue
+++ b/packages/hoppscotch-common/src/components/smart/EnvInput.vue
@@ -3,7 +3,18 @@
     <div
       class="no-scrollbar absolute inset-0 flex flex-1 divide-x divide-dividerLight overflow-x-auto"
     >
+      <input
+        v-if="isSecret"
+        id="secret"
+        v-model="secretText"
+        name="secret"
+        :placeholder="t('environment.secret_value')"
+        class="flex flex-1 bg-transparent px-4"
+        :class="styles"
+        type="password"
+      />
       <div
+        v-else
         ref="editor"
         :placeholder="placeholder"
         class="flex flex-1"
@@ -11,7 +22,14 @@
         @click="emit('click', $event)"
         @keydown="handleKeystroke"
         @focusin="showSuggestionPopover = true"
-      ></div>
+      />
+      <HoppButtonSecondary
+        v-if="secret"
+        v-tippy="{ theme: 'tooltip' }"
+        :title="isSecret ? t('action.show_secret') : t('action.hide_secret')"
+        :icon="isSecret ? IconEyeoff : IconEye"
+        @click="toggleSecret"
+      />
       <AppInspection
         :inspection-results="inspectionResults"
         class="sticky inset-y-0 right-0 rounded-r bg-primary"
@@ -61,18 +79,29 @@ import { history, historyKeymap } from "@codemirror/commands"
 import { inputTheme } from "~/helpers/editor/themes/baseTheme"
 import { HoppReactiveEnvPlugin } from "~/helpers/editor/extensions/HoppEnvironment"
 import { useReadonlyStream } from "@composables/stream"
-import { AggregateEnvironment, aggregateEnvs$ } from "~/newstore/environments"
+import {
+  AggregateEnvironment,
+  aggregateEnvsWithSecrets$,
+} from "~/newstore/environments"
 import { platform } from "~/platform"
 import { onClickOutside, useDebounceFn } from "@vueuse/core"
 import { InspectorResult } from "~/services/inspection"
 import { invokeAction } from "~/helpers/actions"
+import { Environment } from "@hoppscotch/data"
+import { useI18n } from "~/composables/i18n"
+import IconEye from "~icons/lucide/eye"
+import IconEyeoff from "~icons/lucide/eye-off"
+
+const t = useI18n()
+
+type Env = Environment["variables"][number] & { source: string }
 
 const props = withDefaults(
   defineProps<{
     modelValue?: string
     placeholder?: string
     styles?: string
-    envs?: { key: string; value: string; source: string }[] | null
+    envs?: Env[] | null
     focus?: boolean
     selectTextOnMount?: boolean
     environmentHighlights?: boolean
@@ -80,6 +109,7 @@ const props = withDefaults(
     autoCompleteSource?: string[]
     inspectionResults?: InspectorResult[] | undefined
     contextMenuEnabled?: boolean
+    secret?: boolean
   }>(),
   {
     modelValue: "",
@@ -93,6 +123,7 @@ const props = withDefaults(
     inspectionResult: undefined,
     inspectionResults: undefined,
     contextMenuEnabled: true,
+    secret: false,
   }
 )
 
@@ -118,10 +149,27 @@ const showSuggestionPopover = ref(false)
 const suggestionsMenu = ref<any | null>(null)
 const autoCompleteWrapper = ref<any | null>(null)
 
+const isSecret = ref(props.secret)
+
+const secretText = ref(props.modelValue)
+
+watch(
+  () => secretText.value,
+  (newVal) => {
+    if (isSecret.value) {
+      updateModelValue(newVal)
+    }
+  }
+)
+
 onClickOutside(autoCompleteWrapper, () => {
   showSuggestionPopover.value = false
 })
 
+const toggleSecret = () => {
+  isSecret.value = !isSecret.value
+}
+
 //filter autocompleteSource with unique values
 const uniqueAutoCompleteSource = computed(() => {
   if (props.autoCompleteSource) {
@@ -169,8 +217,6 @@ watch(
 )
 
 const handleKeystroke = (ev: KeyboardEvent) => {
-  if (!props.autoCompleteSource) return
-
   if (["ArrowDown", "ArrowUp", "Enter", "Escape"].includes(ev.key)) {
     ev.preventDefault()
   }
@@ -307,19 +353,28 @@ watch(
 let clipboardEv: ClipboardEvent | null = null
 let pastedValue: string | null = null
 
-const aggregateEnvs = useReadonlyStream(aggregateEnvs$, []) as Ref<
+const aggregateEnvs = useReadonlyStream(aggregateEnvsWithSecrets$, []) as Ref<
   AggregateEnvironment[]
 >
 
-const envVars = computed(() =>
-  props.envs
-    ? props.envs.map((x) => ({
-        key: x.key,
-        value: x.value,
-        sourceEnv: x.source,
-      }))
+const envVars = computed(() => {
+  return props.envs
+    ? props.envs.map((x) => {
+        if (x.secret) {
+          return {
+            key: x.key,
+            sourceEnv: "source" in x ? x.source : null,
+            value: "********",
+          }
+        }
+        return {
+          key: x.key,
+          value: x.value,
+          sourceEnv: "source" in x ? x.source : null,
+        }
+      })
     : aggregateEnvs.value
-)
+})
 
 const envTooltipPlugin = new HoppReactiveEnvPlugin(envVars, view)
 
@@ -363,17 +418,28 @@ const initView = (el: any) => {
     el.addEventListener("keyup", debounceFn)
   }
 
+  const extensions: Extension = getExtensions(props.readonly || isSecret.value)
+  view.value = new EditorView({
+    parent: el,
+    state: EditorState.create({
+      doc: props.modelValue,
+      extensions,
+    }),
+  })
+}
+
+const getExtensions = (readonly: boolean): Extension => {
   const extensions: Extension = [
     EditorView.contentAttributes.of({ "aria-label": props.placeholder }),
     EditorView.contentAttributes.of({ "data-enable-grammarly": "false" }),
     EditorView.updateListener.of((update) => {
-      if (props.readonly) {
+      if (readonly) {
         update.view.contentDOM.inputMode = "none"
       }
     }),
-    EditorState.changeFilter.of(() => !props.readonly),
+    EditorState.changeFilter.of(() => !readonly),
     inputTheme,
-    props.readonly
+    readonly
       ? EditorView.theme({
           ".cm-content": {
             caretColor: "var(--secondary-dark-color)",
@@ -384,6 +450,7 @@ const initView = (el: any) => {
         })
       : EditorView.theme({}),
     tooltips({
+      parent: document.body,
       position: "absolute",
     }),
     props.environmentHighlights ? envTooltipPlugin : [],
@@ -405,7 +472,8 @@ const initView = (el: any) => {
     ViewPlugin.fromClass(
       class {
         update(update: ViewUpdate) {
-          if (props.readonly) return
+          if (readonly) return
+
           if (update.docChanged) {
             const prevValue = clone(cachedValue.value)
 
@@ -454,14 +522,7 @@ const initView = (el: any) => {
     history(),
     keymap.of([...historyKeymap]),
   ]
-
-  view.value = new EditorView({
-    parent: el,
-    state: EditorState.create({
-      doc: props.modelValue,
-      extensions,
-    }),
-  })
+  return extensions
 }
 
 const triggerTextSelection = () => {
@@ -474,11 +535,11 @@ const triggerTextSelection = () => {
     })
   })
 }
-
 onMounted(() => {
   if (editor.value) {
     if (!view.value) initView(editor.value)
     if (props.selectTextOnMount) triggerTextSelection()
+    if (props.focus) view.value?.focus()
     platform.ui?.onCodemirrorInstanceMount?.(editor.value)
   }
 })
diff --git a/packages/hoppscotch-common/src/composables/codemirror.ts b/packages/hoppscotch-common/src/composables/codemirror.ts
index 5de426101..58f69e06a 100644
--- a/packages/hoppscotch-common/src/composables/codemirror.ts
+++ b/packages/hoppscotch-common/src/composables/codemirror.ts
@@ -4,6 +4,7 @@ import {
   ViewPlugin,
   ViewUpdate,
   placeholder,
+  tooltips,
 } from "@codemirror/view"
 import {
   Extension,
@@ -269,6 +270,7 @@ export function useCodemirror(
       basicSetup,
       baseTheme,
       syntaxHighlighting(baseHighlightStyle, { fallback: true }),
+
       ViewPlugin.fromClass(
         class {
           update(update: ViewUpdate) {
@@ -318,6 +320,7 @@ export function useCodemirror(
           }
         }
       ),
+
       EditorView.domEventHandlers({
         scroll(event) {
           if (event.target && options.contextMenuEnabled) {
@@ -359,6 +362,10 @@ export function useCodemirror(
           run: indentLess,
         },
       ]),
+      tooltips({
+        parent: document.body,
+        position: "absolute",
+      }),
       EditorView.contentAttributes.of({ "data-enable-grammarly": "false" }),
       additionalExts.of(options.additionalExts ?? []),
     ]
diff --git a/packages/hoppscotch-common/src/helpers/RequestRunner.ts b/packages/hoppscotch-common/src/helpers/RequestRunner.ts
index a653226f6..0ca299051 100644
--- a/packages/hoppscotch-common/src/helpers/RequestRunner.ts
+++ b/packages/hoppscotch-common/src/helpers/RequestRunner.ts
@@ -30,6 +30,13 @@ import { HoppRESTResponse } from "./types/HoppRESTResponse"
 import { HoppTestData, HoppTestResult } from "./types/HoppTestResult"
 import { getEffectiveRESTRequest } from "./utils/EffectiveURL"
 import { isJSONContentType } from "./utils/contenttypes"
+import {
+  SecretEnvironmentService,
+  SecretVariable,
+} from "~/services/secret-environment.service"
+import { getService } from "~/modules/dioc"
+
+const secretEnvironmentService = getService(SecretEnvironmentService)
 
 const getTestableBody = (
   res: HoppRESTResponse & { type: "success" | "fail" }
@@ -58,15 +65,63 @@ const getTestableBody = (
   return x
 }
 
-const combineEnvVariables = (env: {
+const combineEnvVariables = (envs: {
   global: Environment["variables"]
   selected: Environment["variables"]
-}) => [...env.selected, ...env.global]
+}) => [...envs.selected, ...envs.global]
 
 export const executedResponses$ = new Subject<
   HoppRESTResponse & { type: "success" | "fail " }
 >()
 
+/**
+ * Used to update the environment schema with the secret variables
+ * and store the secret variable values in the secret environment service
+ * @param envs The environment variables to update
+ * @param type Whether the environment variables are global or selected
+ * @returns the updated environment variables
+ */
+const updateEnvironmentsWithSecret = (
+  envs: Environment["variables"] &
+    {
+      secret: true
+      value: string | undefined
+      key: string
+    }[],
+  type: "global" | "selected"
+) => {
+  const currentEnvID =
+    type === "selected" ? getCurrentEnvironment().id : "Global"
+
+  const updatedSecretEnvironments: SecretVariable[] = []
+
+  const updatedEnv = pipe(
+    envs,
+    A.mapWithIndex((index, e) => {
+      if (e.secret) {
+        updatedSecretEnvironments.push({
+          key: e.key,
+          value: e.value ?? "",
+          varIndex: index,
+        })
+
+        // delete the value from the environment
+        // so that it doesn't get saved in the environment
+        delete e.value
+        return e
+      }
+      return e
+    })
+  )
+  if (currentEnvID) {
+    secretEnvironmentService.addSecretEnvironment(
+      currentEnvID,
+      updatedSecretEnvironments
+    )
+  }
+  return updatedEnv
+}
+
 export function runRESTRequest$(
   tab: Ref<HoppTab<HoppRESTDocument>>
 ): [
@@ -154,15 +209,36 @@ export function runRESTRequest$(
           )
 
           if (E.isRight(runResult)) {
+            const updatedGlobalEnvVariables = updateEnvironmentsWithSecret(
+              cloneDeep(runResult.right.envs.global),
+              "global"
+            )
+
+            const updatedSelectedEnvVariables = updateEnvironmentsWithSecret(
+              cloneDeep(runResult.right.envs.selected),
+              "selected"
+            )
+
             // set the response in the tab so that multiple tabs can run request simultaneously
             tab.value.document.response = res
 
