diff --git a/app/w/components/sidebar/components/settings-modal/settings-modal.tsx b/app/w/components/sidebar/components/settings-modal/settings-modal.tsx
index 65594ae92..8568e760c 100644
--- a/app/w/components/sidebar/components/settings-modal/settings-modal.tsx
+++ b/app/w/components/sidebar/components/settings-modal/settings-modal.tsx
@@ -9,77 +9,171 @@ import {
 import { Input } from '@/components/ui/input'
 import { Button } from '@/components/ui/button'
 import { Label } from '@/components/ui/label'
-import { useState } from 'react'
+import { useState, useRef, useEffect } from 'react'
 
-export function SettingsModal({
-  open,
-  onOpenChange,
-}: {
+interface EnvVar {
+  key: string
+  value: string
+}
+
+interface SettingsModalProps {
   open: boolean
   onOpenChange: (open: boolean) => void
-}) {
-  const [envVars, setEnvVars] = useState<{ key: string; value: string }[]>([
-    { key: '', value: '' },
-  ])
+}
 
-  const addEnvVar = () => {
-    setEnvVars([...envVars, { key: '', value: '' }])
+const GRID_COLS = 'grid grid-cols-[minmax(0,1fr),minmax(0,1fr),40px] gap-4'
+const INITIAL_ENV_VAR: EnvVar = { key: '', value: '' }
+
+export function SettingsModal({ open, onOpenChange }: SettingsModalProps) {
+  const [envVars, setEnvVars] = useState<EnvVar[]>([INITIAL_ENV_VAR])
+  const [focusedValueIndex, setFocusedValueIndex] = useState<number | null>(null)
+  const inputRefs = useRef<(HTMLInputElement | null)[]>([])
+
+  useEffect(() => {
+    inputRefs.current = inputRefs.current.slice(0, envVars.length)
+  }, [envVars.length])
+
+  const setInputRef = (el: HTMLInputElement | null, index: number) => {
+    inputRefs.current[index] = el
   }
 
-  const updateEnvVar = (
-    index: number,
-    field: 'key' | 'value',
-    value: string
-  ) => {
+  const handleValueFocus = (index: number) => {
+    setFocusedValueIndex(index)
+    setTimeout(() => {
+      const input = inputRefs.current[index]
+      if (input) {
+        input.setSelectionRange(0, 0)
+        input.scrollLeft = 0
+      }
+    }, 0)
+  }
+
+  const handleValueClick = (e: React.MouseEvent<HTMLInputElement>, index: number) => {
+    e.preventDefault()
+    const input = inputRefs.current[index]
+    if (input) {
+      input.setSelectionRange(0, 0)
+      input.scrollLeft = 0
+    }
+  }
+
+  const handleValueKeyDown = (e: React.KeyboardEvent<HTMLInputElement>) => {
+    if (e.key === 'ArrowLeft' || e.key === 'ArrowRight') {
+      e.preventDefault()
+    }
+  }
+
+  const handlePaste = (e: React.ClipboardEvent, index: number) => {
+    const text = e.clipboardData.getData('text')
+    const lines = text.split('\n').filter(line => line.trim())
+    
+    if (lines.length === 0) return
+    e.preventDefault()
+    
+    if (lines.length === 1) {
+      // Single line paste
+      const [key, ...valueParts] = lines[0].split('=')
+      const value = valueParts.join('=').trim()
+      if (key && value) {
+        const newEnvVars = [...envVars]
+        newEnvVars[index] = { key: key.trim(), value }
+        setEnvVars(newEnvVars)
+      }
+    } else {
+      // Multi-line paste
+      const parsedVars = lines
+        .map(line => {
+          const [key, ...valueParts] = line.split('=')
+          return {
+            key: key.trim(),
+            value: valueParts.join('=').trim()
+          }
+        })
+        .filter(({ key, value }) => key && value)
+
+      if (parsedVars.length > 0) {
+        setEnvVars(parsedVars)
+      }
+    }
+  }
+
+  const addEnvVar = () => setEnvVars([...envVars, INITIAL_ENV_VAR])
+
+  const updateEnvVar = (index: number, field: keyof EnvVar, value: string) => {
     const newEnvVars = [...envVars]
     newEnvVars[index][field] = value
     setEnvVars(newEnvVars)
   }
 
