diff --git a/crates/nu-command/tests/commands/do_.rs b/crates/nu-command/tests/commands/do_.rs
index c4aa962828..ff58cc413d 100644
--- a/crates/nu-command/tests/commands/do_.rs
+++ b/crates/nu-command/tests/commands/do_.rs
@@ -151,6 +151,6 @@ fn capture_error_with_both_stdout_stderr_messages_not_hang_nushell() {
 
 #[test]
 fn ignore_error_works_with_list_stream() {
-    let actual = nu!(r#"do -i { ["a", $nothing, "b"] | ansi strip }"#);
+    let actual = nu!(r#"do -i { ["a", null, "b"] | ansi strip }"#);
     assert!(actual.err.is_empty());
 }
diff --git a/crates/nu-engine/src/eval.rs b/crates/nu-engine/src/eval.rs
index 13af13b1de..c89ab6e8b6 100644
--- a/crates/nu-engine/src/eval.rs
+++ b/crates/nu-engine/src/eval.rs
@@ -6,8 +6,8 @@ use nu_protocol::{
         Expression, Math, Operator, PathMember, PipelineElement, Redirection,
     },
     engine::{EngineState, Stack},
-    IntoInterruptiblePipelineData, IntoPipelineData, PipelineData, Range, Record, ShellError, Span,
-    Spanned, Unit, Value, VarId, ENV_VARIABLE_ID,
+    report_error_new, IntoInterruptiblePipelineData, IntoPipelineData, PipelineData, Range, Record,
+    ShellError, Span, Spanned, Unit, Value, VarId, ENV_VARIABLE_ID,
 };
 use std::collections::HashMap;
 
@@ -1127,6 +1127,20 @@ pub fn eval_variable(
     span: Span,
 ) -> Result<Value, ShellError> {
     match var_id {
+        // $nothing
+        nu_protocol::NOTHING_VARIABLE_ID => {
+            report_error_new(
+                engine_state,
+                &ShellError::GenericError(
+                    "Deprecated variable".into(),
+                    "`$nothing` is deprecated and will be removed in 0.87.".into(),
+                    Some(span),
+                    Some("Use `null` instead".into()),
+                    vec![],
+                ),
+            );
+            Ok(Value::nothing(span))
+        }
         // $nu
         nu_protocol::NU_VARIABLE_ID => {
             if let Some(val) = engine_state.get_constant(var_id) {
diff --git a/crates/nu-parser/src/parser.rs b/crates/nu-parser/src/parser.rs
index 567bc7ad3f..c927a16d41 100644
--- a/crates/nu-parser/src/parser.rs
+++ b/crates/nu-parser/src/parser.rs
@@ -17,7 +17,7 @@ use nu_protocol::{
     engine::StateWorkingSet,
     eval_const::{eval_constant, value_as_string},
     span, BlockId, DidYouMean, Flag, ParseError, PositionalArg, Signature, Span, Spanned,
-    SyntaxShape, Type, Unit, VarId, ENV_VARIABLE_ID, IN_VARIABLE_ID,
+    SyntaxShape, Type, Unit, VarId, IN_VARIABLE_ID, NOTHING_VARIABLE_ID,
 };
 
 use crate::parse_keywords::{
@@ -1810,7 +1810,7 @@ pub fn parse_variable_expr(working_set: &mut StateWorkingSet, span: Span) -> Exp
 
     if contents == b"$nothing" {
         return Expression {
-            expr: Expr::Nothing,
+            expr: Expr::Var(nu_protocol::NOTHING_VARIABLE_ID),
             span,
             ty: Type::Nothing,
             custom_completion: None,
@@ -6118,7 +6118,9 @@ pub fn discover_captures_in_expr(
             discover_captures_in_expr(working_set, expr, seen, seen_blocks, output)?;
         }
         Expr::Var(var_id) => {
-            if (*var_id > ENV_VARIABLE_ID || *var_id == IN_VARIABLE_ID) && !seen.contains(var_id) {
+            if (*var_id > NOTHING_VARIABLE_ID || *var_id == IN_VARIABLE_ID)
+                && !seen.contains(var_id)
+            {
                 output.push((*var_id, expr.span));
             }
         }
diff --git a/crates/nu-protocol/src/engine/engine_state.rs b/crates/nu-protocol/src/engine/engine_state.rs
index 952aec11cc..41b8bda672 100644
--- a/crates/nu-protocol/src/engine/engine_state.rs
+++ b/crates/nu-protocol/src/engine/engine_state.rs
@@ -113,6 +113,7 @@ const REGEX_CACHE_SIZE: usize = 100; // must be nonzero, otherwise will panic
 pub const NU_VARIABLE_ID: usize = 0;
 pub const IN_VARIABLE_ID: usize = 1;
 pub const ENV_VARIABLE_ID: usize = 2;
+pub const NOTHING_VARIABLE_ID: usize = 3;
 // NOTE: If you add more to this list, make sure to update the > checks based on the last in the list
 
