Abstract: An environmentally controlled vending machine utilizing real-time monitoring of environmental parameters and feedback control for improved storage conditions for tobacco products such as cigars and other humidity sensitive products, is disclosed. A number of environmental parameters, such as temperature and humidity, are balanced using a closed loop feedback control process in response to measured system parameters. The vending machine includes a controller, one or more remote sensors which monitor the environmental conditions within the vending machine housing, a fan, a heater strip, a cooling unit, a humidifier, and a payment and selection system. The vending machine stores and maintains tobacco products, or other humidity sensitive products, at a recommended temperature and humidity, and includes means for continuously monitoring and controlling the environment to retain the freshness and value of the respective product.