diff --git a/.env b/.env
new file mode 100644
index 0000000..b1baa65
--- /dev/null
+++ b/.env
@@ -0,0 +1,5 @@
+# Base Configuration
+DATABASE_URL=postgres://postgres:password@localhost:5432/counter_db?sslmode=disable
+PORT=8080
+LOG_LEVEL=info
+GIN_MODE=debug
diff --git a/.env.development b/.env.development
new file mode 100644
index 0000000..5d286aa
--- /dev/null
+++ b/.env.development
@@ -0,0 +1,7 @@
+# Development Environment
+ENVIRONMENT=development
+DATABASE_URL=postgres://postgres:password@postgres:5432/counter_db?sslmode=disable
+JWT_SECRET=dev-secret-key-change-in-production
+PORT=8080
+GIN_MODE=debug
+LOG_LEVEL=debug
diff --git a/.env.production b/.env.production
new file mode 100644
index 0000000..3512ca5
--- /dev/null
+++ b/.env.production
@@ -0,0 +1,7 @@
+# Production Environment
+ENVIRONMENT=production
+DATABASE_URL=postgres://postgres:password@postgres:5432/counter_db?sslmode=disable
+JWT_SECRET=super-secure-production-secret-change-this
+PORT=8080
+GIN_MODE=release
+LOG_LEVEL=warn
diff --git a/.env.staging b/.env.staging
new file mode 100644
index 0000000..84bc4b7
--- /dev/null
+++ b/.env.staging
@@ -0,0 +1,7 @@
+# Staging Environment
+ENVIRONMENT=staging
+DATABASE_URL=postgres://postgres:password@postgres:5432/counter_db?sslmode=disable
+JWT_SECRET=staging-secret-key-change-this
+PORT=8080
+GIN_MODE=release
+LOG_LEVEL=info
diff --git a/.gitignore b/.gitignore
index 89a34c3..f4f1ef1 100644
--- a/.gitignore
+++ b/.gitignore
@@ -17,12 +17,12 @@
 # Go workspace file
 go.work
 
-# Environment variables
-.env
-.env.local
-.env.development.local
-.env.test.local
-.env.production.local
+# Environment variables (keeping all env files in git as requested)
+# .env
+# .env.local
+# .env.development.local
+# .env.test.local
+# .env.production.local
 
 # Node.js
 node_modules/
diff --git a/Dockerfile b/Dockerfile
index 8f2e668..e727491 100644
--- a/Dockerfile
+++ b/Dockerfile
@@ -9,8 +9,9 @@ COPY go.mod go.sum ./
 # Download dependencies
 RUN go mod download
 
-# Copy source code
+# Copy source code and environment files
 COPY *.go ./
+COPY .env* ./
 
 # Build the application
 RUN CGO_ENABLED=0 GOOS=linux go build -a -installsuffix cgo -o main .
@@ -43,6 +44,9 @@ WORKDIR /root/
 # Copy the Go binary from go-builder stage
 COPY --from=go-builder /app/main .
 
+# Copy environment files from go-builder stage
+COPY --from=go-builder /app/.env* ./
+
 # Copy the React build from frontend-builder stage
 COPY --from=frontend-builder /app/frontend/build ./frontend/build
 
diff --git a/auth.go b/auth.go
index cfc2743..a7396d6 100644
--- a/auth.go
+++ b/auth.go
@@ -17,7 +17,7 @@ import (
 
 var jwtSecret []byte
 
-// InitJWT initializes JWT secret
+// InitJWT initializes JWT secret (legacy function)
 func InitJWT() {
 	secret := os.Getenv("JWT_SECRET")
 	if secret == "" {
@@ -28,6 +28,11 @@ func InitJWT() {
 	jwtSecret = []byte(secret)
 }
 
