diff --git a/http/server.go b/http/server.go
index cc9d84c..96ba000 100644
--- a/http/server.go
+++ b/http/server.go
@@ -186,6 +186,10 @@ func (s *Server) handleLuaRoute(ctx *fasthttp.RequestCtx, bytecode []byte, scrip
 	luaCtx := runner.NewHTTPContext(ctx)
 	defer luaCtx.Release()
 
+	if runner.GetGlobalEnvManager() != nil {
+		luaCtx.Set("env", runner.GetGlobalEnvManager().GetAll())
+	}
+
 	sessionMap := s.ctxPool.Get().(map[string]any)
 	defer func() {
 		for k := range sessionMap {
diff --git a/main.go b/main.go
index 5f6e18e..7a356f0 100644
--- a/main.go
+++ b/main.go
@@ -252,6 +252,10 @@ func (s *Moonshark) Shutdown() error {
 		s.LuaRunner.Close()
 	}
 
+	if err := runner.CleanupEnv(); err != nil {
+		logger.Warning("Environment cleanup failed: %v", err)
+	}
+
 	logger.Info("Shutdown complete")
 	return nil
 }
@@ -302,6 +306,11 @@ func initRunner(s *Moonshark) error {
 		}
 	}
 
+	// Initialize environment manager
+	if err := runner.InitEnv(s.Config.Dirs.Data); err != nil {
+		logger.Warning("Environment initialization failed: %v", err)
+	}
+
 	sessionManager := sessions.GlobalSessionManager
 	sessionManager.SetCookieOptions(
 		"MoonsharkSID",
diff --git a/runner/context.go b/runner/context.go
index 5324645..382e682 100644
--- a/runner/context.go
+++ b/runner/context.go
@@ -30,7 +30,8 @@ var contextPool = sync.Pool{
 
 // NewContext creates a new context, potentially reusing one from the pool
 func NewContext() *Context {
-	return contextPool.Get().(*Context)
+	ctx := contextPool.Get().(*Context)
+	return ctx
 }
 
 // NewHTTPContext creates a new context from a fasthttp RequestCtx
diff --git a/runner/embed.go b/runner/embed.go
index 74e4d85..da9a2f0 100644
--- a/runner/embed.go
+++ b/runner/embed.go
@@ -40,6 +40,9 @@ var timeLuaCode string
 //go:embed lua/math.lua
 var mathLuaCode string
 
+//go:embed lua/env.lua
+var envLuaCode string
+
 // ModuleInfo holds information about an embeddable Lua module
 type ModuleInfo struct {
 	Name          string                 // Module name
@@ -61,6 +64,7 @@ var (
 		{Name: "crypto", Code: cryptoLuaCode, DefinesGlobal: true},
 		{Name: "time", Code: timeLuaCode},
 		{Name: "math", Code: mathLuaCode},
+		{Name: "env", Code: envLuaCode, DefinesGlobal: true},
 	}
 )
 