-            tab.value.document.testResults = translateToSandboxTestResults(
-              runResult.right
+            const updatedRunResult = {
+              ...runResult.right,
+              envs: {
+                global: updatedGlobalEnvVariables,
+                selected: updatedSelectedEnvVariables,
+              },
+            }
+
+            tab.value.document.testResults =
+              translateToSandboxTestResults(updatedRunResult)
+
+            setGlobalEnvVariables(
+              updateEnvironmentsWithSecret(
+                runResult.right.envs.global,
+                "global"
+              )
             )
-
-            setGlobalEnvVariables(runResult.right.envs.global)
-
             if (
               environmentsStore.value.selectedEnvironmentIndex.type === "MY_ENV"
             ) {
@@ -173,8 +249,10 @@ export function runRESTRequest$(
               updateEnvironment(
                 environmentsStore.value.selectedEnvironmentIndex.index,
                 {
-                  ...env,
-                  variables: runResult.right.envs.selected,
+                  name: env.name,
+                  v: 1,
+                  id: env.id ?? "",
+                  variables: updatedRunResult.envs.selected,
                 }
               )
             } else if (
@@ -186,7 +264,7 @@ export function runRESTRequest$(
               })
               pipe(
                 updateTeamEnvironment(
-                  JSON.stringify(runResult.right.envs.selected),
+                  JSON.stringify(updatedRunResult.envs.selected),
                   environmentsStore.value.selectedEnvironmentIndex.teamEnvID,
                   env.name
                 )
@@ -275,7 +353,6 @@ function translateToSandboxTestResults(
 
   const globals = cloneDeep(getGlobalVariables())
   const env = getCurrentEnvironment()
-
   return {
     description: "",
     expectResults: testDesc.tests.expectResults,
diff --git a/packages/hoppscotch-common/src/helpers/actions.ts b/packages/hoppscotch-common/src/helpers/actions.ts
index 05fd1909b..cef62d130 100644
--- a/packages/hoppscotch-common/src/helpers/actions.ts
+++ b/packages/hoppscotch-common/src/helpers/actions.ts
@@ -5,7 +5,7 @@
 import { Ref, onBeforeUnmount, onMounted, reactive, watch } from "vue"
 import { BehaviorSubject } from "rxjs"
 import { HoppRESTDocument } from "./rest/document"
-import { HoppGQLRequest, HoppRESTRequest } from "@hoppscotch/data"
+import { Environment, HoppGQLRequest, HoppRESTRequest } from "@hoppscotch/data"
 import { RESTOptionTabs } from "~/components/http/RequestOptions.vue"
 import { HoppGQLSaveContext } from "./graphql/document"
 import { GQLOptionTabs } from "~/components/graphql/RequestOptions.vue"
@@ -43,6 +43,7 @@ export type HoppAction =
   | "modals.environment.new" // Add new environment
   | "modals.environment.delete-selected" // Delete Selected Environment
   | "modals.my.environment.edit" // Edit current personal environment
+  | "modals.global.environment.update" // Update global environment
   | "modals.team.environment.edit" // Edit current team environment
   | "modals.team.new" // Add new team
   | "modals.team.edit" // Edit selected team
@@ -93,13 +94,19 @@ type HoppActionArgsMap = {
     }
     text: string | null
   }
+  "modals.global.environment.update": {
+    variables?: Environment["variables"]
+    isSecret?: boolean
+  }
   "modals.my.environment.edit": {
     envName: string
     variableName?: string
+    isSecret?: boolean
   }
   "modals.team.environment.edit": {
     envName: string
     variableName?: string
+    isSecret?: boolean
   }
   "modals.team.delete": {
     teamId: string
diff --git a/packages/hoppscotch-common/src/helpers/backend/gql/mutations/CreateTeamEnvironment.graphql b/packages/hoppscotch-common/src/helpers/backend/gql/mutations/CreateTeamEnvironment.graphql
index efaba9855..2e72455b9 100644
--- a/packages/hoppscotch-common/src/helpers/backend/gql/mutations/CreateTeamEnvironment.graphql
+++ b/packages/hoppscotch-common/src/helpers/backend/gql/mutations/CreateTeamEnvironment.graphql
@@ -1,7 +1,12 @@
-mutation CreateTeamEnvironment($variables: String!,$teamID: ID!,$name: String!){
-  createTeamEnvironment( variables: $variables ,teamID: $teamID ,name: $name){
+mutation CreateTeamEnvironment(
+  $variables: String!
+  $teamID: ID!
+  $name: String!
+) {
+  createTeamEnvironment(variables: $variables, teamID: $teamID, name: $name) {
     variables
     name
     teamID
+    id
   }
-}
\ No newline at end of file
+}
diff --git a/packages/hoppscotch-common/src/helpers/editor/extensions/HoppEnvironment.ts b/packages/hoppscotch-common/src/helpers/editor/extensions/HoppEnvironment.ts
index 8c6fda20d..c949595e5 100644
--- a/packages/hoppscotch-common/src/helpers/editor/extensions/HoppEnvironment.ts
+++ b/packages/hoppscotch-common/src/helpers/editor/extensions/HoppEnvironment.ts
@@ -12,8 +12,8 @@ import { parseTemplateStringE } from "@hoppscotch/data"
 import { StreamSubscriberFunc } from "@composables/stream"
 import {
   AggregateEnvironment,
-  aggregateEnvs$,
-  getAggregateEnvs,
+  aggregateEnvsWithSecrets$,
+  getAggregateEnvsWithSecrets,
   getSelectedEnvironmentType,
 } from "~/newstore/environments"
 import { invokeAction } from "~/helpers/actions"
@@ -66,7 +66,16 @@ const cursorTooltipField = (aggregateEnvs: AggregateEnvironment[]) =>
 
       const envName = tooltipEnv?.sourceEnv ?? "Choose an Environment"
 
-      const envValue = tooltipEnv?.value ?? "Not found"
+      let envValue = "Not Found"
+
+      if (!tooltipEnv?.secret && tooltipEnv?.value) envValue = tooltipEnv.value
+      else if (tooltipEnv?.secret && tooltipEnv.value) {
+        envValue = "******"
+      } else if (!tooltipEnv?.sourceEnv) {
+        envValue = "Not Found"
+      } else if (!tooltipEnv?.value) {
+        envValue = "Empty"
+      }
 
       const result = parseTemplateStringE(envValue, aggregateEnvs)
 
@@ -89,6 +98,7 @@ const cursorTooltipField = (aggregateEnvs: AggregateEnvironment[]) =>
           invokeAction(`modals.${action}.environment.edit`, {
             envName,
             variableName: parsedEnvKey,
+            isSecret: tooltipEnv?.secret,
           })
         })
         editIcon.innerHTML = `<span class="inline-flex items-center justify-center my-1">${IconEdit}</span>`
@@ -171,9 +181,9 @@ export class HoppEnvironmentPlugin {
     subscribeToStream: StreamSubscriberFunc,
     private editorView: Ref<EditorView | undefined>
   ) {
-    this.envs = getAggregateEnvs()
+    this.envs = getAggregateEnvsWithSecrets()
 
-    subscribeToStream(aggregateEnvs$, (envs) => {
+    subscribeToStream(aggregateEnvsWithSecrets$, (envs) => {
       this.envs = envs
 
       this.editorView.value?.dispatch({
diff --git a/packages/hoppscotch-common/src/helpers/import-export/export/environment.ts b/packages/hoppscotch-common/src/helpers/import-export/export/environment.ts
index 82c812e57..22b6dff58 100644
--- a/packages/hoppscotch-common/src/helpers/import-export/export/environment.ts
+++ b/packages/hoppscotch-common/src/helpers/import-export/export/environment.ts
@@ -12,8 +12,6 @@ const getEnvironmentJson = (
       ? cloneDeep(environmentObj.environment)
       : cloneDeep(environmentObj)
 
-  delete newEnvironment.id
-
   const environmentId =
     environmentIndex || environmentIndex === 0
       ? environmentIndex
diff --git a/packages/hoppscotch-common/src/helpers/import-export/import/hoppEnv.ts b/packages/hoppscotch-common/src/helpers/import-export/import/hoppEnv.ts
index bf58fc301..e4d8c6efa 100644
--- a/packages/hoppscotch-common/src/helpers/import-export/import/hoppEnv.ts
+++ b/packages/hoppscotch-common/src/helpers/import-export/import/hoppEnv.ts
@@ -1,22 +1,13 @@
-import * as TE from "fp-ts/TaskEither"
 import * as O from "fp-ts/Option"
+import * as TE from "fp-ts/TaskEither"
+import { entityReference } from "verzod"
 
-import { IMPORTER_INVALID_FILE_FORMAT } from "."
 import { safeParseJSON } from "~/helpers/functional/json"
+import { IMPORTER_INVALID_FILE_FORMAT } from "."
 
+import { Environment } from "@hoppscotch/data"
 import { z } from "zod"
 
-const hoppEnvSchema = z.object({
-  id: z.string().optional(),
-  name: z.string(),
-  variables: z.array(
-    z.object({
-      key: z.string(),
-      value: z.string(),
-    })
-  ),
-})
-
 export const hoppEnvImporter = (content: string) => {
   const parsedContent = safeParseJSON(content, true)
 
@@ -25,7 +16,9 @@ export const hoppEnvImporter = (content: string) => {
     return TE.left(IMPORTER_INVALID_FILE_FORMAT)
   }
 
-  const validationResult = z.array(hoppEnvSchema).safeParse(parsedContent.value)
+  const validationResult = z
+    .array(entityReference(Environment))
+    .safeParse(parsedContent.value)
 
   if (!validationResult.success) {
     return TE.left(IMPORTER_INVALID_FILE_FORMAT)
diff --git a/packages/hoppscotch-common/src/helpers/import-export/import/insomniaEnv.ts b/packages/hoppscotch-common/src/helpers/import-export/import/insomniaEnv.ts
index 19c743109..ba3ce36c2 100644
--- a/packages/hoppscotch-common/src/helpers/import-export/import/insomniaEnv.ts
+++ b/packages/hoppscotch-common/src/helpers/import-export/import/insomniaEnv.ts
@@ -4,8 +4,9 @@ import * as O from "fp-ts/Option"
 import { IMPORTER_INVALID_FILE_FORMAT } from "."
 
 import { z } from "zod"
-import { Environment } from "@hoppscotch/data"
+import { NonSecretEnvironment } from "@hoppscotch/data"
 import { safeParseJSONOrYAML } from "~/helpers/functional/yaml"
+import { uniqueId } from "lodash-es"
 
 const insomniaResourcesSchema = z.object({
   resources: z.array(
@@ -56,16 +57,18 @@ export const insomniaEnvImporter = (content: string) => {
       return { ...envResource, data: stringifiedData }
     })
 
-  const environments: Environment[] = []
+  const environments: NonSecretEnvironment[] = []
 
   insomniaEnvs.forEach((insomniaEnv) => {
     const parsedInsomniaEnv = insomniaEnvSchema.safeParse(insomniaEnv)
 
     if (parsedInsomniaEnv.success) {
-      const environment: Environment = {
+      const environment: NonSecretEnvironment = {
+        id: uniqueId(),
+        v: 1,
         name: parsedInsomniaEnv.data.name,
         variables: Object.entries(parsedInsomniaEnv.data.data).map(
-          ([key, value]) => ({ key, value })
+          ([key, value]) => ({ key, value, secret: false })
         ),
       }
 
diff --git a/packages/hoppscotch-common/src/helpers/import-export/import/postmanEnv.ts b/packages/hoppscotch-common/src/helpers/import-export/import/postmanEnv.ts
index 2978a501e..428db3c6d 100644
--- a/packages/hoppscotch-common/src/helpers/import-export/import/postmanEnv.ts
+++ b/packages/hoppscotch-common/src/helpers/import-export/import/postmanEnv.ts
@@ -6,6 +6,7 @@ import { safeParseJSON } from "~/helpers/functional/json"
 
 import { z } from "zod"
 import { Environment } from "@hoppscotch/data"
+import { uniqueId } from "lodash-es"
 
 const postmanEnvSchema = z.object({
   name: z.string(),
@@ -34,12 +35,14 @@ export const postmanEnvImporter = (content: string) => {
   const postmanEnv = validationResult.data
 
   const environment: Environment = {
+    id: uniqueId(),
+    v: 1,
     name: postmanEnv.name,
     variables: [],
   }
 
   postmanEnv.values.forEach(({ key, value }) =>
-    environment.variables.push({ key, value })
+    environment.variables.push({ key, value, secret: false })
   )
 
   return TE.right(environment)
diff --git a/packages/hoppscotch-common/src/helpers/preRequest.ts b/packages/hoppscotch-common/src/helpers/preRequest.ts
index 07b96bf8c..562ffaefc 100644
--- a/packages/hoppscotch-common/src/helpers/preRequest.ts
+++ b/packages/hoppscotch-common/src/helpers/preRequest.ts
@@ -8,11 +8,71 @@ import {
   getGlobalVariables,
 } from "~/newstore/environments"
 import { TestResult } from "@hoppscotch/js-sandbox"
+import { getService } from "~/modules/dioc"
+import { SecretEnvironmentService } from "~/services/secret-environment.service"
 
