diff --git a/docs/environment.md b/docs/environment.md
index 0778dd6d..ac1b583f 100644
--- a/docs/environment.md
+++ b/docs/environment.md
@@ -75,6 +75,7 @@ An empty default means the variable is unset and its value is determined automat
 | Variable | Default | Description |
 |---|---|---|
 | `DISPLAY` | `web` | Display backend, such as `web`, `vnc`, `disabled`, or `none`. |
+| `LOSSY` | `N` | Enables lossy VNC compression to reduce bandwidth usage. |
 | `VGA` | `virtio` | QEMU video adapter model. |
 | `WIDTH` | `1920` | Display width configured in Windows. |
 | `HEIGHT` | `1080` | Display height configured in Windows. |