diff --git a/crates/nu-cli/src/cli.rs b/crates/nu-cli/src/cli.rs
index 893293d8d1..796f95c54d 100644
--- a/crates/nu-cli/src/cli.rs
+++ b/crates/nu-cli/src/cli.rs
@@ -67,6 +67,7 @@ pub fn create_default_context(interactive: bool) -> Result<EvaluationContext, Bo
             // Fundamentals
             whole_stream_command(NuPlugin),
             whole_stream_command(Set),
+            whole_stream_command(SetEnv),
             whole_stream_command(Def),
             // System/file operations
             whole_stream_command(Exec),
diff --git a/crates/nu-cli/src/commands.rs b/crates/nu-cli/src/commands.rs
index c7a1a68fc5..23d47f5572 100644
--- a/crates/nu-cli/src/commands.rs
+++ b/crates/nu-cli/src/commands.rs
@@ -101,6 +101,7 @@ pub(crate) mod select;
 pub(crate) mod seq;
 pub(crate) mod seq_dates;
 pub(crate) mod set;
+pub(crate) mod set_env;
 pub(crate) mod shells;
 pub(crate) mod shuffle;
 pub(crate) mod size;
@@ -247,6 +248,7 @@ pub(crate) use select::Select;
 pub(crate) use seq::Seq;
 pub(crate) use seq_dates::SeqDates;
 pub(crate) use set::Set;
+pub(crate) use set_env::SetEnv;
 pub(crate) use shells::Shells;
 pub(crate) use shuffle::Shuffle;
 pub(crate) use size::Size;
diff --git a/crates/nu-cli/src/commands/classified/internal.rs b/crates/nu-cli/src/commands/classified/internal.rs
index ee02bf2ead..fbf1c64263 100644
--- a/crates/nu-cli/src/commands/classified/internal.rs
+++ b/crates/nu-cli/src/commands/classified/internal.rs
@@ -184,6 +184,10 @@ pub(crate) async fn run_internal_command(
                                 context.scope.add_var(name, value);
                                 InputStream::from_stream(futures::stream::iter(vec![]))
                             }
+                            CommandAction::AddEnvVariable(name, value) => {
+                                context.scope.add_env_var(name, value);
+                                InputStream::from_stream(futures::stream::iter(vec![]))
+                            }
                             CommandAction::AddPlugins(path) => {
                                 match crate::plugin::scan(vec![std::path::PathBuf::from(path)]) {
                                     Ok(plugins) => {
diff --git a/crates/nu-cli/src/commands/set.rs b/crates/nu-cli/src/commands/set.rs
index de85c489d1..d3f78225b4 100644
--- a/crates/nu-cli/src/commands/set.rs
+++ b/crates/nu-cli/src/commands/set.rs
@@ -85,10 +85,12 @@ pub async fn set(args: CommandArgs) -> Result<OutputStream, ShellError> {
     ctx.scope.enter_scope();
     ctx.scope.add_vars(&captured.entries);
 
-    let value = evaluate_baseline_expr(&expr, &ctx).await?;
+    let value = evaluate_baseline_expr(&expr, &ctx).await;
 
     ctx.scope.exit_scope();
 