-export const getCombinedEnvVariables = () => ({
-  global: cloneDeep(getGlobalVariables()),
-  selected: cloneDeep(getCurrentEnvironment().variables),
-})
+const secretEnvironmentService = getService(SecretEnvironmentService)
+
+const unsecretEnvironments = (
+  global: Environment["variables"],
+  selected: Environment
+) => {
+  const resolvedGlobalWithSecrets = global.map((globalVar, index) => {
+    const secretVar = secretEnvironmentService.getSecretEnvironmentVariable(
+      "Global",
+      index
+    )
+    if (secretVar) {
+      return {
+        ...globalVar,
+        value: secretVar.value,
+      }
+    } else if (!("value" in globalVar) || !globalVar.value) {
+      return {
+        ...globalVar,
+        value: "",
+      }
+    }
+    return globalVar
+  })
+
+  const resolvedSelectedWithSecrets = selected.variables.map(
+    (selectedVar, index) => {
+      const secretVar = secretEnvironmentService.getSecretEnvironmentVariable(
+        selected.id,
+        index
+      )
+      if (secretVar) {
+        return {
+          ...selectedVar,
+          value: secretVar.value,
+        }
+      } else if (!("value" in selectedVar) || !selectedVar.value) {
+        return {
+          ...selectedVar,
+          value: "",
+        }
+      }
+      return selectedVar
+    }
+  )
+
+  return {
+    global: resolvedGlobalWithSecrets,
+    selected: resolvedSelectedWithSecrets,
+  }
+}
+
+export const getCombinedEnvVariables = () => {
+  const reformedVars = unsecretEnvironments(
+    getGlobalVariables(),
+    getCurrentEnvironment()
+  )
+  return {
+    global: cloneDeep(reformedVars.global),
+    selected: cloneDeep(reformedVars.selected),
+  }
+}
 
 export const getFinalEnvsFromPreRequest = (
   script: string,
diff --git a/packages/hoppscotch-common/src/helpers/teams/TeamEnvironmentAdapter.ts b/packages/hoppscotch-common/src/helpers/teams/TeamEnvironmentAdapter.ts
index e8aa29fe7..98bb0dec9 100644
--- a/packages/hoppscotch-common/src/helpers/teams/TeamEnvironmentAdapter.ts
+++ b/packages/hoppscotch-common/src/helpers/teams/TeamEnvironmentAdapter.ts
@@ -118,6 +118,8 @@ export default class TeamEnvironmentAdapter {
               id: x.id,
               teamID: x.teamID,
               environment: {
+                v: 1,
+                id: x.id,
                 name: x.name,
                 variables: JSON.parse(x.variables),
               },
@@ -196,6 +198,8 @@ export default class TeamEnvironmentAdapter {
                 id: x.id,
                 teamID: x.teamID,
                 environment: {
+                  v: 1,
+                  id: x.id,
                   name: x.name,
                   variables: JSON.parse(x.variables),
                 },
@@ -249,6 +253,8 @@ export default class TeamEnvironmentAdapter {
                 id: x.id,
                 teamID: x.teamID,
                 environment: {
+                  v: 1,
+                  id: x.id,
                   name: x.name,
                   variables: JSON.parse(x.variables),
                 },
diff --git a/packages/hoppscotch-common/src/helpers/utils/EffectiveURL.ts b/packages/hoppscotch-common/src/helpers/utils/EffectiveURL.ts
index 97b447da3..d287976ee 100644
--- a/packages/hoppscotch-common/src/helpers/utils/EffectiveURL.ts
+++ b/packages/hoppscotch-common/src/helpers/utils/EffectiveURL.ts
@@ -45,7 +45,8 @@ export interface EffectiveHoppRESTRequest extends HoppRESTRequest {
 export const getComputedAuthHeaders = (
   envVars: Environment["variables"],
   req?: HoppRESTRequest,
-  auth?: HoppRESTRequest["auth"]
+  auth?: HoppRESTRequest["auth"],
+  parse = true
 ) => {
   const request = auth ? { auth: auth ?? { authActive: false } } : req
   // If Authorization header is also being user-defined, that takes priority
@@ -60,8 +61,12 @@ export const getComputedAuthHeaders = (
 
   // TODO: Support a better b64 implementation than btoa ?
   if (request.auth.authType === "basic") {
-    const username = parseTemplateString(request.auth.username, envVars)
-    const password = parseTemplateString(request.auth.password, envVars)
+    const username = parse
+      ? parseTemplateString(request.auth.username, envVars)
+      : request.auth.username
+    const password = parse
+      ? parseTemplateString(request.auth.password, envVars)
+      : request.auth.password
 
     headers.push({
       active: true,
@@ -75,7 +80,11 @@ export const getComputedAuthHeaders = (
     headers.push({
       active: true,
       key: "Authorization",
-      value: `Bearer ${parseTemplateString(request.auth.token, envVars)}`,
+      value: `Bearer ${
+        parse
+          ? parseTemplateString(request.auth.token, envVars)
+          : request.auth.token
+      }`,
     })
   } else if (request.auth.authType === "api-key") {
     const { key, addTo } = request.auth
@@ -83,7 +92,9 @@ export const getComputedAuthHeaders = (
       headers.push({
         active: true,
         key: parseTemplateString(key, envVars),
-        value: parseTemplateString(request.auth.value ?? "", envVars),
+        value: parse
+          ? parseTemplateString(request.auth.value ?? "", envVars)
+          : request.auth.value ?? "",
       })
     }
   }
@@ -133,10 +144,11 @@ export type ComputedHeader = {
  */
 export const getComputedHeaders = (
   req: HoppRESTRequest,
-  envVars: Environment["variables"]
+  envVars: Environment["variables"],
+  parse = true
 ): ComputedHeader[] => {
   return [
-    ...getComputedAuthHeaders(envVars, req).map((header) => ({
+    ...getComputedAuthHeaders(envVars, req, undefined, parse).map((header) => ({
       source: "auth" as const,
       header,
     })),
diff --git a/packages/hoppscotch-common/src/newstore/environments.ts b/packages/hoppscotch-common/src/newstore/environments.ts
index e92c3eadf..4659c8144 100644
--- a/packages/hoppscotch-common/src/newstore/environments.ts
+++ b/packages/hoppscotch-common/src/newstore/environments.ts
@@ -1,10 +1,12 @@
 import { Environment } from "@hoppscotch/data"
-import { cloneDeep, isEqual } from "lodash-es"
+import { cloneDeep, isEqual, uniqueId } from "lodash-es"
 import { combineLatest, Observable } from "rxjs"
 import { distinctUntilChanged, map, pluck } from "rxjs/operators"
+import { getService } from "~/modules/dioc"
 import DispatchingStore, {
   defineDispatchers,
 } from "~/newstore/DispatchingStore"
+import { SecretEnvironmentService } from "~/services/secret-environment.service"
 
 export type SelectedEnvironmentIndex =
   | { type: "NO_ENV_SELECTED" }
@@ -19,6 +21,8 @@ export type SelectedEnvironmentIndex =
 const defaultEnvironmentsState = {
   environments: [
     {
+      v: 1,
+      id: uniqueId(),
       name: "My Environment Variables",
       variables: [],
     },
@@ -33,6 +37,8 @@ const defaultEnvironmentsState = {
   } as SelectedEnvironmentIndex,
 }
 
+const secretEnvironmentService = getService(SecretEnvironmentService)
+
 type EnvironmentStore = typeof defaultEnvironmentsState
 
 const dispatchers = defineDispatchers({
@@ -88,10 +94,13 @@ const dispatchers = defineDispatchers({
         envID
           ? {
               id: envID,
+              v: 1,
               name,
               variables,
             }
           : {
+              v: 1,
+              id: "",
               name,
               variables,
             },
@@ -109,14 +118,12 @@ const dispatchers = defineDispatchers({
       }
     }
 
-    // remove the id, because this is a new environment & it will get its own id when syncing
-    delete newEnvironment["id"]
-
     return {
       environments: [
         ...environments,
         {
           ...cloneDeep(newEnvironment),
+          id: uniqueId(),
           name: `${newEnvironment.name} - Duplicate`,
         },
       ],
@@ -184,14 +191,19 @@ const dispatchers = defineDispatchers({
   },
   addEnvironmentVariable(
     { environments }: EnvironmentStore,
-    { envIndex, key, value }: { envIndex: number; key: string; value: string }
+    {
+      envIndex,
+      key,
+      value,
+      secret,
+    }: { envIndex: number; key: string; value: string; secret: boolean }
   ) {
     return {
       environments: environments.map((env, index) =>
         index === envIndex
           ? {
               ...env,
-              variables: [...env.variables, { key, value }],
+              variables: [...env.variables, { key, value, secret }],
             }
           : env
       ),
@@ -219,7 +231,10 @@ const dispatchers = defineDispatchers({
     {
       envIndex,
       vars,
-    }: { envIndex: number; vars: { key: string; value: string }[] }
+    }: {
+      envIndex: number
+      vars: { key: string; value: string; secret: boolean }[]
+    }
   ) {
     return {
       environments: environments.map((env, index) =>
@@ -253,7 +268,7 @@ const dispatchers = defineDispatchers({
               ...env,
               variables: env.variables.map((v, vIndex) =>
                 vIndex === variableIndex
-                  ? { key: updatedKey, value: updatedValue }
+                  ? { key: updatedKey, value: updatedValue, secret: v.secret }
                   : v
               ),
             }
@@ -343,6 +358,8 @@ export const currentEnvironment$: Observable<Environment | undefined> =
       if (selectedEnvironmentIndex.type === "NO_ENV_SELECTED") {
         const env: Environment = {
           name: "No environment",
+          v: 1,
+          id: "",
           variables: [],
         }
         return env
@@ -356,6 +373,7 @@ export const currentEnvironment$: Observable<Environment | undefined> =
 export type AggregateEnvironment = {
   key: string
   value: string
+  secret: boolean
   sourceEnv: string
 }
 
@@ -370,11 +388,11 @@ export const aggregateEnvs$: Observable<AggregateEnvironment[]> = combineLatest(
   map(([selectedEnv, globalVars]) => {
     const results: AggregateEnvironment[] = []
 
-    selectedEnv?.variables.forEach(({ key, value }) =>
-      results.push({ key, value, sourceEnv: selectedEnv.name })
+    selectedEnv?.variables.forEach(({ key, value, secret }) =>
+      results.push({ key, value, secret, sourceEnv: selectedEnv.name })
     )
-    globalVars.forEach(({ key, value }) =>
-      results.push({ key, value, sourceEnv: "Global" })
+    globalVars.forEach(({ key, value, secret }) =>
+      results.push({ key, value, secret, sourceEnv: "Global" })
     )
 
     return results
@@ -384,32 +402,129 @@ export const aggregateEnvs$: Observable<AggregateEnvironment[]> = combineLatest(
 
 export function getAggregateEnvs() {
   const currentEnv = getCurrentEnvironment()
-
   return [
-    ...currentEnv.variables.map(
-      (x) =>
-        <AggregateEnvironment>{
-          key: x.key,
-          value: x.value,
-          sourceEnv: currentEnv.name,
-        }
-    ),
-    ...getGlobalVariables().map(
-      (x) =>
-        <AggregateEnvironment>{
-          key: x.key,
-          value: x.value,
-          sourceEnv: "Global",
-        }
-    ),
+    ...currentEnv.variables.map((x) => {
+      let value
+      if (!x.secret) {
+        value = x.value
+      }
+
+      return <AggregateEnvironment>{
+        key: x.key,
+        value,
+        secret: x.secret,
+        sourceEnv: currentEnv.name,
+      }
+    }),
+    ...getGlobalVariables().map((x) => {
+      let value
+      if (!x.secret) {
+        value = x.value
+      }
+      return <AggregateEnvironment>{
+        key: x.key,
+        value,
+        secret: x.secret,
+        sourceEnv: "Global",
+      }
+    }),
   ]
 }
 
+export function getAggregateEnvsWithSecrets() {
+  const currentEnv = getCurrentEnvironment()
+  return [
+    ...currentEnv.variables.map((x, index) => {
+      let value
+      if (x.secret) {
+        value = secretEnvironmentService.getSecretEnvironmentVariableValue(
+          currentEnv.id,
+          index
+        )
+      } else {
+        value = x.value
+      }
+
+      return <AggregateEnvironment>{
+        key: x.key,
+        value,
+        secret: x.secret,
+        sourceEnv: currentEnv.name,
+      }
+    }),
+    ...getGlobalVariables().map((x, index) => {
+      let value
+      if (x.secret) {
+        value = secretEnvironmentService.getSecretEnvironmentVariableValue(
+          "Global",
+          index
+        )
+      } else {
+        value = x.value
+      }
+      return <AggregateEnvironment>{
+        key: x.key,
+        value,
+        secret: x.secret,
+        sourceEnv: "Global",
+      }
+    }),
+  ]
+}
+
+export const aggregateEnvsWithSecrets$: Observable<AggregateEnvironment[]> =
+  combineLatest([currentEnvironment$, globalEnv$]).pipe(
+    map(([selectedEnv, globalVars]) => {
+      const results: AggregateEnvironment[] = []
+
+      selectedEnv?.variables.map((x, index) => {
+        let value
+        if (x.secret) {
+          value = secretEnvironmentService.getSecretEnvironmentVariableValue(
+            selectedEnv.id,
+            index
+          )
+        } else {
+          value = x.value
+        }
+        results.push({
+          key: x.key,
+          value: value ?? "",
+          secret: x.secret,
+          sourceEnv: selectedEnv.name,
+        })
+      })
+
+      globalVars.map((x, index) => {
+        let value
+        if (x.secret) {
+          value = secretEnvironmentService.getSecretEnvironmentVariableValue(
+            "Global",
+            index
+          )
+        } else {
+          value = x.value
+        }
+        results.push({
+          key: x.key,
+          value: value ?? "",
+          secret: x.secret,
+          sourceEnv: "Global",
+        })
+      })
+
+      return results
+    }),
+    distinctUntilChanged(isEqual)
+  )
+
 export function getCurrentEnvironment(): Environment {
   if (
     environmentsStore.value.selectedEnvironmentIndex.type === "NO_ENV_SELECTED"
   ) {
     return {
+      v: 1,
+      id: "",
       name: "No environment",
       variables: [],
     }
@@ -589,7 +704,7 @@ export function updateEnvironment(envIndex: number, updatedEnv: Environment) {
 
 export function setEnvironmentVariables(
   envIndex: number,
-  vars: { key: string; value: string }[]
+  vars: { key: string; value: string; secret: boolean }[]
 ) {
   environmentsStore.dispatch({
     dispatcher: "setEnvironmentVariables",
@@ -602,7 +717,7 @@ export function setEnvironmentVariables(
 
