diff --git a/.changes/unreleased/Fixes-20250823-155551.yaml b/.changes/unreleased/Fixes-20250823-155551.yaml
new file mode 100644
index 00000000000..e7a988e0dd1
--- /dev/null
+++ b/.changes/unreleased/Fixes-20250823-155551.yaml
@@ -0,0 +1,6 @@
+kind: Fixes
+body: Fixes issue with package locking, where using environment variables would cause lockfile regeneration in different environments
+time: 2025-08-23T15:55:51.916929-07:00
+custom:
+    Author: ttusing
+    Issue: "11953"
diff --git a/core/dbt/contracts/project.py b/core/dbt/contracts/project.py
index fc7d96601a8..9a5a501be85 100644
--- a/core/dbt/contracts/project.py
+++ b/core/dbt/contracts/project.py
@@ -78,6 +78,9 @@ class GitPackage(Package):
     subdirectory: Optional[str] = None
     unrendered: Dict[str, Any] = field(default_factory=dict)
     name: Optional[str] = None
+    exclude_env_vars_from_hash: Optional[bool] = field(
+        default=None, metadata={"alias": "exclude-env-vars-from-hash"}
+    )
 
     def get_revisions(self) -> List[str]:
         if self.revision is None:
@@ -85,6 +88,17 @@ def get_revisions(self) -> List[str]:
         else:
             return [str(self.revision)]
 
+    def to_dict_for_hash(self) -> Dict[str, Any]:
+        """Create a dict representation for hash calculation that can optionally exclude env vars"""
+        data = self.to_dict()
+        if self.exclude_env_vars_from_hash:
+            # Use unrendered git URL if available to exclude env vars from hash
+            if "git" in self.unrendered:
+                data["git"] = self.unrendered["git"]
+            # Remove the exclude-env-vars-from-hash flag itself from the hash
+            data.pop("exclude-env-vars-from-hash", None)
+        return data
+
 
 @dataclass
 class PrivatePackage(Package):
diff --git a/core/dbt/events/types.py b/core/dbt/events/types.py
index c50aba9085d..04f7ddd961e 100644
--- a/core/dbt/events/types.py
+++ b/core/dbt/events/types.py
@@ -1517,6 +1517,14 @@ def message(self) -> str:
         return f"Found duplicate package in packages.yml, removing: {self.removed_package}"
 
 
+class DepsLockfileRegenerating(WarnLevel):
+    def code(self):
+        return "M034"
+
+    def message(self) -> str:
+        return f"Package lockfile is out of sync with packages.yml. Regenerating lockfile at: {self.lock_filepath}"
+
+
 class DepsScrubbedPackageName(WarnLevel):
     def code(self):
         return "M035"
diff --git a/core/dbt/task/deps.py b/core/dbt/task/deps.py
index cd5624a9c71..b0965fb173f 100644
--- a/core/dbt/task/deps.py
+++ b/core/dbt/task/deps.py
@@ -21,6 +21,7 @@
     DepsFoundDuplicatePackage,
     DepsInstallInfo,
     DepsListSubdirectory,
+    DepsLockfileRegenerating,
     DepsLockUpdating,
     DepsNoPackagesFound,
     DepsNotifyUpdatesAvailable,
@@ -50,7 +51,14 @@ def _create_sha1_hash(packages: List[PackageSpec]) -> str:
     Returns:
         str: SHA1 hash of the packages list
     """
-    package_strs = [json.dumps(package.to_dict(), sort_keys=True) for package in packages]
+    package_strs = []
+    for package in packages:
+        if hasattr(package, "to_dict_for_hash"):
+            package_dict = package.to_dict_for_hash()
+        else:
+            package_dict = package.to_dict()
+        package_strs.append(json.dumps(package_dict, sort_keys=True))
+
     package_strs = sorted(package_strs)
 
     return sha1("\n".join(package_strs).encode("utf-8")).hexdigest()
@@ -220,6 +228,7 @@ def run(self) -> None:
             current_hash = _create_sha1_hash(self.project.packages.packages)
             previous_hash = load_yml_dict(lock_file_path).get(PACKAGE_LOCK_HASH_KEY, None)
             if previous_hash != current_hash:
+                fire_event(DepsLockfileRegenerating(lock_filepath=lock_file_path))
                 self.lock()
 
         # Early return when 'dbt deps --lock'
diff --git a/tests/unit/contracts/test_git_package_env_var_exclusion.py b/tests/unit/contracts/test_git_package_env_var_exclusion.py
new file mode 100644
index 00000000000..121b38bed5b
--- /dev/null
+++ b/tests/unit/contracts/test_git_package_env_var_exclusion.py
@@ -0,0 +1,290 @@
+import json
+from hashlib import sha1
+
+from dbt.contracts.project import GitPackage
