diff --git a/api/app.py b/api/app.py
index a36750410e156d..4a52835d730d8c 100644
--- a/api/app.py
+++ b/api/app.py
@@ -1,5 +1,7 @@
 import os
 
+from configs.app_configs import AppConfigs
+
 if not os.environ.get("DEBUG") or os.environ.get("DEBUG").lower() != 'true':
     from gevent import monkey
 
@@ -25,7 +27,6 @@
 from config import Config
 
 # DO NOT REMOVE BELOW
-from events import event_handlers
 from extensions import (
     ext_celery,
     ext_code_based_extension,
@@ -42,7 +43,6 @@
 from extensions.ext_database import db
 from extensions.ext_login import login_manager
 from libs.passport import PassportService
-from models import account, dataset, model, source, task, tool, tools, web
 from services.account_service import AccountService
 
 # DO NOT REMOVE ABOVE
@@ -74,10 +74,19 @@ class DifyApp(Flask):
 # Application Factory Function
 # ----------------------------
 
+def create_flask_app() -> Flask:
+    """
+    create a raw flask app
+    with configs loaded from .env file
+    """
+    dify_app = DifyApp(__name__)
+    dify_app.config.from_object(Config())
+    dify_app.config.from_mapping(AppConfigs().dict())
+    return dify_app
+
 
 def create_app() -> Flask:
-    app = DifyApp(__name__)
-    app.config.from_object(Config())
+    app = create_flask_app()
 
     app.secret_key = app.config['SECRET_KEY']
 
diff --git a/api/config.py b/api/config.py
index 0e7cef3286e1f7..42a43d20aeaa70 100644
--- a/api/config.py
+++ b/api/config.py
@@ -5,7 +5,6 @@
 dotenv.load_dotenv()
 
 DEFAULTS = {
-    'EDITION': 'SELF_HOSTED',
     'DB_USERNAME': 'postgres',
     'DB_PASSWORD': '',
     'DB_HOST': 'localhost',
@@ -18,18 +17,12 @@
     'REDIS_USE_SSL': 'False',
     'OAUTH_REDIRECT_PATH': '/console/api/oauth/authorize',
     'OAUTH_REDIRECT_INDEX_PATH': '/',
-    'CONSOLE_WEB_URL': 'https://cloud.dify.ai',
-    'CONSOLE_API_URL': 'https://cloud.dify.ai',
-    'SERVICE_API_URL': 'https://api.dify.ai',
-    'APP_WEB_URL': 'https://udify.app',
     'FILES_URL': '',
     'FILES_ACCESS_TIMEOUT': 300,
     'S3_USE_AWS_MANAGED_IAM': 'False',
     'S3_ADDRESS_STYLE': 'auto',
     'STORAGE_TYPE': 'local',
     'STORAGE_LOCAL_PATH': 'storage',
-    'CHECK_UPDATE_URL': 'https://updates.dify.ai',
-    'DEPLOY_ENV': 'PRODUCTION',
     'SQLALCHEMY_DATABASE_URI_SCHEME': 'postgresql',
     'SQLALCHEMY_POOL_SIZE': 30,
     'SQLALCHEMY_MAX_OVERFLOW': 10,
@@ -44,10 +37,6 @@
     'QDRANT_GRPC_ENABLED': 'False',
     'QDRANT_GRPC_PORT': '6334',
     'CELERY_BACKEND': 'database',
-    'LOG_LEVEL': 'INFO',
-    'LOG_FILE': '',
-    'LOG_FORMAT': '%(asctime)s.%(msecs)03d %(levelname)s [%(threadName)s] [%(filename)s:%(lineno)d] - %(message)s',
-    'LOG_DATEFORMAT': '%Y-%m-%d %H:%M:%S',
     'HOSTED_OPENAI_QUOTA_LIMIT': 200,
     'HOSTED_OPENAI_TRIAL_ENABLED': 'False',
     'HOSTED_OPENAI_TRIAL_MODELS': 'gpt-3.5-turbo,gpt-3.5-turbo-1106,gpt-3.5-turbo-instruct,gpt-3.5-turbo-16k,gpt-3.5-turbo-16k-0613,gpt-3.5-turbo-0613,gpt-3.5-turbo-0125,text-davinci-003',
@@ -114,51 +103,13 @@ class Config:
     """Application configuration class."""
 
