diff --git a/docs/02-app/01-building-your-application/07-configuring/03-environment-variables.mdx b/docs/02-app/01-building-your-application/07-configuring/03-environment-variables.mdx
index 813aa2946ed0c..7015c00dc6c98 100644
--- a/docs/02-app/01-building-your-application/07-configuring/03-environment-variables.mdx
+++ b/docs/02-app/01-building-your-application/07-configuring/03-environment-variables.mdx
@@ -48,7 +48,24 @@ export async function getStaticProps() {
 
 <AppOnly>
 
-This loads `process.env.DB_HOST`, `process.env.DB_USER`, and `process.env.DB_PASS` into the Node.js environment automatically allowing you to use them in [Route Handlers](/docs/app/building-your-application/routing/route-handlers).
+> **Note**: Next.js also supports multiline variables inside of your `.env*` files:
+>
+> ```bash
+> # .env.local
+>
+> # you can write with line breaks
+> PRIVATE_KEY="-----BEGIN RSA PRIVATE KEY-----
+> ...
+> Kh9NV...
+> ...
+> -----END DSA PRIVATE KEY-----"
+>
+> # or with `\n` inside double quotes
+> PRIVATE_KEY="-----BEGIN RSA PRIVATE KEY-----\nKh9NV...\n-----END DSA PRIVATE KEY-----\n"
+> ```
+
+> **Note**: If you are using a `/src` folder, please note that Next.js will load the .env files **only** from the parent folder and **not** from the `/src` folder.
+> This loads `process.env.DB_HOST`, `process.env.DB_USER`, and `process.env.DB_PASS` into the Node.js environment automatically allowing you to use them in [Route Handlers](/docs/app/building-your-application/routing/route-handlers).
 
 For example:
 
@@ -180,3 +197,9 @@ For example, if `NODE_ENV` is `development` and you define a variable in both `.
 
 - If you are using a [`/src` directory](/docs/app/building-your-application/configuring/src-directory), `.env.*` files should remain in the root of your project.
 - If the environment variable `NODE_ENV` is unassigned, Next.js automatically assigns `development` when running the `next dev` command, or `production` for all other commands.
+
+## Version History
+
+| Version  | Changes                                       |
+| -------- | --------------------------------------------- |
+| `v9.4.0` | Support `.env` and `NEXT_PUBLIC_` introduced. |
diff --git a/packages/next-env/package.json b/packages/next-env/package.json
index 0b04352dd5b9c..ad26bc207935b 100644
--- a/packages/next-env/package.json
+++ b/packages/next-env/package.json
@@ -30,7 +30,7 @@
   },
   "devDependencies": {
     "@vercel/ncc": "0.34.0",
-    "dotenv": "10.0.0",
-    "dotenv-expand": "8.0.1"
+    "dotenv": "16.3.1",
+    "dotenv-expand": "10.0.0"
   }
 }
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 49c3eb6c245f8..d556b7b487bee 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -1470,11 +1470,11 @@ importers:
         specifier: 0.34.0
         version: 0.34.0
       dotenv:
+        specifier: 16.3.1
+        version: 16.3.1
+      dotenv-expand:
         specifier: 10.0.0
         version: 10.0.0
-      dotenv-expand:
-        specifier: 8.0.1
-        version: 8.0.1
 
   packages/next-mdx:
     dependencies:
@@ -10792,14 +10792,20 @@ packages:
       is-obj: 2.0.0
     dev: true
 
-  /dotenv-expand@8.0.1:
-    resolution: {integrity: sha512-j/Ih7bIERDR5PzI89Zu8ayd3tXZ6E3dbY0ljQ9Db0K87qBO8zdLsi2dIvDHMWtjC3Yxb8XixOTHAtia0fDHRpg==}
+  /dotenv-expand@10.0.0:
+    resolution: {integrity: sha512-GopVGCpVS1UKH75VKHGuQFqS1Gusej0z4FyQkPdwjil2gNIv+LNsqBlboOzpJFZKVT95GkCyWJbBSdFEFUWI2A==}
     engines: {node: '>=12'}
     dev: true
 
   /dotenv@10.0.0:
     resolution: {integrity: sha512-rlBi9d8jpv9Sf1klPjNfFAuWDjKLwTIJJ/VxtoTwIR6hnZxcEOQCZg2oIL3MWBYw5GpUDKOEnND7LXTbIpQ03Q==}
     engines: {node: '>=10'}
+    dev: false
+
+  /dotenv@16.3.1:
+    resolution: {integrity: sha512-IPzF4w4/Rd94bA9imS68tZBaYyBWSCE47V1RGuMrB94iyTOIEwRmVL2x/4An+6mETpLrKJ5hQkB8W4kFAadeIQ==}
+    engines: {node: '>=12'}
+    dev: true
 
   /downsample-lttb@0.0.1:
     resolution: {integrity: sha512-Olebo5gyh44OAXTd2BKdcbN5VaZOIKFzoeo9JUFwxDlGt6Sd8fUo6SKaLcafy8aP2UrsKmWDpsscsFEghMjeZA==}