diff --git a/crates/nu-cli/tests/commands/with_env.rs b/crates/nu-cli/tests/commands/with_env.rs
index cbd12d0139..15b4f70d40 100644
--- a/crates/nu-cli/tests/commands/with_env.rs
+++ b/crates/nu-cli/tests/commands/with_env.rs
@@ -29,3 +29,38 @@ fn shorthand_doesnt_reorder_arguments() {
 
     assert_eq!(actual.out, "firstsecond");
 }
+
+#[test]
+fn with_env_shorthand_trims_quotes() {
+    let actual = nu!(
+        cwd: "tests/fixtures/formats",
+        "FOO='BARRRR' echo $nu.env | get FOO"
+    );
+
+    assert_eq!(actual.out, "BARRRR");
+}
+
+#[test]
+fn with_env_and_shorthand_same_result() {
+    let actual_shorthand = nu!(
+        cwd: "tests/fixtures/formats",
+        "FOO='BARRRR' echo $nu.env | get FOO"
+    );
+
+    let actual_normal = nu!(
+        cwd: "tests/fixtures/formats",
+        "with-env [FOO BARRRR] {echo $nu.env} | get FOO"
+    );
+
+    assert_eq!(actual_shorthand.out, actual_normal.out);
+}
+
+#[test]
+fn with_env_shorthand_nested_quotes() {
+    let actual = nu!(
+        cwd: "tests/fixtures/formats",
+        "FOO='-arg \"hello world\"' echo $nu.env | get FOO"
+    );
+
+    assert_eq!(actual.out, "-arg \"hello world\"");
+}
diff --git a/crates/nu-parser/src/parse.rs b/crates/nu-parser/src/parse.rs
index 919dcf58f7..3b3ddcd79f 100644
--- a/crates/nu-parser/src/parse.rs
+++ b/crates/nu-parser/src/parse.rs
@@ -1362,7 +1362,9 @@ fn expand_shorthand_forms(
                 )
             } else {
                 let original_span = lite_pipeline.commands[0].name.span;
-                let (variable_name, value) = (assignment[0], assignment[1]);
+                let env_value = trim_quotes(assignment[1]);
+
+                let (variable_name, value) = (assignment[0], env_value);
                 let mut lite_pipeline = lite_pipeline.clone();
 
                 if !lite_pipeline.commands[0].args.is_empty() {
@@ -1377,7 +1379,7 @@ fn expand_shorthand_forms(
                         lite_pipeline,
                         Some((
                             variable_name.to_string().spanned(original_span),
-                            value.to_string().spanned(original_span),
+                            value.spanned(original_span),
                         )),
                         None,
                     )