diff --git a/config.template.toml b/config.template.toml
index 0c83cc6ccd..4071f94cad 100644
--- a/config.template.toml
+++ b/config.template.toml
@@ -10,18 +10,7 @@
 # General core configurations
 ##############################################################################
 [core]
-# API key for E2B
-#e2b_api_key = ""
-
-# API key for Modal
-#modal_api_token_id = ""
-#modal_api_token_secret = ""
-
-# API key for Daytona
-#daytona_api_key = ""
-
-# Daytona Target
-#daytona_target = ""
+# API keys and configuration for core services
 
 # Base path for the workspace
 #workspace_base = "./workspace"
diff --git a/dev_config/python/.pre-commit-config.yaml b/dev_config/python/.pre-commit-config.yaml
index 56053cba2f..6239e2213f 100644
--- a/dev_config/python/.pre-commit-config.yaml
+++ b/dev_config/python/.pre-commit-config.yaml
@@ -3,9 +3,9 @@ repos:
     rev: v5.0.0
     hooks:
       - id: trailing-whitespace
-        exclude: ^(docs/|modules/|python/|openhands-ui/)
+        exclude: ^(docs/|modules/|python/|openhands-ui/|third_party/)
       - id: end-of-file-fixer
-        exclude: ^(docs/|modules/|python/|openhands-ui/)
+        exclude: ^(docs/|modules/|python/|openhands-ui/|third_party/)
       - id: check-yaml
         args: ["--allow-multiple-documents"]
       - id: debug-statements
@@ -28,10 +28,12 @@ repos:
         entry: ruff check --config dev_config/python/ruff.toml
         types_or: [python, pyi, jupyter]
         args: [--fix, --unsafe-fixes]
+        exclude: third_party/
       # Run the formatter.
       - id: ruff-format
         entry: ruff format --config dev_config/python/ruff.toml
         types_or: [python, pyi, jupyter]
+        exclude: third_party/
 
   - repo: https://github.com/pre-commit/mirrors-mypy
     rev: v1.15.0
diff --git a/dev_config/python/mypy.ini b/dev_config/python/mypy.ini
index 84b97d720b..f8ca5c8c59 100644
--- a/dev_config/python/mypy.ini
+++ b/dev_config/python/mypy.ini
@@ -7,3 +7,5 @@ warn_unreachable = True
 warn_redundant_casts = True
 no_implicit_optional = True
 strict_optional = True
+# Exclude third-party runtime directory from type checking
+exclude = third_party/
diff --git a/dev_config/python/ruff.toml b/dev_config/python/ruff.toml
index e15500e061..4df1c4d97b 100644
--- a/dev_config/python/ruff.toml
+++ b/dev_config/python/ruff.toml
@@ -1,3 +1,6 @@
+# Exclude third-party runtime directory from linting
+exclude = ["third_party/"]
+
 [lint]
 select = [
     "E",
diff --git a/docs/usage/configuration-options.mdx b/docs/usage/configuration-options.mdx
index 8d9260ad61..439b8b28bf 100644
--- a/docs/usage/configuration-options.mdx
+++ b/docs/usage/configuration-options.mdx
@@ -12,22 +12,6 @@ description: This page outlines all available configuration options for OpenHand
 
 The core configuration options are defined in the `[core]` section of the `config.toml` file.
 
-### API Keys
-- `e2b_api_key`
-  - Type: `str`
-  - Default: `""`
-  - Description: API key for E2B
-
-- `modal_api_token_id`
-  - Type: `str`
-  - Default: `""`
-  - Description: API token ID for Modal
-
-- `modal_api_token_secret`
-  - Type: `str`
-  - Default: `""`
-  - Description: API token secret for Modal
-
 ### Workspace
 - `workspace_base` **(Deprecated)**
   - Type: `str`
diff --git a/docs/usage/runtimes/overview.mdx b/docs/usage/runtimes/overview.mdx
index 4513aa5ea0..25ab882cc7 100644
--- a/docs/usage/runtimes/overview.mdx
+++ b/docs/usage/runtimes/overview.mdx
@@ -9,8 +9,6 @@ commands.
 By default, OpenHands uses a [Docker-based runtime](/usage/runtimes/docker), running on your local computer.
 This means you only have to pay for the LLM you're using, and your code is only ever sent to the LLM.
 
-We also support other runtimes, which are typically managed by third-parties.
-
 Additionally, we provide a [Local Runtime](/usage/runtimes/local) that runs directly on your machine without Docker,
 which can be useful in controlled environments like CI pipelines.
 
@@ -21,6 +19,18 @@ OpenHands supports several different runtime environments:
 - [Docker Runtime](/usage/runtimes/docker) - The default runtime that uses Docker containers for isolation (recommended for most users).
 - [OpenHands Remote Runtime](/usage/runtimes/remote) - Cloud-based runtime for parallel execution (beta).
 - [Local Runtime](/usage/runtimes/local) - Direct execution on your local machine without Docker.
-- And more third-party runtimes:
-  - [Modal Runtime](/usage/runtimes/modal) - Runtime provided by our partners at Modal.
-  - [Daytona Runtime](/usage/runtimes/daytona) - Runtime provided by Daytona.
+
+### Third-Party Runtimes
+
+The following third-party runtimes are available when you install the `third_party_runtimes` extra:
+
+```bash
+pip install openhands-ai[third_party_runtimes]
+```
+
+- [E2B Runtime](/usage/runtimes/e2b) - Open source runtime using E2B sandboxes.
+- [Modal Runtime](/usage/runtimes/modal) - Serverless runtime using Modal infrastructure.
+- [Runloop Runtime](/usage/runtimes/runloop) - Cloud runtime using Runloop infrastructure.
+- [Daytona Runtime](/usage/runtimes/daytona) - Development environment runtime using Daytona.
+
+**Note**: These third-party runtimes are supported by their respective developers, not by the OpenHands team. For issues specific to these runtimes, please refer to their documentation or contact their support teams.
diff --git a/openhands/core/config/openhands_config.py b/openhands/core/config/openhands_config.py
index d2908f0530..10a9b2872e 100644
--- a/openhands/core/config/openhands_config.py
+++ b/openhands/core/config/openhands_config.py
@@ -46,7 +46,6 @@ class OpenHandsConfig(BaseModel):
         run_as_openhands: Whether to run as openhands.
         max_iterations: Maximum number of iterations allowed.
         max_budget_per_task: Maximum budget per task, agent stops if exceeded.
-        e2b_api_key: E2B API key.
         disable_color: Whether to disable terminal colors. For terminals that don't support color.
         debug: Whether to enable debugging mode.
         file_uploads_max_file_size_mb: Maximum file upload size in MB. `0` means unlimited.
@@ -88,19 +87,14 @@ class OpenHandsConfig(BaseModel):
     run_as_openhands: bool = Field(default=True)
     max_iterations: int = Field(default=OH_MAX_ITERATIONS)
     max_budget_per_task: float | None = Field(default=None)
-    e2b_api_key: SecretStr | None = Field(default=None)
-    modal_api_token_id: SecretStr | None = Field(default=None)
-    modal_api_token_secret: SecretStr | None = Field(default=None)
+
     disable_color: bool = Field(default=False)
     jwt_secret: SecretStr | None = Field(default=None)
     debug: bool = Field(default=False)
     file_uploads_max_file_size_mb: int = Field(default=0)
     file_uploads_restrict_file_types: bool = Field(default=False)
     file_uploads_allowed_extensions: list[str] = Field(default_factory=lambda: ['.*'])
-    runloop_api_key: SecretStr | None = Field(default=None)
-    daytona_api_key: SecretStr | None = Field(default=None)
-    daytona_api_url: str = Field(default='https://app.daytona.io/api')
-    daytona_target: str = Field(default='eu')
+
     cli_multiline_input: bool = Field(default=False)
     conversation_max_age_seconds: int = Field(default=864000)  # 10 days in seconds
     enable_default_condenser: bool = Field(default=True)
diff --git a/openhands/core/logger.py b/openhands/core/logger.py
index 9e1328cb8f..b10f8aee89 100644
--- a/openhands/core/logger.py
+++ b/openhands/core/logger.py
@@ -261,6 +261,7 @@ class SensitiveDataFilter(logging.Filter):
             'modal_api_token_secret',
             'llm_api_key',
             'sandbox_env_github_token',
+            'runloop_api_key',
             'daytona_api_key',
         ]
 
