Ellerbach · Ellerbach · Feb 17, 2026 · Feb 17, 2026
diff --git a/.env.example b/.env.example
@@ -23,6 +23,11 @@ STORAGE_KEY=your-storage-key
 STORAGE_CONTAINER=your-container
 STORAGE_FOLDER=your-folder
 
+# ── Azure OpenAI (for EmbeddingSkillNotebook & embedding skills) ─────
+AZURE_OPENAI_ENDPOINT=https://your-resource.openai.azure.com
+AZURE_OPENAI_API_KEY=your-azure-openai-api-key
+AZURE_OPENAI_DEPLOYMENT=text-embedding-3-small
+
 # Entra ID / Azure AD bearer token (for entra-id-auth-requests.http)
 # Obtain via: az account get-access-token --resource https://search.azure.com --query accessToken -o tsv
 ENTRA_TOKEN=
diff --git a/CHANGELOG.md b/CHANGELOG.md
@@ -7,6 +7,10 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Added
 
+- **Embedding notebook: `.env`-based configuration**: Azure OpenAI credentials (`AZURE_OPENAI_ENDPOINT`, `AZURE_OPENAI_API_KEY`, `AZURE_OPENAI_DEPLOYMENT`) are now loaded from the workspace root `.env` file via `python-dotenv` instead of being hardcoded in the notebook. Updated `.env.example`, `requirements.txt`, and README accordingly.
+
+### Added
+
 - **README: pre-built Docker image instructions**: Updated the README to document how to pull and run the pre-built image from `ghcr.io` (with `docker run` and `docker-compose` examples) and added a tag reference table.
 - Cleaned Notebook from previous run.
 

diff --git a/samples/AzureSearchNotebook/azure_search_demo.ipynb b/samples/AzureSearchNotebook/azure_search_demo.ipynb
@@ -1071,32 +1071,32 @@
     "# Uncomment to delete all resources created in this notebook\n",
     "\n",
     "# Delete indexer\n",
-    "# try:\n",
-    "#     indexer_client.delete_indexer(INDEXER_NAME)\n",
-    "#     print(f\"🗑️ Deleted indexer '{INDEXER_NAME}'\")\n",
-    "# except Exception as e:\n",
-    "#     print(f\"⚠️ Could not delete indexer: {e}\")\n",
+    "try:\n",
+    "    indexer_client.delete_indexer(INDEXER_NAME)\n",
+    "    print(f\"🗑️ Deleted indexer '{INDEXER_NAME}'\")\n",
+    "except Exception as e:\n",
+    "    print(f\"⚠️ Could not delete indexer: {e}\")\n",
     "\n",
     "# Delete skillset\n",
-    "# try:\n",
-    "#     indexer_client.delete_skillset(SKILLSET_NAME)\n",
-    "#     print(f\"🗑️ Deleted skillset '{SKILLSET_NAME}'\")\n",
-    "# except Exception as e:\n",
-    "#     print(f\"⚠️ Could not delete skillset: {e}\")\n",
+    "try:\n",
+    "    indexer_client.delete_skillset(SKILLSET_NAME)\n",
+    "    print(f\"🗑️ Deleted skillset '{SKILLSET_NAME}'\")\n",
+    "except Exception as e:\n",
+    "    print(f\"⚠️ Could not delete skillset: {e}\")\n",
     "\n",
     "# Delete data source\n",
-    "# try:\n",
-    "#     indexer_client.delete_data_source_connection(DATA_SOURCE_NAME)\n",
-    "#     print(f\"🗑️ Deleted data source '{DATA_SOURCE_NAME}'\")\n",
-    "# except Exception as e:\n",
-    "#     print(f\"⚠️ Could not delete data source: {e}\")\n",
+    "try:\n",
+    "    indexer_client.delete_data_source_connection(DATA_SOURCE_NAME)\n",
+    "    print(f\"🗑️ Deleted data source '{DATA_SOURCE_NAME}'\")\n",
+    "except Exception as e:\n",
+    "    print(f\"⚠️ Could not delete data source: {e}\")\n",
     "\n",
     "# Delete index\n",
-    "# try:\n",
-    "#     index_client.delete_index(INDEX_NAME)\n",
-    "#     print(f\"🗑️ Deleted index '{INDEX_NAME}'\")\n",
-    "# except Exception as e:\n",
-    "#     print(f\"⚠️ Could not delete index: {e}\")\n",
+    "try:\n",
+    "    index_client.delete_index(INDEX_NAME)\n",
+    "    print(f\"🗑️ Deleted index '{INDEX_NAME}'\")\n",
+    "except Exception as e:\n",
+    "    print(f\"⚠️ Could not delete index: {e}\")\n",
     "\n",
     "print(\"💡 Uncomment the code above to clean up resources\")"
    ]