+from dbt.task.deps import _create_sha1_hash
+from tests.unit.utils import ContractTestCase
+
+
+class TestGitPackageEnvVarExclusion(ContractTestCase):
+    ContractType = GitPackage
+
+    def test_git_package_with_exclude_env_vars_from_hash_true(self):
+        """Test GitPackage with exclude-env-vars-from-hash set to True"""
+        dct = {
+            "git": "https://github.com/user/repo.git",
+            "revision": "v1.0.0",
+            "exclude-env-vars-from-hash": True,
+        }
+        package = self.ContractType(
+            git="https://github.com/user/repo.git",
+            revision="v1.0.0",
+            exclude_env_vars_from_hash=True,
+        )
+        self.assert_from_dict(package, dct)
+
+    def test_git_package_with_exclude_env_vars_from_hash_false(self):
+        """Test GitPackage with exclude-env-vars-from-hash set to False"""
+        dct = {
+            "git": "https://github.com/user/repo.git",
+            "revision": "v1.0.0",
+            "exclude-env-vars-from-hash": False,
+        }
+        package = self.ContractType(
+            git="https://github.com/user/repo.git",
+            revision="v1.0.0",
+            exclude_env_vars_from_hash=False,
+        )
+        self.assert_from_dict(package, dct)
+
+    def test_git_package_without_exclude_env_vars_from_hash(self):
+        """Test GitPackage without exclude-env-vars-from-hash (default behavior)"""
+        dct = {
+            "git": "https://github.com/user/repo.git",
+            "revision": "v1.0.0",
+        }
+        package = self.ContractType(
+            git="https://github.com/user/repo.git",
+            revision="v1.0.0",
+        )
+        self.assert_from_dict(package, dct)
+
+    def test_to_dict_for_hash_excludes_env_vars_when_flag_is_true(self):
+        """Test that to_dict_for_hash excludes env vars when exclude_env_vars_from_hash is True"""
+        # Create a package with unrendered git URL containing env vars
+        package = GitPackage(
+            git="https://github.com/${GITHUB_USER}/repo.git",
+            revision="v1.0.0",
+            exclude_env_vars_from_hash=True,
+            unrendered={"git": "https://github.com/${GITHUB_USER}/repo.git"},
+        )
+
+        # Get the dict for hash calculation
+        hash_dict = package.to_dict_for_hash()
+
+        # Should use the unrendered git URL and exclude the flag itself
+        self.assertEqual(hash_dict["git"], "https://github.com/${GITHUB_USER}/repo.git")
+        self.assertEqual(hash_dict["revision"], "v1.0.0")
+        self.assertNotIn("exclude-env-vars-from-hash", hash_dict)
+
+    def test_to_dict_for_hash_includes_env_vars_when_flag_is_false(self):
+        """Test that to_dict_for_hash includes env vars when exclude_env_vars_from_hash is False"""
+        # Create a package with rendered git URL
+        package = GitPackage(
+            git="https://github.com/actualuser/repo.git",
+            revision="v1.0.0",
+            exclude_env_vars_from_hash=False,
+            unrendered={"git": "https://github.com/${GITHUB_USER}/repo.git"},
+        )
+
+        # Get the dict for hash calculation
+        hash_dict = package.to_dict_for_hash()
+
+        # Should use the rendered git URL and include the flag
+        self.assertEqual(hash_dict["git"], "https://github.com/actualuser/repo.git")
+        self.assertEqual(hash_dict["revision"], "v1.0.0")
+        self.assertEqual(hash_dict["exclude-env-vars-from-hash"], False)
+
+    def test_to_dict_for_hash_includes_env_vars_when_flag_is_none(self):
+        """Test that to_dict_for_hash includes env vars when exclude_env_vars_from_hash is None (default)"""
+        # Create a package with rendered git URL
+        package = GitPackage(
+            git="https://github.com/actualuser/repo.git",
+            revision="v1.0.0",
+            unrendered={"git": "https://github.com/${GITHUB_USER}/repo.git"},
+        )
+
+        # Get the dict for hash calculation (should use regular to_dict)
+        hash_dict = package.to_dict_for_hash()
+
+        # Should use the rendered git URL since flag is None (falsy)
+        self.assertEqual(hash_dict["git"], "https://github.com/actualuser/repo.git")
+        self.assertEqual(hash_dict["revision"], "v1.0.0")
+        self.assertIsNone(hash_dict.get("exclude-env-vars-from-hash"))
+
+    def test_hash_calculation_with_exclude_env_vars_true(self):
+        """Test that _create_sha1_hash uses to_dict_for_hash when available and excludes env vars"""
+        # Create two packages: one with env vars resolved, one without
+        package_with_env_vars = GitPackage(
+            git="https://github.com/actualuser/repo.git",
+            revision="v1.0.0",
+            exclude_env_vars_from_hash=True,
+            unrendered={"git": "https://github.com/${GITHUB_USER}/repo.git"},
+        )
+
+        package_without_env_vars = GitPackage(
+            git="https://github.com/differentuser/repo.git",
+            revision="v1.0.0",
+            exclude_env_vars_from_hash=True,
+            unrendered={"git": "https://github.com/${GITHUB_USER}/repo.git"},
+        )
+
+        # Both packages should produce the same hash since they use unrendered URLs
+        hash1 = _create_sha1_hash([package_with_env_vars])
+        hash2 = _create_sha1_hash([package_without_env_vars])
+
+        self.assertEqual(hash1, hash2, "Hashes should be identical when using unrendered URLs")
+
+    def test_hash_calculation_with_exclude_env_vars_false(self):
+        """Test that _create_sha1_hash includes env vars when exclude_env_vars_from_hash is False"""
+        # Create two packages with different resolved git URLs
+        package1 = GitPackage(
+            git="https://github.com/user1/repo.git",
+            revision="v1.0.0",
+            exclude_env_vars_from_hash=False,
+            unrendered={"git": "https://github.com/${GITHUB_USER}/repo.git"},
+        )
+
+        package2 = GitPackage(
+            git="https://github.com/user2/repo.git",
+            revision="v1.0.0",
+            exclude_env_vars_from_hash=False,
+            unrendered={"git": "https://github.com/${GITHUB_USER}/repo.git"},
+        )
+
+        # These packages should produce different hashes since they use rendered URLs
+        hash1 = _create_sha1_hash([package1])
+        hash2 = _create_sha1_hash([package2])
+
+        self.assertNotEqual(hash1, hash2, "Hashes should be different when using rendered URLs")
+
+    def test_hash_calculation_backwards_compatibility(self):
+        """Test that packages without to_dict_for_hash method still work (backwards compatibility)"""
+
+        # Create a simple mock package without to_dict_for_hash method
+        class SimplePackage:
+            def to_dict(self):
+                return {"git": "https://github.com/user/repo.git", "revision": "v1.0.0"}
+
+        simple_package = SimplePackage()
+
+        # This should not raise an error and should use to_dict instead
+        hash_result = _create_sha1_hash([simple_package])
+
+        # Verify the hash is calculated correctly
+        expected_dict = {"git": "https://github.com/user/repo.git", "revision": "v1.0.0"}
+        expected_str = json.dumps(expected_dict, sort_keys=True)
+        expected_hash = sha1(expected_str.encode("utf-8")).hexdigest()
+
+        self.assertEqual(hash_result, expected_hash)
+
+    def test_package_with_subdirectory_and_exclude_env_vars(self):
+        """Test GitPackage with subdirectory and exclude-env-vars-from-hash"""
+        package = GitPackage(
+            git="https://github.com/actualuser/repo.git",
+            revision="v1.0.0",
+            subdirectory="subdir",
+            exclude_env_vars_from_hash=True,
+            unrendered={"git": "https://github.com/${GITHUB_USER}/repo.git"},
+        )
+
+        hash_dict = package.to_dict_for_hash()
+
+        # Should include subdirectory and use unrendered git URL
+        self.assertEqual(hash_dict["git"], "https://github.com/${GITHUB_USER}/repo.git")
+        self.assertEqual(hash_dict["revision"], "v1.0.0")
+        self.assertEqual(hash_dict["subdirectory"], "subdir")
+        self.assertNotIn("exclude-env-vars-from-hash", hash_dict)
+
+    def test_package_without_unrendered_git_url(self):
+        """Test GitPackage with exclude_env_vars_from_hash=True but no unrendered git URL"""
+        package = GitPackage(
+            git="https://github.com/user/repo.git",