     def __init__(self):
-        # ------------------------
-        # General Configurations.
-        # ------------------------
-        self.CURRENT_VERSION = "0.6.11"
-        self.COMMIT_SHA = get_env('COMMIT_SHA')
-        self.EDITION = get_env('EDITION')
-        self.DEPLOY_ENV = get_env('DEPLOY_ENV')
         self.TESTING = False
-        self.LOG_LEVEL = get_env('LOG_LEVEL')
-        self.LOG_FILE = get_env('LOG_FILE')
-        self.LOG_FORMAT = get_env('LOG_FORMAT')
-        self.LOG_DATEFORMAT = get_env('LOG_DATEFORMAT')
-        self.API_COMPRESSION_ENABLED = get_bool_env('API_COMPRESSION_ENABLED')
-
-        # The backend URL prefix of the console API.
-        # used to concatenate the login authorization callback or notion integration callback.
-        self.CONSOLE_API_URL = get_env('CONSOLE_API_URL')
-
-        # The front-end URL prefix of the console web.
-        # used to concatenate some front-end addresses and for CORS configuration use.
-        self.CONSOLE_WEB_URL = get_env('CONSOLE_WEB_URL')
 
-        # WebApp Url prefix.
-        # used to display WebAPP API Base Url to the front-end.
-        self.APP_WEB_URL = get_env('APP_WEB_URL')
-
-        # Service API Url prefix.
-        # used to display Service API Base Url to the front-end.
-        self.SERVICE_API_URL = get_env('SERVICE_API_URL')
-
-        # File preview or download Url prefix.
-        # used to display File preview or download Url to the front-end or as Multi-model inputs;
-        # Url is signed and has expiration time.
-        self.FILES_URL = get_env('FILES_URL') if get_env('FILES_URL') else self.CONSOLE_API_URL
 
         # File Access Time specifies a time interval in seconds for the file to be accessed.
         # The default value is 300 seconds.
         self.FILES_ACCESS_TIMEOUT = int(get_env('FILES_ACCESS_TIMEOUT'))
 
-        # Your App secret key will be used for securely signing the session cookie
-        # Make sure you are changing this key for your deployment with a strong key.
-        # You can generate a strong key using `openssl rand -base64 42`.
-        # Alternatively you can set it with `SECRET_KEY` environment variable.
-        self.SECRET_KEY = get_env('SECRET_KEY')
-
         # Enable or disable the inner API.
         self.INNER_API = get_bool_env('INNER_API')
         # The inner API key is used to authenticate the inner API.
@@ -166,13 +117,10 @@ def __init__(self):
 
         # cors settings
         self.CONSOLE_CORS_ALLOW_ORIGINS = get_cors_allow_origins(
-            'CONSOLE_CORS_ALLOW_ORIGINS', self.CONSOLE_WEB_URL)
+            'CONSOLE_CORS_ALLOW_ORIGINS', get_env('CONSOLE_WEB_URL'))
         self.WEB_API_CORS_ALLOW_ORIGINS = get_cors_allow_origins(
             'WEB_API_CORS_ALLOW_ORIGINS', '*')
 
-        # check update url
-        self.CHECK_UPDATE_URL = get_env('CHECK_UPDATE_URL')
-
         # ------------------------
         # Database Configurations.
         # ------------------------
@@ -212,7 +160,7 @@ def __init__(self):
         self.CELERY_BACKEND = get_env('CELERY_BACKEND')
         self.CELERY_RESULT_BACKEND = 'db+{}'.format(self.SQLALCHEMY_DATABASE_URI) \
             if self.CELERY_BACKEND == 'database' else self.CELERY_BROKER_URL
-        self.BROKER_USE_SSL = self.CELERY_BROKER_URL.startswith('rediss://')
+        self.BROKER_USE_SSL = self.CELERY_BROKER_URL.startswith('rediss://') if self.CELERY_BROKER_URL else False
 
