diff --git a/README.md b/README.md
index fa81cf0..f35aebf 100644
--- a/README.md
+++ b/README.md
@@ -29,7 +29,10 @@ https://github.com/user-attachments/assets/f3e60fff-8680-4dd9-b08e-fa7db655a705
       ],
       "env": {
         "AIRFLOW_BASE_URL": "http://<host:port>/api/v1",
-        "AUTH_TOKEN": "<base64_encoded_username_password>"
+        // Either use AUTH_TOKEN for basic auth
+        "AUTH_TOKEN": "<base64_encoded_username_password>",
+        // Or use COOKIE for cookie-based auth
+        "COOKIE": "<session_cookie>"
       }
     }
   }
@@ -57,10 +60,17 @@ airflow-mcp-server --unsafe
 
 The MCP Server expects environment variables to be set:
 - `AIRFLOW_BASE_URL`: The base URL of the Airflow API
-- `AUTH_TOKEN`: The token to use for authorization (_This should be base64 encoded username:password_)
+- `AUTH_TOKEN`: The token to use for basic auth (_This should be base64 encoded username:password_) (_Optional if COOKIE is provided_)
+- `COOKIE`: The session cookie to use for authentication (_Optional if AUTH_TOKEN is provided_)
 - `OPENAPI_SPEC`: The path to the OpenAPI spec file (_Optional_) (_defaults to latest stable release_)
 
-*Currently, only Basic Auth is supported.*
+**Authentication**
+
+The server supports two authentication methods:
+- **Basic Auth**: Using base64 encoded username:password via `AUTH_TOKEN` environment variable
+- **Cookie**: Using session cookie via `COOKIE` environment variable
+
+At least one of these authentication methods must be provided.
 
 **Page Limit**