diff --git a/changelogs/fragments/cloudflare_dns.yml b/changelogs/fragments/cloudflare_dns.yml
new file mode 100644
index 0000000000..1e873fa51c
--- /dev/null
+++ b/changelogs/fragments/cloudflare_dns.yml
@@ -0,0 +1,2 @@
+minor_changes: 
+- cloudflare_dns - add support for environment variable ``CLOUDFLARE_TOKEN`` (https://github.com/ansible-collections/community.general/pull/1238).
diff --git a/plugins/modules/net_tools/cloudflare_dns.py b/plugins/modules/net_tools/cloudflare_dns.py
index fc62aa702c..c91df99556 100644
--- a/plugins/modules/net_tools/cloudflare_dns.py
+++ b/plugins/modules/net_tools/cloudflare_dns.py
@@ -16,13 +16,14 @@ requirements:
    - python >= 2.6
 short_description: Manage Cloudflare DNS records
 description:
-   - "Manages dns records via the Cloudflare API, see the docs: U(https://api.cloudflare.com/)"
+   - "Manages dns records via the Cloudflare API, see the docs: U(https://api.cloudflare.com/)."
 options:
   api_token:
     description:
     - API token.
     - Required for api token authentication.
-    - "You can obtain your API token from the bottom of the Cloudflare 'My Account' page, found here: U(https://dash.cloudflare.com/)"
+    - "You can obtain your API token from the bottom of the Cloudflare 'My Account' page, found here: U(https://dash.cloudflare.com/)."
+    - Can be specified in C(CLOUDFLARE_TOKEN) environment variable since community.general 2.0.0.
     type: str
     required: false
     version_added: '0.2.0'
@@ -30,13 +31,13 @@ options:
     description:
     - Account API key.
     - Required for api keys authentication.
-    - "You can obtain your API key from the bottom of the Cloudflare 'My Account' page, found here: U(https://dash.cloudflare.com/)"
+    - "You can obtain your API key from the bottom of the Cloudflare 'My Account' page, found here: U(https://dash.cloudflare.com/)."
     type: str
     required: false
     aliases: [ account_api_token ]
   account_email:
     description:
-    - Account email. Required for api keys authentication.
+    - Account email. Required for API keys authentication.
     type: str
     required: false
   algorithm:
@@ -100,7 +101,7 @@ options:
   service:
     description:
     - Record service.
-    - Required for C(type=SRV)
+    - Required for I(type=SRV).
     type: str
   solo:
     description:
@@ -357,7 +358,7 @@ record:
 
 import json
 
-from ansible.module_utils.basic import AnsibleModule
+from ansible.module_utils.basic import AnsibleModule, env_fallback
 from ansible.module_utils.six.moves.urllib.parse import urlencode
 from ansible.module_utils._text import to_native, to_text
 from ansible.module_utils.urls import fetch_url
@@ -788,7 +789,12 @@ class CloudflareAPI(object):
 def main():
     module = AnsibleModule(
         argument_spec=dict(
-            api_token=dict(type='str', required=False, no_log=True),
+            api_token=dict(
+                type="str",
+                required=False,
+                no_log=True,
+                fallback=(env_fallback, ["CLOUDFLARE_TOKEN"]),
+            ),
             account_api_key=dict(type='str', required=False, no_log=True, aliases=['account_api_token']),
             account_email=dict(type='str', required=False),
             algorithm=dict(type='int'),