diff --git a/.github/workflows/end-to-end-tests.main.kts b/.github/workflows/end-to-end-tests.main.kts
index 9161be00db..b611b5ca2b 100755
--- a/.github/workflows/end-to-end-tests.main.kts
+++ b/.github/workflows/end-to-end-tests.main.kts
@@ -201,16 +201,13 @@ workflow(
                 env = mapOf(
                     FIRST_NAME to "Patrick",
                 ),
-                // The assertion below presents the current, undesired behavior related to
-                // env vars, used either from shell or GitHub Actions expressions.
-                // TODO: fix in https://github.com/typesafegithub/github-workflows-kt/issues/1956
                 command = """
                     cat << EOF > actual
-                    $GREETING-$FIRST_NAME
+                    ${expr(GREETING)}-${expr(FIRST_NAME)}
                     EOF
 
                     cat << EOF > expected
-                    -
+                    World-Patrick
                     EOF
 
                     diff actual expected
diff --git a/.github/workflows/end-to-end-tests.yaml b/.github/workflows/end-to-end-tests.yaml
index 82f84105ee..689230a2a2 100644
--- a/.github/workflows/end-to-end-tests.yaml
+++ b/.github/workflows/end-to-end-tests.yaml
@@ -67,7 +67,7 @@ jobs:
     needs:
     - 'check_yaml_consistency'
     env:
-      $GREETING: 'World'
+      GREETING: 'World'
     outputs:
       scriptKey: '${{ steps.step-21.outputs.key }}'
       scriptKey2: '${{ steps.step-21.outputs.key2 }}'
@@ -121,23 +121,23 @@ jobs:
     - id: 'step-10'
       name: 'Custom environment variable'
       env:
-        $FIRST_NAME: 'Patrick'
+        FIRST_NAME: 'Patrick'
       run: |-
         cat << EOF > actual
-        $GREETING-$FIRST_NAME
+        ${{ env.GREETING }}-${{ env.FIRST_NAME }}
         EOF
 
         cat << EOF > expected
-        -
+        World-Patrick
         EOF
 
         diff actual expected
     - id: 'step-11'
       name: 'Encrypted secret'
       env:
-        $SECRET: '${{ secrets.SUPER_SECRET }}'
-        $TOKEN: '${{ secrets.GITHUB_TOKEN }}'
-      run: 'echo secret=$SECRET token=$TOKEN'
+        SECRET: '${{ secrets.SUPER_SECRET }}'
+        TOKEN: '${{ secrets.GITHUB_TOKEN }}'
+      run: 'echo secret=env.SECRET token=env.TOKEN'
     - id: 'step-12'
       name: 'RunnerContext create temp directory'
       run: 'mkdir ${{ runner.temp }}/build_logs'
@@ -146,7 +146,7 @@ jobs:
       run: 'echo ${{ github.sha }} ev ${{ github.event.release.url }}'
     - id: 'step-14'
       name: 'Default environment variable'
-      run: 'action=$GITHUB_ACTION repo=$GITHUB_REPOSITORY'
+      run: 'action=env.GITHUB_ACTION repo=env.GITHUB_REPOSITORY'
       if: '${{ always() }}'
     - id: 'step-15'
       name: 'Set up JDK'
diff --git a/github-workflows-kt/src/main/kotlin/io/github/typesafegithub/workflows/dsl/expressions/contexts/EnvContext.kt b/github-workflows-kt/src/main/kotlin/io/github/typesafegithub/workflows/dsl/expressions/contexts/EnvContext.kt
index cea23d5611..07e5c83d8b 100644
--- a/github-workflows-kt/src/main/kotlin/io/github/typesafegithub/workflows/dsl/expressions/contexts/EnvContext.kt
+++ b/github-workflows-kt/src/main/kotlin/io/github/typesafegithub/workflows/dsl/expressions/contexts/EnvContext.kt
@@ -9,7 +9,6 @@ import io.github.typesafegithub.workflows.dsl.expressions.MapFromLambda
  */
 public object EnvContext : ExpressionContext(
     _path = "env",
-    propertyToExprPath = MapFromLambda { key: String -> "\$$key" },
 ) {
     /** Always set to true. **/
     public val CI: String by propertyToExprPath
diff --git a/github-workflows-kt/src/main/kotlin/io/github/typesafegithub/workflows/yaml/JobsToYaml.kt b/github-workflows-kt/src/main/kotlin/io/github/typesafegithub/workflows/yaml/JobsToYaml.kt
index e6d5a4cb3f..a66ee63f1d 100644
--- a/github-workflows-kt/src/main/kotlin/io/github/typesafegithub/workflows/yaml/JobsToYaml.kt
+++ b/github-workflows-kt/src/main/kotlin/io/github/typesafegithub/workflows/yaml/JobsToYaml.kt
@@ -27,7 +27,7 @@ private fun Job<*>.toYaml(): Map<String, Any?> =
                 )
             },
         "needs" to needs.ifEmpty { null }?.map { it.id },
-        "env" to env.ifEmpty { null },
+        "env" to env.mapKeys { it.key.removePrefix("env.") }.ifEmpty { null },
         "if" to condition,
         "strategy" to
             strategyMatrix?.let {
diff --git a/github-workflows-kt/src/main/kotlin/io/github/typesafegithub/workflows/yaml/StepsToYaml.kt b/github-workflows-kt/src/main/kotlin/io/github/typesafegithub/workflows/yaml/StepsToYaml.kt
index 1ac3bb73a1..abfb063c66 100644
--- a/github-workflows-kt/src/main/kotlin/io/github/typesafegithub/workflows/yaml/StepsToYaml.kt
+++ b/github-workflows-kt/src/main/kotlin/io/github/typesafegithub/workflows/yaml/StepsToYaml.kt
@@ -38,7 +38,7 @@ private fun ActionStep<*>.toYaml(): Map<String, Any?> =
                 }
             },
         "with" to action.toYamlArguments().ifEmpty { null },
-        "env" to env.ifEmpty { null },
+        "env" to env.mapKeys { it.key.removePrefix("env.") }.ifEmpty { null },
         "if" to condition,
     ) + _customArguments
 
