diff --git a/crates/nu-command/src/env/config/config_env.rs b/crates/nu-command/src/env/config/config_env.rs
index 970562314a..9e91e77f48 100644
--- a/crates/nu-command/src/env/config/config_env.rs
+++ b/crates/nu-command/src/env/config/config_env.rs
@@ -70,6 +70,7 @@ impl Command for ConfigEnv {
         let command = ExternalCommand {
             name,
             args,
+            arg_keep_raw: vec![false],
             redirect_stdout: false,
             redirect_stderr: false,
             env_vars: env_vars_str,
diff --git a/crates/nu-command/src/env/config/config_nu.rs b/crates/nu-command/src/env/config/config_nu.rs
index c15a145223..6eb9ff63d1 100644
--- a/crates/nu-command/src/env/config/config_nu.rs
+++ b/crates/nu-command/src/env/config/config_nu.rs
@@ -70,6 +70,7 @@ impl Command for ConfigNu {
         let command = ExternalCommand {
             name,
             args,
+            arg_keep_raw: vec![false],
             redirect_stdout: false,
             redirect_stderr: false,
             env_vars: env_vars_str,
diff --git a/crates/nu-command/src/system/exec.rs b/crates/nu-command/src/system/exec.rs
index 9a481e0ea0..43e1be17e4 100644
--- a/crates/nu-command/src/system/exec.rs
+++ b/crates/nu-command/src/system/exec.rs
@@ -65,15 +65,27 @@ fn exec(
 ) -> Result<nu_protocol::PipelineData, nu_protocol::ShellError> {
     use std::os::unix::process::CommandExt;
 
-    use nu_engine::{current_dir, env_to_strings, CallExt};
-    use nu_protocol::Spanned;
-
     use super::run_external::ExternalCommand;
+    use nu_engine::{current_dir, env_to_strings, CallExt};
+    use nu_protocol::ast::Expr;
+    use nu_protocol::Spanned;
 
     let name: Spanned<String> = call.req(engine_state, stack, 0)?;
     let name_span = name.span;
 
     let args: Vec<Spanned<String>> = call.rest(engine_state, stack, 1)?;
+    let args_expr: Vec<nu_protocol::ast::Expression> =
+        call.positional_iter().skip(1).cloned().collect();
+    let mut arg_keep_raw = vec![];
+    for one_arg_expr in args_expr {
+        match one_arg_expr.expr {
+            // refer to `parse_dollar_expr` function
+            // the expression type of $variable_name, $"($variable_name)"
+            // will be Expr::StringInterpolation, Expr::FullCellPath
+            Expr::StringInterpolation(_) | Expr::FullCellPath(_) => arg_keep_raw.push(true),
+            _ => arg_keep_raw.push(false),
+        }
+    }
 
     let cwd = current_dir(engine_state, stack)?;
     let env_vars = env_to_strings(engine_state, stack)?;
@@ -82,6 +94,7 @@ fn exec(
     let external_command = ExternalCommand {
         name,
         args,
+        arg_keep_raw,
         env_vars,
         redirect_stdout: true,
         redirect_stderr: false,
diff --git a/crates/nu-command/src/system/run_external.rs b/crates/nu-command/src/system/run_external.rs
index 720cfb606d..f29d0b3a52 100644
--- a/crates/nu-command/src/system/run_external.rs
+++ b/crates/nu-command/src/system/run_external.rs
@@ -2,6 +2,7 @@ use fancy_regex::Regex;
 use itertools::Itertools;
 use nu_engine::env_to_strings;
 use nu_engine::CallExt;
+use nu_protocol::ast::{Expr, Expression};
 use nu_protocol::did_you_mean;
 use nu_protocol::engine::{EngineState, Stack};
 use nu_protocol::{ast::Call, engine::Command, ShellError, Signature, SyntaxShape, Value};
@@ -70,23 +71,40 @@ impl Command for External {
         }
 
