diff --git a/changelog.d/16738.doc b/changelog.d/16738.doc
new file mode 100644
index 000000000000..311acf520a62
--- /dev/null
+++ b/changelog.d/16738.doc
@@ -0,0 +1 @@
+Clarify that in the Sentry configuration, adding the sentry.environment setting alongside the existing sentry.dsn setting enables log maintenance based on different environments, enhancing organizational control and analysis.
\ No newline at end of file
diff --git a/changelog.d/16738.feature b/changelog.d/16738.feature
new file mode 100644
index 000000000000..6b4ed3e80892
--- /dev/null
+++ b/changelog.d/16738.feature
@@ -0,0 +1 @@
+Enhanced Sentry configuration with a startup-loaded environment for improved system monitoring. Contributed by @zeeshanrafiqrana.
\ No newline at end of file
diff --git a/docs/usage/configuration/config_documentation.md b/docs/usage/configuration/config_documentation.md
index dc92cc2992a3..ac4f8e89f75e 100644
--- a/docs/usage/configuration/config_documentation.md
+++ b/docs/usage/configuration/config_documentation.md
@@ -2772,7 +2772,7 @@ enable_metrics: true
 ### `sentry`
 
 Use this option to enable sentry integration. Provide the DSN assigned to you by sentry
-with the `dsn` setting.
+with the `dsn` setting and specify the environment in the `environment` field. This allows for log maintenance based on different environments, ensuring better organization and analysis..
 
 NOTE: While attempts are made to ensure that the logs don't contain
 any sensitive information, this cannot be guaranteed. By enabling
@@ -2783,6 +2783,7 @@ through insecure notification channels if so configured.
 Example configuration:
 ```yaml
 sentry:
+    environment: "production"
     dsn: "..."
 ```
 ---
diff --git a/synapse/app/_base.py b/synapse/app/_base.py
index 9a52dab67e65..aed98f03af30 100644
--- a/synapse/app/_base.py
+++ b/synapse/app/_base.py
@@ -662,14 +662,10 @@ def setup_sentry(hs: "HomeServer") -> None:
 
     import sentry_sdk
 
-    # Set a default environment if it's not configured
-    default_environment = None
-    environment = hs.config.metrics.sentry_environment or default_environment
-
     sentry_sdk.init(
         dsn=hs.config.metrics.sentry_dsn,
         release=SYNAPSE_VERSION,
-        environment=environment,
+        environment=hs.config.metrics.sentry_environment,
     )
 
     # We set some default tags that give some context to this instance