diff --git a/crates/nu-cli/src/cli.rs b/crates/nu-cli/src/cli.rs
index c0d8a2901d..cd14373b71 100644
--- a/crates/nu-cli/src/cli.rs
+++ b/crates/nu-cli/src/cli.rs
@@ -22,8 +22,7 @@ use rustyline::{
     KeyPress, Movement, Word,
 };
 use std::error::Error;
-use std::fs::{File, OpenOptions};
-use std::io::{BufRead, BufReader, Read, Write};
+use std::io::{BufRead, BufReader, Write};
 use std::iter::Iterator;
 use std::path::{Path, PathBuf};
 use std::sync::atomic::Ordering;
diff --git a/crates/nu-cli/src/env/environment.rs b/crates/nu-cli/src/env/environment.rs
index a7f63ca622..3e8ab969d3 100644
--- a/crates/nu-cli/src/env/environment.rs
+++ b/crates/nu-cli/src/env/environment.rs
@@ -2,7 +2,14 @@ use crate::data::config::Conf;
 use indexmap::{indexmap, IndexSet};
 use nu_protocol::{Primitive, UntaggedValue, Value};
 use std::ffi::OsString;
-use std::{collections::HashMap, fmt::Debug, fs::File, io::Read, path::PathBuf};
+use std::io::Write;
+use std::{
+    collections::HashMap,
+    fmt::Debug,
+    fs::{File, OpenOptions},
+    io::Read,
+    path::PathBuf,
+};
 
 pub trait Env: Debug + Send {
     fn env(&self) -> Option<Value>;
@@ -51,7 +58,6 @@ impl DirectorySpecificEnvironment {
 
         let mut vars_to_add = HashMap::new();
         for dir in &self.whitelisted_directories {
-
             //Start in the current directory, then traverse towards the root directory with working_dir to check for .nu files
             let mut working_dir = Some(current_dir.as_path());
 
@@ -67,9 +73,33 @@ impl DirectorySpecificEnvironment {
                     let toml_doc = contents.parse::<toml::Value>().unwrap();
                     let vars_in_current_file = toml_doc.get("env").unwrap().as_table().unwrap();
 
+                    let mut keys_in_file = vec![];
                     for (k, v) in vars_in_current_file {
                         vars_to_add.insert(k.clone(), v.as_str().unwrap().to_string());
+                        keys_in_file.push(k.clone());
                     }
+                    self.added_env_vars.insert(wdir.to_path_buf(), keys_in_file);
+                    break;
+                } else {
+                    working_dir = working_dir.unwrap().parent();
+                }
+            }
+        }
+        Ok(vars_to_add)
+    }
+
+    //If the user has left directories which added env vars through .nurc, we clear those vars
+    //For each directory d in nurc_env_vars:
+    //if current_dir does not have d as a parent (possibly recursive), the vars set by d should be removed
+    pub fn env_vars_to_delete(&mut self) -> std::io::Result<Vec<String>> {
+        let current_dir = std::env::current_dir()?;
+
+        let mut new_nurc_env_vars = HashMap::new();
+        for (d, v) in self.added_env_vars.iter() {
+            let mut working_dir = Some(current_dir.as_path());
+            while working_dir.is_some() {
+                if working_dir.unwrap() == d {
+                    new_nurc_env_vars.insert(d.clone(), v.clone());
                     break;
                 } else {
                     working_dir = working_dir.unwrap().parent();
@@ -77,7 +107,14 @@ impl DirectorySpecificEnvironment {
             }
         }
 
-        Ok(vars_to_add)
+        let mut vars_to_delete = vec![];
+        for (path, vals) in self.added_env_vars.iter() {
+            if !new_nurc_env_vars.contains_key(path) {
+                vars_to_delete.extend(vals.clone());
+            }
+        }
+
+        Ok(vars_to_delete)
     }
 }
 
@@ -97,7 +134,6 @@ impl Environment {
         }
     }
 
-
     pub fn from_config<T: Conf>(configuration: &T) -> Environment {
         let env = configuration.env();
         let path = configuration.path();
@@ -128,13 +164,27 @@ impl Environment {
     }
 
     pub fn maintain_directory_environment(&mut self) -> std::io::Result<()> {
-        let vars_to_add = self.direnv.env_vars_to_add()?;
-        vars_to_add.iter().for_each(|(k, v)| {
+        self.direnv.env_vars_to_add()?.iter().for_each(|(k, v)| {
             self.add_env(&k, &v, true);
         });
+
+        self.direnv.env_vars_to_delete()?.iter().for_each(|v| {
+            self.remove_env(v);
+        });
         Ok(())
     }
 
+    fn remove_env(&mut self, key: &str) {
+        if let Some(Value {
+            value: UntaggedValue::Row(ref mut envs),
+            tag: _,
+        }) = self.environment_vars
+        {
+            envs.entries.remove(key);
+            std::env::remove_var(key);
+        };
+    }
+
     pub fn morph<T: Conf>(&mut self, configuration: &T) {
         self.environment_vars = configuration.env();
         self.path_vars = configuration.path();
diff --git a/crates/nu-cli/src/env/environment_syncer.rs b/crates/nu-cli/src/env/environment_syncer.rs
index c29eeaba85..e9c99f3be3 100644
--- a/crates/nu-cli/src/env/environment_syncer.rs
+++ b/crates/nu-cli/src/env/environment_syncer.rs
@@ -1,15 +1,8 @@
 use crate::context::Context;
 use crate::data::config::{Conf, NuConfig};
 use crate::env::environment::{Env, Environment};
-use nu_protocol::{Primitive, UntaggedValue, Value};
 use parking_lot::Mutex;
-use std::io::Read;
-use std::io::Write;
-use std::{
-    fs::{File, OpenOptions},
-    path::{Path, PathBuf},
-    sync::Arc,
-};
+use std::sync::Arc;
 
 pub struct EnvironmentSyncer {
     pub env: Arc<Mutex<Box<Environment>>>,