diff --git a/crates/language_model/src/provider/anthropic.rs b/crates/language_model/src/provider/anthropic.rs
index e2ed27fe67..479a4d97de 100644
--- a/crates/language_model/src/provider/anthropic.rs
+++ b/crates/language_model/src/provider/anthropic.rs
@@ -19,7 +19,7 @@ use settings::{Settings, SettingsStore};
 use std::{sync::Arc, time::Duration};
 use strum::IntoEnumIterator;
 use theme::ThemeSettings;
-use ui::{prelude::*, Icon, IconName};
+use ui::{prelude::*, Icon, IconName, Tooltip};
 use util::ResultExt;
 
 const PROVIDER_ID: &str = "anthropic";
@@ -54,8 +54,11 @@ pub struct AnthropicLanguageModelProvider {
     state: gpui::Model<State>,
 }
 
+const ANTHROPIC_API_KEY_VAR: &'static str = "ANTHROPIC_API_KEY";
+
 pub struct State {
     api_key: Option<String>,
+    api_key_from_env: bool,
     _subscription: Subscription,
 }
 
@@ -67,6 +70,7 @@ impl State {
             delete_credentials.await.ok();
             this.update(&mut cx, |this, cx| {
                 this.api_key = None;
+                this.api_key_from_env = false;
                 cx.notify();
             })
         })
@@ -105,18 +109,20 @@ impl State {
                 .clone();
 
             cx.spawn(|this, mut cx| async move {
-                let api_key = if let Ok(api_key) = std::env::var("ANTHROPIC_API_KEY") {
-                    api_key
+                let (api_key, from_env) = if let Ok(api_key) = std::env::var(ANTHROPIC_API_KEY_VAR)
+                {
+                    (api_key, true)
                 } else {
                     let (_, api_key) = cx
                         .update(|cx| cx.read_credentials(&api_url))?
                         .await?
                         .ok_or_else(|| anyhow!("credentials not found"))?;
-                    String::from_utf8(api_key)?
+                    (String::from_utf8(api_key)?, false)
                 };
 
                 this.update(&mut cx, |this, cx| {
                     this.api_key = Some(api_key);
+                    this.api_key_from_env = from_env;
                     cx.notify();
                 })
             })
@@ -128,6 +134,7 @@ impl AnthropicLanguageModelProvider {
     pub fn new(http_client: Arc<dyn HttpClient>, cx: &mut AppContext) -> Self {
         let state = cx.new_model(|cx| State {
             api_key: None,
+            api_key_from_env: false,
             _subscription: cx.observe_global::<SettingsStore>(|_, cx| {
                 cx.notify();
             }),
@@ -537,6 +544,8 @@ impl Render for ConfigurationView {
             "Paste your Anthropic API key below and hit enter to use the assistant:",
         ];
 
+        let env_var_set = self.state.read(cx).api_key_from_env;
+
         if self.load_credentials_task.is_some() {
             div().child(Label::new("Loading credentials...")).into_any()
         } else if self.should_render_editor(cx) {
@@ -558,7 +567,7 @@ impl Render for ConfigurationView {
                 )
                 .child(
                     Label::new(
-                        "You can also assign the ANTHROPIC_API_KEY environment variable and restart Zed.",
+                        "You can also assign the {ANTHROPIC_API_KEY_VAR} environment variable and restart Zed.",
                     )
                     .size(LabelSize::Small),
                 )
@@ -571,13 +580,21 @@ impl Render for ConfigurationView {
                     h_flex()
                         .gap_1()
                         .child(Icon::new(IconName::Check).color(Color::Success))
-                        .child(Label::new("API key configured.")),
+                        .child(Label::new(if env_var_set {
+                            format!("API key set in {ANTHROPIC_API_KEY_VAR} environment variable.")
+                        } else {
+                            "API key configured.".to_string()
+                        })),
                 )
                 .child(
                     Button::new("reset-key", "Reset key")
                         .icon(Some(IconName::Trash))
                         .icon_size(IconSize::Small)
                         .icon_position(IconPosition::Start)
+                        .disabled(env_var_set)
+                        .when(env_var_set, |this| {
+                            this.tooltip(|cx| Tooltip::text(format!("To reset your API key, unset the {ANTHROPIC_API_KEY_VAR} environment variable."), cx))
+                        })
                         .on_click(cx.listener(|this, _, cx| this.reset_api_key(cx))),
                 )
                 .into_any()
diff --git a/crates/language_model/src/provider/google.rs b/crates/language_model/src/provider/google.rs
index 96475f752f..2eaf92cd66 100644
--- a/crates/language_model/src/provider/google.rs
+++ b/crates/language_model/src/provider/google.rs
@@ -14,7 +14,7 @@ use settings::{Settings, SettingsStore};
 use std::{future, sync::Arc, time::Duration};
 use strum::IntoEnumIterator;
 use theme::ThemeSettings;
-use ui::{prelude::*, Icon, IconName};
+use ui::{prelude::*, Icon, IconName, Tooltip};
 use util::ResultExt;
 