diff --git a/openhands/runtime/__init__.py b/openhands/runtime/__init__.py
index 45f539ef2c..2e188f8844 100644
--- a/openhands/runtime/__init__.py
+++ b/openhands/runtime/__init__.py
@@ -1,31 +1,84 @@
+import importlib
+
 from openhands.runtime.base import Runtime
 from openhands.runtime.impl.cli.cli_runtime import CLIRuntime
-from openhands.runtime.impl.daytona.daytona_runtime import DaytonaRuntime
 from openhands.runtime.impl.docker.docker_runtime import (
     DockerRuntime,
 )
-from openhands.runtime.impl.e2b.e2b_runtime import E2BRuntime
 from openhands.runtime.impl.kubernetes.kubernetes_runtime import KubernetesRuntime
 from openhands.runtime.impl.local.local_runtime import LocalRuntime
-from openhands.runtime.impl.modal.modal_runtime import ModalRuntime
 from openhands.runtime.impl.remote.remote_runtime import RemoteRuntime
-from openhands.runtime.impl.runloop.runloop_runtime import RunloopRuntime
 from openhands.utils.import_utils import get_impl
 
 # mypy: disable-error-code="type-abstract"
 _DEFAULT_RUNTIME_CLASSES: dict[str, type[Runtime]] = {
     'eventstream': DockerRuntime,
     'docker': DockerRuntime,
-    'e2b': E2BRuntime,
     'remote': RemoteRuntime,
-    'modal': ModalRuntime,
-    'runloop': RunloopRuntime,
     'local': LocalRuntime,
-    'daytona': DaytonaRuntime,
     'kubernetes': KubernetesRuntime,
     'cli': CLIRuntime,
 }
 
+# Try to import third-party runtimes if available
+_THIRD_PARTY_RUNTIME_CLASSES: dict[str, type[Runtime]] = {}
+
+# Dynamically discover and import third-party runtimes
+
+# Check if third_party package exists and discover runtimes
+try:
+    import third_party.runtime.impl
+
+    third_party_base = 'third_party.runtime.impl'
+
+    # List of potential third-party runtime modules to try
+    # These are discovered from the third_party directory structure
+    potential_runtimes = []
+    try:
+        import pkgutil
+
+        for importer, modname, ispkg in pkgutil.iter_modules(
+            third_party.runtime.impl.__path__
+        ):
+            if ispkg:
+                potential_runtimes.append(modname)
+    except Exception:
+        # If discovery fails, no third-party runtimes will be loaded
+        potential_runtimes = []
+
+    # Try to import each discovered runtime
+    for runtime_name in potential_runtimes:
+        try:
+            module_path = f'{third_party_base}.{runtime_name}.{runtime_name}_runtime'
+            module = importlib.import_module(module_path)
+
+            # Try different class name patterns
+            possible_class_names = [
+                f'{runtime_name.upper()}Runtime',  # E2BRuntime
+                f'{runtime_name.capitalize()}Runtime',  # E2bRuntime, DaytonaRuntime, etc.
+            ]
+
+            runtime_class = None
+            for class_name in possible_class_names:
+                try:
+                    runtime_class = getattr(module, class_name)
+                    break
+                except AttributeError:
+                    continue
+
+            if runtime_class:
+                _THIRD_PARTY_RUNTIME_CLASSES[runtime_name] = runtime_class
+
+        except ImportError:
+            pass
+
+except ImportError:
+    # third_party package not available
+    pass
+
+# Combine core and third-party runtimes
+_ALL_RUNTIME_CLASSES = {**_DEFAULT_RUNTIME_CLASSES, **_THIRD_PARTY_RUNTIME_CLASSES}
+
 
 def get_runtime_cls(name: str) -> type[Runtime]:
     """
@@ -33,26 +86,28 @@ def get_runtime_cls(name: str) -> type[Runtime]:
     Otherwise attempt to resolve name as subclass of Runtime and return it.
     Raise on invalid selections.
     """
-    if name in _DEFAULT_RUNTIME_CLASSES:
-        return _DEFAULT_RUNTIME_CLASSES[name]
+    if name in _ALL_RUNTIME_CLASSES:
+        return _ALL_RUNTIME_CLASSES[name]
     try:
         return get_impl(Runtime, name)
     except Exception as e:
-        known_keys = _DEFAULT_RUNTIME_CLASSES.keys()
+        known_keys = _ALL_RUNTIME_CLASSES.keys()
         raise ValueError(
             f'Runtime {name} not supported, known are: {known_keys}'
         ) from e
 
 
+# Build __all__ list dynamically based on available runtimes
 __all__ = [
     'Runtime',
-    'E2BRuntime',
     'RemoteRuntime',
-    'ModalRuntime',
-    'RunloopRuntime',
     'DockerRuntime',
-    'DaytonaRuntime',
     'KubernetesRuntime',
     'CLIRuntime',
+    'LocalRuntime',
     'get_runtime_cls',
 ]
+
+# Add third-party runtimes to __all__ if they're available
+for runtime_name, runtime_class in _THIRD_PARTY_RUNTIME_CLASSES.items():
+    __all__.append(runtime_class.__name__)
diff --git a/openhands/runtime/base.py b/openhands/runtime/base.py
index 53b6aaff90..83021fbf3f 100644
--- a/openhands/runtime/base.py
+++ b/openhands/runtime/base.py
@@ -100,11 +100,10 @@ class Runtime(FileEditRuntimeMixin):
 
     Built-in implementations include:
     - DockerRuntime: Containerized environment using Docker
-    - E2BRuntime: Secure sandbox using E2B
     - RemoteRuntime: Remote execution environment
-    - ModalRuntime: Scalable cloud environment using Modal
     - LocalRuntime: Local execution for development
-    - DaytonaRuntime: Cloud development environment using Daytona
+    - KubernetesRuntime: Kubernetes-based execution environment
+    - CLIRuntime: Command-line interface runtime
 
