diff --git a/README.md b/README.md
index e715cfa..ce9b439 100644
--- a/README.md
+++ b/README.md
@@ -134,3 +134,21 @@ Create a `.zed/settings.json` file in your project's root directory:
   }
 }
 ```
+
+## Sandboxed Environments
+
+If browser-based authentication is not available (e.g. in sandboxed environments), generate an API key with at least the `project:read` scope from your organization or project settings, then use it as a Bearer token:
+
+```json
+{
+  "mcpServers": {
+    "logfire": {
+      "type": "http",
+      "url": "https://logfire-us.pydantic.dev/mcp",
+      "headers": {
+        "Authorization": "Bearer <your-logfire-api-key>"
+      }
+    }
+  }
+}
+```
diff --git a/tests/README.md.jinja b/tests/README.md.jinja
index e715cfa..ce9b439 100644
--- a/tests/README.md.jinja
+++ b/tests/README.md.jinja
@@ -134,3 +134,21 @@ Create a `.zed/settings.json` file in your project's root directory:
   }
 }
 ```
+
+## Sandboxed Environments
+
+If browser-based authentication is not available (e.g. in sandboxed environments), generate an API key with at least the `project:read` scope from your organization or project settings, then use it as a Bearer token:
+
+```json
+{
+  "mcpServers": {
+    "logfire": {
+      "type": "http",
+      "url": "https://logfire-us.pydantic.dev/mcp",
+      "headers": {
+        "Authorization": "Bearer <your-logfire-api-key>"
+      }
+    }
+  }
+}
+```