         # ------------------------
         # Code Execution Sandbox Configurations.
diff --git a/api/configs/app_configs.py b/api/configs/app_configs.py
new file mode 100644
index 00000000000000..913da033ac2cae
--- /dev/null
+++ b/api/configs/app_configs.py
@@ -0,0 +1,26 @@
+from pydantic_settings import BaseSettings, SettingsConfigDict
+
+from configs.build_info import BuildInfo
+from configs.deployment_configs import DeploymentConfigs
+from configs.endpoint_configs import EndpointConfigs
+from configs.http_configs import HttpConfigs
+from configs.logging_configs import LoggingConfigs
+from configs.security_configs import SecurityConfigs
+
+
+class AppConfigs(
+    # pydantic-settings
+    BaseSettings,
+
+    # app configs
+    BuildInfo,
+    DeploymentConfigs,
+    EndpointConfigs,
+    HttpConfigs,
+    LoggingConfigs,
+    SecurityConfigs,
+):
+    # read from dotenv format config file
+    model_config = SettingsConfigDict(
+        env_file='.env',
+        env_file_encoding='utf-8')
diff --git a/api/configs/build_info.py b/api/configs/build_info.py
new file mode 100644
index 00000000000000..99e6188b91a23a
--- /dev/null
+++ b/api/configs/build_info.py
@@ -0,0 +1,17 @@
+from pydantic import BaseModel, Field
+
+
+class BuildInfo(BaseModel):
+    """
+    Build information
+    """
+
+    CURRENT_VERSION: str = Field(
+        description='Dify version',
+        default='0.6.11',
+    )
+
+    COMMIT_SHA: str = Field(
+        description="SHA-1 checksum of the git commit used to build the app",
+        default='',
+    )
diff --git a/api/configs/deployment_configs.py b/api/configs/deployment_configs.py
new file mode 100644
index 00000000000000..9a1c1b84d7cfb7
--- /dev/null
+++ b/api/configs/deployment_configs.py
@@ -0,0 +1,16 @@
+from pydantic import BaseModel, Field
+
+
+class DeploymentConfigs(BaseModel):
+    """
+    Deployment configs
+    """
+    EDITION: str = Field(
+        description='deployment edition',
+        default='SELF_HOSTED',
+    )
+
+    DEPLOY_ENV: str = Field(
+        description='deployment environment, default to PRODUCTION.',
+        default='PRODUCTION',
+    )
diff --git a/api/configs/endpoint_configs.py b/api/configs/endpoint_configs.py
new file mode 100644
index 00000000000000..682a3c505b4efd
--- /dev/null
+++ b/api/configs/endpoint_configs.py
@@ -0,0 +1,39 @@
+from pydantic import AliasChoices, BaseModel, Field
+
+
+class EndpointConfigs(BaseModel):
+    """
+    Module URL configs
+    """
+    CONSOLE_API_URL: str = Field(
+        description='The backend URL prefix of the console API.'
+                    'used to concatenate the login authorization callback or notion integration callback.',
+        default='https://cloud.dify.ai',
+    )
+
+    CONSOLE_WEB_URL: str = Field(
+        description='The front-end URL prefix of the console web.'
+                    'used to concatenate some front-end addresses and for CORS configuration use.',
+        default='https://cloud.dify.ai',
+    )
+
+    SERVICE_API_URL: str = Field(
+        description='Service API Url prefix.'
+                    'used to display Service API Base Url to the front-end.',
+        default='https://api.dify.ai',
+    )
+
+    APP_WEB_URL: str = Field(
+        description='WebApp Url prefix.'
+                    'used to display WebAPP API Base Url to the front-end.',