     Args:
         sid: Session ID that uniquely identifies the current user session
diff --git a/openhands/runtime/impl/__init__.py b/openhands/runtime/impl/__init__.py
index 15e877811c..a4e9701ed4 100644
--- a/openhands/runtime/impl/__init__.py
+++ b/openhands/runtime/impl/__init__.py
@@ -6,22 +6,14 @@ from openhands.runtime.impl.action_execution.action_execution_client import (
     ActionExecutionClient,
 )
 from openhands.runtime.impl.cli import CLIRuntime
-from openhands.runtime.impl.daytona.daytona_runtime import DaytonaRuntime
 from openhands.runtime.impl.docker.docker_runtime import DockerRuntime
-from openhands.runtime.impl.e2b.e2b_runtime import E2BRuntime
 from openhands.runtime.impl.local.local_runtime import LocalRuntime
-from openhands.runtime.impl.modal.modal_runtime import ModalRuntime
 from openhands.runtime.impl.remote.remote_runtime import RemoteRuntime
-from openhands.runtime.impl.runloop.runloop_runtime import RunloopRuntime
 
 __all__ = [
     'ActionExecutionClient',
     'CLIRuntime',
-    'DaytonaRuntime',
     'DockerRuntime',
-    'E2BRuntime',
     'LocalRuntime',
-    'ModalRuntime',
     'RemoteRuntime',
-    'RunloopRuntime',
 ]
diff --git a/poetry.lock b/poetry.lock
index eef3fc65fa..33615a8fef 100644
--- a/poetry.lock
+++ b/poetry.lock
@@ -1,12 +1,13 @@
-# This file is automatically @generated by Poetry 2.1.1 and should not be changed by hand.
+# This file is automatically @generated by Poetry 2.1.3 and should not be changed by hand.
 
 [[package]]
 name = "aioboto3"
 version = "14.3.0"
 description = "Async boto3 wrapper"
-optional = false
+optional = true
 python-versions = "<4.0,>=3.8"
 groups = ["main"]
+markers = "extra == \"third-party-runtimes\""
 files = [
     {file = "aioboto3-14.3.0-py3-none-any.whl", hash = "sha256:aec5de94e9edc1ffbdd58eead38a37f00ddac59a519db749a910c20b7b81bca7"},
     {file = "aioboto3-14.3.0.tar.gz", hash = "sha256:1d18f88bb56835c607b62bb6cb907754d717bedde3ddfff6935727cb48a80135"},
@@ -24,9 +25,10 @@ s3cse = ["cryptography (>=44.0.1)"]
 name = "aiobotocore"
 version = "2.22.0"
 description = "Async client for aws services using botocore and aiohttp"
-optional = false
+optional = true
 python-versions = ">=3.8"
 groups = ["main"]
+markers = "extra == \"third-party-runtimes\""
 files = [
     {file = "aiobotocore-2.22.0-py3-none-any.whl", hash = "sha256:b4e6306f79df9d81daff1f9d63189a2dbee4b77ce3ab937304834e35eaaeeccf"},
     {file = "aiobotocore-2.22.0.tar.gz", hash = "sha256:11091477266b75c2b5d28421c1f2bc9a87d175d0b8619cb830805e7a113a170b"},
@@ -50,9 +52,10 @@ boto3 = ["boto3 (>=1.37.2,<1.37.4)"]
 name = "aiofiles"
 version = "24.1.0"
 description = "File support for asyncio."
-optional = false
+optional = true
 python-versions = ">=3.8"
 groups = ["main"]
+markers = "extra == \"third-party-runtimes\""
 files = [
     {file = "aiofiles-24.1.0-py3-none-any.whl", hash = "sha256:b4ec55f4195e3eb5d7abd1bf7e061763e864dd4954231fb8539a0ef8bb8260e5"},
     {file = "aiofiles-24.1.0.tar.gz", hash = "sha256:22a075c9e5a3810f0c2e48f3008c94d68c65d763b9b03857924c99e57355166c"},
@@ -182,9 +185,10 @@ speedups = ["Brotli ; platform_python_implementation == \"CPython\"", "aiodns (>
 name = "aiohttp-retry"
 version = "2.9.1"
 description = "Simple retry client for aiohttp"
-optional = false
+optional = true
 python-versions = ">=3.7"
 groups = ["main"]
+markers = "extra == \"third-party-runtimes\""
 files = [
     {file = "aiohttp_retry-2.9.1-py3-none-any.whl", hash = "sha256:66d2759d1921838256a05a3f80ad7e724936f083e35be5abb5e16eed6be6dc54"},
     {file = "aiohttp_retry-2.9.1.tar.gz", hash = "sha256:8eb75e904ed4ee5c2ec242fefe85bf04240f685391c4879d8f541d6028ff01f1"},
@@ -197,9 +201,10 @@ aiohttp = "*"
 name = "aioitertools"
 version = "0.12.0"
 description = "itertools and builtins for AsyncIO and mixed iterables"
-optional = false
+optional = true
 python-versions = ">=3.8"
 groups = ["main"]
+markers = "extra == \"third-party-runtimes\""
 files = [
     {file = "aioitertools-0.12.0-py3-none-any.whl", hash = "sha256:fc1f5fac3d737354de8831cbba3eb04f79dd649d8f3afb4c5b114925e662a796"},
     {file = "aioitertools-0.12.0.tar.gz", hash = "sha256:c2a9055b4fbb7705f561b9d86053e8af5d10cc845d22c32008c43490b2d8dd6b"},
@@ -462,7 +467,7 @@ description = "LTS Port of Python audioop"
 optional = false
 python-versions = ">=3.13"
 groups = ["main"]
-markers = "python_version >= \"3.13\""
+markers = "python_version == \"3.13\""
 files = [
     {file = "audioop_lts-0.2.1-cp313-abi3-macosx_10_13_universal2.whl", hash = "sha256:fd1345ae99e17e6910f47ce7d52673c6a1a70820d78b67de1b7abb3af29c426a"},
     {file = "audioop_lts-0.2.1-cp313-abi3-macosx_10_13_x86_64.whl", hash = "sha256:e175350da05d2087e12cea8e72a70a1a8b14a17e92ed2022952a4419689ede5e"},
@@ -1644,7 +1649,7 @@ files = [
     {file = "colorama-0.4.6-py2.py3-none-any.whl", hash = "sha256:4f1d9991f5acc0ca119f9d443620b77f9d6b33703e51011c16baf57afb285fc6"},
     {file = "colorama-0.4.6.tar.gz", hash = "sha256:08695f5cb7ed6e0531a20572697297273c47b8cae5a63ffc6d6ed5c201be6e44"},
 ]
-markers = {main = "platform_system == \"Windows\" or sys_platform == \"win32\" or os_name == \"nt\"", dev = "os_name == \"nt\" or sys_platform == \"win32\"", runtime = "sys_platform == \"win32\"", test = "platform_system == \"Windows\" or sys_platform == \"win32\""}
+markers = {main = "platform_system == \"Windows\" or os_name == \"nt\" or sys_platform == \"win32\"", dev = "os_name == \"nt\" or sys_platform == \"win32\"", runtime = "sys_platform == \"win32\"", test = "platform_system == \"Windows\" or sys_platform == \"win32\""}
 