diff --git a/runner/env.go b/runner/env.go
new file mode 100644
index 0000000..03c1432
--- /dev/null
+++ b/runner/env.go
@@ -0,0 +1,278 @@
+package runner
+
+import (
+	"bufio"
+	"fmt"
+	"os"
+	"path/filepath"
+	"sort"
+	"strings"
+	"sync"
+
+	"Moonshark/utils/color"
+	"Moonshark/utils/logger"
+
+	luajit "git.sharkk.net/Sky/LuaJIT-to-Go"
+)
+
+// EnvManager handles loading, storing, and saving environment variables
+type EnvManager struct {
+	envPath string         // Path to .env file
+	vars    map[string]any // Environment variables in memory
+	mu      sync.RWMutex   // Thread-safe access
+}
+
+// Global environment manager instance
+var globalEnvManager *EnvManager
+
+// InitEnv initializes the environment manager with the given data directory
+func InitEnv(dataDir string) error {
+	if dataDir == "" {
+		return fmt.Errorf("data directory cannot be empty")
+	}
+
+	// Create data directory if it doesn't exist
+	if err := os.MkdirAll(dataDir, 0755); err != nil {
+		return fmt.Errorf("failed to create data directory: %w", err)
+	}
+
+	envPath := filepath.Join(dataDir, ".env")
+
+	globalEnvManager = &EnvManager{
+		envPath: envPath,
+		vars:    make(map[string]any),
+	}
+
+	// Load existing .env file if it exists
+	if err := globalEnvManager.load(); err != nil {
+		logger.Warning("Failed to load .env file: %v", err)
+	}
+
+	count := len(globalEnvManager.vars)
+	if count > 0 {
+		logger.Info("Environment loaded: %s vars from %s",
+			color.Apply(fmt.Sprintf("%d", count), color.Yellow),
+			color.Apply(envPath, color.Yellow))
+	} else {
+		logger.Info("Environment initialized: %s", color.Apply(envPath, color.Yellow))
+	}
+
+	return nil
+}
+
+// GetGlobalEnvManager returns the global environment manager instance
+func GetGlobalEnvManager() *EnvManager {
+	return globalEnvManager
+}
+
+// load reads the .env file and populates the vars map
+func (e *EnvManager) load() error {
+	file, err := os.Open(e.envPath)
+	if os.IsNotExist(err) {
+		// File doesn't exist, start with empty env
+		return nil
+	}
+	if err != nil {
+		return fmt.Errorf("failed to open .env file: %w", err)
+	}
+	defer file.Close()
+
+	e.mu.Lock()
+	defer e.mu.Unlock()
+
+	scanner := bufio.NewScanner(file)
+	lineNum := 0
+
+	for scanner.Scan() {
+		lineNum++
+		line := strings.TrimSpace(scanner.Text())
+
+		// Skip empty lines and comments
+		if line == "" || strings.HasPrefix(line, "#") {
+			continue
+		}
+
+		// Parse key=value
+		parts := strings.SplitN(line, "=", 2)
+		if len(parts) != 2 {
+			logger.Warning("Invalid .env line %d: %s", lineNum, line)
+			continue
+		}
+
+		key := strings.TrimSpace(parts[0])
+		value := strings.TrimSpace(parts[1])
+
+		// Remove quotes if present
+		if len(value) >= 2 {
+			if (strings.HasPrefix(value, "\"") && strings.HasSuffix(value, "\"")) ||
+				(strings.HasPrefix(value, "'") && strings.HasSuffix(value, "'")) {
+				value = value[1 : len(value)-1]
+			}
+		}
+
+		e.vars[key] = value
+	}
+
+	return scanner.Err()
+}
+
+// Save writes the current environment variables to the .env file
+func (e *EnvManager) Save() error {
+	if e == nil {
+		return nil // No env manager initialized
+	}
+
+	e.mu.RLock()
+	defer e.mu.RUnlock()
+
+	file, err := os.Create(e.envPath)
+	if err != nil {
+		return fmt.Errorf("failed to create .env file: %w", err)
+	}
+	defer file.Close()
+
+	// Sort keys for consistent output
+	keys := make([]string, 0, len(e.vars))
+	for key := range e.vars {
+		keys = append(keys, key)
+	}
+	sort.Strings(keys)
+
+	// Write header comment
+	fmt.Fprintln(file, "# Environment variables for Moonshark")
+	fmt.Fprintln(file, "# Generated automatically - you can edit this file")
+	fmt.Fprintln(file)
+
+	// Write each variable
+	for _, key := range keys {
+		value := e.vars[key]
+
+		// Convert value to string
+		var strValue string
+		switch v := value.(type) {
+		case string:
+			strValue = v
+		case nil:
+			continue // Skip nil values
+		default:
+			strValue = fmt.Sprintf("%v", v)
+		}
+
+		// Quote values that contain spaces or special characters
+		if strings.ContainsAny(strValue, " \t\n\r\"'\\") {
+			strValue = fmt.Sprintf("\"%s\"", strings.ReplaceAll(strValue, "\"", "\\\""))
+		}
+
+		fmt.Fprintf(file, "%s=%s\n", key, strValue)
+	}
+
+	logger.Debug("Environment saved: %d vars to %s", len(e.vars), e.envPath)
+	return nil
+}
+
+// Get retrieves an environment variable
+func (e *EnvManager) Get(key string) (any, bool) {
+	if e == nil {
+		return nil, false
+	}
+
+	e.mu.RLock()
+	defer e.mu.RUnlock()
+
+	value, exists := e.vars[key]
+	return value, exists
