diff --git a/packages/core/utils/src/common/__tests__/env-editor.spec.ts b/packages/core/utils/src/common/__tests__/env-editor.spec.ts
new file mode 100644
index 0000000000..c0606ab8a2
--- /dev/null
+++ b/packages/core/utils/src/common/__tests__/env-editor.spec.ts
@@ -0,0 +1,195 @@
+import { join } from "path"
+import { FileSystem } from "../file-system"
+import { EnvEditor } from "../env-editor"
+
+const BASE_PATH = join(__dirname, "env-editor-tests")
+const fs = new FileSystem(BASE_PATH)
+
+describe("Env editor", () => {
+  beforeEach(async () => {
+    await fs.cleanup()
+  })
+  afterAll(async () => {
+    await fs.cleanup()
+  })
+
+  test("add key-value pair to dot-env files", async () => {
+    await fs.create(".env", "")
+    await fs.create(".env.template", "")
+
+    const editor = new EnvEditor(BASE_PATH)
+    await editor.load()
+    editor.set("PORT", 3000)
+
+    expect(editor.toJSON()).toEqual([
+      {
+        exists: true,
+        filePath: join(fs.basePath, ".env"),
+        contents: ["", "PORT=3000"],
+      },
+      {
+        exists: true,
+        filePath: join(fs.basePath, ".env.template"),
+        contents: ["", "PORT=3000"],
+      },
+    ])
+  })
+
+  test("modify non-existing files as well", async () => {
+    const editor = new EnvEditor(BASE_PATH)
+    await editor.load()
+    editor.set("PORT", 3000)
+
+    expect(editor.toJSON()).toEqual([
+      {
+        exists: false,
+        filePath: join(fs.basePath, ".env"),
+        contents: ["PORT=3000"],
+      },
+      {
+        exists: false,
+        filePath: join(fs.basePath, ".env.template"),
+        contents: ["PORT=3000"],
+      },
+    ])
+  })
+
+  test("update existing key value pair", async () => {
+    await fs.create(".env", "PORT=3333")
+    await fs.create(".env.template", "PORT=4000")
+
+    const editor = new EnvEditor(BASE_PATH)
+    await editor.load()
+    editor.set("PORT", 3000)
+
+    expect(editor.toJSON()).toEqual([
+      {
+        exists: true,
+        filePath: join(fs.basePath, ".env"),
+        contents: ["PORT=3000"],
+      },
+      {
+        exists: true,
+        filePath: join(fs.basePath, ".env.template"),
+        contents: ["PORT=3000"],
+      },
+    ])
+  })
+
+  test("update in one file and add in another file", async () => {
+    await fs.create(".env", ["PORT=3333", "", "HOST=localhost"].join("\n"))
+    await fs.create(".env.template", "")
+
+    const editor = new EnvEditor(BASE_PATH)
+    await editor.load()
+    editor.set("PORT", 3000)
+
+    expect(editor.toJSON()).toEqual([
+      {
+        exists: true,
+        filePath: join(fs.basePath, ".env"),
+        contents: ["PORT=3000", "", "HOST=localhost"],
+      },
+      {
+        exists: true,
+        filePath: join(fs.basePath, ".env.template"),
+        contents: ["", "PORT=3000"],
+      },
+    ])
+  })
+
+  test("persist changes on disk", async () => {
+    await fs.create(".env", ["PORT=3333", "", "HOST=localhost"].join("\n"))
+    await fs.create(".env.template", "")
+
+    const editor = new EnvEditor(BASE_PATH)
+    await editor.load()
+    editor.set("PORT", 3000)
+    await editor.save()
+
+    const envFile = await fs.contents(".env")
+    expect(envFile.split("\n")).toEqual(["PORT=3000", "", "HOST=localhost"])
+
+    const envTemplateFile = await fs.contents(".env.template")
+    expect(envTemplateFile.split("\n")).toEqual(["", "PORT=3000"])
+  })
+
+  test("multiple times persist changes on disk", async () => {
+    await fs.create(".env", ["PORT=3333", "", "HOST=localhost"].join("\n"))
+    await fs.create(".env.template", "")
+
+    const editor = new EnvEditor(BASE_PATH)
+    await editor.load()
+
+    editor.set("PORT", 3000)
+    await editor.save()
+
+    let envFile = await fs.contents(".env")
+    expect(envFile.split("\n")).toEqual(["PORT=3000", "", "HOST=localhost"])
+
+    let envTemplateFile = await fs.contents(".env.template")
+    expect(envTemplateFile.split("\n")).toEqual(["", "PORT=3000"])
+
+    editor.set("HOST", "127.0.0.1")
+    await editor.save()
+
+    envFile = await fs.contents(".env")
+    expect(envFile.split("\n")).toEqual(["PORT=3000", "", "HOST=127.0.0.1"])
+
+    envTemplateFile = await fs.contents(".env.template")
+    expect(envTemplateFile.split("\n")).toEqual([
+      "",
+      "PORT=3000",
+      "HOST=127.0.0.1",
+    ])
+  })
+
+  test("add empty template value", async () => {
