diff --git a/src-web/commands/createEnvironment.ts b/src-web/commands/createEnvironment.tsx
similarity index 56%
rename from src-web/commands/createEnvironment.ts
rename to src-web/commands/createEnvironment.tsx
index 98867dac..9b2a78aa 100644
--- a/src-web/commands/createEnvironment.ts
+++ b/src-web/commands/createEnvironment.tsx
@@ -1,8 +1,9 @@
-import { createWorkspaceModel, type Environment } from '@yaakapp-internal/models';
+import { type Environment } from '@yaakapp-internal/models';
+import { CreateEnvironmentDialog } from '../components/CreateEnvironmentDialog';
 import { activeWorkspaceIdAtom } from '../hooks/useActiveWorkspace';
 import { createFastMutation } from '../hooks/useFastMutation';
+import { showDialog } from '../lib/dialog';
 import { jotaiStore } from '../lib/jotai';
-import { showPrompt } from '../lib/prompt';
 import { setWorkspaceSearchParams } from '../lib/setWorkspaceSearchParams';
 
 export const createSubEnvironmentAndActivate = createFastMutation<
@@ -21,24 +22,23 @@ export const createSubEnvironmentAndActivate = createFastMutation<
       throw new Error('Cannot create environment when no active workspace');
     }
 
-    const name = await showPrompt({
-      id: 'new-environment',
-      title: 'New Environment',
-      description: 'Create multiple environments with different sets of variables',
-      label: 'Name',
-      placeholder: 'My Environment',
-      defaultValue: 'My Environment',
-      confirmText: 'Create',
-    });
-    if (name == null) return null;
-
-    return createWorkspaceModel({
-      model: 'environment',
-      name,
-      variables: [],
-      workspaceId,
-      parentId: baseEnvironment.id,
-      parentModel: 'environment',
+    return new Promise<string | null>((resolve) => {
+      showDialog({
+        id: 'new-environment',
+        title: 'New Environment',
+        description: 'Create multiple environments with different sets of variables',
+        size: 'sm',
+        onClose: () => resolve(null),
+        render: ({ hide }) => (
+          <CreateEnvironmentDialog
+            workspaceId={workspaceId}
+            hide={hide}
+            onCreate={(id: string) => {
+              resolve(id);
+            }}
+          />
+        ),
+      });
     });
   },
   onSuccess: async (environmentId) => {
diff --git a/src-web/components/ColorIndicator.tsx b/src-web/components/ColorIndicator.tsx
new file mode 100644
index 00000000..e4bad672
--- /dev/null
+++ b/src-web/components/ColorIndicator.tsx
@@ -0,0 +1,25 @@
+import classNames from 'classnames';
+import type { CSSProperties } from 'react';
+
+interface Props {
+  color: string | null;
+  onClick?: () => void;
+}
+
+export function ColorIndicator({ color, onClick }: Props) {
+  const style: CSSProperties = { backgroundColor: color ?? undefined };
+  const className =
+    'inline-block w-[0.75em] h-[0.75em] rounded-full mr-1.5 border border-transparent';
+
+  if (onClick) {
+    return (
+      <button
+        onClick={onClick}
+        style={style}
+        className={classNames(className, 'hover:border-text')}
+      />
+    );
+  } else {
+    return <span style={style} className={className} />;
+  }
+}
diff --git a/src-web/components/CreateEnvironmentDialog.tsx b/src-web/components/CreateEnvironmentDialog.tsx
new file mode 100644
index 00000000..7a0534b3
--- /dev/null
+++ b/src-web/components/CreateEnvironmentDialog.tsx
@@ -0,0 +1,68 @@
+import { createWorkspaceModel } from '@yaakapp-internal/models';
+import { useState } from 'react';
+import { useToggle } from '../hooks/useToggle';
+import { ColorIndicator } from './ColorIndicator';
+import { Button } from './core/Button';
+import { Checkbox } from './core/Checkbox';
+import { ColorPickerWithThemeColors } from './core/ColorPicker';
+import { Label } from './core/Label';
+import { PlainInput } from './core/PlainInput';
+
+interface Props {
+  onCreate: (id: string) => void;
+  hide: () => void;
+  workspaceId: string;
+}
+
+export function CreateEnvironmentDialog({ workspaceId, hide, onCreate }: Props) {
+  const [name, setName] = useState<string>('');
+  const [color, setColor] = useState<string | null>(null);
+  const [sharable, toggleSharable] = useToggle(false);
+  return (
+    <form
+      className="pb-3 flex flex-col gap-3"
+      onSubmit={async (e) => {
+        e.preventDefault();
+        const id = await createWorkspaceModel({
+          model: 'environment',
+          name,
+          color,
+          variables: [],
+          public: sharable,
+          workspaceId,
+          parentModel: 'environment',
+        });
+        hide();
+        onCreate(id);
+      }}
+    >
+      <PlainInput
+        label="Name"
+        required
+        defaultValue={name}
+        onChange={setName}
+        placeholder="Production"
+      />
+      <Checkbox
+        checked={sharable}
+        title="Share this environment"
+        help="Sharable environments are included in data export and directory sync."
+        onChange={toggleSharable}
+      />
+      <div>
+        <Label
+          htmlFor="color"
+          className="mb-1.5"
+          help="Select a color to be displayed when this environment is active, to help identify it."
+        >
+          Color
+        </Label>
+        <ColorPickerWithThemeColors onChange={setColor} color={color} />
+      </div>
+      <Button type="submit" color="secondary" className="mt-3">
+        {color != null && <ColorIndicator color={color} />}
+        Create Environment
+      </Button>
+    </form>
+  );
+}
diff --git a/src-web/components/EnvironmentColorIndicator.tsx b/src-web/components/EnvironmentColorIndicator.tsx
index 768e02ce..dab22e86 100644
--- a/src-web/components/EnvironmentColorIndicator.tsx
+++ b/src-web/components/EnvironmentColorIndicator.tsx
@@ -1,6 +1,6 @@
 import type { Environment } from '@yaakapp-internal/models';
-import classNames from 'classnames';
 import { showColorPicker } from '../lib/showColorPicker';
+import { ColorIndicator } from './ColorIndicator';
 