 export function addEnvironmentVariable(
   envIndex: number,
-  { key, value }: { key: string; value: string }
+  { key, value, secret }: { key: string; value: string; secret: boolean }
 ) {
   environmentsStore.dispatch({
     dispatcher: "addEnvironmentVariable",
@@ -610,6 +725,7 @@ export function addEnvironmentVariable(
       envIndex,
       key,
       value,
+      secret,
     },
   })
 }
diff --git a/packages/hoppscotch-common/src/services/__tests__/secret-environment.service.spec.ts b/packages/hoppscotch-common/src/services/__tests__/secret-environment.service.spec.ts
new file mode 100644
index 000000000..a39589576
--- /dev/null
+++ b/packages/hoppscotch-common/src/services/__tests__/secret-environment.service.spec.ts
@@ -0,0 +1,194 @@
+import { describe, expect, it, beforeEach } from "vitest"
+import { TestContainer } from "dioc/testing"
+import { SecretEnvironmentService } from "../secret-environment.service"
+
+describe("SecretEnvironmentService", () => {
+  let container: TestContainer
+  let service: SecretEnvironmentService
+
+  beforeEach(() => {
+    container = new TestContainer()
+    service = container.bind(SecretEnvironmentService)
+  })
+
+  describe("addSecretEnvironment", () => {
+    it("should add a new secret environment with the provided ID and secret variables", () => {
+      const id = "testEnvironment"
+      const secretVars = [{ key: "key1", value: "value1", varIndex: 1 }]
+
+      service.addSecretEnvironment(id, secretVars)
+
+      expect(service.secretEnvironments.get(id)).toEqual(secretVars)
+    })
+  })
+
+  describe("getSecretEnvironment", () => {
+    it("should return the secret variables of the specified environment", () => {
+      const id = "testEnvironment"
+      const secretVars = [{ key: "key1", value: "value1", varIndex: 1 }]
+
+      service.secretEnvironments.set(id, secretVars)
+
+      expect(service.getSecretEnvironment(id)).toEqual(secretVars)
+    })
+
+    it("should return undefined if the specified environment does not exist", () => {
+      const id = "nonExistentEnvironment"
+
+      expect(service.getSecretEnvironment(id)).toBeUndefined()
+    })
+  })
+
+  describe("getSecretEnvironmentVariable", () => {
+    it("should return the specified secret environment variable", () => {
+      const id = "testEnvironment"
+      const secretVars = [{ key: "key1", value: "value1", varIndex: 1 }]
+
+      service.secretEnvironments.set(id, secretVars)
+
+      const result = service.getSecretEnvironmentVariable(id, 1)
+
+      expect(result).toEqual(secretVars[0])
+    })
+
+    it("should return undefined if the specified variable does not exist", () => {
+      const id = "testEnvironment"
+      const secretVars = [{ key: "key1", value: "value1", varIndex: 1 }]
+
+      service.secretEnvironments.set(id, secretVars)
+
+      const result = service.getSecretEnvironmentVariable(id, 2)
+
+      expect(result).toBeUndefined()
+    })
+
+    it("should return undefined if the specified environment does not exist", () => {
+      const id = "nonExistentEnvironment"
+
+      const result = service.getSecretEnvironmentVariable(id, 1)
+
+      expect(result).toBeUndefined()
+    })
+  })
+
+  describe("getSecretEnvironmentVariableValue", () => {
+    it("should return the value of the specified secret environment variable", () => {
+      const id = "testEnvironment"
+      const secretVars = [{ key: "key1", value: "value1", varIndex: 1 }]
+
+      service.secretEnvironments.set(id, secretVars)
+
+      const result = service.getSecretEnvironmentVariableValue(id, 1)
+
+      expect(result).toEqual(secretVars[0].value)
+    })
+
+    it("should return undefined if the specified variable does not exist", () => {
+      const id = "testEnvironment"
+      const secretVars = [{ key: "key1", value: "value1", varIndex: 1 }]
+
+      service.secretEnvironments.set(id, secretVars)
+
+      const result = service.getSecretEnvironmentVariableValue(id, 2)
+
+      expect(result).toBeUndefined()
+    })
+
+    it("should return undefined if the specified environment does not exist", () => {
+      const id = "nonExistentEnvironment"
+
+      const result = service.getSecretEnvironmentVariableValue(id, 1)
+
+      expect(result).toBeUndefined()
+    })
+  })
+
+  describe("loadSecretEnvironmentsFromPersistedState", () => {
+    it("should load secret environments from the persisted state", () => {
+      const persistedState = {
+        testEnvironment: [{ key: "key1", value: "value1", varIndex: 1 }],
+      }
+
+      service.loadSecretEnvironmentsFromPersistedState(persistedState)
+
+      expect(service.secretEnvironments.size).toBe(1)
+      expect(service.secretEnvironments.get("testEnvironment")).toEqual([
+        { key: "key1", value: "value1", varIndex: 1 },
+      ])
+    })
+  })
+
+  describe("deleteSecretEnvironment", () => {
+    it("should delete the specified secret environment", () => {
+      const id = "testEnvironment"
+      const secretVars = [{ key: "key1", value: "value1", varIndex: 1 }]
+
+      service.secretEnvironments.set(id, secretVars)
+
+      service.deleteSecretEnvironment(id)
+
+      expect(service.secretEnvironments.has(id)).toBe(false)
+    })
+  })
+
+  describe("removeSecretEnvironmentVariable", () => {
+    it("should remove the specified secret environment variable", () => {
+      const id = "testEnvironment"
+      const secretVars = [
+        { key: "key1", value: "value1", varIndex: 1 },
+        { key: "key2", value: "value2", varIndex: 2 },
+      ]
+
+      service.secretEnvironments.set(id, secretVars)
+
+      service.removeSecretEnvironmentVariable(id, 1)
+
+      expect(service.secretEnvironments.get(id)).toEqual([
+        { key: "key2", value: "value2", varIndex: 2 },
+      ])
+    })
+
+    it("should do nothing if the specified variable does not exist", () => {
+      const id = "testEnvironment"
+      const secretVars = [{ key: "key1", value: "value1", varIndex: 1 }]
+
+      service.secretEnvironments.set(id, secretVars)
+
+      service.removeSecretEnvironmentVariable(id, 2)
+
+      expect(service.secretEnvironments.get(id)).toEqual(secretVars)
+    })
+  })
+
+  describe("updateSecretEnvironmentID", () => {
+    it("should update the ID of the specified secret environment", () => {
+      const oldID = "oldEnvironment"
+      const newID = "newEnvironment"
+      const secretVars = [{ key: "key1", value: "value1", varIndex: 1 }]
+
+      service.secretEnvironments.set(oldID, secretVars)
+
+      service.updateSecretEnvironmentID(oldID, newID)
+
+      expect(service.secretEnvironments.has(oldID)).toBe(false)
+      expect(service.secretEnvironments.get(newID)).toEqual(secretVars)
+    })
+  })
+
+  describe("persistableSecretEnvironments", () => {
+    it("should return a record of secret environments suitable for persistence", () => {
+      const secretVars = [
+        { key: "key1", value: "value1", varIndex: 1 },
+        { key: "key2", value: "value2", varIndex: 2 },
+      ]
+
+      service.secretEnvironments.set("environment1", secretVars)
+
+      const persistedState = service.persistableSecretEnvironments.value
+
+      expect(persistedState).toEqual({
+        environment1: secretVars,
+      })
+    })
+  })
+})
diff --git a/packages/hoppscotch-common/src/services/inspection/inspectors/__tests__/environment.inspector.spec.ts b/packages/hoppscotch-common/src/services/inspection/inspectors/__tests__/environment.inspector.spec.ts
index dd7cb8c88..756c61e75 100644
--- a/packages/hoppscotch-common/src/services/inspection/inspectors/__tests__/environment.inspector.spec.ts
+++ b/packages/hoppscotch-common/src/services/inspection/inspectors/__tests__/environment.inspector.spec.ts
@@ -15,9 +15,21 @@ vi.mock("~/newstore/environments", async () => {
 
   return {
     __esModule: true,
-    aggregateEnvs$: new BehaviorSubject([
-      { key: "EXISTING_ENV_VAR", value: "test_value" },
+    aggregateEnvsWithSecrets$: new BehaviorSubject([
+      { key: "EXISTING_ENV_VAR", value: "test_value", secret: false },
+      { key: "EXISTING_ENV_VAR_2", value: "", secret: false },
     ]),
+    getCurrentEnvironment: () => ({
+      id: "1",
+      name: "some-env",
+      v: 1,
+      variables: {
+        key: "EXISTING_ENV_VAR",
+        value: "test_value",
+        secret: false,
+      },
+    }),
+    getSelectedEnvironmentType: () => "MY_ENV",
   }
 })
 
@@ -51,7 +63,7 @@ describe("EnvironmentInspectorService", () => {
 
       expect(result.value).toContainEqual(
         expect.objectContaining({
-          id: "environment",
+          id: "environment-not-found-0",
           isApplicable: true,
           text: {
             type: "text",
@@ -91,7 +103,7 @@ describe("EnvironmentInspectorService", () => {
 
       expect(result.value).toContainEqual(
         expect.objectContaining({
-          id: "environment",
+          id: "environment-not-found-0",
           isApplicable: true,
           text: {
             type: "text",
@@ -134,7 +146,7 @@ describe("EnvironmentInspectorService", () => {
 
       expect(result.value).toContainEqual(
         expect.objectContaining({
-          id: "environment",
+          id: "environment-not-found-0",
           isApplicable: true,
           text: {
             type: "text",
@@ -161,5 +173,103 @@ describe("EnvironmentInspectorService", () => {
 
       expect(result.value).toHaveLength(0)
     })
+
+    it("should return an inspector result when the URL contains empty value in a environment variable", () => {
+      const container = new TestContainer()
+      const envInspector = container.bind(EnvironmentInspectorService)
+
+      const req = ref({
+        ...getDefaultRESTRequest(),
+        endpoint: "<<EXISTING_ENV_VAR_2>>",
+      })
+
+      const result = envInspector.getInspections(req)
+
+      expect(result.value).toHaveLength(1)
+    })
+
+    it("should not return an inspector result when the URL contains non empty value in a environemnt variable", () => {
+      const container = new TestContainer()
+      const envInspector = container.bind(EnvironmentInspectorService)
+
+      const req = ref({
+        ...getDefaultRESTRequest(),
+        endpoint: "<<EXISTING_ENV_VAR>>",
+      })
+
+      const result = envInspector.getInspections(req)
+
+      expect(result.value).toHaveLength(0)
+    })
+
+    it("should return an inspector result when the headers contain empty value in a environment variable", () => {
+      const container = new TestContainer()
+      const envInspector = container.bind(EnvironmentInspectorService)
+
+      const req = ref({
+        ...getDefaultRESTRequest(),
+        endpoint: "http://example.com/api/data",
+        headers: [
+          { key: "<<EXISTING_ENV_VAR_2>>", value: "some-value", active: true },
+        ],
+      })
+
+      const result = envInspector.getInspections(req)
+
+      expect(result.value).toHaveLength(1)
+    })
+
+    it("should not return an inspector result when the headers contain non empty value in a environemnt variable", () => {
+      const container = new TestContainer()
+      const envInspector = container.bind(EnvironmentInspectorService)
+
+      const req = ref({
+        ...getDefaultRESTRequest(),
+        endpoint: "http://example.com/api/data",
+        headers: [
+          { key: "<<EXISTING_ENV_VAR>>", value: "some-value", active: true },
+        ],
+      })
+
+      const result = envInspector.getInspections(req)
+
+      expect(result.value).toHaveLength(0)
+    })
+
+    it("should return an inspector result when the params contain empty value in a environment variable", () => {
+      const container = new TestContainer()
+      const envInspector = container.bind(EnvironmentInspectorService)
+
+      const req = ref({
+        ...getDefaultRESTRequest(),
+        endpoint: "http://example.com/api/data",
+        headers: [],
+        params: [
+          { key: "<<EXISTING_ENV_VAR_2>>", value: "some-value", active: true },
+        ],
+      })
+
+      const result = envInspector.getInspections(req)
+
+      expect(result.value).toHaveLength(1)
+    })
+
+    it("should not return an inspector result when the params contain non empty value in a environemnt variable", () => {
+      const container = new TestContainer()
+      const envInspector = container.bind(EnvironmentInspectorService)
+
+      const req = ref({
+        ...getDefaultRESTRequest(),
+        endpoint: "http://example.com/api/data",
+        headers: [],
+        params: [
+          { key: "<<EXISTING_ENV_VAR>>", value: "some-value", active: true },
+        ],
+      })
+
+      const result = envInspector.getInspections(req)
+
+      expect(result.value).toHaveLength(0)
+    })
   })
 })
diff --git a/packages/hoppscotch-common/src/services/inspection/inspectors/environment.inspector.ts b/packages/hoppscotch-common/src/services/inspection/inspectors/environment.inspector.ts
index a3ebb66dd..c3a9c7912 100644
--- a/packages/hoppscotch-common/src/services/inspection/inspectors/environment.inspector.ts
+++ b/packages/hoppscotch-common/src/services/inspection/inspectors/environment.inspector.ts
@@ -9,7 +9,11 @@ import { Service } from "dioc"
 import { Ref, markRaw } from "vue"
 import IconPlusCircle from "~icons/lucide/plus-circle"
 import { HoppRESTRequest } from "@hoppscotch/data"
-import { aggregateEnvs$ } from "~/newstore/environments"
+import {
+  aggregateEnvsWithSecrets$,
+  getCurrentEnvironment,
+  getSelectedEnvironmentType,
+} from "~/newstore/environments"
 import { invokeAction } from "~/helpers/actions"
 import { computed } from "vue"
 import { useStreamStatic } from "~/composables/stream"
@@ -36,9 +40,13 @@ export class EnvironmentInspectorService extends Service implements Inspector {
 
   private readonly inspection = this.bind(InspectionService)
 
-  private aggregateEnvs = useStreamStatic(aggregateEnvs$, [], () => {
-    /* noop */
-  })[0]
+  private aggregateEnvsWithSecrets = useStreamStatic(
+    aggregateEnvsWithSecrets$,
+    [],
+    () => {
+      /* noop */
+    }
+  )[0]
 
   constructor() {
     super()
@@ -49,9 +57,8 @@ export class EnvironmentInspectorService extends Service implements Inspector {
   /**
    * Validates the environment variables in the target array
    * @param target The target array to validate
-   * @param results The results array to push the results to
    * @param locations The location where results are to be displayed
-   * @returns The results array
+   * @returns The results array containing the results of the validation
    */
   private validateEnvironmentVariables = (
     target: any[],
@@ -59,7 +66,7 @@ export class EnvironmentInspectorService extends Service implements Inspector {
   ) => {
     const newErrors: InspectorResult[] = []
 