 [[package]]
 name = "comm"
@@ -2000,9 +2005,10 @@ vision = ["Pillow (>=9.4.0)"]
 name = "daytona"
 version = "0.21.1"
 description = "Python SDK for Daytona"
-optional = false
+optional = true
 python-versions = ">=3.7"
 groups = ["main"]
+markers = "extra == \"third-party-runtimes\""
 files = [
     {file = "daytona-0.21.1-py3-none-any.whl", hash = "sha256:1ce6b352f52ef92e667098b7bdaa60c22ffbfb8e686a8cbd12418bf7698ac834"},
     {file = "daytona-0.21.1.tar.gz", hash = "sha256:01d83dd2b627f87e82491fb97f41845768d75c33f0767eaa44f6e8378bd58e60"},
@@ -2032,9 +2038,10 @@ dev = ["black[jupyter] (>=23.1.0,<24.0.0)", "build (>=1.0.3)", "isort (>=5.10.0,
 name = "daytona-api-client"
 version = "0.21.0"
 description = "Daytona"
-optional = false
+optional = true
 python-versions = "*"
 groups = ["main"]
+markers = "extra == \"third-party-runtimes\""
 files = [
     {file = "daytona_api_client-0.21.0-py3-none-any.whl", hash = "sha256:a8ff1f0fb397368dbd6ddb224c28d679e599c657eab2ec5821cf0c972a60229a"},
     {file = "daytona_api_client-0.21.0.tar.gz", hash = "sha256:92d591c5a1750a827b5850425ce483441609b72b05d35a618d5353fbbba50bca"},
@@ -2050,9 +2057,10 @@ urllib3 = ">=1.25.3,<3.0.0"
 name = "daytona-api-client-async"
 version = "0.21.0"
 description = "Daytona"
-optional = false
+optional = true
 python-versions = "*"
 groups = ["main"]
+markers = "extra == \"third-party-runtimes\""
 files = [
     {file = "daytona_api_client_async-0.21.0-py3-none-any.whl", hash = "sha256:f5731963d0dd6c1e207b92bdc7f5b59952d3365444bc9dc8b013d77a4dddf377"},
     {file = "daytona_api_client_async-0.21.0.tar.gz", hash = "sha256:08a22c0d1616f82efa8d157d7be6c432554fd43d75560725c4e0cef0228607d6"},
@@ -2317,9 +2325,10 @@ files = [
 name = "e2b"
 version = "1.5.2"
 description = "E2B SDK that give agents cloud environments"
-optional = false
+optional = true
 python-versions = "<4.0,>=3.9"
 groups = ["main"]
+markers = "extra == \"third-party-runtimes\""
 files = [
     {file = "e2b-1.5.2-py3-none-any.whl", hash = "sha256:8cf755f2ff04098daa7ac778f768eee1df730a6181637fe124210345999890b3"},
     {file = "e2b-1.5.2.tar.gz", hash = "sha256:29ed891ae04ffafff1744c57eff55901200f15030d34ac3fe76d6672e2bf7845"},
@@ -2349,9 +2358,10 @@ files = [
 name = "environs"
 version = "9.5.0"
 description = "simplified environment variable parsing"
-optional = false
+optional = true
 python-versions = ">=3.6"
 groups = ["main"]
+markers = "extra == \"third-party-runtimes\""
 files = [
     {file = "environs-9.5.0-py2.py3-none-any.whl", hash = "sha256:1e549569a3de49c05f856f40bce86979e7d5ffbbc4398e7f338574c220189124"},
     {file = "environs-9.5.0.tar.gz", hash = "sha256:a76307b36fbe856bdca7ee9161e6c466fd7fcffc297109a118c59b54e27e30c9"},
@@ -3053,8 +3063,8 @@ files = [
 google-api-core = {version = ">=1.34.1,<2.0.dev0 || >=2.11.dev0,<3.0.0dev", extras = ["grpc"]}
 google-auth = ">=2.14.1,<2.24.0 || >2.24.0,<2.25.0 || >2.25.0,<3.0.0dev"
 proto-plus = [
-    {version = ">=1.22.3,<2.0.0dev"},
     {version = ">=1.25.0,<2.0.0dev", markers = "python_version >= \"3.13\""},
+    {version = ">=1.22.3,<2.0.0dev"},
 ]
 protobuf = ">=3.20.2,<4.21.0 || >4.21.0,<4.21.1 || >4.21.1,<4.21.2 || >4.21.2,<4.21.3 || >4.21.3,<4.21.4 || >4.21.4,<4.21.5 || >4.21.5,<6.0.0dev"
 
@@ -3076,8 +3086,8 @@ googleapis-common-protos = ">=1.56.2,<2.0.0"
 grpcio = {version = ">=1.49.1,<2.0.0", optional = true, markers = "python_version >= \"3.11\" and extra == \"grpc\""}
 grpcio-status = {version = ">=1.49.1,<2.0.0", optional = true, markers = "python_version >= \"3.11\" and extra == \"grpc\""}
 proto-plus = [
-    {version = ">=1.22.3,<2.0.0"},
     {version = ">=1.25.0,<2.0.0", markers = "python_version >= \"3.13\""},
+    {version = ">=1.22.3,<2.0.0"},
 ]
 protobuf = ">=3.19.5,<3.20.0 || >3.20.0,<3.20.1 || >3.20.1,<4.21.0 || >4.21.0,<4.21.1 || >4.21.1,<4.21.2 || >4.21.2,<4.21.3 || >4.21.3,<4.21.4 || >4.21.4,<4.21.5 || >4.21.5,<7.0.0"
 requests = ">=2.18.0,<3.0.0"
@@ -3295,8 +3305,8 @@ google-api-core = {version = ">=1.34.1,<2.0.dev0 || >=2.11.dev0,<3.0.0", extras
 google-auth = ">=2.14.1,<2.24.0 || >2.24.0,<2.25.0 || >2.25.0,<3.0.0"
 grpc-google-iam-v1 = ">=0.14.0,<1.0.0"
 proto-plus = [
-    {version = ">=1.22.3,<2.0.0"},
     {version = ">=1.25.0,<2.0.0", markers = "python_version >= \"3.13\""},
+    {version = ">=1.22.3,<2.0.0"},
 ]
 protobuf = ">=3.20.2,<4.21.0 || >4.21.0,<4.21.1 || >4.21.1,<4.21.2 || >4.21.2,<4.21.3 || >4.21.3,<4.21.4 || >4.21.4,<4.21.5 || >4.21.5,<7.0.0"
 
@@ -3648,6 +3658,7 @@ groups = ["main", "evaluation"]
 files = [
     {file = "grpclib-0.4.7.tar.gz", hash = "sha256:2988ef57c02b22b7a2e8e961792c41ccf97efc2ace91ae7a5b0de03c363823c3"},
 ]
+markers = {main = "extra == \"third-party-runtimes\""}
 
 [package.dependencies]
 h2 = ">=3.1.0,<5"
@@ -3710,6 +3721,7 @@ files = [
     {file = "h2-4.2.0-py3-none-any.whl", hash = "sha256:479a53ad425bb29af087f3458a61d30780bc818e4ebcf01f0b536ba916462ed0"},
     {file = "h2-4.2.0.tar.gz", hash = "sha256:c8a52129695e88b1a0578d8d2cc6842bbd79128ac685463b887ee278126ad01f"},
 ]
+markers = {main = "extra == \"third-party-runtimes\""}
 
 [package.dependencies]
 hpack = ">=4.1,<5"
@@ -3748,6 +3760,7 @@ files = [
     {file = "hpack-4.1.0-py3-none-any.whl", hash = "sha256:157ac792668d995c657d93111f46b4535ed114f0c9c8d672271bbec7eae1b496"},
     {file = "hpack-4.1.0.tar.gz", hash = "sha256:ec5eca154f7056aa06f196a557655c5b009b382873ac8d1e66e79e87535f1dca"},
 ]
+markers = {main = "extra == \"third-party-runtimes\""}
 