+// InitJWTWithConfig initializes JWT secret with configuration
+func InitJWTWithConfig(config *Config) {
+	jwtSecret = []byte(config.JWTSecret)
+}
+
 // generateRandomSecret generates a random secret for JWT
 func generateRandomSecret() string {
 	b := make([]byte, 32)
diff --git a/config.go b/config.go
new file mode 100644
index 0000000..264591f
--- /dev/null
+++ b/config.go
@@ -0,0 +1,216 @@
+package main
+
+import (
+	"fmt"
+	"log"
+	"os"
+	"strings"
+
+	"github.com/joho/godotenv"
+)
+
+type Environment string
+
+const (
+	Development Environment = "development"
+	Staging     Environment = "staging"
+	Production  Environment = "production"
+)
+
+type Config struct {
+	Environment Environment
+	DatabaseURL string
+	JWTSecret   string
+	Port        string
+	GinMode     string
+	LogLevel    string
+	Debug       bool
+}
+
+// LoadConfig loads configuration with proper environment file precedence
+func LoadConfig() *Config {
+	// Load environment files in priority order
+	loadEnvironmentFiles()
+
+	// Get environment
+	env := getEnvironment()
+
+	// Load configuration
+	config := &Config{
+		Environment: env,
+		DatabaseURL: getEnv("DATABASE_URL", getDefaultDatabaseURL(env)),
+		JWTSecret:   getRequiredEnv("JWT_SECRET"),
+		Port:        getEnv("PORT", "8080"),
+		GinMode:     getGinMode(env),
+		LogLevel:    getLogLevel(env),
+		Debug:       env == Development,
+	}
+
+	// Log configuration (without sensitive data)
+	logConfig(config)
+
+	return config
+}
+
+// loadEnvironmentFiles loads environment files in priority order
+func loadEnvironmentFiles() {
+	// Get environment first (from system env or default)
+	env := getEnvironmentFromSystem()
+
+	log.Printf("🔍 Detected environment: %s", env)
+
+	// Define file loading order (later files override earlier ones)
+	files := []string{
+		".env",                      // Base configuration
+		fmt.Sprintf(".env.%s", env), // Environment-specific
+	}
+
+	// Load files in order
+	for _, file := range files {
+		if _, err := os.Stat(file); err == nil {
+			if err := godotenv.Load(file); err != nil {
+				log.Printf("⚠️  Warning: Could not load %s: %v", file, err)
+			} else {
+				log.Printf("✅ Loaded: %s", file)
+			}
+		} else {
+			log.Printf("❌ Not found: %s", file)
+		}
+	}
+}
+
+// getEnvironmentFromSystem gets environment from system variables only
+func getEnvironmentFromSystem() string {
+	// Check if ENVIRONMENT is already set
+	if env := os.Getenv("ENVIRONMENT"); env != "" {
+		return strings.ToLower(env)
+	}
+
+	// Fallback detection
+	if ginMode := os.Getenv("GIN_MODE"); ginMode == "release" {
+		return "production"
+	}
+
+	return "development"
+}
+
+// getEnvironment gets the current environment
+func getEnvironment() Environment {
+	env := strings.ToLower(getEnv("ENVIRONMENT", "development"))
+
+	switch env {
+	case "development", "dev":
+		return Development
+	case "staging", "stage":
+		return Staging
+	case "production", "prod":
+		return Production
+	default:
+		log.Printf("⚠️  Unknown environment '%s', defaulting to development", env)
+		return Development
+	}
+}
+
+// getGinMode returns the appropriate Gin mode for the environment
+func getGinMode(env Environment) string {
+	switch env {
+	case Production, Staging:
+		return "release"
+	case Development:
+		return "debug"
+	default:
+		return "debug"
+	}
+}
+
+// getLogLevel returns the appropriate log level for the environment
+func getLogLevel(env Environment) string {
+	switch env {
+	case Production:
+		return "warn"
