diff --git a/packages/hoppscotch-app/helpers/editor/extensions/environmentTooltip.ts b/packages/hoppscotch-app/helpers/editor/extensions/environmentTooltip.ts
index 6d1a672d..1e27a4ea 100644
--- a/packages/hoppscotch-app/helpers/editor/extensions/environmentTooltip.ts
+++ b/packages/hoppscotch-app/helpers/editor/extensions/environmentTooltip.ts
@@ -1,14 +1,6 @@
 import { Extension } from "@codemirror/state"
 import { hoverTooltip } from "@codemirror/tooltip"
-import {
-  Decoration,
-  EditorView,
-  MatchDecorator,
-  PluginField,
-  ViewPlugin,
-  ViewUpdate,
-  WidgetType,
-} from "@codemirror/view"
+import { Decoration, MatchDecorator, ViewPlugin } from "@codemirror/view"
 import { useReadonlyStream } from "~/helpers/utils/composables"
 import { aggregateEnvs$ } from "~/newstore/environments"
 
@@ -64,35 +56,36 @@ function getEnvValue(value: string) {
   return "not found"
 }
 
-const environmentDecorator = new MatchDecorator({
-  // eslint-disable-next-line prefer-regex-literals
-  regexp: new RegExp(/(<<\w+>>)/g),
-  decoration: () =>
-    Decoration.replace({
-      widget: new (class extends WidgetType {
-        toDOM(_view: EditorView) {
-          const element = document.createElement("span")
-          element.textContent = "view"
-          return element
-        }
-      })(),
-      inclusive: false,
-    }),
+function checkEnv(env: string) {
+  const envHighlight =
+    "cursor-help transition rounded px-1 focus:outline-none mx-0.5"
+  const envFound = "bg-accentDark text-accentContrast hover:bg-accent"
+  const envNotFound = "bg-red-400 text-red-50 hover:bg-red-600"
+  const aggregateEnvs = useReadonlyStream(aggregateEnvs$, null)
+  const className =
+    aggregateEnvs.value.find((k: { key: string }) => k.key === env.slice(2, -2))
+      ?.value === undefined
+      ? envNotFound
+      : envFound
+  return Decoration.mark({
+    class: `${envHighlight} ${className}`,
+  })
+}
+
+const decorator = new MatchDecorator({
+  regexp: /(<<\w+>>)/g,
+  decoration: (m) => checkEnv(m[0]),
 })
 
 export const environmentHighlightStyle = ViewPlugin.define(
-  (view: EditorView) => ({
-    decorations: environmentDecorator.createDeco(view),
-    update(_update: ViewUpdate) {
-      this.decorations = environmentDecorator.updateDeco(
-        _update,
-        this.decorations
-      )
+  (view) => ({
+    decorations: decorator.createDeco(view),
+    update(u) {
+      this.decorations = decorator.updateDeco(u, this.decorations)
     },
   }),
   {
     decorations: (v) => v.decorations,
-    provide: PluginField.atomicRanges.from((v) => v.decorations),
   }
 )
 
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 9c56bdf6..3d4710a3 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -60,6 +60,7 @@ importers:
       '@codemirror/search': ^0.19.4
       '@codemirror/state': ^0.19.6
       '@codemirror/text': ^0.19.5
+      '@codemirror/tooltip': ^0.19.10
       '@codemirror/view': ^0.19.26
       '@graphql-codegen/add': ^3.1.0
       '@graphql-codegen/cli': 2.3.0
@@ -180,6 +181,7 @@ importers:
       '@codemirror/search': 0.19.4
       '@codemirror/state': 0.19.6
       '@codemirror/text': 0.19.5
+      '@codemirror/tooltip': 0.19.10
       '@codemirror/view': 0.19.26
       '@hoppscotch/codemirror-lang-graphql': link:../codemirror-lang-graphql
       '@hoppscotch/data': link:../hoppscotch-data
@@ -1746,7 +1748,7 @@ packages:
       '@codemirror/panel': 0.19.0
       '@codemirror/rangeset': 0.19.2
       '@codemirror/state': 0.19.6
-      '@codemirror/tooltip': 0.19.8
+      '@codemirror/tooltip': 0.19.10
       '@codemirror/view': 0.19.26
       crelt: 1.0.5
     dev: false
@@ -1815,13 +1817,6 @@ packages:
       '@codemirror/view': 0.19.26
     dev: false
 
