diff --git a/pkg/config/README.md b/pkg/config/README.md
index a158dcf..cba4463 100644
--- a/pkg/config/README.md
+++ b/pkg/config/README.md
@@ -1,6 +1,14 @@
 # Environment-Based Configuration System
 
-This package provides a configuration system for the Tender Management backend that loads configuration exclusively from `.env` files. It maintains the same structure as the previous YAML-based system while using environment variables for all configuration values.
+This package provides a configuration system for the Tender Management backend that loads configuration from both OS environment variables and `.env` files, with **OS environment variables taking priority** over `.env` file values. It maintains the same structure as the previous YAML-based system while using environment variables for all configuration values.
+
+## Priority System
+
+The configuration loader follows this priority order:
+1. **OS Environment Variables** (highest priority) - System-level environment variables
+2. **`.env` File Values** (lower priority) - File-based configuration for development
+
+This means that if you set `SERVER_PORT=8080` in your `.env` file but have `SERVER_PORT=9000` as an OS environment variable, the system will use `9000`.
 
 ## Architecture
 
@@ -63,7 +71,9 @@ func initConfig() Config {
 }
 ```
 
-### 3. Create .env Configuration File
+### 3. Configuration Sources
+
+#### Option A: Using .env File Only (Development)
 
 Create a `.env` file in your command directory:
 
@@ -104,6 +114,82 @@ SOME_TIMEOUT=30s
 SOME_NUMBER=42
 ```
 
+#### Option B: Using OS Environment Variables (Production)
+
+```bash
+# Set environment variables directly
+export SERVER_HOST=0.0.0.0
+export SERVER_PORT=8080
+export MONGODB_URI=mongodb://mongo:27017
+export MONGODB_NAME=production_db
+export LOG_LEVEL=error
+
+# Run your application
+./your-command
+```
+
+#### Option C: Mixed Approach (Recommended)
+
+1. Create a `.env` file with development defaults
+2. Override specific values with OS environment variables for production:
+
+```bash
+# .env file contains development defaults
+# Override critical values with OS env vars
+export MONGODB_URI=mongodb://production-server:27017
+export MONGODB_NAME=production_db
+export LOG_LEVEL=error
+
+# Run application - will use .env defaults except for overridden values
+./your-command
+```
+
+## Priority Example
+
+Given this `.env` file:
+```env
+SERVER_HOST=localhost
+SERVER_PORT=8080
+LOG_LEVEL=debug
+```
+
+And these OS environment variables:
+```bash
+export SERVER_PORT=9000
+export LOG_LEVEL=error
+```
+
+The final configuration will be:
+- `SERVER_HOST=localhost` (from .env file, no OS override)
+- `SERVER_PORT=9000` (OS environment variable overrides .env)
+- `LOG_LEVEL=error` (OS environment variable overrides .env)
+
+## Advanced Features
+
+### Checking Configuration Source
+
+You can check whether a configuration value came from OS environment or .env file:
+
+```go
+import "tm/pkg/config"
+
+func main() {
+    value, isFromOS := config.GetEnvWithPriority("SERVER_PORT")
+    if isFromOS {
+        fmt.Printf("SERVER_PORT=%s (from OS environment)\n", value)
+    } else {
+        fmt.Printf("SERVER_PORT=%s (from .env file)\n", value)
+    }
+}
+```
+
+### Graceful .env File Handling
+
+The system gracefully handles missing `.env` files:
+- If `.env` file exists: loads values as defaults
+- If `.env` file is missing: continues with OS environment variables only
+- No errors are thrown for missing `.env` files
+
 ## Examples
 
 ### Web Command Config
@@ -164,9 +250,11 @@ type ScraperConfig struct {
 
 The configuration loader uses Go generics to provide type-safe configuration loading. The function signature ensures that you get back exactly the type you expect.
 
-### Environment Variable Support
+### Environment Variable Priority
 
-The configuration system loads all values from `.env` files using the `github.com/subosito/gotenv` library.
+The configuration system loads values with explicit priority:
+1. OS environment variables (system-level, highest priority)
+2. .env file values (file-based, development defaults)
 
 ### Reflection-Based Parsing
 
@@ -193,7 +281,11 @@ The configuration system supports the following Go types:
 
 5. **Use appropriate types**: Use `time.Duration` for durations, proper numeric types for numbers, etc.
 
-6. **Provide sensible defaults**: Consider providing sensible defaults in your code when environment variables are not set.
+6. **Provide sensible defaults in .env**: Use `.env` files to provide development defaults and override with OS environment variables for production.
+
+7. **Leverage the priority system**: Use `.env` for development defaults and OS environment variables for production overrides.
+
+8. **Keep secrets in OS environment variables**: Never put sensitive values like API keys or passwords in `.env` files; use OS environment variables instead.
 