-    const envKeys = this.aggregateEnvs.value.map((e) => e.key)
+    const envKeys = this.aggregateEnvsWithSecrets.value.map((e) => e.key)
 
     target.forEach((element, index) => {
       if (isENVInString(element)) {
@@ -68,29 +75,20 @@ export class EnvironmentInspectorService extends Service implements Inspector {
         if (extractedEnv) {
           extractedEnv.forEach((exEnv: string) => {
             const formattedExEnv = exEnv.slice(2, -2)
-            let itemLocation: InspectorLocation
-            if (locations.type === "header") {
-              itemLocation = {
-                type: "header",
-                position: locations.position,
-                index: index,
-                key: element,
-              }
-            } else if (locations.type === "parameter") {
-              itemLocation = {
-                type: "parameter",
-                position: locations.position,
-                index: index,
-                key: element,
-              }
-            } else {
-              itemLocation = {
-                type: "url",
-              }
+            const itemLocation: InspectorLocation = {
+              type: locations.type,
+              position:
+                locations.type === "url" ||
+                locations.type === "body" ||
+                locations.type === "response"
+                  ? "key"
+                  : locations.position,
+              index: index,
+              key: element,
             }
             if (!envKeys.includes(formattedExEnv)) {
               newErrors.push({
-                id: "environment",
+                id: `environment-not-found-${newErrors.length}`,
                 text: {
                   type: "text",
                   text: this.t("inspections.environment.not_found", {
@@ -112,7 +110,7 @@ export class EnvironmentInspectorService extends Service implements Inspector {
                 locations: itemLocation,
                 doc: {
                   text: this.t("action.learn_more"),
-                  link: "https://docs.hoppscotch.io/",
+                  link: "https://docs.hoppscotch.io/documentation/features/inspections",
                 },
               })
             }
@@ -124,6 +122,103 @@ export class EnvironmentInspectorService extends Service implements Inspector {
     return newErrors
   }
 
+  /**
+   * Checks if the environment variables in the target array are empty
+   * @param target The target array to validate
+   * @param locations The location where results are to be displayed
+   * @returns The results array containing the results of the validation
+   */
+  private validateEmptyEnvironmentVariables = (
+    target: any[],
+    locations: InspectorLocation
+  ) => {
+    const newErrors: InspectorResult[] = []
+
+    target.forEach((element, index) => {
+      if (isENVInString(element)) {
+        const extractedEnv = element.match(HOPP_ENVIRONMENT_REGEX)
+
+        if (extractedEnv) {
+          extractedEnv.forEach((exEnv: string) => {
+            const formattedExEnv = exEnv.slice(2, -2)
+
+            this.aggregateEnvsWithSecrets.value.forEach((env) => {
+              if (env.key === formattedExEnv) {
+                if (env.value === "") {
+                  const itemLocation: InspectorLocation = {
+                    type: locations.type,
+                    position:
+                      locations.type === "url" ||
+                      locations.type === "body" ||
+                      locations.type === "response"
+                        ? "key"
+                        : locations.position,
+                    index: index,
+                    key: element,
+                  }
+
+                  const currentSelectedEnvironment = getCurrentEnvironment()
+                  const currentEnvironmentType = getSelectedEnvironmentType()
+
+                  let invokeActionType:
+                    | "modals.my.environment.edit"
+                    | "modals.team.environment.edit"
+                    | "modals.global.environment.update" =
+                    "modals.my.environment.edit"
+
+                  if (env.sourceEnv === "Global") {
+                    invokeActionType = "modals.global.environment.update"
+                  } else if (currentEnvironmentType === "MY_ENV") {
+                    invokeActionType = "modals.my.environment.edit"
+                  } else if (currentEnvironmentType === "TEAM_ENV") {
+                    invokeActionType = "modals.team.environment.edit"
+                  } else {
+                    invokeActionType = "modals.my.environment.edit"
+                  }
+
+                  newErrors.push({
+                    id: `environment-empty-${newErrors.length}`,
+                    text: {
+                      type: "text",
+                      text: this.t("inspections.environment.empty_value", {
+                        variable: exEnv,
+                      }),
+                    },
+                    icon: markRaw(IconPlusCircle),
+                    action: {
+                      text: this.t(
+                        "inspections.environment.add_environment_value"
+                      ),
+                      apply: () => {
+                        invokeAction(invokeActionType, {
+                          envName:
+                            env.sourceEnv !== "Global"
+                              ? currentSelectedEnvironment.name
+                              : "Global",
+                          variableName: formattedExEnv,
+                          isSecret: env.secret,
+                        })
+                      },
+                    },
+                    severity: 2,
+                    isApplicable: true,
+                    locations: itemLocation,
+                    doc: {
+                      text: this.t("action.learn_more"),
+                      link: "https://docs.hoppscotch.io/documentation/features/inspections",
+                    },
+                  })
+                }
+              }
+            })
+          })
+        }
+      }
+    })
+
+    return newErrors
+  }
+
   getInspections(req: Readonly<Ref<HoppRESTRequest>>) {
     return computed(() => {
       const results: InspectorResult[] = []
@@ -132,12 +227,25 @@ export class EnvironmentInspectorService extends Service implements Inspector {
 
       const params = req.value.params
 
+      /**
+       * Validate the environment variables in the URL
+       */
+      const url = req.value.endpoint
+
       results.push(
-        ...this.validateEnvironmentVariables([req.value.endpoint], {
+        ...this.validateEnvironmentVariables([url], {
+          type: "url",
+        })
+      )
+      results.push(
+        ...this.validateEmptyEnvironmentVariables([url], {
           type: "url",
         })
       )
 
+      /**
+       * Validate the environment variables in the headers
+       */
       const headerKeys = Object.values(headers).map((header) => header.key)
 
       results.push(
@@ -146,6 +254,12 @@ export class EnvironmentInspectorService extends Service implements Inspector {
           position: "key",
         })
       )
+      results.push(
+        ...this.validateEmptyEnvironmentVariables(headerKeys, {
+          type: "header",
+          position: "key",
+        })
+      )
 
       const headerValues = Object.values(headers).map((header) => header.value)
 
@@ -155,7 +269,16 @@ export class EnvironmentInspectorService extends Service implements Inspector {
           position: "value",
         })
       )
+      results.push(
+        ...this.validateEmptyEnvironmentVariables(headerValues, {
+          type: "header",
+          position: "value",
+        })
+      )
 
+      /**
+       * Validate the environment variables in the parameters
+       */
       const paramsKeys = Object.values(params).map((param) => param.key)
 
       results.push(
@@ -164,6 +287,12 @@ export class EnvironmentInspectorService extends Service implements Inspector {
           position: "key",
         })
       )
+      results.push(
+        ...this.validateEmptyEnvironmentVariables(paramsKeys, {
+          type: "parameter",
+          position: "key",
+        })
+      )
 
       const paramsValues = Object.values(params).map((param) => param.value)
 
@@ -174,6 +303,13 @@ export class EnvironmentInspectorService extends Service implements Inspector {
         })
       )
 
+      results.push(
+        ...this.validateEmptyEnvironmentVariables(paramsValues, {
+          type: "parameter",
+          position: "value",
+        })
+      )
+
       return results
     })
   }
diff --git a/packages/hoppscotch-common/src/services/inspection/inspectors/header.inspector.ts b/packages/hoppscotch-common/src/services/inspection/inspectors/header.inspector.ts
index 3f8b893f3..e5124d068 100644
--- a/packages/hoppscotch-common/src/services/inspection/inspectors/header.inspector.ts
+++ b/packages/hoppscotch-common/src/services/inspection/inspectors/header.inspector.ts
@@ -67,7 +67,7 @@ export class HeaderInspectorService extends Service implements Inspector {
               },
               doc: {
                 text: this.t("action.learn_more"),
-                link: "https://docs.hoppscotch.io/",
+                link: "https://docs.hoppscotch.io/documentation/features/inspections",
               },
             })
           }
diff --git a/packages/hoppscotch-common/src/services/inspection/inspectors/response.inspector.ts b/packages/hoppscotch-common/src/services/inspection/inspectors/response.inspector.ts
index 014294511..fc23cdf25 100644
--- a/packages/hoppscotch-common/src/services/inspection/inspectors/response.inspector.ts
+++ b/packages/hoppscotch-common/src/services/inspection/inspectors/response.inspector.ts
@@ -67,7 +67,7 @@ export class ResponseInspectorService extends Service implements Inspector {
           },
           doc: {
             text: this.t("action.learn_more"),
-            link: "https://docs.hoppscotch.io/",
+            link: "https://docs.hoppscotch.io/documentation/features/inspections",
           },
         })
       }
diff --git a/packages/hoppscotch-common/src/services/persistence/__tests__/__mocks__/index.ts b/packages/hoppscotch-common/src/services/persistence/__tests__/__mocks__/index.ts
index eb04fbd28..02385fe9f 100644
--- a/packages/hoppscotch-common/src/services/persistence/__tests__/__mocks__/index.ts
+++ b/packages/hoppscotch-common/src/services/persistence/__tests__/__mocks__/index.ts
@@ -4,6 +4,7 @@ import { HoppGQLDocument } from "~/helpers/graphql/document"
 import { HoppRESTDocument } from "~/helpers/rest/document"
 import { GQLHistoryEntry, RESTHistoryEntry } from "~/newstore/history"
 import { SettingsDef, getDefaultSettings } from "~/newstore/settings"
+import { SecretVariable } from "~/services/secret-environment.service"
 import { PersistableTabState } from "~/services/tab"
 
 type VUEX_DATA = {
@@ -19,7 +20,7 @@ const DEFAULT_SETTINGS = getDefaultSettings()
 
 export const REST_COLLECTIONS_MOCK: HoppCollection[] = [
   {
-    v: 1,
+    v: 2,
     name: "Echo",
     folders: [],
     requests: [
@@ -36,12 +37,14 @@ export const REST_COLLECTIONS_MOCK: HoppCollection[] = [
         body: { contentType: null, body: null },
       },
     ],
+    auth: { authType: "none", authActive: true },
+    headers: [],
   },
 ]
 
 export const GQL_COLLECTIONS_MOCK: HoppCollection[] = [
   {
-    v: 1,
+    v: 2,
     name: "Echo",
     folders: [],
     requests: [
@@ -55,20 +58,30 @@ export const GQL_COLLECTIONS_MOCK: HoppCollection[] = [
         auth: { authType: "none", authActive: true },
       },
     ],
+    auth: { authType: "none", authActive: true },
+    headers: [],
   },
 ]
 
 export const ENVIRONMENTS_MOCK: Environment[] = [
   {
+    v: 1,
+    id: "ENV_1",
     name: "globals",
     variables: [
       {
         key: "test-global-key",
         value: "test-global-value",
+        secret: false,
       },
     ],
   },
-  { name: "Test", variables: [{ key: "test-key", value: "test-value" }] },
+  {
+    v: 1,
+    id: "ENV_2",
+    name: "Test",
+    variables: [{ key: "test-key", value: "test-value", secret: false }],
+  },
 ]
 
 export const SELECTED_ENV_INDEX_MOCK = {
@@ -98,7 +111,7 @@ export const MQTT_REQUEST_MOCK = {
 }
 
 export const GLOBAL_ENV_MOCK: Environment["variables"] = [
-  { key: "test-key", value: "test-value" },
+  { key: "test-key", value: "test-value", secret: false },
 ]
 
 export const VUEX_DATA_MOCK: VUEX_DATA = {
@@ -201,3 +214,11 @@ export const REST_TAB_STATE_MOCK: PersistableTabState<HoppRESTDocument> = {
     },
   ],
 }
+
+export const SECRET_ENVIRONMENTS_MOCK: Record<string, SecretVariable> = {
+  clryz7ir7002al4162bsj0azg: {
+    key: "test-key",
+    value: "test-value",
+    varIndex: 1,
+  },
+}
diff --git a/packages/hoppscotch-common/src/services/persistence/__tests__/index.spec.ts b/packages/hoppscotch-common/src/services/persistence/__tests__/index.spec.ts
index 8d6e12555..8fdf0c7e1 100644
--- a/packages/hoppscotch-common/src/services/persistence/__tests__/index.spec.ts
+++ b/packages/hoppscotch-common/src/services/persistence/__tests__/index.spec.ts
@@ -56,12 +56,14 @@ import {
   REST_COLLECTIONS_MOCK,
   REST_HISTORY_MOCK,
   REST_TAB_STATE_MOCK,
+  SECRET_ENVIRONMENTS_MOCK,
   SELECTED_ENV_INDEX_MOCK,
   SOCKET_IO_REQUEST_MOCK,
   SSE_REQUEST_MOCK,
   VUEX_DATA_MOCK,
   WEBSOCKET_REQUEST_MOCK,
 } from "./__mocks__"
+import { SecretEnvironmentService } from "~/services/secret-environment.service"
 
 vi.mock("~/modules/i18n", () => {
   return {
@@ -122,10 +124,12 @@ const spyOnSetItem = () => vi.spyOn(Storage.prototype, "setItem")
 const bindPersistenceService = ({
   mockGQLTabService = false,
   mockRESTTabService = false,
+  mockSecretEnvironmentsService = false,
   mock = {},
 }: {
   mockGQLTabService?: boolean
   mockRESTTabService?: boolean
+  mockSecretEnvironmentsService?: boolean
   mock?: Record<string, unknown>
 } = {}) => {
   const container = new TestContainer()
@@ -138,6 +142,10 @@ const bindPersistenceService = ({
     container.bindMock(RESTTabService, mock)
   }
 
