diff --git a/src/main/java/com/mageddo/dnsproxyserver/config/provider/dataformatv3/converter/EnvConverter.java b/src/main/java/com/mageddo/dnsproxyserver/config/provider/dataformatv3/converter/EnvConverter.java
index d1817e9c3..60f0c9a0e 100644
--- a/src/main/java/com/mageddo/dnsproxyserver/config/provider/dataformatv3/converter/EnvConverter.java
+++ b/src/main/java/com/mageddo/dnsproxyserver/config/provider/dataformatv3/converter/EnvConverter.java
@@ -2,19 +2,247 @@
 
 import com.mageddo.dnsproxyserver.config.provider.dataformatv3.ConfigV3;
 
+import java.lang.reflect.Field;
+import java.lang.reflect.ParameterizedType;
+import java.lang.reflect.Type;
+import java.util.*;
+import java.util.concurrent.ConcurrentHashMap;
+import java.util.stream.Stream;
+
 public class EnvConverter implements Converter {
+
+  static final String PREFIX = "DPS_";
+
+  private final Map<String, String> environment;
+
+  public EnvConverter() {
+    this(System.getenv());
+  }
+
+  EnvConverter(Map<String, String> environment) {
+    this.environment = new HashMap<>(environment);
+  }
+
   @Override
   public ConfigV3 parse() {
-    return null;
+    return new Parser(this.environment).parse();
   }
 
   @Override
   public String serialize(ConfigV3 config) {
-    return "";
+    throw new UnsupportedOperationException("Not implemented yet");
   }
 
   @Override
   public int priority() {
     return 0;
   }
+
+  private static final class Parser {
+
+    private static final Map<Class<?>, Map<String, Field>> CACHE = new ConcurrentHashMap<>();
+    public static final String FIELD_AND_CASE_SEPARATOR = "_";
+
+    private final Map<String, String> environment;
+
+    private Parser(Map<String, String> environment) {
+      this.environment = environment;
+    }
+
+    private ConfigV3 parse() {
+      final var config = new ConfigV3();
+      this.filterMatchingVariables()
+          .forEach(entry -> this.apply(config, entry.getKey(), entry.getValue()));
+      return config;
+    }
+
+    private Stream<Map.Entry<String, String>> filterMatchingVariables() {
+      return this.environment
+        .entrySet()
+        .stream()
+        .filter(entry -> isTargetVariable(entry.getKey(), entry.getValue()));
+    }
+
+    private static boolean isTargetVariable(String key, String value) {
+      return key != null && key.startsWith(PREFIX) && value != null;
+    }
+
+    private void apply(ConfigV3 config, String key, String value) {
+      final var tokens = this.buildTokens(key);
+      this.setValue(config, ConfigV3.class, tokens, value);
+    }
+
+    private Deque<String> buildTokens(String key) {
+      final var rawPath = key.substring(PREFIX.length());
+      return new ArrayDeque<>(List.of(rawPath.split(FIELD_AND_CASE_SEPARATOR)));
+    }
+
+    private void setValue(Object current, Class<?> type, Deque<String> tokens, String value) {
+      final var match = this.matchField(type, tokens);
+      consume(tokens, match.segmentsConsumed());
+
+      try {
+        final var field = match.field();
+        final var fieldType = field.getType();
+        if (List.class.isAssignableFrom(fieldType)) {
+          setListValue(current, field, tokens, value);
+          return;
+        }
+
+        if (tokens.isEmpty()) {
+          final var convertedValue = convert(value, fieldType);
+          field.set(current, convertedValue);
+          return;
+        }
+
+        var nestedValue = field.get(current);
+        if (nestedValue == null) {
+          nestedValue = instantiate(fieldType);
+          field.set(current, nestedValue);
+        }
+        setValue(nestedValue, fieldType, tokens, value);
+      } catch (ReflectiveOperationException e) {
+        throw new IllegalStateException("Failed to set value for key: " + match.field()
+                                                                               .getName(), e);
+      }
+    }
+
+    private void setListValue(Object current, Field field, Deque<String> tokens, String value)
