diff --git a/.gitignore b/.gitignore
index 9c014f5..eab15b5 100644
--- a/.gitignore
+++ b/.gitignore
@@ -164,6 +164,7 @@ logs
 .env
 scripts
 .vscode
+**/.env
 
 # Polymind learned facts and tools
 knowledge/facts/**
diff --git a/examples/media-gen/README.md b/examples/media-gen/README.md
index 55ee1ad..ee627f1 100644
--- a/examples/media-gen/README.md
+++ b/examples/media-gen/README.md
@@ -35,6 +35,31 @@ source venv/bin/activate  # On Windows: venv\Scripts\activate.bat
 pip install -r requirements.txt
 ```
 
+### Environment Configuration
+
+**Option 1: Use the setup script (recommended):**
+```bash
+python setup_env.py
+```
+
+**Option 2: Manual setup:**
+1. **Copy the environment template:**
+   ```bash
+   cp env.example .env
+   ```
+
+2. **Edit `.env` file with your API keys:**
+   ```bash
+   # Edit .env file with your actual API keys
+   nano .env  # or use your preferred editor
+   ```
+
+3. **Required API keys:**
+   - `OPENAI_API_KEY`: For DALL-E image generation
+   - `REPLICATE_API_TOKEN`: For various AI models
+
+   **Note:** The `.env` file is automatically ignored by git to keep your keys secure.
+
 ## File Structure
 
 ```
@@ -46,6 +71,9 @@ media-gen/
 │   └── dummy_video_gen.py         # Dummy video generation tool
 ├── tests/                         # Test suite
 │   └── test_dummy_media_gen.py    # Comprehensive tests
+
+├── env.example                    # Environment variables template
+├── setup_env.py                   # Environment setup script
 ├── example_usage.py               # Usage examples
 ├── requirements.txt               # Dependencies
 ├── setup_env.sh                   # Linux/macOS setup script
@@ -112,6 +140,15 @@ class MyVideoGen(VideoGenerationTool):
 
 ```python
 from tools import DummyImageGen, DummyVideoGen
+from dotenv import load_dotenv
+import os
+
+# Load environment variables
+load_dotenv()
+
+# Check configuration status
+print(f"OpenAI API Key: {'✓ Available' if os.getenv('OPENAI_API_KEY') else '✗ Missing'}")
+print(f"Replicate API Token: {'✓ Available' if os.getenv('REPLICATE_API_TOKEN') else '✗ Missing'}")
 
 # Initialize tools
 image_gen = DummyImageGen()
diff --git a/examples/media-gen/env.example b/examples/media-gen/env.example
new file mode 100644
index 0000000..f067572
--- /dev/null
+++ b/examples/media-gen/env.example
@@ -0,0 +1,14 @@
+# Media Generation Tools Environment Variables
+# Copy this file to .env and fill in your actual API keys
+
+# OpenAI API Configuration
+OPENAI_API_KEY=your_openai_api_key_here
+OPENAI_ORG_ID=your_openai_org_id_here  # Optional
+
+# Replicate API Configuration
+REPLICATE_API_TOKEN=your_replicate_api_token_here
+
+# Configuration
+DEFAULT_IMAGE_MODEL=dall-e-3
+DEFAULT_VIDEO_MODEL=stable-video-diffusion
+LOG_LEVEL=INFO 
\ No newline at end of file
diff --git a/examples/media-gen/example_usage.py b/examples/media-gen/example_usage.py
index a1fc443..c5a0e14 100644
--- a/examples/media-gen/example_usage.py
+++ b/examples/media-gen/example_usage.py
@@ -2,17 +2,53 @@
 Example usage of the media generation tools.
 
 This script demonstrates how to use the DummyImageGen and DummyVideoGen tools
-with the new parameter specifications.
+with the new parameter specifications and environment variable configuration.
 """
 
+import os
+
+from dotenv import load_dotenv
 from tools import DummyImageGen, DummyVideoGen
 
 
+def check_config_status():
+    """Check and display configuration status."""
+    print("Configuration Status:")
+    print("=" * 40)
+    
+    # Load environment variables
+    load_dotenv()
+    
+    # Check API keys
+    openai_key = os.getenv("OPENAI_API_KEY")
+    replicate_token = os.getenv("REPLICATE_API_TOKEN")
+    
+    print(f"OpenAI API Key: {'✓ Available' if openai_key else '✗ Missing'}")
+    print(f"Replicate API Token: "
+          f"{'✓ Available' if replicate_token else '✗ Missing'}")
+    
+    # Show configuration
+    default_image = os.getenv('DEFAULT_IMAGE_MODEL', 'dall-e-3')
+    default_video = os.getenv('DEFAULT_VIDEO_MODEL', 'stable-video-diffusion')
+    log_level = os.getenv('LOG_LEVEL', 'INFO')
+    
+    print(f"\nDefault Image Model: {default_image}")
+    print(f"Default Video Model: {default_video}")
+    print(f"Log Level: {log_level}")
+    
+    if not openai_key or not replicate_token:
+        print("\nMissing API keys. Please check your .env file.")