+  if (mockSecretEnvironmentsService) {
+    container.bindMock(SecretEnvironmentService, mock)
+  }
+
   container.bind(PersistenceService)
 
   const service = container.bind(PersistenceService)
@@ -893,7 +901,12 @@ describe("PersistenceService", () => {
         // Invalid shape for `environments`
         const environments = [
           // `entries` -> `variables`
-          { name: "Test", entries: [{ key: "test-key", value: "test-value" }] },
+          {
+            v: 1,
+            id: "ENV_1",
+            name: "Test",
+            entries: [{ key: "test-key", value: "test-value", secret: false }],
+          },
         ]
 
         window.localStorage.setItem(
@@ -1044,6 +1057,119 @@ describe("PersistenceService", () => {
       })
     })
 
+    describe("Setup secret Environments persistence", () => {
+      // Key read from localStorage across test cases
+      const secretEnvironmentsKey = "secretEnvironments"
+
+      const loadSecretEnvironmentsFromPersistedStateFn = vi.fn()
+      const mock = {
+        loadSecretEnvironmentsFromPersistedState:
+          loadSecretEnvironmentsFromPersistedStateFn,
+      }
+
+      it(`shows an error and sets the entry as a backup in localStorage if "${secretEnvironmentsKey}" read from localStorage doesn't match the schema`, () => {
+        // Invalid shape for `secretEnvironments`
+        const secretEnvironments = {
+          clryz7ir7002al4162bsj0azg: {
+            key: "ENV_KEY",
+            value: "ENV_VALUE",
+          },
+        }
+
+        window.localStorage.setItem(
+          secretEnvironmentsKey,
+          JSON.stringify(secretEnvironments)
+        )
+
+        const getItemSpy = spyOnGetItem()
+        const setItemSpy = spyOnSetItem()
+
+        invokeSetupLocalPersistence()
+
+        expect(getItemSpy).toHaveBeenCalledWith(secretEnvironmentsKey)
+
+        expect(toastErrorFn).toHaveBeenCalledWith(
+          expect.stringContaining(secretEnvironmentsKey)
+        )
+        expect(setItemSpy).toHaveBeenCalledWith(
+          `${secretEnvironmentsKey}-backup`,
+          JSON.stringify(secretEnvironments)
+        )
+      })
+
+      it("loads secret environments from the state persisted in localStorage and sets watcher for `persistableSecretEnvironment`", () => {
+        const secretEnvironment = SECRET_ENVIRONMENTS_MOCK
+        window.localStorage.setItem(
+          secretEnvironmentsKey,
+          JSON.stringify(secretEnvironment)
+        )
+
+        const getItemSpy = spyOnGetItem()
+
+        invokeSetupLocalPersistence({
+          mockSecretEnvironmentsService: true,
+          mock,
+        })
+
+        expect(getItemSpy).toHaveBeenCalledWith(secretEnvironmentsKey)
+
+        expect(toastErrorFn).not.toHaveBeenCalledWith(secretEnvironmentsKey)
+
+        expect(loadSecretEnvironmentsFromPersistedStateFn).toHaveBeenCalledWith(
+          secretEnvironment
+        )
+        expect(watchDebounced).toHaveBeenCalledWith(
+          expect.any(Object),
+          expect.any(Function),
+          { debounce: 500 }
+        )
+      })
+
+      it(`skips schema parsing and the loading of persisted secret environments if there is no "${secretEnvironmentsKey}" key present in localStorage`, () => {
+        window.localStorage.removeItem(secretEnvironmentsKey)
+
+        const getItemSpy = spyOnGetItem()
+        const setItemSpy = spyOnSetItem()
+
+        invokeSetupLocalPersistence({
+          mockSecretEnvironmentsService: true,
+          mock,
+        })
+
+        expect(getItemSpy).toHaveBeenCalledWith(secretEnvironmentsKey)
+
+        expect(toastErrorFn).not.toHaveBeenCalledWith(secretEnvironmentsKey)
+        expect(setItemSpy).not.toHaveBeenCalled()
+
+        expect(watchDebounced).toHaveBeenCalled()
+      })
+
+      it("logs an error to the console on failing to parse persisted secret environments", () => {
+        window.localStorage.setItem(secretEnvironmentsKey, "invalid-json")
+
+        console.error = vi.fn()
+        const getItemSpy = spyOnGetItem()
+        const setItemSpy = spyOnSetItem()
+
+        invokeSetupLocalPersistence()
+
+        expect(getItemSpy).toHaveBeenCalledWith(secretEnvironmentsKey)
+
+        expect(toastErrorFn).not.toHaveBeenCalledWith(secretEnvironmentsKey)
+        expect(setItemSpy).not.toHaveBeenCalled()
+
+        expect(console.error).toHaveBeenCalledWith(
+          `Failed parsing persisted secret environment, state:`,
+          window.localStorage.getItem(secretEnvironmentsKey)
+        )
+        expect(watchDebounced).toHaveBeenCalledWith(
+          expect.any(Object),
+          expect.any(Function),
+          { debounce: 500 }
+        )
+      })
+    })
+
     describe("setup WebSocket persistence", () => {
       // Key read from localStorage across test cases
       const wsRequestKey = "WebsocketRequest"
diff --git a/packages/hoppscotch-common/src/services/persistence/index.ts b/packages/hoppscotch-common/src/services/persistence/index.ts
index 04a153853..84d318476 100644
--- a/packages/hoppscotch-common/src/services/persistence/index.ts
+++ b/packages/hoppscotch-common/src/services/persistence/index.ts
@@ -67,10 +67,12 @@ import {
   SETTINGS_SCHEMA,
   SOCKET_IO_REQUEST_SCHEMA,
   SSE_REQUEST_SCHEMA,
+  SECRET_ENVIRONMENT_VARIABLE_SCHEMA,
   THEME_COLOR_SCHEMA,
   VUEX_SCHEMA,
   WEBSOCKET_REQUEST_SCHEMA,
 } from "./validation-schemas"
+import { SecretEnvironmentService } from "../secret-environment.service"
 
 /**
  * This service compiles persistence logic across the codebase
@@ -81,6 +83,10 @@ export class PersistenceService extends Service {
   private readonly restTabService = this.bind(RESTTabService)
   private readonly gqlTabService = this.bind(GQLTabService)
 
+  private readonly secretEnvironmentService = this.bind(
+    SecretEnvironmentService
+  )
+
   public hoppLocalConfigStorage: StorageLike = localStorage
 
   constructor() {
@@ -438,6 +444,56 @@ export class PersistenceService extends Service {
     })
   }
 
+  private setupSecretEnvironmentsPersistence() {
+    const secretEnvironmentsKey = "secretEnvironments"
+    const secretEnvironmentsData = window.localStorage.getItem(
+      secretEnvironmentsKey
+    )
+
+    try {
+      if (secretEnvironmentsData) {
+        let parsedSecretEnvironmentsData = JSON.parse(secretEnvironmentsData)
+
+        // Validate data read from localStorage
+        const result = SECRET_ENVIRONMENT_VARIABLE_SCHEMA.safeParse(
+          parsedSecretEnvironmentsData
+        )
+
+        if (result.success) {
+          parsedSecretEnvironmentsData = result.data
+        } else {
+          this.showErrorToast(secretEnvironmentsKey)
+          window.localStorage.setItem(
+            `${secretEnvironmentsKey}-backup`,
+            JSON.stringify(parsedSecretEnvironmentsData)
+          )
+        }
+
+        this.secretEnvironmentService.loadSecretEnvironmentsFromPersistedState(
+          parsedSecretEnvironmentsData
+        )
+      }
+    } catch (e) {
+      console.error(
+        `Failed parsing persisted secret environment, state:`,
+        secretEnvironmentsData
+      )
+    }
+
+    watchDebounced(
+      this.secretEnvironmentService.persistableSecretEnvironments,
+      (newSecretEnvironment) => {
+        window.localStorage.setItem(
+          secretEnvironmentsKey,
+          JSON.stringify(newSecretEnvironment)
+        )
+      },
+      {
+        debounce: 500,
+      }
+    )
+  }
+
   private setupSelectedEnvPersistence() {
     const selectedEnvIndexKey = "selectedEnvIndex"
     let selectedEnvIndexValue = JSON.parse(
@@ -697,6 +753,8 @@ export class PersistenceService extends Service {
     this.setupSocketIOPersistence()
     this.setupSSEPersistence()
     this.setupMQTTPersistence()
+
+    this.setupSecretEnvironmentsPersistence()
   }
 
   /**
diff --git a/packages/hoppscotch-common/src/services/persistence/validation-schemas/index.ts b/packages/hoppscotch-common/src/services/persistence/validation-schemas/index.ts
index 72ca18415..f91194e15 100644
--- a/packages/hoppscotch-common/src/services/persistence/validation-schemas/index.ts
+++ b/packages/hoppscotch-common/src/services/persistence/validation-schemas/index.ts
@@ -160,7 +160,6 @@ export const SELECTED_ENV_INDEX_SCHEMA = z.nullable(
       type: z.literal("TEAM_ENV"),
       teamID: z.string(),
       teamEnvID: z.string(),
-      // ! Versioned entity
       environment: entityReference(Environment),
     }),
   ])
@@ -212,13 +211,19 @@ export const MQTT_REQUEST_SCHEMA = z.nullable(
 
 export const GLOBAL_ENV_SCHEMA = z.union([
   z.array(z.never()),
+
   z.array(
-    z
-      .object({
+    z.union([
+      z.object({
+        key: z.string(),
+        secret: z.literal(true),
+      }),
+      z.object({
         key: z.string(),
         value: z.string(),
-      })
-      .strict()
+        secret: z.literal(false),
+      }),
+    ])
   ),
 ])
 
@@ -339,12 +344,34 @@ const HoppTestDataSchema = z.lazy(() =>
     .strict()
 )
 
-const EnvironmentVariablesSchema = z
-  .object({
+const EnvironmentVariablesSchema = z.union([
+  z.object({
     key: z.string(),
     value: z.string(),
-  })
-  .strict()
+    secret: z.literal(false),
+  }),
+  z.object({
+    key: z.string(),
+    secret: z.literal(true),
+  }),
+])
+
+export const SECRET_ENVIRONMENT_VARIABLE_SCHEMA = z.union([
+  z.object({}).strict(),
+
+  z.record(
+    z.string(),
+    z.array(
+      z
+        .object({
+          key: z.string(),
+          value: z.string(),
+          varIndex: z.number(),
+        })
+        .strict()
+    )
+  ),
+])
 