 [[package]]
 name = "html2text"
@@ -3885,6 +3898,7 @@ files = [
     {file = "hyperframe-6.1.0-py3-none-any.whl", hash = "sha256:b03380493a519fce58ea5af42e4a42317bf9bd425596f7a0835ffce80f1a42e5"},
     {file = "hyperframe-6.1.0.tar.gz", hash = "sha256:f630908a00854a7adeabd6382b43923a4c4cd4b821fcb527e6ab9e15382a3b08"},
 ]
+markers = {main = "extra == \"third-party-runtimes\""}
 
 [[package]]
 name = "identify"
@@ -5389,6 +5403,7 @@ files = [
     {file = "marshmallow-3.26.1-py3-none-any.whl", hash = "sha256:3350409f20a70a7e4e11a27661187b77cdcaeb20abca41c1454fe33636bea09c"},
     {file = "marshmallow-3.26.1.tar.gz", hash = "sha256:e6d8affb6cb61d39d26402096dc0aee12d5a26d490a121f118d2e81dc0719dc6"},
 ]
+markers = {main = "extra == \"third-party-runtimes\""}
 
 [package.dependencies]
 packaging = ">=17.0"
@@ -5580,6 +5595,7 @@ files = [
     {file = "modal-1.0.4-py3-none-any.whl", hash = "sha256:6c0d96bb49b09fa47e407a13e49545e32fe0803803b4330fbeb38de5e71209cc"},
     {file = "modal-1.0.4.tar.gz", hash = "sha256:09a575ff5fcae1e690b10187bea6da7ff01430c38ec1785090bf7a7ccee7f408"},
 ]
+markers = {main = "extra == \"third-party-runtimes\""}
 
 [package.dependencies]
 aiohttp = "*"
@@ -6586,8 +6602,8 @@ files = [
 [package.dependencies]
 googleapis-common-protos = ">=1.52,<2.0"
 grpcio = [
-    {version = ">=1.63.2,<2.0.0", markers = "python_version < \"3.13\""},
     {version = ">=1.66.2,<2.0.0", markers = "python_version >= \"3.13\""},
+    {version = ">=1.63.2,<2.0.0", markers = "python_version < \"3.13\""},
 ]
 opentelemetry-api = ">=1.15,<2.0"
 opentelemetry-exporter-otlp-proto-common = "1.34.1"
@@ -9056,9 +9072,10 @@ files = [
 name = "runloop-api-client"
 version = "0.43.0"
 description = "The official Python library for the runloop API"
-optional = false
+optional = true
 python-versions = ">=3.8"
 groups = ["main"]
+markers = "extra == \"third-party-runtimes\""
 files = [
     {file = "runloop_api_client-0.43.0-py3-none-any.whl", hash = "sha256:20b6098b8e0714bb48812a97d5f420f547a98748d52d90789d60a38fa37a2526"},
     {file = "runloop_api_client-0.43.0.tar.gz", hash = "sha256:879ee6a3baaabd7fd9930fe0c187de8458d138afea4f50c1e428cbf73f2ef08a"},
@@ -9350,7 +9367,6 @@ files = [
     {file = "setuptools-80.9.0-py3-none-any.whl", hash = "sha256:062d34222ad13e0cc312a4c02d73f059e86a4acbfbdea8f8f76b28c99f306922"},
     {file = "setuptools-80.9.0.tar.gz", hash = "sha256:f36b47402ecde768dbfafc46e8e4207b4360c654f1f3bb84475f0a28628fb19c"},
 ]
-markers = {evaluation = "platform_system == \"Linux\" and platform_machine == \"x86_64\""}
 
 [package.extras]
 check = ["pytest-checkdocs (>=2.4)", "pytest-ruff (>=0.2.1) ; sys_platform != \"cygwin\"", "ruff (>=0.8.0) ; sys_platform != \"cygwin\""]
@@ -9442,6 +9458,7 @@ files = [
     {file = "sigtools-4.0.1-py2.py3-none-any.whl", hash = "sha256:d216b4cf920bbab0fce636ddc429ed8463a5b533d9e1492acb45a2a1bc36ac6c"},
     {file = "sigtools-4.0.1.tar.gz", hash = "sha256:4b8e135a9cd4d2ea00da670c093372d74e672ba3abb87f4c98d8e73dea54445c"},
 ]
+markers = {main = "extra == \"third-party-runtimes\""}
 
 [package.dependencies]
 attrs = "*"
@@ -9593,7 +9610,7 @@ description = "Standard library aifc redistribution. \"dead battery\"."
 optional = false
 python-versions = "*"
 groups = ["main"]
-markers = "python_version >= \"3.13\""
+markers = "python_version == \"3.13\""
 files = [
     {file = "standard_aifc-3.13.0-py3-none-any.whl", hash = "sha256:f7ae09cc57de1224a0dd8e3eb8f73830be7c3d0bc485de4c1f82b4a7f645ac66"},
     {file = "standard_aifc-3.13.0.tar.gz", hash = "sha256:64e249c7cb4b3daf2fdba4e95721f811bde8bdfc43ad9f936589b7bb2fae2e43"},
@@ -9610,7 +9627,7 @@ description = "Standard library chunk redistribution. \"dead battery\"."
 optional = false
 python-versions = "*"
 groups = ["main"]
-markers = "python_version >= \"3.13\""
+markers = "python_version == \"3.13\""
 files = [
     {file = "standard_chunk-3.13.0-py3-none-any.whl", hash = "sha256:17880a26c285189c644bd5bd8f8ed2bdb795d216e3293e6dbe55bbd848e2982c"},
     {file = "standard_chunk-3.13.0.tar.gz", hash = "sha256:4ac345d37d7e686d2755e01836b8d98eda0d1a3ee90375e597ae43aaf064d654"},
@@ -9798,6 +9815,7 @@ files = [
     {file = "synchronicity-0.9.15-py3-none-any.whl", hash = "sha256:6e3008f54795d73d59fbd133c812734e7c83f4a6f44257cc2a3251237ee8921b"},
     {file = "synchronicity-0.9.15.tar.gz", hash = "sha256:9451d0caef3509e9f980ba62885a3b8ba7ab247845618e9d9c9c8d11da7ee84b"},
 ]
+markers = {main = "extra == \"third-party-runtimes\""}
 
 [package.dependencies]
 sigtools = ">=4.0.1"
@@ -10455,6 +10473,7 @@ files = [
     {file = "types-certifi-2021.10.8.3.tar.gz", hash = "sha256:72cf7798d165bc0b76e1c10dd1ea3097c7063c42c21d664523b928e88b554a4f"},
     {file = "types_certifi-2021.10.8.3-py3-none-any.whl", hash = "sha256:b2d1e325e69f71f7c78e5943d410e650b4707bb0ef32e4ddf3da37f54176e88a"},
 ]
+markers = {main = "extra == \"third-party-runtimes\""}
 
 [[package]]
 name = "types-python-dateutil"
@@ -10843,6 +10862,7 @@ files = [
     {file = "watchfiles-1.0.5-pp39-pypy39_pp73-manylinux_2_17_x86_64.manylinux2014_x86_64.whl", hash = "sha256:c0901429650652d3f0da90bad42bdafc1f9143ff3605633c455c999a2d786cac"},
     {file = "watchfiles-1.0.5.tar.gz", hash = "sha256:b7529b5dcc114679d43827d8c35a07c493ad6f083633d573d81c660abc5979e9"},
 ]
+markers = {main = "extra == \"third-party-runtimes\""}
 