+	case Staging:
+		return "info"
+	case Development:
+		return "debug"
+	default:
+		return "debug"
+	}
+}
+
+// getDefaultDatabaseURL returns default database URL for environment
+func getDefaultDatabaseURL(env Environment) string {
+	switch env {
+	case Development:
+		return "postgres://postgres:password@localhost:5432/counter_db?sslmode=disable"
+	case Staging:
+		return "postgres://postgres:password@postgres:5432/counter_db?sslmode=disable"
+	case Production:
+		return "postgres://postgres:password@postgres:5432/counter_db?sslmode=require"
+	default:
+		return "postgres://postgres:password@localhost:5432/counter_db?sslmode=disable"
+	}
+}
+
+// getEnv gets environment variable with default value
+func getEnv(key, defaultValue string) string {
+	if value := os.Getenv(key); value != "" {
+		return value
+	}
+	return defaultValue
+}
+
+// getRequiredEnv gets required environment variable
+func getRequiredEnv(key string) string {
+	value := os.Getenv(key)
+	if value == "" {
+		log.Fatalf("❌ Required environment variable %s is not set", key)
+	}
+	return value
+}
+
+// logConfig logs configuration (without sensitive data)
+func logConfig(config *Config) {
+	// Environment banner
+	log.Printf("")
+	log.Printf("╔══════════════════════════════════════════════════════════════╗")
+	log.Printf("║                    COUNTER APPLICATION                      ║")
+	log.Printf("║                                                              ║")
+	log.Printf("║  🌍 ENVIRONMENT: %-15s                              ║", strings.ToUpper(string(config.Environment)))
+	log.Printf("║  🚀 MODE: %-20s                              ║", config.GinMode)
+	log.Printf("║  🔧 DEBUG: %-20s                              ║", fmt.Sprintf("%t", config.Debug))
+	log.Printf("║  📊 LOG LEVEL: %-15s                              ║", config.LogLevel)
+	log.Printf("║  🌐 PORT: %-20s                              ║", config.Port)
+	log.Printf("║                                                              ║")
+	log.Printf("║  📁 Configuration Files Loaded:                              ║")
+	log.Printf("║     • .env (base configuration)                              ║")
+	log.Printf("║     • .env.%s (environment-specific)                     ║", config.Environment)
+	log.Printf("║                                                              ║")
+	log.Printf("║  🔐 Security:                                                ║")
+	log.Printf("║     • Database: %s ║", maskDatabaseURL(config.DatabaseURL))
+	log.Printf("║     • JWT Secret: %s ║", maskSecret(config.JWTSecret))
+	log.Printf("║                                                              ║")
+	log.Printf("╚══════════════════════════════════════════════════════════════╝")
+	log.Printf("")
+}
+
+// maskDatabaseURL masks sensitive parts of database URL
+func maskDatabaseURL(url string) string {
+	// Simple masking - replace password with ***
+	if strings.Contains(url, "://") {
+		parts := strings.Split(url, "://")
+		if len(parts) == 2 {
+			// Replace password in connection string
+			masked := strings.Replace(parts[1], ":", ":***@", 1)
+			return parts[0] + "://" + masked
+		}
+	}
+	return "***"
+}
+
+// maskSecret masks JWT secret for logging
+func maskSecret(secret string) string {
+	if len(secret) <= 8 {
+		return "***"
+	}
+	return secret[:4] + "***" + secret[len(secret)-4:]
+}
diff --git a/database.go b/database.go
index d1dc564..b2369f0 100644
--- a/database.go
+++ b/database.go
@@ -11,7 +11,7 @@ import (
 