 const HoppTestResultSchema = z
   .object({
@@ -358,7 +385,11 @@ const HoppTestResultSchema = z
           .object({
             additions: z.array(EnvironmentVariablesSchema),
             updations: z.array(
-              EnvironmentVariablesSchema.extend({ previousValue: z.string() })
+              EnvironmentVariablesSchema.refine((x) => !x.secret).and(
+                z.object({
+                  previousValue: z.string(),
+                })
+              )
             ),
             deletions: z.array(EnvironmentVariablesSchema),
           })
@@ -367,7 +398,11 @@ const HoppTestResultSchema = z
           .object({
             additions: z.array(EnvironmentVariablesSchema),
             updations: z.array(
-              EnvironmentVariablesSchema.extend({ previousValue: z.string() })
+              EnvironmentVariablesSchema.refine((x) => !x.secret).and(
+                z.object({
+                  previousValue: z.string(),
+                })
+              )
             ),
             deletions: z.array(EnvironmentVariablesSchema),
           })
diff --git a/packages/hoppscotch-common/src/services/secret-environment.service.ts b/packages/hoppscotch-common/src/services/secret-environment.service.ts
new file mode 100644
index 000000000..ff6ff7641
--- /dev/null
+++ b/packages/hoppscotch-common/src/services/secret-environment.service.ts
@@ -0,0 +1,130 @@
+import { Service } from "dioc"
+import { reactive } from "vue"
+import { computed } from "vue"
+
+/**
+ * Defines a secret environment variable.
+ */
+export type SecretVariable = {
+  key: string
+  value: string
+  varIndex: number
+}
+
+/**
+ * This service is used to store and manage secret environments.
+ * The secret environments are not synced with the server.
+ * hence they are not persisted in the database. They are stored
+ * in the local storage of the browser.
+ */
+export class SecretEnvironmentService extends Service {
+  public static readonly ID = "SECRET_ENVIRONMENT_SERVICE"
+
+  /**
+   * Map of secret environments.
+   * The key is the ID of the secret environment.
+   * The value is the list of secret variables.
+   */
+  public secretEnvironments = reactive(new Map<string, SecretVariable[]>())
+
+  constructor() {
+    super()
+  }
+
+  /**
+   * Add a new secret environment.
+   * @param id ID of the environment
+   * @param secretVars List of secret variables
+   */
+  public addSecretEnvironment(id: string, secretVars: SecretVariable[]) {
+    this.secretEnvironments.set(id, secretVars)
+  }
+
+  /**
+   * Get a secret environment.
+   * @param id ID of the environment
+   */
+  public getSecretEnvironment(id: string) {
+    return this.secretEnvironments.get(id)
+  }
+
+  /**
+   * Get a secret environment variable.
+   * @param id ID of the environment
+   * @param varIndex Index of the variable in the environment
+   */
+  public getSecretEnvironmentVariable(id: string, varIndex: number) {
+    const secretVars = this.getSecretEnvironment(id)
+    return secretVars?.find((secretVar) => secretVar.varIndex === varIndex)
+  }
+
+  /**
+   * Used to get the value of a secret environment variable.
+   * @param id ID of the environment
+   * @param varIndex Index of the variable in the environment
+=   */
+  public getSecretEnvironmentVariableValue(id: string, varIndex: number) {
+    const secretVar = this.getSecretEnvironmentVariable(id, varIndex)
+    return secretVar?.value
+  }
+
+  /**
+   *
+   * @param secretEnvironments Used to load secret environments from persisted state.
+   */
+  public loadSecretEnvironmentsFromPersistedState(
+    secretEnvironments: Record<string, SecretVariable[]>
+  ) {
+    if (secretEnvironments) {
+      this.secretEnvironments.clear()
+
+      Object.entries(secretEnvironments).forEach(([id, secretVars]) => {
+        this.addSecretEnvironment(id, secretVars)
+      })
+    }
+  }
+
+  /**
+   * Delete a secret environment.
+   * @param id ID of the environment
+   */
+  public deleteSecretEnvironment(id: string) {
+    this.secretEnvironments.delete(id)
+  }
+
+  /**
+   * Delete a secret environment variable.
+   * @param id ID of the environment
+   * @param varIndex Index of the variable in the environment
+   */
+  public removeSecretEnvironmentVariable(id: string, varIndex: number) {
+    const secretVars = this.getSecretEnvironment(id)
+    const newSecretVars = secretVars?.filter(
+      (secretVar) => secretVar.varIndex !== varIndex
+    )
+    this.secretEnvironments.set(id, newSecretVars || [])
+  }
+
+  /**
+   * Used to update thye ID of a secret environment.
+   * Used while syncing with the server.
+   * @param oldID old ID of the environment
+   * @param newID new ID of the environment
+   */
+  public updateSecretEnvironmentID(oldID: string, newID: string) {
+    const secretVars = this.getSecretEnvironment(oldID)
+    this.secretEnvironments.set(newID, secretVars || [])
+    this.secretEnvironments.delete(oldID)
+  }
+
+  /**
+   * Used to update the value of a secret environment variable.
+   */
+  public persistableSecretEnvironments = computed(() => {
+    const secretEnvironments: Record<string, SecretVariable[]> = {}
+    this.secretEnvironments.forEach((secretVars, id) => {
+      secretEnvironments[id] = secretVars
+    })
+    return secretEnvironments
+  })
+}
diff --git a/packages/hoppscotch-common/src/services/spotlight/searchers/environment.searcher.ts b/packages/hoppscotch-common/src/services/spotlight/searchers/environment.searcher.ts
index 1a2781e14..1eb6a63c1 100644
--- a/packages/hoppscotch-common/src/services/spotlight/searchers/environment.searcher.ts
+++ b/packages/hoppscotch-common/src/services/spotlight/searchers/environment.searcher.ts
@@ -248,9 +248,7 @@ export class EnvironmentsSpotlightSearcherService extends StaticSpotlightSearche
         this.duplicateSelectedEnv()
         break
       case "edit_global_env":
-        invokeAction(`modals.my.environment.edit`, {
-          envName: "Global",
-        })
+        invokeAction(`modals.global.environment.update`, {})
         break
       case "duplicate_global_env":
         this.duplicateGlobalEnv()
diff --git a/packages/hoppscotch-data/src/environment/index.ts b/packages/hoppscotch-data/src/environment/index.ts
index 29c0b8ecc..94a4f04e1 100644
--- a/packages/hoppscotch-data/src/environment/index.ts
+++ b/packages/hoppscotch-data/src/environment/index.ts
@@ -2,22 +2,38 @@ import * as E from "fp-ts/Either"
 import { pipe } from "fp-ts/function"
 import { InferredEntity, createVersionedEntity } from "verzod"
 
+import { z } from "zod"
+
 import V0_VERSION from "./v/0"
+import V1_VERSION from "./v/1"
+
+const versionedObject = z.object({
+  v: z.number(),
+})
 
 export const Environment = createVersionedEntity({
-  latestVersion: 0,
+  latestVersion: 1,
   versionMap: {
-    0: V0_VERSION
+    0: V0_VERSION,
+    1: V1_VERSION,
+  },
+  getVersion(data) {
+    const versionCheck = versionedObject.safeParse(data)
+
+    if (versionCheck.success) return versionCheck.data.v
+
+    // For V0 we have to check the schema
+    const result = V0_VERSION.schema.safeParse(data)
+    return result.success ? 0 : null
   },
-  getVersion(x) {
-    return V0_VERSION.schema.safeParse(x).success
-      ? 0
-      : null
-  }
 })
 
 export type Environment = InferredEntity<typeof Environment>
 
+export type EnvironmentVariable = InferredEntity<
+  typeof Environment
+>["variables"][number]
+
 const REGEX_ENV_VAR = /<<([^>]*)>>/g // "<<myVariable>>"
 
 /**
@@ -31,6 +47,8 @@ const ENV_MAX_EXPAND_LIMIT = 10
  */
 const ENV_EXPAND_LOOP = "ENV_EXPAND_LOOP" as const
 
+export const EnvironmentSchemaVersion = 1
+
 export function parseBodyEnvVariablesE(
   body: string,
   env: Environment["variables"]
@@ -43,7 +61,11 @@ export function parseBodyEnvVariablesE(
       const found = env.find(
         (envVar) => envVar.key === key.replace(/[<>]/g, "")
       )
-      return found ? found.value : key
+
+      if (found && "value" in found) {
+        return found.value
+      }
+      return key
     })
 
     depth++
@@ -68,7 +90,10 @@ export const parseBodyEnvVariables = (
 
 export function parseTemplateStringE(
   str: string,
-  variables: Environment["variables"]
+  variables:
+    | Environment["variables"]
+    | { secret: true; value: string; key: string }[],
+  maskValue = false
 ) {
   if (!variables || !str) {
     return E.right(str)
@@ -78,10 +103,21 @@ export function parseTemplateStringE(
   let depth = 0
 
   while (result.match(REGEX_ENV_VAR) != null && depth <= ENV_MAX_EXPAND_LIMIT) {
-    result = decodeURI(encodeURI(result)).replace(
-      REGEX_ENV_VAR,
-      (_, p1) => variables.find((x) => x.key === p1)?.value || ""
-    )
+    result = decodeURI(encodeURI(result)).replace(REGEX_ENV_VAR, (_, p1) => {
+      const variable = variables.find((x) => x && x.key === p1)
+      if (variable && "value" in variable) {
+        // Mask the value if it is a secret and explicitly specified
+        if (variable.secret && maskValue) {
+          return "*".repeat(
+            (variable as { secret: true; value: string; key: string }).value
+              .length
+          )
+        }
+        return variable.value
+      }
+
+      return ""
+    })
     depth++
   }
 
@@ -90,14 +126,52 @@ export function parseTemplateStringE(
     : E.right(result)
 }
 
+export type NonSecretEnvironmentVariable = Extract<
+  EnvironmentVariable,
+  { secret: false }
+>
+
+export type NonSecretEnvironment = Omit<Environment, "variables"> & {
+  variables: NonSecretEnvironmentVariable[]
+}
+
 /**
  * @deprecated Use `parseTemplateStringE` instead
  */
 export const parseTemplateString = (
   str: string,
-  variables: Environment["variables"]
+  variables:
+    | Environment["variables"]
+    | { secret: true; value: string; key: string }[],
+  maskValue = false
 ) =>
   pipe(
-    parseTemplateStringE(str, variables),
+    parseTemplateStringE(str, variables, maskValue),
     E.getOrElse(() => str)
   )
+
+export const translateToNewEnvironmentVariables = (
+  x: any
+): Environment["variables"][number] => {
+  return {
+    key: x.key,
+    value: x.value,
+    secret: false,
+  }
+}
+
+export const translateToNewEnvironment = (x: any): Environment => {
+  if (x.v && x.v === EnvironmentSchemaVersion) return x
+
+  // Legacy
+  const id = x.id ?? ""
+  const name = x.name ?? "Untitled"
+  const variables = (x.variables ?? []).map(translateToNewEnvironmentVariables)
+
+  return {
+    v: EnvironmentSchemaVersion,
+    id,
+    name,
+    variables,
+  }
+}
diff --git a/packages/hoppscotch-data/src/environment/v/0.ts b/packages/hoppscotch-data/src/environment/v/0.ts
index 8e030bf75..74b189893 100644
--- a/packages/hoppscotch-data/src/environment/v/0.ts
+++ b/packages/hoppscotch-data/src/environment/v/0.ts
@@ -9,10 +9,10 @@ export const V0_SCHEMA = z.object({
       key: z.string(),
       value: z.string(),
     })
-  )
+  ),
 })
 