 ## Migration from YAML System
 
@@ -223,7 +315,7 @@ type Config struct {
 // Old way (YAML loading)
 conf, err := config.LoadConfig(".", &Config{})
 
-// New way (.env loading)
+// New way (.env loading) - same API!
 conf, err := config.LoadConfig(".", &Config{})
 ```
 
@@ -240,13 +332,51 @@ The system follows these naming conventions:
 ## Error Handling
 
 The configuration system provides detailed error messages when:
-- The `.env` file cannot be loaded
+- The `.env` file exists but cannot be loaded
 - Environment variables cannot be parsed into the expected types
 - Required fields are missing (handled by your application logic)
 
+Note: Missing `.env` files do not cause errors - the system will continue with OS environment variables only.
+
 ## Security Considerations
 
-1. **Never commit `.env` files**: Add `.env` to your `.gitignore` file
-2. **Use environment-specific files**: Create different `.env` files for different environments (`.env.local`, `.env.production`, etc.)
-3. **Validate sensitive values**: Always validate sensitive configuration values like API keys and database URIs
-4. **Use secure defaults**: Provide secure default values for security-related configuration
+1. **Never commit `.env` files with secrets**: Add `.env` to your `.gitignore` file and never include sensitive values
+2. **Use OS environment variables for production secrets**: Set sensitive values like API keys and database passwords as OS environment variables
+3. **Use environment-specific files**: Create different `.env` files for different environments (`.env.local`, `.env.development`, etc.)
+4. **Validate sensitive values**: Always validate sensitive configuration values like API keys and database URIs
+5. **Use secure defaults**: Provide secure default values for security-related configuration
+6. **Leverage priority system for security**: Keep development defaults in `.env` and override with secure OS environment variables in production
+
+## Deployment Strategies
+
+### Development
+```bash
+# Use .env file for all configuration
+./your-command
+```
+
+### Staging
+```bash
+# Use .env for defaults, override key values
+export MONGODB_URI=mongodb://staging-db:27017
+export LOG_LEVEL=warn
+./your-command
+```
+
+### Production
+```bash
+# Override all critical values with OS environment variables
+export MONGODB_URI=mongodb://prod-cluster:27017
+export MONGODB_NAME=production
+export LOG_LEVEL=error
+export SERVER_HOST=0.0.0.0
+./your-command
+```
+
+### Docker
+```dockerfile
+# Set production values in Dockerfile or docker-compose
+ENV MONGODB_URI=mongodb://mongo:27017
+ENV LOG_LEVEL=info
+ENV SERVER_HOST=0.0.0.0
+```
diff --git a/pkg/config/config.go b/pkg/config/config.go
index 6c05f12..dc178e6 100644
--- a/pkg/config/config.go
+++ b/pkg/config/config.go
@@ -65,15 +65,24 @@ type RateLimitConfig struct {
 	Burst             int `env:"RATE_LIMIT_BURST"`
 }
 
-// LoadConfig loads configuration from .env file
+// LoadConfig loads configuration with priority: OS environment variables > .env file
+// OS environment variables take precedence over .env file values
 func LoadConfig[T any](path string, config T) (T, error) {
-	// Load .env file
+	// First, try to load .env file (this will not override existing OS env vars)
 	envPath := fmt.Sprintf("%s/.env", path)
-	if err := gotenv.Load(envPath); err != nil {
-		return config, fmt.Errorf("failed to load .env file from %s: %w", envPath, err)
+
+	// Check if .env file exists before trying to load it
+	if _, err := os.Stat(envPath); err == nil {
+		// Load .env file - gotenv.Load respects existing environment variables
+		// and will not override them with values from the .env file
+		if err := gotenv.Load(envPath); err != nil {
+			return config, fmt.Errorf("failed to load .env file from %s: %w", envPath, err)
+		}
 	}
+	// If .env file doesn't exist, we continue with OS environment variables only
 
 	// Parse configuration using reflection
+	// This will use OS env vars first, then fall back to values loaded from .env
 	if err := parseConfig(config); err != nil {
 		return config, fmt.Errorf("failed to parse configuration: %w", err)
 	}
@@ -82,6 +91,9 @@ func LoadConfig[T any](path string, config T) (T, error) {
 }
 
 // parseConfig uses reflection to parse environment variables into the config struct
+// Environment variables are read with the following priority:
+// 1. OS environment variables (highest priority)
+// 2. Values from .env file (loaded by gotenv.Load, lower priority)
 func parseConfig(config interface{}) error {
 	v := reflect.ValueOf(config)
 	if v.Kind() != reflect.Ptr {
@@ -122,6 +134,7 @@ func parseStruct(v reflect.Value) error {
 		}
 
 		// Get environment variable value
+		// os.Getenv will return OS env vars first, then values loaded from .env
 		envValue := os.Getenv(envTag)
 		if envValue == "" {
 			continue
@@ -129,7 +142,7 @@ func parseStruct(v reflect.Value) error {
 
 		// Parse and set the field value
 		if err := setFieldValue(field, envValue); err != nil {
-			return fmt.Errorf("failed to set field %s: %w", fieldType.Name, err)
+			return fmt.Errorf("failed to set field %s (env: %s): %w", fieldType.Name, envTag, err)
 		}
 	}
 
@@ -176,6 +189,22 @@ func setFieldValue(field reflect.Value, value string) error {
 	return nil
 }
 
+// GetEnvWithPriority gets environment variable with explicit priority handling
+// Returns the value and a boolean indicating the source (true = OS env, false = .env file)
+func GetEnvWithPriority(key string) (string, bool) {
+	// Check if the value exists in OS environment
+	if value, exists := os.LookupEnv(key); exists {
+		return value, true // From OS environment
+	}
+
+	// If not in OS environment, it might be from .env file
+	if value := os.Getenv(key); value != "" {
+		return value, false // From .env file
+	}
+
+	return "", false
+}
+
 // Helper function to get environment variable with default value
 func getEnv(key, defaultValue string) string {
 	if value := os.Getenv(key); value != "" {