diff --git a/app/Livewire/Project/New/DockerCompose.php b/app/Livewire/Project/New/DockerCompose.php
index 8619e7ef8..634a012c0 100644
--- a/app/Livewire/Project/New/DockerCompose.php
+++ b/app/Livewire/Project/New/DockerCompose.php
@@ -65,8 +65,9 @@ public function submit()
             $variables = parseEnvFormatToArray($this->envFile);
             foreach ($variables as $key => $data) {
                 // Extract value and comment from parsed data
-                $value = $data['value'] ?? $data;
-                $comment = $data['comment'] ?? null;
+                // Handle both array format ['value' => ..., 'comment' => ...] and plain string values
+                $value = is_array($data) ? ($data['value'] ?? '') : $data;
+                $comment = is_array($data) ? ($data['comment'] ?? null) : null;
 
                 EnvironmentVariable::create([
                     'key' => $key,
diff --git a/app/Livewire/Project/Shared/EnvironmentVariable/All.php b/app/Livewire/Project/Shared/EnvironmentVariable/All.php
index d8f9e6302..35879665d 100644
--- a/app/Livewire/Project/Shared/EnvironmentVariable/All.php
+++ b/app/Livewire/Project/Shared/EnvironmentVariable/All.php
@@ -276,8 +276,9 @@ private function updateOrCreateVariables($isPreview, $variables)
             }
 
             // Extract value and comment from parsed data
-            $value = $data['value'] ?? $data;
-            $comment = $data['comment'] ?? null;
+            // Handle both array format ['value' => ..., 'comment' => ...] and plain string values
+            $value = is_array($data) ? ($data['value'] ?? '') : $data;
+            $comment = is_array($data) ? ($data['comment'] ?? null) : null;
 
             $method = $isPreview ? 'environment_variables_preview' : 'environment_variables';
             $found = $this->resource->$method()->where('key', $key)->first();
diff --git a/tests/Unit/Livewire/Project/New/DockerComposeEnvVariableHandlingTest.php b/tests/Unit/Livewire/Project/New/DockerComposeEnvVariableHandlingTest.php
new file mode 100644
index 000000000..546e24a97
--- /dev/null
+++ b/tests/Unit/Livewire/Project/New/DockerComposeEnvVariableHandlingTest.php
@@ -0,0 +1,121 @@
+<?php
+
+test('DockerCompose handles array format from parseEnvFormatToArray', function () {
+    // Simulate the array format that parseEnvFormatToArray returns
+    $variables = [
+        'KEY1' => ['value' => 'value1', 'comment' => null],
+        'KEY2' => ['value' => 'value2', 'comment' => 'This is a comment'],
+        'KEY3' => ['value' => 'value3', 'comment' => null],
+    ];
+
+    // Test the extraction logic
+    foreach ($variables as $key => $data) {
+        // Handle both array format ['value' => ..., 'comment' => ...] and plain string values
+        $value = is_array($data) ? ($data['value'] ?? '') : $data;
+        $comment = is_array($data) ? ($data['comment'] ?? null) : null;
+
+        // Verify the extraction
+        expect($value)->toBeString();
+        expect($key)->toBeIn(['KEY1', 'KEY2', 'KEY3']);
+
+        if ($key === 'KEY1') {
+            expect($value)->toBe('value1');
+            expect($comment)->toBeNull();
+        } elseif ($key === 'KEY2') {
+            expect($value)->toBe('value2');
+            expect($comment)->toBe('This is a comment');
+        } elseif ($key === 'KEY3') {
+            expect($value)->toBe('value3');
+            expect($comment)->toBeNull();
+        }
+    }
+});
+
+test('DockerCompose handles plain string format gracefully', function () {
+    // Simulate a scenario where parseEnvFormatToArray might return plain strings
+    // (for backward compatibility or edge cases)
+    $variables = [
+        'KEY1' => 'value1',
+        'KEY2' => 'value2',
+        'KEY3' => 'value3',
+    ];
+
+    // Test the extraction logic
+    foreach ($variables as $key => $data) {
+        // Handle both array format ['value' => ..., 'comment' => ...] and plain string values
+        $value = is_array($data) ? ($data['value'] ?? '') : $data;
+        $comment = is_array($data) ? ($data['comment'] ?? null) : null;
+
+        // Verify the extraction
+        expect($value)->toBeString();
+        expect($comment)->toBeNull();
+        expect($key)->toBeIn(['KEY1', 'KEY2', 'KEY3']);
+    }
+});
+
+test('DockerCompose handles mixed array and string formats', function () {
+    // Simulate a mixed scenario (unlikely but possible)
+    $variables = [
+        'KEY1' => ['value' => 'value1', 'comment' => 'comment1'],
+        'KEY2' => 'value2', // Plain string
+        'KEY3' => ['value' => 'value3', 'comment' => null],
+        'KEY4' => 'value4', // Plain string
+    ];
+
+    // Test the extraction logic
+    foreach ($variables as $key => $data) {
+        // Handle both array format ['value' => ..., 'comment' => ...] and plain string values
+        $value = is_array($data) ? ($data['value'] ?? '') : $data;
+        $comment = is_array($data) ? ($data['comment'] ?? null) : null;
+
+        // Verify the extraction
+        expect($value)->toBeString();
+        expect($key)->toBeIn(['KEY1', 'KEY2', 'KEY3', 'KEY4']);
+
+        if ($key === 'KEY1') {
+            expect($value)->toBe('value1');
+            expect($comment)->toBe('comment1');
+        } elseif ($key === 'KEY2') {
+            expect($value)->toBe('value2');
+            expect($comment)->toBeNull();
+        } elseif ($key === 'KEY3') {
+            expect($value)->toBe('value3');
+            expect($comment)->toBeNull();
+        } elseif ($key === 'KEY4') {
+            expect($value)->toBe('value4');
+            expect($comment)->toBeNull();
+        }
+    }
+});
+
+test('DockerCompose handles empty array values gracefully', function () {
+    // Simulate edge case with incomplete array structure
+    $variables = [
+        'KEY1' => ['value' => 'value1'], // Missing 'comment' key
+        'KEY2' => ['comment' => 'comment2'], // Missing 'value' key (edge case)
+        'KEY3' => [], // Empty array (edge case)
+    ];
+
+    // Test the extraction logic with improved fallback
+    foreach ($variables as $key => $data) {
+        // Handle both array format ['value' => ..., 'comment' => ...] and plain string values
+        $value = is_array($data) ? ($data['value'] ?? '') : $data;
+        $comment = is_array($data) ? ($data['comment'] ?? null) : null;
+
+        // Verify the extraction doesn't crash
+        expect($key)->toBeIn(['KEY1', 'KEY2', 'KEY3']);
+
+        if ($key === 'KEY1') {
+            expect($value)->toBe('value1');
+            expect($comment)->toBeNull();
+        } elseif ($key === 'KEY2') {
+            // If 'value' is missing, fallback to empty string (not the whole array)
+            expect($value)->toBe('');
+            expect($comment)->toBe('comment2');
+        } elseif ($key === 'KEY3') {
+            // If both are missing, fallback to empty string (not empty array)
+            expect($value)->toBe('');
+            expect($comment)->toBeNull();
+        }
+    }
+});