+    let value = value?;
+
     let name = if name.item.starts_with('$') {
         name.item.clone()
     } else {
diff --git a/crates/nu-cli/src/commands/set_env.rs b/crates/nu-cli/src/commands/set_env.rs
new file mode 100644
index 0000000000..1c5c8764bf
--- /dev/null
+++ b/crates/nu-cli/src/commands/set_env.rs
@@ -0,0 +1,104 @@
+use crate::prelude::*;
+use crate::{commands::WholeStreamCommand, evaluate::evaluate_baseline_expr};
+
+use nu_errors::ShellError;
+use nu_protocol::{
+    hir::CapturedBlock, hir::ClassifiedCommand, CommandAction, ReturnSuccess, Signature,
+    SyntaxShape,
+};
+use nu_source::Tagged;
+
+pub struct SetEnv;
+
+#[derive(Deserialize)]
+pub struct SetEnvArgs {
+    pub name: Tagged<String>,
+    pub equals: Tagged<String>,
+    pub rhs: CapturedBlock,
+}
+
+#[async_trait]
+impl WholeStreamCommand for SetEnv {
+    fn name(&self) -> &str {
+        "set-env"
+    }
+
+    fn signature(&self) -> Signature {
+        Signature::build("set-env")
+            .required(
+                "name",
+                SyntaxShape::String,
+                "the name of the environment variable",
+            )
+            .required("equals", SyntaxShape::String, "the equals sign")
+            .required(
+                "expr",
+                SyntaxShape::Initializer,
+                "the value to set the environment variable to",
+            )
+    }
+
+    fn usage(&self) -> &str {
+        "Create an environment variable and set it to a value."
+    }
+
+    async fn run(&self, args: CommandArgs) -> Result<OutputStream, ShellError> {
+        set_env(args).await
+    }
+
+    fn examples(&self) -> Vec<Example> {
+        vec![]
+    }
+}
+
+pub async fn set_env(args: CommandArgs) -> Result<OutputStream, ShellError> {
+    let tag = args.call_info.name_tag.clone();
+    let ctx = EvaluationContext::from_args(&args);
+
+    let (SetEnvArgs { name, rhs, .. }, _) = args.process().await?;
+
+    let (expr, captured) = {
+        if rhs.block.block.len() != 1 {
+            return Err(ShellError::labeled_error(
+                "Expected a value",
+                "expected a value",
+                tag,
+            ));
+        }
+        match rhs.block.block[0].pipelines.get(0) {
+            Some(item) => match item.list.get(0) {
+                Some(ClassifiedCommand::Expr(expr)) => (expr.clone(), rhs.captured.clone()),
+                _ => {
+                    return Err(ShellError::labeled_error(
+                        "Expected a value",
+                        "expected a value",
+                        tag,
+                    ));
+                }
+            },
+            None => {
+                return Err(ShellError::labeled_error(
+                    "Expected a value",
+                    "expected a value",
+                    tag,
+                ));
+            }
+        }
+    };
+
+    ctx.scope.enter_scope();
+    ctx.scope.add_vars(&captured.entries);
+
+    let value = evaluate_baseline_expr(&expr, &ctx).await;
+
+    ctx.scope.exit_scope();
+
+    let value = value?;
+    let value = value.as_string()?;
+
+    let name = name.item.clone();
+
+    Ok(OutputStream::one(ReturnSuccess::action(
+        CommandAction::AddEnvVariable(name, value),
+    )))
+}
diff --git a/crates/nu-protocol/src/return_value.rs b/crates/nu-protocol/src/return_value.rs
index fc52c24e7f..63eeb2ab2d 100644
--- a/crates/nu-protocol/src/return_value.rs
+++ b/crates/nu-protocol/src/return_value.rs
@@ -22,6 +22,8 @@ pub enum CommandAction {
     EnterHelpShell(Value),
     /// Add a variable into scope
     AddVariable(String, Value),
+    /// Add an environment variable into scope
+    AddEnvVariable(String, String),
     /// Add plugins from path given
     AddPlugins(String),
     /// Go to the previous shell in the shell ring buffer
@@ -46,6 +48,7 @@ impl PrettyDebug for CommandAction {
             CommandAction::EnterValueShell(v) => b::typed("enter value shell", v.pretty()),
             CommandAction::EnterHelpShell(v) => b::typed("enter help shell", v.pretty()),
             CommandAction::AddVariable(..) => b::description("add variable"),
+            CommandAction::AddEnvVariable(..) => b::description("add environment variable"),
             CommandAction::AddPlugins(..) => b::description("add plugins"),
             CommandAction::PreviousShell => b::description("previous shell"),
             CommandAction::NextShell => b::description("next shell"),
diff --git a/tests/shell/pipeline/commands/internal.rs b/tests/shell/pipeline/commands/internal.rs
index 697120f61a..57e1536fb0 100644
--- a/tests/shell/pipeline/commands/internal.rs
+++ b/tests/shell/pipeline/commands/internal.rs
@@ -345,7 +345,7 @@ fn run_custom_command() {
 }
 
 #[test]
-fn set_variables() {
+fn set_variable() {
     let actual = nu!(
         cwd: ".",
         r#"
@@ -358,6 +358,19 @@ fn set_variables() {
     assert_eq!(actual.out, "17");
 }
 
+#[test]
+fn set_env_variable() {
+    let actual = nu!(
+        cwd: ".",
+        r#"
+            set-env TESTENVVAR = "hello world"
+            echo $nu.env.TESTENVVAR
+        "#
+    );
+
+    assert_eq!(actual.out, "hello world");
+}
+
 #[cfg(feature = "which")]
 #[test]
 fn argument_invocation_reports_errors() {