 [package.dependencies]
 anyio = ">=3.0.0"
@@ -11769,7 +11789,10 @@ cffi = {version = ">=1.11", markers = "platform_python_implementation == \"PyPy\
 [package.extras]
 cffi = ["cffi (>=1.11)"]
 
+[extras]
+third-party-runtimes = ["daytona", "e2b", "modal", "runloop-api-client"]
+
 [metadata]
 lock-version = "2.1"
 python-versions = "^3.12,<3.14"
-content-hash = "a2cf9e6529f7ed81f96c6183607aa61f99293027bbd3b4a635733f7c3c8e52cb"
+content-hash = "653c4cda22ec5ff95420d305386c53ba440714fe7c59a9f7f240fdf86b698031"
diff --git a/pyproject.toml b/pyproject.toml
index 19ebf11359..6418d02988 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -14,18 +14,19 @@ readme = "README.md"
 repository = "https://github.com/All-Hands-AI/OpenHands"
 packages = [
   { include = "openhands/**/*" },
+  { include = "third_party/**/*" },
   { include = "pyproject.toml", to = "openhands" },
   { include = "poetry.lock", to = "openhands" },
 ]
 
 [tool.poetry.dependencies]
 python = "^3.12,<3.14"
-litellm = "^1.60.0, !=1.64.4, !=1.67.*"            # avoid 1.64.4 (known bug) & 1.67.* (known bug #10272)
-aiohttp = ">=3.9.0,!=3.11.13"                      # Pin to avoid yanked version 3.11.13
-google-generativeai = "*"                          # To use litellm with Gemini Pro API
-google-api-python-client = "^2.164.0"              # For Google Sheets API
-google-auth-httplib2 = "*"                         # For Google Sheets authentication
-google-auth-oauthlib = "*"                         # For Google Sheets OAuth
+litellm = "^1.60.0, !=1.64.4, !=1.67.*" # avoid 1.64.4 (known bug) & 1.67.* (known bug #10272)
+aiohttp = ">=3.9.0,!=3.11.13"           # Pin to avoid yanked version 3.11.13
+google-generativeai = "*"               # To use litellm with Gemini Pro API
+google-api-python-client = "^2.164.0"   # For Google Sheets API
+google-auth-httplib2 = "*"              # For Google Sheets authentication
+google-auth-oauthlib = "*"              # For Google Sheets OAuth
 termcolor = "*"
 docker = "*"
 fastapi = "*"
@@ -34,9 +35,9 @@ types-toml = "*"
 uvicorn = "*"
 numpy = "*"
 json-repair = "*"
-browsergym-core = "0.13.3"                         # integrate browsergym-core as the browsing interface
+browsergym-core = "0.13.3"              # integrate browsergym-core as the browsing interface
 html2text = "*"
-e2b = ">=1.0.5,<1.6.0"
+
 pexpect = "*"
 jinja2 = "^3.1.3"
 python-multipart = "*"
@@ -52,8 +53,7 @@ whatthepatch = "^1.0.6"
 protobuf = "^5.0.0,<6.0.0"                         # Updated to support newer opentelemetry
 opentelemetry-api = "^1.33.1"
 opentelemetry-exporter-otlp-proto-grpc = "^1.33.1"
-modal = ">=0.66.26,<1.1.0"
-runloop-api-client = "0.43.0"
+
 libtmux = ">=0.37,<0.40"
 pygithub = "^2.5.0"
 joblib = "*"
@@ -80,7 +80,7 @@ bashlex = "^0.18"
 # TODO: These are integrations that should probably be optional
 redis = ">=5.2,<7.0"
 minio = "^7.2.8"
-daytona = "0.21.1"
+
 stripe = ">=11.5,<13.0"
 google-cloud-aiplatform = "*"
 anthropic = { extras = [ "vertex" ], version = "*" }
@@ -88,6 +88,15 @@ boto3 = "*"
 kubernetes = "^33.1.0"
 pyyaml = "^6.0.2"
 
+# Third-party runtime dependencies (optional)
+e2b = { version = ">=1.0.5,<1.6.0", optional = true }
+modal = { version = ">=0.66.26,<1.1.0", optional = true }
+runloop-api-client = { version = "0.43.0", optional = true }
+daytona = { version = "0.21.1", optional = true }
+
+[tool.poetry.extras]
+third_party_runtimes = [ "e2b", "modal", "runloop-api-client", "daytona" ]
+
 [tool.poetry.group.dev]
 optional = true
 
diff --git a/tests/runtime/conftest.py b/tests/runtime/conftest.py
index 96483ccd01..0e3ba32f91 100644
--- a/tests/runtime/conftest.py
+++ b/tests/runtime/conftest.py
@@ -12,11 +12,9 @@ from openhands.core.logger import openhands_logger as logger
 from openhands.events import EventStream
 from openhands.runtime.base import Runtime
 from openhands.runtime.impl.cli.cli_runtime import CLIRuntime
-from openhands.runtime.impl.daytona.daytona_runtime import DaytonaRuntime
 from openhands.runtime.impl.docker.docker_runtime import DockerRuntime
 from openhands.runtime.impl.local.local_runtime import LocalRuntime
 from openhands.runtime.impl.remote.remote_runtime import RemoteRuntime
-from openhands.runtime.impl.runloop.runloop_runtime import RunloopRuntime
 from openhands.runtime.plugins import AgentSkillsRequirement, JupyterRequirement
 from openhands.storage import get_file_store
 from openhands.utils.async_utils import call_async_from_sync
@@ -130,10 +128,6 @@ def get_runtime_classes() -> list[type[Runtime]]:
         return [LocalRuntime]
     elif runtime.lower() == 'remote':
         return [RemoteRuntime]
-    elif runtime.lower() == 'runloop':
-        return [RunloopRuntime]
-    elif runtime.lower() == 'daytona':
-        return [DaytonaRuntime]
     elif runtime.lower() == 'cli':
         return [CLIRuntime]
     else:
diff --git a/tests/unit/test_config.py b/tests/unit/test_config.py
index 52ea452c6f..bb500dcacd 100644
--- a/tests/unit/test_config.py
+++ b/tests/unit/test_config.py
@@ -990,34 +990,15 @@ def test_api_keys_repr_str():
     app_config = OpenHandsConfig(
         llms={'llm': llm_config},
         agents={'agent': agent_config},
-        e2b_api_key='my_e2b_api_key',
-        jwt_secret='my_jwt_secret',
-        modal_api_token_id='my_modal_api_token_id',
-        modal_api_token_secret='my_modal_api_token_secret',
-        runloop_api_key='my_runloop_api_key',
-        daytona_api_key='my_daytona_api_key',
+        search_api_key='my_search_api_key',
     )
-    assert 'my_e2b_api_key' not in repr(app_config)
-    assert 'my_e2b_api_key' not in str(app_config)
-    assert 'my_jwt_secret' not in repr(app_config)
-    assert 'my_jwt_secret' not in str(app_config)
-    assert 'my_modal_api_token_id' not in repr(app_config)
-    assert 'my_modal_api_token_id' not in str(app_config)
-    assert 'my_modal_api_token_secret' not in repr(app_config)
-    assert 'my_modal_api_token_secret' not in str(app_config)
-    assert 'my_runloop_api_key' not in repr(app_config)
-    assert 'my_runloop_api_key' not in str(app_config)
-    assert 'my_daytona_api_key' not in repr(app_config)
-    assert 'my_daytona_api_key' not in str(app_config)
+
+    assert 'my_search_api_key' not in repr(app_config)
+    assert 'my_search_api_key' not in str(app_config)
 
