diff --git a/.changeset/unlucky-kiwis-rescue.md b/.changeset/unlucky-kiwis-rescue.md
new file mode 100644
index 0000000000..71afaeb44a
--- /dev/null
+++ b/.changeset/unlucky-kiwis-rescue.md
@@ -0,0 +1,14 @@
+---
+'@backstage/core': minor
+---
+
+Introducing a new optional property within `app-config.yaml` called `auth.environment` to have configurable environment value for `auth.providers`
+
+**Default Value:** 'development'
+
+**Optional Values:** 'production' | 'development'
+
+**Migration-steps:**
+
+- To override the default value, one could simply introduce the new property `environment` within the `auth` section of the `config.yaml`
+- re-run the build to reflect the changed configs
diff --git a/app-config.yaml b/app-config.yaml
index 54d564de7d..7fc041bf13 100644
--- a/app-config.yaml
+++ b/app-config.yaml
@@ -190,6 +190,7 @@ scaffolder:
       token:
         $env: AZURE_TOKEN
 auth:
+  environment: development
   ### Providing an auth.session.secret will enable session support in the auth-backend
   # session:
   #   secret: custom session secret
diff --git a/packages/core/config.d.ts b/packages/core/config.d.ts
index 014e4ac934..a6f95ae71c 100644
--- a/packages/core/config.d.ts
+++ b/packages/core/config.d.ts
@@ -62,4 +62,17 @@ export interface Config {
       timezone: string;
     }[];
   };
+
+  /**
+   * Configuration that provides information on available authentication providers configured for app
+   */
+  auth?: {
+    /**
+     * The 'environment' attribute added as an optional parameter to have configurable environment value for `auth.providers`.
+     * default value: 'development'
+     * optional values: 'development' | 'production'
+     * @visibility frontend
+     */
+    environment?: string;
+  };
 }
diff --git a/packages/core/src/api-wrappers/defaultApis.ts b/packages/core/src/api-wrappers/defaultApis.ts
index 1f18f54d2a..d044b50b7a 100644
--- a/packages/core/src/api-wrappers/defaultApis.ts
+++ b/packages/core/src/api-wrappers/defaultApis.ts
@@ -78,30 +78,42 @@ export const defaultApis = [
     deps: {
       discoveryApi: discoveryApiRef,
       oauthRequestApi: oauthRequestApiRef,
+      configApi: configApiRef,
     },
-    factory: ({ discoveryApi, oauthRequestApi }) =>
-      GoogleAuth.create({ discoveryApi, oauthRequestApi }),
+    factory: ({ discoveryApi, oauthRequestApi, configApi }) =>
+      GoogleAuth.create({
+        discoveryApi,
+        oauthRequestApi,
+        environment: configApi.getOptionalString('auth.environment'),
+      }),
   }),
   createApiFactory({
     api: microsoftAuthApiRef,
     deps: {
       discoveryApi: discoveryApiRef,
       oauthRequestApi: oauthRequestApiRef,
+      configApi: configApiRef,
     },
-    factory: ({ discoveryApi, oauthRequestApi }) =>
-      MicrosoftAuth.create({ discoveryApi, oauthRequestApi }),
+    factory: ({ discoveryApi, oauthRequestApi, configApi }) =>
+      MicrosoftAuth.create({
+        discoveryApi,
+        oauthRequestApi,
+        environment: configApi.getOptionalString('auth.environment'),
+      }),
   }),
   createApiFactory({
     api: githubAuthApiRef,
     deps: {
       discoveryApi: discoveryApiRef,
       oauthRequestApi: oauthRequestApiRef,
+      configApi: configApiRef,
     },
-    factory: ({ discoveryApi, oauthRequestApi }) =>
+    factory: ({ discoveryApi, oauthRequestApi, configApi }) =>
       GithubAuth.create({
         discoveryApi,
         oauthRequestApi,
         defaultScopes: ['read:user'],
+        environment: configApi.getOptionalString('auth.environment'),
       }),
   }),
   createApiFactory({
