diff --git a/packages/cloudflare/src/durableobject.ts b/packages/cloudflare/src/durableobject.ts
index ba00778bded5..d595ccfa5985 100644
--- a/packages/cloudflare/src/durableobject.ts
+++ b/packages/cloudflare/src/durableobject.ts
@@ -13,6 +13,7 @@ import type { DurableObject } from 'cloudflare:workers';
 import { setAsyncLocalStorageAsyncContextStrategy } from './async';
 import type { CloudflareOptions } from './client';
 import { isInstrumented, markAsInstrumented } from './instrument';
+import { getFinalOptions } from './options';
 import { wrapRequestHandler } from './request';
 import { init } from './sdk';
 
@@ -140,7 +141,7 @@ export function instrumentDurableObjectWithSentry<E, T extends DurableObject<E>>
     construct(target, [context, env]) {
       setAsyncLocalStorageAsyncContextStrategy();
 
-      const options = optionsCallback(env);
+      const options = getFinalOptions(optionsCallback(env), env);
 
       const obj = new target(context, env);
 
diff --git a/packages/cloudflare/src/handler.ts b/packages/cloudflare/src/handler.ts
index f2bb059ee071..7e1667d6dc56 100644
--- a/packages/cloudflare/src/handler.ts
+++ b/packages/cloudflare/src/handler.ts
@@ -9,6 +9,7 @@ import {
 import { setAsyncLocalStorageAsyncContextStrategy } from './async';
 import type { CloudflareOptions } from './client';
 import { isInstrumented, markAsInstrumented } from './instrument';
+import { getFinalOptions } from './options';
 import { wrapRequestHandler } from './request';
 import { addCloudResourceContext } from './scope-utils';
 import { init } from './sdk';
@@ -35,7 +36,9 @@ export function withSentry<Env = unknown, QueueHandlerMessage = unknown, CfHostM
       handler.fetch = new Proxy(handler.fetch, {
         apply(target, thisArg, args: Parameters<ExportedHandlerFetchHandler<Env, CfHostMetadata>>) {
           const [request, env, context] = args;
-          const options = optionsCallback(env);
+
+          const options = getFinalOptions(optionsCallback(env), env);
+
           return wrapRequestHandler({ options, request, context }, () => target.apply(thisArg, args));
         },
       });
@@ -48,7 +51,8 @@ export function withSentry<Env = unknown, QueueHandlerMessage = unknown, CfHostM
         apply(target, thisArg, args: Parameters<ExportedHandlerScheduledHandler<Env>>) {
           const [event, env, context] = args;
           return withIsolationScope(isolationScope => {
-            const options = optionsCallback(env);
+            const options = getFinalOptions(optionsCallback(env), env);
+
             const client = init(options);
             isolationScope.setClient(client);
 
diff --git a/packages/cloudflare/src/options.ts b/packages/cloudflare/src/options.ts
new file mode 100644
index 000000000000..77a37ea51d31
--- /dev/null
+++ b/packages/cloudflare/src/options.ts
@@ -0,0 +1,20 @@
+import type { CloudflareOptions } from './client';
+
+/**
+ * Merges the options passed in from the user with the options we read from
+ * the Cloudflare `env` environment variable object.
+ *
+ * @param userOptions - The options passed in from the user.
+ * @param env - The environment variables.
+ *
+ * @returns The final options.
+ */
+export function getFinalOptions(userOptions: CloudflareOptions, env: unknown): CloudflareOptions {
+  if (typeof env !== 'object' || env === null) {
+    return userOptions;
+  }
+
+  const release = 'SENTRY_RELEASE' in env && typeof env.SENTRY_RELEASE === 'string' ? env.SENTRY_RELEASE : undefined;
+
+  return { release, ...userOptions };
+}
diff --git a/packages/cloudflare/test/handler.test.ts b/packages/cloudflare/test/handler.test.ts
index 4d9f1c1d7903..602df308c3df 100644
--- a/packages/cloudflare/test/handler.test.ts
+++ b/packages/cloudflare/test/handler.test.ts
@@ -10,6 +10,7 @@ import { withSentry } from '../src/handler';
 
 const MOCK_ENV = {
   SENTRY_DSN: 'https://public@dsn.ingest.sentry.io/1337',
+  SENTRY_RELEASE: '1.1.1',
 };
 