     # Check that no other attrs in OpenHandsConfig have 'key' or 'token' in their name
     # This will fail when new attrs are added, and attract attention
     known_key_token_attrs_app = [
-        'e2b_api_key',
-        'modal_api_token_id',
-        'modal_api_token_secret',
-        'runloop_api_key',
-        'daytona_api_key',
         'search_api_key',
     ]
     for attr_name in OpenHandsConfig.model_fields.keys():
diff --git a/tests/unit/test_logging.py b/tests/unit/test_logging.py
index 7055f69b18..8c65c338e1 100644
--- a/tests/unit/test_logging.py
+++ b/tests/unit/test_logging.py
@@ -84,11 +84,11 @@ def test_llm_config_attributes_masking(test_handler):
 
 def test_app_config_attributes_masking(test_handler):
     logger, stream = test_handler
-    app_config = OpenHandsConfig(e2b_api_key='e2b-xyz789')
+    app_config = OpenHandsConfig(search_api_key='search-xyz789')
     logger.info(f'App Config: {app_config}')
     log_output = stream.getvalue()
     assert 'github_token' not in log_output
-    assert 'e2b-xyz789' not in log_output
+    assert 'search-xyz789' not in log_output
     assert 'ghp_abcdefghijklmnopqrstuvwxyz' not in log_output
 
 
diff --git a/third_party/__init__.py b/third_party/__init__.py
new file mode 100644
index 0000000000..fb4b6e3669
--- /dev/null
+++ b/third_party/__init__.py
@@ -0,0 +1,14 @@
+"""Third-party runtime implementations for OpenHands.
+
+This module contains runtime implementations provided by third-party vendors.
+These runtimes are optional and require additional dependencies to be installed.
+
+To use third-party runtimes, install OpenHands with the third_party_runtimes extra:
+    pip install openhands-ai[third_party_runtimes]
+
+Available third-party runtimes:
+- daytona: Daytona cloud development environment
+- e2b: E2B secure sandbox environment  
+- modal: Modal cloud compute platform
+- runloop: Runloop AI sandbox environment
+"""
\ No newline at end of file
diff --git a/containers/e2b-sandbox/Dockerfile b/third_party/containers/e2b-sandbox/Dockerfile
similarity index 100%
rename from containers/e2b-sandbox/Dockerfile
rename to third_party/containers/e2b-sandbox/Dockerfile
diff --git a/containers/e2b-sandbox/README.md b/third_party/containers/e2b-sandbox/README.md
similarity index 100%
rename from containers/e2b-sandbox/README.md
rename to third_party/containers/e2b-sandbox/README.md
diff --git a/containers/e2b-sandbox/e2b.toml b/third_party/containers/e2b-sandbox/e2b.toml
similarity index 100%
rename from containers/e2b-sandbox/e2b.toml
rename to third_party/containers/e2b-sandbox/e2b.toml
diff --git a/third_party/runtime/__init__.py b/third_party/runtime/__init__.py
new file mode 100644
index 0000000000..c5cdfaaa5c
--- /dev/null
+++ b/third_party/runtime/__init__.py
@@ -0,0 +1 @@
+"""Third-party runtime implementations."""
\ No newline at end of file
diff --git a/third_party/runtime/impl/__init__.py b/third_party/runtime/impl/__init__.py
new file mode 100644
index 0000000000..27f1695b76
--- /dev/null
+++ b/third_party/runtime/impl/__init__.py
@@ -0,0 +1 @@
+"""Third-party runtime implementation modules."""
\ No newline at end of file
diff --git a/openhands/runtime/impl/daytona/README.md b/third_party/runtime/impl/daytona/README.md
similarity index 100%
rename from openhands/runtime/impl/daytona/README.md
rename to third_party/runtime/impl/daytona/README.md
diff --git a/third_party/runtime/impl/daytona/__init__.py b/third_party/runtime/impl/daytona/__init__.py
new file mode 100644
index 0000000000..467302bdbb
--- /dev/null
+++ b/third_party/runtime/impl/daytona/__init__.py
@@ -0,0 +1,7 @@
+"""Daytona runtime implementation.
+
+This runtime reads configuration directly from environment variables:
+- DAYTONA_API_KEY: API key for Daytona authentication
+- DAYTONA_API_URL: Daytona API URL endpoint (defaults to https://app.daytona.io/api)
+- DAYTONA_TARGET: Daytona target region (defaults to 'eu')
+"""
\ No newline at end of file
diff --git a/openhands/runtime/impl/daytona/daytona_runtime.py b/third_party/runtime/impl/daytona/daytona_runtime.py
similarity index 94%
rename from openhands/runtime/impl/daytona/daytona_runtime.py
rename to third_party/runtime/impl/daytona/daytona_runtime.py
index 82e6f5bd57..631946c63d 100644
--- a/openhands/runtime/impl/daytona/daytona_runtime.py
+++ b/third_party/runtime/impl/daytona/daytona_runtime.py
@@ -1,3 +1,4 @@
+import os
 from typing import Callable
 
 import httpx
@@ -45,7 +46,13 @@ class DaytonaRuntime(ActionExecutionClient):
         user_id: str | None = None,
         git_provider_tokens: PROVIDER_TOKEN_TYPE | None = None,
     ):
-        assert config.daytona_api_key, 'Daytona API key is required'
+        # Read Daytona configuration from environment variables
+        daytona_api_key = os.getenv('DAYTONA_API_KEY')
+        if not daytona_api_key:
+            raise ValueError('DAYTONA_API_KEY environment variable is required for Daytona runtime')
+        
+        daytona_api_url = os.getenv('DAYTONA_API_URL', 'https://app.daytona.io/api')
+        daytona_target = os.getenv('DAYTONA_TARGET', 'eu')
 
         self.config = config
         self.sid = sid
@@ -53,9 +60,9 @@ class DaytonaRuntime(ActionExecutionClient):
         self._vscode_url: str | None = None
 
         daytona_config = DaytonaConfig(
-            api_key=config.daytona_api_key.get_secret_value(),
-            server_url=config.daytona_api_url,
-            target=config.daytona_target,
+            api_key=daytona_api_key,
+            server_url=daytona_api_url,
+            target=daytona_target,
         )
         self.daytona = Daytona(daytona_config)
 
diff --git a/openhands/runtime/impl/e2b/README.md b/third_party/runtime/impl/e2b/README.md
similarity index 100%
rename from openhands/runtime/impl/e2b/README.md
rename to third_party/runtime/impl/e2b/README.md
diff --git a/third_party/runtime/impl/e2b/__init__.py b/third_party/runtime/impl/e2b/__init__.py
new file mode 100644
index 0000000000..2cbb9a612e
--- /dev/null
+++ b/third_party/runtime/impl/e2b/__init__.py
@@ -0,0 +1,5 @@
+"""E2B runtime implementation.
+
+This runtime reads configuration directly from environment variables:
+- E2B_API_KEY: API key for E2B authentication
+"""
\ No newline at end of file
diff --git a/openhands/runtime/impl/e2b/e2b_runtime.py b/third_party/runtime/impl/e2b/e2b_runtime.py
similarity index 93%
rename from openhands/runtime/impl/e2b/e2b_runtime.py
rename to third_party/runtime/impl/e2b/e2b_runtime.py
index 29a0249e22..d32f47ee10 100644
--- a/openhands/runtime/impl/e2b/e2b_runtime.py
+++ b/third_party/runtime/impl/e2b/e2b_runtime.py
@@ -16,8 +16,8 @@ from openhands.integrations.provider import PROVIDER_TOKEN_TYPE
 from openhands.runtime.impl.action_execution.action_execution_client import (
     ActionExecutionClient,
 )
-from openhands.runtime.impl.e2b.filestore import E2BFileStore
-from openhands.runtime.impl.e2b.sandbox import E2BSandbox
+from third_party.runtime.impl.e2b.filestore import E2BFileStore
+from third_party.runtime.impl.e2b.sandbox import E2BSandbox
 from openhands.runtime.plugins import PluginRequirement
 from openhands.runtime.utils.files import insert_lines, read_lines
 