+}
+
+// Set stores an environment variable
+func (e *EnvManager) Set(key string, value any) {
+	if e == nil {
+		return
+	}
+
+	e.mu.Lock()
+	defer e.mu.Unlock()
+
+	e.vars[key] = value
+}
+
+// GetAll returns a copy of all environment variables
+func (e *EnvManager) GetAll() map[string]any {
+	if e == nil {
+		return make(map[string]any)
+	}
+
+	e.mu.RLock()
+	defer e.mu.RUnlock()
+
+	result := make(map[string]any, len(e.vars))
+	for k, v := range e.vars {
+		result[k] = v
+	}
+	return result
+}
+
+// CleanupEnv saves the environment and cleans up resources
+func CleanupEnv() error {
+	if globalEnvManager != nil {
+		return globalEnvManager.Save()
+	}
+	return nil
+}
+
+// envGet Lua function to get an environment variable
+func envGet(state *luajit.State) int {
+	if !state.IsString(1) {
+		state.PushNil()
+		return 1
+	}
+
+	key := state.ToString(1)
+	if value, exists := globalEnvManager.Get(key); exists {
+		if err := state.PushValue(value); err != nil {
+			state.PushNil()
+		}
+	} else {
+		state.PushNil()
+	}
+	return 1
+}
+
+// envSet Lua function to set an environment variable
+func envSet(state *luajit.State) int {
+	if !state.IsString(1) || !state.IsString(2) {
+		state.PushBoolean(false)
+		return 1
+	}
+
+	key := state.ToString(1)
+	value := state.ToString(2)
+
+	globalEnvManager.Set(key, value)
+	state.PushBoolean(true)
+	return 1
+}
+
+// envGetAll Lua function to get all environment variables
+func envGetAll(state *luajit.State) int {
+	vars := globalEnvManager.GetAll()
+
+	if err := state.PushTable(vars); err != nil {
+		state.PushNil()
+	}
+
+	return 1
+}
+
+// RegisterEnvFunctions registers environment functions with the Lua state
+func RegisterEnvFunctions(state *luajit.State) error {
+	if err := state.RegisterGoFunction("__env_get", envGet); err != nil {
+		return err
+	}
+	if err := state.RegisterGoFunction("__env_set", envSet); err != nil {
+		return err
+	}
+	if err := state.RegisterGoFunction("__env_get_all", envGetAll); err != nil {
+		return err
+	}
+	return nil
+}
diff --git a/runner/lua/env.lua b/runner/lua/env.lua
new file mode 100644
index 0000000..b3b77a5
--- /dev/null
+++ b/runner/lua/env.lua
@@ -0,0 +1,93 @@
+-- Environment variable module for Moonshark
+-- Provides access to persistent environment variables stored in .env file
+
+-- Get an environment variable with a default value
+-- Returns the value if it exists, default_value otherwise
+function env_get(key, default_value)
+	if type(key) ~= "string" then
+		error("env_get: key must be a string")
+	end
+
+	-- First check context for environment variables (no Go call needed)
+	if _env and _env[key] ~= nil then
+		return _env[key]
+	end
+
+	return default_value
+end
+
+-- Set an environment variable
+-- Returns true on success, false on failure
+function env_set(key, value)
+	if type(key) ~= "string" then
+		error("env_set: key must be a string")
+	end
+
+	-- Update context immediately for future reads
+	if not _env then
+		_env = {}
+	end
+	_env[key] = value
+
+	-- Persist to Go backend
+	return __env_set(key, value)
+end
+
+-- Get all environment variables as a table
+-- Returns a table with all key-value pairs
+function env_get_all()
+	-- Return context table directly if available
+	if _env then
+		local copy = {}
+		for k, v in pairs(_env) do
+			copy[k] = v
+		end
+		return copy
+	end
+
+	-- Fallback to Go call
+	return __env_get_all()
+end
+
+-- Check if an environment variable exists
+-- Returns true if the variable exists, false otherwise
+function env_exists(key)
+	if type(key) ~= "string" then
+		error("env_exists: key must be a string")
+	end
+
+	-- Check context first
+	if _env then
+		return _env[key] ~= nil
+	end
+
+	return false
+end
+
+-- Set multiple environment variables from a table
+-- Returns true on success, false if any setting failed
+function env_set_many(vars)
+	if type(vars) ~= "table" then
+		error("env_set_many: vars must be a table")
+	end
+
+	if not _env then
+		_env = {}
+	end
+
+	local success = true
+	for key, value in pairs(vars) do
+		if type(key) == "string" and type(value) == "string" then
+			-- Update context
+			_env[key] = value
+			-- Persist to Go
+			if not __env_set(key, value) then
+				success = false
+			end
+		else
+			error("env_set_many: all keys and values must be strings")
+		end
+	end
+
+	return success
+end
diff --git a/runner/lua/sandbox.lua b/runner/lua/sandbox.lua
index b205a51..d0783d3 100644
--- a/runner/lua/sandbox.lua
+++ b/runner/lua/sandbox.lua
@@ -22,6 +22,10 @@ function __create_env(ctx)
 
