diff --git a/.changeset/tall-lies-nail.md b/.changeset/tall-lies-nail.md
new file mode 100644
index 00000000..1401ed29
--- /dev/null
+++ b/.changeset/tall-lies-nail.md
@@ -0,0 +1,5 @@
+---
+"@browserbasehq/stagehand": patch
+---
+
+bug fix: set this.env to LOCAL if BROWSERBASE_API_KEY is not defined
diff --git a/lib/index.ts b/lib/index.ts
index 4e9223e0..e6b28b51 100644
--- a/lib/index.ts
+++ b/lib/index.ts
@@ -57,7 +57,7 @@ async function getBrowser(
           "BROWSERBASE_API_KEY is required to use BROWSERBASE env. Defaulting to LOCAL.",
         level: 0,
       });
-      env = "LOCAL";
+      this.env = "LOCAL";
     }
     if (!projectId) {
       logger({