diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3f41d81820..758c1d4caf 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,7 +6,7 @@ and this project adheres to [Semantic Versioning](http://semver.org/).
 
 ## [Unreleased]
 * fix: Resolve correct model factory instance when application namespace is empty
-
+* fix: fix return types for App::environment() [#1303](https://github.com/nunomaduro/larastan/pull/1303)
 ### Fixed
 
 * fix: Remove stubs for `having()` and `orHaving()` QueryBuilder methods by @Maxoulak in [#1258](https://github.com/nunomaduro/larastan/pull/1258)
diff --git a/extension.neon b/extension.neon
index cb3c337f43..7bb365bb78 100644
--- a/extension.neon
+++ b/extension.neon
@@ -372,6 +372,10 @@ services:
         class: NunoMaduro\Larastan\Types\GenericEloquentBuilderTypeNodeResolverExtension
         tags:
             - phpstan.phpDoc.typeNodeResolverExtension
+    -
+        class: NunoMaduro\Larastan\Types\AppEnvironmentReturnTypeExtension
+        tags:
+            - phpstan.broker.dynamicMethodReturnTypeExtension
 
     -
         class: NunoMaduro\Larastan\Types\ModelProperty\ModelPropertyTypeNodeResolverExtension
diff --git a/src/Types/AppEnvironmentReturnTypeExtension.php b/src/Types/AppEnvironmentReturnTypeExtension.php
new file mode 100644
index 0000000000..9739fd0eeb
--- /dev/null
+++ b/src/Types/AppEnvironmentReturnTypeExtension.php
@@ -0,0 +1,46 @@
+<?php
+
+declare(strict_types=1);
+
+namespace NunoMaduro\Larastan\Types;
+
+use PHPStan\Type\Type;
+use PHPStan\Analyser\Scope;
+use PHPStan\Type\ObjectType;
+use PhpParser\Node\Expr\MethodCall;
+use PHPStan\ShouldNotHappenException;
+use Illuminate\Foundation\Application;
+use Illuminate\Database\Eloquent\Model;
+use PHPStan\Reflection\FunctionVariant;
+use PHPStan\Reflection\MethodReflection;
+use PHPStan\Type\Generic\GenericObjectType;
+use PHPStan\Type\Constant\ConstantStringType;
+use PHPStan\Type\StringType;
+use PHPStan\Type\BooleanType;
+use PHPStan\Reflection\ParametersAcceptorSelector;
+use PHPStan\Type\DynamicMethodReturnTypeExtension;
+
+class AppEnvironmentReturnTypeExtension implements DynamicMethodReturnTypeExtension
+{
+    public function getClass(): string
+    {
+        return Application::class;
+    }
+
+    public function isMethodSupported(MethodReflection $methodReflection): bool
+    {
+        return $methodReflection->getName() === 'environment';
+    }
+
+    public function getTypeFromMethodCall(
+        MethodReflection $methodReflection,
+        MethodCall $methodCall,
+        Scope $scope
+    ): Type {
+        if (count($methodCall->getArgs()) === 0) {
+            return new StringType();
+        }
+
+        return  new BooleanType();
+    }
+}
diff --git a/tests/Features/ReturnTypes/AppAccessTest.php b/tests/Features/ReturnTypes/AppAccessTest.php
new file mode 100644
index 0000000000..cd1941a943
--- /dev/null
+++ b/tests/Features/ReturnTypes/AppAccessTest.php
@@ -0,0 +1,19 @@
+<?php
+
+declare(strict_types=1);
+
+namespace Tests\Features\ReturnTypes;
+
+use Illuminate\Auth\AuthManager;
+use Illuminate\Container\Container;
+use function PHPStan\Testing\assertType;
+
+class AppAccessTest
+{
+    public function testEnvironment(): void
+    {
+        assertType('string', app()->environment());
+        assertType('bool', app()->environment('local'));
+        assertType('bool', app()->environment(['local', 'production']));
+    }
+}