@@ -50,7 +50,7 @@ class E2BRuntime(ActionExecutionClient):
             git_provider_tokens,
         )
         if sandbox is None:
-            self.sandbox = E2BSandbox()
+            self.sandbox = E2BSandbox(config.sandbox)
         if not isinstance(self.sandbox, E2BSandbox):
             raise ValueError('E2BRuntime requires an E2BSandbox')
         self.file_store = E2BFileStore(self.sandbox.filesystem)
diff --git a/openhands/runtime/impl/e2b/filestore.py b/third_party/runtime/impl/e2b/filestore.py
similarity index 100%
rename from openhands/runtime/impl/e2b/filestore.py
rename to third_party/runtime/impl/e2b/filestore.py
diff --git a/openhands/runtime/impl/e2b/sandbox.py b/third_party/runtime/impl/e2b/sandbox.py
similarity index 93%
rename from openhands/runtime/impl/e2b/sandbox.py
rename to third_party/runtime/impl/e2b/sandbox.py
index 44c015d6f6..d48529243c 100644
--- a/openhands/runtime/impl/e2b/sandbox.py
+++ b/third_party/runtime/impl/e2b/sandbox.py
@@ -19,11 +19,16 @@ class E2BBox:
     def __init__(
         self,
         config: SandboxConfig,
-        e2b_api_key: str,
         template: str = 'openhands',
     ):
         self.config = copy.deepcopy(config)
         self.initialize_plugins: bool = config.initialize_plugins
+        
+        # Read API key from environment variable
+        e2b_api_key = os.getenv('E2B_API_KEY')
+        if not e2b_api_key:
+            raise ValueError('E2B_API_KEY environment variable is required for E2B runtime')
+        
         self.sandbox = E2BSandbox(
             api_key=e2b_api_key,
             template=template,
@@ -112,3 +117,7 @@ class E2BBox:
 
     def get_working_directory(self):
         return self.sandbox.cwd
+
+
+# Alias for backward compatibility
+E2BSandbox = E2BBox
diff --git a/third_party/runtime/impl/modal/__init__.py b/third_party/runtime/impl/modal/__init__.py
new file mode 100644
index 0000000000..8ab3aa7fac
--- /dev/null
+++ b/third_party/runtime/impl/modal/__init__.py
@@ -0,0 +1,6 @@
+"""Modal runtime implementation.
+
+This runtime reads configuration directly from environment variables:
+- MODAL_TOKEN_ID: Modal API token ID for authentication
+- MODAL_TOKEN_SECRET: Modal API token secret for authentication
+"""
\ No newline at end of file
diff --git a/openhands/runtime/impl/modal/modal_runtime.py b/third_party/runtime/impl/modal/modal_runtime.py
similarity index 95%
rename from openhands/runtime/impl/modal/modal_runtime.py
rename to third_party/runtime/impl/modal/modal_runtime.py
index 6ce8277156..dcc4814aa2 100644
--- a/openhands/runtime/impl/modal/modal_runtime.py
+++ b/third_party/runtime/impl/modal/modal_runtime.py
@@ -57,16 +57,22 @@ class ModalRuntime(ActionExecutionClient):
         user_id: str | None = None,
         git_provider_tokens: PROVIDER_TOKEN_TYPE | None = None,
     ):
-        assert config.modal_api_token_id, 'Modal API token id is required'
-        assert config.modal_api_token_secret, 'Modal API token secret is required'
+        # Read Modal API credentials from environment variables
+        modal_token_id = os.getenv('MODAL_TOKEN_ID')
+        modal_token_secret = os.getenv('MODAL_TOKEN_SECRET')
+        
+        if not modal_token_id:
+            raise ValueError('MODAL_TOKEN_ID environment variable is required for Modal runtime')
+        if not modal_token_secret:
+            raise ValueError('MODAL_TOKEN_SECRET environment variable is required for Modal runtime')
 
         self.config = config
         self.sandbox = None
         self.sid = sid
 
         self.modal_client = modal.Client.from_credentials(
-            config.modal_api_token_id.get_secret_value(),
-            config.modal_api_token_secret.get_secret_value(),
+            modal_token_id,
+            modal_token_secret,
         )
         self.app = modal.App.lookup(
             'openhands', create_if_missing=True, client=self.modal_client
diff --git a/openhands/runtime/impl/runloop/README.md b/third_party/runtime/impl/runloop/README.md
similarity index 100%
rename from openhands/runtime/impl/runloop/README.md
rename to third_party/runtime/impl/runloop/README.md
diff --git a/third_party/runtime/impl/runloop/__init__.py b/third_party/runtime/impl/runloop/__init__.py
new file mode 100644
index 0000000000..a775d72587
--- /dev/null
+++ b/third_party/runtime/impl/runloop/__init__.py
@@ -0,0 +1,5 @@
+"""Runloop runtime implementation.
+
+This runtime reads configuration directly from environment variables:
+- RUNLOOP_API_KEY: API key for Runloop authentication
+"""
\ No newline at end of file
diff --git a/openhands/runtime/impl/runloop/runloop_runtime.py b/third_party/runtime/impl/runloop/runloop_runtime.py
similarity index 95%
rename from openhands/runtime/impl/runloop/runloop_runtime.py
rename to third_party/runtime/impl/runloop/runloop_runtime.py
index 00b684d489..b3e37b143d 100644
--- a/openhands/runtime/impl/runloop/runloop_runtime.py
+++ b/third_party/runtime/impl/runloop/runloop_runtime.py
@@ -1,4 +1,5 @@
 import logging
+import os
 from typing import Callable
 
 import tenacity
@@ -40,11 +41,15 @@ class RunloopRuntime(ActionExecutionClient):
         user_id: str | None = None,
         git_provider_tokens: PROVIDER_TOKEN_TYPE | None = None,
     ):
-        assert config.runloop_api_key is not None, 'Runloop API key is required'
+        # Read Runloop API key from environment variable
+        runloop_api_key = os.getenv('RUNLOOP_API_KEY')
+        if not runloop_api_key:
+            raise ValueError('RUNLOOP_API_KEY environment variable is required for Runloop runtime')
+            
         self.devbox: DevboxView | None = None
         self.config = config
         self.runloop_api_client = Runloop(
-            bearer_token=config.runloop_api_key.get_secret_value(),
+            bearer_token=runloop_api_key,
         )
         self.container_name = CONTAINER_NAME_PREFIX + sid
         super().__init__(