diff --git a/arcade/arcade/worker/config/deployment.py b/arcade/arcade/worker/config/deployment.py
index 38cebc6f..34691b44 100644
--- a/arcade/arcade/worker/config/deployment.py
+++ b/arcade/arcade/worker/config/deployment.py
@@ -1,6 +1,7 @@
 import base64
 import io
 import os
+import re
 import secrets
 import tarfile
 from pathlib import Path
@@ -11,7 +12,7 @@ import toml
 from arcadepy import Arcade, NotFoundError
 from httpx import Client
 from packaging.requirements import Requirement
-from pydantic import BaseModel, field_validator, model_validator
+from pydantic import BaseModel, field_serializer, field_validator, model_validator
 
 
 # Base class for versioned packages
@@ -63,26 +64,47 @@ class Pypi(PackageRepository):
     trusted_host: str = "pypi.org"
 
 
+class Secret(BaseModel):
+    value: str
+    pattern: str | None = None
+
+
 class Config(BaseModel):
     id: str
     enabled: bool = True
     timeout: int = 30
     retries: int = 3
-    secret: str
+    secret: Secret | None = None
 
-    # Validate that the secret is a non-empty string and not 'dev'
-    @field_validator("secret")
+    # Validate and parse the secret if required
+    @field_validator("secret", mode="before")
     @classmethod
-    def valid_secret(cls, v: str) -> str:
-        if v.strip("") == "" or v == "dev":
+    def valid_secret(cls, v: str | Secret | None) -> Secret:
+        # If the secret is a string, attempt to parse it as an environment variable or return the secret
+        if isinstance(v, str):
+            secret = get_env_secret(v)
+        # If the secret has been manually set, return it
+        elif isinstance(v, Secret):
+            secret = v
+        else:
+            raise TypeError("Secret must be a string or a Secret object")
+        # Check that the secret is not the default dev secret or empty
+        if secret.value.strip() == "" or secret.value == "dev":
             raise ValueError("Secret must be a non-empty string and not 'dev'")
-        return v
+        return secret
+
+    @field_serializer("secret")
+    def serialize_secret(self, secret: Secret) -> str:
+        if secret.pattern:
+            return f"$env:{secret.pattern}"
+        else:
+            return secret.value
 
 
 # Cloud request for deploying a worker
 class Request(BaseModel):
     name: str
-    secret: str
+    secret: Secret
     enabled: bool
     timeout: int
     retries: int
@@ -90,6 +112,10 @@ class Request(BaseModel):
     custom_repositories: list[PackageRepository] | None = None
     local_packages: list[LocalPackage] | None = None
 
+    @field_serializer("secret")
+    def serialize_secret(self, secret: Secret) -> str:
+        return secret.value
+
     def execute(self, cloud_client: Client, engine_client: Arcade) -> Any:
         # Attempt to deploy worker to the cloud
         try:
@@ -113,7 +139,7 @@ class Request(BaseModel):
                 enabled=self.enabled,
                 http={
                     "uri": cloud_response.json()["data"]["worker_endpoint"],
-                    "secret": self.secret,
+                    "secret": self.secret.value,
                     "timeout": self.timeout,
                     "retry": self.retries,
                 },
@@ -125,7 +151,7 @@ class Request(BaseModel):
                 enabled=self.enabled,
                 http={
                     "uri": cloud_response.json()["data"]["worker_endpoint"],
-                    "secret": self.secret,
+                    "secret": self.secret.value,
                     "timeout": self.timeout,
                     "retry": self.retries,
                 },
@@ -148,6 +174,8 @@ class Worker(BaseModel):
         """Convert Deployment to a Request object."""
         self.validate_packages()
         self.compress_local_packages()
+        if self.config.secret is None:
+            raise ValueError("Secret is required")
         return Request(
             name=self.config.id,
             secret=self.config.secret,
@@ -274,7 +302,7 @@ def create_demo_deployment(toml_path: Path, toolkit_name: str) -> None:
                     enabled=True,
                     timeout=30,
                     retries=3,
-                    secret=secrets.token_hex(16),
+                    secret=Secret(value=secrets.token_hex(16), pattern=None),
                 ),
                 local_source=LocalPackages(packages=[f"./{toolkit_name}"]),
             )
@@ -292,3 +320,25 @@ def update_deployment_with_local_packages(toml_path: Path, toolkit_name: str) ->
     else:
         deployment.worker[0].local_source.packages.append(f"./{toolkit_name}")
     deployment.save()
+
+
+def get_env_secret(secret: str) -> Secret:
+    """Parse a secret from an environment variable."""
+    # Check if the secret contains the "${env:}" syntax
+    pattern = r"\${env:([^}]+)}"
+    matches = re.findall(pattern, secret)
+
+    # Only allow a single match
+    if matches and len(matches) == 1:
+        match = matches[0].strip()
+        # Attempt to lookup and create the secret
+        print(f"Looking up secret: {match}")
+        value = os.getenv(match)
+        if value:
+            return Secret(value=value, pattern=match)
+        else:
+            raise ValueError(f"Environment variable not found: {match}")
+    elif matches and len(matches) > 1:
+        raise ValueError(f"Multiple environment variables found in secret: {secret}")
+    # If no matches are found, return the secret as is
+    return Secret(value=secret, pattern=None)
diff --git a/arcade/tests/deployment/test_config.py b/arcade/tests/deployment/test_config.py
index 923626ff..531bfaac 100644
--- a/arcade/tests/deployment/test_config.py
+++ b/arcade/tests/deployment/test_config.py
@@ -2,6 +2,7 @@
 # ruff: noqa: S105
 # ruff: noqa: S106
 import json
+import os
 from pathlib import Path
 
