diff --git a/README.md b/README.md
index f4a8255..a50f918 100644
--- a/README.md
+++ b/README.md
@@ -11,12 +11,13 @@ This will bootstrap MCSD.
 git clone "https://git.staropensource.de/JeremyStarTM/mcserverdocker.git"
 cd mcserverdocker
 mkdir server
+cp config.example.env config.env
 ```
 ## Step 2: Installing the server software
 Rename the jar file of your preferred server software to `server.jar` and move it into the `server/` directory.
 
-## Step 3: Modify the docker-compose.yml
-Take a look at the ports and environment variables inside the `docker-compose.yml` file and leave everything else as-is.
+## Step 3: Modify the configuration
+Take a look at the environment variables inside the `config.env` file.
 
 ## Step 4: Launching the server
 You need to start your server two times as we need to generate the `server.properties` file first. MCSD will do this automatically for you.
diff --git a/config.example b/config.example
new file mode 100644
index 0000000..dae7ca5
--- /dev/null
+++ b/config.example
@@ -0,0 +1,28 @@
+# MCServerDocker configuration file
+
+# ENFORCE_FRESH_CACHES
+## Cleans all caches on startup, useful if you experience issues.
+MCSD_ENFORCE_FRESH_CACHES=false
+
+# FORCE_UPGRADE
+## Updates all chunks to the latest version on startup, if possible. Will slow down startup time (if you switch versions) but will significantly increase server performance during runtime.
+MCSD_FORCE_UPGRADE=true
+
+# SAFEMODE
+# Disables all datapacks
+MCSD_SAFEMODE=false
+
+# AUTO_RESTART
+## Restarts the server automatically if it exits
+MCSD_AUTO_RESTART=true
+
+# CLEAN_LOGS
+# Removes all log files on startup (restarts are not affected)
+MCSD_CLEAN_LOGS=true
+
+# JAVA_VERSION
+## Minecraft version | Java version
+## <= 1.16           | 8
+## <= 1.16           | 11 (may increase performance)
+## >= 1.17           | 17
+MCSD_JAVA_VERSION=17
diff --git a/docker-compose.yml b/docker-compose.yml
index 4a23797..0c54f82 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -8,12 +8,7 @@ services:
   stop_grace_period: 120s
   volumes:
    - ./server:/data
-  environment:
-   - MCSD_ENFORCE_FRESH_CACHES=false  # cleans all caches on startup, useful if you experience issues
-   - MCSD_FORCE_UPGRADE=true          # updates all chunks to the latest version, if possible. will slow down startup time on upgrade but will significantly increase server performance during runtime
-   - MCSD_SAFEMODE=false              # disables all datapacks
-   - MCSD_AUTO_RESTART=true           # restarts the server automatically if it exists
-   - MCSD_CLEAN_LOGS=true             # removes all log files on startup (restarts are not affected)
-   - MCSD_JAVA_VERSION=17             # available arw: 17, 11 and 8
+  env_file:
+   - ./config.env
   ports:
    - 25565:25565