 	if ctx then
 		env.ctx = ctx
+
+		if ctx._env then
+			env._env = ctx._env
+		end
 	end
 
 	if __setup_require then
@@ -457,10 +461,10 @@ _G.render = function(template_str, env)
 		end
 
 		local code = template_str:sub(pos, close_start-1):match("^%s*(.-)%s*$")
-		
+
 		-- Check if it's a simple variable name for escaped output
 		local is_simple_var = tag_type == "=" and code:match("^[%w_]+$")
-		
+
 		table.insert(chunks, {tag_type, code, pos, is_simple_var})
 		pos = close_stop + 1
 	end
@@ -660,4 +664,4 @@ end
 function send_binary(content, mime_type)
 	http_set_content_type(mime_type or "application/octet-stream")
 	return content
-end
\ No newline at end of file
+end
diff --git a/runner/moduleLoader.go b/runner/moduleLoader.go
index e1ef921..72bccb9 100644
--- a/runner/moduleLoader.go
+++ b/runner/moduleLoader.go
@@ -1,6 +1,7 @@
 package runner
 
 import (
+	"fmt"
 	"os"
 	"path/filepath"
 	"strings"
@@ -71,15 +72,11 @@ func (l *ModuleLoader) SetupRequire(state *luajit.State) error {
 	err := state.DoString(`
 		-- Initialize global module registry
 		__module_paths = {}
-
-		-- Setup fast module loading system
 		__module_bytecode = {}
+		__ready_modules = {}
 
 		-- Create module preload table
 		package.preload = package.preload or {}
-
-		-- Setup module state registry
-		__ready_modules = {}
 	`)
 
 	if err != nil {
@@ -209,7 +206,7 @@ func (l *ModuleLoader) PreloadModules(state *luajit.State) error {
 			// Cache bytecode
 			l.bytecodeCache[modName] = bytecode
 
-			// Register in Lua
+			// Register in Lua - store path info
 			escapedPath := escapeLuaString(path)
 			escapedName := escapeLuaString(modName)
 
@@ -217,25 +214,26 @@ func (l *ModuleLoader) PreloadModules(state *luajit.State) error {
 				return nil
 			}
 
-			// Load bytecode into Lua state
+			// Load bytecode and register in package.preload properly
 			if err := state.LoadBytecode(bytecode, path); err != nil {
 				return nil
 			}
 
