diff --git a/README.md b/README.md
index 883cee884..d5b5f7a4a 100644
--- a/README.md
+++ b/README.md
@@ -60,6 +60,15 @@ Once `.env` files is created adjust it to your needs, and update `LACE_EXTENSION
 
 > If you want to develop DApp Explorer please refer to the [Setting up local connection with DApp Radar API](apps/browser-extension-wallet/src/views/browser-view/features/dapp/README.md) page
 
+#### Configure Sentry for the local dev environment
+
+If you want to log errors to Sentry from you local dev environment you need to provide in your `.env` file Sentry [dsn](https://docs.sentry.io/platforms/javascript/configuration/options/#dsn) and [environment](https://docs.sentry.io/platforms/javascript/configuration/options/#environment) values.
+```
+SENTRY_DSN=<SENTRY_DSN>
+SENTRY_ENVIRONMENT=development
+```
+To get **Sentry dsn** log in to [Sentry](https://iohk-j4.sentry.io/) and go to `Settings -> Projects -> lace-extension-v1 -> Client Keys` or click [here](https://iohk-j4.sentry.io/settings/projects/lace-extension-v1/keys/).
+
 ### Build packages and extension
 
 ```sh
diff --git a/apps/browser-extension-wallet/.env.defaults b/apps/browser-extension-wallet/.env.defaults
index 9bbdc948b..1cfb00536 100644
--- a/apps/browser-extension-wallet/.env.defaults
+++ b/apps/browser-extension-wallet/.env.defaults
@@ -76,7 +76,7 @@ SENTRY_AUTH_TOKEN=
 SENTRY_DSN=
 SENTRY_ORG=
 SENTRY_PROJECT=
-SENTRY_ENVIRONMENT=development
+SENTRY_ENVIRONMENT=
 
 # Cardano Services
 CARDANO_SERVICES_URL_MAINNET=https://live-mainnet.lw.iog.io
diff --git a/apps/browser-extension-wallet/sentry.js b/apps/browser-extension-wallet/sentry.js
index cb8c8288d..490e06af3 100644
--- a/apps/browser-extension-wallet/sentry.js
+++ b/apps/browser-extension-wallet/sentry.js
@@ -1,6 +1,7 @@
 import * as Sentry from '@sentry/react';
 import { v4 as uuidv4 } from 'uuid';
 import { storage } from 'webextension-polyfill';
+
 Sentry.init({
   environment: process.env.SENTRY_ENVIRONMENT,
   dsn: process.env.SENTRY_DSN,