diff --git a/README.md b/README.md
index 2461b3c..2385741 100644
--- a/README.md
+++ b/README.md
@@ -82,10 +82,10 @@ mockapi/
 4. **Configure environment variables**:
    ```bash
    cp example.env .env
-   # Edit .env with your settings
+   # Edit .env with your settings (see example.env for all available variables)
    ```
 
-   Example `.env`:
+   Minimal `.env` example:
    ```ini
    DATABASE_URL=sqlite+aiosqlite:///./mockapi.db
    ADMIN_USERNAME=admin
@@ -94,6 +94,8 @@ mockapi/
    DEBUG=True                        # Set to False in production
    ```
 
+   The `example.env` file includes additional configuration options for OAuth2, logging, and server settings.
+
 5. **Initialize the database** (tables are created automatically on first run).
 
 **For production deployment**, consider using the automated `install.sh` script which handles virtual environment creation, dependency installation, secure credential generation, and systemd service setup. See [Production Deployment with install.sh](#production-deployment-with-installsh) for details.
diff --git a/example.env b/example.env
index 0b96e60..ad3cce1 100644
--- a/example.env
+++ b/example.env
@@ -2,4 +2,18 @@ DATABASE_URL=sqlite+aiosqlite:///./mockapi.db
 ADMIN_USERNAME=admin
 ADMIN_PASSWORD=admin123  # Change this in production
 SECRET_KEY=your-secret-key-here-change-me
-DEBUG=True
+
+# Application Settings
+DEBUG=False
+LOG_LEVEL=INFO
+HOST=0.0.0.0
+PORT=8000
+
+# OAuth2 Settings
+OAUTH2_ISSUER=http://localhost:8000
+OAUTH2_ACCESS_TOKEN_EXPIRE_MINUTES=30
+OAUTH2_REFRESH_TOKEN_EXPIRE_DAYS=7
+OAUTH2_AUTHORIZATION_CODE_EXPIRE_MINUTES=10
+OAUTH2_SUPPORTED_GRANT_TYPES=["authorization_code", "client_credentials", "refresh_token"]
+OAUTH2_SUPPORTED_SCOPES=["openid", "profile", "email", "api:read", "api:write"]
+OAUTH2_PKCE_REQUIRED=false