diff --git a/.changeset/early-clowns-occur.md b/.changeset/early-clowns-occur.md
new file mode 100644
index 0000000..c418126
--- /dev/null
+++ b/.changeset/early-clowns-occur.md
@@ -0,0 +1,5 @@
+---
+"create-better-t-stack": patch
+---
+
+Update telemetry disable instructions to use BTS_TELEMETRY_DISABLED
diff --git a/apps/cli/README.md b/apps/cli/README.md
index 7b48884..aa1fa82 100644
--- a/apps/cli/README.md
+++ b/apps/cli/README.md
@@ -82,10 +82,10 @@ You can disable telemetry by setting the `BTS_TELEMETRY` environment variable:
 
 ```bash
 # Disable telemetry for a single run
-BTS_TELEMETRY=0 npx create-better-t-stack my-app
+BTS_TELEMETRY_DISABLED=1 npx create-better-t-stack my-app
 
 # Disable telemetry globally in your shell profile (.bashrc, .zshrc, etc.)
-export BTS_TELEMETRY=0
+export BTS_TELEMETRY_DISABLED=1
 ```
 
 ### Development