 use crate::{
@@ -46,9 +46,12 @@ pub struct GoogleLanguageModelProvider {
 
 pub struct State {
     api_key: Option<String>,
+    api_key_from_env: bool,
     _subscription: Subscription,
 }
 
+const GOOGLE_AI_API_KEY_VAR: &'static str = "GOOGLE_AI_API_KEY";
+
 impl State {
     fn is_authenticated(&self) -> bool {
         self.api_key.is_some()
@@ -61,6 +64,7 @@ impl State {
             delete_credentials.await.ok();
             this.update(&mut cx, |this, cx| {
                 this.api_key = None;
+                this.api_key_from_env = false;
                 cx.notify();
             })
         })
@@ -90,18 +94,20 @@ impl State {
                 .clone();
 
             cx.spawn(|this, mut cx| async move {
-                let api_key = if let Ok(api_key) = std::env::var("GOOGLE_AI_API_KEY") {
-                    api_key
+                let (api_key, from_env) = if let Ok(api_key) = std::env::var(GOOGLE_AI_API_KEY_VAR)
+                {
+                    (api_key, true)
                 } else {
                     let (_, api_key) = cx
                         .update(|cx| cx.read_credentials(&api_url))?
                         .await?
                         .ok_or_else(|| anyhow!("credentials not found"))?;
-                    String::from_utf8(api_key)?
+                    (String::from_utf8(api_key)?, false)
                 };
 
                 this.update(&mut cx, |this, cx| {
                     this.api_key = Some(api_key);
+                    this.api_key_from_env = from_env;
                     cx.notify();
                 })
             })
@@ -113,6 +119,7 @@ impl GoogleLanguageModelProvider {
     pub fn new(http_client: Arc<dyn HttpClient>, cx: &mut AppContext) -> Self {
         let state = cx.new_model(|cx| State {
             api_key: None,
+            api_key_from_env: false,
             _subscription: cx.observe_global::<SettingsStore>(|_, cx| {
                 cx.notify();
             }),
@@ -422,6 +429,8 @@ impl Render for ConfigurationView {
             "Paste your Google AI API key below and hit enter to use the assistant:",
         ];
 
+        let env_var_set = self.state.read(cx).api_key_from_env;
+
         if self.load_credentials_task.is_some() {
             div().child(Label::new("Loading credentials...")).into_any()
         } else if self.should_render_editor(cx) {
@@ -443,7 +452,7 @@ impl Render for ConfigurationView {
                 )
                 .child(
                     Label::new(
-                        "You can also assign the GOOGLE_AI_API_KEY environment variable and restart Zed.",
+                        format!("You can also assign the {GOOGLE_AI_API_KEY_VAR} environment variable and restart Zed."),
                     )
                     .size(LabelSize::Small),
                 )
@@ -456,13 +465,21 @@ impl Render for ConfigurationView {
                     h_flex()
                         .gap_1()
                         .child(Icon::new(IconName::Check).color(Color::Success))
-                        .child(Label::new("API key configured.")),
+                        .child(Label::new(if env_var_set {
+                            format!("API key set in {GOOGLE_AI_API_KEY_VAR} environment variable.")
+                        } else {
+                            "API key configured.".to_string()
+                        })),
                 )
                 .child(
                     Button::new("reset-key", "Reset key")
                         .icon(Some(IconName::Trash))
                         .icon_size(IconSize::Small)
                         .icon_position(IconPosition::Start)
+                        .disabled(env_var_set)
+                        .when(env_var_set, |this| {
+                            this.tooltip(|cx| Tooltip::text(format!("To reset your API key, unset the {GOOGLE_AI_API_KEY_VAR} environment variable."), cx))
+                        })
                         .on_click(cx.listener(|this, _, cx| this.reset_api_key(cx))),
                 )
                 .into_any()
diff --git a/crates/language_model/src/provider/open_ai.rs b/crates/language_model/src/provider/open_ai.rs
index 0d3ee56d74..65941f5c55 100644
--- a/crates/language_model/src/provider/open_ai.rs
+++ b/crates/language_model/src/provider/open_ai.rs
@@ -16,7 +16,7 @@ use settings::{Settings, SettingsStore};
 use std::{sync::Arc, time::Duration};
 use strum::IntoEnumIterator;
 use theme::ThemeSettings;
-use ui::{prelude::*, Icon, IconName};
+use ui::{prelude::*, Icon, IconName, Tooltip};
 use util::ResultExt;
 