diff --git a/samples/EmbeddingSkillNotebook/README.md b/samples/EmbeddingSkillNotebook/README.md
@@ -24,29 +24,33 @@ The data is located at `../IndexerTestNotebook/data/`
 
 ## Prerequisites
 
-### 1. Start the Azure AI Search Simulator
+### 1. Configure Azure OpenAI credentials
+
+Copy the workspace root `.env.example` to `.env` and fill in your Azure OpenAI values:
 
 ```bash
-cd src/AzureAISearchSimulator.Api
-dotnet run --urls "https://localhost:7250"
+cp .env.example .env
 ```
 
-> ⚠️ **Important**: The Azure SDK requires HTTPS. Make sure to use the `--urls` parameter.
+Then edit `.env` and set:
 
-### 2. Configure Azure OpenAI
+```dotenv
+AZURE_OPENAI_ENDPOINT=https://your-resource.openai.azure.com
+AZURE_OPENAI_API_KEY=your-api-key
+AZURE_OPENAI_DEPLOYMENT=text-embedding-3-small
+```
+
+> The notebook loads these variables automatically via `python-dotenv`. The `.env` file is gitignored.
 
-Update `src/AzureAISearchSimulator.Api/appsettings.json` with your Azure OpenAI credentials:
+### 2. Start the Azure AI Search Simulator
 
-```json
-{
-  "AzureOpenAI": {
-    "Endpoint": "https://your-resource.openai.azure.com",
-    "ApiKey": "your-api-key",
-    "EmbeddingDeployment": "text-embedding-ada-002"
-  }
-}
+```bash
+cd src/AzureAISearchSimulator.Api
+dotnet run --urls "https://localhost:7250"
 ```
 
+> ⚠️ **Important**: The Azure SDK requires HTTPS. Make sure to use the `--urls` parameter.
+
 ### 3. Install Python Dependencies
 
 ```bash
@@ -56,7 +60,7 @@ pip install -r requirements.txt
 Or install manually:
 
 ```bash
-pip install azure-search-documents requests pandas numpy jupyter ipykernel
+pip install azure-search-documents requests pandas numpy python-dotenv jupyter ipykernel
 ```
 
 ## Running the Notebook
@@ -69,13 +73,7 @@ pip install azure-search-documents requests pandas numpy jupyter ipykernel
 
 2. Open `embedding_skill_demo.ipynb`
 
-3. Update the Azure OpenAI configuration in cell 2:
-
-   ```python
-   AZURE_OPENAI_ENDPOINT = "https://your-resource.openai.azure.com"
-   AZURE_OPENAI_DEPLOYMENT = "text-embedding-ada-002"
-   AZURE_OPENAI_API_KEY = "YOUR-AZURE-OPENAI-API-KEY-HERE"
-   ```
+3. Make sure your `.env` file is configured (see Prerequisites above)
 
