diff --git a/CHANGELOG.md b/CHANGELOG.md
index 1c3c6565..d48c4a1e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -9,6 +9,7 @@
 * Adds Doorkeeper Generator with Devise. ([@TheZero0-ctrl][])
 * Adds Avo generator. ([@mausamp][])
 * Adds Sentry generator. ([@mausamp][])
+* Adds Dotenv generator. ([@mausamp][])
 
 ## 0.13.0 (March 26th, 2024)
 * Adds Letter Opener generator. ([@coolprobn][])
diff --git a/README.md b/README.md
index a56e7fe2..fd82fb9c 100644
--- a/README.md
+++ b/README.md
@@ -92,6 +92,7 @@ The boring generator introduces following generators:
 - Install Avo: `rails generate boring:avo:install`
 - Install Doorkeeper with devise: `rails generate boring:devise:doorkeeper:install`
 - Install Sentry: `rails generate boring:sentry:install --use_env_variable --breadcrumbs_logger=<breadcrumbs_logger_options>`
+- Install Dotenv: `rails generate boring:dotenv:install`
 
 ## Screencasts
 
diff --git a/lib/generators/boring/dotenv/install/install_generator.rb b/lib/generators/boring/dotenv/install/install_generator.rb
new file mode 100644
index 00000000..6eac0989
--- /dev/null
+++ b/lib/generators/boring/dotenv/install/install_generator.rb
@@ -0,0 +1,31 @@
+# frozen_string_literal: true
+
+module Boring
+  module Dotenv
+    class InstallGenerator < Rails::Generators::Base
+      desc 'Adds dotenv gem to the application'
+      source_root File.expand_path("templates", __dir__)
+
+      def add_dotenv_gem
+        say 'Adding dotenv gem', :green
+
+        Bundler.with_unbundled_env do
+          run 'bundle add dotenv-rails --group development'
+        end
+      end
+
+      def configure_dotenv_gem
+        say 'Configuring dotenv gem', :green
+
+        template '.env', '.env'
+
+        unless File.exist?('.gitignore')
+          create_file '.gitignore'
+        end
+
+        FileUtils.cp('.env', '.env.sample')
+        insert_into_file('.gitignore', "\n/.env\n")
+      end
+    end
+  end
+end
diff --git a/lib/generators/boring/dotenv/install/templates/.env b/lib/generators/boring/dotenv/install/templates/.env
new file mode 100644
index 00000000..26ad5aeb
--- /dev/null
+++ b/lib/generators/boring/dotenv/install/templates/.env
@@ -0,0 +1,3 @@
+# Add your environment variables here
+# Example:
+# SECRET_KEY_BASE=your_secret_key
\ No newline at end of file
diff --git a/test/generators/dotenv_install_generator_test.rb b/test/generators/dotenv_install_generator_test.rb
new file mode 100644
index 00000000..81276d6d
--- /dev/null
+++ b/test/generators/dotenv_install_generator_test.rb
@@ -0,0 +1,35 @@
+# frozen_string_literal: true
+
+require 'test_helper'
+require 'generators/boring/dotenv/install/install_generator'
+
+class DotenvInstallGeneratorTest < Rails::Generators::TestCase
+  tests Boring::Dotenv::InstallGenerator
+  setup :build_app
+  teardown :teardown_app
+
+  include GeneratorHelper
+
+  def destination_root
+    app_path
+  end
+
+  def test_should_install_dotenv_gem
+    Dir.chdir(app_path) do
+      quietly { run_generator }
+
+      assert_gem 'dotenv-rails'
+
+      assert_file '.env' do |content|
+        assert_match(/# Add your environment variables here/, content)
+        assert_match(/# SECRET_KEY_BASE=your_secret_key/, content)
+      end
+
+      assert_file '.env.sample'
+
+      assert_file '.gitignore' do |content|
+        assert_match(/.env/, content)
+      end
+    end
+  end
+end
\ No newline at end of file