diff --git a/docs/init-hooks.md b/docs/init-hooks.md
index eedfbd6eec..3207e6cfe9 100644
--- a/docs/init-hooks.md
+++ b/docs/init-hooks.md
@@ -27,6 +27,42 @@ chmod +x .cmux/init
 
 The init script runs in the workspace directory with the workspace's environment.
 
+## Environment Variables
+
+Init hooks receive the following environment variables:
+
+- `MUX_PROJECT_PATH` - Absolute path to the project root on the **local machine**
+  - Always refers to your local project path, even on SSH workspaces
+  - Useful for logging, debugging, or runtime-specific logic
+- `MUX_RUNTIME` - Runtime type: `"local"` or `"ssh"`
+  - Use this to detect whether the hook is running locally or remotely
+
+**Note for SSH workspaces:** Since the project is synced to the remote machine, files exist in both locations. The init hook runs in the workspace directory (`$PWD`), so use relative paths to reference project files:
+
+```bash
+#!/bin/bash
+set -e
+
+echo "Runtime: $MUX_RUNTIME"
+echo "Local project path: $MUX_PROJECT_PATH"
+echo "Workspace directory: $PWD"
+
+# Copy .env from project root (works for both local and SSH)
+# The hook runs with cwd = workspace, and project root is the parent directory
+if [ -f "../.env" ]; then
+  cp "../.env" "$PWD/.env"
+fi
+
+# Runtime-specific behavior
+if [ "$MUX_RUNTIME" = "local" ]; then
+  echo "Running on local machine"
+else
+  echo "Running on SSH remote"
+fi
+
+bun install
+```
+
 ## Use Cases
 
 - Install dependencies (`npm install`, `bun install`, etc.)
diff --git a/src/runtime/LocalRuntime.ts b/src/runtime/LocalRuntime.ts
index e64c162ab9..f6750720e0 100644
--- a/src/runtime/LocalRuntime.ts
+++ b/src/runtime/LocalRuntime.ts
@@ -20,7 +20,12 @@ import { RuntimeError as RuntimeErrorClass } from "./Runtime";
 import { NON_INTERACTIVE_ENV_VARS } from "../constants/env";
 import { EXIT_CODE_ABORTED, EXIT_CODE_TIMEOUT } from "../constants/exitCodes";
 import { listLocalBranches } from "../git";
-import { checkInitHookExists, getInitHookPath, createLineBufferedLoggers } from "./initHook";
+import {
+  checkInitHookExists,
+  getInitHookPath,
+  createLineBufferedLoggers,
+  getInitHookEnv,
+} from "./initHook";
 import { execAsync, DisposableProcess } from "../utils/disposableExec";
 import { getProjectName } from "../utils/runtime/helpers";
 import { getErrorMessage } from "../utils/errors";
@@ -415,6 +420,10 @@ export class LocalRuntime implements Runtime {
       const proc = spawn("bash", ["-c", `"${hookPath}"`], {
         cwd: workspacePath,
         stdio: ["ignore", "pipe", "pipe"],
+        env: {
+          ...process.env,
+          ...getInitHookEnv(projectPath, "local"),
+        },
       });
 
       proc.stdout.on("data", (data: Buffer) => {
diff --git a/src/runtime/SSHRuntime.ts b/src/runtime/SSHRuntime.ts
index c35eb2e357..902f1cf30b 100644
--- a/src/runtime/SSHRuntime.ts
+++ b/src/runtime/SSHRuntime.ts
@@ -18,7 +18,7 @@ import type {
 import { RuntimeError as RuntimeErrorClass } from "./Runtime";
 import { EXIT_CODE_ABORTED, EXIT_CODE_TIMEOUT } from "../constants/exitCodes";
 import { log } from "../services/log";
-import { checkInitHookExists, createLineBufferedLoggers } from "./initHook";
+import { checkInitHookExists, createLineBufferedLoggers, getInitHookEnv } from "./initHook";
 import { streamProcessToLogger } from "./streamProcess";
 import { expandTildeForSSH, cdCommandForSSH } from "./tildeExpansion";
 import { getProjectName } from "../utils/runtime/helpers";
@@ -734,6 +734,7 @@ export class SSHRuntime implements Runtime {
       cwd: workspacePath, // Run in the workspace directory
       timeout: 3600, // 1 hour - generous timeout for init hooks
       abortSignal,
+      env: getInitHookEnv(projectPath, "ssh"),
     });
 
     // Create line-buffered loggers
diff --git a/src/runtime/initHook.ts b/src/runtime/initHook.ts
index 401b71f009..70862f3cfb 100644
--- a/src/runtime/initHook.ts
+++ b/src/runtime/initHook.ts
@@ -26,6 +26,22 @@ export function getInitHookPath(projectPath: string): string {
   return path.join(projectPath, ".cmux", "init");
 }
 
+/**
+ * Get environment variables for init hook execution
+ * Centralizes env var injection to avoid duplication across runtimes
+ * @param projectPath - Path to project root (local path for LocalRuntime, remote path for SSHRuntime)
+ * @param runtime - Runtime type: "local" or "ssh"
+ */
+export function getInitHookEnv(
+  projectPath: string,
+  runtime: "local" | "ssh"
+): Record<string, string> {
+  return {
+    MUX_PROJECT_PATH: projectPath,
+    MUX_RUNTIME: runtime,
+  };
+}
+
 /**
  * Line-buffered logger that splits stream output into lines and logs them
  * Handles incomplete lines by buffering until a newline is received