diff --git a/CHANGELOG.md b/CHANGELOG.md
index 5cf491f3bf..b8572a4359 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -3,6 +3,7 @@
 * Rename `LogEntry` to `SentryMessage`. Change type of `SentryEvent.Message` from `string` to `SentryMessage`.
 * Change the type of `Gpu.VendorId` from `int` to `string`.
 * Add support for envelopes.
+* Set the Environment setting to 'production' if none was provided. (#550) @PureKrome
 
 # 3.0.0-alpha.0
 
diff --git a/src/Sentry/Internal/Constants.cs b/src/Sentry/Internal/Constants.cs
index b183464d3b..cc3296abb8 100644
--- a/src/Sentry/Internal/Constants.cs
+++ b/src/Sentry/Internal/Constants.cs
@@ -20,6 +20,12 @@ internal static class Constants
         /// </summary>
         public const string EnvironmentEnvironmentVariable = "SENTRY_ENVIRONMENT";
 
+        /// <summary>
+        /// Default Sentry environment setting.
+        /// </summary>
+        /// <remarks>Best Sentry practice is to always try and have a value for this setting.</remarks>
+        public const string DefaultEnvironmentSetting = "production";
+
         // See: https://github.com/getsentry/sentry-release-registry
         public const string SdkName = "sentry.dotnet";
     }
diff --git a/src/Sentry/Internal/MainSentryEventProcessor.cs b/src/Sentry/Internal/MainSentryEventProcessor.cs
index 170557953f..536e8fb9db 100644
--- a/src/Sentry/Internal/MainSentryEventProcessor.cs
+++ b/src/Sentry/Internal/MainSentryEventProcessor.cs
@@ -136,9 +136,16 @@ public SentryEvent Process(SentryEvent @event)
                 @event.Release = _options.Release ?? Release;
             }
 
-            if (@event.Environment == null)
-            {
-                @event.Environment = _options.Environment ?? EnvironmentLocator.Locate();
+            // Recommendation: The 'Environment' setting should always be set
+            //                 with a default fallback.
+            if (string.IsNullOrWhiteSpace(@event.Environment))
+            {
+                var foundEnvironment = EnvironmentLocator.Locate();
+                @event.Environment = string.IsNullOrWhiteSpace(foundEnvironment)
+                    ? string.IsNullOrWhiteSpace(_options.Environment)
+                        ? Constants.DefaultEnvironmentSetting
+                        : _options.Environment
+                    : foundEnvironment;
             }
 
             if (@event.Exception == null)
diff --git a/test/Sentry.Tests/Internals/MainSentryEventProcessorTests.cs b/test/Sentry.Tests/Internals/MainSentryEventProcessorTests.cs
index 5ae28b7d24..b24faf14f7 100644
--- a/test/Sentry.Tests/Internals/MainSentryEventProcessorTests.cs
+++ b/test/Sentry.Tests/Internals/MainSentryEventProcessorTests.cs
@@ -164,35 +164,45 @@ public void Process_NoReleaseOnOptions_SameAsCachedVersion()
             Assert.Equal(sut.Release, evt.Release);
         }
 
-        [Fact]
-        public void Process_EnvironmentOnOptions_SetToEvent()
+        [Theory]
+        [InlineData(null, Constants.DefaultEnvironmentSetting)] // Missing: will get default value.
+        [InlineData("", Constants.DefaultEnvironmentSetting)] // Missing: will get default value.
+        [InlineData(" ", Constants.DefaultEnvironmentSetting)] // Missing: will get default value.
+        [InlineData("a", "a")] // Provided: nothing will change.
+        [InlineData("production", "production")] // Provided: nothing will change. (value has a lower case 'p', different to default value)
+        [InlineData("aBcDe F !@#$ gHi", "aBcDe F !@#$ gHi")] // Provided: nothing will change. (Case check)
+        public void Process_EnvironmentOnOptions_SetToEvent(string environment, string expectedEnvironment)
         {
-            const string expected = "Production";
-            _fixture.SentryOptions.Environment = expected;
+            _fixture.SentryOptions.Environment = environment;
             var sut = _fixture.GetSut();
             var evt = new SentryEvent();
 
             _ = sut.Process(evt);
 
-            Assert.Equal(expected, evt.Environment);
+            Assert.Equal(expectedEnvironment, evt.Environment);
         }
 
-        [Fact]
-        public void Process_NoEnvironmentOnOptions_SameAsEnvironmentVariable()
+        [Theory]
+        [InlineData(null, Constants.DefaultEnvironmentSetting)] // Missing: will get default value.
+        [InlineData("", Constants.DefaultEnvironmentSetting)] // Missing: will get default value.
+        [InlineData(" ", Constants.DefaultEnvironmentSetting)] // Missing: will get default value.
+        [InlineData("a", "a")] // Provided: nothing will change.
+        [InlineData("Production", "Production")] // Provided: nothing will change. (value has a upper case 'p', different to default value)
+        [InlineData("aBcDe F !@#$ gHi", "aBcDe F !@#$ gHi")] // Provided: nothing will change. (Case check)
+        public void Process_NoEnvironmentOnOptions_SameAsEnvironmentVariable(string environment, string expectedEnvironment)
         {
-            const string expected = "Staging";
             var sut = _fixture.GetSut();
             var evt = new SentryEvent();
 
             EnvironmentVariableGuard.WithVariable(
                 Constants.EnvironmentEnvironmentVariable,
-                expected,
+                environment,
                 () =>
                 {
                     _ = sut.Process(evt);
                 });
 
-            Assert.Equal(expected, evt.Environment);
+            Assert.Equal(expectedEnvironment, evt.Environment);
         }
 
         [Fact]