diff --git a/README.md b/README.md
index 42d5efd..8f1d4cb 100644
--- a/README.md
+++ b/README.md
@@ -490,6 +490,26 @@ llm_cache       -- Cached LLM responses (query expansion, rerank scores)
 | Variable | Default | Description |
 |----------|---------|-------------|
 | `XDG_CACHE_HOME` | `~/.cache` | Cache directory location |
+| `QMD_EMBED_MODEL` | `hf:ggml-org/embeddinggemma-300M-GGUF/...` | Override embedding model URI |
+| `QMD_GENERATE_MODEL` | `hf:tobil/qmd-query-expansion-1.7B-gguf/...` | Override query expansion model URI |
+| `QMD_RERANK_MODEL` | `hf:ggml-org/Qwen3-Reranker-0.6B-Q8_0-GGUF/...` | Override reranker model URI |
+| `QMD_MODEL_CACHE_DIR` | `~/.cache/qmd/models` | Override model cache directory |
+
+### Model Override Example
+
+For latency-critical applications (e.g., API timeouts), use a faster reranker:
+
+```sh
+# Use Jina's tiny reranker (185x faster cold start, 6-10x faster warm)
+export QMD_RERANK_MODEL="hf:gpustack/jina-reranker-v1-tiny-en-GGUF/jina-reranker-v1-tiny-en-FP16.gguf"
+qmd query "your search"
+```
+
+**Priority order:** config object > environment variable > default
+
+**Trade-offs:**
+- `jina-reranker-v1-tiny-en` (33M params, 67MB): ~80ms cold, ~50ms warm, 78% ranking agreement
+- `qwen3-reranker-0.6b` (600M params, 639MB): ~15s cold, ~400ms warm, best quality
 
 ## How It Works
 
diff --git a/src/llm.ts b/src/llm.ts
index 46c6295..8f6f73f 100644
--- a/src/llm.ts
+++ b/src/llm.ts
@@ -386,10 +386,11 @@ export class LlamaCpp implements LLM {
 
 
   constructor(config: LlamaCppConfig = {}) {
-    this.embedModelUri = config.embedModel || DEFAULT_EMBED_MODEL;
-    this.generateModelUri = config.generateModel || DEFAULT_GENERATE_MODEL;
-    this.rerankModelUri = config.rerankModel || DEFAULT_RERANK_MODEL;
-    this.modelCacheDir = config.modelCacheDir || MODEL_CACHE_DIR;
+    // Priority: config > env var > default
+    this.embedModelUri = config.embedModel || process.env.QMD_EMBED_MODEL || DEFAULT_EMBED_MODEL;
+    this.generateModelUri = config.generateModel || process.env.QMD_GENERATE_MODEL || DEFAULT_GENERATE_MODEL;
+    this.rerankModelUri = config.rerankModel || process.env.QMD_RERANK_MODEL || DEFAULT_RERANK_MODEL;
+    this.modelCacheDir = config.modelCacheDir || process.env.QMD_MODEL_CACHE_DIR || MODEL_CACHE_DIR;
     this.inactivityTimeoutMs = config.inactivityTimeoutMs ?? DEFAULT_INACTIVITY_TIMEOUT_MS;
     this.disposeModelsOnInactivity = config.disposeModelsOnInactivity ?? false;
   }
diff --git a/test/llm.test.ts b/test/llm.test.ts
index 662d11c..cbbf8e7 100644
--- a/test/llm.test.ts
+++ b/test/llm.test.ts
@@ -33,6 +33,83 @@ describe("Default LlamaCpp Singleton", () => {
   });
 });
 
+// =============================================================================
+// Environment Variable Configuration Tests (no model loading required)
+// =============================================================================
+
+describe("LlamaCpp Environment Variable Configuration", () => {
+  const originalEnv = { ...process.env };
+
+  afterAll(() => {
+    // Restore original environment
+    process.env = originalEnv;
+  });
+
+  test("uses default models when no config or env vars provided", () => {
+    // Clear any env vars
+    delete process.env.QMD_EMBED_MODEL;
+    delete process.env.QMD_GENERATE_MODEL;
+    delete process.env.QMD_RERANK_MODEL;
+    delete process.env.QMD_MODEL_CACHE_DIR;
+
+    const llm = new LlamaCpp({});
+
+    // Access private properties for testing (TypeScript workaround)
+    expect((llm as any).embedModelUri).toContain("embeddinggemma");
+    expect((llm as any).generateModelUri).toContain("qmd-query-expansion");
+    expect((llm as any).rerankModelUri).toContain("qwen3-reranker");
+  });
+
+  test("env vars override defaults when no config provided", () => {
+    process.env.QMD_EMBED_MODEL = "hf:test/embed-model.gguf";
+    process.env.QMD_GENERATE_MODEL = "hf:test/generate-model.gguf";
+    process.env.QMD_RERANK_MODEL = "hf:test/rerank-model.gguf";
+    process.env.QMD_MODEL_CACHE_DIR = "/tmp/test-cache";
+
+    const llm = new LlamaCpp({});
+
+    expect((llm as any).embedModelUri).toBe("hf:test/embed-model.gguf");
+    expect((llm as any).generateModelUri).toBe("hf:test/generate-model.gguf");
+    expect((llm as any).rerankModelUri).toBe("hf:test/rerank-model.gguf");
+    expect((llm as any).modelCacheDir).toBe("/tmp/test-cache");
+
+    // Cleanup
+    delete process.env.QMD_EMBED_MODEL;
+    delete process.env.QMD_GENERATE_MODEL;
+    delete process.env.QMD_RERANK_MODEL;
+    delete process.env.QMD_MODEL_CACHE_DIR;
+  });
+
+  test("config takes priority over env vars", () => {
+    process.env.QMD_RERANK_MODEL = "hf:env/rerank-model.gguf";
+
+    const llm = new LlamaCpp({
+      rerankModel: "hf:config/rerank-model.gguf",
+    });
+
+    expect((llm as any).rerankModelUri).toBe("hf:config/rerank-model.gguf");
+
+    // Cleanup
+    delete process.env.QMD_RERANK_MODEL;
+  });
+
+  test("partial env var override works correctly", () => {
+    // Only set rerank model via env var
+    process.env.QMD_RERANK_MODEL = "hf:gpustack/jina-reranker-v1-tiny-en-GGUF/jina-reranker-v1-tiny-en-FP16.gguf";
+
+    const llm = new LlamaCpp({});
+
+    // Rerank should use env var
+    expect((llm as any).rerankModelUri).toBe("hf:gpustack/jina-reranker-v1-tiny-en-GGUF/jina-reranker-v1-tiny-en-FP16.gguf");
+    // Others should use defaults
+    expect((llm as any).embedModelUri).toContain("embeddinggemma");
+    expect((llm as any).generateModelUri).toContain("qmd-query-expansion");
+
+    // Cleanup
+    delete process.env.QMD_RERANK_MODEL;
+  });
+});
+
 // =============================================================================
 // Model Existence Tests
 // =============================================================================