 export default defineVersion({
   initial: true,
-  schema: V0_SCHEMA
+  schema: V0_SCHEMA,
 })
diff --git a/packages/hoppscotch-data/src/environment/v/1.ts b/packages/hoppscotch-data/src/environment/v/1.ts
new file mode 100644
index 000000000..6ab68d79f
--- /dev/null
+++ b/packages/hoppscotch-data/src/environment/v/1.ts
@@ -0,0 +1,42 @@
+import { z } from "zod"
+import { defineVersion } from "verzod"
+import { V0_SCHEMA } from "./0"
+
+export const V1_SCHEMA = z.object({
+  v: z.literal(1),
+  id: z.string(),
+  name: z.string(),
+  variables: z.array(
+    z.union([
+      z.object({
+        key: z.string(),
+        secret: z.literal(true),
+      }),
+      z.object({
+        key: z.string(),
+        value: z.string(),
+        secret: z.literal(false),
+      }),
+    ])
+  ),
+})
+
+export default defineVersion({
+  initial: false,
+  schema: V1_SCHEMA,
+  up(old: z.infer<typeof V0_SCHEMA>) {
+    const result: z.infer<typeof V1_SCHEMA> = {
+      ...old,
+      v: 1,
+      id: old.id ?? "",
+      variables: old.variables.map((variable) => {
+        return {
+          ...variable,
+          secret: false,
+        }
+      }),
+    }
+
+    return result
+  },
+})
diff --git a/packages/hoppscotch-js-sandbox/src/__tests__/preRequest.spec.ts b/packages/hoppscotch-js-sandbox/src/__tests__/preRequest.spec.ts
index cf7ce824a..ce8bf9555 100644
--- a/packages/hoppscotch-js-sandbox/src/__tests__/preRequest.spec.ts
+++ b/packages/hoppscotch-js-sandbox/src/__tests__/preRequest.spec.ts
@@ -12,16 +12,16 @@ describe("runPreRequestScript", () => {
         {
           global: [],
           selected: [
-            { key: "bob", value: "oldbob" },
-            { key: "foo", value: "bar" },
+            { key: "bob", value: "oldbob", secret: false },
+            { key: "foo", value: "bar", secret: false },
           ],
         }
       )()
     ).resolves.toEqualRight({
       global: [],
       selected: [
-        { key: "bob", value: "newbob" },
-        { key: "foo", value: "bar" },
+        { key: "bob", value: "newbob", secret: false },
+        { key: "foo", value: "bar", secret: false },
       ],
     })
   })
@@ -35,8 +35,8 @@ describe("runPreRequestScript", () => {
         {
           global: [],
           selected: [
-            { key: "bob", value: "oldbob" },
-            { key: "foo", value: "bar" },
+            { key: "bob", value: "oldbob", secret: false },
+            { key: "foo", value: "bar", secret: false },
           ],
         }
       )()
@@ -52,8 +52,8 @@ describe("runPreRequestScript", () => {
         {
           global: [],
           selected: [
-            { key: "bob", value: "oldbob" },
-            { key: "foo", value: "bar" },
+            { key: "bob", value: "oldbob", secret: false },
+            { key: "foo", value: "bar", secret: false },
           ],
         }
       )()
@@ -69,8 +69,8 @@ describe("runPreRequestScript", () => {
         {
           global: [],
           selected: [
-            { key: "bob", value: "oldbob" },
-            { key: "foo", value: "bar" },
+            { key: "bob", value: "oldbob", secret: false },
+            { key: "foo", value: "bar", secret: false },
           ],
         }
       )()
@@ -87,7 +87,7 @@ describe("runPreRequestScript", () => {
       )()
     ).resolves.toEqualRight({
       global: [],
-      selected: [{ key: "foo", value: "bar" }],
+      selected: [{ key: "foo", value: "bar", secret: false }],
     })
   })
 })
diff --git a/packages/hoppscotch-js-sandbox/src/__tests__/testing/base64-helper-functions.spec.ts b/packages/hoppscotch-js-sandbox/src/__tests__/testing/base64-helper-functions.spec.ts
index 8e54af0d9..c1fc1e106 100644
--- a/packages/hoppscotch-js-sandbox/src/__tests__/testing/base64-helper-functions.spec.ts
+++ b/packages/hoppscotch-js-sandbox/src/__tests__/testing/base64-helper-functions.spec.ts
@@ -10,13 +10,13 @@ describe("Base64 helper functions", () => {
     atob: {
       script: `pw.env.set("atob", atob("SGVsbG8gV29ybGQ="))`,
       environment: {
-        selected: [{ key: "atob", value: "Hello World" }],
+        selected: [{ key: "atob", value: "Hello World", secret: false }],
       },
     },
     btoa: {
       script: `pw.env.set("btoa", btoa("Hello World"))`,
       environment: {
-        selected: [{ key: "btoa", value: "SGVsbG8gV29ybGQ=" }],
+        selected: [{ key: "btoa", value: "SGVsbG8gV29ybGQ=", secret: false }],
       },
     },
   }
diff --git a/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/get.spec.ts b/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/get.spec.ts
index 7ca8b0dad..fb433eac8 100644
--- a/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/get.spec.ts
+++ b/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/get.spec.ts
@@ -31,6 +31,7 @@ describe("pw.env.get", () => {
             {
               key: "a",
               value: "b",
+              secret: false,
             },
           ],
         }
@@ -59,6 +60,7 @@ describe("pw.env.get", () => {
             {
               key: "a",
               value: "b",
+              secret: false,
             },
           ],
           selected: [],
@@ -112,12 +114,14 @@ describe("pw.env.get", () => {
             {
               key: "a",
               value: "global val",
+              secret: false,
             },
           ],
           selected: [
             {
               key: "a",
               value: "selected val",
+              secret: false,
             },
           ],
         }
@@ -147,6 +151,7 @@ describe("pw.env.get", () => {
             {
               key: "a",
               value: "<<hello>>",
+              secret: false,
             },
           ],
         }
diff --git a/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/getResolve.spec.ts b/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/getResolve.spec.ts
index 740f5d104..0d64e6d41 100644
--- a/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/getResolve.spec.ts
+++ b/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/getResolve.spec.ts
@@ -31,6 +31,7 @@ describe("pw.env.getResolve", () => {
             {
               key: "a",
               value: "b",
+              secret: false,
             },
           ],
         }
@@ -59,6 +60,7 @@ describe("pw.env.getResolve", () => {
             {
               key: "a",
               value: "b",
+              secret: false,
             },
           ],
           selected: [],
@@ -112,12 +114,14 @@ describe("pw.env.getResolve", () => {
             {
               key: "a",
               value: "global val",
+              secret: false,
             },
           ],
           selected: [
             {
               key: "a",
               value: "selected val",
+              secret: false,
             },
           ],
         }
@@ -147,10 +151,12 @@ describe("pw.env.getResolve", () => {
             {
               key: "a",
               value: "<<hello>>",
+              secret: false,
             },
             {
               key: "hello",
               value: "there",
+              secret: false,
             },
           ],
         }
@@ -180,10 +186,12 @@ describe("pw.env.getResolve", () => {
             {
               key: "a",
               value: "<<hello>>",
+              secret: false,
             },
             {
               key: "hello",
               value: "<<a>>",
+              secret: false,
             },
           ],
         }
diff --git a/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/resolve.spec.ts b/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/resolve.spec.ts
index 044fcff83..022d7083a 100644
--- a/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/resolve.spec.ts
+++ b/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/resolve.spec.ts
@@ -43,6 +43,7 @@ describe("pw.env.resolve", () => {
             {
               key: "hello",
               value: "there",
+              secret: false,
             },
           ],
           selected: [],
@@ -73,6 +74,7 @@ describe("pw.env.resolve", () => {
             {
               key: "hello",
               value: "there",
+              secret: false,
             },
           ],
         }
@@ -101,12 +103,14 @@ describe("pw.env.resolve", () => {
             {
               key: "hello",
               value: "yo",
+              secret: false,
             },
           ],
           selected: [
             {
               key: "hello",
               value: "there",
+              secret: false,
             },
           ],
         }
@@ -136,10 +140,12 @@ describe("pw.env.resolve", () => {
             {
               key: "hello",
               value: "<<there>>",
+              secret: false,
             },
             {
               key: "there",
               value: "<<hello>>",
+              secret: false,
             },
           ],
         }
diff --git a/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/set.spec.ts b/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/set.spec.ts
index b81b39218..d3726d249 100644
--- a/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/set.spec.ts
+++ b/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/set.spec.ts
@@ -35,6 +35,7 @@ describe("pw.env.set", () => {
             {
               key: "a",
               value: "b",
+              secret: false,
             },
           ],
         }
@@ -45,6 +46,7 @@ describe("pw.env.set", () => {
           {
             key: "a",
             value: "c",
+            secret: false,
           },
         ],
       })
@@ -62,6 +64,7 @@ describe("pw.env.set", () => {
             {
               key: "a",
               value: "b",
+              secret: false,
             },
           ],
           selected: [],
@@ -73,6 +76,7 @@ describe("pw.env.set", () => {
           {
             key: "a",
             value: "c",
+            secret: false,
           },
         ],
       })
@@ -90,12 +94,14 @@ describe("pw.env.set", () => {
             {
               key: "a",
               value: "b",
+              secret: false,
             },
           ],
           selected: [
             {
               key: "a",
               value: "d",
+              secret: false,
             },
           ],
         }
@@ -106,12 +112,14 @@ describe("pw.env.set", () => {
           {
             key: "a",
             value: "b",
+            secret: false,
           },
         ],
         selected: [
           {
             key: "a",
             value: "c",
+            secret: false,
           },
         ],
       })
@@ -136,6 +144,7 @@ describe("pw.env.set", () => {
           {
             key: "a",
             value: "c",
+            secret: false,
           },
         ],
       })
diff --git a/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/unset.spec.ts b/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/unset.spec.ts
index aeda66d71..eb6ae5783 100644
--- a/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/unset.spec.ts
+++ b/packages/hoppscotch-js-sandbox/src/__tests__/testing/envs/unset.spec.ts
@@ -35,6 +35,7 @@ describe("pw.env.unset", () => {
             {
               key: "baseUrl",
               value: "https://echo.hoppscotch.io",
+              secret: false,
             },
           ],
         }
@@ -57,6 +58,7 @@ describe("pw.env.unset", () => {
             {
               key: "baseUrl",
               value: "https://echo.hoppscotch.io",
+              secret: false,
             },
           ],
           selected: [],
@@ -80,12 +82,14 @@ describe("pw.env.unset", () => {
             {
               key: "baseUrl",
               value: "https://httpbin.org",
+              secret: false,
             },
           ],
           selected: [
             {
               key: "baseUrl",
               value: "https://echo.hoppscotch.io",
+              secret: false,
             },
           ],
         }
@@ -96,6 +100,7 @@ describe("pw.env.unset", () => {
           {
             key: "baseUrl",
             value: "https://httpbin.org",
+            secret: false,
           },
         ],
         selected: [],
@@ -114,16 +119,19 @@ describe("pw.env.unset", () => {
             {
               key: "baseUrl",
               value: "https://echo.hoppscotch.io",
+              secret: false,
             },
           ],
           selected: [
             {
               key: "baseUrl",
               value: "https://httpbin.org",
+              secret: false,
             },
             {
               key: "baseUrl",
               value: "https://echo.hoppscotch.io",
+              secret: false,
             },
           ],
         }
@@ -134,12 +142,14 @@ describe("pw.env.unset", () => {
           {
             key: "baseUrl",
             value: "https://echo.hoppscotch.io",
+            secret: false,
           },
         ],
         selected: [
           {
             key: "baseUrl",
             value: "https://echo.hoppscotch.io",
+            secret: false,
           },
         ],
       })
@@ -157,10 +167,12 @@ describe("pw.env.unset", () => {
             {
               key: "baseUrl",
               value: "https://httpbin.org/",
+              secret: false,
             },
             {
               key: "baseUrl",
               value: "https://echo.hoppscotch.io",
+              secret: false,
             },
           ],
           selected: [],
@@ -172,6 +184,7 @@ describe("pw.env.unset", () => {
           {
             key: "baseUrl",
             value: "https://echo.hoppscotch.io",
+            secret: false,
           },
         ],
         selected: [],
@@ -225,6 +238,7 @@ describe("pw.env.unset", () => {
             {
               key: "baseUrl",
               value: "https://echo.hoppscotch.io",
+              secret: false,
             },
           ],
         }
diff --git a/packages/hoppscotch-js-sandbox/src/types/index.ts b/packages/hoppscotch-js-sandbox/src/types/index.ts
index 1b426d9a5..71d89d542 100644
--- a/packages/hoppscotch-js-sandbox/src/types/index.ts
+++ b/packages/hoppscotch-js-sandbox/src/types/index.ts
@@ -1,5 +1,3 @@
-import { Environment } from "@hoppscotch/data"
-
 /**
  * The response object structure exposed to the test script
  */
@@ -43,6 +41,13 @@ export type TestDescriptor = {
   children: TestDescriptor[]
 }
 
+// Representation of a transformed state for environment variables in the sandbox
+type TransformedEnvironmentVariable = {
+  key: string
+  value: string
+  secret: boolean
+}
+
 /**
  * Defines the result of a test script execution
  */
@@ -50,8 +55,8 @@ export type TestDescriptor = {
 export type TestResult = {
   tests: TestDescriptor[]
   envs: {
-    global: Environment["variables"]
-    selected: Environment["variables"]
+    global: TransformedEnvironmentVariable[]
+    selected: TransformedEnvironmentVariable[]
   }
 }
 
diff --git a/packages/hoppscotch-js-sandbox/src/utils.ts b/packages/hoppscotch-js-sandbox/src/utils.ts
index f7920ff88..a6d298c23 100644
--- a/packages/hoppscotch-js-sandbox/src/utils.ts
+++ b/packages/hoppscotch-js-sandbox/src/utils.ts
@@ -38,13 +38,20 @@ const setEnv = (
   const indexInGlobal = findEnvIndex(envName, global)
 
   if (indexInSelected >= 0) {
-    selected[indexInSelected].value = envValue
+    const selectedEnv = selected[indexInSelected]
+    if ("value" in selectedEnv) {
+      selectedEnv.value = envValue
+    }
   } else if (indexInGlobal >= 0) {
-    global[indexInGlobal].value = envValue
+    if ("value" in global[indexInGlobal]) {
+      // eslint-disable-next-line @typescript-eslint/no-extra-semi
+      ;(global[indexInGlobal] as { value: string }).value = envValue
+    }
   } else {
     selected.push({
       key: envName,
       value: envValue,
+      secret: false,
     })
   }
 
@@ -86,9 +93,9 @@ const getSharedMethods = (envs: TestResult["envs"]) => {
 
     const result = pipe(
       getEnv(key, updatedEnvs),
-      O.match(
+      O.fold(
         () => undefined,
-        ({ value }) => String(value)
+        (env) => String(env.value)
       )
     )
 
@@ -104,14 +111,13 @@ const getSharedMethods = (envs: TestResult["envs"]) => {
       getEnv(key, updatedEnvs),
       E.fromOption(() => "INVALID_KEY" as const),
 
-      E.map(({ value }) =>
+      E.map((e) =>
         pipe(
-          parseTemplateStringE(value, [
+          parseTemplateStringE(e.value, [
             ...updatedEnvs.selected,
             ...updatedEnvs.global,
-          ]),
-          // If the recursive resolution failed, return the unresolved value
-          E.getOrElse(() => value)
+          ]), // If the recursive resolution failed, return the unresolved value
+          E.getOrElse(() => e.value)
         )
       ),
       E.map((x) => String(x)),
diff --git a/packages/hoppscotch-selfhost-web/src/platform/environments/environments.platform.ts b/packages/hoppscotch-selfhost-web/src/platform/environments/environments.platform.ts
index 93b88cac5..a348f10ed 100644
--- a/packages/hoppscotch-selfhost-web/src/platform/environments/environments.platform.ts
+++ b/packages/hoppscotch-selfhost-web/src/platform/environments/environments.platform.ts
@@ -81,6 +81,7 @@ async function loadUserEnvironments() {
       runDispatchWithOutSyncing(() => {
         replaceEnvironments(
           environments.map(({ id, variables, name }) => ({
+            v: 1,
             id,
             name,
             variables: JSON.parse(variables),
@@ -164,6 +165,7 @@ function setupUserEnvironmentUpdatedSubscription() {
         if ((localIndex || localIndex == 0) && name) {
           runDispatchWithOutSyncing(() => {
             updateEnvironment(localIndex, {
+              v: 1,
               id,
               name,
               variables: JSON.parse(variables),
diff --git a/packages/hoppscotch-selfhost-web/src/platform/environments/environments.sync.ts b/packages/hoppscotch-selfhost-web/src/platform/environments/environments.sync.ts
index fb4094204..193aa3282 100644
--- a/packages/hoppscotch-selfhost-web/src/platform/environments/environments.sync.ts
+++ b/packages/hoppscotch-selfhost-web/src/platform/environments/environments.sync.ts
@@ -20,10 +20,14 @@ import {
   deleteUserEnvironment,
   updateUserEnvironment,
 } from "./environments.api"
+import { SecretEnvironmentService } from "@hoppscotch/common/services/secret-environment.service"
+import { getService } from "@hoppscotch/common/modules/dioc"
 
 export const environmentsMapper = createMapper<number, string>()
 export const globalEnvironmentMapper = createMapper<number, string>()
 
+const secretEnvironmentService = getService(SecretEnvironmentService)
+
 export const storeSyncDefinition: StoreSyncDefinitionOf<
   typeof environmentsStore
 > = {
@@ -34,6 +38,12 @@ export const storeSyncDefinition: StoreSyncDefinitionOf<
 
     if (E.isRight(res)) {
       const id = res.right.createUserEnvironment.id
+
+      secretEnvironmentService.updateSecretEnvironmentID(
+        environmentsStore.value.environments[lastCreatedEnvIndex].id,
+        id
+      )
+
       environmentsStore.value.environments[lastCreatedEnvIndex].id = id
       removeDuplicateEntry(id)
     }
@@ -84,7 +94,6 @@ export const storeSyncDefinition: StoreSyncDefinitionOf<
   },
   updateEnvironment({ envIndex, updatedEnv }) {
     const backendId = environmentsStore.value.environments[envIndex].id
-
     if (backendId) {
       updateUserEnvironment(backendId, updatedEnv)()
     }
@@ -97,7 +106,12 @@ export const storeSyncDefinition: StoreSyncDefinitionOf<
   setGlobalVariables({ entries }) {
     const backendId = getGlobalVariableID()
     if (backendId) {
-      updateUserEnvironment(backendId, { name: "", variables: entries })()
+      updateUserEnvironment(backendId, {
+        name: "",
+        variables: entries,
+        id: "",
+        v: 1,
+      })()
     }
   },
   clearGlobalVariables() {