+      throws ReflectiveOperationException {
+
+      if (tokens.isEmpty()) {
+        throw new IllegalArgumentException("Missing list index for field " + field.getName());
+      }
+
+      final var index = Integer.parseInt(tokens.removeFirst());
+      final var list = ensureList(current, field);
+      ensureCapacity(list, index);
+
+      final var elementType = resolveListElementType(field);
+      if (tokens.isEmpty()) {
+        list.set(index, convert(value, elementType));
+        return;
+      }
+
+      var item = list.get(index);
+      if (item == null) {
+        item = instantiate(elementType);
+        list.set(index, item);
+      }
+      setValue(item, elementType, tokens, value);
+    }
+
+    private static List<Object> ensureList(Object current, Field field) throws IllegalAccessException {
+      @SuppressWarnings("unchecked") var list = (List<Object>) field.get(current);
+      if (list == null) {
+        list = new ArrayList<>();
+        field.set(current, list);
+      }
+      return list;
+    }
+
+    private static void ensureCapacity(List<Object> list, int index) {
+      while (list.size() <= index) {
+        list.add(null);
+      }
+    }
+
+    private static Object convert(String value, Class<?> targetType) {
+      if (Objects.equals(targetType, String.class)) {
+        return value;
+      }
+      if (Objects.equals(targetType, Integer.class) || targetType == int.class) {
+        return Integer.valueOf(value);
+      }
+      if (Objects.equals(targetType, Boolean.class) || targetType == boolean.class) {
+        return Boolean.valueOf(value);
+      }
+      if (Objects.equals(targetType, Long.class) || targetType == long.class) {
+        return Long.valueOf(value);
+      }
+      throw new IllegalArgumentException("Unsupported conversion to " + targetType);
+    }
+
+    private static Object instantiate(Class<?> type) {
+      try {
+        return type.getDeclaredConstructor()
+                   .newInstance();
+      } catch (ReflectiveOperationException e) {
+        throw new IllegalStateException("Could not instantiate " + type.getName(), e);
+      }
+    }
+
+    private FieldMatch matchField(Class<?> type, Deque<String> tokens) {
+      final var fields = CACHE.computeIfAbsent(type, Parser::loadFields);
+      final var iterator = tokens.iterator();
+      final var consumed = new ArrayList<String>();
+      final var builder = new StringBuilder();
+
+      while (iterator.hasNext()) {
+        final var segment = iterator.next();
+        if (!consumed.isEmpty()) {
+          builder.append(FIELD_AND_CASE_SEPARATOR);
+        }
+        builder.append(segment);
+        consumed.add(segment);
+        final var field = fields.get(builder.toString());
+        if (field != null) {
+          return new FieldMatch(field, consumed.size());
+        }
+      }
+      throw new IllegalArgumentException("Unknown configuration path: " + String.join(FIELD_AND_CASE_SEPARATOR, tokens));
+    }
+
+    private static Map<String, Field> loadFields(Class<?> type) {
+      final var fields = new HashMap<String, Field>();
+      for (Field field : type.getFields()) {
+        if (java.lang.reflect.Modifier.isStatic(field.getModifiers())) {
+          continue;
+        }
+        field.setAccessible(true);
+        fields.put(toEnvKey(field.getName()), field);
+      }
+      return fields;
+    }
+
+    private static String toEnvKey(String name) {
+      final var builder = new StringBuilder();
+      for (int i = 0; i < name.length(); i++) {
+        final var ch = name.charAt(i);
+        if (Character.isUpperCase(ch)) {
+          builder.append('_');
+        }
+        builder.append(Character.toUpperCase(ch));
+      }
+      return builder.toString();
+    }
+
+    private static void consume(Deque<String> tokens, int items) {
+      for (int i = 0; i < items; i++) {
+        tokens.removeFirst();
+      }
+    }