 impl EngineState {
diff --git a/crates/nu-protocol/src/lib.rs b/crates/nu-protocol/src/lib.rs
index 854f5aa30a..2cf80de213 100644
--- a/crates/nu-protocol/src/lib.rs
+++ b/crates/nu-protocol/src/lib.rs
@@ -27,7 +27,7 @@ pub use alias::*;
 pub use cli_error::*;
 pub use config::*;
 pub use did_you_mean::did_you_mean;
-pub use engine::{ENV_VARIABLE_ID, IN_VARIABLE_ID, NU_VARIABLE_ID};
+pub use engine::{ENV_VARIABLE_ID, IN_VARIABLE_ID, NOTHING_VARIABLE_ID, NU_VARIABLE_ID};
 pub use example::*;
 pub use exportable::*;
 pub use id::*;
diff --git a/src/tests/test_cell_path.rs b/src/tests/test_cell_path.rs
index 1129c77009..56b6751638 100644
--- a/src/tests/test_cell_path.rs
+++ b/src/tests/test_cell_path.rs
@@ -1,14 +1,14 @@
 use crate::tests::{fail_test, run_test, TestResult};
 
-// Tests for $nothing / null / Value::Nothing
+// Tests for null / null / Value::Nothing
 #[test]
 fn nothing_fails_string() -> TestResult {
-    fail_test("$nothing.foo", "doesn't support cell paths")
+    fail_test("let nil = null; $nil.foo", "doesn't support cell paths")
 }
 
 #[test]
 fn nothing_fails_int() -> TestResult {
-    fail_test("$nothing.3", "doesn't support cell paths")
+    fail_test("let nil = null; $nil.3", "doesn't support cell paths")
 }
 
 // Tests for records
diff --git a/src/tests/test_table_operations.rs b/src/tests/test_table_operations.rs
index b854c13655..c14ca50914 100644
--- a/src/tests/test_table_operations.rs
+++ b/src/tests/test_table_operations.rs
@@ -181,9 +181,9 @@ fn missing_column_errors() -> TestResult {
 
 #[test]
 fn missing_optional_column_fills_in_nothing() -> TestResult {
-    // The empty value will be replaced with $nothing because of the ?
+    // The empty value will be replaced with null because of the ?
     run_test(
-        r#"[ { name: ABC, size: 20 }, { name: HIJ } ].size?.1 == $nothing"#,
+        r#"[ { name: ABC, size: 20 }, { name: HIJ } ].size?.1 == null"#,
         "true",
     )
 }
@@ -199,9 +199,9 @@ fn missing_required_row_fails() -> TestResult {
 
 #[test]
 fn missing_optional_row_fills_in_nothing() -> TestResult {
-    // ?.3 will return $nothing if there is no 3rd row
+    // ?.3 will return null if there is no 3rd row
     run_test(
-        r#"[ { name: ABC, size: 20 }, { name: HIJ } ].3? == $nothing"#,
+        r#"[ { name: ABC, size: 20 }, { name: HIJ } ].3? == null"#,
         "true",
     )
 }
diff --git a/tests/const_/mod.rs b/tests/const_/mod.rs
index 07383845ee..feb13d6913 100644
--- a/tests/const_/mod.rs
+++ b/tests/const_/mod.rs
@@ -101,7 +101,7 @@ fn const_string() {
 
 #[test]
 fn const_nothing() {
-    let inp = &["const x = $nothing", "$x | describe"];
+    let inp = &["const x = null", "$x | describe"];
 
     let actual = nu!(&inp.join("; "));
 
diff --git a/toolkit.nu b/toolkit.nu
index fe84dd5578..f4d2f92540 100644
--- a/toolkit.nu
+++ b/toolkit.nu
@@ -114,15 +114,15 @@ def report [
     | wrap stage
     | merge (
         if $no_fail               { [true     true     true     true] }
-        else if $fail_fmt         { [false    $nothing $nothing $nothing] }
-        else if $fail_clippy      { [true     false    $nothing $nothing] }
-        else if $fail_test        { [true     true     false    $nothing] }
+        else if $fail_fmt         { [false    null null null] }
+        else if $fail_clippy      { [true     false    null null] }
+        else if $fail_test        { [true     true     false    null] }
         else if $fail_test_stdlib { [true     true     true     false] }
-        else                      { [$nothing $nothing $nothing $nothing] }
+        else                      { [null null null null] }
         | wrap success
     )
     | upsert emoji {|it|
-        if ($it.success == $nothing) {
+        if ($it.success == null) {
             ":black_circle:"
         } else if $it.success {
             ":green_circle:"