+        default='https://udify.app',
+    )
+
+    FILES_URL: str = Field(
+        description='File preview or download Url prefix.'
+                    ' used to display File preview or download Url to the front-end or as Multi-model inputs;'
+                    'Url is signed and has expiration time.',
+        validation_alias=AliasChoices('FILES_URL', 'CONSOLE_API_URL'),
+        alias_priority=1,
+        default='https://cloud.dify.ai',
+    )
diff --git a/api/configs/http_configs.py b/api/configs/http_configs.py
new file mode 100644
index 00000000000000..f03bbb4f033a09
--- /dev/null
+++ b/api/configs/http_configs.py
@@ -0,0 +1,11 @@
+from pydantic import BaseModel, Field
+
+
+class HttpConfigs(BaseModel):
+    """
+    HTTP configs
+    """
+    API_COMPRESSION_ENABLED: bool = Field(
+        description='whether to enable HTTP response compression of gzip',
+        default=False,
+    )
diff --git a/api/configs/logging_configs.py b/api/configs/logging_configs.py
new file mode 100644
index 00000000000000..6ac14cbb5a7e4d
--- /dev/null
+++ b/api/configs/logging_configs.py
@@ -0,0 +1,28 @@
+from pydantic import BaseModel, Field
+
+
+class LoggingConfigs(BaseModel):
+    """
+    Logging configs
+    """
+
+    LOG_LEVEL: str = Field(
+        description='Log output level, default to INFO.'
+                    'It is recommended to set it to ERROR for production.',
+        default='INFO',
+    )
+
+    LOG_FILE: str = Field(
+        description='logging output file path',
+        default='',
+    )
+
+    LOG_FORMAT: str = Field(
+        description='log format',
+        default='%(asctime)s.%(msecs)03d %(levelname)s [%(threadName)s] [%(filename)s:%(lineno)d] - %(message)s',
+    )
+
+    LOG_DATEFORMAT: str = Field(
+        description='log date format',
+        default='',
+    )
diff --git a/api/configs/security_configs.py b/api/configs/security_configs.py
new file mode 100644
index 00000000000000..bf6f4735511bfc
--- /dev/null
+++ b/api/configs/security_configs.py
@@ -0,0 +1,16 @@
+from typing import Optional
+
+from pydantic import BaseModel, Field
+
+
+class SecurityConfigs(BaseModel):
+    """
+    Secret Key configs
+    """
+    SECRET_KEY: Optional[str] = Field(
+        description='Your App secret key will be used for securely signing the session cookie'
+                    'Make sure you are changing this key for your deployment with a strong key.'
+                    'You can generate a strong key using `openssl rand -base64 42`.'
+                    'Alternatively you can set it with `SECRET_KEY` environment variable.',
+        default=None,
+    )
diff --git a/api/configs/update_configs.py b/api/configs/update_configs.py
new file mode 100644
index 00000000000000..92af4f356a81c4
--- /dev/null
+++ b/api/configs/update_configs.py
@@ -0,0 +1,11 @@
+from pydantic import BaseModel, Field
+
+
+class HttpConfigs(BaseModel):
+    """
+    HTTP configs
+    """
+    CHECK_UPDATE_URL: str = Field(
+        description='url for checking updates',
+        default='https://updates.dify.ai',
+    )
diff --git a/api/extensions/ext_compress.py b/api/extensions/ext_compress.py
index 4a349d37b41613..1dbaffcfb0dc27 100644
--- a/api/extensions/ext_compress.py
+++ b/api/extensions/ext_compress.py
@@ -2,7 +2,7 @@
 