+
+    private static Class<?> resolveListElementType(Field field) {
+      final var type = field.getGenericType();
+      if (type instanceof ParameterizedType parameterizedType) {
+        final var actualType = parameterizedType.getActualTypeArguments()[0];
+        return extractClass(actualType);
+      }
+      throw new IllegalArgumentException("Unable to resolve list element type for field " + field.getName());
+    }
+
+    private static Class<?> extractClass(Type type) {
+      if (type instanceof Class<?> clazz) {
+        return clazz;
+      }
+      if (type instanceof ParameterizedType parameterizedType) {
+        return extractClass(parameterizedType.getRawType());
+      }
+      throw new IllegalArgumentException("Unsupported type: " + type);
+    }
+
+    private record FieldMatch(Field field, int segmentsConsumed) {
+    }
+  }
 }
diff --git a/src/test/java/com/mageddo/dnsproxyserver/config/provider/dataformatv3/converter/EnvConverterTest.java b/src/test/java/com/mageddo/dnsproxyserver/config/provider/dataformatv3/converter/EnvConverterTest.java
new file mode 100644
index 000000000..13f39331e
--- /dev/null
+++ b/src/test/java/com/mageddo/dnsproxyserver/config/provider/dataformatv3/converter/EnvConverterTest.java
@@ -0,0 +1,61 @@
+package com.mageddo.dnsproxyserver.config.provider.dataformatv3.converter;
+
+import com.mageddo.dnsproxyserver.config.provider.dataformatv3.ConfigV3;
+import com.mageddo.dnsproxyserver.config.provider.dataformatv3.templates.ConfigV3Templates;
+import org.junit.jupiter.api.Test;
+
+import java.util.Map;
+
+import static java.util.Map.entry;
+import static org.junit.jupiter.api.Assertions.assertEquals;
+import static org.junit.jupiter.api.Assertions.assertThrows;
+
+class EnvConverterTest {
+
+  @Test
+  void shouldParseEnvironmentVariablesIntoConfigV3() {
+    var expected = new ConfigV3Templates().build();
+
+    var converter = new EnvConverter(Map.ofEntries(
+      entry("DPS_VERSION", "3"),
+      entry("DPS_SERVER_DNS_PORT", "53"),
+      entry("DPS_SERVER_DNS_NO_ENTRIES_RESPONSE_CODE", "3"),
+      entry("DPS_SERVER_WEB_PORT", "5380"),
+      entry("DPS_SERVER_PROTOCOL", "UDP_TCP"),
+      entry("DPS_SOLVER_REMOTE_ACTIVE", "true"),
+      entry("DPS_SOLVER_REMOTE_DNS_SERVERS_0", "8.8.8.8"),
+      entry("DPS_SOLVER_REMOTE_DNS_SERVERS_1", "4.4.4.4:53"),
+      entry("DPS_SOLVER_REMOTE_CIRCUIT_BREAKER_NAME", "STATIC_THRESHOLD"),
+      entry("DPS_SOLVER_DOCKER_REGISTER_CONTAINER_NAMES", "false"),
+      entry("DPS_SOLVER_DOCKER_DOMAIN", "docker"),
+      entry("DPS_SOLVER_DOCKER_HOST_MACHINE_FALLBACK", "true"),
+      entry("DPS_SOLVER_DOCKER_DPS_NETWORK_NAME", "dps"),
+      entry("DPS_SOLVER_DOCKER_DPS_NETWORK_AUTO_CREATE", "false"),
+      entry("DPS_SOLVER_DOCKER_DPS_NETWORK_AUTO_CONNECT", "false"),
+      entry("DPS_SOLVER_SYSTEM_HOST_MACHINE_HOSTNAME", "host.docker"),
+      entry("DPS_SOLVER_LOCAL_ACTIVE_ENV", ""),
+      entry("DPS_SOLVER_LOCAL_ENVS_0_NAME", ""),
+      entry("DPS_SOLVER_LOCAL_ENVS_0_HOSTNAMES_0_TYPE", "A"),
+      entry("DPS_SOLVER_LOCAL_ENVS_0_HOSTNAMES_0_HOSTNAME", "github.com"),
+      entry("DPS_SOLVER_LOCAL_ENVS_0_HOSTNAMES_0_IP", "192.168.0.1"),
+      entry("DPS_SOLVER_LOCAL_ENVS_0_HOSTNAMES_0_TTL", "255"),
+      entry("DPS_SOLVER_STUB_DOMAIN_NAME", "stub"),
+      entry("DPS_DEFAULT_DNS_ACTIVE", "true"),
+      entry("DPS_DEFAULT_DNS_RESOLV_CONF_PATHS", "/host/etc/systemd/resolved.conf,/host/etc/resolv.conf,/etc/systemd/resolved.conf,/etc/resolv.conf"),
+      entry("DPS_DEFAULT_DNS_RESOLV_CONF_OVERRIDE_NAME_SERVERS", "true"),
+      entry("DPS_LOG_LEVEL", "DEBUG"),
+      entry("DPS_LOG_FILE", "console")
+    ));
+
+    ConfigV3 actual = converter.parse();
+
+    assertEquals(expected, actual);
+  }
+
+  @Test
+  void shouldFailWhenUnknownVariableIsProvided() {
+    var converter = new EnvConverter(Map.of("DPS_UNKNOWN", "value"));
+
+    assertThrows(IllegalArgumentException.class, converter::parse);
+  }
+}