diff --git a/invokeai/app/services/config/invokeai_config.py b/invokeai/app/services/config/invokeai_config.py
index 65bf9b9eba..51ccf45704 100644
--- a/invokeai/app/services/config/invokeai_config.py
+++ b/invokeai/app/services/config/invokeai_config.py
@@ -277,6 +277,7 @@ class InvokeAIAppConfig(InvokeAISettings):
 
     class Config:
         validate_assignment = True
+        env_prefix = "INVOKEAI"
 
     def parse_args(self, argv: Optional[list[str]] = None, conf: Optional[DictConfig] = None, clobber=False):
         """
diff --git a/tests/test_config.py b/tests/test_config.py
index a950a9c06f..2b2492f6a6 100644
--- a/tests/test_config.py
+++ b/tests/test_config.py
@@ -121,6 +121,12 @@ def test_env_override(patch_rootdir):
     conf.parse_args(conf=init1, argv=[])
     assert conf.max_cache_size == 20
 
+    # make sure that prefix is respected
+    del os.environ["INVOKEAI_always_use_cpu"]
+    os.environ["always_use_cpu"] = "True"
+    conf.parse_args(conf=init1, argv=[])
+    assert conf.always_use_cpu is False
+
 
 def test_root_resists_cwd(patch_rootdir):
     from invokeai.app.services.config import InvokeAIAppConfig