 4. Run all cells sequentially
 

diff --git a/samples/EmbeddingSkillNotebook/embedding_skill_demo.ipynb b/samples/EmbeddingSkillNotebook/embedding_skill_demo.ipynb
@@ -19,21 +19,23 @@
     "\n",
     "## Prerequisites\n",
     "\n",
-    "1. **Start the Azure AI Search Simulator with HTTPS**:\n",
+    "1. **Configure your `.env` file** in the workspace root:\n",
+    "\n",
     "   ```bash\n",
-    "   cd src/AzureAISearchSimulator.Api\n",
-    "   dotnet run --urls \"https://localhost:7250\"\n",
+    "   cp .env.example .env\n",
     "   ```\n",
+    "   Then fill in the Azure OpenAI variables:\n",
+    "   ```dotenv\n",
+    "   AZURE_OPENAI_ENDPOINT=https://your-resource.openai.azure.com\n",
+    "   AZURE_OPENAI_API_KEY=your-api-key\n",
+    "   AZURE_OPENAI_DEPLOYMENT=text-embedding-3-small\n",
+    "   ```\n",
+    "\n",
+    "2. **Start the Azure AI Search Simulator with HTTPS**:\n",
     "\n",
-    "2. **Configure Azure OpenAI** in `appsettings.json`:\n",
-    "   ```json\n",
-    "   {\n",
-    "     \"AzureOpenAI\": {\n",
-    "       \"Endpoint\": \"https://your-resource.openai.azure.com\",\n",
-    "       \"ApiKey\": \"your-api-key\",\n",
-    "       \"EmbeddingDeployment\": \"text-embedding-ada-002\"\n",
-    "     }\n",
-    "   }\n",
+    "   ```bash\n",
+    "   cd src/AzureAISearchSimulator.Api\n",
+    "   dotnet run --urls \"https://localhost:7250\"\n",
     "   ```\n",
     "\n",
     "3. **Sample data files** are located in `../IndexerTestNotebook/data`\n",
@@ -57,14 +59,15 @@
    "outputs": [],
    "source": [
     "# Install required packages (uncomment if needed)\n",
-    "# !pip install azure-search-documents requests pandas numpy\n",
+    "# !pip install azure-search-documents requests pandas numpy python-dotenv\n",
     "\n",
     "import os\n",
     "import json\n",
     "import time\n",
     "import urllib3\n",
     "import numpy as np\n",
     "from pathlib import Path\n",
+    "from dotenv import load_dotenv\n",
     "\n",
     "# Azure AI Search SDK imports\n",
     "from azure.core.credentials import AzureKeyCredential\n",
@@ -98,6 +101,15 @@
     "# Suppress SSL warnings for local development\n",
     "urllib3.disable_warnings(urllib3.exceptions.InsecureRequestWarning)\n",
     "\n",
+    "# Load environment variables from workspace root .env file\n",
+    "env_path = Path(\"../../.env\")\n",
+    "if env_path.exists():\n",
+    "    load_dotenv(dotenv_path=env_path)\n",
+    "    print(f\"✅ Loaded .env from {env_path.resolve()}\")\n",
+    "else:\n",
+    "    print(f\"⚠️ No .env file found at {env_path.resolve()}\")\n",
+    "    print(\"   Copy .env.example to .env in the workspace root and fill in your values.\")\n",
+    "\n",
     "print(\"✅ Libraries imported successfully!\")"
    ]
   },
@@ -119,18 +131,19 @@
    "outputs": [],
    "source": [
     "# Configuration for Azure AI Search Simulator\n",
-    "SEARCH_ENDPOINT = \"https://localhost:7250\"\n",
-    "ADMIN_API_KEY = \"admin-key-12345\"\n",
+    "# Values are loaded from the workspace root .env file (see .env.example)\n",
+    "SEARCH_ENDPOINT = os.getenv(\"BASE_URL\", \"https://localhost:7250\")\n",
+    "ADMIN_API_KEY = os.getenv(\"ADMIN_KEY\", \"admin-key-12345\")\n",
     "\n",
-    "# Azure OpenAI Configuration (update with your values)\n",
-    "# The simulator will use these when calling Azure OpenAI for embeddings\n",
-    "AZURE_OPENAI_ENDPOINT = \"https://your-open-ai-url.cognitiveservices.azure.com\"  # Update this\n",
-    "AZURE_OPENAI_DEPLOYMENT = \"text-embedding-3-small\"  # Or your deployment name\n",