+            revision="v1.0.0",
+            exclude_env_vars_from_hash=True,
+            # No unrendered dict or git key
+        )
+
+        hash_dict = package.to_dict_for_hash()
+
+        # Should use the regular git URL since no unrendered version is available
+        self.assertEqual(hash_dict["git"], "https://github.com/user/repo.git")
+        self.assertEqual(hash_dict["revision"], "v1.0.0")
+        self.assertNotIn("exclude-env-vars-from-hash", hash_dict)
+
+    def test_yaml_alias_support(self):
+        """Test that the YAML alias 'exclude-env-vars-from-hash' works correctly"""
+        # Test creating from dict using the alias
+        dct_with_alias = {
+            "git": "https://github.com/user/repo.git",
+            "revision": "v1.0.0",
+            "exclude-env-vars-from-hash": True,
+        }
+        package = GitPackage.from_dict(dct_with_alias)
+
+        # The field should be accessible via the Python attribute name
+        self.assertTrue(package.exclude_env_vars_from_hash)
+
+        # Converting back to dict should use the alias
+        result_dict = package.to_dict()
+        self.assertIn("exclude-env-vars-from-hash", result_dict)
+        self.assertTrue(result_dict["exclude-env-vars-from-hash"])
+
+    def test_hash_consistency_across_environments(self):
+        """Test that packages with same unrendered URLs produce consistent hashes"""
+        # Simulate packages from different environments with different resolved URLs
+        package_env1 = GitPackage(
+            git="https://github.com/user1/repo.git",  # Different resolved URLs
+            revision="v1.0.0",
+            exclude_env_vars_from_hash=True,
+            unrendered={
+                "git": "https://github.com/${GITHUB_USER}/repo.git"
+            },  # Same unrendered URL
+        )
+
+        package_env2 = GitPackage(
+            git="https://github.com/user2/repo.git",  # Different resolved URLs
+            revision="v1.0.0",
+            exclude_env_vars_from_hash=True,
+            unrendered={
+                "git": "https://github.com/${GITHUB_USER}/repo.git"
+            },  # Same unrendered URL
+        )
+
+        # Both should produce the same hash
+        hash1 = _create_sha1_hash([package_env1])
+        hash2 = _create_sha1_hash([package_env2])
+
+        self.assertEqual(
+            hash1, hash2, "Packages with same unrendered URLs should have consistent hashes"
+        )
+
+    def test_mixed_package_types_in_hash(self):
+        """Test hash calculation with mixed package types (some with to_dict_for_hash, some without)"""
+        # GitPackage with to_dict_for_hash method
+        git_package = GitPackage(
+            git="https://github.com/user/repo.git",
+            revision="v1.0.0",
+            exclude_env_vars_from_hash=True,
+            unrendered={"git": "https://github.com/${USER}/repo.git"},
+        )
+
+        # Mock package without to_dict_for_hash method
+        class SimplePackage:
+            def to_dict(self):
+                return {"tarball": "https://example.com/package.tar.gz", "name": "simple_package"}
+
+        simple_package = SimplePackage()
+
+        # Should handle mixed package types without error
+        hash_result = _create_sha1_hash([git_package, simple_package])
+
+        # Verify it's a valid SHA1 hash (40 hex characters)
+        self.assertEqual(len(hash_result), 40)
+        self.assertTrue(all(c in "0123456789abcdef" for c in hash_result))
+
+    def test_empty_unrendered_dict(self):
+        """Test GitPackage with exclude_env_vars_from_hash=True but empty unrendered dict"""
+        package = GitPackage(
+            git="https://github.com/user/repo.git",
+            revision="v1.0.0",
+            exclude_env_vars_from_hash=True,
+            unrendered={},  # Empty dict, no git key
+        )
+
+        hash_dict = package.to_dict_for_hash()
+
+        # Should use the regular git URL since unrendered["git"] doesn't exist
+        self.assertEqual(hash_dict["git"], "https://github.com/user/repo.git")
+        self.assertEqual(hash_dict["revision"], "v1.0.0")
+        self.assertNotIn("exclude-env-vars-from-hash", hash_dict)