diff --git a/README.md b/README.md
index 108b120..433407f 100644
--- a/README.md
+++ b/README.md
@@ -8,7 +8,8 @@ pip install -r requirements.txt
 ```
 
 ## Environment Variables
-- `OPENAI_API_KEY` – API key for OpenAI or Ollama. If using local Ollama set `OPENAI_API_BASE_URL=http://localhost:11434/v1`.
+- `OLLAMA_MODEL` – (optional) model name, defaults to `llama3`.
+- `OLLAMA_BASE_URL` – (optional) Ollama API endpoint, defaults to `http://localhost:11434/v1`.
 
 ## Usage
 ### Load documents into vector store
@@ -30,4 +31,4 @@ python agent.py
 
 ## Development
 - Tests are not included but can be added in `tests/`.
-- Lint with `ruff .` and format with `black .`.
\ No newline at end of file
+- Lint with `ruff .` and format with `black .`.