+
+
 def main():
     """Demonstrate the media generation tools."""
     print("Media Generation Tools Example")
     print("=" * 40)
     
+    # Check configuration status
+    print("\nConfiguration Status:")
+    check_config_status()
+    
     # Initialize tools
     image_gen = DummyImageGen()
     video_gen = DummyVideoGen()
diff --git a/examples/media-gen/requirements.txt b/examples/media-gen/requirements.txt
index f5babf8..639886c 100644
--- a/examples/media-gen/requirements.txt
+++ b/examples/media-gen/requirements.txt
@@ -9,6 +9,7 @@ polymind
 
 # Development dependencies
 pytest  # For running tests
+python-dotenv  # For environment variable management
 
 # Additional dependencies that Polymind requires
 anthropic  # For Claude integration
diff --git a/examples/media-gen/setup_env.py b/examples/media-gen/setup_env.py
new file mode 100644
index 0000000..2fdae48
--- /dev/null
+++ b/examples/media-gen/setup_env.py
@@ -0,0 +1,46 @@
+#!/usr/bin/env python3
+"""
+Setup script for media generation tools environment.
+
+This script helps users set up their .env file with the required API keys.
+"""
+import shutil
+from pathlib import Path
+
+
+def setup_environment():
+    """Set up the environment configuration."""
+    print("Media Generation Tools Environment Setup")
+    print("=" * 40)
+    
+    # Check if .env already exists
+    env_file = Path(".env")
+    example_file = Path("env.example")
+    
+    if env_file.exists():
+        print("✓ .env file already exists")
+        response = input("Do you want to overwrite it? (y/N): ").lower()
+        if response != 'y':
+            print("Setup cancelled.")
+            return
+    
+    # Copy example file to .env
+    if example_file.exists():
+        shutil.copy(example_file, env_file)
+        print("✓ Created .env file from template")
+    else:
+        print("✗ env.example file not found")
+        return
+    
+    print("\nNext steps:")
+    print("1. Edit the .env file with your actual API keys")
+    print("2. Run 'python example_usage.py' to test the setup")
+    print("\nRequired API keys:")
+    print("- OPENAI_API_KEY: For DALL-E image generation")
+    print("- REPLICATE_API_TOKEN: For various AI models")
+    
+    print("\n✓ Environment setup completed!")
+
+
+if __name__ == "__main__":
+    setup_environment() 
\ No newline at end of file
diff --git a/examples/media-gen/tools/dummy_image_gen.py b/examples/media-gen/tools/dummy_image_gen.py
index b370126..05f902f 100644
--- a/examples/media-gen/tools/dummy_image_gen.py
+++ b/examples/media-gen/tools/dummy_image_gen.py
@@ -68,7 +68,8 @@ def run(self, input: dict) -> dict:
                 "aspect_ratio": aspect_ratio,
                 "output_format": output_format,
                 "seed": "12345",
-                "status": "generated (dummy)"
+                "status": "generated (dummy)",
+                "note": "This is a dummy implementation. Real tools would use API keys from .env"
             }
         }
 
diff --git a/pyproject.toml b/pyproject.toml
index b31da67..b87d7aa 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -46,7 +46,11 @@ milvus = ["pymilvus"]
 line-length = 120
 
 [tool.isort]
-skip = ["__init__.py"]
+profile = "black"
+line_length = 120
+skip = ["__init__.py", "venv", "*/venv/*", "*/__pycache__/*", "*/site-packages/*"]
+known_first_party = ["polymind"]
+known_third_party = ["dotenv", "pathlib", "shutil"]
 
 [tool.flake8]
 max-line-length = 120
diff --git a/tests/polymind/core_tools/test_llm_tools.py b/tests/polymind/core_tools/test_llm_tools.py
index f22a1a7..360f617 100644
--- a/tests/polymind/core_tools/test_llm_tools.py
+++ b/tests/polymind/core_tools/test_llm_tools.py
@@ -11,8 +11,7 @@
 import pytest
 
 from polymind.core.message import Message
-from polymind.core_tools.llm_tool import (OpenAIChatTool,
-                                          OpenAICodeGenerationTool)
+from polymind.core_tools.llm_tool import OpenAIChatTool, OpenAICodeGenerationTool
 
 
 class TestOpenAIChatTool: