diff --git a/utils/update_env.py b/utils/update_env.py
new file mode 100644
index 000000000..1f40faec6
--- /dev/null
+++ b/utils/update_env.py
@@ -0,0 +1,94 @@
+import os
+import re
+import argparse
+import sys
+
+"""
+This script updates environment variables in a .env file with values from the local environment.
+Specifically, it looks for variables set to "GET_FROM_LOCAL_ENV" in the input .env file and replaces them
+with the corresponding values from the local environment variables.
+
+Usage:
+1. Prepare an input .env file with some variables set to "GET_FROM_LOCAL_ENV".
+   Example input .env file (input.env):
+   # Example configuration
+
+   API_KEY=GET_FROM_LOCAL_ENV
+   DB_PASSWORD=GET_FROM_LOCAL_ENV
+   HOST=localhost
+   PORT=3080
+
+2. Set the corresponding environment variables in your local environment.
+   Example in bash:
+   export API_KEY=new_api_key_value
+   export DB_PASSWORD=new_db_password_value
+
+3. Run the script, specifying the input and output file paths.
+   Example:
+   python update_env.py input.env output.env
+"""
+
+def read_env_file(file_path):
+    """Reads the .env file and returns the lines as a list."""
+    with open(file_path, 'r') as file:
+        lines = file.readlines()
+    return lines
+
+def write_env_file(file_path, lines):
+    """Writes the updated lines to the specified .env file."""
+    with open(file_path, 'w') as file:
+        file.writelines(lines)
+
+def update_env_file_with_local_env(input_file_path, output_file_path):
+    """
+    Reads the input .env file, updates the variables set to GET_FROM_LOCAL_ENV
+    with values from the local environment, and writes the result to the output .env file.
+    """
+    lines = read_env_file(input_file_path)
+    updated_lines = []
+    # Regex pattern to match lines ending with "GET_FROM_LOCAL_ENV"
+    env_var_pattern = re.compile(r'^\s*([A-Z_]+)=GET_FROM_LOCAL_ENV\s*$')
+    missing_vars = []
+    updated_vars = []
+
+    for line in lines:
+        match = env_var_pattern.match(line)
+        if match:
+            key = match.group(1)
+            # Check if the environment variable is set in the local environment
+            if key in os.environ:
+                new_value = os.environ[key]
+                updated_line = f'{key}={new_value}\n'
+                updated_lines.append(updated_line)
+                updated_vars.append(key)
+            else:
+                missing_vars.append(key)
+        else:
+            updated_lines.append(line)
+
+    # Print warnings and exit if any required environment variables are missing
+    if missing_vars:
+        for var in missing_vars:
+            print(f"Warning: {var} set to GET_FROM_LOCAL_ENV, could not find {var}, please set {var} in your local environment and run again.")
+        sys.exit(1)
+
+    # Write the updated lines to the output .env file
+    write_env_file(output_file_path, updated_lines)
+
+    # Print the list of updated variables
+    if updated_vars:
+        print("Updated the following variables:")
+        for var in updated_vars:
+            print(var)
+    
+    print(f"Processed {input_file_path} and wrote updates to {output_file_path}.")
+
+if __name__ == "__main__":
+    # Parse command-line arguments for input and output file paths
+    parser = argparse.ArgumentParser(description='Update .env file with local environment variables.')
+    parser.add_argument('input_file_path', type=str, help='Path to the input .env file')
+    parser.add_argument('output_file_path', type=str, help='Path to the output .env file')
+    args = parser.parse_args()
+
+    # Update the .env file with local environment variables
+    update_env_file_with_local_env(args.input_file_path, args.output_file_path)