diff --git a/x-pack/solutions/observability/plugins/apm/common/utils/environment_query.test.ts b/x-pack/solutions/observability/plugins/apm/common/utils/environment_query.test.ts
index b996368096702..f127e845ac2b4 100644
--- a/x-pack/solutions/observability/plugins/apm/common/utils/environment_query.test.ts
+++ b/x-pack/solutions/observability/plugins/apm/common/utils/environment_query.test.ts
@@ -14,7 +14,23 @@ describe('environmentQuery', () => {
     it('returns ENVIRONMENT_NOT_DEFINED', () => {
       expect(environmentQuery('')).toEqual([
         {
-          term: { [SERVICE_ENVIRONMENT]: ENVIRONMENT_NOT_DEFINED.value },
+          bool: {
+            should: [
+              {
+                term: { [SERVICE_ENVIRONMENT]: ENVIRONMENT_NOT_DEFINED.value },
+              },
+              {
+                bool: {
+                  must_not: [
+                    {
+                      exists: { field: SERVICE_ENVIRONMENT },
+                    },
+                  ],
+                },
+              },
+            ],
+            minimum_should_match: 1,
+          },
         },
       ]);
     });
@@ -35,7 +51,23 @@ describe('environmentQuery', () => {
   it('creates a query for missing service environments', () => {
     expect(environmentQuery(ENVIRONMENT_NOT_DEFINED.value)).toEqual([
       {
-        term: { [SERVICE_ENVIRONMENT]: ENVIRONMENT_NOT_DEFINED.value },
+        bool: {
+          should: [
+            {
+              term: { [SERVICE_ENVIRONMENT]: ENVIRONMENT_NOT_DEFINED.value },
+            },
+            {
+              bool: {
+                must_not: [
+                  {
+                    exists: { field: SERVICE_ENVIRONMENT },
+                  },
+                ],
+              },
+            },
+          ],
+          minimum_should_match: 1,
+        },
       },
     ]);
   });
diff --git a/x-pack/solutions/observability/plugins/apm/common/utils/environment_query.ts b/x-pack/solutions/observability/plugins/apm/common/utils/environment_query.ts
index 7859c64a8b306..638999dc371cb 100644
--- a/x-pack/solutions/observability/plugins/apm/common/utils/environment_query.ts
+++ b/x-pack/solutions/observability/plugins/apm/common/utils/environment_query.ts
@@ -19,22 +19,27 @@ export function environmentQuery(
   }
 
   if (!environment || environment === ENVIRONMENT_NOT_DEFINED.value) {
-    return [{ term: { [field]: ENVIRONMENT_NOT_DEFINED.value } }];
-  }
-
-  return [{ term: { [field]: environment } }];
-}
-
-export function environmentQueryAnnotations(
-  environment: string | undefined,
-  field: string = SERVICE_ENVIRONMENT
-): QueryDslQueryContainer[] {
-  if (!environment || environment === ENVIRONMENT_ALL.value) {
-    return [];
-  }
-
-  if (environment === ENVIRONMENT_NOT_DEFINED.value) {
-    return [{ bool: { must_not: { exists: { field } } } }];
+    return [
+      {
+        bool: {
+          should: [
+            {
+              term: { [field]: ENVIRONMENT_NOT_DEFINED.value },
+            },
+            {
+              bool: {
+                must_not: [
+                  {
+                    exists: { field },
+                  },
+                ],
+              },
+            },
+          ],
+          minimum_should_match: 1,
+        },
+      },
+    ];
   }
 
   return [{ term: { [field]: environment } }];
diff --git a/x-pack/solutions/observability/plugins/apm/server/routes/services/annotations/get_derived_service_annotations.ts b/x-pack/solutions/observability/plugins/apm/server/routes/services/annotations/get_derived_service_annotations.ts
index 5fba0d1a9705a..73f53fd650782 100644
--- a/x-pack/solutions/observability/plugins/apm/server/routes/services/annotations/get_derived_service_annotations.ts
+++ b/x-pack/solutions/observability/plugins/apm/server/routes/services/annotations/get_derived_service_annotations.ts
@@ -14,7 +14,7 @@ import { isFiniteNumber } from '../../../../common/utils/is_finite_number';
 import type { Annotation } from '../../../../common/annotations';
 import { AnnotationType } from '../../../../common/annotations';
 import { AT_TIMESTAMP, SERVICE_NAME, SERVICE_VERSION } from '../../../../common/es_fields/apm';
-import { environmentQueryAnnotations } from '../../../../common/utils/environment_query';
+import { environmentQuery } from '../../../../common/utils/environment_query';
 import {
   getBackwardCompatibleDocumentTypeFilter,
   getProcessorEventForTransactions,
@@ -39,7 +39,7 @@ export async function getDerivedServiceAnnotations({
   const filter: ESFilter[] = [
     { term: { [SERVICE_NAME]: serviceName } },
     ...getBackwardCompatibleDocumentTypeFilter(searchAggregatedTransactions),
-    ...environmentQueryAnnotations(environment),
+    ...environmentQuery(environment),
   ];
 
   const versions =
diff --git a/x-pack/solutions/observability/plugins/apm/server/routes/services/annotations/get_stored_annotations.ts b/x-pack/solutions/observability/plugins/apm/server/routes/services/annotations/get_stored_annotations.ts
index fdd6b8b7887a1..8a74142b2b7ce 100644
--- a/x-pack/solutions/observability/plugins/apm/server/routes/services/annotations/get_stored_annotations.ts
+++ b/x-pack/solutions/observability/plugins/apm/server/routes/services/annotations/get_stored_annotations.ts
@@ -15,7 +15,7 @@ import {
 import type { ESSearchResponse } from '@kbn/es-types';
 import type { Annotation as ESAnnotation } from '@kbn/observability-plugin/common/annotations';
 import type { ScopedAnnotationsClient } from '@kbn/observability-plugin/server';
-import { environmentQueryAnnotations } from '../../../../common/utils/environment_query';
+import { environmentQuery } from '../../../../common/utils/environment_query';
 import type { Annotation } from '../../../../common/annotations';
 import { AnnotationType } from '../../../../common/annotations';
 import { SERVICE_NAME } from '../../../../common/es_fields/apm';
@@ -48,7 +48,7 @@ export function getStoredAnnotations({
             { term: { tags: 'apm' } },
             { term: { [SERVICE_NAME]: serviceName } },
             ...rangeQuery(start, end),
-            ...environmentQueryAnnotations(environment),
+            ...environmentQuery(environment),
           ],
         },
       },