 export function EnvironmentColorIndicator({
   environment,
@@ -11,19 +11,10 @@ export function EnvironmentColorIndicator({
 }) {
   if (environment?.color == null) return null;
 
-  const style = { backgroundColor: environment.color };
-  const className =
-    'inline-block w-[0.75em] h-[0.75em] rounded-full mr-1.5 border border-transparent';
-
-  if (clickToEdit) {
-    return (
-      <button
-        onClick={() => showColorPicker(environment)}
-        style={style}
-        className={classNames(className, 'hover:border-text')}
-      />
-    );
-  } else {
-    return <span style={style} className={className} />;
-  }
+  return (
+    <ColorIndicator
+      color={environment?.color ?? null}
+      onClick={clickToEdit ? () => showColorPicker(environment) : undefined}
+    />
+  );
 }
diff --git a/src-web/components/EnvironmentColorPicker.tsx b/src-web/components/EnvironmentColorPicker.tsx
index b3c158a3..56a66d5f 100644
--- a/src-web/components/EnvironmentColorPicker.tsx
+++ b/src-web/components/EnvironmentColorPicker.tsx
@@ -1,6 +1,8 @@
 import { useState } from 'react';
+import { ColorIndicator } from './ColorIndicator';
+import { Banner } from './core/Banner';
 import { Button } from './core/Button';
-import { ColorPicker } from './core/ColorPicker';
+import { ColorPickerWithThemeColors } from './core/ColorPicker';
 
