diff --git a/src/lib/index.ts b/src/lib/index.ts
index 4c84dc85c..cbaa630fa 100644
--- a/src/lib/index.ts
+++ b/src/lib/index.ts
@@ -64,6 +64,8 @@ export type {
   OpenTelemetryConfig,
 } from "./types/observability.js";
 
+export { buildObservabilityConfigFromEnv } from "./utils/observabilityHelpers.js";
+
 import {
   initializeOpenTelemetry,
   shutdownOpenTelemetry,
diff --git a/src/lib/session/globalSessionState.ts b/src/lib/session/globalSessionState.ts
index 8874d186e..9a9453b6b 100644
--- a/src/lib/session/globalSessionState.ts
+++ b/src/lib/session/globalSessionState.ts
@@ -4,40 +4,7 @@ import type {
   ConversationMemoryConfig,
   NeurolinkOptions,
 } from "../types/conversation.js";
-import type { ObservabilityConfig } from "../types/observability.js";
-
-/**
- * Build observability config from environment variables
- * Used by CLI to configure NeuroLink instances
- */
-function buildObservabilityConfigFromEnv(): ObservabilityConfig | undefined {
-  const langfuseEnabled =
-    process.env.LANGFUSE_ENABLED?.trim().toLowerCase() === "true";
-  const publicKey = process.env.LANGFUSE_PUBLIC_KEY?.trim();
-  const secretKey = process.env.LANGFUSE_SECRET_KEY?.trim();
-
-  if (!langfuseEnabled || !publicKey || !secretKey) {
-    return undefined;
-  }
-
-  return {
-    langfuse: {
-      enabled: langfuseEnabled,
-      publicKey,
-      secretKey,
-      baseUrl:
-        process.env.LANGFUSE_BASE_URL?.trim() || "https://cloud.langfuse.com",
-      environment:
-        process.env.LANGFUSE_ENVIRONMENT?.trim() ||
-        process.env.PUBLIC_APP_ENVIRONMENT?.trim() ||
-        "dev",
-      release:
-        process.env.PUBLIC_APP_VERSION?.trim() ||
-        process.env.npm_package_version?.trim() ||
-        "v1.0.0",
-    },
-  };
-}
+import { buildObservabilityConfigFromEnv } from "../utils/observabilityHelpers.js";
 
 // Define a specific type for session variable values
 type SessionVariableValue = string | number | boolean;
diff --git a/src/lib/utils/observabilityHelpers.ts b/src/lib/utils/observabilityHelpers.ts
new file mode 100644
index 000000000..21295bcbe
--- /dev/null
+++ b/src/lib/utils/observabilityHelpers.ts
@@ -0,0 +1,58 @@
+/**
+ * Utility for building observability configs from environment variables
+ */
+
+import type { ObservabilityConfig } from "../types/observability.js";
+
+/**
+ * Build observability config from environment variables
+ *
+ * Reads Langfuse configuration from environment:
+ * - LANGFUSE_ENABLED: Enable/disable Langfuse (must be "true")
+ * - LANGFUSE_PUBLIC_KEY: Your Langfuse public key (required)
+ * - LANGFUSE_SECRET_KEY: Your Langfuse secret key (required)
+ * - LANGFUSE_BASE_URL: Langfuse server URL (default: https://cloud.langfuse.com)
+ * - LANGFUSE_ENVIRONMENT: Environment name (default: dev)
+ * - PUBLIC_APP_VERSION: Release/version identifier (default: v1.0.0)
+ *
+ * @returns ObservabilityConfig if all required env vars are set, undefined otherwise
+ *
+ * @example
+ * ```typescript
+ * import { NeuroLink, buildObservabilityConfigFromEnv } from '@juspay/neurolink';
+ *
+ * const neurolink = new NeuroLink({
+ *   observability: buildObservabilityConfigFromEnv()
+ * });
+ * ```
+ */
+export function buildObservabilityConfigFromEnv():
+  | ObservabilityConfig
+  | undefined {
+  const langfuseEnabled =
+    process.env.LANGFUSE_ENABLED?.trim().toLowerCase() === "true";
+  const publicKey = process.env.LANGFUSE_PUBLIC_KEY?.trim();
+  const secretKey = process.env.LANGFUSE_SECRET_KEY?.trim();
+
+  if (!langfuseEnabled || !publicKey || !secretKey) {
+    return undefined;
+  }
+
+  return {
+    langfuse: {
+      enabled: langfuseEnabled,
+      publicKey,
+      secretKey,
+      baseUrl:
+        process.env.LANGFUSE_BASE_URL?.trim() || "https://cloud.langfuse.com",
+      environment:
+        process.env.LANGFUSE_ENVIRONMENT?.trim() ||
+        process.env.PUBLIC_APP_ENVIRONMENT?.trim() ||
+        "dev",
+      release:
+        process.env.PUBLIC_APP_VERSION?.trim() ||
+        process.env.npm_package_version?.trim() ||
+        "v1.0.0",
+    },
+  };
+}