diff --git a/docker/knots/entrypoint.sh b/docker/knots/entrypoint.sh
index f422d79..839a34d 100644
--- a/docker/knots/entrypoint.sh
+++ b/docker/knots/entrypoint.sh
@@ -2,6 +2,10 @@
 # This script acts as an entrypoint for the bitcoind container.
 # It retrieves RPC credentials and other configurations from environment
 # variables, generates a bitcoin.conf file, and then starts bitcoind.
+#
+# Network Configuration:
+# - Set NETWORK environment variable to: mainnet (default), testnet, or regtest
+# - Invalid network values will cause the script to exit with an error
 
 set -e
 
@@ -9,6 +13,24 @@ set -e
 BITCOIN_DATA_DIR=${BITCOIN_DATA_DIR:-/data/.bitcoin}
 CONFIG_FILE="${BITCOIN_DATA_DIR}/bitcoin.conf"
 
+# Network configuration - validate network setting
+NETWORK=${NETWORK:-mainnet}
+case "${NETWORK}" in
+  mainnet)
+    echo "Starting bitcoind on mainnet"
+    ;;
+  testnet)
+    echo "Starting bitcoind on testnet"
+    ;;
+  regtest)
+    echo "Starting bitcoind on regtest"
+    ;;
+  *)
+    echo "Error: Invalid NETWORK value '${NETWORK}'. Must be one of: mainnet, testnet, regtest"
+    exit 1
+    ;;
+esac
+
 # Use provided RPC user/password or fallback to defaults
 RPC_USER=${RPC_USER:-rpcuser}
 RPC_PASSWORD=${RPC_PASSWORD:-rpcpassword}
@@ -70,6 +92,24 @@ cat << EOF > "$CONFIG_FILE"
 # Bitcoin Core Configuration File
 # Generated by entrypoint.sh
 
+# ======== Network Configuration ========
+EOF
+
+# Add network-specific configuration
+case "${NETWORK}" in
+  testnet)
+    echo "testnet=1" >> "$CONFIG_FILE"
+    ;;
+  regtest)
+    echo "regtest=1" >> "$CONFIG_FILE"
+    ;;
+  mainnet)
+    # No additional configuration needed for mainnet (default)
+    ;;
+esac
+
+cat << EOF >> "$CONFIG_FILE"
+
 # ======== Core Settings ========
 server=${SERVER_ENABLED}
 txindex=${TXINDEX_ENABLED}