 export function EnvironmentColorPicker({
   color: defaultColor,
@@ -12,21 +14,20 @@ export function EnvironmentColorPicker({
   const [color, setColor] = useState<string | null>(defaultColor);
   return (
     <form
-      className="flex flex-col items-stretch gap-3 pb-2 w-full"
+      className="flex flex-col items-stretch gap-5 pb-2 w-full"
       onSubmit={(e) => {
         e.preventDefault();
         onChange(color);
       }}
     >
-      <ColorPicker color={color} onChange={setColor} />
-      <div className="grid grid-cols-[1fr_1fr] gap-1.5">
-        <Button variant="border" color="secondary" onClick={() => onChange(null)}>
-          Clear
-        </Button>
-        <Button type="submit" color="primary">
-          Save
-        </Button>
-      </div>
+      <Banner color="secondary">
+        This color will be used to color the interface when this environment is active
+      </Banner>
+      <ColorPickerWithThemeColors color={color} onChange={setColor} />
+      <Button type="submit" color="secondary">
+        {color != null && <ColorIndicator color={color} />}
+        Save
+      </Button>
     </form>
   );
 }
diff --git a/src-web/components/EnvironmentEditDialog.tsx b/src-web/components/EnvironmentEditDialog.tsx
index e9a5379e..5362d53f 100644
--- a/src-web/components/EnvironmentEditDialog.tsx
+++ b/src-web/components/EnvironmentEditDialog.tsx
@@ -232,17 +232,14 @@ function EnvironmentDialogSidebarButton({
               await patchModel(environment, { name });
             },
           },
-          ...((duplicateEnvironment
-            ? [
-                {
-                  label: 'Duplicate',
-                  leftSlot: <Icon icon="copy" />,
-                  onSelect: () => {
-                    duplicateEnvironment?.(environment);
-                  },
-                },
-              ]
-            : []) as DropdownItem[]),
+          {
+            label: 'Duplicate',
+            leftSlot: <Icon icon="copy" />,
+            hidden: isBaseEnvironment(environment),
+            onSelect: () => {
+              duplicateEnvironment?.(environment);
+            },
+          },
           {
             label: environment.color ? 'Change Color' : 'Assign Color',
             leftSlot: <Icon icon="palette" />,
diff --git a/src-web/components/core/ColorPicker.tsx b/src-web/components/core/ColorPicker.tsx
index 441b4316..960640d3 100644
--- a/src-web/components/core/ColorPicker.tsx
+++ b/src-web/components/core/ColorPicker.tsx
@@ -1,16 +1,20 @@
+import classNames from 'classnames';
+import { useState } from 'react';
 import { HexColorPicker } from 'react-colorful';
 import { useRandomKey } from '../../hooks/useRandomKey';
+import { Icon } from './Icon';
 import { PlainInput } from './PlainInput';
 
 interface Props {
   onChange: (value: string | null) => void;
   color: string | null;
+  className?: string;
 }
 