         let mut spanned_args = vec![];
-        for one_arg in args {
+        let args_expr: Vec<Expression> = call.positional_iter().skip(1).cloned().collect();
+        let mut arg_keep_raw = vec![];
+        for (one_arg, one_arg_expr) in args.into_iter().zip(args_expr) {
             match one_arg {
                 Value::List { vals, .. } => {
                     // turn all the strings in the array into params.
                     // Example: one_arg may be something like ["ls" "-a"]
                     // convert it to "ls" "-a"
                     for v in vals {
-                        spanned_args.push(value_as_spanned(v)?)
+                        spanned_args.push(value_as_spanned(v)?);
+                        // for arguments in list, it's always treated as a whole arguments
+                        arg_keep_raw.push(true);
                     }
                 }
-                val => spanned_args.push(value_as_spanned(val)?),
+                val => {
+                    spanned_args.push(value_as_spanned(val)?);
+                    match one_arg_expr.expr {
+                        // refer to `parse_dollar_expr` function
+                        // the expression type of $variable_name, $"($variable_name)"
+                        // will be Expr::StringInterpolation, Expr::FullCellPath
+                        Expr::StringInterpolation(_) | Expr::FullCellPath(_) => {
+                            arg_keep_raw.push(true)
+                        }
+                        _ => arg_keep_raw.push(false),
+                    }
+                    {}
+                }
             }
         }
 
         let command = ExternalCommand {
             name,
             args: spanned_args,
+            arg_keep_raw,
             redirect_stdout,
             redirect_stderr,
             env_vars: env_vars_str,
@@ -107,6 +125,7 @@ impl Command for External {
 pub struct ExternalCommand {
     pub name: Spanned<String>,
     pub args: Vec<Spanned<String>>,
+    pub arg_keep_raw: Vec<bool>,
     pub redirect_stdout: bool,
     pub redirect_stderr: bool,
     pub env_vars: HashMap<String, String>,
@@ -508,12 +527,17 @@ impl ExternalCommand {
 
         let mut process = std::process::Command::new(&head);
 
-        for arg in self.args.iter() {
-            // if arg is quoted, like "aa", 'aa', `aa`.
+        for (arg, arg_keep_raw) in self.args.iter().zip(self.arg_keep_raw.iter()) {
+            // if arg is quoted, like "aa", 'aa', `aa`, or:
+            // if arg is a variable or String interpolation, like: $variable_name, $"($variable_name)"
             // `as_a_whole` will be true, so nu won't remove the inner quotes.
-            let (trimmed_args, run_glob_expansion, as_a_whole) = trim_enclosing_quotes(&arg.item);
+            let (trimmed_args, run_glob_expansion, mut keep_raw) = trim_enclosing_quotes(&arg.item);
+            if *arg_keep_raw {
+                keep_raw = true;
+            }
+
             let mut arg = Spanned {
-                item: if as_a_whole {
+                item: if keep_raw {
                     trimmed_args
                 } else {
                     remove_quotes(trimmed_args)
@@ -643,7 +667,7 @@ fn shell_arg_escape(arg: &str) -> String {
 /// This function returns a tuple with 3 items:
 /// 1st item: trimmed string.
 /// 2nd item: a boolean value indicate if it's ok to run glob expansion.
-/// 3rd item: a boolean value indicate if we need to make input as a whole.
+/// 3rd item: a boolean value indicate if we need to keep raw string.
 fn trim_enclosing_quotes(input: &str) -> (String, bool, bool) {
     let mut chars = input.chars();
 
diff --git a/crates/nu-command/tests/commands/run_external.rs b/crates/nu-command/tests/commands/run_external.rs
index a554b1d4b0..f4fea44ff6 100644
--- a/crates/nu-command/tests/commands/run_external.rs
+++ b/crates/nu-command/tests/commands/run_external.rs
@@ -168,6 +168,24 @@ fn external_arg_with_long_flag_value_quoted() {
     })
 }
 
+#[test]
+fn external_arg_with_variable_name() {
+    Playground::setup("external failed command with semicolon", |dirs, _| {
+        let actual = nu!(
+            cwd: dirs.test(), pipeline(
+            r#"
+                let dump_command = "PGPASSWORD='db_secret' pg_dump -Fc -h 'db.host' -p '$db.port' -U postgres -d 'db_name' > '/tmp/dump_name'";
+                nu --testbin nonu $dump_command
+            "#
+        ));
+
+        assert_eq!(
+            actual.out,
+            r#"PGPASSWORD='db_secret' pg_dump -Fc -h 'db.host' -p '$db.port' -U postgres -d 'db_name' > '/tmp/dump_name'"#
+        );
+    })
+}
+
 #[cfg(windows)]
 #[test]
 fn explicit_glob_windows() {