 describe('withSentry', () => {
@@ -51,6 +52,65 @@ describe('withSentry', () => {
 
       expect(result).toBe(response);
     });
+
+    test('merges options from env and callback', async () => {
+      const handler = {
+        fetch(_request, _env, _context) {
+          throw new Error('test');
+        },
+      } satisfies ExportedHandler<typeof MOCK_ENV>;
+
+      let sentryEvent: Event = {};
+
+      const wrappedHandler = withSentry(
+        env => ({
+          dsn: env.SENTRY_DSN,
+          beforeSend(event) {
+            sentryEvent = event;
+            return null;
+          },
+        }),
+        handler,
+      );
+
+      try {
+        await wrappedHandler.fetch(new Request('https://example.com'), MOCK_ENV, createMockExecutionContext());
+      } catch {
+        // ignore
+      }
+
+      expect(sentryEvent.release).toEqual('1.1.1');
+    });
+
+    test('callback options take precedence over env options', async () => {
+      const handler = {
+        fetch(_request, _env, _context) {
+          throw new Error('test');
+        },
+      } satisfies ExportedHandler<typeof MOCK_ENV>;
+
+      let sentryEvent: Event = {};
+
+      const wrappedHandler = withSentry(
+        env => ({
+          dsn: env.SENTRY_DSN,
+          release: '2.0.0',
+          beforeSend(event) {
+            sentryEvent = event;
+            return null;
+          },
+        }),
+        handler,
+      );
+
+      try {
+        await wrappedHandler.fetch(new Request('https://example.com'), MOCK_ENV, createMockExecutionContext());
+      } catch {
+        // ignore
+      }
+
+      expect(sentryEvent.release).toEqual('2.0.0');
+    });
   });
 
   describe('scheduled handler', () => {
@@ -70,6 +130,55 @@ describe('withSentry', () => {
       expect(optionsCallback).toHaveBeenLastCalledWith(MOCK_ENV);
     });
 
+    test('merges options from env and callback', async () => {
+      const handler = {
+        scheduled(_controller, _env, _context) {
+          SentryCore.captureMessage('cloud_resource');
+          return;
+        },
+      } satisfies ExportedHandler<typeof MOCK_ENV>;
+
+      let sentryEvent: Event = {};
+      const wrappedHandler = withSentry(
+        env => ({
+          dsn: env.SENTRY_DSN,
+          beforeSend(event) {
+            sentryEvent = event;
+            return null;
+          },
+        }),
+        handler,
+      );
+      await wrappedHandler.scheduled(createMockScheduledController(), MOCK_ENV, createMockExecutionContext());
+
+      expect(sentryEvent.release).toBe('1.1.1');
+    });
+
+    test('callback options take precedence over env options', async () => {
+      const handler = {
+        scheduled(_controller, _env, _context) {
+          SentryCore.captureMessage('cloud_resource');
+          return;
+        },
+      } satisfies ExportedHandler<typeof MOCK_ENV>;
+
+      let sentryEvent: Event = {};
+      const wrappedHandler = withSentry(
+        env => ({
+          dsn: env.SENTRY_DSN,
+          release: '2.0.0',
+          beforeSend(event) {
+            sentryEvent = event;
+            return null;
+          },
+        }),
+        handler,
+      );
+      await wrappedHandler.scheduled(createMockScheduledController(), MOCK_ENV, createMockExecutionContext());
+
+      expect(sentryEvent.release).toEqual('2.0.0');
+    });
+
     test('flushes the event after the handler is done using the cloudflare context.waitUntil', async () => {
       const handler = {
         scheduled(_controller, _env, _context) {
diff --git a/packages/cloudflare/test/options.test.ts b/packages/cloudflare/test/options.test.ts
new file mode 100644
index 000000000000..ae8a5509b233
--- /dev/null
+++ b/packages/cloudflare/test/options.test.ts
@@ -0,0 +1,58 @@
+import { describe, expect, it } from 'vitest';
+import { getFinalOptions } from '../src/options';
+
+describe('getFinalOptions', () => {
+  it('returns user options when env is not an object', () => {
+    const userOptions = { dsn: 'test-dsn', release: 'test-release' };
+    const env = 'not-an-object';
+
+    const result = getFinalOptions(userOptions, env);
+
+    expect(result).toEqual(userOptions);
+  });
+
+  it('returns user options when env is null', () => {
+    const userOptions = { dsn: 'test-dsn', release: 'test-release' };
+    const env = null;
+
+    const result = getFinalOptions(userOptions, env);
+
+    expect(result).toEqual(userOptions);
+  });
+
+  it('merges options from env with user options', () => {
+    const userOptions = { dsn: 'test-dsn', release: 'user-release' };
+    const env = { SENTRY_RELEASE: 'env-release' };
+
+    const result = getFinalOptions(userOptions, env);
+
+    expect(result).toEqual({ dsn: 'test-dsn', release: 'user-release' });
+  });
+
+  it('uses user options when SENTRY_RELEASE exists but is not a string', () => {
+    const userOptions = { dsn: 'test-dsn', release: 'user-release' };
+    const env = { SENTRY_RELEASE: 123 };
+
+    const result = getFinalOptions(userOptions, env);
+
+    expect(result).toEqual(userOptions);
+  });
+
+  it('uses user options when SENTRY_RELEASE does not exist', () => {
+    const userOptions = { dsn: 'test-dsn', release: 'user-release' };
+    const env = { OTHER_VAR: 'some-value' };
+
+    const result = getFinalOptions(userOptions, env);
+
+    expect(result).toEqual(userOptions);
+  });
+
+  it('takes user options over env options', () => {
+    const userOptions = { dsn: 'test-dsn', release: 'user-release' };
+    const env = { SENTRY_RELEASE: 'env-release' };
+
+    const result = getFinalOptions(userOptions, env);
+
+    expect(result).toEqual(userOptions);
+  });
+});