+    await fs.create(".env", "")
+    await fs.create(".env.template", "")
+
+    const editor = new EnvEditor(BASE_PATH)
+    await editor.load()
+
+    editor.set("PORT", 3000, { withEmptyTemplateValue: true })
+
+    expect(editor.toJSON()).toEqual([
+      {
+        exists: true,
+        filePath: join(fs.basePath, ".env"),
+        contents: ["", "PORT=3000"],
+      },
+      {
+        exists: true,
+        filePath: join(fs.basePath, ".env.template"),
+        contents: ["", "PORT="],
+      },
+    ])
+  })
+
+  test("do not replace existing template value with empty value", async () => {
+    await fs.create(".env", ["PORT=3333", "", "HOST=localhost"].join("\n"))
+    await fs.create(
+      ".env.template",
+      ["PORT=3333", "", "HOST=localhost"].join("\n")
+    )
+
+    const editor = new EnvEditor(BASE_PATH)
+    await editor.load()
+
+    editor.set("PORT", 3000, { withEmptyTemplateValue: true })
+
+    expect(editor.toJSON()).toEqual([
+      {
+        exists: true,
+        filePath: join(fs.basePath, ".env"),
+        contents: ["PORT=3000", "", "HOST=localhost"],
+      },
+      {
+        exists: true,
+        filePath: join(fs.basePath, ".env.template"),
+        contents: ["PORT=3333", "", "HOST=localhost"],
+      },
+    ])
+  })
+})
diff --git a/packages/core/utils/src/common/env-editor.ts b/packages/core/utils/src/common/env-editor.ts
new file mode 100644
index 0000000000..7a577cd11f
--- /dev/null
+++ b/packages/core/utils/src/common/env-editor.ts
@@ -0,0 +1,104 @@
+import { join } from "path"
+import { writeFile, readFile } from "fs/promises"
+
+/**
+ * Exposes the API to edit Env files
+ */
+export class EnvEditor {
+  #appRoot: string
+  #files: {
+    exists: boolean
+    contents: string[]
+    filePath: string
+  }[] = []
+
+  constructor(appRoot: string) {
+    this.#appRoot = appRoot
+  }
+
+  /**
+   * Reads a file and returns with contents. Ignores error
+   * when file is missing
+   */
+  async #readFile(filePath: string) {
+    try {
+      const contents = await readFile(filePath, "utf-8")
+      return {
+        exists: true,
+        contents: contents.split(/\r?\n/),
+        filePath,
+      }
+    } catch (error) {
+      if (error.code === "ENOENT") {
+        return {
+          exists: false,
+          contents: [],
+          filePath,
+        }
+      }
+      throw error
+    }
+  }
+
+  /**
+   * Loads .env and .env.template files for editing.
+   */
+  async load() {
+    this.#files = await Promise.all(
+      [join(this.#appRoot, ".env"), join(this.#appRoot, ".env.template")].map(
+        (filePath) => this.#readFile(filePath)
+      )
+    )
+  }
+
+  /**
+   * Set key-value pair to the dot-env files.
+   *
+   * If `withEmptyTemplateValue` is true then the key will be added with an empty value
+   * to the `.env.template` file.
+   */
+  set(
+    key: string,
+    value: string | number | boolean,
+    options?: {
+      withEmptyTemplateValue: boolean
+    }
+  ) {
+    const withEmptyTemplateValue = options?.withEmptyTemplateValue ?? false
+    this.#files.forEach((file) => {
+      let entryIndex = file.contents.findIndex((line) =>
+        line.startsWith(`${key}=`)
+      )
+      const writeIndex = entryIndex === -1 ? file.contents.length : entryIndex
+
+      if (withEmptyTemplateValue && file.filePath.endsWith(".env.template")) {
+        /**
+         * Do not remove existing template value (if any)
+         */
+        if (entryIndex === -1) {
+          file.contents[writeIndex] = `${key}=`
+        }
+      } else {
+        file.contents[writeIndex] = `${key}=${value}`
+      }
+    })
+  }
+
+  /**
+   * Get files and their contents as JSON
+   */
+  toJSON() {
+    return this.#files
+  }
+
+  /**
+   * Save changes back to the disk
+   */
+  async save() {
+    await Promise.all(
+      this.#files.map((file) => {
+        return writeFile(file.filePath, file.contents.join("\n"))
+      })
+    )
+  }
+}
diff --git a/packages/core/utils/src/common/index.ts b/packages/core/utils/src/common/index.ts
index 1636a265d4..0533571f47 100644
--- a/packages/core/utils/src/common/index.ts
+++ b/packages/core/utils/src/common/index.ts
@@ -69,4 +69,5 @@ export * from "./upper-case-first"
 export * from "./validate-handle"
 export * from "./wrap-handler"
 export * from "./define-config"
+export * from "./env-editor"
 export * from "./normalize-import-path-with-source"