diff --git a/docs/features/software-templates/configuration.md b/docs/features/software-templates/configuration.md
index a692335ffe..bbf35557ce 100644
--- a/docs/features/software-templates/configuration.md
+++ b/docs/features/software-templates/configuration.md
@@ -48,6 +48,65 @@ add the `repoVisibility` key within a software template:
     repoVisibility: public # or 'internal' or 'private'
 ```
 
+### Default Environment
+
+The scaffolder supports a `defaultEnvironment` configuration that provides default parameters and secrets to all templates. This reduces template complexity and improves security by centralizing common values.
+
+```yaml
+scaffolder:
+  defaultEnvironment:
+    parameters:
+      region: eu-west-1
+      organizationName: acme-corp
+      defaultRegistry: registry.acme-corp.com
+    secrets:
+      AWS_ACCESS_KEY: ${AWS_ACCESS_KEY}
+      GITHUB_TOKEN: ${GITHUB_TOKEN}
+      DOCKER_REGISTRY_TOKEN: ${DOCKER_REGISTRY_TOKEN}
+```
+
+#### Default parameters
+
+Default parameters are accessible via `${{ environment.parameters.* }}` in templates. Default parameters are isolated in their own context to avoid naming conflicts.
+
+```yaml
+ parameters:
+    - title: Fill in some steps
+      required:
+        - organizationName
+      properties:
+        organizationName:
+          title: organizationName
+          type: string
+          description: Unique name of the organization
+          ui:autofocus: true
+          ui:options:
+            rows: 5
+
+  steps:
+    - id: deploy
+      name: Deploy Application
+      action: aws:deploy
+      input:
+        region: ${{ environment.parameters.region }}  # Resolves to defaultEnvironment.parameters.region
+        organization: ${{ parameters.organizationName }}  # Resolves to frontend input value
+        otherOrganization: ${{ environment.parameters.organizationName }}  # Resolves to defaultEnvironment.parameters.organizationName
+```
+
+#### Secrets
+
+Default secrets are resolved from environment variables and accessible via `${{ environment.secrets.* }}` in template actions. Secrets are only available during action execution, not in frontend forms.
+
+```yaml
+- id: deploy
+  name: Deploy with credentials
+  action: aws:deploy
+  input:
+    accessKey: ${{ environment.secrets.AWS_ACCESS_KEY }} # Resolves to defaultEnvironment.secrets.AWS_ACCESS_KEY
+```
+
+**Security Note:** Secrets are automatically masked in logs and are only available to backend actions, never exposed to the frontend.
+
 ## Disabling Docker in Docker situation (Optional)
 
 Software templates use the `fetch:template` action by default, which requires no