Cursor can read files in your workspace to build context for its AI, so it can read a .env file if that file is included, but you control this. Cursor's indexing respects .gitignore and a .cursorignore file, so a .env that is git-ignored is generally not indexed, and adding it to .cursorignore excludes it explicitly. Content that is sent to Cursor's servers for a request is not stored or used for training when Privacy Mode is on. The larger risk is not Cursor itself but secrets ending up hardcoded in AI-generated code or exposed in a frontend build, so keep secrets server-side and rotate anything that may have leaked.
Short answer
Cursor reads workspace files to build AI context, so it can read a .env if that file is included in what it indexes or what you reference. Per Cursor's ignore-files documentation, its indexing respects .gitignore and a dedicated .cursorignore, so a git-ignored .env is generally excluded, and adding it to .cursorignore makes that explicit. Whether content is uploaded depends on Privacy Mode: with Privacy Mode enabled, code sent for a request is not stored on Cursor's servers or used for training. The bigger .env risk is secrets being hardcoded by AI-generated code or shipped in a frontend build, so keep them server-side, exclude secret files, and rotate any key that may have been exposed.
Does Cursor read your .env files?
Cursor is an AI code editor that builds context from your workspace, which means it can read files, including a .env, when they are part of what it indexes or what you explicitly include in a prompt. Reading a file is how the assistant understands your project, so the real question is less whether it can read files and more which files you allow into that context.
You are not without control here. Cursor honors ignore rules, so files you exclude are kept out of indexing and context. The practical stance is to treat your .env like any other secret: assume any file the editor can see could be sent for a request, and deliberately exclude the ones that hold credentials. This is the same principle you already apply to version control, just extended to the AI editor, so a file you would never commit is also a file you should never let the assistant index.
Are .env files uploaded to Cursor's servers?
When Cursor needs the model to reason about your code, the relevant content is sent to its servers to reach the AI model, so a file that is included in that context is uploaded for that request. A .env that is excluded from indexing and never referenced is generally not part of what gets sent, which is why exclusion matters more than any single setting.
Cursor's indexing respects .gitignore, and most projects already git-ignore .env, so in a typical setup the file is not indexed into the codebase embeddings. The gaps are the times you override that: opening the .env in a tab that gets included, or referencing it directly in a prompt. Adding .env to .cursorignore closes those gaps by excluding it explicitly, regardless of how you interact with the editor. It is worth listing not just .env but any variant such as .env.local or .env.production, since projects often keep the real secrets in one of those files rather than the base .env.
What Privacy Mode does
Privacy Mode is Cursor's setting that controls retention. With it enabled, the code sent to fulfill a request is not stored on Cursor's servers and is not used to train models, so content leaves your machine only transiently to produce the response. Cursor states that it is SOC 2 certified and that Privacy Mode enforces this no-retention behavior.
It is important to read Privacy Mode precisely. It governs what happens to content after it is sent, not whether content is sent at all. So Privacy Mode reduces the risk of retained secrets, but it is not a substitute for excluding your .env in the first place. Use both: exclude secret files so they are not sent, and keep Privacy Mode on so anything that is sent is not retained.
How to keep .env out of Cursor
The reliable approach combines a few settings rather than trusting one. The table below shows, for common scenarios, whether your .env is likely sent and which control governs it.
| Scenario | Is .env likely sent? | Control |
|---|---|---|
| .env in .gitignore, never referenced | Generally not indexed | Respects .gitignore |
| .env added to .cursorignore | Excluded from indexing and context | .cursorignore |
| You reference or open .env in context | Sent for that request | Avoid including it |
| Privacy Mode on | Sent content is not stored or trained on | Privacy Mode |
| Privacy Mode off | Sent content may be retained per policy | Enable Privacy Mode |
The clear pattern is that exclusion plus Privacy Mode covers the realistic cases. Rely on .gitignore for the default, add .cursorignore for certainty, and keep Privacy Mode on so that even content sent for a legitimate request is not stored.
The bigger risk: secrets in AI-generated code
The more common way secrets leak in AI-assisted projects is not the editor reading a .env; it is AI-generated code that hardcodes a key, or that places a secret where it ships to the client. An assistant asked to connect to an API may inline a key directly in source, or put it in a frontend environment variable that gets bundled into the app, where anyone can read it.
This is a widespread problem. Research such as the GitGuardian State of Secrets Sprawl has repeatedly found millions of secrets exposed in public code, and AI-accelerated development makes it easy to add one more without noticing. The lesson is to review generated code for inline credentials, keep secrets strictly server-side, and never rely on a frontend environment variable to hide anything, because it does not. A quick habit that helps is to search a new feature's diff for anything resembling a key before you commit it, since that is the cheapest moment to catch a hardcoded secret.
Hardening checklist
Protecting your secrets around an AI editor is a short set of habits rather than a single toggle. The checklist below captures the ones that matter.
| Check | Action | Done? |
|---|---|---|
| Exclude secret files | Add .env and other secret files to .cursorignore | [ ] |
| Privacy Mode | Enable it in Cursor settings | [ ] |
| No client secrets | Keep secrets server-side, not in frontend env | [ ] |
| No hardcoded keys | Review AI-generated code for inline credentials | [ ] |
| Rotate if exposed | Rotate any key that may have leaked | [ ] |
The two that matter most are excluding secret files from the editor and keeping secrets out of anything that reaches the client. Everything else, including Privacy Mode and key rotation, backs those up, but a secret that never reaches the editor or the frontend is the one you never have to worry about.
Where a scan fits
Editor settings control what your tools send, but they do not tell you whether a secret ended up compiled into your shipped app. A key that an assistant inlined, or a frontend variable that bundled a credential, can be present in the final build even after you tidy your .env handling.
A scanner like PTKD.com analyzes your app build and reports findings ordered by severity and mapped to OWASP MASVS, including secrets embedded in the binary, so you catch a leaked key before it ships. To be clear about the boundary: PTKD does not configure Cursor, toggle Privacy Mode, or manage your .env. It checks the built artifact for the exposed secrets that editor settings alone cannot catch.
What to take away
- Cursor can read a .env if it is included in context, but its indexing respects .gitignore and .cursorignore, so you control what it sees.
- Content sent for a request is uploaded to reach the model; a git-ignored, excluded .env is generally not part of that.
- Privacy Mode stops sent content from being stored or used for training, but it does not stop content from being sent, so exclude secrets too.
- The bigger risk is AI-generated code hardcoding a key or exposing it in a frontend build; keep secrets server-side and review generated code.
- Rotate any key that may have leaked, and scan your build with PTKD.com for secrets that made it into the shipped app.