 var db *sql.DB
 
-// InitDB initializes the database connection
+// InitDB initializes the database connection (legacy function)
 func InitDB() error {
 	// Get database URL from environment variable
 	dbURL := os.Getenv("DATABASE_URL")
@@ -19,6 +19,16 @@ func InitDB() error {
 		// Default for local development
 		dbURL = "postgres://postgres:password@localhost:5432/counter_db?sslmode=disable"
 	}
+	return initDBWithURL(dbURL)
+}
+
+// InitDBWithConfig initializes the database connection with configuration
+func InitDBWithConfig(config *Config) error {
+	return initDBWithURL(config.DatabaseURL)
+}
+
+// initDBWithURL initializes the database connection with a specific URL
+func initDBWithURL(dbURL string) error {
 
 	var err error
 	db, err = sql.Open("postgres", dbURL)
@@ -31,7 +41,7 @@ func InitDB() error {
 		return fmt.Errorf("failed to ping database: %w", err)
 	}
 
-	log.Println("Database connection established")
+	log.Println("✅ Database connection established successfully")
 	return nil
 }
 
@@ -72,7 +82,7 @@ func CreateTables() error {
 		}
 	}
 
-	log.Println("Database tables created successfully")
+	log.Println("✅ Database tables created successfully")
 	return nil
 }
 
diff --git a/docker-compose.prod.yml b/docker-compose.prod.yml
new file mode 100644
index 0000000..53e7a75
--- /dev/null
+++ b/docker-compose.prod.yml
@@ -0,0 +1,6 @@
+services:
+  app:
+    environment:
+      - ENVIRONMENT=production
+    env_file:
+      - .env.production
diff --git a/docker-compose.staging.yml b/docker-compose.staging.yml
new file mode 100644
index 0000000..f57deea
--- /dev/null
+++ b/docker-compose.staging.yml
@@ -0,0 +1,6 @@
+services:
+  app:
+    environment:
+      - ENVIRONMENT=staging
+    env_file:
+      - .env.staging
diff --git a/docker-compose.yml b/docker-compose.yml
index f8d059f..57b8d60 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -20,9 +20,9 @@ services:
     ports:
       - "8080:8080"
     environment:
-      DATABASE_URL: postgres://postgres:password@postgres:5432/counter_db?sslmode=disable
-      JWT_SECRET: your-super-secret-jwt-key-change-in-production
-      GIN_MODE: release
+      - ENVIRONMENT=development
+    env_file:
+      - .env.development
     depends_on:
       postgres:
         condition: service_healthy
diff --git a/frontend/.env b/frontend/.env
new file mode 100644
index 0000000..627e4db
--- /dev/null
+++ b/frontend/.env
@@ -0,0 +1,4 @@
+# Base Frontend Configuration
+REACT_APP_API_URL=http://localhost:8080/api/v1
+REACT_APP_ENVIRONMENT=development
+REACT_APP_DEBUG=true
diff --git a/frontend/.env.development b/frontend/.env.development
new file mode 100644
index 0000000..422eeb7
--- /dev/null
+++ b/frontend/.env.development
@@ -0,0 +1,5 @@
+# Development Frontend Configuration
+REACT_APP_API_URL=http://localhost:8080/api/v1
+REACT_APP_ENVIRONMENT=development
+REACT_APP_DEBUG=true
+REACT_APP_LOG_LEVEL=debug
diff --git a/frontend/.env.production b/frontend/.env.production
new file mode 100644
index 0000000..768366e
--- /dev/null
+++ b/frontend/.env.production
@@ -0,0 +1,5 @@
+# Production Frontend Configuration
+REACT_APP_API_URL=/api/v1
+REACT_APP_ENVIRONMENT=production
+REACT_APP_DEBUG=false
+REACT_APP_LOG_LEVEL=warn
diff --git a/frontend/.env.staging b/frontend/.env.staging
new file mode 100644
