diff --git a/server/.env.example b/.env.example
similarity index 100%
rename from server/.env.example
rename to .env.example
diff --git a/docker-compose.yml b/docker-compose.yml
index b39089289..fc6f7493b 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -12,8 +12,8 @@ services:
       # You can change the host port (left side) if 7655 is already in use on your host
       - "7655:7655"
     env_file:
-      # Load environment variables from the .env file located in the server directory
-      - ./server/.env # Primary location
+      # Load environment variables from a .env file in the same directory as this compose file
+      - .env # Standard location
     # Optional: Define networks if needed, otherwise uses default bridge network
     # networks:
     #   - pulse_network
diff --git a/package.json b/package.json
index 64293d76a..3a5882850 100644
--- a/package.json
+++ b/package.json
@@ -5,7 +5,7 @@
   "main": "server/index.js",
   "scripts": {
     "start": "cd server && node index.js",
-    "dev:server": "NODE_ENV=development cd server && node index.js",
+    "dev:server": "NODE_ENV=development node -r dotenv/config --env-file=.env server/index.js",
     "dev:css": "tailwindcss -i ./src/index.css -o ./public/output.css --watch",
     "build:css": "tailwindcss -i ./src/index.css -o ./public/output.css --minify",
     "dev": "concurrently \"npm:dev:server\" \"npm:dev:css\"",
diff --git a/server/index.js b/server/index.js
index f05889e71..e7480fe6a 100644
--- a/server/index.js
+++ b/server/index.js
@@ -1,4 +1,4 @@
-require('dotenv').config(); // Load environment variables from .env file
+// require('dotenv').config(); // Load environment variables from .env file
 
 // --- BEGIN Environment Variable Validation ---
 const primaryRequiredEnvVars = [
@@ -29,13 +29,13 @@ primaryRequiredEnvVars.forEach(varName => {
 if (missingVars.length > 0 || placeholderVars.length > 0) {
   console.error('\n--- Configuration Error (Primary Endpoint) ---');
   if (missingVars.length > 0) {
-    console.error(`Missing required environment variables in server/.env for the primary endpoint: ${missingVars.join(', ')}`);
+    console.error(`Missing required environment variables: ${missingVars.join(', ')}. These are typically set via docker-compose.yml or a .env file.`);
   }
   if (placeholderVars.length > 0) {
-    console.error(`Primary environment variables seem to contain placeholder values in server/.env: ${placeholderVars.join(', ')}`);
+    console.error(`The following primary environment variables seem to contain placeholder values: ${placeholderVars.join(', ')}.`);
   }
-  console.error('Please ensure server/.env exists and contains valid Proxmox connection details for the primary endpoint.');
-  console.error('Refer to server/.env.example for the required format.\n');
+  console.error('Please ensure valid Proxmox connection details are provided via environment variables.');
+  console.error('Refer to server/.env.example for the required variable names and format.\n');
   process.exit(1); // Exit if primary configuration is invalid
 }