diff --git a/src/shared/__tests__/cloud-environment.spec.ts b/src/shared/__tests__/cloud-environment.spec.ts
new file mode 100644
index 0000000000..1915291e64
--- /dev/null
+++ b/src/shared/__tests__/cloud-environment.spec.ts
@@ -0,0 +1,122 @@
+import {
+	isCloudEnvironment,
+	getAppEnvironment,
+	isPreviewEnvironment,
+	isProductionEnvironment,
+	isDevelopmentEnvironment,
+} from "../cloud-environment"
+
+describe("cloud-environment", () => {
+	const originalEnv = process.env
+
+	beforeEach(() => {
+		// Reset process.env before each test
+		vi.resetModules()
+		process.env = { ...originalEnv }
+	})
+
+	afterAll(() => {
+		// Restore original process.env after all tests
+		process.env = originalEnv
+	})
+
+	describe("isCloudEnvironment", () => {
+		it("should return true when ROO_CODE_IPC_SOCKET_PATH is set", () => {
+			process.env.ROO_CODE_IPC_SOCKET_PATH = "/tmp/test.sock"
+			expect(isCloudEnvironment()).toBe(true)
+		})
+
+		it("should return false when ROO_CODE_IPC_SOCKET_PATH is not set", () => {
+			delete process.env.ROO_CODE_IPC_SOCKET_PATH
+			expect(isCloudEnvironment()).toBe(false)
+		})
+
+		it("should return false when ROO_CODE_IPC_SOCKET_PATH is undefined", () => {
+			process.env.ROO_CODE_IPC_SOCKET_PATH = undefined as any
+			expect(isCloudEnvironment()).toBe(false)
+		})
+	})
+
+	describe("getAppEnvironment", () => {
+		it('should return "development" when ROO_CODE_APP_ENV is development', () => {
+			process.env.ROO_CODE_APP_ENV = "development"
+			expect(getAppEnvironment()).toBe("development")
+		})
+
+		it('should return "preview" when ROO_CODE_APP_ENV is preview', () => {
+			process.env.ROO_CODE_APP_ENV = "preview"
+			expect(getAppEnvironment()).toBe("preview")
+		})
+
+		it('should return "production" when ROO_CODE_APP_ENV is production', () => {
+			process.env.ROO_CODE_APP_ENV = "production"
+			expect(getAppEnvironment()).toBe("production")
+		})
+
+		it("should return undefined when ROO_CODE_APP_ENV is not set", () => {
+			delete process.env.ROO_CODE_APP_ENV
+			expect(getAppEnvironment()).toBeUndefined()
+		})
+
+		it("should return undefined when ROO_CODE_APP_ENV has invalid value", () => {
+			process.env.ROO_CODE_APP_ENV = "invalid"
+			expect(getAppEnvironment()).toBeUndefined()
+		})
+	})
+
+	describe("isPreviewEnvironment", () => {
+		it('should return true when ROO_CODE_APP_ENV is "preview"', () => {
+			process.env.ROO_CODE_APP_ENV = "preview"
+			expect(isPreviewEnvironment()).toBe(true)
+		})
+
+		it('should return false when ROO_CODE_APP_ENV is "production"', () => {
+			process.env.ROO_CODE_APP_ENV = "production"
+			expect(isPreviewEnvironment()).toBe(false)
+		})
+
+		it('should return false when ROO_CODE_APP_ENV is "development"', () => {
+			process.env.ROO_CODE_APP_ENV = "development"
+			expect(isPreviewEnvironment()).toBe(false)
+		})
+
+		it("should return false when ROO_CODE_APP_ENV is not set", () => {
+			delete process.env.ROO_CODE_APP_ENV
+			expect(isPreviewEnvironment()).toBe(false)
+		})
+	})
+
+	describe("isProductionEnvironment", () => {
+		it('should return true when ROO_CODE_APP_ENV is "production"', () => {
+			process.env.ROO_CODE_APP_ENV = "production"
+			expect(isProductionEnvironment()).toBe(true)
+		})
+
+		it('should return false when ROO_CODE_APP_ENV is "preview"', () => {
+			process.env.ROO_CODE_APP_ENV = "preview"
+			expect(isProductionEnvironment()).toBe(false)
+		})
+
+		it("should return false when ROO_CODE_APP_ENV is not set", () => {
+			delete process.env.ROO_CODE_APP_ENV
+			expect(isProductionEnvironment()).toBe(false)
+		})
+	})
+
+	describe("isDevelopmentEnvironment", () => {
+		it('should return true when ROO_CODE_APP_ENV is "development"', () => {
+			process.env.ROO_CODE_APP_ENV = "development"
+			expect(isDevelopmentEnvironment()).toBe(true)
+		})
+
+		it('should return false when ROO_CODE_APP_ENV is "production"', () => {
+			process.env.ROO_CODE_APP_ENV = "production"
+			expect(isDevelopmentEnvironment()).toBe(false)
+		})
+
+		it("should return false when ROO_CODE_APP_ENV is not set", () => {
+			delete process.env.ROO_CODE_APP_ENV
+			expect(isDevelopmentEnvironment()).toBe(false)
+		})
+	})
+})
diff --git a/src/shared/cloud-environment.ts b/src/shared/cloud-environment.ts
new file mode 100644
index 0000000000..6f6d6cd7c6
--- /dev/null
+++ b/src/shared/cloud-environment.ts
@@ -0,0 +1,59 @@
+/**
+ * Cloud environment detection utilities.
+ *
+ * These utilities help detect when the extension is running in a cloud
+ * environment (Roo Code Cloud) and determine the deployment environment
+ * (development, preview, production).
+ */
+
+/**
+ * Possible app environment values.
+ * - 'development': Local development environment
+ * - 'preview': Preview/staging environment (e.g., Vercel preview deployments)
+ * - 'production': Production environment
+ */
+export type AppEnvironment = "development" | "preview" | "production"
+
+/**
+ * Checks if the extension is running in Roo Code Cloud.
+ * This is determined by the presence of the ROO_CODE_IPC_SOCKET_PATH environment variable,
+ * which is set by the cloud worker when spawning VS Code.
+ */
+export function isCloudEnvironment(): boolean {
+	return typeof process.env.ROO_CODE_IPC_SOCKET_PATH === "string"
+}
+
+/**
+ * Gets the app environment (development, preview, or production).
+ * This is determined by the ROO_CODE_APP_ENV environment variable set by the cloud worker.
+ * Returns undefined if not running in a cloud environment or if the variable is not set.
+ */
+export function getAppEnvironment(): AppEnvironment | undefined {
+	const appEnv = process.env.ROO_CODE_APP_ENV
+	if (appEnv === "development" || appEnv === "preview" || appEnv === "production") {
+		return appEnv
+	}
+	return undefined
+}
+
+/**
+ * Checks if the extension is running in a preview environment.
+ * Preview environments are typically used for testing features before production.
+ */
+export function isPreviewEnvironment(): boolean {
+	return getAppEnvironment() === "preview"
+}
+
+/**
+ * Checks if the extension is running in a production environment.
+ */
+export function isProductionEnvironment(): boolean {
+	return getAppEnvironment() === "production"
+}
+
+/**
+ * Checks if the extension is running in a development environment.
+ */
+export function isDevelopmentEnvironment(): boolean {
+	return getAppEnvironment() === "development"
+}