diff --git a/CHANGELOG.md b/CHANGELOG.md
index 522cfe4918..68225966f2 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -9,6 +9,8 @@ release.
 
 * [grafana] update grafana to 10.2.3
   ([#1332](https://github.com/open-telemetry/opentelemetry-demo/pull/1332))
+* [frontendproxy] Enable envoy environment resource detector
+  ([#1291](https://github.com/open-telemetry/opentelemetry-demo/pull/1291))
 * [currencyservice] - add package name prefix to `rpc.service` attribute
   ([#1333](https://github.com/open-telemetry/opentelemetry-demo/pull/1333))
 
diff --git a/docker-compose.minimal.yml b/docker-compose.minimal.yml
index 8e90cd7ddd..a79f6a1119 100644
--- a/docker-compose.minimal.yml
+++ b/docker-compose.minimal.yml
@@ -256,6 +256,7 @@ services:
       - OTEL_COLLECTOR_HOST
       - OTEL_COLLECTOR_PORT_GRPC
       - OTEL_COLLECTOR_PORT_HTTP
+      - OTEL_RESOURCE_ATTRIBUTES
       - ENVOY_PORT
     depends_on:
       frontend:
diff --git a/docker-compose.yml b/docker-compose.yml
index 84f6a5f8f2..d1d662ac94 100644
--- a/docker-compose.yml
+++ b/docker-compose.yml
@@ -345,6 +345,7 @@ services:
       - OTEL_COLLECTOR_HOST
       - OTEL_COLLECTOR_PORT_GRPC
       - OTEL_COLLECTOR_PORT_HTTP
+      - OTEL_RESOURCE_ATTRIBUTES
       - ENVOY_PORT
     depends_on:
       frontend:
diff --git a/src/frontendproxy/Dockerfile b/src/frontendproxy/Dockerfile
index 2d0555ce8b..01cd8373c4 100644
--- a/src/frontendproxy/Dockerfile
+++ b/src/frontendproxy/Dockerfile
@@ -1,8 +1,7 @@
 # Copyright The OpenTelemetry Authors
 # SPDX-License-Identifier: Apache-2.0
 
-
-FROM envoyproxy/envoy:v1.28-latest
+FROM envoyproxy/envoy:v1.29-latest
 RUN apt-get update && apt-get install -y gettext-base && apt-get clean && rm -rf /var/lib/apt/lists/*
 
 USER envoy
diff --git a/src/frontendproxy/envoy.tmpl.yaml b/src/frontendproxy/envoy.tmpl.yaml
index e99eced39c..9ef341bc1c 100644
--- a/src/frontendproxy/envoy.tmpl.yaml
+++ b/src/frontendproxy/envoy.tmpl.yaml
@@ -26,6 +26,10 @@ static_resources:
                           cluster_name: opentelemetry_collector_grpc
                         timeout: 0.250s
                       service_name: frontend-proxy
+                      resource_detectors:
+                        - name: envoy.tracers.opentelemetry.resource_detectors.environment
+                          typed_config:
+                            "@type": type.googleapis.com/envoy.extensions.tracers.opentelemetry.resource_detectors.v3.EnvironmentResourceDetectorConfig
                 route_config:
                   name: local_route
                   virtual_hosts: