diff --git a/radix-clis/src/scrypto/cmd_build.rs b/radix-clis/src/scrypto/cmd_build.rs
index 085dc83643..e69241b169 100644
--- a/radix-clis/src/scrypto/cmd_build.rs
+++ b/radix-clis/src/scrypto/cmd_build.rs
@@ -124,7 +124,14 @@ impl Build {
         if let Some(env) = &self.env {
             let env_variables_decoded: Vec<Vec<&str>> = env
                 .iter()
-                .map(|e| e.split('=').collect::<Vec<&str>>())
+                .map(|e|
+                    // Split string on the first '=' occurence.
+                    // This is to cover cases like this:
+                    //   ENV_NAME=foo=bar
+                    match e.split_once('=') {
+                    Some((key, val)) => vec![key, val],
+                    None => vec![e.as_str()],
+                })
                 .collect();
             for v in env_variables_decoded {
                 if v.len() == 1 {
diff --git a/radix-clis/tests/scrypto.sh b/radix-clis/tests/scrypto.sh
index f6a880ef6e..45e8f3d203 100755
--- a/radix-clis/tests/scrypto.sh
+++ b/radix-clis/tests/scrypto.sh
@@ -20,7 +20,7 @@ $scrypto new-package hello-world --path $test_pkg --local
 #
 # To test that the generated Cargo.lock is good, we run a build with the --locked command below.
 # This checks that the templated cargo lock is complete.
-# 
+#
 # If this line fails, run ./update-cargo-locks-minimally.sh from the repo root to
 # regenerate the Cargo.lock_template which is used.
 $scrypto build --path $test_pkg --locked
@@ -30,6 +30,9 @@ $scrypto test --path $test_pkg --locked
 $scrypto test --path $test_pkg --locked -- test_hello --nocapture
 $scrypto test --path $test_pkg --locked -- --nocapture
 
+
+$scrypto build --path ../examples/everything --env ENV_NAME=foo=bar
+
 # Logging
 $scrypto build --path ../examples/everything --log-level ERROR --locked
 size1=$(ls -la ../examples/everything/target/wasm32-unknown-unknown/release/everything.wasm | cut -d ' ' -f 5)
@@ -51,4 +54,4 @@ else
 fi
 
 # Clean up
-rm -fr $test_pkg
\ No newline at end of file
+rm -fr $test_pkg