diff --git a/packages/node_modules/@node-red/nodes/core/storage/10-file.html b/packages/node_modules/@node-red/nodes/core/storage/10-file.html
index fa3fdccc9..ec694471d 100755
--- a/packages/node_modules/@node-red/nodes/core/storage/10-file.html
+++ b/packages/node_modules/@node-red/nodes/core/storage/10-file.html
@@ -211,7 +211,8 @@
         icon: "file-out.svg",
         label: function() {
             var fn = this.filename;
-            if(this.filenameType != "str") { fn = ""; } 
+            if(this.filenameType != "str" && this.filenameType != "env" ) { fn = ""; }
+            if(this.filenameType === "env") { fn = "env."+fn; }
             if (this.overwriteFile === "delete") {
                 return this.name||this._("file.label.deletelabel",{file:fn});
             } else {
@@ -239,11 +240,25 @@
                 types:[{ value: "str", label:"", icon:"red/images/typedInput/az.svg"}, "msg", "jsonata", "env"],
                 typeField: $("#node-input-filenameType")
             });
-            if(!node.filename && !node.filenameType) {
-                node.filename = "filename" 
-                node.filenameType = "msg"
-                $("#node-input-filename").typedInput("type", node.filenameType);
-                $("#node-input-filename").typedInput("value", node.filename);
+            if(typeof node.filenameType == 'undefined') {
+                //existing node AND filenameType is not set - inplace (compatible) upgrade to new typedInput
+                if(node.filename == "") { //was using empty value to denote msg.filename - set typedInput to match
+                    node.filename = "filename";
+                    node.filenameType = "msg";
+                    $("#node-input-filename").typedInput("type", node.filenameType);
+                    $("#node-input-filename").typedInput("value", node.filename);
+                } else if(/^\${[^}]+}$/.test(node.filename)) { //was using an ${ENV_VAR}
+                    node.filenameType = "env";
+                    node.filename = node.filename.replace(/\${([^}]+)}/g, function(match, name) {
+                        return (name === undefined)?"":name;
+                    });
+                    $("#node-input-filename").typedInput("type", node.filenameType);
+                    $("#node-input-filename").typedInput("value", node.filename);
+                } else { //was using a static filename - set typedInput type to str
+                    node.filenameType = "str";
+                    $("#node-input-filename").typedInput("type", node.filenameType);
+                    $("#node-input-filename").typedInput("value", node.filename);
+                }
             }
             encodings.forEach(function(item) {
                 if(Array.isArray(item)) {
@@ -309,7 +324,8 @@
         icon: "file-in.svg",
         label: function() {
             var fn = this.filename;
-            if(this.filenameType != "str") { fn = ""; } 
+            if(this.filenameType != "str" && this.filenameType != "env" ) { fn = ""; }
+            if(this.filenameType === "env") { fn = "env."+fn; }
             return this.name||fn||this._("file.label.read");
         },
         paletteLabel: RED._("node-red:file.label.read"),
@@ -329,11 +345,25 @@
                 types:[{ value: "str", label:"", icon:"red/images/typedInput/az.svg"}, "msg", "jsonata", "env"],
                 typeField: $("#node-input-filenameType")
             });
-            if(!node.filename && !node.filenameType) {
-                node.filename = "filename" 
-                node.filenameType = "msg"
-                $("#node-input-filename").typedInput("type", node.filenameType);
-                $("#node-input-filename").typedInput("value", node.filename);
+            if(typeof node.filenameType == 'undefined') {
+                //existing node AND filenameType is not set - inplace (compatible) upgrade to new typedInput
+                if(node.filename == "") { //was using empty value to denote msg.filename - set typedInput to match
+                    node.filename = "filename";
+                    node.filenameType = "msg";
+                    $("#node-input-filename").typedInput("type", node.filenameType);
+                    $("#node-input-filename").typedInput("value", node.filename);
+                } else if(/^\${[^}]+}$/.test(node.filename)) { //was using an ${ENV_VAR}
+                    node.filenameType = "env";
+                    node.filename = node.filename.replace(/\${([^}]+)}/g, function(match, name) {
+                        return (name === undefined)?"":name;
+                    });
+                    $("#node-input-filename").typedInput("type", node.filenameType);
+                    $("#node-input-filename").typedInput("value", node.filename);
+                } else { //was using a static filename - set typedInput type to str
+                    node.filenameType = "str";
+                    $("#node-input-filename").typedInput("type", node.filenameType);
+                    $("#node-input-filename").typedInput("value", node.filename);
+                }
             }
             encodings.forEach(function(item) {
                 if(Array.isArray(item)) {
diff --git a/packages/node_modules/@node-red/nodes/core/storage/10-file.js b/packages/node_modules/@node-red/nodes/core/storage/10-file.js
index 309de1abf..b6531a3a6 100644
--- a/packages/node_modules/@node-red/nodes/core/storage/10-file.js
+++ b/packages/node_modules/@node-red/nodes/core/storage/10-file.js
@@ -52,10 +52,20 @@ module.exports = function(RED) {
 
