diff --git a/backend/e2e-test/routes/v1/project-env.spec.ts b/backend/e2e-test/routes/v1/project-env.spec.ts
index ec06d64748..0726f3a507 100644
--- a/backend/e2e-test/routes/v1/project-env.spec.ts
+++ b/backend/e2e-test/routes/v1/project-env.spec.ts
@@ -123,7 +123,7 @@ describe("Project Environment Router", async () => {
         id: deletedProjectEnvironment.id,
         name: mockProjectEnv.name,
         slug: mockProjectEnv.slug,
-        position: 4,
+        position: 5,
         createdAt: expect.any(String),
         updatedAt: expect.any(String)
       })
diff --git a/backend/src/lib/api-docs/constants.ts b/backend/src/lib/api-docs/constants.ts
index 470bc4dee6..0d519ab8cf 100644
--- a/backend/src/lib/api-docs/constants.ts
+++ b/backend/src/lib/api-docs/constants.ts
@@ -533,7 +533,8 @@ export const ENVIRONMENTS = {
   CREATE: {
     workspaceId: "The ID of the project to create the environment in.",
     name: "The name of the environment to create.",
-    slug: "The slug of the environment to create."
+    slug: "The slug of the environment to create.",
+    position: "The position of the environment. The lowest number will be displayed as the first environment."
   },
   UPDATE: {
     workspaceId: "The ID of the project to update the environment in.",
diff --git a/backend/src/server/routes/v1/project-env-router.ts b/backend/src/server/routes/v1/project-env-router.ts
index 1b0e074c28..c5ded83e46 100644
--- a/backend/src/server/routes/v1/project-env-router.ts
+++ b/backend/src/server/routes/v1/project-env-router.ts
@@ -123,6 +123,7 @@ export const registerProjectEnvRouter = async (server: FastifyZodProvider) => {
       }),
       body: z.object({
         name: z.string().trim().describe(ENVIRONMENTS.CREATE.name),
+        position: z.number().min(1).optional().describe(ENVIRONMENTS.CREATE.position),
         slug: z
           .string()
           .trim()
diff --git a/backend/src/services/project-env/project-env-dal.ts b/backend/src/services/project-env/project-env-dal.ts
index 8d42aab868..15e37bfdc9 100644
--- a/backend/src/services/project-env/project-env-dal.ts
+++ b/backend/src/services/project-env/project-env-dal.ts
@@ -65,10 +65,16 @@ export const projectEnvDALFactory = (db: TDbClient) => {
     }
   };
 
+  const shiftPositions = async (projectId: string, pos: number, tx?: Knex) => {
+    // Shift all positions >= the new position up by 1
+    await (tx || db)(TableName.Environment).where({ projectId }).where("position", ">=", pos).increment("position", 1);
+  };
+
   return {
     ...projectEnvOrm,
     findBySlugs,
     findLastEnvPosition,
-    updateAllPosition
+    updateAllPosition,
+    shiftPositions
   };
 };
diff --git a/backend/src/services/project-env/project-env-service.ts b/backend/src/services/project-env/project-env-service.ts
index ea826b3a63..67bdd867a4 100644
--- a/backend/src/services/project-env/project-env-service.ts
+++ b/backend/src/services/project-env/project-env-service.ts
@@ -37,6 +37,7 @@ export const projectEnvServiceFactory = ({
     actor,
     actorOrgId,
     actorAuthMethod,
+    position,
     name,
     slug
   }: TCreateEnvDTO) => {
@@ -83,9 +84,25 @@ export const projectEnvServiceFactory = ({
       }
 
       const env = await projectEnvDAL.transaction(async (tx) => {
+        if (position !== undefined) {
+          // Check if there's an environment at the specified position
+          const existingEnvWithPosition = await projectEnvDAL.findOne({ projectId, position }, tx);
+
+          // If there is, then shift positions
+          if (existingEnvWithPosition) {
+            await projectEnvDAL.shiftPositions(projectId, position, tx);
+          }
+
+          const doc = await projectEnvDAL.create({ slug, name, projectId, position }, tx);
+          await folderDAL.create({ name: "root", parentId: null, envId: doc.id, version: 1 }, tx);
+
+          return doc;
+        }
+        // If no position is specified, add to the end
         const lastPos = await projectEnvDAL.findLastEnvPosition(projectId, tx);
         const doc = await projectEnvDAL.create({ slug, name, projectId, position: lastPos + 1 }, tx);
         await folderDAL.create({ name: "root", parentId: null, envId: doc.id, version: 1 }, tx);
+
         return doc;
       });
 
@@ -150,7 +167,11 @@ export const projectEnvServiceFactory = ({
 
       const env = await projectEnvDAL.transaction(async (tx) => {
         if (position) {
-          await projectEnvDAL.updateAllPosition(projectId, oldEnv.position, position, tx);
+          const existingEnvWithPosition = await projectEnvDAL.findOne({ projectId, position }, tx);
+
+          if (existingEnvWithPosition && existingEnvWithPosition.id !== oldEnv.id) {
+            await projectEnvDAL.updateAllPosition(projectId, oldEnv.position, position, tx);
+          }
         }
         return projectEnvDAL.updateById(oldEnv.id, { name, slug, position }, tx);
       });
@@ -199,7 +220,6 @@ export const projectEnvServiceFactory = ({
             name: "DeleteEnvironment"
           });
 
-        await projectEnvDAL.updateAllPosition(projectId, doc.position, -1, tx);
         return doc;
       });
 
diff --git a/backend/src/services/project-env/project-env-types.ts b/backend/src/services/project-env/project-env-types.ts
index 229e8b195a..a87c76d4db 100644
--- a/backend/src/services/project-env/project-env-types.ts
+++ b/backend/src/services/project-env/project-env-types.ts
@@ -3,6 +3,7 @@ import { TProjectPermission } from "@app/lib/types";
 export type TCreateEnvDTO = {
   name: string;
   slug: string;
+  position?: number;
 } & TProjectPermission;
 
 export type TUpdateEnvDTO = {