diff --git a/.env.mainnet b/.env.mainnet
index ac9e52b66..e41adef85 100644
--- a/.env.mainnet
+++ b/.env.mainnet
@@ -53,3 +53,9 @@ STATSD_ADDRESS="172.17.0.1"
 # NOTE: The node type that was chosen when first running a node cannot be changed after the initial sync. Turning Archive into Pruned, or Pruned into Full is not supported [source](https://reth.rs/run/faq/pruning/).
 # NOTE: The pruned snapshots provided are set with a distance of 1_339_200 (~31 days).
 # RETH_PRUNING_ARGS="--prune.senderrecovery.distance=50000 --prune.transactionlookup.distance=50000 --prune.receipts.distance=50000 --prune.accounthistory.distance=50000 --prune.storagehistory.distance=50000 --prune.bodies.distance=50000"
+
+# DATA DIRECTORY
+# -----------------
+# Path on the host machine where chain data will be persisted.
+# Defaults to ./reth-data relative to docker-compose.yml if not set.
+HOST_DATA_DIR=./reth-data
diff --git a/.env.sepolia b/.env.sepolia
index e518129fb..a7b7d5b5a 100644
--- a/.env.sepolia
+++ b/.env.sepolia
@@ -53,3 +53,9 @@ STATSD_ADDRESS="172.17.0.1"
 # NOTE: The node type that was chosen when first running a node cannot be changed after the initial sync. Turning Archive into Pruned, or Pruned into Full is not supported [source](https://reth.rs/run/faq/pruning/).
 # NOTE: The pruned snapshots provided are set with a distance of 1_339_200 (~31 days).
 # RETH_PRUNING_ARGS="--prune.senderrecovery.distance=50000 --prune.transactionlookup.distance=50000 --prune.receipts.distance=50000 --prune.accounthistory.distance=50000 --prune.storagehistory.distance=50000 --prune.bodies.distance=50000"
+
+# DATA DIRECTORY
+# -----------------
+# Path on the host machine where chain data will be persisted.
+# Defaults to ./reth-data relative to docker-compose.yml if not set.
+HOST_DATA_DIR=./reth-data
diff --git a/README.md b/README.md
index 2e0b62998..7cdcf52d7 100644
--- a/README.md
+++ b/README.md
@@ -21,7 +21,12 @@ Base is a secure, low-cost, developer-friendly Ethereum L2 built on Optimism's [
    BASE_NODE_L1_ETH_RPC=<your-preferred-l1-rpc>
    BASE_NODE_L1_BEACON=<your-preferred-l1-beacon>
    ```
-4. Start the node:
+4. Set the data directory (optional but recommended):
+   ```bash
+   HOST_DATA_DIR=./reth-data
+   ```
+   This path on the host machine is where chain data will be persisted. If not set, Docker will default to `./reth-data`.
+5. Start the node:
 
    ```bash
    # For mainnet (default):