         function processMsg(msg,nodeSend, done) {
             var filename = node.filename || "";
-            //Pre V3 compatibility - if filename and filenameType are empty, check msg.filename
-            if(!node.filenameType && !node.filename) {
-                msg.filename = "filename";
-                node.filenameType = "msg";
+            //Pre V3 compatibility - if filenameType is empty, do in place upgrade
+            if(typeof node.filenameType == 'undefined' || node.filenameType == "") {
+                //existing node AND filenameType is not set - inplace (compatible) upgrade
+                if(filename == "") { //was using empty value to denote msg.filename
+                    node.filename = "filename";
+                    node.filenameType = "msg";
+                } else if(/^\${[^}]+}$/.test(filename)) { //was using an ${ENV_VAR}
+                    node.filenameType = "env";
+                    node.filename = filename.replace(/\${([^}]+)}/g, function(match, name) {
+                        return (name === undefined)?"":name;
+                    });
+                } else { //was using a static filename - set typedInput type to str
+                    node.filenameType = "str";
+                }
             }
 
             RED.util.evaluateNodeProperty(node.filename,node.filenameType,node,msg,(err,value) => {
@@ -174,7 +184,7 @@ module.exports = function(RED) {
                             done();
                         });
                     }
-                    if (node.filenameType === "str") {
+                    if (node.filenameType === "str" || node.filenameType === "env") {
                         // Static filename - write and reuse the stream next time
                         node.wstream.write(buf, function() {
                             nodeSend(msg);
@@ -288,12 +298,21 @@ module.exports = function(RED) {
 
         this.on("input",function(msg, nodeSend, nodeDone) {
             var filename = node.filename || "";
-            //Pre V3 compatibility - if filename and filenameType are empty, check msg.filename
-            if(!node.filenameType && !node.filename) {
-                msg.filename = "filename";
-                node.filenameType = "msg";
+            //Pre V3 compatibility - if filenameType is empty, do in place upgrade
+            if(typeof node.filenameType == 'undefined' || node.filenameType == "") {
+                //existing node AND filenameType is not set - inplace (compatible) upgrade
+                if(filename == "") { //was using empty value to denote msg.filename
+                    node.filename = "filename";
+                    node.filenameType = "msg";
+                } else if(/^\${[^}]+}$/.test(filename)) { //was using an ${ENV_VAR}
+                    node.filenameType = "env";
+                    node.filename = filename.replace(/\${([^}]+)}/g, function(match, name) {
+                        return (name === undefined)?"":name;
+                    });
+                } else { //was using a static filename - set typedInput type to str
+                    node.filenameType = "str";
+                }
             }
-
             RED.util.evaluateNodeProperty(node.filename,node.filenameType,node,msg,(err,value) => {
                 if (err) {
                     node.error(err,msg);
diff --git a/packages/node_modules/@node-red/nodes/locales/en-US/storage/10-file.html b/packages/node_modules/@node-red/nodes/locales/en-US/storage/10-file.html
index 70400f676..1e8e7e3c2 100644
--- a/packages/node_modules/@node-red/nodes/locales/en-US/storage/10-file.html
+++ b/packages/node_modules/@node-red/nodes/locales/en-US/storage/10-file.html
@@ -19,8 +19,6 @@
        Alternatively, it can delete the file.</p>
     <h3>Inputs</h3>
     <dl class="message-properties">
-        <dt class="optional">filename <span class="property-type">string</span></dt>
-        <dd>If not configured in the node, this optional property sets the name of the file to be updated.</dd>
         <dt class="optional">encoding <span class="property-type">string</span></dt>
         <dd>If encoding is configured to be set by msg, then this optional property can set the encoding.</dt>
     </dl>
@@ -40,11 +38,6 @@
 
 <script type="text/html" data-help-name="file in">
     <p>Reads the contents of a file as either a string or binary buffer.</p>
-    <h3>Inputs</h3>
-    <dl class="message-properties">
-        <dt class="optional">filename <span class="property-type">string</span></dt>
-        <dd>if not set in the node configuration, this property sets the filename to read.</dd>
-    </dl>
     <h3>Outputs</h3>
     <dl class="message-properties">
         <dt>payload <span class="property-type">string | buffer</span></dt>