index 0000000..9befba9
--- /dev/null
+++ b/frontend/.env.staging
@@ -0,0 +1,5 @@
+# Staging Frontend Configuration
+REACT_APP_API_URL=https://staging-api.yourdomain.com/api/v1
+REACT_APP_ENVIRONMENT=staging
+REACT_APP_DEBUG=false
+REACT_APP_LOG_LEVEL=info
diff --git a/frontend/src/config/environment.ts b/frontend/src/config/environment.ts
new file mode 100644
index 0000000..3343440
--- /dev/null
+++ b/frontend/src/config/environment.ts
@@ -0,0 +1,102 @@
+// Environment configuration for React frontend
+export type Environment = 'development' | 'staging' | 'production';
+
+export interface AppConfig {
+  environment: Environment;
+  apiUrl: string;
+  debug: boolean;
+  logLevel: string;
+}
+
+// Get environment from process.env
+export const getEnvironment = (): Environment => {
+  const env = process.env.REACT_APP_ENVIRONMENT as Environment;
+  
+  // Fallback to NODE_ENV if REACT_APP_ENVIRONMENT is not set
+  if (!env) {
+    const nodeEnv = process.env.NODE_ENV;
+    switch (nodeEnv) {
+      case 'production':
+        return 'production';
+      case 'development':
+        return 'development';
+      default:
+        return 'development';
+    }
+  }
+  
+  return env;
+};
+
+// Get API URL based on environment
+export const getApiUrl = (): string => {
+  const apiUrl = process.env.REACT_APP_API_URL;
+  
+  if (apiUrl) {
+    return apiUrl;
+  }
+  
+  // Fallback based on environment
+  const env = getEnvironment();
+  switch (env) {
+    case 'production':
+      return '/api/v1'; // Relative URL for production
+    case 'staging':
+      return 'https://staging-api.yourdomain.com/api/v1';
+    case 'development':
+    default:
+      return 'http://localhost:8080/api/v1';
+  }
+};
+
+// Get debug flag
+export const isDebugMode = (): boolean => {
+  const debug = process.env.REACT_APP_DEBUG;
+  if (debug !== undefined) {
+    return debug === 'true';
+  }
+  
+  // Fallback based on environment
+  return getEnvironment() === 'development';
+};
+
+// Get log level
+export const getLogLevel = (): string => {
+  return process.env.REACT_APP_LOG_LEVEL || 'info';
+};
+
+// Get complete app configuration
+export const getAppConfig = (): AppConfig => {
+  return {
+    environment: getEnvironment(),
+    apiUrl: getApiUrl(),
+    debug: isDebugMode(),
+    logLevel: getLogLevel(),
+  };
+};
+
+// Environment checks
+export const isDevelopment = (): boolean => {
+  return getEnvironment() === 'development';
+};
+
+export const isStaging = (): boolean => {
+  return getEnvironment() === 'staging';
+};
+
+export const isProduction = (): boolean => {
+  return getEnvironment() === 'production';
+};
+
+// Log configuration (only in development)
+export const logConfig = (): void => {
+  if (isDevelopment()) {
+    const config = getAppConfig();
+    console.log('🚀 Frontend Configuration:', {
+      environment: config.environment,
+      apiUrl: config.apiUrl,
+      debug: config.debug,
+      logLevel: config.logLevel,
+    });
+  }
+};
diff --git a/frontend/src/services/api.ts b/frontend/src/services/api.ts
index a713a02..d5eeaa6 100644
--- a/frontend/src/services/api.ts
+++ b/frontend/src/services/api.ts
@@ -12,8 +12,11 @@ import {
   CounterStats,
   User,
 } from '../types';
+import { getApiUrl, logConfig } from '../config/environment';
 
-const API_BASE_URL = process.env.REACT_APP_API_URL || '/api/v1';
+// Initialize configuration
+logConfig();
+const API_BASE_URL = getApiUrl();
 
 // Create axios instance
 const api = axios.create({
diff --git a/main.go b/main.go
index 187bb88..5c6d218 100644
--- a/main.go
+++ b/main.go
@@ -2,24 +2,23 @@ package main
 
 import (
 	"log"
-	"os"
 
 	"github.com/gin-contrib/cors"
 	"github.com/gin-gonic/gin"
-	"github.com/joho/godotenv"
 )
 
 func main() {
-	// Load environment variables
-	if err := godotenv.Load(); err != nil {
-		log.Println("No .env file found, using system environment variables")
-	}
+	// Load configuration with environment file precedence
+	config := LoadConfig()
 
-	// Initialize JWT
-	InitJWT()
+	// Set Gin mode based on configuration
+	gin.SetMode(config.GinMode)
 
-	// Initialize database
-	if err := InitDB(); err != nil {
+	// Initialize JWT with configuration
+	InitJWTWithConfig(config)
+
+	// Initialize database with configuration
+	if err := InitDBWithConfig(config); err != nil {
 		log.Fatal("Failed to initialize database:", err)
 	}
 
@@ -28,21 +27,16 @@ func main() {
 		log.Fatal("Failed to create tables:", err)
 	}
 
-	// Set Gin mode
-	if os.Getenv("GIN_MODE") == "release" {
-		gin.SetMode(gin.ReleaseMode)
-	}
-
 	// Create Gin router
 	r := gin.Default()
 
 	// Configure CORS
-	config := cors.DefaultConfig()
-	config.AllowOrigins = []string{"http://localhost:3000", "http://localhost:5173"} // React dev servers
-	config.AllowMethods = []string{"GET", "POST", "PUT", "DELETE", "OPTIONS"}
-	config.AllowHeaders = []string{"Origin", "Content-Type", "Accept", "Authorization"}
-	config.AllowCredentials = true
-	r.Use(cors.New(config))
+	corsConfig := cors.DefaultConfig()
+	corsConfig.AllowOrigins = []string{"http://localhost:3000", "http://localhost:5173"} // React dev servers
+	corsConfig.AllowMethods = []string{"GET", "POST", "PUT", "DELETE", "OPTIONS"}
+	corsConfig.AllowHeaders = []string{"Origin", "Content-Type", "Accept", "Authorization"}
+	corsConfig.AllowCredentials = true
+	r.Use(cors.New(corsConfig))
 
 	// Health check endpoint
 	r.GET("/health", func(c *gin.Context) {
@@ -83,11 +77,17 @@ func main() {
 	})
 
 	// Start server
-	port := os.Getenv("PORT")
-	if port == "" {
-		port = "8080"
-	}
+	port := config.Port
+
+	log.Printf("")
+	log.Printf("🚀 Starting Counter Application Server...")
+	log.Printf("   🌐 Listening on: http://localhost:%s", port)
+	log.Printf("   📊 Health check: http://localhost:%s/health", port)
+	log.Printf("   🔗 API endpoint: http://localhost:%s/api/v1", port)
+	log.Printf("   🎨 Frontend: http://localhost:%s/", port)
+	log.Printf("")
+	log.Printf("✅ Server is ready and accepting connections!")
+	log.Printf("")
 
-	log.Printf("Server starting on port %s", port)
 	log.Fatal(r.Run(":" + port))
 }
diff --git a/scripts/dev.sh b/scripts/dev.sh
new file mode 100755
index 0000000..7c2574d
--- /dev/null
+++ b/scripts/dev.sh
@@ -0,0 +1,10 @@
+#!/bin/bash
+# Development environment script
+
+echo "🚀 Starting Counter app in development mode..."
+
+# Set environment
+export ENVIRONMENT=development
+
+# Start with development configuration
+docker-compose -f docker-compose.yml up --build
diff --git a/scripts/prod.sh b/scripts/prod.sh
new file mode 100755
index 0000000..323fe62
--- /dev/null
+++ b/scripts/prod.sh
@@ -0,0 +1,10 @@
+#!/bin/bash
+# Production environment script
+
+echo "🚀 Starting Counter app in production mode..."
+
+# Set environment
+export ENVIRONMENT=production
+
+# Start with production configuration
+docker-compose -f docker-compose.yml -f docker-compose.prod.yml up --build -d
diff --git a/scripts/staging.sh b/scripts/staging.sh
new file mode 100755
index 0000000..08cd9de
--- /dev/null
+++ b/scripts/staging.sh
@@ -0,0 +1,10 @@
+#!/bin/bash
+# Staging environment script
+
+echo "🚀 Starting Counter app in staging mode..."
+
+# Set environment
+export ENVIRONMENT=staging
+
+# Start with staging configuration
+docker-compose -f docker-compose.yml -f docker-compose.staging.yml up --build -d