diff --git a/crates/nu-cli/src/env/directory_specific_environment.rs b/crates/nu-cli/src/env/directory_specific_environment.rs
index b6755216cf..6f6b05e249 100644
--- a/crates/nu-cli/src/env/directory_specific_environment.rs
+++ b/crates/nu-cli/src/env/directory_specific_environment.rs
@@ -12,6 +12,8 @@ use std::{
     path::{Path, PathBuf},
 };
 
+//Tests reside in /nushell/tests/shell/pipeline/commands/internal.rs
+
 type EnvKey = String;
 type EnvVal = OsString;
 #[derive(Debug, Default)]
@@ -82,14 +84,11 @@ impl DirectorySpecificEnvironment {
         //We track which keys we set as we go up the directory hierarchy, so that we don't overwrite a value we set in a subdir.
         let mut added_keys = IndexSet::new();
 
-        //We note which directories we pass so we can clear unvisited dirs later.
-        let mut seen_directories = IndexSet::new();
-
-        //Add all .nu-envs until we reach a dir which we have already added, or we reached the root.
+        let mut new_visited_dirs = IndexSet::new();
         let mut popped = true;
-        while popped && !self.visited_dirs.contains(&dir) {
+        while popped {
             let nu_env_file = dir.join(".nu-env");
-            if nu_env_file.exists() {
+            if nu_env_file.exists() && !self.visited_dirs.contains(&dir) {
                 let nu_env_doc = self.toml_if_trusted(&nu_env_file)?;
 
                 //add regular variables from the [env section]
@@ -98,7 +97,6 @@ impl DirectorySpecificEnvironment {
                         self.maybe_add_key(&mut added_keys, &dir, &env_key, &env_val);
                     }
                 }
-                self.visited_dirs.insert(dir.clone());
 
                 //Add variables that need to evaluate scripts to run, from [scriptvars] section
                 if let Some(sv) = nu_env_doc.scriptvars {
@@ -122,14 +120,14 @@ impl DirectorySpecificEnvironment {
                     self.exitscripts.insert(dir.clone(), es);
                 }
             }
-            seen_directories.insert(dir.clone());
+            new_visited_dirs.insert(dir.clone());
             popped = dir.pop();
         }
 
         //Time to clear out vars set by directories that we have left.
         let mut new_vars = IndexMap::new();
         for (dir, dirmap) in self.added_vars.drain(..) {
-            if seen_directories.contains(&dir) {
+            if new_visited_dirs.contains(&dir) {
                 new_vars.insert(dir, dirmap);
             } else {
                 for (k, v) in dirmap {
@@ -142,17 +140,10 @@ impl DirectorySpecificEnvironment {
             }
         }
 
-        let mut new_visited = IndexSet::new();
-        for dir in self.visited_dirs.drain(..) {
-            if seen_directories.contains(&dir) {
-                new_visited.insert(dir);
-            }
-        }
-
         //Run exitscripts, can not be done in same loop as new vars as some files can contain only exitscripts
         let mut new_exitscripts = IndexMap::new();
         for (dir, scripts) in self.exitscripts.drain(..) {
-            if seen_directories.contains(&dir) {
+            if new_visited_dirs.contains(&dir) {
                 new_exitscripts.insert(dir, scripts);
             } else {
                 for s in scripts {
@@ -161,7 +152,7 @@ impl DirectorySpecificEnvironment {
             }
         }
 
-        self.visited_dirs = new_visited;
+        self.visited_dirs = new_visited_dirs;
         self.exitscripts = new_exitscripts;
         self.added_vars = new_vars;
         self.last_seen_directory = current_dir()?;
diff --git a/tests/shell/pipeline/commands/internal.rs b/tests/shell/pipeline/commands/internal.rs
index 6b23690540..4233d4fd13 100644
--- a/tests/shell/pipeline/commands/internal.rs
+++ b/tests/shell/pipeline/commands/internal.rs
@@ -38,9 +38,11 @@ fn takes_rows_of_nu_value_strings_and_pipes_it_to_stdin_of_external() {
     })
 }
 
-#[cfg(feature = "which")]
+#[cfg(feature = "directories-support")]
+#[cfg(feature = "which-support")]
 #[test]
 fn autoenv() {
+    use nu_test_support::fs::Stub::FileWithContent;
     Playground::setup("autoenv_test", |dirs, sandbox| {
         sandbox.mkdir("foo/bar");
         sandbox.mkdir("bizz/buzz");
@@ -105,6 +107,15 @@ fn autoenv() {
         );
         assert!(actual.out.contains("hello.txt"));
 
+        // If inside a directory with exitscripts, entering a subdirectory should not trigger the exitscripts.
+        let actual = nu!(
+            cwd: dirs.test(),
+            r#"autoenv trust
+               cd foob
+               ls | where name == "bye.txt" | get name"#
+        );
+        assert!(!actual.out.contains("bye.txt"));
+
         // Make sure entry scripts are run when re-visiting a directory
         let actual = nu!(
             cwd: dirs.test(),