diff --git a/config/config.go b/config/config.go
index 69f0e503c4..4db94b4074 100644
--- a/config/config.go
+++ b/config/config.go
@@ -50,10 +50,17 @@ var format = logging.MustStringFormatter(
 	`%{color}%{time:15:04:05.000} [%{module}] %{level:.4s} : %{color:reset} %{message}`,
 )
 
+const cmdRoot = "fabric_sdk"
+
 // InitConfig ...
 // initConfig reads in config file
 func InitConfig(configFile string) error {
 
+	myViper.SetEnvPrefix(cmdRoot)
+	myViper.AutomaticEnv()
+	replacer := strings.NewReplacer(".", "_")
+	myViper.SetEnvKeyReplacer(replacer)
+
 	if configFile != "" {
 		// create new viper
 		myViper.SetConfigFile(configFile)
diff --git a/config/config_test.go b/config/config_test.go
index 9937a4a3bd..dd23f1da79 100644
--- a/config/config_test.go
+++ b/config/config_test.go
@@ -78,6 +78,30 @@ func TestMultipleVipers(t *testing.T) {
 	}
 }
 
+func TestEnvironmentVariables(t *testing.T) {
+	testValue := myViper.GetString("env.test")
+	if testValue != "" {
+		t.Fatalf("Expected environment variable value to be empty but got: %s", testValue)
+	}
+
+	err := os.Setenv("FABRIC_SDK_ENV_TEST", "123")
+	defer os.Unsetenv("FABRIC_SDK_ENV_TEST")
+
+	if err != nil {
+		fmt.Println(err.Error())
+	}
+
+	err = InitConfig("../test/fixtures/config/config_test.yaml")
+	if err != nil {
+		fmt.Println(err.Error())
+	}
+
+	testValue = myViper.GetString("env.test")
+	if testValue != "123" {
+		t.Fatalf("Expected environment variable value but got: %s", testValue)
+	}
+}
+
 func TestMain(m *testing.M) {
 	err := InitConfig("../test/fixtures/config/config_test.yaml")
 	if err != nil {