+    "# Azure OpenAI Configuration (from .env)\n",
+    "AZURE_OPENAI_ENDPOINT = os.getenv(\"AZURE_OPENAI_ENDPOINT\", \"\")\n",
+    "AZURE_OPENAI_DEPLOYMENT = os.getenv(\"AZURE_OPENAI_DEPLOYMENT\", \"text-embedding-3-small\")\n",
+    "AZURE_OPENAI_API_KEY = os.getenv(\"AZURE_OPENAI_API_KEY\", \"\")\n",
     "\n",
-    "# ⚠️ IMPORTANT: Set your Azure OpenAI API key here\n",
-    "# Get it from: Azure Portal → Your Azure OpenAI/AI Services resource → Keys and Endpoint\n",
-    "# AZURE_OPENAI_API_KEY = \"YOUR-AZURE-OPENAI-API-KEY-HERE\"  # <-- UPDATE THIS!\n",
-    "AZURE_OPENAI_API_KEY = \"YOUR-AZURE-OPENAI-API-KEY-HERE\"  # <-- UPDATE THIS!\n",
+    "if not AZURE_OPENAI_ENDPOINT or not AZURE_OPENAI_API_KEY:\n",
+    "    print(\"⚠️ WARNING: AZURE_OPENAI_ENDPOINT and/or AZURE_OPENAI_API_KEY are not set!\")\n",
+    "    print(\"   Copy .env.example to .env in the workspace root and fill in your Azure OpenAI values.\")\n",
+    "    print(\"   Required variables: AZURE_OPENAI_ENDPOINT, AZURE_OPENAI_API_KEY\")\n",
     "\n",
     "# Resource names for this demo\n",
     "INDEX_NAME = \"embedding-demo-docs\"\n",
@@ -171,6 +184,8 @@
     ")\n",
     "\n",
     "print(f\"✅ Connected to Azure AI Search Simulator at {SEARCH_ENDPOINT}\")\n",
+    "print(f\"🔑 Azure OpenAI endpoint: {AZURE_OPENAI_ENDPOINT}\")\n",
+    "print(f\"🧠 Embedding deployment: {AZURE_OPENAI_DEPLOYMENT}\")\n",
     "print(f\"📁 Data path: {DATA_PATH}\")\n",
     "\n",
     "# List sample data files\n",
@@ -362,7 +377,7 @@
     "\n",
     "Configure a skillset that uses Azure OpenAI to generate embeddings for the document content.\n",
     "\n",
-    "> **Note**: The simulator forwards embedding requests to Azure OpenAI. Make sure your Azure OpenAI credentials are configured in `appsettings.json`."
+    "> **Note**: The Azure OpenAI credentials are loaded from the workspace root `.env` file. Make sure `AZURE_OPENAI_ENDPOINT`, `AZURE_OPENAI_API_KEY`, and `AZURE_OPENAI_DEPLOYMENT` are set."
    ]
   },
   {
@@ -376,9 +391,9 @@
     "# The Azure SDK doesn't have direct support for AzureOpenAIEmbeddingSkill,\n",
     "# so we'll use the REST API directly\n",
     "\n",
-    "if AZURE_OPENAI_API_KEY == \"YOUR-AZURE-OPENAI-API-KEY-HERE\":\n",
-    "    print(\"⚠️ WARNING: You need to set AZURE_OPENAI_API_KEY above!\")\n",
-    "    print(\"   Get your key from Azure Portal → Your Azure OpenAI resource → Keys and Endpoint\")\n",
+    "if not AZURE_OPENAI_API_KEY or not AZURE_OPENAI_ENDPOINT:\n",
+    "    print(\"⚠️ WARNING: Azure OpenAI credentials are not configured in .env!\")\n",
+    "    print(\"   Set AZURE_OPENAI_ENDPOINT and AZURE_OPENAI_API_KEY in the workspace root .env file.\")\n",
     "\n",
     "skillset_payload = {\n",
     "    \"name\": SKILLSET_NAME,\n",
@@ -391,7 +406,7 @@
     "            \"context\": \"/document\",\n",
     "            \"resourceUri\": AZURE_OPENAI_ENDPOINT,\n",
     "            \"deploymentId\": AZURE_OPENAI_DEPLOYMENT,\n",
-    "            \"apiKey\": AZURE_OPENAI_API_KEY,  # API key passed directly to skillset\n",
+    "            \"apiKey\": AZURE_OPENAI_API_KEY,  # API key loaded from .env\n",
     "            \"modelName\": \"text-embedding-3-small\",\n",
     "            \"inputs\": [\n",
     "                {\n",

diff --git a/samples/EmbeddingSkillNotebook/requirements.txt b/samples/EmbeddingSkillNotebook/requirements.txt
@@ -10,6 +10,9 @@ requests>=2.31.0
 pandas>=2.0.0
 numpy>=1.24.0
 
+# Environment variable loading
+python-dotenv>=1.0.0
+
 # Jupyter notebook support
 jupyter>=1.0.0
 ipykernel>=6.0.0