 import pytest
@@ -13,6 +14,7 @@ from arcade.worker.config.deployment import (
     Package,
     PackageRepository,
     Pypi,
+    Secret,
     Worker,
 )
 
@@ -41,7 +43,7 @@ def test_deployment_parsing(test_dir):
     assert deployment.worker[0].config.enabled is True
     assert deployment.worker[0].config.timeout == 10
     assert deployment.worker[0].config.retries == 3
-    assert deployment.worker[0].config.secret == "test-secret"
+    assert deployment.worker[0].config.secret == Secret(value="test-secret", pattern=None)
 
     # Test pypi section
     assert deployment.worker[0].pypi_source.packages == [Package(name="arcade-x")]
@@ -123,7 +125,6 @@ def test_deployment_dict(test_dir):
     ]
 }""")
     got = deployment.worker[0].request().model_dump(mode="json")
-    print(got)
     # Remove encoding part that contains the content
     got["local_packages"][0].pop("content")
     expected["local_packages"][0].pop("content")
@@ -161,7 +162,7 @@ def test_unconfigured_local_package(test_dir):
 def test_duplicate_pypi_packages():
     worker = Worker(
         toml_path=Path(__file__),
-        config=Config(id="test", secret="test-secret"),
+        config=Config(id="test", secret=Secret(value="test-secret", pattern=None)),
         pypi_source=Pypi(packages=["arcade-slack", "arcade-slack"]),
     )
     with pytest.raises(ValueError):
@@ -171,7 +172,7 @@ def test_duplicate_pypi_packages():
 def test_duplicate_custom_repository_packages():
     worker = Worker(
         toml_path=Path(__file__),
-        config=Config(id="test", secret="test-secret"),
+        config=Config(id="test", secret=Secret(value="test-secret", pattern=None)),
         custom_source=[
             PackageRepository(
                 index="pypi",
@@ -188,7 +189,7 @@ def test_duplicate_custom_repository_packages():
 def test_duplicate_local_packages():
     worker = Worker(
         toml_path=Path(__file__),
-        config=Config(id="test", secret="test-secret"),
+        config=Config(id="test", secret=Secret(value="test-secret", pattern=None)),
         local_source=LocalPackages(packages=["./mock_toolkit", "./mock_toolkit"]),
     )
     with pytest.raises(ValueError):
@@ -198,7 +199,7 @@ def test_duplicate_local_packages():
 def test_duplicate_all_typed_packages():
     worker = Worker(
         toml_path=Path(__file__),
-        config=Config(id="test", secret="test-secret"),
+        config=Config(id="test", secret=Secret(value="test-secret", pattern=None)),
         pypi_source=Pypi(packages=["arcade-slack"]),
         custom_source=[
             PackageRepository(
@@ -217,11 +218,19 @@ def test_duplicate_all_typed_packages():
 def test_duplicate_worker_names():
     worker = Worker(
         toml_path=Path(__file__),
-        config=Config(id="test", secret="test-secret"),
+        config=Config(id="test", secret=Secret(value="test-secret", pattern=None)),
     )
     worker2 = Worker(
         toml_path=Path(__file__),
-        config=Config(id="test", secret="test-secret"),
+        config=Config(id="test", secret=Secret(value="test-secret", pattern=None)),
     )
     with pytest.raises(ValueError):
         Deployment(workers=[worker, worker2])
+
+
+def test_secret_parsing(test_dir):
+    os.environ["TEST_WORKER_SECRET"] = "test-secret"
+    deployment = Deployment.from_toml(test_dir / "test_files" / "env.secret.worker.toml")
+    assert deployment.worker[0].config.secret == Secret(
+        value="test-secret", pattern="TEST_WORKER_SECRET"
+    )
diff --git a/arcade/tests/deployment/test_files/env.secret.worker.toml b/arcade/tests/deployment/test_files/env.secret.worker.toml
new file mode 100644
index 00000000..309f61af
--- /dev/null
+++ b/arcade/tests/deployment/test_files/env.secret.worker.toml
@@ -0,0 +1,5 @@
+
+[[worker]]
+[worker.config]
+id = "test"
+secret = "${env: TEST_WORKER_SECRET}"