diff --git a/docs/index.md b/docs/index.md
index c12043e0..6f2cd6ac 100644
--- a/docs/index.md
+++ b/docs/index.md
@@ -37,8 +37,8 @@ provider "btp" {
 
 - `cli_server_url` (String) The URL of the BTP CLI server (e.g. `https://cpcli.cf.eu10.hana.ondemand.com`).
 - `idp` (String) The identity provider to be used for authentication (default: `sap.default`).
-- `password` (String, Sensitive) Your password. Note that two-factor authentication is not supported.
-- `username` (String) Your user name, usually an e-mail address.
+- `password` (String, Sensitive) Your password. Note that two-factor authentication is not supported. This can also be sourced from the `BTP_PASSWORD` environment variable.
+- `username` (String) Your user name, usually an e-mail address. This can also be sourced from the `BTP_USERNAME` environment variable.
 
 ## Get Started
 
diff --git a/internal/provider/provider.go b/internal/provider/provider.go
index de6540fb..4200bf1d 100644
--- a/internal/provider/provider.go
+++ b/internal/provider/provider.go
@@ -45,11 +45,11 @@ func (p *btpcliProvider) Schema(_ context.Context, _ provider.SchemaRequest, res
 				Required:            true, // TODO validate UUID
 			},
 			"username": schema.StringAttribute{
-				MarkdownDescription: "Your user name, usually an e-mail address.",
+				MarkdownDescription: "Your user name, usually an e-mail address. This can also be sourced from the `BTP_USERNAME` environment variable.",
 				Optional:            true,
 			},
 			"password": schema.StringAttribute{
-				MarkdownDescription: "Your password. Note that two-factor authentication is not supported.",
+				MarkdownDescription: "Your password. Note that two-factor authentication is not supported. This can also be sourced from the `BTP_PASSWORD` environment variable.",
 				Optional:            true,
 				Sensitive:           true,
 			},