 use crate::{
@@ -49,9 +49,12 @@ pub struct OpenAiLanguageModelProvider {
 
 pub struct State {
     api_key: Option<String>,
+    api_key_from_env: bool,
     _subscription: Subscription,
 }
 
+const OPENAI_API_KEY_VAR: &'static str = "OPENAI_API_KEY";
+
 impl State {
     fn is_authenticated(&self) -> bool {
         self.api_key.is_some()
@@ -64,6 +67,7 @@ impl State {
             delete_credentials.await.log_err();
             this.update(&mut cx, |this, cx| {
                 this.api_key = None;
+                this.api_key_from_env = false;
                 cx.notify();
             })
         })
@@ -92,17 +96,18 @@ impl State {
                 .api_url
                 .clone();
             cx.spawn(|this, mut cx| async move {
-                let api_key = if let Ok(api_key) = std::env::var("OPENAI_API_KEY") {
-                    api_key
+                let (api_key, from_env) = if let Ok(api_key) = std::env::var(OPENAI_API_KEY_VAR) {
+                    (api_key, true)
                 } else {
                     let (_, api_key) = cx
                         .update(|cx| cx.read_credentials(&api_url))?
                         .await?
                         .ok_or_else(|| anyhow!("credentials not found"))?;
-                    String::from_utf8(api_key)?
+                    (String::from_utf8(api_key)?, false)
                 };
                 this.update(&mut cx, |this, cx| {
                     this.api_key = Some(api_key);
+                    this.api_key_from_env = from_env;
                     cx.notify();
                 })
             })
@@ -114,6 +119,7 @@ impl OpenAiLanguageModelProvider {
     pub fn new(http_client: Arc<dyn HttpClient>, cx: &mut AppContext) -> Self {
         let state = cx.new_model(|cx| State {
             api_key: None,
+            api_key_from_env: false,
             _subscription: cx.observe_global::<SettingsStore>(|_this: &mut State, cx| {
                 cx.notify();
             }),
@@ -476,6 +482,8 @@ impl Render for ConfigurationView {
             "Paste your OpenAI API key below and hit enter to use the assistant:",
         ];
 
+        let env_var_set = self.state.read(cx).api_key_from_env;
+
         if self.load_credentials_task.is_some() {
             div().child(Label::new("Loading credentials...")).into_any()
         } else if self.should_render_editor(cx) {
@@ -497,7 +505,7 @@ impl Render for ConfigurationView {
                 )
                 .child(
                     Label::new(
-                        "You can also assign the OPENAI_API_KEY environment variable and restart Zed.",
+                        format!("You can also assign the {OPENAI_API_KEY_VAR} environment variable and restart Zed."),
                     )
                     .size(LabelSize::Small),
                 )
@@ -510,13 +518,21 @@ impl Render for ConfigurationView {
                     h_flex()
                         .gap_1()
                         .child(Icon::new(IconName::Check).color(Color::Success))
-                        .child(Label::new("API key configured.")),
+                        .child(Label::new(if env_var_set {
+                            format!("API key set in {OPENAI_API_KEY_VAR} environment variable.")
+                        } else {
+                            "API key configured.".to_string()
+                        })),
                 )
                 .child(
                     Button::new("reset-key", "Reset key")
                         .icon(Some(IconName::Trash))
                         .icon_size(IconSize::Small)
                         .icon_position(IconPosition::Start)
+                        .disabled(env_var_set)
+                        .when(env_var_set, |this| {
+                            this.tooltip(|cx| Tooltip::text(format!("To reset your API key, unset the {OPENAI_API_KEY_VAR} environment variable."), cx))
+                        })
                         .on_click(cx.listener(|this, _, cx| this.reset_api_key(cx))),
                 )
                 .into_any()