-			// Add to package.preload
-			luaCode := `
-				local modname = "` + escapedName + `"
-				local chunk = ...
-				package.preload[modname] = chunk
-				__ready_modules[modname] = true
-			`
+			// Store the function in package.preload - the function is on the stack
+			state.GetGlobal("package")
+			state.GetField(-1, "preload")
+			state.PushString(modName)
+			state.PushCopy(-4) // Copy the compiled function
+			state.SetTable(-3) // preload[modName] = function
+			state.Pop(2)       // Pop package and preload tables
 
-			if err := state.DoString(luaCode); err != nil {
-				state.Pop(1) // Remove chunk from stack
+			// Mark as ready
+			if err := state.DoString(`__ready_modules["` + escapedName + `"] = true`); err != nil {
+				state.Pop(1) // Remove the function from stack
 				return nil
 			}
 
-			state.Pop(1) // Remove chunk from stack
+			state.Pop(1) // Remove the function from stack
 			return nil
 		})
 
@@ -318,24 +316,28 @@ func (l *ModuleLoader) GetModuleByPath(path string) (string, bool) {
 	l.mu.RLock()
 	defer l.mu.RUnlock()
 
-	// Clean path for proper comparison
-	path = filepath.Clean(path)
+	// Convert to absolute path for consistent comparison
+	absPath, err := filepath.Abs(path)
+	if err != nil {
+		absPath = filepath.Clean(path)
+	}
 
-	// Try direct lookup from cache
+	// Try direct lookup from cache with absolute path
 	for modName, modPath := range l.pathCache {
-		if modPath == path {
+		if modPath == absPath {
 			return modName, true
 		}
 	}
 
-	// Try to find by relative path from lib dirs
+	// Try to construct module name from lib dirs
 	for _, dir := range l.config.LibDirs {
 		absDir, err := filepath.Abs(dir)
 		if err != nil {
 			continue
 		}
 
-		relPath, err := filepath.Rel(absDir, path)
+		// Check if the file is under this lib directory
+		relPath, err := filepath.Rel(absDir, absPath)
 		if err != nil || strings.HasPrefix(relPath, "..") {
 			continue
 		}
@@ -343,13 +345,78 @@ func (l *ModuleLoader) GetModuleByPath(path string) (string, bool) {
 		if strings.HasSuffix(relPath, ".lua") {
 			modName := strings.TrimSuffix(relPath, ".lua")
 			modName = strings.ReplaceAll(modName, string(filepath.Separator), ".")
+
+			l.debugLog("Found module %s for path %s", modName, path)
 			return modName, true
 		}
 	}
 
+	l.debugLog("No module found for path %s", path)
 	return "", false
 }
 
+// RefreshModule recompiles and updates a specific module
+func (l *ModuleLoader) RefreshModule(state *luajit.State, moduleName string) error {
+	l.mu.Lock()
+	defer l.mu.Unlock()
+
+	// Get module path
+	path, exists := l.pathCache[moduleName]
+	if !exists {
+		l.debugLog("Module not found in cache: %s", moduleName)
+		return fmt.Errorf("module %s not found", moduleName)
+	}
+
+	l.debugLog("Refreshing module: %s at %s", moduleName, path)
+
+	// Read updated file content
+	content, err := os.ReadFile(path)
+	if err != nil {
+		return fmt.Errorf("failed to read module file: %w", err)
+	}
+
+	// Recompile to bytecode
+	bytecode, err := state.CompileBytecode(string(content), path)
+	if err != nil {
+		return fmt.Errorf("failed to compile module: %w", err)
+	}
+
+	// Update bytecode cache
+	l.bytecodeCache[moduleName] = bytecode
+
+	// Load new bytecode
+	if err := state.LoadBytecode(bytecode, path); err != nil {
+		return fmt.Errorf("failed to load bytecode: %w", err)
+	}
+
+	// Update package.preload with new function (function is on stack)
+	state.GetGlobal("package")
+	state.GetField(-1, "preload")
+	state.PushString(moduleName)
+	state.PushCopy(-4) // Copy the new compiled function
+	state.SetTable(-3) // preload[moduleName] = new_function
+	state.Pop(2)       // Pop package and preload tables
+	state.Pop(1)       // Pop the function
+
+	// Clear from package.loaded so it gets reloaded
+	escapedName := escapeLuaString(moduleName)
+	if err := state.DoString(`package.loaded["` + escapedName + `"] = nil`); err != nil {
+		return fmt.Errorf("failed to clear loaded module: %w", err)
+	}
+
+	l.debugLog("Successfully refreshed module: %s", moduleName)
+	return nil
+}
+
+// RefreshModuleByPath refreshes a module by its file path
+func (l *ModuleLoader) RefreshModuleByPath(state *luajit.State, filePath string) error {
+	moduleName, exists := l.GetModuleByPath(filePath)
+	if !exists {
+		return fmt.Errorf("no module found for path: %s", filePath)
+	}
+	return l.RefreshModule(state, moduleName)
+}
+
 // escapeLuaString escapes special characters in a string for Lua
 func escapeLuaString(s string) string {
 	replacer := strings.NewReplacer(
diff --git a/runner/runner.go b/runner/runner.go
index 8c9267a..02759ee 100644
--- a/runner/runner.go
+++ b/runner/runner.go
@@ -384,8 +384,7 @@ waitForInUse:
 
