diff --git a/docs/tech_docs/Python-Virtual-Environments.md b/docs/tech_docs/Python-Virtual-Environments.md
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@@ -217,4 +217,66 @@ Organizing virtual environments is crucial for maintaining a clean and efficient
 
 These guidelines aim to provide a structured approach to managing Python virtual environments, enhancing clarity and efficiency in your development workflow.
 
+---
+
+# Managing Environment Variables in Python Virtual Environments
+
+Using `.env` files for environment-specific settings is a best practice in Python development. This guide explains how to set up and use `.env` files within virtual environments.
+
+## What are `.env` Files?
+
+- `.env` files are simple text files that contain environment variables.
+- They are used to store configuration settings that should not be hard-coded in your code, such as API keys, database URLs, and other sensitive information.
+
+## Setting Up `.env` Files
+
+### 1. Creating `.env` File
+
+- Place a `.env` file in your project's root directory.
+- Add environment variables in the format `KEY=value`.
+
+  \```plaintext
+  # Example .env file
+  DATABASE_URL=postgresql://user:password@localhost/mydatabase
+  API_KEY=yourapikey
+  \```
+
+### 2. Using `python-dotenv` to Load Variables
+
+- Install `python-dotenv` to easily load the variables from `.env` file.
+
+  \```bash
+  pip install python-dotenv
+  \```
+
+- Import `dotenv` in your main script and load the variables.
+
+  \```python
+  from dotenv import load_dotenv
+  load_dotenv()
+  \```
+
+## Accessing Environment Variables
+
+- Access variables using `os.environ`.
+
+  \```python
+  import os
+  database_url = os.getenv('DATABASE_URL')
+  api_key = os.getenv('API_KEY')
+  \```
+
+## Best Practices
+
+- **Never Commit `.env` Files**: Add `.env` to your `.gitignore` file to prevent sensitive information from being committed to version control.
+- **Use Different `.env` Files for Different Environments**: For example, `.env.development`, `.env.production` for different deployment stages.
+- **Keep `.env` File Updated**: Regularly update the `.env` file with any new or changed environment variables.
+
+## Security Considerations
+
+- Keep your `.env` files secure and only share them with trusted team members.
+- Regularly audit the environment variables and remove any that are no longer in use.
+
+By following these practices, you can securely manage environment-specific settings in your Python projects, keeping sensitive information out of your source code.
+
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