-  /@codemirror/tooltip/0.19.8:
-    resolution: {integrity: sha512-Xg1H50utH3z1rmyzk5l/dfE0Lko+5pkxzaVlVzAbcqHlDsG9vARDkgRX+fEEpWg/rrvR83GVQhdKwl+wNxjOAg==}
-    dependencies:
-      '@codemirror/state': 0.19.6
-      '@codemirror/view': 0.19.26
-    dev: false
-
   /@codemirror/view/0.19.26:
     resolution: {integrity: sha512-7QfXtFLDqXY2TfdxPCQ/NvXjINGaqXQ6SAHKQmxZ+jDcTCWmhFcxaAkrDneqcfGmtp72tUPOXG9PiwCbRWgRLw==}
     dependencies:
@@ -3506,11 +3501,11 @@ packages:
       ufo: 0.7.9
     dev: false
 
-  /@nuxt/kit-edge/3.0.0-27307420.6a25d3e:
-    resolution: {integrity: sha512-JieTRigkV52VEQy+oqa6OqR/qOuL9ZmoaH9fDHNwHJXN7hLmil4HbRQ9502G7ura7hkHeAhjZTthXdQDKx1Q5Q==}
+  /@nuxt/kit-edge/3.0.0-27319101.3e82f0f:
+    resolution: {integrity: sha512-WASRt4RJp1Zdrm9AbW+diEVss6qv89cCuPbbqnqdmZMQPYepfXfB75dB/GiULeoy5sIokXJLNz7WqSCSL0INjw==}
     engines: {node: ^14.16.0 || ^16.11.0 || ^17.0.0}
     dependencies:
-      '@nuxt/schema': /@nuxt/schema-edge/3.0.0-27307420.6a25d3e
+      '@nuxt/schema': /@nuxt/schema-edge/3.0.0-27319101.3e82f0f
       consola: 2.15.3
       defu: 5.0.0
       dotenv: 10.0.0
@@ -3531,7 +3526,7 @@ packages:
   /@nuxt/kit/0.8.1-edge:
     resolution: {integrity: sha512-7kU+mYxRy3w9UohFK/rfrPkKXM9A4LWsTqpFN3MH7mxohy98SFBkf87B6nqE6ulXmztInK+MptS0Lr+VQa0E6w==}
     dependencies:
-      '@nuxt/kit-edge': 3.0.0-27307420.6a25d3e
+      '@nuxt/kit-edge': 3.0.0-27319101.3e82f0f
     dev: true
 
   /@nuxt/loading-screen/2.0.4:
@@ -3554,8 +3549,8 @@ packages:
       node-fetch: 2.6.6
     dev: false
 
-  /@nuxt/schema-edge/3.0.0-27307420.6a25d3e:
-    resolution: {integrity: sha512-QB6zMvxMQ+H5kwqd/6vZO7UAxGLIMZGV5zEc9rlYIyoilNnMO3opBJWuaUaokDLW7JpA1bGOfakLWWg8e8LGgQ==}
+  /@nuxt/schema-edge/3.0.0-27319101.3e82f0f:
+    resolution: {integrity: sha512-D5ekvoG6KV85Ko40+8j4jUtv8JifgeXoD44gY1b/dOZu++UkwH7COr+zU80UCa3hTaIcKFwQ0yRg7CTl1susTA==}
     engines: {node: ^14.16.0 || ^16.11.0 || ^17.0.0}
     dependencies:
       create-require: 1.1.1