@@ -46,7 +46,7 @@ private fun CommandStep.toYaml(): Map<String, Any?> =
     mapOfNotNullValues(
         "id" to id,
         "name" to name,
-        "env" to env.ifEmpty { null },
+        "env" to env.mapKeys { it.key.removePrefix("env.") }.ifEmpty { null },
         "continue-on-error" to continueOnError,
         "timeout-minutes" to timeoutMinutes,
         "shell" to shell?.toYaml(),
@@ -59,7 +59,7 @@ private fun KotlinLogicStep.toYaml(): Map<String, Any?> =
     mapOfNotNullValues(
         "id" to id,
         "name" to name,
-        "env" to env.ifEmpty { null },
+        "env" to env.mapKeys { it.key.removePrefix("env.") }.ifEmpty { null },
         "continue-on-error" to continueOnError,
         "timeout-minutes" to timeoutMinutes,
         "shell" to shell?.toYaml(),
diff --git a/github-workflows-kt/src/test/kotlin/io/github/typesafegithub/workflows/dsl/expressions/ContextsTest.kt b/github-workflows-kt/src/test/kotlin/io/github/typesafegithub/workflows/dsl/expressions/ContextsTest.kt
index 2adc518949..ca44cd6fae 100644
--- a/github-workflows-kt/src/test/kotlin/io/github/typesafegithub/workflows/dsl/expressions/ContextsTest.kt
+++ b/github-workflows-kt/src/test/kotlin/io/github/typesafegithub/workflows/dsl/expressions/ContextsTest.kt
@@ -11,17 +11,17 @@ class ContextsTest :
         test("Environment variables") {
             assertSoftly {
                 val DAY_OF_WEEK by Contexts.env
-                "$DAY_OF_WEEK == 'Monday'" shouldBe "\$DAY_OF_WEEK == 'Monday'"
+                "$DAY_OF_WEEK == 'Monday'" shouldBe "env.DAY_OF_WEEK == 'Monday'"
 
                 "${Contexts.env.CI} == true && ${Contexts.env.GITHUB_ACTIONS} == true" shouldBe
-                    "\$CI == true && \$GITHUB_ACTIONS == true"
+                    "env.CI == true && env.GITHUB_ACTIONS == true"
             }
         }
 
         test("Environment variables from expressions") {
             val GREETING by Contexts.env
-            expr { GREETING } shouldBe "\${{ GREETING }}"
-            expr { env.GITHUB_ACTIONS } shouldBe "\${{ GITHUB_ACTIONS }}"
+            expr { GREETING } shouldBe "\${{ env.GREETING }}"
+            expr { env.GITHUB_ACTIONS } shouldBe "\${{ env.GITHUB_ACTIONS }}"
         }
 
         test("Secrets") {