diff --git a/.env.example b/.env.example
index 46f1bfb..7f6685d 100644
--- a/.env.example
+++ b/.env.example
@@ -20,6 +20,8 @@ ASSIGNMENT_TIMEOUT=60
 ASSIGNMENT_REMINDER=45
 CHAIN_TIMER_THRESHOLD=5
 
-# Server Configuration (optional)
-# HOST=0.0.0.0
-# PORT=8000
+# Server Configuration
+# HOST: Set to 0.0.0.0 to allow external connections, or 127.0.0.1 for localhost only
+HOST=127.0.0.1
+# PORT: Port to run the application on
+PORT=8000
diff --git a/main.py b/main.py
index 2d41aa6..bc06567 100644
--- a/main.py
+++ b/main.py
@@ -100,9 +100,15 @@ async def start_bot():
 async def main():
     # Parse command-line arguments
     import argparse
+    import os
+
+    # Read from environment variables first, then fall back to defaults
+    default_port = int(os.getenv("PORT", "8000"))
+    default_host = os.getenv("HOST", "127.0.0.1")
+
     parser = argparse.ArgumentParser(description="Faction War Dispatch Bot")
-    parser.add_argument("--port", type=int, default=8000, help="Port to run the application on (default: 8000)")
-    parser.add_argument("--host", type=str, default="127.0.0.1", help="Host to bind to (default: 127.0.0.1)")
+    parser.add_argument("--port", type=int, default=default_port, help=f"Port to run the application on (default: {default_port})")
+    parser.add_argument("--host", type=str, default=default_host, help=f"Host to bind to (default: {default_host})")
     args = parser.parse_args()
 
     # Start Discord bot in background
diff --git a/setup_production.sh b/setup_production.sh
index fe822b2..4eed18c 100644
--- a/setup_production.sh
+++ b/setup_production.sh
@@ -87,6 +87,10 @@ echo ""
 echo "Setting up environment file..."
 if [ ! -f ".env" ]; then
     cp .env.example .env
+
+    # Update PORT in .env file
+    sed -i "s/^PORT=.*/PORT=$APP_PORT/" .env
+
     echo ""
     echo "IMPORTANT: You need to configure /opt/faction-war/app/.env with your secrets!"
     echo ""
@@ -94,6 +98,8 @@ if [ ! -f ".env" ]; then
     echo "  - AUTH_PASSWORD: openssl rand -base64 32"
     echo "  - JWT_SECRET: openssl rand -hex 64"
     echo ""
+    echo "Application port has been set to: $APP_PORT"
+    echo ""
     echo "You can either:"
     echo "  1. Edit the .env file now"
     echo "  2. Skip and edit it later before starting the application"
@@ -112,8 +118,8 @@ chmod 600 .env
 
 echo ""
 echo "Setting up systemd service..."
-# Update the service file with the configured port
-sed "s|ExecStart=.*|ExecStart=/opt/faction-war/app/venv/bin/python main.py --port $APP_PORT|g" faction-war.service > /etc/systemd/system/faction-war.service
+# Copy the service file
+cp faction-war.service /etc/systemd/system/faction-war.service
 systemctl daemon-reload
 systemctl enable faction-war
 systemctl start faction-war
@@ -159,6 +165,7 @@ echo ""
 echo "Important next steps:"
 echo "1. Configure /opt/faction-war/app/.env with your secrets (if not done already)"
 echo "   - Edit with: sudo -u factionwar nano /opt/faction-war/app/.env"
+echo "   - Change PORT or HOST in .env if needed"
 echo "   - Then restart: sudo systemctl restart faction-war"
 echo "2. Access the application:"
 echo "   - Local: http://localhost:$APP_PORT"