diff --git a/crates/nu-cmd-lang/src/core_commands/overlay/hide.rs b/crates/nu-cmd-lang/src/core_commands/overlay/hide.rs
index 666fedead8..b747ccd504 100644
--- a/crates/nu-cmd-lang/src/core_commands/overlay/hide.rs
+++ b/crates/nu-cmd-lang/src/core_commands/overlay/hide.rs
@@ -96,6 +96,7 @@ impl Command for OverlayHide {
         for (name, val) in env_vars_to_keep {
             stack.add_env_var(name, val);
         }
+        stack.update_config(engine_state)?;
         Ok(PipelineData::empty())
     }
 
diff --git a/crates/nu-cmd-lang/src/core_commands/overlay/use_.rs b/crates/nu-cmd-lang/src/core_commands/overlay/use_.rs
index bf29087a61..5ddf4c5f81 100644
--- a/crates/nu-cmd-lang/src/core_commands/overlay/use_.rs
+++ b/crates/nu-cmd-lang/src/core_commands/overlay/use_.rs
@@ -178,6 +178,7 @@ impl Command for OverlayUse {
             }
         } else {
             caller_stack.add_overlay(overlay_name);
+            caller_stack.update_config(engine_state)?;
         }
 
         Ok(PipelineData::empty())
diff --git a/tests/overlays/mod.rs b/tests/overlays/mod.rs
index cd101bda6d..55d9f5a347 100644
--- a/tests/overlays/mod.rs
+++ b/tests/overlays/mod.rs
@@ -918,6 +918,74 @@ fn overlay_use_export_env() {
     assert_eq!(actual_repl.out, "foo");
 }
 
+#[test]
+fn overlay_use_export_env_config_affected() {
+    let inp = &[
+        "mut out = []",
+        "$env.config.filesize.unit = 'metric'",
+        "$out ++= [(20MB | into string)]",
+        "module spam { export-env { $env.config.filesize.unit = 'binary' } }",
+        "overlay use spam",
+        "$out ++= [(20MiB | into string)]",
+        r#"$out | to json --raw"#,
+    ];
+
+    let actual = nu!(&inp.join("; "));
+    let actual_repl = nu!(nu_repl_code(inp));
+
+    assert_eq!(actual.out, r#"["20.0 MB","20.0 MiB"]"#);
+    assert_eq!(actual_repl.out, r#"["20.0 MB","20.0 MiB"]"#);
+}
+
+#[test]
+fn overlay_hide_config_affected() {
+    let inp = &[
+        "mut out = []",
+        "$env.config.filesize.unit = 'metric'",
+        "$out ++= [(20MB | into string)]",
+        "module spam { export-env { $env.config.filesize.unit = 'binary' } }",
+        "overlay use spam",
+        "$out ++= [(20MiB | into string)]",
+        "overlay hide",
+        "$out ++= [(20MB | into string)]",
+        r#"$out | to json --raw"#,
+    ];
+
+    // Can't hide overlay within the same source file
+    // let actual = nu!(&inp.join("; "));
+    let actual_repl = nu!(nu_repl_code(inp));
+
+    // assert_eq!(actual.out, r#"["20.0 MB","20.0 MiB","20.0 MB"]"#);
+    assert_eq!(actual_repl.out, r#"["20.0 MB","20.0 MiB","20.0 MB"]"#);
+}
+
+#[test]
+fn overlay_use_after_hide_config_affected() {
+    let inp = &[
+        "mut out = []",
+        "$env.config.filesize.unit = 'metric'",
+        "$out ++= [(20MB | into string)]",
+        "module spam { export-env { $env.config.filesize.unit = 'binary' } }",
+        "overlay use spam",
+        "$out ++= [(20MiB | into string)]",
+        "overlay hide",
+        "$out ++= [(20MB | into string)]",
+        "overlay use spam",
+        "$out ++= [(20MiB | into string)]",
+        r#"$out | to json --raw"#,
+    ];
+
+    // Can't hide overlay within the same source file
+    // let actual = nu!(&inp.join("; "));
+    let actual_repl = nu!(nu_repl_code(inp));
+
+    // assert_eq!(actual.out, r#"["20.0 MB","20.0 MiB","20.0 MB"]"#);
+    assert_eq!(
+        actual_repl.out,
+        r#"["20.0 MB","20.0 MiB","20.0 MB","20.0 MiB"]"#
+    );
+}
+
 #[test]
 fn overlay_use_export_env_hide() {
     let inp = &[