 // NotifyFileChanged alerts the runner about file changes
 func (r *Runner) NotifyFileChanged(filePath string) bool {
-	logger.Debug("Runner has been notified of a file change...")
-	logger.Debug("%s", filePath)
+	logger.Debug("Runner notified of file change: %s", filePath)
 
 	module, isModule := r.moduleLoader.GetModuleByPath(filePath)
 	if isModule {
@@ -393,7 +392,7 @@ func (r *Runner) NotifyFileChanged(filePath string) bool {
 		return r.RefreshModule(module)
 	}
 
-	logger.Debug("File change noted but no state refresh needed: %s", filePath)
+	logger.Debug("File change noted but no refresh needed: %s", filePath)
 	return true
 }
 
@@ -414,10 +413,41 @@ func (r *Runner) RefreshModule(moduleName string) bool {
 			continue
 		}
 
-		// Invalidate module in Lua
-		if err := state.L.DoString(`package.loaded["` + moduleName + `"] = nil`); err != nil {
+		// Use the enhanced module loader refresh
+		if err := r.moduleLoader.RefreshModule(state.L, moduleName); err != nil {
 			success = false
-			logger.Debug("Failed to invalidate module %s: %v", moduleName, err)
+			logger.Debug("Failed to refresh module %s in state %d: %v", moduleName, state.index, err)
+		}
+	}
+
+	if success {
+		logger.Debug("Successfully refreshed module: %s", moduleName)
+	}
+
+	return success
+}
+
+// RefreshModuleByPath refreshes a module by its file path
+func (r *Runner) RefreshModuleByPath(filePath string) bool {
+	r.mu.RLock()
+	defer r.mu.RUnlock()
+
+	if !r.isRunning.Load() {
+		return false
+	}
+
+	logger.Debug("Refreshing module by path: %s", filePath)
+
+	success := true
+	for _, state := range r.states {
+		if state == nil || state.inUse.Load() {
+			continue
+		}
+
+		// Use the enhanced module loader refresh by path
+		if err := r.moduleLoader.RefreshModuleByPath(state.L, filePath); err != nil {
+			success = false
+			logger.Debug("Failed to refresh module at %s in state %d: %v", filePath, state.index, err)
 		}
 	}
 
diff --git a/runner/sandbox.go b/runner/sandbox.go
index f8f69e2..6fe6c5f 100644
--- a/runner/sandbox.go
+++ b/runner/sandbox.go
@@ -121,6 +121,10 @@ func (s *Sandbox) registerCoreFunctions(state *luajit.State) error {
 		return err
 	}
 
+	if err := RegisterEnvFunctions(state); err != nil {
+		return err
+	}
+
 	return nil
 }