+  const removeEnvVar = (index: number) => {
+    const newEnvVars = envVars.filter((_, i) => i !== index)
+    setEnvVars(newEnvVars.length ? newEnvVars : [INITIAL_ENV_VAR])
+  }
+
+  const renderEnvVarRow = (envVar: EnvVar, index: number) => (
+    <div key={index} className={`${GRID_COLS} items-center`}>
+      <Input
+        value={envVar.key}
+        onChange={(e) => updateEnvVar(index, 'key', e.target.value)}
+        onPaste={(e) => handlePaste(e, index)}
+        placeholder="e.g. API_KEY"
+      />
+      <Input
+        ref={(el) => setInputRef(el, index)}
+        value={envVar.value}
+        onChange={(e) => updateEnvVar(index, 'value', e.target.value)}
+        type={focusedValueIndex === index ? "text" : "password"}
+        onFocus={() => handleValueFocus(index)}
+        onClick={(e) => handleValueClick(e, index)}
+        onBlur={() => setFocusedValueIndex(null)}
+        onKeyDown={handleValueKeyDown}
+        placeholder="Enter value"
+      />
+      <Button
+        variant="ghost"
+        size="icon"
+        onClick={() => removeEnvVar(index)}
+        className="h-10 w-10"
+      >
+        ×
+      </Button>
+    </div>
+  )
+
   return (
     <Dialog open={open} onOpenChange={onOpenChange}>
-      <DialogContent className="sm:max-w-[600px]">
+      <DialogContent className="sm:max-w-[600px] max-h-[85vh] flex flex-col">
         <DialogHeader>
           <DialogTitle>Environment Variables</DialogTitle>
         </DialogHeader>
-        <div className="space-y-4">
-          {envVars.map((envVar, index) => (
-            <div key={index} className="grid grid-cols-2 gap-4">
-              <div className="space-y-2">
-                <Label htmlFor={`key-${index}`}>Key</Label>
-                <Input
-                  id={`key-${index}`}
-                  value={envVar.key}
-                  onChange={(e) => updateEnvVar(index, 'key', e.target.value)}
-                  placeholder="API_KEY"
-                />
-              </div>
-              <div className="space-y-2">
-                <Label htmlFor={`value-${index}`}>Value</Label>
-                <Input
-                  id={`value-${index}`}
-                  value={envVar.value}
-                  onChange={(e) => updateEnvVar(index, 'value', e.target.value)}
-                  type="password"
-                  placeholder="Enter value"
-                />
-              </div>
-            </div>
-          ))}
+        
+        <div className="space-y-1.5 mt-2">
+          <div className={`${GRID_COLS} px-0.5`}>
+            <Label>Key</Label>
+            <Label>Value</Label>
+            <div />
+          </div>
+
+          <div className="space-y-2">
+            {envVars.map(renderEnvVarRow)}
+          </div>
         </div>
-        <Button
-          variant="outline"
-          size="sm"
-          onClick={addEnvVar}
-          className="mt-2"
-        >
-          Add Variable
-        </Button>
-        <div className="flex justify-end space-x-2 pt-4">
-          <Button variant="outline" onClick={() => onOpenChange(false)}>
-            Cancel
+        
+        <div className="flex flex-col gap-4 pt-4 border-t mt-4">
+          <Button
+            variant="outline"
+            size="sm"
+            onClick={addEnvVar}
+          >
+            Add Variable
           </Button>
-          <Button onClick={() => onOpenChange(false)}>Save Changes</Button>
+          
+          <div className="flex justify-end space-x-2">
+            <Button variant="outline" onClick={() => onOpenChange(false)}>
+              Cancel
+            </Button>
+            <Button onClick={() => onOpenChange(false)}>Save Changes</Button>
+          </div>
         </div>
       </DialogContent>
     </Dialog>