diff --git a/README.md b/README.md
index c0de2d1..5855c33 100644
--- a/README.md
+++ b/README.md
@@ -120,6 +120,7 @@ Available targets:
 | attributes | Additional attributes (e.g. `1`) | `list(string)` | `[]` | no |
 | delimiter | Delimiter to be used between `namespace`, `stage`, `name` and `attributes` | `string` | `"-"` | no |
 | enabled | Set to false to prevent the module from creating or accessing any resources | `bool` | `true` | no |
+| environment | Environment, e.g. 'prod', 'staging', 'dev', 'pre-prod', 'UAT' | `string` | `""` | no |
 | name | The Name of the application or solution  (e.g. `bastion` or `portal`) | `string` | n/a | yes |
 | namespace | Namespace (e.g. `eg` or `cp`) | `string` | n/a | yes |
 | parent\_zone\_id | ID of the hosted zone to contain this record  (or specify `parent_zone_name`) | `string` | `""` | no |
diff --git a/docs/terraform.md b/docs/terraform.md
index 257fbf1..3733f6f 100644
--- a/docs/terraform.md
+++ b/docs/terraform.md
@@ -21,6 +21,7 @@
 | attributes | Additional attributes (e.g. `1`) | `list(string)` | `[]` | no |
 | delimiter | Delimiter to be used between `namespace`, `stage`, `name` and `attributes` | `string` | `"-"` | no |
 | enabled | Set to false to prevent the module from creating or accessing any resources | `bool` | `true` | no |
+| environment | Environment, e.g. 'prod', 'staging', 'dev', 'pre-prod', 'UAT' | `string` | `""` | no |
 | name | The Name of the application or solution  (e.g. `bastion` or `portal`) | `string` | n/a | yes |
 | namespace | Namespace (e.g. `eg` or `cp`) | `string` | n/a | yes |
 | parent\_zone\_id | ID of the hosted zone to contain this record  (or specify `parent_zone_name`) | `string` | `""` | no |
diff --git a/main.tf b/main.tf
index 68354f4..033c57a 100644
--- a/main.tf
+++ b/main.tf
@@ -1,12 +1,13 @@
 module "label" {
-  source     = "git::https://github.com/cloudposse/terraform-null-label.git?ref=tags/0.17.0"
-  namespace  = var.namespace
-  stage      = var.stage
-  name       = var.name
-  delimiter  = var.delimiter
-  attributes = var.attributes
-  tags       = var.tags
-  enabled    = var.enabled
+  source      = "git::https://github.com/cloudposse/terraform-null-label.git?ref=tags/0.17.0"
+  namespace   = var.namespace
+  stage       = var.stage
+  environment = var.environment
+  name        = var.name
+  delimiter   = var.delimiter
+  attributes  = var.attributes
+  tags        = var.tags
+  enabled     = var.enabled
 }
 
 locals {
@@ -28,6 +29,7 @@ data "template_file" "zone_name" {
 
   vars = {
     namespace        = var.namespace
+    environment      = var.environment
     name             = var.name
     stage            = var.stage
     id               = module.label.id
diff --git a/variables.tf b/variables.tf
index 76f28c4..4e2f080 100644
--- a/variables.tf
+++ b/variables.tf
@@ -8,6 +8,12 @@ variable "namespace" {
   description = "Namespace (e.g. `eg` or `cp`)"
 }
 
+variable "environment" {
+  default     = ""
+  type        = string
+  description = "Environment, e.g. 'prod', 'staging', 'dev', 'pre-prod', 'UAT'"
+}
+
 variable "stage" {
   type        = string
   description = "Stage (e.g. `prod`, `dev`, `staging`)"