-export function ColorPicker({ onChange, color }: Props) {
+export function ColorPicker({ onChange, color, className }: Props) {
   const [updateKey, regenerateKey] = useRandomKey();
   return (
-    <div>
+    <div className={className}>
       <HexColorPicker
         color={color ?? undefined}
         className="!w-full"
@@ -30,3 +34,84 @@ export function ColorPicker({ onChange, color }: Props) {
     </div>
   );
 }
+
+const colors = [
+  null,
+  'danger',
+  'warning',
+  'notice',
+  'success',
+  'primary',
+  'info',
+  'secondary',
+  'custom',
+] as const;
+
+export function ColorPickerWithThemeColors({ onChange, color, className }: Props) {
+  const [updateKey, regenerateKey] = useRandomKey();
+  const [selectedColor, setSelectedColor] = useState<string | null>(() => {
+    if (color == null) return null;
+    const c = color?.match(/var\(--([a-z]+)\)/)?.[1];
+    return c ?? 'custom';
+  });
+  return (
+    <div className={classNames(className, 'flex flex-col gap-3')}>
+      <div className="flex items-center gap-2.5">
+        {colors.map((color) => (
+          <button
+            type="button"
+            key={color}
+            onClick={() => {
+              setSelectedColor(color);
+              if (color == null) {
+                onChange(null);
+              } else if (color === 'custom') {
+                onChange('#ffffff');
+              } else {
+                onChange(`var(--${color})`);
+              }
+            }}
+            className={classNames(
+              'flex items-center justify-center',
+              'w-8 h-8 rounded-full transition-all',
+              selectedColor === color && 'scale-[1.15]',
+              selectedColor === color ? 'opacity-100' : 'opacity-60',
+              color === null && 'border border-text-subtle',
+              color === 'primary' && 'bg-primary',
+              color === 'secondary' && 'bg-secondary',
+              color === 'success' && 'bg-success',
+              color === 'notice' && 'bg-notice',
+              color === 'warning' && 'bg-warning',
+              color === 'danger' && 'bg-danger',
+              color === 'info' && 'bg-info',
+              color === 'custom' &&
+                'bg-[conic-gradient(var(--danger),var(--warning),var(--notice),var(--success),var(--info),var(--primary),var(--danger))]',
+            )}
+          >
+            {color == null && <Icon icon="minus" className="text-text-subtle" size="md" />}
+          </button>
+        ))}
+      </div>
+      {selectedColor === 'custom' && (
+        <>
+          <HexColorPicker
+            color={color ?? undefined}
+            className="!w-full"
+            onChange={(color) => {
+              onChange(color);
+              regenerateKey(); // To force input to change
+            }}
+          />
+          <PlainInput
+            hideLabel
+            label="Plain Color"
+            forceUpdateKey={updateKey}
+            defaultValue={color ?? ''}
+            onChange={onChange}
+            validate={(color) => color.match(/#[0-9a-fA-F]{6}$/) !== null}
+          />
+        </>
+      )}
+    </div>
+  );
+}
diff --git a/src-web/components/core/Icon.tsx b/src-web/components/core/Icon.tsx
index c3d0c506..61761075 100644
--- a/src-web/components/core/Icon.tsx
+++ b/src-web/components/core/Icon.tsx
@@ -30,6 +30,7 @@ import {
   CircleDollarSignIcon,
   CircleFadingArrowUpIcon,
   CircleHelpIcon,
+  CircleOffIcon,
   ClipboardPasteIcon,
   ClockIcon,
   CodeIcon,
@@ -191,6 +192,7 @@ const icons = {
   git_fork: GitForkIcon,
   git_pull_request: GitPullRequestIcon,
   grip_vertical: GripVerticalIcon,
+  circle_off: CircleOffIcon,
   hand: HandIcon,
   help: CircleHelpIcon,
   history: HistoryIcon,
diff --git a/src-web/lib/model_util.ts b/src-web/lib/model_util.ts
index 5d842009..56749bb6 100644
--- a/src-web/lib/model_util.ts
+++ b/src-web/lib/model_util.ts
@@ -49,7 +49,7 @@ export function getCharsetFromContentType(headers: HttpResponseHeader[]): string
 }
 
 export function isBaseEnvironment(environment: Environment): boolean {
-  return environment.parentId == null;
+  return environment.parentModel == 'workspace';
 }
 
 export function isSubEnvironment(environment: Environment): boolean {
diff --git a/src-web/lib/showColorPicker.tsx b/src-web/lib/showColorPicker.tsx
index eac79b69..52c7a306 100644
--- a/src-web/lib/showColorPicker.tsx
+++ b/src-web/lib/showColorPicker.tsx
@@ -1,17 +1,17 @@
 import type { Environment } from '@yaakapp-internal/models';
 import { patchModel } from '@yaakapp-internal/models';
-import { showDialog } from './dialog';
 import { EnvironmentColorPicker } from '../components/EnvironmentColorPicker';
+import { showDialog } from './dialog';
 
 export function showColorPicker(environment: Environment) {
   showDialog({
     title: 'Environment Color',
     id: 'color-picker',
-    size: 'dynamic',
+    size: 'sm',
     render: ({ hide }) => {
       return (
         <EnvironmentColorPicker
-          color={environment.color ?? '#54dc44'}
+          color={environment.color}
           onChange={async (color) => {
             await patchModel(environment, { color });
             hide();