 
 def init_app(app: Flask):
-    if app.config.get('API_COMPRESSION_ENABLED', False):
+    if app.config.get('API_COMPRESSION_ENABLED'):
         from flask_compress import Compress
 
         app.config['COMPRESS_MIMETYPES'] = [
diff --git a/api/poetry.lock b/api/poetry.lock
index 6d716a15c2beba..bde401469e1b64 100644
--- a/api/poetry.lock
+++ b/api/poetry.lock
@@ -5823,6 +5823,25 @@ phonenumbers = ["phonenumbers (>=8,<9)"]
 pycountry = ["pycountry (>=23)"]
 python-ulid = ["python-ulid (>=1,<2)", "python-ulid (>=1,<3)"]
 
+[[package]]
+name = "pydantic-settings"
+version = "2.3.3"
+description = "Settings management using Pydantic"
+optional = false
+python-versions = ">=3.8"
+files = [
+    {file = "pydantic_settings-2.3.3-py3-none-any.whl", hash = "sha256:e4ed62ad851670975ec11285141db888fd24947f9440bd4380d7d8788d4965de"},
+    {file = "pydantic_settings-2.3.3.tar.gz", hash = "sha256:87fda838b64b5039b970cd47c3e8a1ee460ce136278ff672980af21516f6e6ce"},
+]
+
+[package.dependencies]
+pydantic = ">=2.7.0"
+python-dotenv = ">=0.21.0"
+
+[package.extras]
+toml = ["tomli (>=2.0.1)"]
+yaml = ["pyyaml (>=6.0.1)"]
+
 [[package]]
 name = "pydub"
 version = "0.25.1"
@@ -8921,4 +8940,4 @@ testing = ["coverage (>=5.0.3)", "zope.event", "zope.testing"]
 [metadata]
 lock-version = "2.0"
 python-versions = "^3.10"
-content-hash = "e967aa4b61dc7c40f2f50eb325038da1dc0ff633d8f778e7a7560bdabce744dc"
+content-hash = "d5cf8a44ffb11a3c15b19895657fa13aba02757cb1157b3259a7fdec4e7a140d"
diff --git a/api/pyproject.toml b/api/pyproject.toml
index b56556a62b00fb..1ab133c19e9a1f 100644
--- a/api/pyproject.toml
+++ b/api/pyproject.toml
@@ -172,6 +172,7 @@ lxml = "5.1.0"
 xlrd = "~2.0.1"
 pydantic = "~2.7.4"
 pydantic_extra_types = "~2.8.1"
+pydantic-settings = "~2.3.3"
 pgvecto-rs = "0.1.4"
 firecrawl-py = "0.0.5"
 oss2 = "2.18.5"
diff --git a/api/requirements.txt b/api/requirements.txt
index a6a1d8c5cedc33..20a30356983791 100644
--- a/api/requirements.txt
+++ b/api/requirements.txt
@@ -77,6 +77,7 @@ azure-identity==1.16.1
 lxml==5.1.0
 pydantic~=2.7.4
 pydantic_extra_types~=2.8.1
+pydantic-settings~=2.3.3
 pgvecto-rs==0.1.4
 tcvectordb==1.3.2
 firecrawl-py==0.0.5
diff --git a/api/tests/unit_tests/settings/test_app_settings.py b/api/tests/unit_tests/settings/test_app_settings.py
new file mode 100644
index 00000000000000..85b031a11e06d2
--- /dev/null
+++ b/api/tests/unit_tests/settings/test_app_settings.py
@@ -0,0 +1,46 @@
+import pytest
+from flask import Flask
+
+from config import Config
+from configs.app_configs import AppConfigs
+
+
+def test_app_settings_undefined_entry():
+    # load dotenv file with pydantic-settings
+    settings = AppConfigs()
+
+    # entries not defined in app settings
+    with pytest.raises(TypeError):
+        # TypeError: 'AppSettings' object is not subscriptable
+        assert settings['LOG_LEVEL'] == 'INFO'
+
+
+def test_app_settings():
+    # load dotenv file with pydantic-settings
+    settings = AppConfigs()
+
+    # constant values
+    assert settings.COMMIT_SHA == ''
+
+    # default values
+    assert settings.EDITION == 'SELF_HOSTED'
+    assert settings.API_COMPRESSION_ENABLED is False
+
+
+def test_flask_configs():
+    flask_app = Flask('app')
+    flask_app.config.from_object(Config())
+    flask_app.config.from_mapping(AppConfigs().dict())
+    config = flask_app.config
+
+    # configs read from dotenv directly
+    assert config['LOG_LEVEL'] == 'INFO'
+
+    # configs read from pydantic-settings
+    assert config['COMMIT_SHA'] == ''
+    assert config['EDITION'] == 'SELF_HOSTED'
+    assert config['API_COMPRESSION_ENABLED'] is False
+
+    assert config['CONSOLE_API_URL'] == 'https://cloud.dify.ai'
+    # fallback to alias choices value as CONSOLE_API_URL
+    assert config['FILES_URL'] == 'https://cloud.dify.ai'