diff --git a/lightrag/api/utils_api.py b/lightrag/api/utils_api.py
index 02715b87..c01b7a37 100644
--- a/lightrag/api/utils_api.py
+++ b/lightrag/api/utils_api.py
@@ -24,9 +24,7 @@ def check_env_file():
     Returns True if should continue, False if should exit.
     """
     if not os.path.exists(".env"):
-        warning_msg = (
-            "Warning: Startup directory must contain .env file for multi-instance support."
-        )
+        warning_msg = "Warning: Startup directory must contain .env file for multi-instance support."
         ASCIIColors.yellow(warning_msg)
 
         # Check if running in interactive terminal
diff --git a/lightrag/base.py b/lightrag/base.py
index 3db337e5..ad41fc58 100644
--- a/lightrag/base.py
+++ b/lightrag/base.py
@@ -16,7 +16,10 @@ import numpy as np
 from .utils import EmbeddingFunc
 from .types import KnowledgeGraph
 
-load_dotenv()
+# use the .env that is inside the current folder
+# allows to use different .env file for each lightrag instance
+# the OS environment variables take precedence over the .env file
+load_dotenv(dotenv_path=".env", override=False)
 
 
 class TextChunkSchema(TypedDict):
diff --git a/lightrag/lightrag.py b/lightrag/lightrag.py
index 7ebcebc7..dece78b4 100644
--- a/lightrag/lightrag.py
+++ b/lightrag/lightrag.py
@@ -55,8 +55,10 @@ from .utils import (
 from .types import KnowledgeGraph
 from dotenv import load_dotenv
 
-# Load environment variables
-load_dotenv(override=True)
+# use the .env that is inside the current folder
+# allows to use different .env file for each lightrag instance
+# the OS environment variables take precedence over the .env file
+load_dotenv(dotenv_path=".env", override=False)
 
 # TODO: TO REMOVE @Yannick
 config = configparser.ConfigParser()
diff --git a/lightrag/operate.py b/lightrag/operate.py
index 816227f5..083a8c65 100644
--- a/lightrag/operate.py
+++ b/lightrag/operate.py
@@ -38,8 +38,10 @@ from .prompt import GRAPH_FIELD_SEP, PROMPTS
 import time
 from dotenv import load_dotenv
 
-# Load environment variables
-load_dotenv(override=True)
+# use the .env that is inside the current folder
+# allows to use different .env file for each lightrag instance
+# the OS environment variables take precedence over the .env file
+load_dotenv(dotenv_path=".env", override=False)
 
 
 def chunking_by_token_size(