diff --git a/docker-compose.yml b/docker-compose.yml
index e3701caa..572e592e 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -49,6 +49,8 @@ services:
       - KHOJ_DEBUG=False
       - KHOJ_ADMIN_EMAIL=username@example.com
       - KHOJ_ADMIN_PASSWORD=password
+      # Default URL of Terrarium, the Python sandbox used by Khoj to run code. Its container is specified above
+      - KHOJ_TERRARIUM_URL=http://host.docker.internal:8080
       # Uncomment line below to use with Ollama running on your local machine at localhost:11434.
       # Change URL to use with other OpenAI API compatible providers like VLLM, LMStudio etc.
       # - OPENAI_API_BASE=http://host.docker.internal:11434/v1/