diff --git a/atst/routes/applications/settings.py b/atst/routes/applications/settings.py
index 07b08fd5..44b04d90 100644
--- a/atst/routes/applications/settings.py
+++ b/atst/routes/applications/settings.py
@@ -101,6 +101,7 @@ def settings(application_id):
         members_form=members_form,
         active_toggler=http_request.args.get("active_toggler"),
         active_toggler_section=http_request.args.get("active_toggler_section"),
+        new_env_form=EditEnvironmentForm(),
     )
 
 
@@ -135,12 +136,52 @@ def update_environment(environment_id):
                 form=ApplicationForm(
                     name=application.name, description=application.description
                 ),
+                new_env_form=EditEnvironmentForm(),
+                members_form=AppEnvRolesForm(
+                    data=data_for_app_env_roles_form(application)
+                ),
+                environments_obj=get_environments_obj_for_app(application=application),
+                active_toggler=environment.id,
+                active_toggler_section="edit",
+            ),
+            400,
+        )
+
+
+@applications_bp.route(
+    "/applications/<application_id>/environments/new", methods=["POST"]
+)
+@user_can(Permissions.CREATE_ENVIRONMENT, message="create application environment")
+def new_environment(application_id):
+    application = Applications.get(application_id)
+    env_form = EditEnvironmentForm(formdata=http_request.form)
+
+    if env_form.validate():
+        Environments.create(application=application, name=env_form.name.data)
+
+        flash("application_environments_updated")
+
+        return redirect(
+            url_for(
+                "applications.settings",
+                application_id=application.id,
+                fragment="application-environments",
+                _anchor="application-environments",
+            )
+        )
+    else:
+        return (
+            render_template(
+                "portfolios/applications/settings.html",
+                application=application,
+                form=ApplicationForm(
+                    name=application.name, description=application.description
+                ),
+                new_env_form=env_form,
                 environments_obj=get_environments_obj_for_app(application=application),
                 members_form=AppEnvRolesForm(
                     data=data_for_app_env_roles_form(application)
                 ),
-                active_toggler=environment.id,
-                active_toggler_section="edit",
             ),
             400,
         )
@@ -166,22 +207,10 @@ def update(application_id):
             "portfolios/applications/settings.html",
             application=application,
             form=form,
+            new_env_form=EditEnvironmentForm(),
             environments_obj=get_environments_obj_for_app(application=application),
         )
 
-@applications_bp.route("/applications/<application_id>/add_environment", methods=["POST"])
-@user_can(Permissions.EDIT_APPLICATION, message="add application environment")
-def add_environment(application_id):
-    application = Applications.get(application_id)
-    form = ApplicationForm(http_request.form)
-
-    return render_template(
-        "portfolios/applications/settings.html",
-        application=application,
-        form=form,
-        environments_obj=get_environments_obj_for_app(application=application),
-    )
-
 
 @applications_bp.route("/environments/<environment_id>/roles", methods=["POST"])
 @user_can(Permissions.ASSIGN_ENVIRONMENT_MEMBER, message="update environment roles")
@@ -233,6 +262,7 @@ def update_env_roles(environment_id):
                 form=ApplicationForm(
                     name=application.name, description=application.description
                 ),
+                new_env_form=EditEnvironmentForm(),
                 environments_obj=get_environments_obj_for_app(application=application),
                 active_toggler=environment.id,
                 active_toggler_section="edit",
diff --git a/templates/fragments/applications/add_new_environment.html b/templates/fragments/applications/add_new_environment.html
index 9adf1e7e..ddf6a5bb 100644
--- a/templates/fragments/applications/add_new_environment.html
+++ b/templates/fragments/applications/add_new_environment.html
@@ -1,7 +1,9 @@
+{% from 'components/save_button.html' import SaveButton %}
+{% from "components/text_input.html" import TextInput %}
 {% from "components/toggle_list.html" import ToggleButton, ToggleSection %}
 
-<form method='POST' id="add-new-env" action='{{ url_for("applications.add_environment", application_id=application.id) }}' autocomplete="off" enctype="multipart/form-data">
-  {{ form.csrf_token }}
+<form method='POST' id="add-new-env" action='{{ url_for("applications.new_environment", application_id=application.id) }}' autocomplete="off" enctype="multipart/form-data">
+  {{ new_env_form.csrf_token }}
 
   <toggler inline-template>
     <div>
@@ -17,7 +19,9 @@
           <span>{{ "portfolios.applications.create_new_env" | translate }}</span>
           <div>{{ "portfolios.applications.create_new_env_info" | translate }}</div>
           <span>{{ "portfolios.applications.enter_env_name" | translate }}</span>
+            {{ TextInput(new_env_form.name) }}
         </div>
+        {{ SaveButton(text=('common.save' | translate), element="input", form="add-new-env") }}
       {% endcall %}
 
       {{
diff --git a/templates/fragments/applications/edit_environments.html b/templates/fragments/applications/edit_environments.html
index 7852ae7d..299c8f6c 100644
--- a/templates/fragments/applications/edit_environments.html
+++ b/templates/fragments/applications/edit_environments.html
@@ -128,9 +128,6 @@
 </div>
 <div class="panel__footer">
   <div class="action-group">
-    <a class='icon-link'>
-      {{ "portfolios.applications.add_environment" | translate }}
-      {{ Icon('plus') }}
-    </a>
+
   </div>
 </div>
diff --git a/tests/routes/applications/test_settings.py b/tests/routes/applications/test_settings.py
index 1e5bfb02..a658107a 100644
--- a/tests/routes/applications/test_settings.py
+++ b/tests/routes/applications/test_settings.py
@@ -54,7 +54,7 @@ def test_updating_application_environments_success(client, user_session):
     assert environment.name == "new name a"
 
 
-def test_updating_application_environments_failure(client, user_session):
+def test_update_environment_failure(client, user_session):
     portfolio = PortfolioFactory.create()
     application = ApplicationFactory.create(portfolio=portfolio)
     environment = EnvironmentFactory.create(
@@ -391,6 +391,38 @@ def test_delete_application(client, user_session):
     assert len(application.environments) == 0
 
 
+def test_new_environment(client, user_session):
+    user = UserFactory.create()
+    portfolio = PortfolioFactory(owner=user)
+    application = ApplicationFactory.create(portfolio=portfolio)
+    num_envs = len(application.environments)
+
+    user_session(user)
+    response = client.post(
+        url_for("applications.new_environment", application_id=application.id),
+        data={"name": "dabea"},
+    )
+
+    assert response.status_code == 302
+    assert len(application.environments) == num_envs + 1
+
+
+def test_new_environment_with_bad_data(client, user_session):
+    user = UserFactory.create()
+    portfolio = PortfolioFactory(owner=user)
+    application = ApplicationFactory.create(portfolio=portfolio)
+    num_envs = len(application.environments)
+
+    user_session(user)
+    response = client.post(
+        url_for("applications.new_environment", application_id=application.id),
+        data={"name": None},
+    )
+
+    assert response.status_code == 400
+    assert len(application.environments) == num_envs
+
+
 def test_delete_environment(client, user_session):
     user = UserFactory.create()
     portfolio = PortfolioFactory(owner=user)