@@ -109,60 +121,91 @@ export const defaultApis = [
     deps: {
       discoveryApi: discoveryApiRef,
       oauthRequestApi: oauthRequestApiRef,
+      configApi: configApiRef,
     },
-    factory: ({ discoveryApi, oauthRequestApi }) =>
-      OktaAuth.create({ discoveryApi, oauthRequestApi }),
+    factory: ({ discoveryApi, oauthRequestApi, configApi }) =>
+      OktaAuth.create({
+        discoveryApi,
+        oauthRequestApi,
+        environment: configApi.getOptionalString('auth.environment'),
+      }),
   }),
   createApiFactory({
     api: gitlabAuthApiRef,
     deps: {
       discoveryApi: discoveryApiRef,
       oauthRequestApi: oauthRequestApiRef,
+      configApi: configApiRef,
     },
-    factory: ({ discoveryApi, oauthRequestApi }) =>
-      GitlabAuth.create({ discoveryApi, oauthRequestApi }),
+    factory: ({ discoveryApi, oauthRequestApi, configApi }) =>
+      GitlabAuth.create({
+        discoveryApi,
+        oauthRequestApi,
+        environment: configApi.getOptionalString('auth.environment'),
+      }),
   }),
   createApiFactory({
     api: auth0AuthApiRef,
     deps: {
       discoveryApi: discoveryApiRef,
       oauthRequestApi: oauthRequestApiRef,
+      configApi: configApiRef,
     },
-    factory: ({ discoveryApi, oauthRequestApi }) =>
-      Auth0Auth.create({ discoveryApi, oauthRequestApi }),
+    factory: ({ discoveryApi, oauthRequestApi, configApi }) =>
+      Auth0Auth.create({
+        discoveryApi,
+        oauthRequestApi,
+        environment: configApi.getOptionalString('auth.environment'),
+      }),
   }),
   createApiFactory({
     api: oauth2ApiRef,
     deps: {
       discoveryApi: discoveryApiRef,
       oauthRequestApi: oauthRequestApiRef,
+      configApi: configApiRef,
     },
-    factory: ({ discoveryApi, oauthRequestApi }) =>
-      OAuth2.create({ discoveryApi, oauthRequestApi }),
+    factory: ({ discoveryApi, oauthRequestApi, configApi }) =>
+      OAuth2.create({
+        discoveryApi,
+        oauthRequestApi,
+        environment: configApi.getOptionalString('auth.environment'),
+      }),
   }),
   createApiFactory({
     api: samlAuthApiRef,
     deps: {
       discoveryApi: discoveryApiRef,
+      configApi: configApiRef,
     },
-    factory: ({ discoveryApi }) => SamlAuth.create({ discoveryApi }),
+    factory: ({ discoveryApi, configApi }) =>
+      SamlAuth.create({
+        discoveryApi,
+        environment: configApi.getOptionalString('auth.environment'),
+      }),
   }),
   createApiFactory({
     api: oneloginAuthApiRef,
     deps: {
       discoveryApi: discoveryApiRef,
       oauthRequestApi: oauthRequestApiRef,
+      configApi: configApiRef,
     },
-    factory: ({ discoveryApi, oauthRequestApi }) =>
-      OneLoginAuth.create({ discoveryApi, oauthRequestApi }),
+    factory: ({ discoveryApi, oauthRequestApi, configApi }) =>
+      OneLoginAuth.create({
+        discoveryApi,
+        oauthRequestApi,
+        environment: configApi.getOptionalString('auth.environment'),
+      }),
   }),
   createApiFactory({
     api: oidcAuthApiRef,
     deps: {
       discoveryApi: discoveryApiRef,
       oauthRequestApi: oauthRequestApiRef,
+      configApi: configApiRef,
     },
-    factory: ({ discoveryApi, oauthRequestApi }) =>
+    factory: ({ discoveryApi, oauthRequestApi, configApi }) =>
       OAuth2.create({
         discoveryApi,
         oauthRequestApi,
@@ -171,6 +214,7 @@ export const defaultApis = [
           title: 'Your Identity Provider',
           icon: OAuth2Icon,
         },
+        environment: configApi.getOptionalString('auth.environment'),
       }),
   }),
 ];