diff --git a/README.md b/README.md
index f15a814..8bce507 100644
--- a/README.md
+++ b/README.md
@@ -77,11 +77,13 @@ uv sync
 The easiest way to run the Unraid MCP Server is with Docker:
 
 ```bash
-# Clone and configure
+# Clone repository
 git clone https://github.com/jmagar/unraid-mcp
 cd unraid-mcp
-cp .env.example .env
-# Edit .env with your Unraid API details
+
+# Set required environment variables
+export UNRAID_API_URL="http://your-unraid-server/graphql"
+export UNRAID_API_KEY="your_api_key_here"
 
 # Deploy with Docker Compose
 docker compose up -d
@@ -97,7 +99,8 @@ docker build -t unraid-mcp-server .
 docker run -d --name unraid-mcp \
   --restart unless-stopped \
   -p 6970:6970 \
-  --env-file .env \
+  -e UNRAID_API_URL="http://your-unraid-server/graphql" \
+  -e UNRAID_API_KEY="your_api_key_here" \
   unraid-mcp-server
 ```
 
diff --git a/docker-compose.yml b/docker-compose.yml
index f9cec53..5544c21 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -8,9 +8,30 @@ services:
     ports:
       # HostPort:ContainerPort (maps to UNRAID_MCP_PORT inside the container, default 6970)
       # Change the host port (left side) if 6970 is already in use on your host
-      - "6970:6970" 
-    env_file:
-      - .env # Loads environment variables from .env in the same directory as this docker-compose.yml
-    # Optional: If you want to mount a specific directory for logs (ensure UNRAID_MCP_LOG_FILE in .env points within this mount)
+      - "${UNRAID_MCP_PORT:-6970}:${UNRAID_MCP_PORT:-6970}"
+    environment:
+      # Core API Configuration (Required)
+      - UNRAID_API_URL=${UNRAID_API_URL}
+      - UNRAID_API_KEY=${UNRAID_API_KEY}
+      
+      # MCP Server Settings
+      - UNRAID_MCP_PORT=${UNRAID_MCP_PORT:-6970}
+      - UNRAID_MCP_HOST=${UNRAID_MCP_HOST:-0.0.0.0}
+      - UNRAID_MCP_TRANSPORT=${UNRAID_MCP_TRANSPORT:-streamable-http}
+      
+      # SSL Configuration
+      - UNRAID_VERIFY_SSL=${UNRAID_VERIFY_SSL:-true}
+      
+      # Logging Configuration
+      - UNRAID_MCP_LOG_LEVEL=${UNRAID_MCP_LOG_LEVEL:-INFO}
+      - UNRAID_MCP_LOG_FILE=${UNRAID_MCP_LOG_FILE:-unraid-mcp.log}
+      
+      # Real-time Subscription Configuration
+      - UNRAID_AUTO_START_SUBSCRIPTIONS=${UNRAID_AUTO_START_SUBSCRIPTIONS:-true}
+      - UNRAID_MAX_RECONNECT_ATTEMPTS=${UNRAID_MAX_RECONNECT_ATTEMPTS:-10}
+      
+      # Optional: Custom log file path for subscription auto-start diagnostics
+      - UNRAID_AUTOSTART_LOG_PATH=${UNRAID_AUTOSTART_LOG_PATH}
+    # Optional: If you want to mount a specific directory for logs (ensure UNRAID_MCP_LOG_FILE points within this mount)
     # volumes:
     #   - ./logs:/app/logs # Example: maps ./logs on host to /app/logs in container