diff --git a/docs/config.md b/docs/config.md
index 74c4a3b..77b7df7 100644
--- a/docs/config.md
+++ b/docs/config.md
@@ -12,4 +12,39 @@ To see the configuration file path and activated configuration, run:
 pmg setup info
 ```
 
-See [config template](../config/config.template.yml) for the configuration schema.
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+See [config template](../config/config.template.yml) for the configuration schema.
+
+## Environment Variables
+
+Any configuration key can be overridden using environment variables, without modifying the config file. This is useful for CI/CD pipelines or temporary overrides.
+
+**Format:** `PMG_<KEY>` where the key is the config key uppercased, with nested keys joined by `_`.
+
+| Config key | Environment variable |
+|---|---|
+| `transitive` | `PMG_TRANSITIVE` |
+| `paranoid` | `PMG_PARANOID` |
+| `proxy_mode` | `PMG_PROXY_MODE` |
+| `proxy_install_only` | `PMG_PROXY_INSTALL_ONLY` |
+| `verbosity` | `PMG_VERBOSITY` |
+| `skip_event_logging` | `PMG_SKIP_EVENT_LOGGING` |
+| `sandbox.enabled` | `PMG_SANDBOX_ENABLED` |
+| `dependency_cooldown.enabled` | `PMG_DEPENDENCY_COOLDOWN_ENABLED` |
+| `cloud.enabled` | `PMG_CLOUD_ENABLED` |
+
+**Example:**
+
+```bash
+# Enable paranoid mode without editing the config file
+PMG_PARANOID=true pmg npm install express
+
+# Restrict proxy to install commands only
+PMG_PROXY_INSTALL_ONLY=true pmg npm install express
+```
+
+**Precedence (highest to lowest):**
+
+1. CLI flags
+2. Environment variables (`PMG_*`)
+3. Config file (`config.yml`)
+4. Built-in defaults
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