diff --git a/src/__tests__/extension.spec.ts b/src/__tests__/extension.spec.ts
index 5b072672699..0bdbb26d462 100644
--- a/src/__tests__/extension.spec.ts
+++ b/src/__tests__/extension.spec.ts
@@ -46,6 +46,11 @@ vi.mock("@dotenvx/dotenvx", () => ({
 	config: vi.fn(),
 }))
 
+// Mock fs so the extension module can safely check for optional .env.
+vi.mock("fs", () => ({
+	existsSync: vi.fn().mockReturnValue(false),
+}))
+
 const mockBridgeOrchestratorDisconnect = vi.fn().mockResolvedValue(undefined)
 
 const mockCloudServiceInstance = {
@@ -238,6 +243,36 @@ describe("extension.ts", () => {
 		authStateChangedHandler = undefined
 	})
 
+	test("does not call dotenvx.config when optional .env does not exist", async () => {
+		vi.resetModules()
+		vi.clearAllMocks()
+
+		const fs = await import("fs")
+		vi.mocked(fs.existsSync).mockReturnValue(false)
+
+		const dotenvx = await import("@dotenvx/dotenvx")
+
+		const { activate } = await import("../extension")
+		await activate(mockContext)
+
+		expect(dotenvx.config).not.toHaveBeenCalled()
+	})
+
+	test("calls dotenvx.config when optional .env exists", async () => {
+		vi.resetModules()
+		vi.clearAllMocks()
+
+		const fs = await import("fs")
+		vi.mocked(fs.existsSync).mockReturnValue(true)
+
+		const dotenvx = await import("@dotenvx/dotenvx")
+
+		const { activate } = await import("../extension")
+		await activate(mockContext)
+
+		expect(dotenvx.config).toHaveBeenCalledTimes(1)
+	})
+
 	test("authStateChangedHandler calls BridgeOrchestrator.disconnect when logged-out event fires", async () => {
 		const { CloudService, BridgeOrchestrator } = await import("@roo-code/cloud")
 
diff --git a/src/extension.ts b/src/extension.ts
index bcfbe339932..262bf623378 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -1,15 +1,20 @@
 import * as vscode from "vscode"
 import * as dotenvx from "@dotenvx/dotenvx"
+import * as fs from "fs"
 import * as path from "path"
 
 // Load environment variables from .env file
-try {
-	// Specify path to .env file in the project root directory
-	const envPath = path.join(__dirname, "..", ".env")
-	dotenvx.config({ path: envPath })
-} catch (e) {
-	// Silently handle environment loading errors
-	console.warn("Failed to load environment variables:", e)
+// The extension-level .env is optional (not shipped in production builds).
+// Avoid calling dotenvx when the file doesn't exist, otherwise dotenvx emits
+// a noisy [MISSING_ENV_FILE] error to the extension host console.
+const envPath = path.join(__dirname, "..", ".env")
+if (fs.existsSync(envPath)) {
+	try {
+		dotenvx.config({ path: envPath })
+	} catch (e) {
+		// Best-effort only: never fail extension activation due to optional env loading.
+		console.warn("Failed to load environment variables:", e)
+	}
 }
 
 import type { CloudUserInfo, AuthState } from "@roo-code/types"